Cayman Islands* |
6770 |
98-1572401 | ||
(State or other jurisdiction of incorporation or organization) |
(Primary Standard Industrial Classification Code Number) |
(I.R.S. Employer Identification Number) |
David S. Huntington Jeffrey D. Marell Austin S. Pollet Paul, Weiss, Rifkind, Wharton & Garrison LLP 1285 Avenue of the Americas New York, NY 10019 Telephone: (212) 373-3000 |
Corey C. Dufresne General Counsel Warehouse Technologies LLC 200 Research Drive Wilmington, MA 01887 Telephone: (978) 284-2800 |
Robert W. Downes George J. Sampas Matthew B. Goodman Sullivan & Cromwell LLP 125 Broad Street New York, NY 10004 Telephone: (212) 558-4000 |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
* |
Immediately prior to the consummation of the Business Combination described in the proxy statement/prospectus, SVF Investment Corp. 3 intends to effect a deregistration under Part XII of the Cayman Islands Companies Act (2021 Revision) and a domestication under Section 388 of the Delaware General Corporation Law, pursuant to which SVF Investment Corp. 3’s jurisdiction of incorporation will be changed from the Cayman Islands to the State of Delaware (the “Domestication”). All securities being registered will be issued by the continuing entity following the Domestication, which will be renamed “Symbotic Inc.” in connection with the Business Combination, as further described in the proxy statement/prospectus. As used in the proxy statement/prospectus, the term “registrant” refers to SVF Investment Corp. 3 (a Cayman Islands exempted company), prior to the Domestication, and to the Post-Combination Company (a Delaware corporation), following the Domestication. As used herein, “Post-Combination Company” refers to SVF Investment Corp. 3 as a Delaware corporation by way of continuation following the Domestication and the Business Combination, which in connection with the Domestication and simultaneously with the Business Combination, will change its corporate name to “Symbotic Inc.” |
a) |
the right to receive a number of New Symbotic Holdings Common Units (deemed to have a value of $10.00 per unit) equal to the quotient of: (i) the Equity Value, divided by (ii) $10.00, divided by (iii) the number of Interim Symbotic Common Units issued and outstanding on a fully diluted basis immediately prior to the Effective Time; |
b) |
with respect to Interim Symbotic Common Units held by Richard B. Cohen (the “Symbotic Founder”), certain family members of the Symbotic Founder and certain affiliated entities and trusts of the |
Symbotic Founder and his family members, the right to receive a number of the Post-Combination Company’s Class V-3 common stock, par value $0.0001 per share, equal to the number of New Symbotic Holdings Common Units received by such party pursuant to the foregoing clause (a); |
c) |
with respect to Interim Symbotic Common Units held by holders other than those set forth in the foregoing clause (b), the right to receive a number of the Post-Combination Company’s Class V-1 common stock, par value $0.0001 per share, equal to the number of New Symbotic Holdings Common Units received by such party pursuant to the foregoing clause (a); and |
d) |
the contingent right to receive certain earnout interests. |
Sincerely, |
Ioannis Pipilis |
Chairman of the Board and Chief Executive Officer |
By Order of the Board of Directors |
Ioannis Pipilis |
Chairman of the Board and Chief Executive Officer |
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• |
insightQuote’s 2021 Warehousing Cost Survey Reveals Expected Increases as Pandemic Fuels Fulfillment Industry Growth, May 2021, WarehousingAndFulfillment.com; |
• |
Warehousing and Fulfillment 2017 Warehouse Costs and Pricing Survey, August 2017, WarehousingAndFulfillment.com; and |
• |
Annual Total Separations Rates by Industry and Region, March 2021, U.S. Bureau of Labor Statistics. |
• |
Total & Strategic Addressable Market: US, Canada and Europe, August 2021, SWD Advisory. |
• |
meet the closing conditions required under the Merger Agreement, including approval by shareholders of SVF 3 and unitholders of Warehouse on the expected terms and schedule; |
• |
meet the technical requirements of existing or future supply agreements with its customers, including with respect to existing backlog; |
• |
realize the benefits expected from the Business Combination; |
• |
expand its target customer base and maintain its existing customer base; |
• |
anticipate industry trends; |
• |
maintain and enhance its platform; |
• |
execute its growth strategy; |
• |
develop, design and sell systems that are differentiated from those of competitors; |
• |
execute its research and development strategy; |
• |
acquire, maintain, protect and enforce intellectual property; |
• |
attract, train and retain effective officers, key employees or directors; |
• |
comply with laws and regulations applicable to its business; |
• |
stay abreast of modified or new laws and regulations applying to its business; |
• |
successfully defend litigation; |
• |
meet NASDAQ listing standards following the consummation of the Business Combination; |
• |
issue equity securities in connection with the transaction; |
• |
successfully deploy the proceeds from the Business Combination; |
• |
meet future liquidity requirements and, if applicable, comply with restrictive covenants related to long-term indebtedness; |
• |
anticipate rapid technological changes; and |
• |
effectively respond to general economic and business conditions. |
• |
any delay in closing the Business Combination; |
• |
the effects of pending and future legislation; |
• |
risks related to disruption of management time from ongoing business operations due to the transaction; |
• |
business disruption following the Business Combination; |
• |
risks related to the impact of the COVID-19 pandemic on the financial condition and results of operations of SVF 3 and Symbotic; |
• |
the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement or the termination of any of the Subscription Agreements; |
• |
the amount of redemption requests made by shareholders of SVF 3; |
• |
the effect of the announcement or pendency of the transaction on Symbotic’s business relationships, performance, and business generally; |
• |
the amount of the costs, fees, expenses and other charges related to the Business Combination; |
• |
disruption to the business due to the Post-Combination Company’s dependency on Walmart Inc.; |
• |
increasing competition in the warehouse automation industry; |
• |
any delays in the design, production or launch of our systems and products; |
• |
the failure to meet customers’ requirements under existing or future contracts or customer’s expectations as to price or pricing structure; |
• |
any defects in new products or enhancements to existing products; |
• |
the fluctuation of operating results from period to period due to a number of factors, including the pace of customer adoption of our new products and services and any changes in our product mix that shift too far into lower gross margin products; |
• |
other consequences associated with mergers, acquisitions and divestitures and legislative and regulatory actions and reforms; and |
• |
risks related to SVF 3’s restatement of financials. |
Q: |
WHY AM I RECEIVING THIS DOCUMENT? |
A: |
SVF 3 shareholders are being asked to consider, and vote upon, certain proposals in connection with the Business Combination and the other matters to be considered at the Extraordinary General Meeting. |
Q: |
WHAT IS THE BUSINESS COMBINATION? |
A: |
On December 12, 2021, (a) SVF 3 and Merger Sub, a wholly owned subsidiary of SVF 3, entered into the Merger Agreement with Warehouse and Symbotic Holdings, a wholly owned subsidiary of Warehouse and (b) Warehouse and Symbotic Holdings entered into the Company Merger Agreement. If the Company Merger Agreement, the Merger Agreement, the transactions contemplated thereby and the related matters described herein are adopted by our shareholders and Warehouse’s unitholders, as applicable, (i) Warehouse will merge with and into Symbotic Holdings, with Symbotic Holdings surviving the merger (sometimes referred to as “Interim Symbotic”) and (ii) immediately thereafter, Merger Sub will merge with and into Interim Symbotic, with Interim Symbotic surviving the merger as a subsidiary of the Post-Combination Company. Prior to the consummation of the Merger (the “Closing”), SVF 3 will transfer by way of continuation from the Cayman Islands and domesticate as a Delaware corporation (the “Domestication”). Following the Domestication and simultaneously with the Closing, SVF 3 will change its corporate name to “Symbotic Inc.” |
Q: |
WHAT WILL WAREHOUSE UNITHOLDERS RECEIVE IN THE COMPANY REORGANIZATION AND THE BUSINESS COMBINATION? |
A: |
The aggregate consideration to be paid to unitholders of Warehouse in the Business Combination will be based on an Equity Value equal to the sum of (i) $4,500,000,000, plus plus |
a) |
the right to receive a number of common units of New Symbotic Holdings (the “New Symbotic Holdings Common Units”) (deemed to have a value of $10.00 per unit) equal to the quotient of (subject to rounding): (i) the Equity Value, divided by (ii) $10.00, divided by (iii) the number of Interim Symbotic Common Units issued and outstanding on a fully diluted basis immediately prior to the Effective Time; |
b) |
with respect to Interim Symbotic Common Units held by the Richard B. Cohen (the “Symbotic Founder”), certain family members of the Symbotic Founder and certain affiliated entities and trusts of the Symbotic Founder and his family members, the right to receive a number of the Post-Combination Company’s Class V-3 common stock, par value $0.0001 per share, equal to the number of New Symbotic Holdings Common Units received by such party pursuant to the foregoing clause (a); |
c) |
with respect to Interim Symbotic Common Units held by holders other than those set forth in the foregoing clause (b), the right to receive a number of the Post-Combination Company’s Class V-1 common stock, par value $0.0001 per share, equal to the number of New Symbotic Holdings Common Units received by such party pursuant to the foregoing clause (a); and |
d) |
the contingent right to receive certain Earnout Interests. |
Q: |
WHEN DO YOU EXPECT THE BUSINESS COMBINATION TO BE COMPLETED? |
A: |
It is currently anticipated that the Business Combination will be consummated promptly following the Extraordinary General Meeting, which is set for , 2022; however, such meeting could be adjourned, as described herein. Neither SVF 3 nor Warehouse can assure you of when or if the Business Combination will be completed and it is possible that factors outside of the control of both companies could result in the Business Combination being completed at a different time or not at all. SVF 3 must first obtain the approval of its shareholders for certain of the proposals set forth in this proxy statement/prospectus for their approval, Warehouse must first obtain the written consent of its unitholders for the Business Combination and each of SVF 3 and Warehouse must also satisfy or waive other closing conditions. See “ The Merger Agreement—Conditions to Closing. |
Q: |
WHAT HAPPENS IF THE BUSINESS COMBINATION IS NOT COMPLETED? |
A: |
If SVF 3 does not complete the Business Combination with Warehouse and Symbotic Holdings for whatever reason, SVF 3 would search for another target business with which to complete a business combination. If SVF 3 does not complete the Business Combination with Warehouse and Symbotic Holdings or a business combination with another target business within the Completion Window, SVF 3 must redeem 100% of the outstanding Public Shares, at a per-share price, payable in cash, equal to the amount then held in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to SVF 3 to pay taxes (less up to $100,000 of interest to pay dissolution expenses) divided by the number of outstanding Public Shares. The Initial Shareholders have no redemption rights in the event a business combination is not effected in the Completion Window, and, accordingly, their Founder Shares will be worthless. The Private Placement Shares also have no right to participate in any redemption distribution and will be worthless if no business combination is effected by SVF 3 in the Completion Window. |
Q: |
WHEN AND WHERE IS THE EXTRAORDINARY GENERAL MEETING? |
A: |
The Extraordinary General Meeting will be held at 9:00 a.m. eastern time, on , 2022, in virtual format. SVF 3 shareholders may attend, vote and examine the list of SVF 3 shareholders entitled to vote at the Extraordinary General Meeting by visiting https://www.cstproxy.com/svfc/2022 COVID-19 pandemic, the Extraordinary General Meeting will be held in virtual meeting format and it is recommended that you do not attend the Extraordinary General Meeting physically. |
Q: |
WHAT AM I BEING ASKED TO VOTE ON AND WHY IS THIS APPROVAL NECESSARY? |
A: |
The shareholders of SVF 3 are being asked to vote on the following: |
Q: |
WHY IS SVF 3 PROPOSING THE BUSINESS COMBINATION? |
A: |
SVF 3 was organized to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more businesses or entities. |
Q: |
DID THE SVF 3 BOARD OBTAIN A THIRD-PARTY VALUATION OR FAIRNESS OPINION IN DETERMINING WHETHER OR NOT TO PROCEED WITH THE BUSINESS COMBINATION? |
A: |
No. The SVF 3 Board did not obtain a third-party valuation or fairness opinion in connection with its determination to approve the Business Combination. The SVF 3 Board believes that based upon the financial skills and background of its directors, it was qualified to conclude that the Business Combination was fair from a financial perspective to its shareholders. The SVF 3 Board also determined, without seeking a valuation from a financial advisor, that Symbotic’s fair market value was equal to at least 80% of the net assets held in SVF 3’s Trust Account, excluding the deferred underwriting commissions and taxes payable on the interest earned on SVF 3’s Trust Account. Accordingly, investors will be relying on the judgment of the SVF 3 Board as described above in valuing Symbotic’s business and assuming the risk that the SVF 3 Board may not have properly valued such business. |
Q: |
WHAT IS AN “UP-C” STRUCTURE? |
A: |
Our organizational structure following the Business Combination, as described under the section entitled “ The Business Combination “Up-C” structure, which is often used by partnerships and limited liability companies undertaking an initial public offering to provide certain tax benefits and associated cash flow advantages to both the issuer corporation and the existing owners of the partnership or limited liability company in the initial public offering. The Up-C structure allows current Warehouse unitholders to retain their equity ownership in New Symbotic Holdings, an entity that is classified as a partnership for U.S. federal income tax purposes, in the form of New Symbotic Holdings |
Common Units. All other investors, including SVF 3 shareholders, will hold their equity ownership in Symbotic Inc., a Delaware corporation that is a domestic corporation for U.S. federal income tax purposes, in the form of shares of Class A common stock. |
• |
assuming No Redemptions, Symbotic Inc. is expected to own approximately 14% of the New Symbotic Holdings Common Units and the current Warehouse unitholders are expected to own approximately 86% of the New Symbotic Holdings Common Units; and |
• |
assuming redemption of 31,887,500 Public Shares (not including 112,500 Class A ordinary shares originally issued in the SVF 3 IPO and purchased by certain directors and officers of SVF 3, which are not subject to redemption in connection with the Business Combination) (“Maximum Redemptions”), Symbotic Inc. is expected to own approximately 9% of the New Symbotic Holdings Common Units and the current Warehouse unitholders are expected to own approximately 91% of the New Symbotic Holdings Common Units. Although the pro forma amount of cash under the Maximum Redemptions scenario is less than the Minimum Cash Condition, Warehouse and Symbotic Holdings have not elected to waive such condition. Unless Warehouse and Symbotic Holdings elect to waive this condition, the Maximum Redemptions scenario set out in this section cannot occur. A maximum of 31,226,702 Public Shares can be redeemed while still satisfying the Minimum Cash Condition. |
Q: |
WHAT IS THE TAX RECEIVABLE AGREEMENT AND WHO WILL RECEIVE THE BENEFIT OF TAX ATTRIBUTES COVERED BY THE TAX RECEIVABLE AGREEMENT? |
A: | In connection with the Closing, SVF 3 will enter into a Tax Receivable Agreement (the “Tax Receivable Agreement”) with New Symbotic Holdings and other members of New Symbotic Holdings (the “TRA Holders”). The Tax Receivable Agreement will generally provide for the payment by the Post-Combination Company to the TRA Holders of 85% of the amount of the cash savings, if any, in U.S. federal and state income tax that the Post-Combination Company actually realizes (or is deemed to realize in certain circumstances) in periods after the Closing as a result of (i) the existing tax basis in certain assets of New Symbotic Holdings that is allocable to the relevant New Symbotic Holdings Common Units, (ii) any step-up in tax basis in New Symbotic Holdings’ assets resulting from (a) certain purchases of New Symbotic Holdings Common Units (including the purchases of the Purchase Units pursuant to the Unit Purchase Agreement), (b) future exchanges of New Symbotic Holdings Common Units for cash or shares of the Post-Combination Company’s Class A common stock, (c) certain distributions (if any) by New Symbotic Holdings and (d) payments under the Tax Receivable Agreement, and (iii) tax benefits related to imputed interest deemed to be paid by the Post-Combination Company as a result of payments under the Tax Receivable Agreement. |
Q: |
DO I HAVE REDEMPTION RIGHTS? |
A: | If you are a Public Shareholder, you have the right to demand that SVF 3 redeem such shares for a pro rata portion of the cash held in SVF 3’s Trust Account. SVF 3 sometimes refers to these rights to demand redemption of the Public Shares as “redemption rights.” |
Q: |
WILL HOW I VOTE AFFECT MY ABILITY TO EXERCISE REDEMPTION RIGHTS? |
A: | No. You may exercise your redemption rights whether you vote your Public Shares for or against, or whether you abstain from voting on, the Business Combination Proposal or any other proposal described in this proxy statement/prospectus. As a result, the Business Combination Proposal can be approved by shareholders who will redeem their Public Shares and no longer remain shareholders and the Business Combination may be consummated even though the funds available from SVF 3’s Trust Account and the number of Public Shareholders are substantially reduced as a result of redemptions by Public Shareholders. However, Warehouse and Symbotic Holdings are not required to consummate the Business Combination if there is not at least $350,000,000 of Closing SVF Cash. Also, with fewer Public Shares and Public Shareholders, the trading market for the Post-Combination Company’s Class A common stock may be less liquid than the market for Public Shares prior to the Business Combination and SVF 3 may not be able to meet the listing standards of a national securities exchange. Risk Factors—Risks Related to Ownership of Our Common Stock Following the Business Combination—There can be no assurance that the Post-Combination Company’s securities will be approved for listing on NASDAQ or that the Post-Combination Company will be able to comply with the continued listing standards of NASDAQ. |
Q: |
HOW DO I EXERCISE MY REDEMPTION RIGHTS? |
A: | If you are a Public Shareholder and wish to exercise your redemption rights, you must demand that SVF 3 redeem your shares for cash no later than the second business day preceding the vote on the Business Combination Proposal by delivering your share certificates (if any) and other redemption forms to SVF 3’s transfer agent physically or electronically using Depository Trust Company’s DWAC (Deposit and Withdrawal at Custodian) system prior to the vote at the Extraordinary General Meeting. Any Public Shareholder will be entitled to demand that such holder’s shares be redeemed for a full pro rata portion of the amount then in the Trust Account (which, for illustrative purposes, was approximately $ , or approximately $ per Class A ordinary share, as of 2022, the SVF 3 Record Date). Such amount, including interest earned on the funds held in the Trust Account and not previously released to SVF 3 to pay its taxes, if any, will be paid promptly upon consummation of the Business Combination. However, the proceeds deposited in SVF 3’s Trust Account could become subject to the claims of SVF 3’s creditors, if any, which could have priority over the claims of SVF 3’s Public Shareholders, regardless of whether such Public Shareholders vote for or against the Business Combination Proposal. Therefore, the per-share distribution from the SVF 3 Trust Account in such a situation may be less than originally anticipated due to such claims. Your vote on any proposal will have no impact on the amount you will receive upon exercise of your redemption rights. |
Q: |
WHAT ARE THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF EXERCISING MY REDEMPTION RIGHTS? |
A: | We expect that a U.S. holder (as defined in “ Material U.S. Federal Income Tax Consequences—U.S. Holders Material U.S. Federal Income Tax Consequences |
Q: |
DO I HAVE APPRAISAL RIGHTS IF I OBJECT TO THE PROPOSED BUSINESS COMBINATION OR THE PROPOSED DOMESTICATION? |
A: | No. SVF 3 shareholders do not have appraisal rights in connection with the Business Combination or the Domestication under Cayman Islands law or under the DGCL. |
Q: |
WHAT HAPPENS TO THE FUNDS DEPOSITED IN THE TRUST ACCOUNT AFTER CONSUMMATION OF THE BUSINESS COMBINATION? |
A: | A total of $320,000,000 in net proceeds of the SVF 3 IPO and a portion of the proceeds from the sale of the Private Placement Shares was placed in the Trust Account following the SVF 3 IPO. After consummation of the Business Combination, the funds in the Trust Account will be used to pay holders of the Public Shares who exercise redemption rights, to pay fees and expenses incurred in connection with the Business Combination (including aggregate fees of $11,200,000 as deferred underwriting commissions) and for the Post-Combination Company’s working capital and general corporate purposes. |
Q: |
HOW DO THE INITIAL SHAREHOLDERS AND SVF 3’S DIRECTORS AND OFFICERS INTEND TO VOTE ON THE PROPOSALS? |
A: | The Initial Shareholders of record and SVF 3’s directors and officers are entitled to vote an aggregate of 22.3% of SVF 3’s outstanding ordinary shares. The Initial Shareholders and SVF 3’s directors and officers have agreed to vote the Founder Shares, Private Placement Shares and any Public Shares held by them as of the SVF 3 Record Date in favor of each of the proposals presented at the Extraordinary General Meeting. |
Q: |
WHAT CONSTITUTES A QUORUM AT THE EXTRAORDINARY GENERAL MEETING? |
A: | One or more shareholders of SVF 3 holding at least a majority of the paid up voting share capital of SVF and entitled to vote at the Extraordinary General Meeting must be present, in person (which would include presence at a virtual meeting) or represented by proxy, at the Extraordinary General Meeting to constitute a quorum and in order to conduct business at the Extraordinary General Meeting. Abstentions and broker non-votes will be counted as present for the purpose of determining a quorum. The Initial Shareholders and SVF 3’s directors and officers, who currently own 22.3% of the issued and outstanding ordinary shares, will count towards this quorum. In the absence of a quorum, the chairman of the Extraordinary General Meeting has power to adjourn the Extraordinary General Meeting. As of the SVF 3 Record Date for the Extraordinary General Meeting, ordinary shares would be required to achieve a quorum. |
Q: |
WHAT VOTE IS REQUIRED TO APPROVE EACH PROPOSAL AT THE EXTRAORDINARY GENERAL MEETING? |
Q: |
WHY IS SVF 3 PROPOSING THE DOMESTICATION? |
A: |
The Board believes that there are significant advantages that will arise as a result of a change of domicile to Delaware, including (i) the prominence, predictability and flexibility of Delaware law, (ii) Delaware’s well-established principles of corporate governance and (iii) the increased ability for Delaware corporations to attract and retain qualified directors, each of the foregoing as discussed in greater detail in the section entitled “ Proposal No. 2—The Domestication Proposal—Reasons for the Domestication.” |
Q: |
HOW WILL THE DOMESTICATION AFFECT MY PUBLIC SHARES? |
A: |
Upon the effectiveness of the Domestication, (a) each outstanding Class A ordinary share will automatically convert into one share of the Post-Combination Company’s Class A common stock, and (b) each outstanding Class B ordinary share will automatically convert into one share of the Post-Combination Company’s Class B common stock, which, upon the Closing, will automatically convert into one share of the Post-Combination Company’s Class A common stock. |
Q: |
WHAT AMENDMENTS WILL BE MADE TO THE ARTICLES OF SVF 3? |
A: |
The consummation of the Business Combination is conditioned, among other things, on the Domestication. Accordingly, in addition to voting on the Business Combination, SVF 3 shareholders are also being asked to consider and vote upon a proposal to approve the Domestication and replace SVF 3’s Articles, in each case, under the Cayman Islands Companies Act, with the Proposed Organizational Documents under the DGCL, which differ materially from the SVF 3’s Articles in several respects. See the section titled “ Proposal No. 2—The Domestication Proposal—Comparison of Corporate Governance and Shareholder Rights. |
Q: |
WHAT EQUITY STAKE WILL PUBLIC SHAREHOLDERS AND WAREHOUSE UNITHOLDERS HOLD IN SYMBOTIC INC. AFTER THE CONSUMMATION OF THE BUSINESS COMBINATION? |
A: | As of the date of this proxy statement/prospectus, there are 41,040,000 SVF 3 ordinary shares issued and outstanding, including 8,000,000 SVF 3 Class B ordinary shares, each of which will be converted into one share of Class A common stock in the Post-Combination Company as a result of the Domestication and the Business Combination. As of the date of this proxy statement/prospectus (without giving effect to the Business Combination and assuming No Redemptions), assuming that each Class B ordinary share is converted into one Class A ordinary share, the SVF 3 fully-diluted stock capital would be 41,040,000 ordinary shares. |
• | current Warehouse unitholders will own 45,947,608 shares of Class V-1 common stock, representing approximately % of the total common stock outstanding and 421,431,957 shares of Class V-3 common stock, representing approximately % of the total common stock outstanding; |
• | the Subscribers will own 20,500,000 shares of Class A common stock, representing approximately % of the total common stock outstanding; |
• | the Forward Purchase Investor will own 20,000,000 shares of Class A common stock, representing approximately % of the total common stock outstanding; |
• | the Public Shareholders will own 32,000,000 shares of Class A common stock, representing approximately % of the total common stock outstanding; and |
• | the Initial Shareholders will own 5,624,000 shares of Class A common stock, representing approximately % of the total common stock outstanding (including 200,000 shares issuable upon conversion of Working Capital Loans and not including 3,616,000 shares subject to vesting requirements pursuant to the Sponsor Letter Agreement). See “ SVF 3’s Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources The Business Combination—Other Agreements—Sponsor Letter Agreement. |
• | current Warehouse unitholders will own 45,947,608 shares of Class V-1 common stock, representing approximately % of the total common stock outstanding and 421,431,957 shares of Class V-3 common stock, representing approximately % of the total common stock outstanding; |
• | the Subscribers will own 20,500,000 shares of Class A common stock, representing approximately % of the total common stock outstanding; |
• | the Forward Purchase Investor will own 20,000,000 shares of Class A common stock, representing approximately % of the total common stock outstanding; |
• | the Public Shareholders will own 112,500 shares of Class A common stock, representing approximately % of the total common stock outstanding; and |
• | the Initial Shareholders will own 5,624,000 shares of Class A common stock, representing approximately % of the total common stock outstanding (including 200,000 shares issuable upon conversion of Working Capital Loans and not including 3,616,000 shares subject to vesting requirements pursuant to the Sponsor Letter Agreement). See “ SVF 3’s Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources The Business Combination—Other Agreements—Sponsor Letter Agreement. |
Q: |
WHAT ARE THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE DOMESTICATION? |
A: | As discussed more fully under “ Material U.S. Federal Income Tax Consequences tax-free reorganization within the meaning of Section 368(a)(l)(F) of the Code. However, due to the absence of direct guidance on the application of Section 368(a)(1)(F) to a statutory conversion of a corporation holding only investment-type assets such as SVF 3, this result is not entirely clear. Assuming that the Domestication so qualifies, U.S. holders (as defined in “Material U.S. Federal Income Tax Consequences—U.S. Holders |
• | A U.S. holder of SVF 3 ordinary shares whose SVF 3 ordinary shares have a fair market value of less than $50,000 at the time of the Domestication should not recognize any gain or loss and generally should not be required to include any part of SVF 3’s earnings in income; |
• | A U.S. holder of SVF 3 ordinary shares whose SVF 3 ordinary shares have a fair market value of $50,000 or more on the date of the Domestication, but who at the time of the Domestication owns (actually and constructively) less than 10% of the total combined voting power of all classes of SVF 3 ordinary shares entitled to vote and less than 10% of the total value of all classes of SVF 3 ordinary shares, will generally recognize gain (but not loss) as a result of the Domestication. As an alternative to recognizing gain, such U.S. holders may file an election to include in income as a dividend earnings and profits (as defined in the U.S. Treasury regulations (“Treasury Regulations”) under Section 367 of the Code) attributable to its SVF 3 ordinary shares provided certain other requirements are satisfied. SVF 3 does not expect that SVF 3’s cumulative earnings and profits will be material at the time of the Domestication. |
• | A U.S. holder of SVF 3 ordinary shares who at the time of the Domestication owns (actually and constructively) 10% or more of the total combined voting power of all classes of SVF 3 ordinary shares or 10% of the total value of all classes of SVF 3 shares entitled to vote will generally be required to include in income as a dividend earnings and profits (as defined in the Treasury Regulations under Section 367 of the Code) attributable to its SVF 3 ordinary shares. SVF 3 does not expect that SVF 3’s cumulative earnings and profits will be material at the time of Domestication. |
Q: |
DO ANY OF SVF 3’S DIRECTORS OR OFFICERS HAVE INTERESTS IN THE BUSINESS COMBINATION THAT MAY DIFFER FROM OR BE IN ADDITION TO THE INTERESTS OF SVF 3 SHAREHOLDERS? |
A: | Certain of SVF 3’s executive officers and certain non-employee directors may have interests in the Business Combination that may be different from, or in addition to, the interests of SVF 3 shareholders generally. The SVF 3 Board was aware of and considered these interests to the extent such interests existed at the time, among other matters, in approving the Merger Agreement and in recommending that the Business Combination be approved by the shareholders of SVF 3. |
• | The Articles provide that SVF 3 renounce its interest or expectancy in any corporate opportunity about which any director or officer of SVF 3 acquires knowledge unless such opportunity is expressly offered to such person solely in his or her capacity as SVF 3’s director or officer and such opportunity is one that the Company is able to complete on a reasonable basis. Certain of SVF 3’s officers and directors have, and any of them in the future may have additional, fiduciary or contractual obligations to other entities that are sponsored by affiliates of the Sponsor. SVF 3 does not believe, however, that such pre-existing fiduciary duties or contractual obligations of its officers and directors materially affected its search for an acquisition target. |
• | If the Business Combination with Symbotic or another business combination is not consummated within the Completion Window, SVF 3 will cease all operations except for the purpose of winding up, redeeming 100% of the outstanding Public Shares for cash and, subject to the approval of its remaining shareholders and the SVF 3 Board, dissolving and liquidating. In such event, the 8,000,000 Founder Shares held by SVF 3’s Initial Shareholders which were acquired for an aggregate purchase price of $25,000 prior to the SVF 3 IPO, would be worthless because SVF 3’s Initial Shareholders are not entitled to participate in any redemption or distribution with respect to such shares. Such Founder Shares had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date. Certain Founder Shares are subject to certain performance-based vesting provisions as described under “ The Business Combination —Other Agreements—Sponsor Letter Agreement. |
• | Simultaneously with the closing of the Initial Public Offering, SVF 3 consummated a private sale of 1,040,000 Class A ordinary shares (the “Private Placement”) at a price of $10.00 per Private Placement Share to our Sponsor, generating gross proceeds of approximately $10,400,000. If we do not consummate a business combination transaction within the Completion Window, then the proceeds from the sale of the Private Placement Shares will be part of the liquidating distribution to the Public Shareholders and the Private Placement Shares held by the Sponsor will be worthless. |
• | If SVF 3 is unable to complete a business combination within the Completion Window, its officers will be personally liable under certain circumstances described herein to ensure that the proceeds in the Trust Account are not reduced by the claims of target businesses or claims of vendors or other entities that are owed money by SVF 3 for services rendered or contracted for or products sold to SVF 3. If SVF 3 consummates a business combination, on the other hand, SVF 3 will be liable for all such claims. |
• | SVF 3’s directors and officers and their affiliates are entitled to reimbursement of out-of-pocket expenses incurred by them in connection with certain activities on SVF 3’s behalf, such as identifying |
and investigating possible business targets and business combinations. However, if SVF 3 fails to consummate a business combination within the Completion Window, they will not have any claim against the Trust Account for such reimbursement. Accordingly, SVF 3 may not be able to reimburse these expenses if the Business Combination or another business combination is not consummated within the Completion Window. |
• | The continued indemnification of current directors and officers and the continuation of directors’ and officers’ liability insurance. |
• | Our Sponsor, officers and directors collectively (including entities controlled by officers and directors) have made an aggregate investment of $11,550,000, or $1.26 per SVF 3 ordinary share (including the 8,000,000 Founder Shares, the 1,040,000 Private Placement Shares and the purchase of 112,500 Public Shares in connection with the SVF 3 IPO). Such shares had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date (of which 150,000 Founder Shares and 112,500 Public Shares were held by our directors and officers, which had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date). As a result of the significantly lower investment per share of our Sponsor, directors and officers as compared with the investment per share of our Public Shareholders, a transaction which results in an increase in the value of the investment of our Sponsor, directors and officers may result in a decrease in the value of the investment of our Public Shareholders. These interests could, in theory, incentivize our Sponsor, directors and officers to complete a business combination with a less favorable target company or on terms less favorable to stockholders rather than liquidate. |
• | There will be no liquidating distributions from our Trust Account with respect to the Founder Shares or the Private Placement Shares if we fail to complete a business combination within the Completion Window. Our Sponsor purchased the Founder Shares prior to the SVF 3 IPO for an aggregate purchase price of $25,000, and transferred 50,000 Founder Shares to each of Michael Carpenter, Michael Tobin and Cristiana Falcone for aggregate consideration of $300. |
• | Following the Closing, the Sponsor would be entitled to the repayment of any Working Capital Loans and advances that have been made to SVF 3 and remain outstanding. On August 10, 2021, the Sponsor agreed to loan SVF 3 $2.0 million as a Working Capital Loan. On November 9, 2021, the Sponsor and SVF 3 agreed to amend this loan to increase the commitment by $1.0 million. If SVF 3 does not complete an initial business combination within the Completion Window, SVF 3 may use a portion of its working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Up to $2,000,000 of such loans may be convertible into Class A ordinary shares of the post-business combination entity at a price of $10.00 per share at the option of the lender. |
• | Our Initial Shareholders and our directors and officers have agreed to waive their rights to liquidating distributions from the Trust Account with respect to their Founders Shares and will not have rights to liquidating distributions with respect to their Private Placement Shares if SVF 3 fails to complete a business combination within the Completion Window. |
• | As of October 31, 2021, Walmart, Symbotic’s largest customer, holds a majority of the outstanding equity interests of Flipkart Internet Pvt Ltd, a company in which SoftBank Vision Fund II, an affiliate of SBIA, holds a minority interest. |
• | In order to protect the amounts held in our Trust Account, the Sponsor has agreed that it will be liable to us if and to the extent any claims by a vendor for services rendered or products sold to us, or a prospective target business with which we have entered into a transaction agreement, reduce the amount of funds in our Trust Account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in SVF 3’s Trust Account or to any claims under our indemnity of the underwriters of the offering against certain liabilities, including liabilities under the Securities Act. |
Q: |
WHAT DO I NEED TO DO NOW? |
A: | SVF 3 urges you to read carefully and consider the information contained in this proxy statement/prospectus, including the Annexes and the other documents referred to herein, and to consider how the Business Combination will affect you as a shareholder. Shareholders should then vote as soon as possible in accordance with the instructions provided in this proxy statement/prospectus and on the enclosed proxy card. |
Q: |
HOW DO I VOTE? |
A: | If you are a holder of record of SVF 3 ordinary shares on the SVF 3 Record Date, you may vote in person (which would include presence at a virtual meeting) at the Extraordinary General Meeting or by submitting a proxy for the Extraordinary General Meeting. You may submit your proxy by completing, signing, dating and returning the enclosed proxy card in the accompanying pre-addressed postage paid envelope. If you hold your shares in “street name,” which means your shares are held of record by a broker, bank or nominee, you should contact your broker to ensure that votes related to the shares you beneficially own are properly counted. In this regard, you must provide the broker, bank or nominee with instructions on how to vote your shares or, if you wish to attend the meeting and vote in person (which would include presence at a virtual meeting), obtain a proxy from your broker, bank or nominee. |
Q: |
IF MY SHARES ARE HELD IN “STREET NAME” BY A BROKER, BANK OR OTHER NOMINEE, WILL MY BROKER, BANK OR OTHER NOMINEE VOTE MY SHARES FOR ME? |
A: | If your shares are held in “street name” in a stock brokerage account or by a broker, bank or other nominee, you must provide the record holder of your shares with instructions on how to vote your shares. Please follow the voting instructions provided by your broker, bank or other nominee. Please note that you may not vote shares held in “street name” by returning a proxy card directly to SVF 3 or by voting in person (which would include presence at a virtual meeting) at the Extraordinary General Meeting unless you provide a “legal proxy,” which you must obtain from your broker, bank or other nominee. |
Q: |
WHAT IF I ATTEND THE EXTRAORDINARY GENERAL MEETING AND ABSTAIN OR DO NOT VOTE? |
A: | For purposes of the Extraordinary General Meeting, an abstention occurs when a shareholder attends the meeting in person (which would include presence at a virtual meeting) and does not vote or returns a proxy with an “abstain” vote. |
Q: |
WHAT WILL HAPPEN IF I RETURN MY PROXY CARD WITHOUT INDICATING HOW TO VOTE? |
A: | If you sign and return your proxy card without indicating how to vote on any particular proposal, the ordinary shares represented by your proxy will be voted as recommended by the SVF 3 Board with respect to that proposal. |
Q: |
MAY I CHANGE MY VOTE AFTER I HAVE MAILED MY SIGNED PROXY CARD? |
A: | Yes. Shareholders may send a later-dated, signed proxy card to SVF 3’s transfer agent at the address set forth at the end of this section so that it is received prior to the vote at the Extraordinary General Meeting or attend the Extraordinary General Meeting in person (which would include presence at a virtual meeting) and vote. Shareholders also may revoke their proxy by sending a notice of revocation to SVF 3’s transfer agent, which must be received prior to the vote at the Extraordinary General Meeting. |
Q: |
WHAT HAPPENS IF I FAIL TO TAKE ANY ACTION WITH RESPECT TO THE EXTRAORDINARY GENERAL MEETING? |
A: | If you fail to take any action with respect to the Extraordinary General Meeting and the Business Combination is approved by shareholders and consummated, you will become a stockholder of the Post-Combination Company. Failure to take any action with respect to the Extraordinary General Meeting will not affect your ability to exercise your redemption rights. If you fail to take any action with respect to the Extraordinary General Meeting and the Business Combination is not approved, you will continue to be a shareholder of SVF 3. |
Q: |
WHAT SHOULD I DO IF I RECEIVE MORE THAN ONE SET OF VOTING MATERIALS? |
A: | Shareholders may receive more than one set of voting materials, including multiple copies of this proxy statement/prospectus and multiple proxy cards or voting instruction cards. For example, if you hold your shares in more than one brokerage account, you will receive a separate voting instruction card for each brokerage account in which you hold shares. If you are a holder of record and your shares are registered in more than one name, you will receive more than one proxy card. Please complete, sign, date and return each proxy card and voting instruction card that you receive in order to cast a vote with respect to all of your SVF 3 shares. |
Q: |
WHO CAN HELP ANSWER MY QUESTIONS? |
A: | If you have questions about the Business Combination or if you need additional copies of the proxy statement/prospectus or the enclosed proxy card you should contact: |
• | Step 1— Company Reorganization |
• | Step 2— Domestication |
• | Step 3— PIPE Investment |
• | Step 4— Forward Purchase |
• | Step 5— Merger |
• | Step 6— Unit Purchase |
• | current Warehouse unitholders will own 45,947,608 shares of Class V-1 common stock, representing approximately % of the total common stock outstanding and 421,431,957 shares of Class V-3 common stock, representing approximately % of the total common stock outstanding; |
• | the Subscribers will own 20,500,000 shares of Class A common stock, representing approximately % of the total common stock outstanding; |
• | the Forward Purchase Investor will own 20,000,000 shares of Class A common stock, representing approximately % of the total common stock outstanding; |
• | the Public Shareholders will own 32,000,000 shares of Class A common stock, representing approximately % of the total common stock outstanding; and |
• | the Initial Shareholders will own 5,624,000 shares of Class A common stock, representing approximately % of the total common stock outstanding (including 200,000 shares issuable upon conversion of Working Capital Loans and not including 3,616,000 shares subject to vesting requirements pursuant to the Sponsor Letter Agreement). See “ SVF 3’s Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources The Business Combination—Other Agreements—Sponsor Letter Agreement. |
• | current Warehouse unitholders will own 45,947,608 shares of Class V-1 common stock, representing approximately % of the total common stock outstanding and 421,431,957 shares of Class V-3 common stock, representing approximately % of the total common stock outstanding; |
• | the Subscribers will own 20,500,000 shares of Class A common stock, representing approximately % of the total common stock outstanding; |
• | the Forward Purchase Investor will own 20,000,000 shares of Class A common stock, representing approximately % of the total common stock outstanding; |
• | the Public Shareholders will own 112,500 shares of Class A common stock, representing approximately % of the total common stock outstanding; and |
• | the Initial Shareholders will own 5,624,000 shares of Class A common stock, representing approximately % of the total common stock outstanding (including 200,000 shares issuable upon conversion of Working Capital Loans and not including 3,616,000 shares subject to vesting requirements pursuant to the Sponsor Letter Agreement). See “ SVF 3’s Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources The Business Combination—Other Agreements—Sponsor Letter Agreement. |
• | The approval of each of the Business Combination Proposal, the Governance Proposals, the Director Election Proposal, the Merger Issuance Proposal, the Subscription Agreements Proposal, the Incentive Compensation Plan Proposal, the ESPP Proposal and the Adjournment Proposal, if presented, will require the affirmative vote of at least a majority of the votes cast by the shareholders present in person (which would include presence at a virtual meeting) or represented by proxy at the quorate Extraordinary General Meeting and entitled to vote on such matter. |
• | The approval of the Domestication Proposal and the Organizational Documents Proposal will require the affirmative vote of at least a two-thirds (2/3) majority of the votes cast by the shareholders present in person (which would include presence at a virtual meeting) or represented by proxy at the quorate Extraordinary General Meeting and entitled to vote on such matter. |
• | The Articles provide that SVF 3 renounce its interest or expectancy in any corporate opportunity about which any director or officer of SVF 3 acquires knowledge unless such opportunity is expressly offered to such person solely in his or her capacity as SVF 3’s director or officer and such opportunity is one that the Company is able to complete on a reasonable basis. Certain of SVF 3’s officers and directors have, and any of them in the future may have additional, fiduciary or contractual obligations to other entities that are sponsored by affiliates of the Sponsor. SVF 3 does not believe, however, that such pre-existing fiduciary duties or contractual obligations of its officers and directors materially affected its search for an acquisition target. |
• | If the Business Combination with Symbotic or another business combination is not consummated within the Completion Window, SVF 3 will cease all operations except for the purpose of winding up, redeeming 100% of the outstanding Public Shares for cash and, subject to the approval of its remaining shareholders and the SVF 3 Board, dissolving and liquidating. In such event, the 8,000,000 Founder Shares held by SVF 3’s Initial Shareholders which were acquired for an aggregate purchase price of $25,000 prior to the SVF 3 IPO, would be worthless because SVF 3’s Initial Shareholders are not entitled to participate in any redemption or distribution with respect to such shares. Such Founder Shares had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date. Certain Founder Shares are subject to certain performance-based vesting provisions as described under “ The Business Combination—Other Agreements— Sponsor Letter Agreement . |
• | Simultaneously with the closing of the Initial Public Offering, SVF 3 consummated a private sale of 1,040,000 Class A ordinary shares (the “Private Placement”) at a price of $10.00 per Private Placement Share to our Sponsor, generating gross proceeds of approximately $10,400,000. If we do not consummate a business combination transaction within the Completion Window, then the proceeds from the sale of the Private Placement Shares will be part of the liquidating distribution to the Public Shareholders and the Private Placement Shares held by the Sponsor will be worthless. |
• | If SVF 3 is unable to complete a business combination within the Completion Window, its officers will be personally liable under certain circumstances described herein to ensure that the proceeds in the Trust Account are not reduced by the claims of target businesses or claims of vendors or other entities that are owed money by SVF 3 for services rendered or contracted for or products sold to SVF 3. If SVF 3 consummates a business combination, on the other hand, SVF 3 will be liable for all such claims. |
• | SVF 3’s directors and officers and their affiliates are entitled to reimbursement of out-of-pocket expenses incurred by them in connection with certain activities on SVF 3’s behalf, such as identifying and investigating possible business targets and business combinations. However, if SVF 3 fails to consummate a business combination within the Completion Window, they will not have any claim against the Trust Account for such reimbursement. Accordingly, SVF 3 may not be able to reimburse these expenses if the Business Combination or another business combination is not consummated within the Completion Window. |
• | The continued indemnification of current directors and officers and the continuation of directors’ and officers’ liability insurance. |
• | Our Sponsor, officers and directors collectively (including entities controlled by officers and directors) have made an aggregate investment of $11,550,000, or $1.26 per SVF 3 ordinary share (including the 8,000,000 Founder Shares, the 1,040,000 Private Placement Shares and the purchase of 112,500 Public Shares in connection with the SVF 3 IPO). Such shares had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date (of which 150,000 Founder Shares and 112,500 Public Shares were held by our directors and officers, which had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date). As a result of the significantly lower investment per share of our Sponsor, directors and officers as compared with the investment per share of our Public Shareholders, a transaction which results in an increase in the value of the investment of our Sponsor, directors and officers may result in a decrease in the value of the investment of our Public Shareholders. These interests could, in theory, incentivize our Sponsor, directors and officers to complete a business combination with a less favorable target company or on terms less favorable to stockholders rather than liquidate. |
• | There will be no liquidating distributions from our Trust Account with respect to the Founder Shares or the Private Placement Shares if we fail to complete a business combination within the Completion Window. Our Sponsor purchased the Founder Shares prior to the SVF 3 IPO for an aggregate purchase price of $25,000, and transferred 50,000 Founder Shares to each of Michael Carpenter, Michael Tobin and Cristiana Falcone for aggregate consideration of $300. |
• | Following the Closing, the Sponsor would be entitled to the repayment of any Working Capital Loans and advances that have been made to SVF 3 and remain outstanding. On August 10, 2021, the Sponsor agreed to loan SVF 3 $2.0 million as a Working Capital Loan. On November 9, 2021, the Sponsor and SVF 3 agreed to amend this loan to increase the commitment by $1.0 million. If SVF 3 does not complete an initial business combination within the Completion Window, SVF 3 may use a portion of its working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Up to $2,000,000 of such loans may be convertible into Class A ordinary shares of the post-business combination entity at a price of $10.00 per share at the option of the lender. |
• | Our Initial Shareholders and our directors and officers have agreed to waive their rights to liquidating distributions from the Trust Account with respect to their Founders Shares and will not have rights to liquidating distributions with respect to their Private Placement Shares if SVF 3 fails to complete a business combination within the Completion Window. |
• | As of October 31, 2021, Walmart, Symbotic’s largest customer, holds a majority of the outstanding equity interests of Flipkart Internet Pvt Ltd, a company in which SoftBank Vision Fund II, an affiliate of SBIA, holds a minority interest. |
• | In order to protect the amounts held in our Trust Account, the Sponsor has agreed that it will be liable to us if and to the extent any claims by a vendor for services rendered or products sold to us, or a prospective target business with which we have entered into a transaction agreement, reduce the amount of funds in our Trust Account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in SVF 3’s Trust Account or to any claims under our indemnity of the underwriters of the offering against certain liabilities, including liabilities under the Securities Act. |
• | the required approval by Warehouse unitholders with respect to the Merger Agreement and the Company Merger Agreement will have been obtained; |
• | the required approval by SVF 3 shareholders with respect to the Conditions Precedent Proposals will have been obtained; |
• | the registration statement of which this proxy statement/prospectus forms a part will have become effective under the Securities Act and no stop order suspending the effectiveness of the registration statement will have been issued and no proceedings for that purpose will have been initiated or threatened by the SEC; |
• | no governmental entity of competent jurisdiction will have enacted, issued, promulgated, enforced or entered any law or governmental order (whether temporary, preliminary or permanent) that is in effect and makes illegal or otherwise prohibits the consummation of the transactions contemplated by the Merger Agreement; |
• | the consummation of the sale of the Post-Combination Company’s Class A common stock under the Subscription Agreements of at least $50,000,000; |
• | SVF 3 having at least $5,000,001 of net tangible assets (as determined in accordance with Rule 3a51-1(g)(1) of the Exchange Act) after giving effect to the redemptions of Public Shares in connection with the Business Combination; and |
• | the effectiveness of the Company Reorganization. |
• | certain representations and warranties of Warehouse and Symbotic Holdings related to organization, good standing and qualification, capital structure, corporate authority and approval and brokers and finders will have been true and correct as of the date of the Merger Agreement and will be true and correct as of the Closing (except to the extent that any such representation and warranty expressly speaks as of a particular date or period of time, in which case such representation and warranty will be so true and correct as of such particular date or period of time), in each case, in all material respects; |
• | certain representations and warranties of Warehouse and Symbotic Holdings related to absence of certain changes will have been true and correct as of the date of the Merger Agreement and will be true and correct as of the Closing as though made as of the Closing (except to the extent that any such representation and warranty expressly speaks as of a particular date or period of time, in which case such representation and warranty will be so true and correct as of such particular date or period of time); |
• | other representations and warranties of Warehouse and Symbotic Holdings set forth will have been true and correct as of the date of the Merger Agreement and will be true and correct as of the Closing (except to the extent that any such representation and warranty expressly speaks as of a particular date or period of time, in which case such representation and warranty will be so true and correct as of such particular date or period of time), except for any failure of any such representation and warranty to be so true and correct (without giving effect to any qualification by materiality or Material Adverse Effect (as defined in the Merger Agreement) contained therein) that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; |
• | each of Warehouse and Symbotic Holdings will have performed or complied in all material respects with each of its obligations required to be performed or complied with by it under the Merger Agreement at or prior to the Closing; |
• | since the date of the Merger Agreement, there will not have occurred any effect that, individually or in the aggregate, has resulted in a Material Adverse Effect and is continuing as of the Closing; |
• | the receipt by SVF 3 and Merger Sub of a certificate signed on behalf of Warehouse and Symbotic Holdings by an officer of Warehouse certifying as to the satisfaction of certain closing conditions; and |
• | Warehouse and Symbotic Holdings will have delivered a counterpart of each of the transaction documents to which Warehouse, Symbotic Holdings or their affiliates is a party to SVF 3. |
• | certain representations and warranties of SVF 3 and Merger Sub related to organization, good standing and qualification, capital structure, corporate authority and approval, SVF 3’s Trust Account and brokers and finders will be true and correct (without giving effect to any qualification by materiality or Material Adverse Effect contained therein) as of the Closing (except to the extent that any such representation and warranty expressly speaks as of a particular date or period of time, in which case such representation and warranty will be so true and correct as of such particular date or period of time), in each case, in all material respects; |
• | other representations and warranties of SVF 3 and Merger Sub set forth in the Merger Agreement will be true and correct as of the Closing (except to the extent that any such representation and warranty expressly speaks as of a particular date or period of time, in which case such representation and warranty will be so true and correct as of such particular date or period of time), except for any failure of any such representation and warranty to be so true and correct (without giving effect to any qualification by materiality or material adverse effect set forth therein) that would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on SVF 3 or prevent, materially delay or materially impair the ability of SVF 3 or Merger Sub to consummate the transactions contemplated by the Merger Agreement; |
• | each of SVF 3 and Merger Sub will have performed or complied in all material respects with each of its obligations required to be performed or complied with by it under the Merger Agreement at or prior to the Closing; |
• | the receipt by Warehouse of a certificate signed on behalf of SVF 3 and Merger Sub by an executive officer of SVF 3 certifying as to the satisfaction of certain closing conditions; |
• | the shares of Class A common stock of the Post-Combination Company contemplated to be listed pursuant to the Merger Agreement will have been listed on NASDAQ and will be eligible for continued listing on NASDAQ immediately following the Closing (as if it were a new initial listing by an issuer that had never been listed prior to the Closing); |
• | resignations of certain directors and officers of SVF 3; |
• | the Closing SVF Cash being equal to or in excess of $350,000,000; |
• | the consummation of the transactions contemplated by the Forward Purchase Agreement; and |
• | SVF 3 and Merger Sub will have delivered a counterpart of each of the transaction documents to which SVF 3, Merger Sub or their affiliates is a party to Warehouse. |
• | by mutual written consent of SVF 3 and Warehouse; |
• | by either SVF 3 or Warehouse if the Merger is not consummated on or before the date that is 180 days from the date of the Merger Agreement (as such date may be extended as a result of an adjournment of the Extraordinary General Meeting), which date may be extended for another 60 days if the registration statement of which this proxy statement/prospectus is a part has been filed but is not effective on the date that is 14 days prior to the end of the initial 180-day period; |
• | by either SVF 3 or Warehouse if the requisite approval of the stockholders of SVF 3 is not obtained at the Extraordinary General Meeting, as may be adjourned or postponed from time to time; |
• | by either SVF 3 or Warehouse if any law or governmental order permanently restraining, enjoining or otherwise prohibiting consummation of the Merger will have been enacted, issued, promulgated, enforced or entered and will have become final and non-appealable, provided that the right to terminate the Merger Agreement will not be available to any party that has breached in any material respect its obligations set forth in the Merger Agreement in any manner that will have proximately contributed to the enactment, issuance, promulgation, enforcement or entry of such law or governmental order; |
• | by SVF 3 if Warehouse has breached its representations, warranties, covenants or agreements in the Merger Agreement such that the closing conditions would not be satisfied (subject to a cure period); |
• | by SVF 3 if Warehouse fails to deliver the audited consolidated balance sheets of Warehouse and its subsidiaries for the fiscal years ended September 26, 2020 and September 25, 2021, and the audited consolidated statement of operations, statements of comprehensive income (loss), statements of changes in redeemable preferred and common units and members’ deficit and statements of cash flows of Warehouse and its subsidiaries for the same period, together with the notes and schedules thereto, accompanied by the reports thereon of Warehouse’s independent auditors (which reports shall be unqualified), in each case, prepared in accordance with GAAP and Regulation S-X and audited in accordance with the auditing standards of the Public Company Accounting Oversight Board (the “PCAOB Audited Financials”) by February 28, 2022; |
• | by SVF 3 if the PCAOB Audited Financials contains material restatements, deviations, differences or modifications from the audited consolidated balance sheets of Warehouse and its subsidiaries as of September 26, 2020 and September 28, 2019 and the audited consolidated statement of operations, statements of comprehensive income (loss), statements of changes in redeemable preferred and common units and members’ deficit and statements of cash flows of Warehouse and its subsidiaries for the fiscal years then ended, together with the auditor’s reports thereon of the corresponding fiscal year that would reasonably be expected to significantly and negatively impact the equity value of |
Warehouse based on the methodology used to determine the equity value of Warehouse included in the non-binding term sheet dated August 2, 2021 between Warehouse and SVF 3, so long as SVF 3 notifies Warehouse of its decision to terminate within 15 days from receipt of the PCAOB Audited Financials; |
• | by SVF 3 if Warehouse fails to obtain the requisite approval of the unitholders of Warehouse within 48 hours after the registration statement of which this proxy statement/prospectus is a part becomes effective; or |
• | by Warehouse if SVF 3 or Merger Sub breaches its respective representations, warranties, covenants or agreements in the Merger Agreement such that the closing conditions would not be satisfied (subject to a cure period). |
Sources |
Uses |
|||||||||
Proceeds from Trust Account |
$ | 320 | Cash to Balance Sheet | $ | 531 | |||||
PIPE Investment |
205 | Repurchase Amount | 300 | |||||||
Forward Purchase Shares |
200 | Transaction Costs | 69 | |||||||
SVF Cash Outside Trust Account (1) |
1 | |||||||||
Net Warrant Exercise Proceeds |
174 | |||||||||
Total Sources |
$ |
900 |
Total Uses |
$ |
900 |
Sources |
Uses |
|||||||||
Proceeds from Trust Account |
$ | 1 | Cash to Balance Sheet | $ | 212 | |||||
PIPE Investment |
205 | Repurchase Amount | 300 | |||||||
Forward Purchase Shares |
200 | Transaction Costs | 69 | |||||||
SVF Cash Outside Trust Account (1) |
1 | |||||||||
Net Warrant Exercise Proceeds |
174 | |||||||||
Total Sources |
$ |
581 |
Total Uses |
$ |
581 |
(1) | As of December 31, 2021. |
• | The Symbotic Founder, certain family members of the Symbotic Founder and certain affiliated entities and trusts of the Symbotic Founder and his family members will have a majority of the voting power of the Post-Combination Company under both the No Redemption and Maximum Redemption scenarios; |
• | The Symbotic Founder, certain family members of the Symbotic Founder and certain affiliated entities and trusts of the Symbotic Founder and his family members will have the ability to nominate and represent majority of the Post-Combination Company’s Board; and |
• | Warehouse’s former management will comprise the vast majority of the management and executive positions of the Post-Combination Company. |
• | Risks related to Symbotic’s business, operations and industry, including that: |
• | Symbotic is an early-stage company with a limited operating history. Symbotic has not been profitable historically and may not achieve or maintain profitability in the near term or at all, and it is difficult to evaluate Symbotic’s future prospects and the risks and challenges it may encounter. |
• | Symbotic depends heavily on principal customers, and therefore, its success is heavily dependent on its principal customers’ ability to grow their businesses and their adoption of Symbotic’s warehouse automation systems. |
• | Symbotic’s operating results and financial condition may fluctuate from period to period, which could make its future operating results difficult to predict or cause its operating results to fall below analysts’ and investors’ expectations. |
• | C&S Wholesale Grocers, an important customer of Symbotic, is an affiliate of Symbotic. Despite Symbotic’s affiliation with C&S Wholesale Grocers, there is no guarantee that they will continue to be a customer beyond the term of their current contract with Symbotic. |
• | Symbotic depends upon key employees and other highly qualified personnel, and will need to hire and train additional personnel. |
• | Symbotic’s new warehouse automation systems, software, services and products may not be successful or meet existing or future requirements in supply agreements with existing or future customers, and may be affected from time to time by design and manufacturing defects that could adversely affect its business, financial condition and results of operations and result in harm to its reputation. |
• | Symbotic relies on suppliers to provide equipment, components and services. Any disruption to the suppliers’ operations could adversely affect Symbotic’s business, financial condition and results of operations. |
• | The markets in which Symbotic participates could become more competitive and many companies may target the markets in which Symbotic does business. Additionally, Symbotic’s customers and potential customers may develop in-house solutions that compete with its warehouse automation systems. If Symbotic is unable to compete effectively with these potential competitors and developments, its sales and profitability could be adversely affected. |
• | If Symbotic is unable to develop new solutions, adapt to technological change, evolving industry standards and changing business needs or preferences, sell its software, services and products into new markets or further penetrate its existing markets, its revenue may not grow as expected. |
• | Laws and regulations governing the robotics and warehouse automation industries are still developing and may restrict Symbotic’s business or increase the costs of its solutions, making Symbotic’s solutions less competitive or adversely affecting its revenue growth. |
• | Supply chain interruptions may increase Symbotic’s costs or reduce its revenue. |
• | Risks related to intellectual property, including that: |
• | Symbotic may need to bring or defend itself against patent, copyright, trademark, trade secret or other intellectual property infringement or misappropriation claims, which may adversely affect its business, financial condition and results of operations by limiting its ability to use technology or intellectual property and causing it to incur substantial costs. |
• | Symbotic’s business, financial condition and results of operations may be adversely affected and the value of its brand, products and other intangible assets may be diminished if it is unable to maintain and protect its IP from unauthorized use, infringement or misappropriation by third parties. |
• | Risks related to cybersecurity, software deficiencies, service interruptions and data privacy, including that: |
• | Symbotic has experienced cybersecurity incidents in the past and may experience further cybersecurity incidents or security breaches of its systems or IT (including third-party systems or IT that Symbotic relies on to operate its business) in the future, which may result in system disruptions, shutdowns or unauthorized access to or disclosure of confidential or personal information. |
• | Symbotic’s ability to efficiently manage and expand its business depends significantly on the reliability, capacity and protection of its systems and IT(including third-party systems or IT that Symbotic relies on to operate its business). Real or perceived errors, failures, bugs, defects or security breaches or interruptions of these systems and IT could disrupt its operations, lead to loss of proprietary information, damage its relationships with customers or its vendors, result in regulatory investigations and penalties, lead to liability and litigation, negatively impact its reputation and otherwise adversely affect its business, financial condition and results of operations. |
• | Risks related to SVF 3 and the Business Combination, including that: |
• | SVF 3 shareholders will have a reduced ownership and voting interest after the Business Combination and will exercise less influence over management. |
• | If the Business Combination’s benefits do not meet the expectations of financial analysts, the market price of the Post-Combination Company’s Class A common stock may decline. |
• | The consummation of the Business Combination is subject to a number of conditions and if those conditions are not satisfied or waived, the Merger Agreement may be terminated in accordance with its terms and the Business Combination may not be completed. |
• | SVF 3 directors and officers may have interests in the Business Combination different from the interests of SVF 3 shareholders. |
• | The unaudited pro forma condensed combined financial information included in this proxy statement/prospectus is preliminary and the actual financial condition and results of operations after the Business Combination may differ materially. |
• | Because SVF 3 is incorporated under the laws of the Cayman Islands, in the event the Domestication is not completed, you may face difficulties in protecting your interests, and your ability to protect your rights through the U.S. Federal courts may be limited. |
• | Symbotic’s financial results forecast relies in large part upon assumptions and analyses developed by Symbotic. If these assumptions or analyses prove to be incorrect, Symbotic’s actual results may be materially different from its forecasted results. |
• | Legal proceedings in connection with the business combination, the outcomes of which are uncertain, could delay or prevent the completion of the business combination. |
• | Risks related to redemption, including that: |
• | There is no guarantee that a SVF 3 Public Shareholder’s decision whether to redeem their Public Shares for a pro rata portion of the Trust Account will put such shareholder in a better future economic position. |
• | If you or a “group” of shareholders of which you are a part are deemed to hold an aggregate of more than 15% of the Public Shares, you (or, if a member of such a group, all of the members of such group in the aggregate) will lose the ability to redeem all such shares in excess of 15% of the Public Shares. |
• | Other risks, including that: |
• | As a private company, Symbotic has not been required to document and test, management has not been required to certify, and its auditors have not been required to opine on, the effectiveness of its internal controls over financial reporting. Failure to maintain adequate financial, IT and management processes and controls could result in material weaknesses and errors in Symbotic’s financial reporting, which could adversely affect its business, financial condition and results of operations. Moreover, there are inherent limitations in all control systems, and misstatements due to error or fraud that could seriously harm its business may occur and not be detected. |
• | The dual class structure of the Post-Combination Company’s common stock has the effect of concentrating voting control with the Symbotic Founder and certain other holders of the Post-Combination Company’s Class V-3 common stock; this will limit or preclude your ability to influence corporate matters. |
• | Symbotic shares certain key executives with C&S Wholesale Grocers, which means those executives will not devote their full time and attention to the Post-Combination Company’s affairs, and the overlap may give rise to conflicts. |
For the Year Ended December 31, 2021 (Unaudited) |
||||
Statement of Operations Data: |
||||
Loss from operations |
$ | (6,492,183 | ) | |
Other income, net |
16,430 | |||
Net loss |
(6,475,753 | ) | ||
Basic and diluted weighted average shares outstanding of Class A ordinary shares subject to possible redemption |
25,950,685 | |||
Basic and diluted net loss per ordinary share, Class A ordinary shares subject to possible to possible redemption |
(0.19 | ) | ||
Basic and diluted weighted average shares outstanding of non-redeemable ordinary shares(1) |
8,654,356 | |||
Basic and diluted net loss per ordinary share, non-redeemable ordinary shares |
(0.19 | ) | ||
Statement of Cash Flows Data: |
||||
Net cash used in operating activities |
(3,382, 804 | ) | ||
Net cash used in investing activities |
(320,000,000 | ) | ||
Net cash provided by financing activities |
324,195,688 |
(1) | On January 29, 2021, SVF 3 effected a share dividend of 12,125,000 Class B ordinary shares, and on February 3 and February 26, 2021, the Sponsor surrendered 5,000,000 and 2,000,000 Class B ordinary shares for no consideration, respectively. The share dividend and share surrender resulted in an aggregate of 8,000,000 Class B ordinary shares outstanding. All shares and associated amounts have been retroactively restated to reflect the share capitalization. |
As of December 31, 2021 |
||||
Balance Sheet Data: |
||||
Total assets |
$ | 321,708,203 | ||
Total liabilities |
15,249,443 | |||
Total shareholders’ equity (deficit) |
(13,541,240 | ) |
Three Months Ended |
Year Ended |
|||||||||||||||||||
December 25, 2021 |
December 26, 2020 |
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidated Statements of Operations Data: |
||||||||||||||||||||
Revenue |
$ | 77,064 | 5,542 | $ | 251,913 | $ | 92,086 | $ | 100,123 | |||||||||||
Gross profit (loss) |
14,468 | (565 | ) | 10,447 | (18,930 | ) | (19,964 | ) | ||||||||||||
Operating loss |
(23,075 | ) | (26,186 | ) | (122,381 | ) | (110,377 | ) | (105,793 | ) | ||||||||||
Net loss |
(23,053 | ) | (26,203 | ) | (122,314 | ) | (109,521 | ) | (104,361 | ) | ||||||||||
Loss per unit attributable to Class A Units and Class C Units, basic and diluted |
$ | (4.88 | ) | $ | (5.36 | ) | $ | (24.16 | ) | $ | (21.64 | ) | $ | (20.16 | ) | |||||
Weighted average units used in computing loss per unit attributable to Class A Units and Class C Units, basic and diluted |
6,494,932 | 6,426,203 | 6,426,203 | 6,426,203 | 6,426,203 | |||||||||||||||
Consolidated Statements of Cash Flows Data: |
||||||||||||||||||||
Net cash and cash equivalents provided by / (used in) operating activities |
$ | 40,000 | $ | 45,890 | $ | 109,567 | $ | (124,307 | ) | $ | 17,185 | |||||||||
Net cash and cash equivalents used in investing activities |
(7,505 | ) | (1,199 | ) | (12,168 | ) | (5,059 | ) | (4,327 | ) | ||||||||||
Net cash and cash equivalents provided by financing activities |
173,796 | — | — | 100,000 | — |
December 25, 2021 |
September 25, 2021 |
September 26, 2020 |
||||||||||
(in thousands) | ||||||||||||
Consolidated Balance Sheet Data: |
||||||||||||
Total assets |
$ | 454,861 | $ | 280,535 | $ | 224,953 | ||||||
Total liabilities |
581,353 | 557,503 | 409,029 | |||||||||
Redeemable preferred and common units |
852,121 | 836,260 | 660,391 | |||||||||
Total members’ deficit |
(978,613 | ) | (1,113,228 | ) | (844,467 | ) |
• | Assuming No Redemptions |
• | Assuming Maximum Redemptions: |
Combined Pro Forma |
||||||||
(in thousands, except share and per share data) |
Assuming No Redemptions |
Assuming Maximum Redemptions |
||||||
Summary Unaudited Pro Forma Condensed Combined Statement of Operations Data |
||||||||
Three months ended December 25, 2021 |
||||||||
Revenue |
$ | 77,064 | $ | 77,064 | ||||
Net loss attributable to stockholders |
$ | (3,512 | ) | $ | (2,236 | ) | ||
Net loss per share attributable to class A common stock - basic and diluted |
$ | (0.04 | ) | $ | (0.05 | ) | ||
Weighted average shares of class A common stock outstanding—basic and diluted |
78,124,000 | 46,897,456 | ||||||
Summary Unaudited Pro Forma Condensed Combined Statement of Operations Data |
||||||||
Year ended September 25, 2021 |
||||||||
Revenue |
$ | 251,913 | $ | 251,913 | ||||
Net loss attributable to stockholders |
$ | (30,553 | ) | $ | (23,857 | ) | ||
Net loss per share attributable to class A common stock—basic and diluted |
$ | (0.39 | ) | $ | (0.51 | ) | ||
Weighted average shares of class A common stock outstanding—basic and diluted |
78,124,000 | 46,897,456 | ||||||
Summary Unaudited Pro Forma Condensed Combined Balance Sheet Data |
||||||||
As of December 25, 2021 |
||||||||
Total assets |
$ | 817,080 | $ | 504,815 | ||||
Total liabilities |
$ | 581,353 | $ | 581,353 | ||||
Total stockholders equity attributable to stockholders |
$ | 34,513 | $ | (6,181 | ) | |||
Noncontrolling interests |
$ | 201,214 | $ | (70,357 | ) | |||
Total equity |
$ | 235,727 | $ | (76,538 | ) |
• | product development, including investments in our product development team and the development of new products and new functionality for our warehouse automation systems, as well as investments in further optimizing our existing warehouse automation systems and robotics technology, software, products and infrastructure; |
• | our technology infrastructure, including systems architecture, scalability, availability, performance and security; |
• | acquisitions and strategic transactions; |
• | our international operations and anticipated international expansion; and |
• | general administration, including increased legal, compliance and accounting expenses associated with being a public company. |
• | the portion of our revenue attributable to software license and maintenance fees and system operation service fees versus milestone payments for system installation and other sales; |
• | changes in pricing by us in response to competitive pricing actions; |
• | the ability of our equipment vendors to continue to manufacture high-quality products and to supply sufficient products to meet our demands; |
• | the impact of shortages of components, commodities or other materials, including semiconductors and integrated circuits, and other supply chain disruptions; |
• | our ability to control costs, including our operating expenses and the costs of the equipment we purchase; |
• | the timing and success of introductions of new solutions, products or upgrades by us or our competitors; |
• | changes in our business and pricing policies or those of our competitors; |
• | competition, including entry into the industry by new competitors and new offerings by existing competitors; |
• | our ability to successfully manage any past or future acquisitions, strategic transactions and integrations of businesses; |
• | our ability to obtain, maintain, protect or enforce our IP (as defined herein), including our trademarks and patents, and maintaining the confidentiality of our trade secrets; |
• | the amount and timing of expenditures, including those related to expanding our operations, increasing research and development, improving facilities and introducing new warehouse automation systems; |
• | the ability to effectively manage growth within existing and new markets domestically and abroad; |
• | changes in the payment terms for our warehouse automation systems; |
• | the strength of regional, national and global economies; |
• | the impact of cybersecurity incidents or security breaches; and |
• | the impact of natural disasters, health pandemics or man-made problems such as terrorism. |
• | poor quality or an insecure supply chain, which could adversely affect the reliability and reputation of our hardware and software products, solutions and services; |
• | changes in the cost of these purchases due to inflation, exchange rate fluctuations, taxes, tariffs, commodity market volatility or other factors that affect our suppliers; |
• | embargoes, sanctions and other trade restrictions that may affect our ability to purchase from various suppliers; |
• | risks related to intellectual property such as challenges to ownership of rights or alleged infringement by suppliers; and |
• | shortages of components, commodities or other materials, including semiconductors and integrated circuits, which could adversely affect our manufacturing efficiencies and ability to make timely delivery of our products, solutions and services. |
• | our warehouse automation systems’ functionality, performance, ease of use, ease of installation, reliability, availability and cost effectiveness relative to that of our competitors’ products; |
• | our success in utilizing new and proprietary technologies (including software) to offer solutions and features previously not available in the marketplace; |
• | our success in identifying new markets, applications and technologies and evolving our product to address these markets; |
• | our ability to attract and retain customers; |
• | our name recognition and reputation; and |
• | our ability to obtain, maintain, protect and enforce our IP. |
• | cease development, sales or use of our products that incorporate or are covered by the asserted IP; |
• | pay substantial damages, including through settlement payments or indemnification obligations (including legal fees); |
• | obtain a license from the owner of the asserted IP, which license may not be available on reasonable terms or at all; or |
• | redesign one or more aspects of our warehouse automation systems that is alleged to infringe, misappropriate or violate any third-party IP. |
• | any patent applications we submit or currently have pending may not result in the issuance of patents; |
• | the scope of our issued patents, including our patent claims, may not be broad enough to protect our proprietary rights; |
• | our issued patents may be challenged, invalidated or held unenforceable through administrative or legal proceedings in the U.S. or in foreign jurisdictions; |
• | our employees or business partners may breach their confidentiality, non-disclosure and non-use obligations to us and we may not have adequate remedies for any such breach; |
• | current and future competitors or third parties may reverse engineer, circumvent or design around our technology or IP or independently discover or develop technologies or software that are substantially equivalent or superior to ours; |
• | we may not be successful in enforcing our IP portfolio against third parties who are infringing, violating or misappropriating such IP, for a number of reasons, including substantive and procedural legal impediments; |
• | our trademarks may not be valid or enforceable, our efforts to protect our trademarks from unauthorized use may be deemed insufficient to satisfy legal requirements throughout the world to maintain our rights in our trademarks, and any goodwill that we have developed in those trademarks could be lost or impaired; |
• | the costs associated with enforcing patents, confidentiality and invention assignment agreements or other IP and IP-related agreements may make enforcement commercially impracticable or divert our management’s attention and resources; and |
• | our use of open source software could: (i) subject us to claims alleging that we are not compliant with such software licenses; (ii) require us to publicly release portions of our proprietary source code; and (iii) expose us to greater security risks than would the use of non-open source third-party commercial software. |
• | SVF 3 may experience negative reactions from the financial markets, including negative impacts on its stock price (including to the extent that the current market price reflects a market assumption that the Business Combination will be completed); |
• | SVF 3 will have incurred substantial expenses and will be required to pay certain costs relating to the Business Combination, whether or not the Business Combination is completed; and |
• | since the Merger Agreement restricts the conduct of SVF 3’s business prior to completion of the Business Combination, SVF 3 may not have been able to take certain actions during the pendency of the Business Combination that would have benefitted it as an independent company, and the opportunity to take such actions may no longer be available (see the section titled “ The Merger Agreement—Covenants and Agreements |
• | The Articles provide that SVF 3 renounce its interest or expectancy in any corporate opportunity about which any director or officer of SVF 3 acquires knowledge unless such opportunity is expressly offered to such person solely in his or her capacity as SVF 3’s director or officer and such opportunity is one that the Company is able to complete on a reasonable basis. Certain of SVF 3’s officers and directors have, and any of them in the future may have additional, fiduciary or contractual obligations to other entities that are sponsored by affiliates of the Sponsor. SVF 3 does not believe, however, that such pre-existing fiduciary duties or contractual obligations of its officers and directors materially affected its search for an acquisition target. |
• | If the Business Combination with Symbotic or another business combination is not consummated within the Completion Window, SVF 3 will cease all operations except for the purpose of winding up, redeeming 100% of the outstanding Public Shares for cash and, subject to the approval of its remaining shareholders and the SVF 3 Board, dissolving and liquidating. In such event, the 8,000,000 Founder Shares held by SVF 3’s Initial Shareholders which were acquired for an aggregate purchase price of $25,000 prior to the SVF 3 IPO, would be worthless because SVF 3’s Initial Shareholders are not entitled to participate in any redemption or distribution with respect to such shares. Such Founder Shares had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date. Certain Founder Shares are subject to certain performance-based vesting provisions as described under “The Business Combination—Other Agreements—Sponsor Letter Agreement. |
• | Simultaneously with the closing of the Initial Public Offering, SVF 3 consummated a private sale of 1,040,000 Class A ordinary shares (the “Private Placement”) at a price of $10.00 per Private Placement Share to our Sponsor, generating gross proceeds of approximately $10,400,000. If we do not consummate a business combination transaction within the Completion Window, then the proceeds from the sale of the Private Placement Shares will be part of the liquidating distribution to the Public Shareholders and the Private Placement Shares held by the Sponsor will be worthless. |
• | If SVF 3 is unable to complete a business combination within the Completion Window, its officers will be personally liable under certain circumstances described herein to ensure that the proceeds in the Trust Account are not reduced by the claims of target businesses or claims of vendors or other entities that are owed money by SVF 3 for services rendered or contracted for or products sold to SVF 3. If SVF 3 consummates a business combination, on the other hand, SVF 3 will be liable for all such claims. |
• | SVF 3’s directors and officers and their affiliates are entitled to reimbursement of out-of-pocket |
and investigating possible business targets and business combinations. However, if SVF 3 fails to consummate a business combination within the Completion Window, they will not have any claim against the Trust Account for such reimbursement. Accordingly, SVF 3 may not be able to reimburse these expenses if the Business Combination or another business combination is not consummated within the Completion Window. |
• | The continued indemnification of current directors and officers and the continuation of directors’ and officers’ liability insurance. |
• | Our Sponsor, officers and directors collectively (including entities controlled by officers and directors) have made an aggregate investment of $11,550,000, or $1.26 per SVF 3 ordinary share (including the 8,000,000 Founder Shares, the 1,040,000 Private Placement Shares and the purchase of 112,500 Public Shares in connection with the SVF 3 IPO). Such shares had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date (of which 150,000 Founder Shares and 112,500 Public Shares were held by our directors and officers, which had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date). As a result of the significantly lower investment per share of our Sponsor, directors and officers as compared with the investment per share of our Public Shareholders, a transaction which results in an increase in the value of the investment of our Sponsor, directors and officers may result in a decrease in the value of the investment of our Public Shareholders. These interests could, in theory, incentivize our Sponsor, directors and officers to complete a business combination with a less favorable target company or on terms less favorable to stockholders rather than liquidate. |
• | There will be no liquidating distributions from our Trust Account with respect to the Founder Shares or the Private Placement Shares if we fail to complete a business combination within the Completion Window. Our Sponsor purchased the Founder Shares prior to the SVF 3 IPO for an aggregate purchase price of $25,000, and transferred 50,000 Founder Shares to each of Michael Carpenter, Michael Tobin and Cristiana Falcone for aggregate consideration of $300. |
• | Following the Closing, the Sponsor would be entitled to the repayment of any Working Capital Loans and advances that have been made to SVF 3 and remain outstanding. On August 10, 2021, the Sponsor agreed to loan SVF 3 $2.0 million as a Working Capital Loan. On November 9, 2021, the Sponsor and SVF 3 agreed to amend this loan to increase the commitment by $1.0 million. If SVF 3 does not complete an initial business combination within the Completion Window, SVF 3 may use a portion of its working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Up to $2,000,000 of such loans may be convertible into Class A ordinary shares of the post-business combination entity at a price of $10.00 per share at the option of the lender. |
• | Our Initial Shareholders and our directors and officers have agreed to waive their rights to liquidating distributions from the Trust Account with respect to their Founders Shares and will not have rights to liquidating distributions with respect to their Private Placement Shares if SVF 3 fails to complete a business combination within the Completion Window. |
• | As of October 31, 2021, Walmart, Symbotic’s largest customer, holds a majority of the outstanding equity interests of Flipkart Internet Pvt Ltd, a company in which SoftBank Vision Fund II, an affiliate of SBIA, holds a minority interest. |
• | In order to protect the amounts held in our Trust Account, the Sponsor has agreed that it will be liable to us if and to the extent any claims by a vendor for services rendered or products sold to us, or a prospective target business with which we have entered into a transaction agreement, reduce the amount of funds in our Trust Account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in SVF 3’s Trust Account or to any claims under our indemnity of the underwriters of the offering against certain liabilities, including liabilities under the Securities Act. |
• | a U.S. holder of SVF 3 ordinary shares whose SVF 3 ordinary shares have a fair market value of less than $50,000 on the date of the Domestication should not recognize any gain or loss and generally should not be required to include any part of SVF 3’s earnings in income pursuant to the Domestication; |
• | a U.S. holder of SVF 3 ordinary shares whose SVF 3 ordinary shares have a fair market value of $50,000 or more on the date of the Domestication, but who on the date of the Domestication owns (actually and constructively) less than 10% of the total combined voting power of all classes of SVF 3 ordinary shares |
entitled to vote and less than 10% of the total value of all classes of SVF 3 ordinary shares, will generally recognize gain (but not loss) with respect to the Domestication, as if such U.S. holder exchanged its SVF 3 ordinary shares for Symbotic Inc. common stock in a taxable transaction. As an alternative to recognizing gain, such U.S. holders may file an election to include in income as a dividend the “all earnings and profits amount” (as defined in Treasury Regulation Section 1.367(b)-2(d)) attributable to their SVF 3 ordinary shares, provided certain other requirements are satisfied. SVF 3 does not expect that SVF 3’s cumulative earnings and profits will be material at the time of Domestication; and |
• | a U.S. holder of SVF 3 ordinary shares who on the date of the Domestication owns (actually and constructively) 10% or more of the total combined voting power of all classes of SVF 3 ordinary shares entitled to vote or 10% or more of the total value of all classes of SVF 3 ordinary shares will generally be required to include in income as a dividend the “all earnings and profits amount” (as defined in Treasury Regulation Section 1.367(b)-2(d)) attributable to its SVF 3 ordinary shares. Any such U.S. holder that is a corporation may, under certain circumstances, effectively be exempt from taxation on a portion or all of the deemed dividend pursuant to Section 245A of the Code. SVF 3 does not expect that SVF 3’s cumulative earnings and profits will be material at the time of the Domestication. |
• | Prospective financial information relating to revenue is based on a variety of operational assumptions, including expansion within Symbotic’s current customer base, existing sales pipeline opportunities, and new sales opportunities in Symbotic’s strategically addressable markets in addition to contracted backlog of over $5.4 billion with non-changeable, scheduled orders that should produce revenue in excess of projections for FY2022 and FY2023; and |
• | Prospective financial information relating to gross profit and adjusted EBITDA are based on estimated costs to manufacture and install its systems over time, as well as assumptions on the growth of operating expenses to support the growth of the company. Gross profit visibility is enhanced by the cost structure across the strong majority of Symbotic’s contracted backlog; gross profits have guaranteed minimums with key variable cost items such as labor and steel cost variances being absorbed by the customer. |
• | the impact of the COVID-19 pandemic on our financial condition and the results of operations; |
• | our operating and financial performance and prospects; |
• | our quarterly or annual earnings or those of other companies in our industry compared to market expectations; |
• | conditions that impact demand for our products; |
• | future announcements concerning our business, our clients’ businesses or our competitors’ businesses; |
• | the public’s reaction to our press releases, other public announcements and filings with the SEC; |
• | the market’s reaction to our reduced disclosure and other requirements as a result of being an “emerging growth company” under the Jumpstart Our Business Startups Act (the “JOBS Act”); |
• | the size of our public float; |
• | coverage by or changes in financial estimates by securities analysts or failure to meet their expectations; |
• | market and industry perception of our success, or lack thereof, in pursuing our growth strategy; |
• | strategic actions by us or our competitors, such as acquisitions or restructurings; |
• | changes in laws or regulations which adversely affect our industry or us; |
• | changes in accounting standards, policies, guidance, interpretations or principles; |
• | changes in senior management or key personnel; |
• | issuances, exchanges or sales, or expected issuances, exchanges or sales of our capital stock; |
• | changes in our dividend policy; |
• | adverse resolution of new or pending litigation against us; and |
• | changes in general market, economic and political conditions in the United States and global economies or financial markets, including those resulting from natural disasters, terrorist attacks, acts of war and responses to such events. |
• | a prohibition on stockholder action by written consent, which means that our stockholders will only be able to take action at a meeting of stockholders and will not be able to take action by written consent for any matter; |
• | a forum selection clause, which means certain litigation against us can only be brought in Delaware; |
• | the authorization of undesignated preferred stock, the terms of which may be established and shares of which may be issued without further action by our stockholders; and |
• | advance notice procedures, which apply for stockholders to nominate candidates for election as directors or to bring matters before an annual meeting of stockholders. |
• | limited availability of market quotations for the Post-Combination Company’s securities; |
• | a determination that the Post-Combination Company’s Class A common stock is a “penny stock” which will require brokers trading in the Post-Combination Company’s Class A common stock to adhere to more stringent rules, |
• | possible reduction in the level of trading activity in the secondary trading market for shares of the Post-Combination Company’s Class A common stock; |
• | a limited amount of analyst coverage; and |
• | a decreased ability to issue additional securities or obtain additional financing in the future. |
• | The Symbotic Founder, certain family members of the Symbotic Founder and certain affiliated entities and trusts of the Symbotic Founder and his family members will have a majority of the voting power of the Post-Combination Company under both the no redemption and maximum redemption scenarios; |
• | The Symbotic Founder, certain family members of the Symbotic Founder and certain affiliated entities and trusts of the Symbotic Founder and his family members will have the ability to nominate and represent majority of the Post-Combination Company’s Board; |
• | Warehouse’s former management will comprise the vast majority of the management and executive positions of the Post-Combination Company |
• | Assuming No Redemptions |
• | Assuming Maximum Redemptions: |
Assuming No Redemptions (Shares) |
% |
Assuming Maximum Redemptions (Shares) |
% |
|||||||||||||
Class A—Public Stockholders |
|
32,000,000 |
|
5.9 | % | 773,456 | 0.1 | % | ||||||||
Class A—Sponsor Shares (1) |
5,624,000 | 1.0 | % | 5,624,000 | 1.1 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Company |
37,624,000 |
6.9 |
% |
6,397,456 |
1.2 |
% | ||||||||||
Class A—Subscription Agreements |
20,500,000 | 3.8 | % | 20,500,000 | 4.0 | % | ||||||||||
Class A—Forward Purchase Agreement |
20,000,000 | 3.7 | % | 20,000,000 | 3.9 | % | ||||||||||
Class V-1—Warehouse (1)(2)(3) |
45,947,608 | 8.4 | % | 45,947,608 | 8.9 | % | ||||||||||
Class V-3—Warehouse (3) |
421,431,957 | 77.2 | % | 421,431,957 | 82.0 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Shares at Closing |
545,503,565 |
100.0 |
% |
514,277,021 |
100.0 |
% |
(1) | Excludes 20,000,000 Earnout Interest and 3,616,000 Sponsor Shares subject to vesting based on achievement of certain share price targets. |
(2) | Excludes approximately 16,153,398 unvested Warehouse warrants. |
(3) | Class V-1 and V-3 common stock are non-economic and carry one and three votes per share, respectively, whereas Class A Common Stock are economic shares and will have one vote per share. |
As of December 25, 2021 |
As of December 31, 2021 |
Assuming No Redemptions |
Assuming Maximum Redemptions |
|||||||||||||||||||||||||||||
Warehouse (Historical) |
SVF 3 (Historical) |
Transaction Accounting Adjustments |
Pro Forma Combined |
Transaction Accounting Adjustments |
Pro Forma Combined |
|||||||||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||||||
Current assets: |
||||||||||||||||||||||||||||||||
Cash and cash equivalents |
$ | 363,047 | $ | 813 | $ | 205,000 | A |
$ | 724,387 | $ | (312,265 | ) | L |
$ | 412,122 | |||||||||||||||||
200,000 | B |
|||||||||||||||||||||||||||||||
320,016 | C |
|||||||||||||||||||||||||||||||
(62,440 | ) | D |
||||||||||||||||||||||||||||||
3,000 | E |
|||||||||||||||||||||||||||||||
(5,049 | ) | F |
||||||||||||||||||||||||||||||
(300,000 | ) | J |
||||||||||||||||||||||||||||||
Accounts receivable |
13,291 | — | — | 13,291 | — | 13,291 | ||||||||||||||||||||||||||
Inventories |
44,875 | — | — | 44,875 | — | 44,875 | ||||||||||||||||||||||||||
Deferred expenses, current |
502 | — | — | 502 | — | 502 | ||||||||||||||||||||||||||
Prepaid expenses and other current assets |
11,781 | 741 | — | 12,522 | — | 12,522 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total current assets |
433,496 | 1,554 | 360,527 | 795,577 | (312,265 | ) | 483,312 | |||||||||||||||||||||||||
Property and equipment, at cost |
39,751 | — | — | 39,751 | — | 39,751 | ||||||||||||||||||||||||||
Less: Accumulated depreciation |
(19,761 | ) | — | — | (19,761 | ) | — | (19,761 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Property and equipment, net |
19,990 | — | — | 19,990 | — | 19,990 | ||||||||||||||||||||||||||
Intangible assets, net |
1,035 | — | — | 1,035 | — | 1,035 | ||||||||||||||||||||||||||
Other long-term assets |
340 | 138 | — | 478 | — | 478 | ||||||||||||||||||||||||||
Investments held in trust account |
— | 320,016 | (320,016 | ) | C |
— | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total assets |
$ |
454,861 |
$ |
321,708 |
$ |
40,511 |
$ |
817,080 |
$ |
(312,265 |
) |
$ |
504,815 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
||||||||||||||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||||||||||||||
Accounts payable |
34,463 | 195 | (195 | ) | E |
34,463 | — | 34,463 | ||||||||||||||||||||||||
Accrued expenses |
30,858 | 3,295 | (3,295 | ) | E |
30,858 | — | 30,858 | ||||||||||||||||||||||||
Sales tax payable |
15,677 | — | — | 15,677 | — | 15,677 | ||||||||||||||||||||||||||
Deferred revenue, current |
253,581 | — | — | 253,581 | — | 253,581 | ||||||||||||||||||||||||||
Due to related party |
— | 559 |
(1,559 |
) |
G |
— |
— |
|||||||||||||||||||||||||
— | 1,000 | F |
— | — | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total current liabilities |
334,579 | 4,049 | (4,049 | ) | 334,579 | — | 334,579 | |||||||||||||||||||||||||
Deferred revenue, long term |
242,787 | — | — | 242,787 | — | 242,787 | ||||||||||||||||||||||||||
Other long-term liabilities |
3,987 | — | — | 3,987 | — | 3,987 |
As of September 25, 2021 |
As of September 30, 2021 |
Assuming No Redemptions |
Assuming Maximum Redemptions |
|||||||||||||||||||||||||||||
Warehouse (Historical) |
SVF 3 (Historical) |
Transaction Accounting Adjustments |
Pro Forma Combined |
Transaction Accounting Adjustments |
Pro Forma Combined |
|||||||||||||||||||||||||||
Deferred underwriting commissions |
— | 11,200 | (11,200 | ) | D |
— | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total liabilities |
581,353 | 15,249 | (15,249 | ) | 581,353 | — | 581,353 | |||||||||||||||||||||||||
Commitments and contingencies: |
||||||||||||||||||||||||||||||||
SVF 3 class A ordinary shares subject to possible redemption, $0.0001 par value |
— | 320,000 | (320,000 | ) | G |
— | — | — | ||||||||||||||||||||||||
Stockholders’ equity (deficit): |
||||||||||||||||||||||||||||||||
Warehouse preferred units, class B-1 |
235,182 | — | (235,182 | ) | J |
— | — | — | ||||||||||||||||||||||||
Warehouse preferred units, class B |
464,744 | — | (464,744 | ) | J |
— | — | — | ||||||||||||||||||||||||
Warehouse common units, class C |
152,195 | — | (152,195 | ) | J |
— | — | — | ||||||||||||||||||||||||
Warehouse common voting units, class A |
217,604 | — | (217,604 | ) | J |
— | — | — | ||||||||||||||||||||||||
SVF 3 class A ordinary shares |
— | — | 2 | B |
— | — | — | |||||||||||||||||||||||||
3 | G |
|||||||||||||||||||||||||||||||
(5 | ) | H |
||||||||||||||||||||||||||||||
SVF 3 class B ordinary shares |
— | 1 | (1 | ) | H |
— | — | — | ||||||||||||||||||||||||
Symbotic Inc. class A common stock |
— | — | 2 | A |
8 | (3 | ) | L |
5 | |||||||||||||||||||||||
6 | H |
|||||||||||||||||||||||||||||||
— | E |
|||||||||||||||||||||||||||||||
Symbotic Inc. class B common stock |
— | — | — | H |
— | — | — | |||||||||||||||||||||||||
Symbotic Inc. class V-1 common stock |
— | — | 5 | J |
5 | — | 5 | |||||||||||||||||||||||||
Symbotic Inc. class V-3 common stock |
— | — | 42 | J |
42 | — | 42 | |||||||||||||||||||||||||
Additional paid-in capital |
— | 204,998 | A |
1,230,675 | (312,262 | ) | L |
1,189,984 | ||||||||||||||||||||||||
199,998 | B |
271,571 | K |
|||||||||||||||||||||||||||||
(39,120 | ) | D |
||||||||||||||||||||||||||||||
319,997 | G |
|||||||||||||||||||||||||||||||
— | H |
|||||||||||||||||||||||||||||||
(25,662 | ) | I |
||||||||||||||||||||||||||||||
769,678 | J |
|||||||||||||||||||||||||||||||
2,000 | E |
|||||||||||||||||||||||||||||||
(201,214 | ) | K |
||||||||||||||||||||||||||||||
Accumulated deficit |
(1,193,831 | ) | (13,542 | ) | (12,120 | ) | D |
(1,193,831 | ) | — | (1,193,831 | ) | ||||||||||||||||||||
25,662 | J |
|||||||||||||||||||||||||||||||
Accumulated other comprehensive loss |
(2,386 | ) | — | — | (2,386 | ) | — | (2,386 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Equity attributable to stockholders |
(978,613 | ) | (13,541 | ) | 1,026,667 | 34,513 | (40,694 | ) | (6,181 | ) | ||||||||||||||||||||||
Noncontrolling interest |
— | — | 201,214 | K |
201,214 | (271,571 | ) | K |
(70,357 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total stockholders’ equity |
(978,613 | ) | (13,541 | ) | 1,227,881 | 235,727 | (312,265 | ) | (76,538 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total liabilities and stockholders’ equity (deficit) |
$ |
454,861 |
$ |
321,708 |
$ |
40,511 |
$ |
817,080 |
$ |
(312,265 |
) |
$ |
504,815 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 25, 2021 |
Three Months Ended December 31, 2021 |
Assuming No Redemptions |
Assuming Maximum Redemptions |
|||||||||||||||||||||||||
Warehouse (Historical) |
SVF 3 (Historical) |
Transaction Accounting Adjustments |
Pro Forma Combined |
Transaction Accounting Adjustments |
Pro Forma Combined |
|||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||
Systems |
$ | 71,222 | $ | — | $ | — | $ | 71,222 | $ | — | $ | 71,222 | ||||||||||||||||
Software subscriptions |
975 | — | — | 975 | — | 975 | ||||||||||||||||||||||
Operation services |
4,867 | — | — | 4,867 | — | 4,867 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total revenues |
77,064 | — | — | 77,064 | — | 77,064 | ||||||||||||||||||||||
Cost of revenues: |
||||||||||||||||||||||||||||
Systems |
56,485 | — | — | 56,485 | — | 56,485 | ||||||||||||||||||||||
Software subscriptions |
810 | — | — | 810 | — | 810 | ||||||||||||||||||||||
Operation services |
5,301 | — | — | 5,301 | — | 5,301 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total cost of revenues |
62,596 | — | — | 62,596 | — | 62,596 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross profit (loss) |
14,468 | — | — | 14,468 | — | 14,468 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||
Research and development expenses |
22,184 | — | — | 22,184 | — | 22,184 | ||||||||||||||||||||||
Selling, general, and administrative expenses |
15,359 | 1,469 | 16,828 | — | 16,828 | |||||||||||||||||||||||
General and administrative expenses—related party |
— | 30 | (30 | ) | CC |
— | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total operating expenses |
37,543 | 1,499 | (30 | ) | 39,012 | — | 39,012 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating loss |
(23,075 | ) | (1,499 | ) | 30 | (24,544 | ) | — | (24,544 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Other income net |
22 | 6 | (6 | ) | AA |
22 | — | 22 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loss before income tax |
(23,053 | ) | (1,493 | ) | 24 | (24,522 | ) | — | (24,522 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income tax benefit |
— | — | — | — | — | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss |
$ |
(23,053 |
) |
$ |
(1,493 |
) |
$ |
24 |
$ |
(24,522 |
) |
$ |
— |
$ |
(24,522 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Loss attributable to noncontrolling interests |
— | — | (21,010 | ) | DD |
(21,010 | ) | (1,276 | ) | DD |
(22,286 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss attributable to stockholders |
$ |
(23,053 |
) |
$ |
(1,493 |
) |
$ |
21,034 |
$ |
(3,512 |
) |
$ |
1,276 |
$ |
(2,236 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Warehouse (Historical) |
SVF 3 (Historical) |
Assuming No Redemptions |
Assuming No Redemptions |
|||||||||||||
Weighted average units used in computing loss per share attributable to Class A Units and Class C Units—basic and diluted |
6,494,932 | |||||||||||||||
Net loss per unit attributable to Class A Units and Class C Units—basic and diluted |
$ | (4.88 | ) | |||||||||||||
Weighted average shares outstanding of Class A ordinary shares—basic and diluted |
25,950,685 | |||||||||||||||
Net loss per ordinary share, Class A ordinary shares—basic and diluted |
$ | (0.04 | ) | |||||||||||||
Weighted average shares outstanding of Class B ordinary shares—basic and diluted |
8,654,356 | |||||||||||||||
Net loss per ordinary share, Class B ordinary shares—basic and diluted |
$ | (0.04 | ) | |||||||||||||
Weighted average shares outstanding of Class A common stock—basic and diluted |
78,124,000 | 46,897,456 | ||||||||||||||
Net loss per share of Class A stock—basic and diluted |
$ | (0.04 | ) | $ | (0.05 | ) |
Year Ended September 25, 2021 |
Year Ended December 31, 2021 |
Assuming No Redemptions |
Assuming Maximum Redemptions |
|||||||||||||||||||||||||
Warehouse (Historical) |
SVF 3 (Historical) |
Transaction Accounting Adjustments |
Pro Forma Combined |
Transaction Accounting Adjustments |
Pro Forma Combined |
|||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||
Systems |
$ | 227,563 | $ | — | $ | — | $ | 227,563 | $ | — | $ | 227,563 | ||||||||||||||||
Software subscriptions |
4,009 | — | — | 4,009 | — | 4,009 | ||||||||||||||||||||||
Operation services |
20,341 | — | — | 20,341 | — | 20,341 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total revenues |
251,913 | — | — | 251,913 | — | 251,913 | ||||||||||||||||||||||
Cost of revenues: |
||||||||||||||||||||||||||||
Systems |
216,577 | — | — | 216,577 | — | 216,577 | ||||||||||||||||||||||
Software subscriptions |
2,962 | — | — | 2,962 | — | 2,962 | ||||||||||||||||||||||
Operation services |
21,927 | — | — | 21,927 | — | 21,927 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total cost of revenues |
241,466 | — | — | 241,466 | — | 241,466 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross profit (loss) |
10,447 | — | — | 10,447 | — | 10,447 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||
Research and development expenses |
73,386 | — | — | 73,386 | — | 73,386 | ||||||||||||||||||||||
Selling, general, and administrative expenses |
59,442 | 6,392 | 12,120 | BB |
77,954 | — | 77,954 | |||||||||||||||||||||
General and administrative expenses—related party |
— | 100 | (100 | ) | CC |
— | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total operating expenses |
132,828 | 6,492 | 12,020 | 151,340 | — | 151,340 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating loss |
(122,381 | ) | (5,012 | ) | (12,020 | ) | (140,893 | ) | — | (140,893 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Other income net |
67 | 16 | (16 | ) | AA |
67 | — | 67 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loss before income tax |
(122,314 | ) | (6,476 | ) | (12,036 | ) | (140,826 | ) | — | (140,826 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income tax benefit |
— | — | — | — | — | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss |
$ |
(122,314 |
) |
$ |
(6,476 |
) |
$ |
(12,036 |
) |
$ |
(140,826 |
) |
$ |
— |
$ |
(140,826 |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Loss attributable to noncontrolling interests |
— | — | (110,273 | ) | DD |
(110,273 | ) | (6,696 | ) | DD |
(116,969 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss attributable to stockholders |
$ |
(122,314 |
) |
$ |
(6,476 |
) |
$ |
98,237 |
$ |
(30,553 |
) |
$ |
6,696 |
$ |
(23,857 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Warehouse (Historical) |
SVF 3 (Historical) |
Assuming No Redemptions |
Assuming No Redemptions |
|||||||||||||
Weighted average units used in computing loss per share attributable to Class A Units and Class C Units—basic and diluted |
6,426,203 | |||||||||||||||
Net loss per unit attributable to Class A Units and Class C Units—basic and diluted |
$ | (24.16 | ) | |||||||||||||
Weighted average shares outstanding of Class A ordinary shares—basic and diluted |
25,950,685 | |||||||||||||||
Net loss per ordinary share, Class A ordinary shares—basic and diluted |
$ | (0.19 | ) | |||||||||||||
Weighted average shares outstanding of Class B ordinary shares—basic and diluted |
8,654,356 | |||||||||||||||
Net loss per ordinary share, Class B ordinary shares—basic and diluted |
$ | (0.19 | ) | |||||||||||||
Weighted average shares outstanding of Class A common stock—basic and diluted |
78,124,000 | 46,897,456 | ||||||||||||||
Net loss per share of Class A stock—basic and diluted |
$ | (0.39 | ) | $ | (0.51 | ) |
1. |
Basis of Presentation |
• | SVF 3’s audited balance sheet as of December 31, 2021 and the related notes as of December 31, 2021, included elsewhere in this proxy statement/prospectus. |
• | Warehouse’s unaudited consolidated balance sheet as of December 25, 2021 and the related notes, included elsewhere in this proxy statement/prospectus. |
• | SVF 3’s audited statement of operations for the year ended December 31, 2021 and the related notes, included elsewhere in this proxy statement/prospectus; and |
• | SVF 3’s unaudited statement of operations for the nine months ended September 30, 2021 and the related notes, as filed with SEC in its Quarterly Report on Form 10-Q on January 26, 2022; and |
• | Warehouse’s unaudited consolidated statement of operations for the three months ended December 25, 2021 and the related notes, included elsewhere in this proxy statement/prospectus. |
• | SVF 3’s audited statement of operations for the year ended December 31, 2021 and the related notes, included elsewhere in this proxy statement/prospectus; and |
• | Warehouse’s audited consolidated statement of operations for the year ended September 25, 2021 and the related notes, included elsewhere in this proxy statement/prospectus. |
2. |
Accounting Policies |
3. |
Adjustments to Unaudited Pro Forma Condensed Combined Financial Information |
(A) |
Represents the gross proceeds of $205 million from the issuance of 20,500,000 shares of stock at a subscription price of $10.00 per share, per the terms of the Subscription Agreements. Issuance costs of $2.2 million in connection with the Subscription Agreements are included in the transaction costs discussed in (D) below. |
(B) |
Reflects the gross proceeds of $200 million from the issuance of 20,000,000 shares, pursuant to the Forward Purchase Agreement, of SVF 3 Class A common stock at a purchase price of $10.00 per share. Issuance costs of $0.02 million in connection with the funding are included in the transaction costs discussed in (D) below. |
(C) |
Reflects the reclassification of approximately $320 million of cash and cash equivalents held in SVF 3’s Trust Account at the balance sheet date that becomes available to fund the Business Combination. |
(D) |
Warehouse and SVF 3 expect to incur $70.6 million of total transaction costs, $8.2 million of which has already been incurred and reflected in their historical financial statements as of December 25, 2021. This adjustment reflects the settlement of estimated remaining transaction costs to be incurred as part of the merger totaling $62.4 million, consisting of $11.2 million of deferred underwriting fees, $39.1 million of equity issuance costs and $12.1 million of transaction costs to be expensed as incurred. Equity issuance costs includes $2.2 million and approximately $0.02 million related to Subscription Agreements and Forward Purchase Agreement, respectively. |
(E) |
Represents the borrowing of $3 million as Working Capital Loan to finance the transaction costs in connection with the Business Combination. $2 million will be settled by the issuance of Post-Combination Company’s Class A common stock and remaining $1 million will be settled as part of settlement of liabilities at the Closing. |
(F) |
Reflects the settlement of SVF 3’s historical liabilities and repayment of working capital of $1 million that will be settled at the Closing. |
(G) |
Reflects the reclassification of approximately $320 million of SVF 3 Class A ordinary shares subject to possible redemption to permanent equity. |
(H) |
Reflects the conversion of SVF 3 Class A ordinary shares and Class B ordinary shares into the Post-Combination Company’s shares of Class A common stock and Class B common stock, respectively, at the Closing. At the Domestication, 4.8 million SVF 3 Class B ordinary shares and 0.6 million Private Placement Shares are converted to the Post-Combination Company’s Class B common stock and Class A common stock, respectively. Subsequently, all shares of the Post-Combination Company’s Class B common stock will convert into shares of the Post-Combination Company’s Class A common stock. |
(I) |
Reflects the reclassification of SVF 3’s historical accumulated deficit to additional paid in capital. |
(J) |
Represents recapitalization of Warehouse equity after the Repurchase Amount of $300 million and issuance of 467,379,565 of the Post-Combination Company’s common stock consisting of 45,947,608 shares of Class V-1 common stock and 421,431,957 units of Class V-3 common stock, based on Exchange Ratio. |
(K) |
Reflects the recognition of noncontrolling interests as a result of the Up-C structure under the No Redemption and Maximum Redemption scenarios, respectively. |
(L) |
Reflects the Maximum Redemption of 31,226,544 Public Shares for aggregate redemption payments of $312 million at a redemption price of approximately $10.00 per share and allocated to Class A common stock and additional paid-in capital using par value $0.0001 per share. |
(AA) |
Reflects elimination of interest income on Investments held in Trust Account. |
(BB) |
Reflects the portion of estimated transaction costs not eligible for capitalization of $12.1 million. This is a non-recurring item. |
(CC) |
Reflects reversal of expenses incurred in relation to the Administrative Services Agreement that will cease upon close of the Business Combination. |
(DD) |
Reflects the recognition of net income attributable to noncontrolling interests as a result of the Up-C structure under the No Redemption and Maximum Redemption scenarios, respectively. |
4. |
Loss per Share |
For the Three Months Ended December 25, 2021 |
For the Three Months Ended September 25, 2021 |
|||||||||||||||
(in thousands, except share and per share data) |
Assuming No Redemptions |
Assuming Maximum Redemptions |
Assuming No Redemptions |
Assuming Maximum Redemptions |
||||||||||||
Pro forma net loss attributable to stockholders |
(3,512 | ) | (2,236 | ) | (30,553 | ) | (23,857 | ) | ||||||||
Weighted average shares outstanding of common stock—class A common stock (1) (2)(3) |
78,124,000 | 46,897,456 | 78,124,000 | 46,897,456 | ||||||||||||
Net loss per share (basic and diluted) attributable to class A common stock (4) |
$ | (0.04 | ) | $ | (0.05 | ) | $ | (0.39 | ) | $ | (0.51 | ) | ||||
Potential anti-dilutive instruments not considered |
||||||||||||||||
Earnout Interests and unvested Sponsor Shares (2) |
23,616,000 | 23,616,000 | 23,616,000 | 23,616,000 | ||||||||||||
Warrants (3) |
16,153,398 | 16,153,398 | 16,153,398 | 16,153,398 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
39,769,398 | 39,769,398 | 39,769,398 | 39,769,398 | ||||||||||||
|
|
|
|
|
|
|
|
(1) | The class V-1 and V-3 common stock issued for consideration are non-economic and as such are excluded from the earnings per share calculation. |
(2) | Excludes approximately 20,000,000 Earnout Interests and 3,616,000 Sponsor Shares subject to vesting based on achievement of certain share price targets. |
(3) | Excludes approximately 16,153,398 unvested Warehouse warrants. |
(4) | Diluted loss per common share is the same as basic loss per common share as all potential common shares (including exchangeable NCI) are antidilutive in any period where the Post-Combination Company has a loss. |
• | Assuming No Redemptions |
• | Assuming Maximum Redemptions: |
Combined Pro Forma (4) |
||||||||||||||||
Warehouse (Historical) |
SVF 3 (Historical) |
Assuming No Redemption |
Assuming Maximum Redemptions |
|||||||||||||
As of and for the three months ended December 25, 2021 (1) |
||||||||||||||||
Book value per share (2) |
$ | (0.15 | ) | $ | (0.39 | ) | $ | 0.44 | $ | (0.13 | ) | |||||
Weighted average shares outstanding of class A Units and class C stock—basic and diluted |
6,494,932 | |||||||||||||||
Net loss per share - basic and diluted |
$ | (4.88 | ) | |||||||||||||
Weighted average shares outstanding of Class A stock - basic and diluted |
25,950,685 | |||||||||||||||
Net loss per share of Class A stock - basic and diluted |
(0.04 | ) | ||||||||||||||
Weighted average shares outstanding of class B stock - basic and diluted |
8,654,356 | |||||||||||||||
Net loss per share of Class B stock - basic and diluted |
(0.04 | ) | ||||||||||||||
Pro forma weighted average shares outstanding of Class A common stock- basic and diluted (3) |
78,124,000 | 46,897,456 | ||||||||||||||
Net loss per share of Class A common stock - basic and diluted |
(0.04 | ) | (0.05 | ) | ||||||||||||
As of and for the year ended September 25, 2021 (1) |
Combined Pro Forma (4) |
||||||||||||||||
Warehouse (Historical) |
SVF 3 (Historical) |
Assuming No Redemption |
Assuming Maximum Redemptions |
|||||||||||||
Weighted average shares outstanding of class A and class C - basic and diluted |
6,426,203 | |||||||||||||||
Net loss per share—basic and diluted |
$ | (24.16 | ) | |||||||||||||
Weighted average shares outstanding of Class A stock—basic and diluted |
25,950,685 | |||||||||||||||
Net loss per share of Class A stock—basic and diluted |
$ | (0.19 | ) | |||||||||||||
Weighted average shares outstanding of class B stock—basic and diluted |
8,654,356 | |||||||||||||||
Net loss per share of Class B stock—basic and diluted |
$ | (0.19 | ) | |||||||||||||
Pro forma weighted average shares outstanding of Class A common stock- basic and diluted (3) |
78,124,000 | 46,897,456 | ||||||||||||||
Net loss per share of Class A common stock—basic and diluted |
$ | (0.39 | ) | $ | (0.51 | ) |
(1) | No cash dividends were declared during the periods presented. |
(2) | Book value per share = Total equity attributable to stockholders/weighted average shares outstanding. |
(3) | Weighted average outstanding shares of common stock assume outstanding preferred shares of Warehouse have been converted to common stock. |
(4) | There is no pro forma share equivalent calculation as the class V-1 common stock and class V-3 common stock are non-economic. |
• | The Business Combination Proposal |
• | The Domestication Proposal— |
• | The Organizational Documents Proposal— Annex B Annex C |
• | The Governance Proposals non-binding advisory basis, separate proposals with respect to certain governance provisions in the Proposed Charter in order to give holders of SVF 3’s ordinary shares the opportunity to present their separate views on important corporate governance procedures (Proposal No. 4); |
• | The Director Election Proposal |
• | The Merger Issuance Proposal— |
• | The Subscription Agreements Proposal— |
• | The Incentive Compensation Plan Proposal— |
• | The ESPP Proposal— |
• | The Adjournment Proposal— |
• | The Articles provide that SVF 3 renounce its interest or expectancy in any corporate opportunity about which any director or officer of SVF 3 acquires knowledge unless such opportunity is expressly offered to such person solely in his or her capacity as SVF 3’s director or officer and such opportunity is one that the Company is able to complete on a reasonable basis. Certain of SVF 3’s officers and directors have, and any of them in the future may have additional, fiduciary or contractual obligations to other entities that are sponsored by affiliates of the Sponsor. SVF 3 does not believe, however, that such pre-existing fiduciary duties or contractual obligations of its officers and directors materially affected its search for an acquisition target. |
• | If the Business Combination with Symbotic or another business combination is not consummated within the Completion Window, SVF 3 will cease all operations except for the purpose of winding up, redeeming 100% of the outstanding Public Shares for cash and, subject to the approval of its remaining shareholders and the SVF 3 Board, dissolving and liquidating. In such event, the 8,000,000 Founder Shares held by SVF 3’s Initial Shareholders which were acquired for an aggregate purchase price of $25,000 prior to the SVF 3 IPO, would be worthless because SVF 3’s Initial Shareholders are not entitled to participate in any redemption or distribution with respect to such shares. Such Founder Shares had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date. Certain Founder Shares are subject to certain performance-based vesting provisions as described under “ The Business Combination —Other Agreements—Sponsor Letter Agreement. |
• | Simultaneously with the closing of the Initial Public Offering, SVF 3 consummated a private sale of 1,040,000 Class A ordinary shares (the “Private Placement”) at a price of $10.00 per Private Placement Share to our Sponsor, generating gross proceeds of approximately $10,400,000. If we do not consummate a business combination transaction within the Completion Window, then the proceeds from the sale of the Private Placement Shares will be part of the liquidating distribution to the Public Shareholders and the Private Placement Shares held by the Sponsor will be worthless. |
• | If SVF 3 is unable to complete a business combination within the Completion Window, its officers will be personally liable under certain circumstances described herein to ensure that the proceeds in the Trust Account are not reduced by the claims of target businesses or claims of vendors or other entities that are owed money by SVF 3 for services rendered or contracted for or products sold to SVF 3. If SVF 3 consummates a business combination, on the other hand, SVF 3 will be liable for all such claims. |
• | SVF 3’s directors and officers and their affiliates are entitled to reimbursement of out-of-pocket expenses incurred by them in connection with certain activities on SVF 3’s behalf, such as identifying and investigating possible business targets and business combinations. However, if SVF 3 fails to consummate a business combination within the Completion Window, they will not have any claim against the Trust Account for such reimbursement. Accordingly, SVF 3 may not be able to reimburse these expenses if the Business Combination or another business combination is not consummated within the Completion Window. |
• | The continued indemnification of current directors and officers and the continuation of directors’ and officers’ liability insurance. |
• | Our Sponsor, officers and directors collectively (including entities controlled by officers and directors) have made an aggregate investment of $11,550,000, or $1.26 per SVF 3 ordinary share (including the 8,000,000 Founder Shares, the 1,040,000 Private Placement Shares and the purchase of 112,500 Public Shares in connection with the SVF 3 IPO). Such shares had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date (of which 150,000 Founder Shares and 112,500 Public Shares were held by our directors and officers, which had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date). As a result of the significantly lower investment per share of our Sponsor, directors and officers as compared with the investment per share of our Public Shareholders, a transaction which results in an increase in the value of the investment of our Sponsor, directors and officers may result in a decrease in the value of the investment of our Public Shareholders. These interests could, in theory, incentivize our Sponsor, directors and officers to complete a business combination with a less favorable target company or on terms less favorable to stockholders rather than liquidate. |
• | There will be no liquidating distributions from our Trust Account with respect to the Founder Shares or the Private Placement Shares if we fail to complete a business combination within the Completion Window. Our Sponsor purchased the Founder Shares prior to the SVF 3 IPO for an aggregate purchase |
price of $25,000, and transferred 50,000 Founder Shares to each of Michael Carpenter, Michael Tobin and Cristiana Falcone for aggregate consideration of $300. |
• | Following the Closing, the Sponsor would be entitled to the repayment of any Working Capital Loans and advances that have been made to SVF 3 and remain outstanding. On August 10, 2021, the Sponsor agreed to loan SVF 3 $2.0 million as a Working Capital Loan. On November 9, 2021, the Sponsor and SVF 3 agreed to amend this loan to increase the commitment by $1.0 million. If SVF 3 does not complete an initial business combination within the Completion Window, SVF 3 may use a portion of its working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Up to $2,000,000 of such loans may be convertible into Class A ordinary shares of the post-business combination entity at a price of $10.00 per share at the option of the lender. |
• | Our Initial Shareholders and our directors and officers have agreed to waive their rights to liquidating distributions from the Trust Account with respect to their Founders Shares and will not have rights to liquidating distributions with respect to their Private Placement Shares if SVF 3 fails to complete a business combination within the Completion Window. |
• | As of October 31, 2021, Walmart, Symbotic’s largest customer, holds a majority of the outstanding equity interests of Flipkart Internet Pvt Ltd, a company in which SoftBank Vision Fund II, an affiliate of SBIA, holds a minority interest. |
• | via the Internet; |
• | by telephone; |
• | by submitting a properly executed proxy card or voting instruction form by mail; or |
• | electronically at the Extraordinary General Meeting. |
• | you may send another proxy card with a later date; |
• | you may notify SVF 3’s Secretary in writing before the Extraordinary General Meeting that you have revoked your proxy; or |
• | you may attend the Extraordinary General Meeting and vote electronically by visiting https://www.cstproxy.com/svfc/2022 |
• | Arrangements to protect such investors or holders against potential loss in value of their shares, including the granting of put options; |
• | With Warehouse’s consent, the transfer to such investors or holders of shares owned by the Sponsor for nominal value; |
• | Agreements pursuant to which Sponsor, Warehouse or any of their respective affiliates would purchase publicly-held shares from such holders; |
• | Agreements with third parties pursuant to which Sponsor, Warehouse or any of their respective affiliates would borrow funds to make purchases of publicly-held shares for their own account; and |
• | Agreements with third parties pursuant to which the third parties would purchase publicly-held shares, which would permit Sponsor, Warehouse or any of their respective affiliates to purchase such shares from the third parties. |
• | Prominence, Predictability, and Flexibility of Delaware Law |
accommodate changing legal and business needs and is more comprehensive, widely used and interpreted than other state corporate laws. This favorable corporate and regulatory environment is attractive to businesses such as ours. Based on publicly available data, over half of publicly-traded corporations in the United States and over 67% of all Fortune 500 companies are incorporated in Delaware. |
• | Well-Established Principles of Corporate Governance |
• | Increased Ability to Attract and Retain Qualified Directors |
Delaware |
Cayman Islands | |||
Stockholder/Shareholder Approval of Business Combinations |
Mergers generally require approval of a majority of the voting power of all outstanding shares. | Mergers require a special resolution, and any other authorization as may be specified in the relevant articles of association. Parties holding certain security interests in the constituent companies must also consent. | ||
Mergers in which less than 20% of the surviving corporation’s stock is issued generally do not require approval by stockholders of the surviving corporation. | All mergers (other than parent/subsidiary mergers) require shareholder approval—there is no exception for smaller mergers. | |||
Mergers in which one corporation owns 90% or more of a second corporation may be completed without the vote of the second corporation’s board of directors or stockholders. | Where a bidder has acquired 90% or more of the shares in a Cayman Islands company, it can compel the acquisition of the shares of the remaining shareholders and thereby become the sole shareholder. A Cayman Islands company may also be acquired through a “scheme of arrangement” sanctioned by a Cayman Islands court and approved by 50% + 1 in number and 75% in value of shareholders in attendance and voting at a general meeting. | |||
Stockholder/Shareholder Votes for Routine Matters |
Generally, approval of routine corporate matters that are put to a stockholder vote require the affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter. | Under the Cayman Islands Companies Act and the Articles, routine corporate matters may be approved by an ordinary resolution (being a resolution adopted by the affirmative vote of at least a majority of the votes cast by the shareholders present in person or represented by proxy at a general meeting and entitled to vote on such matter). |
Delaware |
Cayman Islands | |||
Appraisal Rights |
Generally a stockholder of a publicly traded corporation does not have appraisal rights in connection with a merger where the consideration is composed of shares and cash in lieu of fractional shares only, but generally has appraisal rights otherwise. | Minority shareholders that dissent from a Cayman Islands statutory merger are entitled to be paid the fair market value of their shares, which if necessary may ultimately be determined by the court. | ||
Inspection of Books and Records |
Any stockholder may inspect the corporation’s books and records for a proper purpose during the usual hours for business. | Shareholders generally do not have any rights to inspect or obtain copies of the register of shareholders or other corporate records of a company. | ||
Stockholder/Shareholder Lawsuits |
A stockholder may bring a derivative suit subject to procedural requirements (including adopting Delaware as the exclusive forum ). |
In the Cayman Islands, the decision to institute proceedings on behalf of a company is generally taken by the company’s board of directors. A shareholder may be entitled to bring a derivative action on behalf of the company, but only in certain limited circumstances. | ||
Fiduciary Duties of Directors |
Directors must exercise a duty of care and duty of loyalty and good faith to the company and its stockholders. | A director owes fiduciary duties to a company, including to exercise loyalty, honesty and good faith to the company as a whole. In addition to fiduciary duties, directors owe a duty of care, diligence and skill. Such duties are owed to the company but may be owed direct to creditors or shareholders in certain limited circumstances | ||
Indemnification of Directors and Officers |
A corporation is generally permitted to indemnify its directors and officers acting in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation. | A Cayman Islands exempted company generally may indemnify its directors or officers except with regard to fraud or willful default. | ||
Limited Liability of Directors |
Permits limiting or eliminating the monetary liability of a director to a corporation or its stockholders, except with regard to breaches of duty of loyalty, intentional misconduct, unlawful stock repurchases or dividends, or improper personal benefit. | Liability of directors may be limited or eliminated, except with regard to their own fraud or willful default. |
SVF 3’s Articles |
Proposed Organizational Documents | |||
Authorized Shares (Proposal 4A) |
Our Articles authorized 221,000,000 shares, consisting of (a) 200,000,000 Class A ordinary shares, (b) 20,000,000 Class B ordinary shares and (c) 1,000,000 preference shares. | The Post-Combination Company will be authorized to issue 4,508,000,000 shares of capital stock, each with a par value of $0.0001 per share, consisting of (a) 4,458,000,000 shares of common stock, of which (i) 3,000,000,000 shares shall be designated Class A common stock, (ii) 1,000,000,000 shares shall be designated Class V-1 common stock, (iii) 450,000,000 shares shall be designated Class V-3 common stock and (iv) 8,000,000 shares shall be designated Class B common stock and (b) 50,000,000 shares of preferred stock. | ||
Amendments (Proposal 4B) |
Our Articles provide that the provisions of the Articles may be amended at any time and from time to time by special resolution in whole or in part. | The following provisions in the Proposed Charter may be amended, altered, repealed or rescinded, in whole or in part, or any provision inconsistent therewith or herewith may be adopted, only by the affirmative vote of the holders of at least two-thirds of the total voting power of all the then-outstanding shares of stock of the Post-Combination Company entitled to vote thereon, voting together as a single class: (a) Section 4.03(b) relating to preferred stock, (b) Section 4.04 relating to paired common stock, (c) Article V relating to conversion, (d) Article VI relating to incorporator and initial directors, (e) Article VII relating to the board of directors, (f) Article VIII relating to stockholders, (g) Article IX relating to liability, (h) Article X relating to indemnification, (i) Article XI relating to business combinations, (j) Article XII relating to forum selection, (k) Article XIII relating to corporate opportunity and (l) Article XIV relating to amendments. |
SVF 3’s Articles |
Proposed Organizational Documents | |||
For any other amendment, the Proposed Charter applies Delaware law, which allows an amendment to a charter generally with the affirmative vote of a majority of the outstanding shares of voting stock entitled to vote thereon, voting together as a single class. | ||||
Director Election, Vacancies and Removal (Proposal 4C) |
Our Articles provide that, prior to the closing of a business combination, holders of the Class B ordinary shares have the exclusive right to elect any director at an annual general meeting and holders of Class A ordinary shares have no right to vote on the election of any director. Following the closing of a business combination, directors may be elected by ordinary resolution. Our Articles provide that newly-created directorships or any vacancy on the Board may be filled solely and exclusively by a majority vote of the remaining directors then in office, even if less than a quorum. Prior to the closing of a business combination, holders of the Class B ordinary shares have the exclusive right to remove any director and holders of Class A ordinary shares have no right to vote on the removal of any director. Following the closing of a business combination, directors may be removed by ordinary resolution. | Directors shall be elected by a majority of the votes cast by holders of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors, provided that if, as of the 10th day preceding the date the Post-Combination Company first mails its notice of meeting for such meeting to the stockholders, the number of nominees exceeds the number of directors to be elected, the directors shall be elected by the vote of a plurality of the votes cast. Subject to the special rights of the holders of one or more outstanding series of preferred stock to elect directors, the board of directors or any individual director may be removed from office at any time, with or without cause, but only by the affirmative vote of the holders of at least two-thirds of the voting power of all of the then-outstanding shares of voting stock of the Post-Combination Company entitled to vote at an election of directors.Subject to the special rights of the holders of one or more outstanding series of preferred stock to elect directors, except as otherwise provided by law, any vacancies on the board of directors resulting from death, resignation, disqualification, retirement, removal or other causes and any newly created directorships resulting from any increase in the number of directors shall be filled exclusively by the affirmative vote of a majority of the directors then in office, even though less than a quorum, or by a sole remaining director (other than any directors elected by the separate vote of one or more outstanding series of Preferred Stock), and shall not be filled by the stockholders. | ||
DGCL Section 203 and Business Combinations (Proposal 4D) |
N/A | Our Proposed Organizational Documents provide that we are not subject to Section 203 of the DGCL. |
SVF 3’s Articles |
Proposed Organizational Documents | |||
Forum Selection (Proposal 4E) |
Our Articles do not contain an exclusive forum provision. | The Proposed Charter provides that (i) the Delaware Court of Chancery, or if such court does not have subject matter jurisdiction, another state or federal court located within the state of Delaware will be the exclusive forum for internal or intra-corporate claims or claims governed by the internal affairs doctrine of Delaware (or the federal district court for the District of Delaware if no court within Delaware has jurisdiction) and (ii) the federal district court for the District of Delaware will be the exclusive forum for claims under the Securities Act. | ||
Voting Rights (Proposal 4F) |
Our Articles generally provide that each holder of record of Class A ordinary shares and Class B ordinary shares shall be entitled to one vote per share on all matters which such shareholders are entitled to vote. | Each holder of Class A common stock or Class B common stock shall be entitled to one vote for each share of Class A common stock or Class B common stock, respectively, held of record by such holder. Each holder of Class V-1 common stock shall be entitled to one vote for each share of Class V-1 common stock held of record by such holder.Each holder of Class V-3 common stock shall be entitled to three votes for each share of Class V-3 common stock held of record by such holder. | ||
Dividends and Distributions (Proposal 4G) |
Our Articles provide that all dividends and other distributions shall be paid according to the amounts paid up on the shares, but if and for so long as nothing is paid up on any shares, dividends may be paid according to the par value of the shares. | Subject to the rights of the holders of preferred stock, the holders of the Post-Combination Company’s Class A common stock and Class B common stock, as such, shall be entitled to the payment of dividends and other distributions of cash, stock or property on the Class A common stock and Class B common stock, respectively, when, as and if declared by the board of directors in accordance with law. Except with respect to certain stock dividends, dividends of cash or property may not be declared or paid on shares of the Post-Combination Company’s Class V-1 common stock or Class V-3 common stock. | ||
Removal of Blank Check Company Provisions (Proposal 4H) |
Our Articles contain various provisions applicable only to blank check companies. | The Proposed Organizational Documents will not include these provisions applicable only to blank check companies, including the provisions requiring that SVF 3 have net tangible assets of at least $5,000,001 immediately prior to, or upon such consummation of, a business combination. |
Name |
Age |
Position | ||||
Ioannis Pipilis |
45 | Chairman of the Board and Chief Executive Officer | ||||
Navneet Govil |
50 | Director and Chief Financial Officer | ||||
Michael Carpenter |
74 | Director | ||||
Michael Tobin |
58 | Director | ||||
Cristiana Falcone |
49 | Director |
• | meeting with our independent registered public accounting firm regarding, among other issues, audits, and adequacy of our accounting and control systems; |
• | monitoring the independence of the independent registered public accounting firm; |
• | verifying the rotation of the lead (or coordinating) audit partner having primary responsibility for the audit and the audit partner responsible for reviewing the audit as required by law; |
• | inquiring and discussing with management our compliance with applicable laws and regulations; |
• | pre-approving all audit services and permitted non-audit services to be performed by our independent registered public accounting firm, including the fees and terms of the services to be performed; |
• | appointing or replacing the independent registered public accounting firm; |
• | determining the compensation and oversight of the work of the independent registered public accounting firm (including resolution of disagreements between management and the independent auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or related work; |
• | establishing procedures for the receipt, retention and treatment of complaints received by us regarding accounting, internal accounting controls or reports which raise material issues regarding our financial statements or accounting policies; |
• | monitoring compliance on a quarterly basis with the terms of the SVF 3 IPO and, if any noncompliance is identified, immediately taking all action necessary to rectify such noncompliance or otherwise causing compliance with the terms of the SVF 3 IPO; and |
• | reviewing and approving all payments made to our existing shareholders, executive officers or directors and their respective affiliates. Any payments made to members of our audit committee will be reviewed and approved by our board of directors, with the interested director or directors abstaining from such review and approval. |
• | should have demonstrated notable or significant achievements in business, education or public service; |
• | should possess the requisite intelligence, education and experience to make a significant contribution to the board of directors and bring a range of skills, diverse perspectives and backgrounds to its deliberations; and |
• | should have the highest ethical standards, a strong sense of professionalism and intense dedication to serving the interests of the shareholders. |
• | reviewing and approving on an annual basis the corporate goals and objectives relevant to our Chief Executive Officer’s compensation, evaluating our Chief Executive Officer’s performance in light of such goals and objectives and determining and approving the remuneration (if any) of our Chief Executive Officer based on such evaluation; |
• | reviewing and approving the compensation of all of our other Section 16 executive officers; reviewing our executive compensation policies and plans; |
• | implementing and administering our incentive compensation equity-based remuneration plans; |
• | assisting management in complying with our proxy statement and annual report disclosure requirements; |
• | approving all special perquisites, special cash payments and other special compensation and benefit arrangements for our executive officers and employees; |
• | producing a report on executive compensation to be included in our annual proxy statement; and |
• | reviewing, evaluating and recommending changes, if appropriate, to the remuneration for directors. |
• | duty to act in good faith in what the director or officer believes to be in the best interests of the company as a whole; |
• | duty to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose; |
• | directors should not improperly fetter the exercise of future discretion; |
• | duty not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests; and |
• | duty to exercise independent judgment. |
Individual |
Entity |
Entity’s Business |
Affiliation | |||
Ioannis Pipilis |
Tier Mobility SE | Transportation | Supervisory Board Member; Director | |||
Keli Network Inc. | Digital Media | Director | ||||
Zeus Advisory Limited | Holding Company | Director | ||||
Enpal GmbH | Sustainability/Consumer | Advisory Board Member | ||||
Navneet Govil |
Zenarate | Coaching | Adviser | |||
RIDGE-LANE Limited Partners | Venture Development | Board Member of the Société L’Avenir | ||||
SB Investment Advisers (US) Inc. | Advisor entity | Director and CFO | ||||
SVF Investment Corp. | Special Purpose Acquisition Company | Director and CFO | ||||
SVF Investment Corp. 2 | Special Purpose Acquisition Company | Director and CFO | ||||
ElevateBio, LLC | Healthcare/Biotechnology | Director | ||||
Michael Carpenter |
AutoWeb, Inc. | Media and Marketing Services | Director | |||
Rewards Network | Rewards and Marketing | Director | ||||
Client 4 Life Group LLC | Software Company | Director | ||||
Validity Finance LLC | Litigation Finance | Director | ||||
Law Finance Group LLC | Litigation Finance | Chairman | ||||
Towerbrook Capital Partners | Private Equity | Senior Advisory Board | ||||
Southgate Holdings LLC | Investment Company | Chairman | ||||
Year Up, South Florida | Philanthropy | Chairman | ||||
Protego Trust Bank N.A. | Bank | Director | ||||
First Citizens Bancshares, Inc. | Bank | Director |
Individual |
Entity |
Entity’s Business |
Affiliation | |||
Battea Class Action Services LLC | Legal Services | Director | ||||
MDL Partners | Office Services | Partner | ||||
Michael Tobin |
Tobin Ventures Limited | Trading Company | Managing Director | |||
Copperfield Corporate Ltd | Property Portfolio and Trading Company | Managing Director | ||||
BIGBLU Broadband plc | AIM Listed Broadband Company | Chairman of the board | ||||
Audioboom plc | AIM Listed Podcast Platform | Chairman of the board | ||||
Pulsant Data Systems Ltd | Managed Technology Service Provider | Chairman of the board | ||||
Ultraleap | Ultrasound Haptic Innovation Company | Chairman of the board | ||||
North C Data Centres | Data Center Company | Chairman of the board | ||||
EdgeConnex | Data Center Company | Chairman of the Board | ||||
Sungard | Business Continuity Services Provider | Non Executive Director | ||||
Scale-up Group |
Providing Finance and Advice to Start-ups |
Non Executive Director | ||||
CC35 Management Company Ltd | Property Management Company | Non Executive Director | ||||
Wonderland Restaurants Ltd | Restaurant / Hospitality Company | Non Executive Director | ||||
Everarc Plc | Listed Acquisition Company | Non Executive Director | ||||
Crystal Peak Acquisition plc | Special Purpose Acquisition Company | Chairman | ||||
Expereo | Network Company | Chairman | ||||
Patchwork Health Ltd. | Healthtech Company | Chairman | ||||
Idalina Limited | Non-trading Investment Entity | Director | ||||
Cristiana Falcone |
TIM S.p.A. | Telecommunications | Director | |||
Revlon, Inc. | Beauty | Director |
• | Our executive officers and directors are not required to, and will not, commit their full time to our affairs, which may result in a conflict of interest in allocating their time between our operations and our search for a business combination and their other businesses. We do not intend to have any full-time employees prior to the completion of our initial business combination. Each of our executive officers is engaged in several other business endeavors for which he may be entitled to substantial compensation, and our executive officers are not obligated to contribute any specific number of hours per week to our affairs. |
• | Our Sponsor subscribed for Founder Shares prior to the date of the prospectus relating to SVF 3’s IPO and purchased Private Placement Shares in a transaction that closed simultaneously with the closing of the SVF 3 IPO. |
• | We have entered into the Forward Purchase Agreement with the Forward Purchase Investor who is an affiliate of our Sponsor. |
• | Our Sponsor and each member of our management team have entered into an agreement with us, pursuant to which they have agreed to waive their redemption rights with respect to any Founder Shares and Class A ordinary shares held by them (including the 112,500 Public Shares currently held by our directors and officers) in connection with (i) the completion of our initial business combination, and (ii) a shareholder vote to approve an amendment to the Articles (A) that would modify the substance or timing of our obligation to provide holders of our Class A ordinary shares the right to have their shares redeemed in connection with our initial business combination or to redeem 100% of our public shares if we do not complete our initial business combination within the Completion Window or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares. Additionally, our Sponsor has agreed to waive its rights to liquidating distributions from the Trust Account with respect to its Founder Shares and will not have rights to liquidating distributions with respect to its Private Placement Shares if we fail to complete our initial business combination within the prescribed time frame. If we do not complete our initial business combination within the prescribed time frame, the Founder Shares and Private Placement Shares will become worthless. Except as described herein, our Sponsor and our directors and executive officers have agreed not to transfer, assign or sell any of their Founder Shares and Private Placement Shares and the Forward Purchase Investor have agreed not to transfer, assign or sell any of their Forward Purchase Shares until the earliest of (A) one year after the completion of our initial business combination and (B) subsequent to our initial business combination, (x) if the closing price of our Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share subdivisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination, or (y) the date on which we complete a liquidation, merger, share exchange or other similar transaction that results in all of our Public Shareholders having the right to exchange their ordinary shares for cash, securities or other property. Because each of our executive officers and directors owns ordinary shares directly or indirectly, they may have a conflict of interest in determining whether a particular target business is an appropriate business with which to effectuate our initial business combination. |
• | Our officers and directors may have a conflict of interest with respect to evaluating a particular business combination if the retention or resignation of any such officers and directors is included by a target business as a condition to any agreement with respect to our initial business combination. In addition, our Sponsor, officers and directors may sponsor, form or participate in other blank check companies similar to ours during the period in which we are seeking an initial business combination. Any such companies may present additional conflicts of interest in pursuing an acquisition target, particularly in the event there is overlap among investment mandates. |
(in thousands, except share and per share data) |
For the Year Ended December 31, 2021 |
|||
Statement of Operations Data: |
||||
Loss from operations |
$ | (6,492,183 | ) | |
Other income, net |
16,430 | |||
Net loss |
(6,475,753 | ) | ||
Basic and diluted weighted average shares outstanding of Class A ordinary shares subject to possible redemption |
25,950,685 | |||
Basic and diluted net loss per ordinary share, Class A ordinary shares subject to possible to possible redemption |
(0.19 | ) | ||
Basic and diluted weighted average shares outstanding of non-redeemable ordinary shares(1) |
8,654,356 | |||
Basic and diluted net loss per ordinary share, non-redeemable ordinary shares |
(0.19 | ) | ||
Statement of Cash Flows Data: |
||||
Net cash used in operating activities |
(3,382,804 | ) | ||
Net cash used in investing activities |
(320,000,000 | ) | ||
Net cash provided by financing activities |
324,195,688 |
(1) | On January 29, 2021, SVF 3 effected a share dividend of 12,125,000 Class B ordinary shares, and on February 3 and February 26, 2021, the Sponsor surrendered 5,000,000 and 2,000,000 Class B ordinary shares for no consideration, respectively. The share dividend and share surrender resulted in an aggregate of 8,000,000 Class B ordinary shares outstanding. All shares and associated amounts have been retroactively restated to reflect the share capitalization. |
(in thousands) | As of December 31, 2021 |
|||
Balance Sheet Data: |
||||
Total assets |
$ | 321,708,203 | ||
Total liabilities |
15,249,443 | |||
Total shareholders’ equity (deficit) |
(13,541,240 | ) |
• | may significantly dilute the equity interest of investors in the SVF 3 IPO, which dilution would increase if the anti-dilution provisions in the Founder Shares resulted in the issuance of Class A ordinary shares on a greater than one-to-one |
• | may subordinate the rights of holders of Class A ordinary shares if preference shares are issued with rights senior to those afforded our Class A ordinary shares; |
• | could cause a change in control if a substantial number of our Class A ordinary shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors; |
• | may have the effect of delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control of us; and |
• | may adversely affect prevailing market prices for our Class A ordinary shares. |
• | default and foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations; |
• | acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant; |
• | our immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand; |
• | our inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security is outstanding; |
• | our inability to pay dividends on our Class A ordinary shares; |
• | using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our Class A ordinary shares if declared, expenses, capital expenditures, acquisitions and other general corporate purposes; |
• | limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate; |
• | increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and |
• | limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less debt. |
• | each person who is, or is expected to be, the beneficial owner of more than 5% of the outstanding ordinary shares/common stock of SVF 3 or the Post-Combination Company, as applicable; |
• | each of SVF 3’s current directors and named executive officers; |
• | each person who will become a director or named executive officer of the Post-Combination Company; and |
• | all directors and officers of SVF 3, as a group, and of the Post-Combination Company, as a group. |
Before the Business Combination |
After the Business Combination |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
Class B (13) |
Assuming No Redemptions |
Assuming Intermediate Redemptions |
Assuming Maximum Redemptions |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name of Beneficial Owner |
Number of Shares Beneficially Owned |
Percentage of Class |
Number of Shares Beneficially Owned |
Percentage of Class |
Number of Shares of Class A Common Stock Beneficially Owned |
Percentage of Class |
Number of Shares Class V-1 Common Stock Beneficially Owned |
Percentage of Class |
Number of Shares Class V-3 Common Stock Beneficially Owned |
Percentage of Class |
Number of Shares of Class A Common Stock Beneficially Owned |
Percentage of Class |
Number of Shares Class V-1 Common Stock Beneficially Owned |
Percentage of Class |
Number of Shares Class V-3 Common Stock Beneficially Owned |
Percentage of Class |
Number of Shares of Class A Common Stock Beneficially Owned |
Percentage of Class |
Number of Shares Class V-1 Common Stock Beneficially Owned |
Percentage of Class |
Number of Shares Class V-3 Common Stock Beneficially Owned |
Percentage of Class |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal Shareholders: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SVF Sponsor III (DE) LLC (our Sponsor) (1) |
1,040,000 | 3.1 | % | 7,850,000 | 98.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SVF II SPAC Investment 3 (DE) LLC (2) |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Directors and Named Executive Officers of SVF 3: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ioannis Pipilis |
50,000 | * | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Navneet Govil |
62,500 | * | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michael Carpenter |
— | — | 50,000 | * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michael Tobin |
— | — | 50,000 | * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cristiana Falcone |
— | — | 50,000 | * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Directors and executive officers of SVF 3 as a group (5 individuals) |
112,500 | * | 150,000 | 1.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Five Percent Holders: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Saba Capital Management, L.P. and affiliates (3) |
1,994,419 | 6.0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SB Management Limited and affiliates (4) |
2,000,000 | 6.1 | % | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wellington Management Group LLP (5) |
2,405,272 | 7.3 | % | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Richard B. Cohen (6) |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
David A. Ladensohn, as trustee of certain Cohen family trusts (7) |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Janet L. Cohen, as trustee of the RBC Millennium Trust (8) |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The RBC 2021 4 Year GRAT (9) |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The RBC Millennium Trust (10) |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Walmart Inc. (11) |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tony Affuso (12) |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Directors and Named Executive Officers of the Post-Combination Company |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Richard B. Cohen (6) |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollin Ford |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Todd Krasnow |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vikas J. Parekh |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Merline Saintil |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michael Rhodin |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Thomas Ernst |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michael Dunn |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Directors and executive officers of the Post-Combination Company as a group (8 individuals) |
— | — | — | — |
* | Less than one percent. |
(1) | Our Sponsor, SVF Sponsor III (DE) LLC, is a wholly-owned subsidiary of SB Investment Advisers (US) Inc. (“SBIA US”). SBIA US is a Delaware corporation and an investment adviser registered with the SEC under the Investment Advisers Act of 1940, as amended. Sponsor is exclusively responsible for making all decisions related to the acquisition, structuring, financing, and disposal of Sponsor’s investments. Daniel Elefant and Jonathan Duckles are the directors of Sponsor. Accordingly, each of the foregoing entities and individuals may be deemed to share beneficial ownership of the securities held of record by Sponsor. Each of them disclaims any such beneficial ownership. The registered address of Sponsor is c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808. The business address for SBIA US and SVF Investment Corp. 3 is 1 Circle Star Way, San Carlos, California 94070. |
(2) | SVF II SPAC Investment 3 (DE) LLC (“SVF II”), the Forward Purchase Investor under the Forward Purchase Agreement, is a wholly-owned subsidiary of SVF II Holdings (DE) LLC. SoftBank Vision Fund II-2 L.P. is the managing member of SVF II Aggregator (Jersey) L.P., which is the sole member of SVF II Holdings (DE) LLC, which is the sole member of SVF II. SB Global Advisers Limited (“SBGA”) has been appointed as manager and is responsible for making all decisions related to the acquisition, structuring, financing and disposal of SoftBank Vision Fund II-2 L.P.’s investments, including as held by SVF II. Spencer Collins, Rajeev Misra, and Neil Hadley are the directors of SBGA. As a result of these relationships, each of these entities and individuals may be deemed to share beneficial ownership of the securities held of record by SVF II. Each of them disclaims any such beneficial ownership. The registered address for each of SVF II and SVF II Holdings (DE) LLC is c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808. The registered address of SoftBank Vision Fund II-2 L.P. and SVF II Aggregator (Jersey) L.P. is c/o Crestbridge Limited, 47 Esplanade, St. Helier, Jersey, JE1 0BD. The business address of SB Global Advisers Limited is 69 Grosvenor Street, London W1K 3JP, England, United Kingdom. |
(3) | Based solely upon information contained in the Schedule 13G/A jointly filed with the SEC on February 14, 2022 by Saba Capital Management, L.P., Boaz R. Weinstein and Saba Capital Management GP, LLC. The address of the business office of each of the foregoing reporting persons is 405 Lexington Avenue, 58 th Floor, New York, New York 10174. |
(4) | Based solely upon information contained in the Schedule 13G jointly filed with the SEC on February 14, 2022 by SB Management Limited and SoftBank Group Corp. The address of the business office of SB Management Limited is 9th Floor, Al Sila Tower, Adgm Square, Al Maryah Island, Abu Dhabi, C0 NA. The address of the business office of SoftBank Group Corp. is 1-7-1, Kaigan, Minato-kuTokyo 105-7537 Japan. |
(5) | Based solely upon information contained in the Schedule 13G jointly filed with the SEC on February 4, 2022 by Wellington Management Group LLP, Wellington Group Holdings LLP, Wellington Investment Advisors Holdings LLP and Wellington Management Company LLP. The address of the business office of each of the foregoing reporting persons is c/o Wellington Management Company LLP, 280 Congress Street, Boston, MA 02210. |
(6) | Richard B. Cohen may be deemed to beneficially own Class V-3 common stock owned of record by (A) the RBC 2021 4 Year GRAT, for which he serves as sole trustee, and (B) RJJRP Holdings, Inc., of which he is the President and Chief Executive Officer. Mr. Cohen disclaims beneficial ownership of such securities except to the extent of his pecuniary interest therein. The address of Mr. Cohen is c/o Symbotic, 200 Research Drive, Wilmington, MA 01887. |
(7) | David A. Ladensohn is a long-time friend of Richard B. Cohen and may be deemed to beneficially own Class V-3 common stock owned of record by (A) the RBC Millennium Trust, for which he serves as co-trustee with Janet L. Cohen and may be deemed to have shared voting and investment power, (B) the Jill Cohen Mill Trust, for which he serves as co-trustee with Janet L. Cohen and may be deemed to have shared voting and investment power, (C) the 2014 QSST F/B/O Rachel Cohen Kanter, for which he serves as sole trustee, and (D) the 2014 QSST F/B/O Perry Cohen, for which he serves as sole trustee. Mr. Ladensohn disclaims beneficial ownership of such securities except to the extent of his pecuniary interest therein. The address of Mr. Ladensohn is c/o Symbotic, 200 Research Drive, Wilmington, MA 01887. |
(8) | Janet L. Cohen is the wife of Richard B. Cohen and may be deemed to beneficially own Class V-3 common stock owned of record by (A) the RBC Millennium Trust, for which she serves as co-trustee with David A. Ladensohn and may be deemed to have shared voting and investment power, and (B) the Jill Cohen Mill Trust, for which she serves as co-trustee with David A. Ladensohn and may be deemed to have shared voting and investment power. Ms. Cohen disclaims beneficial ownership of such securities except to the extent of her pecuniary interest therein. The address of Ms. Cohen is c/o Symbotic, 200 Research Drive, Wilmington, MA 01887. |
(9) | The address of the RBC 2021 4 Year GRAT is c/o Symbotic, 200 Research Drive, Wilmington, MA 01887. |
(10) | The address of the RBC Millennium Trust is c/o Symbotic, 200 Research Drive, Wilmington, MA 01887. |
(11) | The address of Walmart Inc. is 702 Southwest 8th Street, Bentonville, AR 72716. |
(12) | The address of Tony Affuso is c/o Symbotic, 200 Research Drive, Wilmington, MA 01887. |
(13) | Class B ordinary shares are referred to as “Founder Shares.” The Founder Shares will convert into Class A common stock of the Post-Combination Company in connection with the Business Combination on a one-for-one |
Distribution Centers |
E-Commerce Fulfillment | |||
Flow of Goods | Upstream >>>>>>>>>>>>>>>>>> Downstream | |||
Typical Function | Atomization and buffering between producers and next node |
Items selection Packing and shipping | ||
Typical Location | Rural, Suburban | Suburban, Urban | ||
Common Fulfillment Unit | Pallets, Cases | Items/Eaches | ||
Optimized for | Low cost per case | Speed of fulfillment & delivery | ||
Volume | High | Low to moderate | ||
SKU count/variety | Low to Moderate | High |
• | Labor Scarcity and Cost— |
• | Omni-Channel Strategies brick-and-mortar brick-and-mortar, e-commerce channel itself is more complex than traditional brick-and-mortar |
• | Growing Consumer Expectations and SKU Proliferation |
• | A.I.-Powered Software |
• | Atomizing e.g. pallets-to-cases cases-to-items). |
• | Randomizing |
• | Autonomous Movement two-dimensional plane and moves like a car that can make radius turns, our robots are comparatively fast, traveling up to 25 miles-per-hour (mph). Faster movement enhances throughput and efficiency by clearing aisles more quickly and allowing for more storage and retrieval transactions per hour compared to tray, shuttle or crane-based systems. Finally, our use of automation and software means our systems can approach true “lights-out” operation (100% up-time with zero human intervention). |
• | Original (Native) Package Handling |
• | End-to-End end-to-end |
• | System-of-Systems system-of-systems sub-system ever fails. In addition, our hardware and software systems are engineered for rapid serviceability utilizing field replaceable components wherever possible. |
• | Scalable Modularity |
install our systems in phases, allowing the existing warehouse facility to continue to operate while the transition to our systems is underway. Finally, we can easily reconfigure and expand our systems to accommodate SKU proliferation as our customers’ needs and strategies evolve. |
• | Palletized Inbound de-palletizing robots use state of the art vision technology and our proprietary end-of-arm end-of-arm |
• | Other Inbound |
• | Scan Tunnel non-conforming or damaged is rejected by the system. An associate will either repair the case before re-induction into the system or reject the damaged goods. |
• | Buffering Structure thirty-two-foot-tall 90-degree angle from the transfer deck. This gives us approximately 200,000 linear feet of storage in our average sized platform. The levels are connected vertically by a series of lifts. |
• | Lifts |
• | Symbots |
• | Outbound |
• | Palletizing AI-based software that enables us to palletize cases using two robotic arms on opposite sides of a pallet. These two robotic arms work together placing a case onto a pallet in less than three seconds. |
• Superior Product Throughput • High Density System & Storage |
|
• | No Compromise Retrofit |
install our systems in phases, allowing the warehouse facility to continue to operate while the transition to our system is underway. Finally, we can easily reconfigure and expand our systems to accommodate SKU proliferation as our customers’ needs and strategies evolve. |
• | Inventory Reduction & SKU Agility |
• | Fulfillment Accuracy |
• | System Resilience system-of-systems sub-system ever fail. In addition, our hardware and software systems are engineered for rapid serviceability utilizing field-replaceable components wherever possible. |
• | System Scalability |
• | Further penetrate existing customers’ operations |
• | Win additional customers in existing verticals |
• | Expand into new verticals non-food consumer packaged goods, auto parts, and third-party logistics verticals. Additionally, as we build out our refrigerated and frozen capabilities, we intend to expand to the refrigerated and frozen foods verticals. |
• | Expand product offerings e-commerce operations. We can also increase our appeal to pure-play e-commerce retailers. Because our Symbotic platform is designed to integrate such third-party applications, we also |
are exploring opportunities to expand our product suite through partnerships, investments in companies and acquisitions. Finally, we are exploring new business models, specifically by adding reverse logistics and warehousing-as-a-service |
• | Geographic Expansion |
• | A.I.–Enabled Software |
• | System Manager |
• | Storage & Retrieval Engine |
• | Real-Time Data Analytics Software |
• | Intelligent Autonomous Mobile Robots |
• | A.I.-Powered De-Palletizing RoboticSystems de-palletizing robotic end of arm tools, coupled with our A.I. and state-of-the-art de-palletize up to 1,800 cases and 200 SKU layers per hour. In the de-palletization process, we scan each case to create a digital model of every case, including, among other things, its size, stability, and density that enables our A.I. software to optimize storage, retrieval and palletizing for distribution to stores based upon an individual case’s characteristics. Our software also analyzes the structural integrity of a case during the de-palletization process to understand whether it needs to be rejected or repaired rather than inducted into the system to improve system performance and optimize inventory in the system. |
• | A.I.-Powered Palletizing Robotic Systems state-of-the-art in-store labor costs for our brick-and-mortar |
• | Expand the capabilities and improve our technology |
• | Expand system offerings |
new offerings in specific areas for which we do not have a solution, such as tailoring our platform to handle non-ambient foods. This will not only allow us to deepen our penetration within existing customers, but also grow our customer base in adjacent applications. |
Location |
~Size (sq. ft.) |
Lease Expiration |
Purpose | |||||
Wilmington, MA (Main) |
66,000 | May 2025 | Headquarters, R&D & Admin | |||||
Wilmington, MA |
125,000 | December 2025 | Innovation Center, Manufacturing & Testing | |||||
Montreal, QC |
48,000 | June 2026 | Canadian HQ & R&D | |||||
Montreal, QC |
41,000 | June 2026 | Manufacturing & Testing | |||||
Birmingham, AL |
30,000 | June 2022 | Inventory Management | |||||
Douglas, GA |
26,000 | December 2022 | Inventory Management |
Three Months Ended |
Year Ended |
|||||||||||||||||||
December 25, 2021 |
December 26, 2020 |
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Consolidated Statements of Operations Data: |
||||||||||||||||||||
Revenue |
$ | 77,064 | $ | 5,542 | $ | 251,913 | $ | 92,086 | $ | 100,123 | ||||||||||
Gross profit (loss) |
14,468 | (565 | ) | 10,447 | (18,930 | ) | (19,964 | ) | ||||||||||||
Operating loss |
(23,075 | ) | (26,186 | ) | (122,381 | ) | (110,377 | ) | (105,793 | ) | ||||||||||
Net loss |
(23,053 | ) | (26,203 | ) | (122,314 | ) | (109,521 | ) | (104,361 | ) | ||||||||||
Loss per unit attributable to Class A Units and Class C Units, basic and diluted |
$ | (4.88 | ) | $ | (5.36 | ) | $ | (24.16 | ) | $ | (21.64 | ) | $ | (20.16 | ) | |||||
Weighted average units used in computing loss per unit attributable to Class A Units and Class C Units, basic and diluted |
6,494,932 | 6,426,203 | 6,426,203 | 6,426,203 | 6,426,203 | |||||||||||||||
Consolidated Statements of Cash Flows Data: |
||||||||||||||||||||
Net cash and cash equivalents provided by / (used in) operating activities |
$ | 40,000 | $ | 45,890 | $ | 109,567 | $ | (124,307 | ) | $ | 17,185 | |||||||||
Net cash and cash equivalents used in investing activities |
(7,505 | ) | (1,199 | ) | (12,168 | ) | (5,059 | ) | (4,327 | ) | ||||||||||
Net cash and cash equivalents provided by financing activities |
173,796 | — | — | 100,000 | — |
December 25, 2021 |
September 25, 2021 |
September 26, 2020 |
||||||||||
(in thousands) | ||||||||||||
Consolidated Balance Sheet Data: |
||||||||||||
Total assets |
$ | 454,861 | $ | 280,535 | $ | 224,953 | ||||||
Total liabilities |
581,353 | 557,503 | 409,029 | |||||||||
Redeemable preferred and common units |
852,121 | 836,260 | 660,391 | |||||||||
Total members’ deficit |
(978,613 | ) | (1,113,228 | ) | (844,467 | ) |
For the Three Months Ended |
||||||||
December 25, 2021 |
December 26, 2020 |
|||||||
(in thousands) |
||||||||
Revenue: |
||||||||
Systems |
$ | 71,222 | $ | — | ||||
Software subscriptions |
975 | 624 | ||||||
Operation services |
4,867 | 4,918 | ||||||
|
|
|
|
|||||
Total revenue |
77,064 | 5,542 | ||||||
Cost of revenue: |
||||||||
Systems |
56,485 | 37 | ||||||
Software subscriptions |
810 | 791 | ||||||
Operation services |
5,301 | 5,279 | ||||||
|
|
|
|
|||||
Total cost of revenue |
62,596 | 6,107 | ||||||
|
|
|
|
|||||
Gross profit (loss) |
14,468 | (565 | ) | |||||
|
|
|
|
|||||
Operating expenses: |
||||||||
Research and development expenses |
22,184 | 14,452 | ||||||
Selling, general, and administrative expenses |
15,359 | 11,169 | ||||||
|
|
|
|
|||||
Total operating expenses |
37,543 | 25,621 | ||||||
|
|
|
|
|||||
Operating loss |
(23,075 | ) | (26,186 | ) | ||||
|
|
|
|
|||||
Other income/(expense), net |
22 | (17 | ) | |||||
|
|
|
|
|||||
Loss before income tax |
(23,053 | ) | (26,203 | ) | ||||
Income tax benefit (expense) |
— | — | ||||||
|
|
|
|
|||||
Net loss |
$ | (23,053 | ) | $ | (26,203 | ) | ||
|
|
|
|
For the Three Months Ended |
||||||||
December 25, 2021 |
December 26, 2020 |
|||||||
Revenue: |
||||||||
Systems |
92 | % | — | % | ||||
Software subscriptions |
1 | 11 | ||||||
Operation services |
6 | 89 | ||||||
|
|
|
|
|||||
Total revenue |
100 | 100 | ||||||
Cost of revenue: |
||||||||
Systems |
73 | 1 | ||||||
Software subscriptions |
1 | 14 | ||||||
Operation services |
7 | 95 | ||||||
|
|
|
|
|||||
Total cost of revenue |
81 | 110 | ||||||
|
|
|
|
|||||
Gross profit (loss) |
19 | (10 | ) | |||||
|
|
|
|
|||||
Operating expenses: |
||||||||
Research and development expenses |
29 | 261 | ||||||
Selling, general, and administrative expenses |
20 | 202 | ||||||
|
|
|
|
|||||
Total operating expenses |
49 | 462 | ||||||
|
|
|
|
|||||
Operating loss |
(30 | ) | (473 | ) | ||||
|
|
|
|
|||||
Other income/(expense), net |
— | — | ||||||
|
|
|
|
|||||
Loss before income tax |
(30 | ) | (473 | ) | ||||
Income tax benefit (expense) |
— | — | ||||||
|
|
|
|
|||||
Net loss |
(30 | )% | (473 | )% | ||||
|
|
|
|
* | Percentages are based on actual values. Totals may not sum due to rounding. |
For the Three Months Ended |
Change |
|||||||||||||||
December 25, 2021 |
December 26, 2020 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Systems |
$ | 71,222 | $ | — | $ | 71,222 | 100 | % | ||||||||
Software subscriptions |
975 | 624 | 351 | 56 | % | |||||||||||
Operation services |
4,867 | 4,918 | (51 | ) | (1 | )% | ||||||||||
|
|
|
|
|
|
|||||||||||
Total revenue |
$ | 77,064 | $ | 5,542 | $ | 71,522 | 1291 | % | ||||||||
|
|
|
|
|
|
For the Three Months Ended |
Change |
|||||||||||
December 25, 2021 |
December 26, 2020 |
Amount |
||||||||||
(in thousands) | ||||||||||||
Systems |
$ | 14,737 | $ | (37 | ) | $ | 14,774 | |||||
Software subscriptions |
165 | (167 | ) | 332 | ||||||||
Operation services |
(434 | ) | (361 | ) | (73 | ) | ||||||
|
|
|
|
|
|
|||||||
Total gross profit (loss) |
$ | 14,468 | $ | (565 | ) | $ | 15,033 | |||||
|
|
|
|
|
|
For the Three Months Ended |
Change |
|||||||||||||||
December 25, 2021 |
December 26, 2020 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Research and development |
$ | 22,184 | $ | 14,452 | $ | 7,732 | 54 | % | ||||||||
Percentage of total revenue |
29 | % | 261 | % |
Change |
||||
(in thousands) | ||||
Employee-related costs |
$ | 2,536 | ||
Prototype-related costs, allocated overhead expenses, and other |
5,196 | |||
|
|
|||
$ | 7,732 | |||
|
|
For the Three Months Ended |
Change |
|||||||||||||||
December 25, 2021 |
December 26, 2020 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Selling, general, and administrative |
$ | 15,359 | $ | 11,169 | $ | 4,190 | 38 | % | ||||||||
Percentage of total revenue |
20 | % | 202 | % |
Change |
||||
(in thousands) | ||||
Employee-related costs |
$ | 3,411 | ||
Allocated overhead expenses and other |
779 | |||
|
|
|||
$ | 4,190 | |||
|
|
For the Three Months Ended |
Change |
|||||||||||||||
December 25, 2021 |
December 26, 2020 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Other income (expense), net |
$ | 22 | $ | (17 | ) | $ | 39 | (229 | )% | |||||||
Percentage of total revenue |
— | % | — | % |
Year Ended |
||||||||||||
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||
(in thousands) | ||||||||||||
Revenue: |
||||||||||||
Systems |
$ | 227,563 | $ | 70,818 | $ | 80,462 | ||||||
Software subscriptions |
4,009 | 2,614 | 2,348 | |||||||||
Operation services |
20,341 | 18,654 | 17,313 | |||||||||
|
|
|
|
|
|
|||||||
Total revenue |
251,913 | 92,086 | 100,123 | |||||||||
Cost of revenue: |
||||||||||||
Systems |
216,577 | 79,252 | 92,184 | |||||||||
Software subscriptions |
2,962 | 3,681 | 4,142 | |||||||||
Operation services |
21,927 | 28,083 | 23,761 | |||||||||
|
|
|
|
|
|
|||||||
Total cost of revenue |
241,466 | 111,016 | 120,087 | |||||||||
|
|
|
|
|
|
|||||||
Gross profit (loss) |
10,447 | (18,930 | ) | (19,964 | ) | |||||||
|
|
|
|
|
|
|||||||
Operating expenses: |
||||||||||||
Research and development expenses |
73,386 | 55,861 | 49,092 | |||||||||
Selling, general, and administrative expenses |
59,442 | 35,586 | 36,737 | |||||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
132,828 | 91,447 | 85,829 | |||||||||
|
|
|
|
|
|
|||||||
Operating loss |
(122,381 | ) | (110,377 | ) | (105,793 | ) | ||||||
|
|
|
|
|
|
|||||||
Other income, net |
67 | 809 | 1,432 | |||||||||
|
|
|
|
|
|
|||||||
Loss before income tax |
(122,314 | ) | (109,568 | ) | (104,361 | ) | ||||||
Income tax benefit |
— | 47 | — | |||||||||
|
|
|
|
|
|
|||||||
Net loss |
$ | (122,314 | ) | $ | (109,521 | ) | $ | (104,361 | ) | |||
|
|
|
|
|
|
Year Ended |
||||||||||||
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||
Revenue: |
||||||||||||
Systems |
90 | % | 77 | % | 80 | % | ||||||
Software subscriptions |
2 | 3 | 2 | |||||||||
Operation services |
8 | 20 | 17 | |||||||||
|
|
|
|
|
|
|||||||
Total revenue |
100 | 100 | 100 | |||||||||
Cost of revenue: |
||||||||||||
Systems |
86 | 86 | 92 | |||||||||
Software subscriptions |
1 | 4 | 4 | |||||||||
Operation services |
9 | 30 | 24 | |||||||||
|
|
|
|
|
|
|||||||
Total cost of revenue |
96 | 121 | 120 | |||||||||
|
|
|
|
|
|
|||||||
Gross profit (loss) |
4 | (21 | ) | (20 | ) | |||||||
|
|
|
|
|
|
|||||||
Operating expenses: |
||||||||||||
Research and development expenses |
29 | 61 | 49 | |||||||||
Selling, general, and administrative expenses |
24 | 39 | 37 | |||||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
53 | 99 | 86 | |||||||||
|
|
|
|
|
|
|||||||
Operating loss |
(49 | ) | (120 | ) | (106 | ) | ||||||
|
|
|
|
|
|
|||||||
Other income, net |
0 | 1 | 1 | |||||||||
|
|
|
|
|
|
|||||||
Loss before income tax |
(49 | ) | (119 | ) | (104 | ) | ||||||
Income tax benefit |
0 | 0 | 0 | |||||||||
|
|
|
|
|
|
|||||||
Net loss |
(49 | %) | (119 | %) | (104 | %) | ||||||
|
|
|
|
|
|
* | Percentages are based on actual values. Totals may not sum due to rounding. |
Year Ended |
Change |
|||||||||||||||
September 25, 2021 |
September 26, 2020 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Systems |
$ | 227,563 | $ | 70,818 | $ | 156,745 | 221 | % | ||||||||
Software subscriptions |
4,009 | 2,614 | 1,395 | 53 | ||||||||||||
Operation services |
20,341 | 18,654 | 1,687 | 9 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total revenue |
$ | 251,913 | $ | 92,086 | $ | 159,827 | 174 | % | ||||||||
|
|
|
|
|
|
Year Ended |
||||||||||||
September 25, 2021 |
September 26, 2020 |
Change |
||||||||||
(in thousands) | ||||||||||||
Systems |
$ | 10,986 | $ | (8,434 | ) | $ | 19,420 | |||||
Software subscriptions |
1,047 | (1,067 | ) | 2,114 | ||||||||
Operation services |
(1,586 | ) | (9,429 | ) | 7,843 | |||||||
|
|
|
|
|
|
|||||||
Total gross profit (loss) |
$ | 10,447 | $ | (18,930 | ) | $ | 29,377 | |||||
|
|
|
|
|
|
Year Ended |
Change |
|||||||||||||||
September 25, 2021 |
September 26, 2020 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Research and development |
$ | 73,386 | $ | 55,861 | $ | 17,525 | 31 | % | ||||||||
Percentage of total revenue |
29 | % | 61 | % |
Change | ||||
(in thousands) | ||||
Employee-related costs |
$ | 19,477 | ||
Prototype-related costs, allocated overhead expenses, and other |
(1,952 | ) | ||
|
|
|||
$ | 17,525 | |||
|
|
Year Ended |
Change |
|||||||||||||||
September 25, 2021 |
September 26, 2020 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Selling, general, and administrative |
$ | 59,442 | $ | 35,586 | $ | 23,856 | 67 | % | ||||||||
Percentage of total revenue |
24 | % | 39 | % |
Change | ||||
(in thousands) | ||||
Employee-related costs |
$ | 19,208 | ||
Allocated overhead expenses and other |
4,648 | |||
|
|
|||
$ | 23,856 | |||
|
|
Year Ended |
Change |
|||||||||||||||
September 25, 2021 |
September 26, 2020 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Other income, net |
$ | 67 | $ | 809 | $ | (742 | ) | (92 | %) | |||||||
Percentage of total revenue |
0 | % | 1 | % |
Year Ended |
Change |
|||||||||||||||
September 25, 2021 |
September 26, 2020 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Income tax benefit |
$ | — | $ | 47 | $ | (47 | ) | (100 | %) |
Year Ended |
Change |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Systems |
$ | 70,818 | $ | 80,462 | $ | (9,644 | ) | (12 | %) | |||||||
Software subscriptions |
2,614 | 2,348 | 266 | 11 | ||||||||||||
Operation services |
18,654 | 17,313 | 1,341 | 8 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total revenue |
$ | 92,086 | $ | 100,123 | $ | (8,037 | ) | (8 | %) | |||||||
|
|
|
|
|
|
Year Ended |
Change |
|||||||||||
September 26, 2020 |
September 28, 2019 |
|||||||||||
(in thousands) | ||||||||||||
Systems |
$ | (8,434 | ) | $ | (11,722 | ) | $ | 3,288 | ||||
Software subscriptions |
(1,067 | ) | (1,794 | ) | 727 | |||||||
Operation services |
(9,429 | ) | (6,448 | ) | (2,981 | ) | ||||||
|
|
|
|
|
|
|||||||
Total gross profit (loss) |
$ | (18,930 | ) | $ | (19,964 | ) | $ | 1,034 | ||||
|
|
|
|
|
|
Year Ended |
Change |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Research and development |
$ | 55,861 | $ | 49,092 | $ | 6,769 | 14 | % | ||||||||
Percentage of total revenue |
61 | % | 49 | % |
Change | ||||
(in thousands) | ||||
Employee-related costs |
$ | 3,673 | ||
Prototype-related costs, allocated overhead expenses, and other |
3,096 | |||
|
|
|||
$ | 6,769 | |||
|
|
Year Ended |
Change |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Selling, general, and administrative |
$ | 35,586 | $ | 36,737 | $ | (1,151 | ) | (3 | %) | |||||||
Percentage of total revenue |
39 | % | 37 | % |
Change | ||||
(in thousands) | ||||
Employee-related costs |
$ | (1,545 | ) | |
Allocated overhead expenses and other |
394 | |||
|
|
|||
$ | (1,151 | ) | ||
|
|
Year Ended |
Change |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Other income, net |
$ | 809 | $ | 1,432 | $ | (623 | ) | (44 | %) | |||||||
Percentage of total revenue |
1 | % | 1 | % |
Year Ended |
Change |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
Amount |
% |
|||||||||||||
(dollars in thousands) | ||||||||||||||||
Income tax benefit |
$ | 47 | $ | — | $ | 47 | 100 | % |
• | Unit-based compensation non-GAAP financial measures in order to highlight the performance of our business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. |
• | Amortization of acquired intangible assets non-GAAP financial measures to provide investors with a consistent basis for comparing pre- and post-acquisition operating results. |
• | Business combination transaction expenses |
due diligence costs, certain other professional fees, and other direct costs associated with strategic activities. These amounts are impacted by the timing and size of the acquisitions. We exclude acquisition-related costs from our non-GAAP financial measures to provide a useful comparison of our operating results to prior periods and to our peer companies because such amounts vary significantly based on the magnitude of our acquisition transactions and do not reflect our core operations. |
Three Months Ended |
Year Ended |
|||||||||||||||||||
December 25, 2021 |
December 26, 2020 |
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||||||||
Net loss |
$ | (23,053 | ) | $ | (26,203 | ) | $ | (122,314 | ) | $ | (109,521 | ) | $ | (104,361 | ) | |||||
Unit-based compensation |
268 | 21 | 11,736 | 208 | 22 | |||||||||||||||
Amortization of acquired intangible assets |
117 | 113 | 466 | 438 | 444 | |||||||||||||||
Business combination transaction expenses |
171 | — | 2,761 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-GAAP net loss |
$ | (22,497 | ) | $ | (26,069 | ) | $ | (107,351 | ) | $ | (108,875 | ) | $ | (103,895 | ) | |||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Year Ended |
|||||||||||||||||||
December 25, 2021 |
December 26, 2020 |
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||||||||
Net loss per unit |
$ | (4.88 | ) | $ | (5.36 | ) | $ | (24.16 | ) | $ | (21.64 | ) | $ | (20.16 | ) | |||||
Effect of non-GAAP adjustments |
0.09 | 0.02 | 2.33 | 0.10 | 0.07 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-GAAP net loss per unit |
$ | (4.79 | ) | $ | (5.34 | ) | $ | (21.83 | ) | $ | (21.54 | ) | $ | (20.09 | ) | |||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Year Ended |
|||||||||||||||||||
December 25, 2021 |
December 26, 2020 |
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||||||||
Net loss |
$ | (23,053 | ) | $ | (26,203 | ) | $ | (122,314 | ) | $ | (109,521 | ) | $ | (104,361 | ) | |||||
Interest income |
(11 | ) | (8 | ) | (35 | ) | (1,329 | ) | (2,710 | ) | ||||||||||
Income tax benefit |
— | — | — | (47 | ) | — | ||||||||||||||
Depreciation and amortization |
1,358 | 941 | 4,491 | 5,734 | 7,353 | |||||||||||||||
Unit-based compensation |
268 | 21 | 11,736 | 208 | 22 | |||||||||||||||
Business combination transaction expenses |
171 | — | 2,761 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA |
$ | (21,267 | ) | $ | (25,249 | ) | $ | (103,361 | ) | $ | (104,955 | ) | $ | (99,696 | ) | |||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Year Ended |
|||||||||||||||||||
December 25, 2021 |
December 26, 2020 |
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Net cash provided by (used in): |
||||||||||||||||||||
Operating activities |
$ | 40,000 | $ | 45,890 | $ | 109,567 | $ | (124,307 | ) | $ | 17,185 | |||||||||
Investing activities |
(7,505 | ) | (1,199 | ) | (12,168 | ) | (5,059 | ) | (4,327 | ) | ||||||||||
Financing activities |
173,796 | — | — | 100,000 | — |
Payments due in: |
||||||||||||||||||||
Total |
Less than 1 Year |
1-3 Years |
3-5 Years |
More than 5 Years |
||||||||||||||||
(in thousands) | ||||||||||||||||||||
Operating lease obligations |
$ | 9,166 | $ | 1,839 | $ | 4,688 | $ | 2,639 | $ | — | ||||||||||
Vendor commitments |
304,155 | 288,589 | 15,186 | 380 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 313,321 | $ | 290,428 | $ | 19,874 | $ | 3,019 | $ | — | ||||||||||
|
|
|
|
|
|
|
|
|
|
• | Option Pricing Method |
points of value based upon the liquidation preferences of the holders of our preferred units, as well as their rights to participation. Thus, the value of the common units can be determined by estimating the value of its portion of each of these call option rights. Under this method, the common units have value only if the funds available for distribution to the common unitholders exceed the value of the liquidation preferences of the preferred unitholders at the time of a liquidity event, such as a merger or sale. Given that the common unit represents a non-marketable equity interest in a private enterprise, an adjustment to the preliminary value estimates is made to account for the lack of liquidity that a unitholder experiences. This adjustment is commonly referred to as a discount for lack of marketability. |
• | Probability-Weighted Expected Return Method |
• | Hybrid Method |
Name |
Age |
Position | ||||
Directors: |
||||||
Richard B. Cohen |
69 | Chairman | ||||
Rollin Ford |
59 | Director | ||||
Charles Kane |
64 | Director | ||||
Todd Krasnow |
64 | Director | ||||
Vikas J. Parekh |
39 | Director | ||||
Merline Saintil |
45 | Director | ||||
Michael Rhodin |
61 | Director | ||||
Executive Officers: |
||||||
Richard B. Cohen |
69 | Chief Executive Officer | ||||
William M. Boyd III |
55 | Chief Strategy Officer | ||||
Thomas Ernst |
53 | Chief Financial Officer | ||||
Robert Doucette |
61 | Chief Operating Officer | ||||
Corey C. Dufresne |
51 | General Counsel | ||||
Michael Dunn |
49 | Vice President, Sales, Marketing & Product Strategy | ||||
George Dramalis |
62 | Chief Information Officer | ||||
Evan Pennell |
53 | Vice President, Product | ||||
Arnold Eric VanDoren |
56 | Vice President, Hardware Engineering |
• | we will have independent director representation on our audit, compensation and nominating and corporate governance committees immediately at the time of the Business Combination, and our independent directors will meet regularly in executive sessions without the presence of our corporate officers or non-independent directors; |
• | at least one of our directors will qualify as an “audit committee financial expert” as defined by the SEC; and |
• | we will implement a range of other corporate governance best practices, including implementing a robust director education program. |
• | appointing, compensating, retaining, evaluating, terminating and overseeing our independent registered public accounting firm; |
• | discussing with our independent registered public accounting firm their independence from management; |
• | reviewing, with our independent registered public accounting firm, the scope and results of their audit; |
• | approving all audit and permissible non-audit services to be performed by our independent registered public accounting firm; |
• | overseeing the financial reporting process and discussing with management and our independent registered public accounting firm the quarterly and annual financial statements that we file with the SEC; |
• | overseeing our financial and accounting controls and compliance with legal and regulatory requirements; |
• | reviewing our policies on risk assessment and risk management; |
• | reviewing related person transactions; and |
• | establishing procedures for the confidential anonymous submission of concerns regarding questionable accounting, internal controls or auditing matters. |
• | reviewing and approving, or recommending for approval by our board of directors, the compensation of our Chief Executive Officer and other executive officers; |
• | reviewing and approving or making recommendations to our board of directors regarding our incentive compensation and equity-based plans, policies and programs and administering equity-based plans; |
• | reviewing and making recommendations to our board of directors relating to management succession planning, including for our Chief Executive Officer; |
• | making recommendations to our board of directors regarding the compensation of our directors; |
• | retaining and overseeing any compensation consultants; and |
• | reviewing our strategies related to human capital management and reviewing and discussing with management our strategies in support of an inclusive and diverse company culture. |
• | identifying individuals qualified to become members of our board of directors, consistent with criteria approved by our board of directors; |
• | recommending to our board of directors the directors to be appointed to each committee of our board of directors and periodically reviewing and making recommendations to our board of directors for changes or rotations of committee members, the creation of additional committees, changes in committee charters or the dissolution of committees; |
• | developing and recommending to our board of directors a set of corporate governance guidelines; |
• | periodically reviewing our board of directors’ leadership structure and recommending any proposed changes to our board of directors; |
• | overseeing an annual evaluation of the effectiveness of our board of directors and its committees; and |
• | reviewing and making recommendations to our board of directors relating to management succession planning, including for our Chief Executive Officer. |
• | Richard B. Cohen, Chairman and Chief Executive Officer |
• | Thomas Ernst, Chief Financial Officer |
• | Michael Dunn, Vice President, Sales, Marketing & Product Strategy |
• | Class C Units |
Executives generally receive Class C Units that vest ratably over five years, subject to continued employment. Upon a change in control (as defined in the applicable award agreement), outstanding awards of Class C Units will accelerate such that 50% of the then unvested units at the time of the change in control vest. The transactions contemplated by the Merger Agreement are not expected to constitute a change in control for purposes of the Class C Units. Pursuant to the terms of the Warehouse LLCA, a trust of which members of Mr. Cohen’s family are the beneficiaries holds a residual interest in any Class C Units that are not awarded to, or are forfeited by or repurchased from, current or former employees or other service providers from time to time. Messrs. Ernst and Dunn did not receive any grants of Class C Units, during the fiscal year ended September 25, 2021. |
• | Warehouse Phantom Awards |
Name and Position |
Fiscal Year |
Salary ($) |
Bonus ($) |
All Other Compensation ($) (1) |
Total ($) |
|||||||||||||||
Richard B. Cohen |
2021 | — | — | — | — | |||||||||||||||
Chairman and Chief Executive Officer |
||||||||||||||||||||
Thomas Ernst |
2021 | $ | 370,673 | $ | 187,500 | $ | 72,347 | $ | 630,520 | |||||||||||
Chief Financial Officer |
||||||||||||||||||||
Michael Dunn |
2021 | $ | 350,000 | $ | 350,000 | $ | 11,600 | $ | 711,600 | |||||||||||
Vice President, Sales, Marketing & Product Strategy |
(1) | The items comprising “All Other Compensation” for 2021 are 401(k) plan employer contributions and benefits provided pursuant to the Member Program, as discussed in greater detail below in “— Benefits and Perquisites |
Option Awards |
Stock Awards |
|||||||||||||||||||||||||||||||
Name |
Grant Date |
Number of Securities Underlying Unexercised Options (#) Exercisable |
Number of Securities Underlying Unexercised Options (#) Unexercisable |
Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
Option Exercise Price ($) |
Option Expiration Date |
Number of Shares or Units that Have Not Vested (#) |
Market Value of Shares or Units that Have Not Vested ($) |
||||||||||||||||||||||||
Richard B. Cohen (1) |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Thomas Ernst |
9/10/2020 | (2) |
— | — | — | — | — | 12,852 | $ | |||||||||||||||||||||||
Michael Dunn |
5/13/2017 | (3) |
120,000 | 30,000 | 75,000 | $ | 0 | (4) |
5/13/2027 | — | — | |||||||||||||||||||||
5/13/2017 | (3) |
26,666.7 | 6,666.7 | 16,666.7 | $ | 0 | (4) |
5/13/2027 | ||||||||||||||||||||||||
6/29/2018 | (5) |
175,219.2 | 43,804.8 | 109,512 | $ | 0 | (4) |
6/29/2028 |
(1) | The equity held indirectly by Mr. Cohen pursuant to a residual interest in Class C Units to the extent such Class C Units are not awarded to employees or other service providers from time to time, is not set forth in this table because such interest is fully vested and is not awarded as compensation. |
(2) | The Class C Units held by Mr. Ernst that were unvested as of September 25, 2021 vest over 16 quarters on the 10 th of each December, March, June and September commencing on December 10, 2021. |
(3) | Represents grants of 225,000 and 50,000 VAP units, in each case, granted in connection with Mr. Dunn’s commencement of employment pursuant to the Dunn Offer Letter that vested 20% upon the first anniversary of the grant date and 5% on the last day of each calendar quarter beginning on the first full quarter following the first anniversary of the grant date (the “Dunn Sign On Award”). Vested VAP units granted pursuant to the Dunn Sign On Award may be exercised once exercisability triggers are met. The 50,000 VAP unit grant was subject to an additional performance vesting requirement regarding the achievement of certain sales incentive plan metrics with respect to fiscal year 2018, which were met. As of September 25, 2021, 80% of the VAP units pursuant to the Dunn Sign On Awards had vested and two-thirds of such vested VAP units were exercisable. |
(4) | Because awards under the VAP are appreciation-focused awards, amounts set forth in this column represent the “Initial Value” of the applicable VAP units, which represents the fair market value of the VAP units on the grant date. A holder is eligible to receive a payment upon exercise of or payment in respect of their VAP units equal to the excess of the fair market value as of the time determined pursuant to the plan and award agreement over the initial value set forth in this column, subject to the terms and conditions of the plan and the holder’s award agreement. |
(5) | Represents grant of 328,536 VAP units, which vest using the same vesting schedule and vesting dates as the Dunn Sign On Award. As of September 25, 2021, 80% of these VAP units had vested and two-thirds of such vested VAP units were exercisable. |
• | Step 1— Company Reorganization |
• | Step 2— Domestication |
• | Step 3— PIPE Investment |
• | Step 4— Forward Purchase |
• | Step 5— Merger |
• | Step 6— Unit Purchase |
Forecast Fiscal Year Ending |
||||||||||||||||||||
(USD in millions) | 2021E |
2022E |
2023E |
2024E |
2025E |
|||||||||||||||
Revenue |
$ | 211 | $ | 433 | $ | 832 | $ | 1,448 | $ | 2,207 | ||||||||||
Gross Profit |
$ | 4 | $ | 102 | $ | 223 | $ | 436 | $ | 652 | ||||||||||
Adjusted EBITDA (1) |
$ | (99 | ) | $ | (38 | ) | $ | 74 | $ | 278 | $ | 486 |
(1) | Adjusted EBITDA is a non-GAAP measure. Adjusted EBITDA is calculated as EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted to exclude certain unusual or non-recurring items, certain non-cash items and other items that are not indicative of ongoing operations (including unit-based compensation and business combination transaction expenses). For a historical reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure of net income, please see the section titled “Symbotic’s Management’s Discussion and Analysis of Financial Condition and Results Of Operations |
• | Prospective financial information relating to revenue is based on a variety of operational assumptions, including: |
• | Contracted backlog : Approximately two-thirds of the forecasted revenue for FY2022 through FY2025 is accounted for in our existing $5.4 billion non-changeable, scheduled backlog. |
• | Expansion within our current customer base : In addition to system deployments already under contract with our existing customers, our forecast includes additional system deployments within our customers’ distribution networks. |
• | Existing sales pipeline opportunities : We are currently in discussions with several new prospective customers and our forecast assumes a portion of those discussions will convert to revenue generating system sales. |
• | New sales opportunities in our strategically addressable markets : Our forecast assumes only minor penetration, approximately 0.5%, of our identified $289 billion total addressable market in the United States. |
• | Prospective financial information relating to gross profit and adjusted EBITDA are based on a variety of operational assumptions, including: |
• | Estimated costs to manufacture and install our systems : We expect some of the current costs associated with supply chain and commodity constraints to normalize in the long-run, lowering future costs starting in FY2023 as compared to FY2021 and FY2022. |
• | Gross profit : Visibility is enhanced by the cost structure across the strong majority of our contracted backlog; gross profits have guaranteed minimums with key variable cost items such as |
labor and steel cost variances being absorbed by the customer. This is due to the cost-plus fixed profit structure of the contracted backlog. |
• | Growth of adjusted operating expenses : We forecast selling, general, and administrative expenses to more than double from FY2021 to FY2025, which is primarily driven by additional headcount in sales to support our new customer sales and increased headcount in finance, human resources, and legal departments to support our transition to a publicly traded company. Research and development expenses are forecasted to increase 64% between FY2020 and FY2022 in order to support the company’s product development roadmap, with modest growth expected between FY2023 and FY2025. |
• | Superior Strategic Alternative. |
• | Access to Liquidity for Warehouse Employees |
• | Significant PIPE non-binding term sheet dated August 2, 2021 between Warehouse and SVF 3. |
• | Terms of the Merger Agreement. |
• | Purchase Price. |
• | Access to Capital. |
• | Benefit from Being a Public Company. |
• | Closing Conditions non-binding term sheet dated August 2, 2021 between Warehouse and SVF 3. |
• | Impact on Reputation and Business if the Business Combination is Not Completed. |
• | Costs of Being a Public Company. |
• | Restrictions on Operation of Warehouse’s Business . |
• | Interests of Mr. Cohen and Warehouse Executive Officers. Interests of Warehouse’s Sole Manager and Board of Advisors and Symbotic LLC’s Executive Officers in the Business Combination |
• | Other Risks. Risk Factors |
• | Industry-Leading System |
• | Growth Prospects best-in-class |
• | Market Opportunity e-commerce and the digital economy globally by helping retailers and logistics companies meet ever increasing consumer demands, combined with global concerns over weaknesses in supply chains and critical infrastructure, heightened by the COVID-19 pandemic. |
• | Value-Add to Customers |
• | Valuation |
• | Experienced and Proven Management Team |
• | Financial Condition |
• | Results of Due Diligence |
• | PIPE Investment |
• | Continued Ownership by Warehouse Unitholders |
• | Other Alternatives |
• | Terms of the Merger Agreement |
• | Macroeconomic Risks. COVID-19 pandemic, and the effects it could have on the Post-Combination Company’s revenue and trading price of the Post-Combination Company’s common stock; |
• | Business Plan and Projections May Not Be Achieved. |
• | Risks Associated with Symbotic’s business Risk Factors—Risks Related to Symbotic—Risks Related to Our Business, Operations and Industry, Risk Factors—Risks Related to Symbotic—Risks Related to Intellectual Property, Risk Factors—Risks Related to Symbotic—Risks Related to Cybersecurity, Software Deficiencies, Service Interruptions and Data Privacy Risk Factors—Other Risks. |
• | Redemption Risk. |
• | Shareholder Vote. |
• | Exclusivity. |
• | Closing Conditions. |
• | Litigation. |
• | Listing Risks. |
• | Benefits May Not Be Achieved. |
• | Liquidation of SVF 3. |
• | Growth Initiatives May Not be Achieved. |
• | No Third - Party Valuation third-party valuation or fairness opinion in connection with the Business Combination; |
• | SVF 3 Shareholders Receiving a Minority Position in Symbotic. |
• | Fees and Expenses. |
• | Interests of Certain Persons. —Interests of SVF 3’s Directors and Officers in the Business Combination”) |
• | Other Risks Factors. Risk Factors |
Symbotic (assuming a $4.8 billion post-money transaction enterprise value) |
4.8x |
|||
– AMETEK |
5.6x | |||
– Cognex Corporation |
10.2x | |||
– Hexagon |
7.1x | |||
– Keyence Corporation |
19.3x | |||
– Rockwell Automation |
5.1x | |||
– Trimble |
5.3x | |||
– Zebra Technologies |
5.4x | |||
Median multiple of selected Industrial Technology peers |
5.6x |
|||
– ANSYS |
15.1x | |||
– Aspen Technology |
12.5x | |||
– AVEVA Group |
7.4x | |||
– Bentley Systems |
11.7x | |||
– Coupa Software |
12.0x | |||
– Descartes Systems |
11.9x | |||
– Manhattan Associates |
11.8x | |||
– PTC |
7.1x | |||
Median multiple of selected Software peers |
11.9x |
|||
Berkshire Grey |
4.5x |
|||
AutoStore |
20.9x |
(1) |
Market data as of December 10, 2021 |
• | The Articles provide that SVF 3 renounce its interest or expectancy in any corporate opportunity about which any director or officer of SVF 3 acquires knowledge unless such opportunity is expressly offered to such person solely in his or her capacity as SVF 3’s director or officer and such opportunity is one that the Company is able to complete on a reasonable basis. Certain of SVF 3’s officers and directors have, and any of them in the future may have additional, fiduciary or contractual obligations to other entities that are sponsored by affiliates of the Sponsor. SVF 3 does not believe, however, that such pre-existing fiduciary duties or contractual obligations of its officers and directors materially affected its search for an acquisition target. |
• | If the Business Combination with Symbotic or another business combination is not consummated within the Completion Window, SVF 3 will cease all operations except for the purpose of winding up, redeeming 100% of the outstanding Public Shares for cash and, subject to the approval of its remaining shareholders and the SVF 3 Board, dissolving and liquidating. In such event, the 8,000,000 Founder Shares held by SVF 3’s Initial Shareholders which were acquired for an aggregate purchase price of $25,000 prior to the SVF 3 IPO, would be worthless because SVF 3’s Initial Shareholders are not entitled to participate in any redemption or distribution with respect to such shares. Such Founder Shares had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date. Certain Founder Shares are subject to certain performance-based vesting provisions as described under “ The Business Combination —Other Agreements—Sponsor Letter Agreement. |
• | Simultaneously with the closing of the Initial Public Offering, SVF 3 consummated a private sale of 1,040,000 Class A ordinary shares (the “Private Placement”) at a price of $10.00 per Private Placement Share to our Sponsor, generating gross proceeds of approximately $10,400,000. If we do not consummate a business combination transaction within the Completion Window, then the proceeds from the sale of the Private Placement Shares will be part of the liquidating distribution to the Public Shareholders and the Private Placement Shares held by the Sponsor will be worthless. |
• | If SVF 3 is unable to complete a business combination within the Completion Window, its officers will be personally liable under certain circumstances described herein to ensure that the proceeds in the Trust Account are not reduced by the claims of target businesses or claims of vendors or other entities that are owed money by SVF 3 for services rendered or contracted for or products sold to SVF 3. If SVF 3 consummates a business combination, on the other hand, SVF 3 will be liable for all such claims. |
• | SVF 3’s directors and officers and their affiliates are entitled to reimbursement of out-of-pocket expenses incurred by them in connection with certain activities on SVF 3’s behalf, such as identifying and investigating possible business targets and business combinations. However, if SVF 3 fails to consummate a business combination within the Completion Window, they will not have any claim against the Trust Account for such reimbursement. Accordingly, SVF 3 may not be able to reimburse these expenses if the Business Combination or another business combination is not consummated within the Completion Window. |
• | The continued indemnification of current directors and officers and the continuation of directors’ and officers’ liability insurance. |
• | Our Sponsor, officers and directors collectively (including entities controlled by officers and directors) have made an aggregate investment of $11,550,000, or $1.26 per SVF 3 ordinary share (including the |
8,000,000 Founder Shares, the 1,040,000 Private Placement Shares and the purchase of 112,500 Public Shares in connection with the SVF 3 IPO). Such shares had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date (of which 150,000 Founder Shares and 112,500 Public Shares were held by our directors and officers, which had an aggregate market value of $ based upon the closing price of $ per Class A ordinary share on NASDAQ on , 2022, the SVF 3 Record Date). As a result of the significantly lower investment per share of our Sponsor, directors and officers as compared with the investment per share of our Public Shareholders, a transaction which results in an increase in the value of the investment of our Sponsor, directors and officers may result in a decrease in the value of the investment of our Public Shareholders. These interests could, in theory, incentivize our Sponsor, directors and officers to complete a business combination with a less favorable target company or on terms less favorable to stockholders rather than liquidate. |
• | There will be no liquidating distributions from our Trust Account with respect to the Founder Shares or the Private Placement Shares if we fail to complete a business combination within the Completion Window. Our Sponsor purchased the Founder Shares prior to the SVF 3 IPO for an aggregate purchase price of $25,000, and transferred 50,000 Founder Shares to each of Michael Carpenter, Michael Tobin and Cristiana Falcone for aggregate consideration of $300. |
• | Following the Closing, the Sponsor would be entitled to the repayment of any Working Capital Loans and advances that have been made to SVF 3 and remain outstanding. On August 10, 2021, the Sponsor agreed to loan SVF 3 $2.0 million as a Working Capital Loan. On November 9, 2021, the Sponsor and SVF 3 agreed to amend this loan to increase the commitment by $1.0 million. If SVF 3 does not complete an initial business combination within the Completion Window, SVF 3 may use a portion of its working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Up to $2,000,000 of such loans may be convertible into Class A ordinary shares of the post-business combination entity at a price of $10.00 per share at the option of the lender. |
• | Our Initial Shareholders and our directors and officers have agreed to waive their rights to liquidating distributions from the Trust Account with respect to their Founders Shares and will not have rights to liquidating distributions with respect to their Private Placement Shares if SVF 3 fails to complete a business combination within the Completion Window. |
• | As of October 31, 2021, Walmart, Symbotic’s largest customer, holds a majority of the outstanding equity interests of Flipkart Internet Pvt Ltd, a company in which SoftBank Vision Fund II, an affiliate of SBIA, holds a minority interest. |
• | Warehouse’s sole manager and certain members of its board of advisors and Symbotic LLC’s executive officers are expected to become directors and/or executive officers of the Post-Combination Company upon the closing of the Business Combination. Specifically, the following individuals are expected to become directors and/or executive officers of the Post-Combination Company upon the closing of the Business Combination, serving in the offices set forth opposite their names below: |
Name |
Current Position |
Position at Post- Combination Company | ||
Richard B. Cohen |
Sole Manager and Member of Board of Advisors of Warehouse and Chief Executive Officer of Symbotic LLC | Chairman and Chief Executive Officer | ||
Rollin Ford |
Member of Board of Advisors of Warehouse | Director | ||
Charles Kane |
Member of Board of Advisors of Warehouse | Director | ||
Todd Krasnow |
Member of Board of Advisors of Warehouse | Director | ||
Merline Saintil |
Member of Board of Advisors of Warehouse | Director | ||
Michael Rhodin |
Member of Board of Advisors of Warehouse | Director | ||
William M. Boyd III |
Chief Strategy Officer of Symbotic LLC | Chief Strategy Officer | ||
Thomas Ernst |
Chief Financial Officer of Symbotic LLC | Chief Financial Officer | ||
Robert Doucette |
Chief Operating Officer of Symbotic LLC | Chief Operating Officer | ||
Corey C. Dufresne |
General Counsel of Symbotic LLC | General Counsel | ||
Michael Dunn |
Vice President, Sales, Marketing & Product Strategy of Symbotic LLC | Vice President, Sales, Marketing & Product Strategy | ||
George Dramalis |
Chief Information Officer of Symbotic LLC | Chief Information Officer | ||
Evan Pennell |
Vice President, Product of Symbotic LLC | Vice President, Product | ||
Arnold Eric VanDoren |
Vice President, Hardware Engineering of Symbotic LLC | Vice President, Hardware Engineering |
• | Effective upon the completion of the Business Combination and in connection with the implementation of the Incentive Compensation Plan and the ESPP, we intend to grant awards to certain executive officers of the Post-Combination Company; however, such awards are discretionary and cannot be determined at this time. |
• | Upon the completion of the Business Combination, Richard B. Cohen, his family and trusts for the benefit of his family are anticipated to own 77% of the Post-Combination Company and control 91% of the voting power of the Post-Combination Company assuming No Redemptions and 82% of the Post-Combination Company and control 93% of the voting power of the Post-Combination Company assuming Maximum Redemptions. |
• | Certain executive officers of Symbotic LLC hold Class C Units of Warehouse, which will convert into New Symbotic Holdings Common Units in connection with the Business Combination. |
• | Certain executive officers of Symbotic LLC hold awards under the 2012 Value Appreciation Plan and the Amended and Restated 2018 Long Term Incentive Plan. The Incentive Compensation Plan permits the compensation committee to deliver new awards covering Class A common stock of the Post-Combination Company in exchange for awards under the 2012 Value Appreciation Plan or the Amended and Restated 2018 Long Term Incentive Plan outstanding prior to the consummation of the Business Combination, subject to such terms and conditions as the compensation committee may determine. |
• | The Symbotic Founder, certain family members of the Symbotic Founder and certain affiliated entities and trusts of the Symbotic Founder and his family members will have a majority of the voting power of the Post-Combination Company under both the No Redemption and Maximum Redemption scenarios; |
• | The Symbotic Founder, certain family members of the Symbotic Founder and certain affiliated entities and trusts of the Symbotic Founder and his family members will have the ability to nominate and represent majority of the Post-Combination Company’s Board; and |
• | Warehouse’s former management will comprise the vast majority of the management and executive positions of the Post-Combination Company. |
• | adopt or propose any change in its or its subsidiaries’ organizational documents; |
• | merge or consolidate itself or any of its subsidiaries with any other person, except for any such transactions among itself and/or its wholly owned subsidiaries, or restructure, reorganize, dissolve or completely or partially liquidate or otherwise enter into any agreements or arrangements imposing material changes or restrictions on substantially all of its assets, operations or businesses; |
• | acquire assets outside of the ordinary course of business from any other person with a value or purchase price in the aggregate in excess of $2,000,000, or acquire any business or person, by merger |
or consolidation, purchase of substantially all assets or equity interests or by any other manner, in each case, in any transaction or series of related transactions, other than acquisitions or other transactions pursuant to contracts to which Warehouse or any of its subsidiaries are a party that are in effect as of the date of the Merger Agreement or entered into thereafter consistent with the terms of the Merger Agreement; |
• | pursuant to contracts to which Warehouse or any of its subsidiaries are a party that are in effect as of the date of the Merger Agreement or entered into thereafter consistent with the terms of the Merger Agreement, enter into any joint venture or similar long-term business combination with another person; |
• | other than pursuant to contracts to which Warehouse or any of its subsidiaries are a party that are in effect as of the date of the Merger Agreement or entered into thereafter consistent with the terms of the Merger Agreement, transfer, sell, lease, license, mortgage, pledge, surrender, encumber, divest, cancel, abandon or allow to lapse or expire or otherwise dispose of any of its material assets, properties, licenses, operations, rights, product lines, businesses or interests therein, except for (A) transfers, sales, licenses or other dispositions in the ordinary course of business consistent with past practice and (B) sales, leases, licenses or other dispositions of assets with a fair market value not in excess of $5,000,000 in the aggregate; |
• | issue, sell, pledge, dispose of, grant, transfer, encumber or authorize the issuance, sale, pledge, disposition, grant, transfer or encumbrance of any shares of capital stock of Warehouse or any of its subsidiaries (other than the issuance of shares by a wholly owned subsidiary of Warehouse to Warehouse or another wholly owned subsidiary of Warehouse), or securities convertible or exchangeable into or exercisable for any shares of such capital stock, or any options, warrants or other rights of any kind to acquire any shares of such capital stock; |
• | reclassify, split, combine, subdivide or redeem, purchase or otherwise acquire, directly or indirectly, any of its capital stock or securities convertible or exchangeable into or exercisable for any shares of its capital stock; |
• | declare, set aside, make or pay any dividend or distribution, payable in cash, stock, property or otherwise, with respect to any of its capital stock or enter into any agreement with respect to the voting of its capital stock; |
• | make any material loans, advances, guarantees or capital contributions to or investments in any person (other than Warehouse or any direct or indirect wholly owned subsidiary of Warehouse), other than in the ordinary course of business; |
• | incur any indebtedness for borrowed money or guarantee any such indebtedness of another person, or issue or sell any debt securities or warrants or other rights to acquire any debt security of Warehouse or any of its subsidiaries, except for indebtedness for borrowed money incurred in the ordinary course of business consistent with past practice, not to exceed $2,000,000 in the aggregate; |
• | make or commit to make capital expenditures other than in an amount not in excess of a specified amount, except for any such expenditures (A) to the extent reasonably necessary to avoid a material business interruption as a result of any act of God, war, terrorism, earthquake, fire, hurricane, storm, flood, civil disturbance, explosion, partial or entire failure of utilities or information technology systems, or any other similar cause not reasonably within the control of Warehouse or its subsidiaries or (B) not in excess of $5,000,000 in the aggregate during any consecutive 12-month period; |
• | other than with respect to contracts with a supplier or customer of Warehouse or otherwise in the ordinary course of business, enter into certain listed types of material contracts; provided that Warehouse will reasonably consult with SVF 3 before entering into any such contract with any supplier or customer of Warehouse if the contemplated counterparty to such contract is not a current supplier or customer, or an affiliate of a current supplier or customer, of Warehouse; |
• | amend, modify, fail to renew or terminate certain listed material contracts or waive or release any material rights, claims or benefits under such contracts, other than expirations or non-renewals of any such contract in the ordinary course of business; |
• | make any material changes with respect to its accounting policies or procedures, except as required by changes in law or GAAP; |
• | other than with respect to any proceeding in connection with, arising out of or otherwise related to a dispute among SVF 3, Merger Sub, Warehouse and/or Symbotic Holdings in connection with the Merger Agreement or any of the transaction documents, settle any proceeding, except where such settlement is covered by insurance or involves only the payment of monetary damages directly from Warehouse in an amount not more than $1,000,000 in the aggregate; |
• | make any material tax election in a manner inconsistent with past practice or revoke or change any material tax election; file any material amended tax return; adopt or change any material tax accounting method or period; enter into any agreement with a taxing authority with respect to material taxes; settle or compromise any examination, audit or other action with a taxing authority of or relating to any material taxes; extend, waive or consent to any extension or waiver of the limitation period applicable to any claim or assessment in respect of material taxes; surrender any right to claim a refund in respect of material taxes; or enter into any “closing agreement” as described in Section 7121 of the Code (or any similar law) with any taxing authority; |
• | except as required pursuant to the terms of any Warehouse benefit plan as in effect on the date of the Merger Agreement or as required by law, (A) increase in any manner the compensation or consulting fees, bonus, pension, welfare, fringe or other benefits, severance or termination pay of any Warehouse employee (including executive officers) with an annual salary or wage rate or consulting fees and target annual cash bonus opportunity in excess of $300,000 as of the date of the Merger Agreement, (B) except in the ordinary course of business, consistent with past practice, become a party to, establish, adopt, amend, commence participation in or terminate any material Warehouse benefit plan or any arrangement that would have been a Warehouse benefit plan had it been entered into prior to the Merger Agreement, (C) grant any new awards, or amend or modify the terms of any outstanding awards or, except in the ordinary course of business, consistent with past practice, under any Warehouse benefit plan, (D) take any action to accelerate the vesting or lapsing of restrictions or payment, or fund or in any other way secure the payment, of compensation or benefits under any Warehouse benefit plan, (E) forgive any loans or issue any loans (other than routine travel advances issued in the ordinary course of business) to any Warehouse employee, (F) hire any employee or engage any independent contractor (who is a natural person) with annual salary or wage rate or consulting fees and target annual cash bonus opportunity in excess of $300,000, or (G) terminate the employment of any executive officer other than for cause; |
• | sell, assign, lease, license, pledge, encumber, divest, abandon or otherwise dispose of, allow to lapse or expire, or fail to protect, any material Warehouse intellectual property, other than grants of non-exclusive licenses in the ordinary course of business; |
• | become a party to, establish, adopt, amend, commence participation in or enter into any collective bargaining or other labor union contract; |
• | enter into any material new line of business outside of the business conducted by Warehouse and its subsidiaries as of the date of the Merger Agreement; or |
• | agree, authorize or commit to do any of the foregoing. |
• | change, modify or amend, or seek any approval from the SVF 3 shareholders to change, modify or amend, the SVF 3 Trust Agreement, SVF 3’s organizational documents or the organizational documents of Merger Sub; |
• | (A) make, declare, set aside or pay any dividends on, or make any other distribution (whether in cash, stock or property) in respect of any of its outstanding capital stock or other equity interests; (B) consolidate, combine, reclassify or otherwise change any of its capital stock or other equity interests; or (C) other than the redemption of any SVF 3 Class A ordinary shares required by the redemption offer or as otherwise required by SVF 3’s organizational documents in order to consummate the transactions contemplated by the Merger Agreement, repurchase, redeem or otherwise acquire, or offer to repurchase, redeem or otherwise acquire, any capital stock of, or other equity interests in, SVF 3; |
• | enter into, or permit any of the assets owned or used by it to become bound by, any contract, other than as expressly required in connection with the transactions contemplated by the Merger Agreement; |
• | other than as expressly required by the Sponsor Support Agreement, the Sponsor Letter Agreement or the Forward Purchase Agreement, enter into, renew or amend in any material respect, any transaction or contract with an affiliate of SVF 3 or Merger Sub (including, for the avoidance of doubt, (A) the Sponsor and (B) any person in which the Sponsor has a direct or indirect legal, contractual or beneficial ownership interest of 5% or greater); |
• | incur or assume any indebtedness or guarantee any indebtedness of another person, issue or sell any debt securities or warrants or other rights to acquire any debt securities of Warehouse or any of Warehouse’s subsidiaries or guaranty any debt securities of another person, other than any indebtedness for borrowed money or guarantee incurred between SVF 3 and Merger Sub; |
• | make any loans, advances, guarantees or capital contributions to or investments in any person (other than Warehouse or any wholly owned subsidiary of Warehouse or in connection with the transactions contemplated by the Merger Agreement); |
• | make any changes with respect to its accounting policies or procedures, except as required by changes in law or GAAP; |
• | (A) offer, issue, deliver, grant or sell, or authorize or propose to offer, issue, deliver, grant or sell, any capital stock of, or other equity interests in, SVF 3 or any of its subsidiaries or any securities convertible into, or any rights, warrants or options to acquire, any such capital stock or equity interests, other than the transactions contemplated by the Merger Agreement (including the transactions contemplated by the Subscription Agreements), or (B) amend, modify or waive any of the terms or rights set forth in the Forward Purchase Agreement; |
• | except as contemplated by the Incentive Compensation Plan or ESPP, (A) adopt, amend or become obligated to contribute to, or incur liability (contingent or otherwise) or obligations under, any arrangement that would be an SVF 3 benefit plan if in effect on the date of the Merger Agreement, |
(B) hire any employee or any other individual to provide services to SVF 3 or its subsidiaries, or (C) become a party to, establish, adopt, amend, commence participation in or enter into any collective bargaining or other labor union contract; |
• | make any material tax election in a manner inconsistent with past practice or revoke or change any material tax election; file any material amended tax return; adopt or change any material tax accounting method or period; enter into any agreement with a taxing authority with respect to material taxes; settle or compromise any examination, audit or other action with a taxing authority of or relating to any material taxes; extend, waive or consent to any extension or waiver of the limitation period applicable to any claim or assessment in respect of material taxes; surrender any right to claim a refund in respect of material taxes; or enter into any “closing agreement” as described in Section 7121 of the Code (or any similar law) with any taxing authority; |
• | (A) fail to maintain its existence or acquire by merger or consolidation with, or merge or consolidate with, or purchase a material portion of the assets or equity of, any corporation, partnership, limited liability company, association, joint venture or other business organization or division thereof; or (B) adopt or enter into a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization of SVF 3 or its subsidiaries (other than the transactions contemplated by the Merger Agreement); |
• | make any capital expenditures; |
• | make any loans, advances or capital contributions to, or investments in, any other person (including to any of its officers, directors, agents or consultants and excluding Warehouse or any wholly owned subsidiary of Warehouse), make any change in its existing borrowing or lending arrangements for or on behalf of such persons, or enter into any “keep well” or similar agreement to maintain the financial condition of any other person; |
• | enter into any new line of business outside of the business currently conducted by SVF 3 and its subsidiaries as of the date of the Merger Agreement; or |
• | agree, authorize or commit to do any of the foregoing. |
• | Warehouse and SVF 3 providing, subject to certain specified restrictions and conditions, to the other party and its respective representatives reasonable access to Warehouse’s and SVF 3’s, as applicable, and their respective subsidiaries’ properties, books, projections, plans, systems, contracts, commitments, tax returns, records, commitments, analyses and appropriate officers and employees of Warehouse or SVF 3, as applicable, and furnishing the other party’s representatives with all financial and operating data and other information concerning the affairs of Warehouse or SVF 3, as applicable, that are in the possession of such party as such representatives may reasonably request; |
• | Warehouse waiving claims to the SVF 3 Trust Account in the event that the Business Combination is not consummated; |
• | Warehouse and SVF 3 cooperating on the preparation and efforts to make effective this proxy statement/prospectus; |
• | Warehouse delivering to SVF 3 certain audited and unaudited financial statements specified in the Merger Agreement; |
• | SVF 3 taking all actions necessary or appropriate to cause the specified individuals to be appointed as the directors and/or officers of the Post-Combination Company; |
• | SVF 3 notifying Warehouse of any litigation and keeping Warehouse reasonably informed in the event that any litigation related to the Merger Agreement or the transactions contemplated thereby is brought, or, to the knowledge of SVF 3, threatened in writing, against SVF 3 or the board of directors of SVF 3 by any of SVF 3’s shareholders prior to the Closing; |
• | SVF 3 keeping current and timely filing all reports required to be filed or furnished with the SEC and otherwise complying in all material respects with its reporting obligations under applicable securities laws; |
• | SVF 3, Merger Sub and Warehouse taking steps to exempt the acquisition of Class A ordinary shares from Section 16(b) of the Exchange Act pursuant to Rule 16b-3 thereunder; |
• | SVF 3 approving and adopting the Incentive Compensation Plan and ESPP to be effective in connection with the Closing; |
• | intended tax treatment; and |
• | confidentiality and publicity relating to the Merger Agreement and the transactions contemplated thereby. |
• | corporate organization, qualification to do business, good standing and corporate power; |
• | the capital structure of Warehouse, including shares authorized and outstanding as of the date of the Merger Agreement and the absence of arrangements that obligate Warehouse to issue or sell shares in the future, and information relating to Warehouse’s subsidiaries; |
• | requisite corporate authority to enter into the Merger Agreement and to complete the contemplated transactions; |
• | unanimous determination of Warehouse’s board of directors that the Business Combination is fair to, and in the best interests of, Warehouse and its members, and resolution to recommend adoption of the Merger Agreement to its members; |
• | absence of conflicts with organizational documents, applicable laws or certain agreements and instruments as a result of entering into the Merger Agreement or consummating the Business Combination; |
• | financial statements and internal controls; |
• | absence of a Material Adverse Effect since September 25, 2021 and absence of certain other changes; |
• | absence of undisclosed liabilities; |
• | legal proceedings and absence of governmental orders; |
• | employee compensation and benefits matters; |
• | labor matters; |
• | compliance with applicable law; |
• | environmental matters; |
• | tax matters; |
• | real property and personal property matters; |
• | intellectual property, information technology systems and data privacy; |
• | insurance; |
• | Warehouse’s material contracts; |
• | broker’s and finder’s fees related to the Business Combination; |
• | supplier and customer agreements; |
• | related-party transactions; and |
• | Warehouse’s reliance on any representations and warranties other than those contained in the Merger Agreement. |
• | corporate organization, qualification to do business, good standing and corporate power; |
• | the capital structure of SVF 3 and Merger Sub, including shares authorized and outstanding as of the date of the Merger Agreement, the absence of arrangements that obligate SVF 3 and Merger Sub to issue or sell shares in the future, and information relating to SVF 3’s subsidiaries; |
• | requisite corporate authority to enter into the Merger Agreement and to complete the contemplated transactions; |
• | unanimous determination of the SVF 3 board of directors that the Business Combination is fair to, and in the best interests of, SVF 3 and its shareholders, and resolution to recommend adoption of the Merger Agreement to its shareholders; |
• | absence of conflicts with governing documents, applicable laws or certain agreements and instruments as a result of entering into the Merger Agreement or consummating the Business Combination; |
• | financial statements, reports and internal controls; |
• | absence of certain changes since SVF 3’s incorporation; |
• | absence of undisclosed liabilities and business activities, other than those pertaining to the Business Combination; |
• | litigation and proceedings; |
• | compliance with laws; |
• | SVF 3 is not, nor is it acting on behalf of, an “investment company” under the Investment Company Act, and SVF 3 constitutes an “emerging growth company” under the JOBS Act; |
• | the Trust Account; |
• | the Subscriptions and the sale of Forward Purchase Shares; |
• | the valid issuance of SVF 3 common stock under the Merger Agreement; |
• | the inapplicability of takeover statutes and the absence of any stockholder rights plan, “poison pill” or similar antitakeover agreement or plan from SVF 3’s Articles; |
• | taxes; and |
• | SVF 3’s reliance on any representations and warranties other than those contained in the Merger Agreement. |
• | the required approval by Warehouse unitholders will have been obtained with respect to the Merger Agreement and the Company Merger Agreement; |
• | the required approval by SVF 3 shareholders with respect to the Conditions Precedent Proposals will have been obtained with respect to the Conditions Precedent Proposals; |
• | the registration statement of which this proxy statement/prospectus forms a part will have become effective under the Securities Act and no stop order suspending the effectiveness of the registration statement will have been issued and no proceedings for that purpose will have been initiated or threatened by the SEC; |
• | no governmental entity of competent jurisdiction will have enacted, issued, promulgated, enforced or entered any law or governmental order (whether temporary, preliminary or permanent) that is in effect and makes illegal or otherwise prohibits the consummation of the transactions contemplated by the Merger Agreement; |
• | the consummation of the sale of the Post-Combination Company’s Class A common stock under the Subscription Agreements of at least $50,000,000; |
• | SVF 3 having at least $5,000,001 of net tangible assets (as determined in accordance with Rule 3a51-1(g)(1) of the Exchange Act) after giving effect to the Redemption Offer; and |
• | the effectiveness of the Company Reorganization. |
• | certain representations and warranties of Warehouse and Symbotic Holdings related to organization, good standing and qualification, capital structure, corporate authority and approval and brokers and finders will have been true and correct as of the date of the Merger Agreement and will be true and correct as of the Closing (except to the extent that any such representation and warranty expressly speaks as of a particular date or period of time, in which case such representation and warranty will be so true and correct as of such particular date or period of time), in each case, in all material respects; |
• | certain representations and warranties of Warehouse and Symbotic Holdings related to absence of certain changes will have been true and correct as of the date of the Merger Agreement and will be true and correct as of the Closing as though made as of the Closing (except to the extent that any such representation and warranty expressly speaks as of a particular date or period of time, in which case such representation and warranty will be so true and correct as of such particular date or period of time); |
• | other representations and warranties of Warehouse and Symbotic Holdings set forth will have been true and correct as of the date of the Merger Agreement and will be true and correct as of the Closing (except to the extent that any such representation and warranty expressly speaks as of a particular date or period of time, in which case such representation and warranty will be so true and correct as of such particular date or period of time), except for any failure of any such representation and warranty to be so true and correct (without giving effect to any qualification by materiality or Material Adverse Effect contained therein) that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; |
• | each of Warehouse and Symbotic Holdings will have performed or complied in all material respects with each of its obligations required to be performed or complied with by it under the Merger Agreement at or prior to the Closing; |
• | since the date of the Merger Agreement, there will not have occurred any effect that, individually or in the aggregate, has resulted in a Material Adverse Effect and is continuing as of the Closing; |
• | the receipt by SVF 3 and Merger Sub of a certificate signed on behalf of Warehouse and Symbotic Holdings by an officer of Warehouse certifying as to the satisfaction of certain closing conditions; and |
• | the delivery to SVF 3 by Warehouse and Symbotic Holdings of a counterpart of each of the transaction documents to which Warehouse, Symbotic Holdings or their affiliates is a party. |
• | certain representations and warranties of SVF 3 and Merger Sub related to organization, good standing and qualification, capital structure, corporate authority and approval, SVF 3’s Trust Account and brokers and finders will be true and correct (without giving effect to any qualification by materiality or Material Adverse Effect contained therein) as of the closing date (except to the extent that any such representation and warranty expressly speaks as of a particular date or period of time, in which case such representation and warranty will be so true and correct as of such particular date or period of time), in each case, in all material respects; |
• | other representations and warranties of SVF 3 and Merger Sub set forth in the Merger Agreement will be true and correct as of the closing date (except to the extent that any such representation and warranty expressly speaks as of a particular date or period of time, in which case such representation and warranty will be so true and correct as of such particular date or period of time), except for any failure of any such representation and warranty to be so true and correct (without giving effect to any qualification by materiality or material adverse effect set forth therein) that would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on SVF 3 or prevent, materially delay or materially impair the ability of SVF 3 or Merger Sub to consummate the transactions contemplated by the Merger Agreement; |
• | each of SVF 3 and Merger Sub will have performed or complied in all material respects with each of its obligations required to be performed or complied with by it under the Merger Agreement at or prior to the closing date; |
• | the receipt by Warehouse of a certificate signed by an executive officer of SVF 3 on behalf of SVF 3 and Merger Sub certifying as to the satisfaction of certain closing conditions; |
• | the shares of Class A common stock of the Post-Combination Company contemplated to be listed pursuant to the Merger Agreement will have been listed on NASDAQ and will be eligible for continued listing on NASDAQ immediately following the Closing (as if it were a new initial listing by an issuer that had never been listed prior to the Closing); |
• | resignations of certain directors and officers of SVF 3; |
• | the Closing SVF Cash being equal to or in excess of $350,000,000; |
• | the consummation of the transactions contemplated by the Forward Purchase Agreement; and |
• | the delivery by SVF 3 and Merger Sub to Warehouse of a counterpart of each of the transaction documents to which SVF 3, Merger Sub or their affiliates is a party to Warehouse. |
• | by mutual written consent of SVF 3 and Warehouse; |
• | by either SVF 3 or Warehouse if the Merger is not consummated on or before the date that is 180 days from the date of the Merger Agreement (as such date may be extended as a result of an adjournment of the Extraordinary General Meeting), which date may be extended for another 60 days upon written notice to the other party if the registration statement of which this proxy statement/prospectus is a part has been filed but is not effective on the date that is 14 days prior to the end of the initial 180-day period; provided that this termination right shall not be available to any party that has breached in any material respect its obligations in the Merger Agreement in any manner that shall have proximately contributed to the occurrence of the failure of a condition to the consummation of the Merger; |
• | by either SVF 3 or Warehouse if the requisite approval of the shareholders of SVF 3 is not obtained at the Extraordinary General Meeting, as may be adjourned or postponed from time to time; |
• | by either SVF 3 or Warehouse if any law or governmental order permanently restraining, enjoining or otherwise prohibiting consummation of the Merger will have been enacted, issued, promulgated, enforced or entered and will have become final and non-appealable, provided that the right to terminate the Merger Agreement will not be available to any party that has breached in any material respect its obligations set forth in the Merger Agreement in any manner that will have proximately contributed to the enactment, issuance, promulgation, enforcement or entry of such law or governmental order; provided further that the governmental entity issuing such governmental order has jurisdiction over the parties with respect to the transactions contemplated by the Merger Agreement; |
• | by SVF 3 if Warehouse has breached its representations, warranties, covenants or agreements in the Merger Agreement such that the closing conditions would not be satisfied (subject to a cure period); provided, that this termination right shall not be available to SVF 3 if it has breached in any material respect its obligations set forth in the Merger Agreement in any manner that shall have proximately contributed to the occurrence of the failure of a condition to the consummation of the Merger; |
• | by SVF 3 if Warehouse fails to deliver the PCAOB Audited Financials by February 28, 2022; |
• | by SVF 3 if the PCAOB Audited Financials contain material restatements, deviations, differences or modifications from the audited consolidated balance sheets of Warehouse and its subsidiaries as of September 26, 2020 and September 28, 2019 and the audited consolidated statement of operations, statements of comprehensive income (loss), statements of changes in redeemable preferred and common units and members’ deficit and statements of cash flows of Warehouse and its subsidiaries for the fiscal years then ended, together with the auditor’s reports thereon of the corresponding fiscal year that would reasonably be expected to significantly and negatively impact the equity value of Warehouse based on the methodology used to determine the equity value of Warehouse included in the non-binding term sheet dated August 2, 2021 between Warehouse and SVF 3, so long as SVF 3 notifies Warehouse of its decision to terminate within 15 days from receipt of the PCAOB Audited Financials; |
• | by SVF 3 if Warehouse fails to obtain the requisite approval of the unitholders of Warehouse within 48 hours after the registration statement of which this proxy statement/prospectus is a part becomes effective; or |
• | by Warehouse if SVF 3 or Merger Sub breaches its respective representations, warranties, covenants or agreements in the Merger Agreement such that the closing conditions would not be satisfied (subject to a cure period); provided, that this termination right shall not be available to Warehouse if it has breached in any material respect its obligations set forth in the Merger Agreement in any manner that shall have proximately contributed to the occurrence of the failure of a condition to the consummation of the Merger. |
• | financial institutions; |
• | governments or agencies or instrumentalities thereof; |
• | insurance companies; |
• | dealers or traders subject to a mark-to-market |
• | persons holding SVF 3 ordinary shares or Symbotic Inc. common stock as part of a “straddle,” hedge, integrated transaction or similar transaction, or persons deemed to sell the SVF 3 ordinary shares or Symbotic Inc. common stock under constructive sale provisions of the Code; |
• | U.S. holders whose functional currency is not the U.S. dollar; |
• | partnerships or other pass-through entities for U.S. federal income tax purposes or investors in such entities; |
• | holders who are controlled foreign corporations or passive foreign investment companies; |
• | regulated investment companies; |
• | real estate investment trusts; |
• | persons who acquired SVF 3 ordinary shares or Symbotic Inc. common stock through the exercise or cancellation of employee stock options or otherwise as compensation for their services; |
• | U.S. holders owning (actually or constructively) 10% or more of the total combined voting power of all classes of stock entitled to vote of, or 10% or more of the total value of all classes of shares of, SVF 3 or Symbotic Inc.; |
• | U.S. holders that hold their SVF 3 ordinary shares and Symbotic Inc. common stock through a non-U.S. broker or other non-U.S. intermediary; |
• | persons who are, or may become, subject to the expatriation provisions of the Code; |
• | persons that are subject to “applicable financial statement rules” under Section 451(b); or |
• | tax-exempt entities. |
• | an individual who is a citizen or resident of the United States; |
• | a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized in or under the laws of the United States, any state thereof or the District of Columbia; |
• | an estate the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; or |
• | a trust, if (i) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons (as defined in the Code) have authority to control all substantial decisions of the trust or (ii) it has a valid election in effect under Treasury regulations to be treated as a U.S. person. |
• | a statement that the Domestication is a Section 367(b) exchange; |
• | a complete description of the Domestication; |
• | a description of any stock, securities or other consideration transferred or received in the Domestication; |
• | a statement describing the amounts required to be taken into account for U.S. federal income tax purposes as income or as an adjustment to basis, earnings and profits or other tax attributes; |
• | a statement that the U.S. holder is making the election that includes (A) a copy of the information that the U.S. holder received from SVF 3 (or Symbotic Inc.) establishing and substantiating the U.S. holder’s all earnings and profits amount with respect to the U.S. holder’s SVF 3 ordinary shares, and (B) a representation that the U.S. holder has notified SVF 3 (or Symbotic Inc.) that the U.S. holder is making the election; and |
• | certain other information required to be furnished with the U.S. holder’s tax return or otherwise furnished pursuant to the Code or the Treasury Regulations. |
• | at least 75% of its gross income in such taxable year, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25% of the shares by value, is passive income; or |
• | at least 50% of its assets in such taxable year, ordinarily determined based on fair market value and averaged quarterly over the year, including its pro rata share of the assets of any corporation in which it is considered to own at least 25% of the shares by value, are held for the production of, or produce, passive income. |
• | the U.S. holder’s gain or excess distribution will be allocated ratably over the U.S. holder’s holding period for the SVF 3 ordinary shares; |
• | the amount of gain allocated to the U.S. holder’s taxable year in which the U.S. holder recognized the gain or received the excess distribution, or to the period in the U.S. holder’s holding period before the first day of the first taxable year in which SVF 3 is a PFIC, will be taxed as ordinary income; |
• | the amount of gain allocated to other taxable years (or portions thereof) of the U.S. holder and included in its holding period will be taxed at the highest tax rate in effect for that year and applicable to the U.S. holder; and |
• | the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such other taxable year of the U.S. holder. |
• | a non-resident alien individual (other than certain former citizens and residents of the U.S. subject to U.S. tax as expatriates); |
• | a foreign corporation; or |
• | an estate or trust that is not a U.S. holder; |
• | the gain is effectively connected with the conduct of a trade or business by the Non-U.S. holder within the United States (and, under certain income tax treaties, is attributable to a United States permanent establishment or fixed base maintained by the Non-U.S. holder); or |
• | we are or have been a “United States real property holding corporation” for U.S. federal income tax purposes at any time during the shorter of the five-year period ending on the date of disposition or the period that the Non-U.S. holder held Symbotic, Inc. common stock, and, in the case where shares of Symbotic, Inc. common stock are regularly traded on an established securities market, the Non-U.S. holder has owned, directly or constructively, more than 5% of Symbotic, Inc. common stock at any time within the shorter of the five-year period preceding the disposition or such Non-U.S. holder’s holding period for the shares of Symbotic, Inc. common stock. There can be no assurance that Symbotic, Inc. common stock will be treated as regularly traded on an established securities market for this purpose. |
Warehouse |
Post-Combination Company | |
Number and Qualification of Managers/Directors | ||
Warehouse is managed by a board of managers, consisting of one or more individuals. The number of managers on such board is fixed by the majority vote of the holders of Class A Units. Managers need not be residents of the State of New Hampshire, need not be a member of Warehouse and the current Chief Executive Officer of Warehouse may be a manager on the board. |
The number of directors shall be fixed exclusively by one or more resolutions adopted from time to time by the board of directors of the Post-Combination Company. | |
Structure of Board; Election and Removal of Managers/Directors | ||
Managers of the board are appointed by the holders of Class A Units by majority vote. By action of the holders of the Class A Units by majority vote, an additional manager may be Warehouse’s current Chief Executive officer. The holders of the Class A Units by a majority vote shall select a manager to serve as Chair of the board. A manager’s status as a manager may be terminated at any time by action of the holders of the Class A Units. |
Following the Business Combination, the members of the Post-Combination Company board of directors will be as elected by the holders of SVF 3 ordinary shares at the Extraordinary General Meeting pursuant to the Director Election Proposal. Directors shall be elected by a majority of the votes cast by holders of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors, provided that if, as of the 10th day preceding the date the Post-Combination Company first mails its notice of meeting for such meeting to the stockholders, the number of nominees exceeds the number of directors to be elected, the directors shall be elected by the vote of a plurality of the votes cast. |
Warehouse |
Post-Combination Company | |
Subject to special rights of the holders of one or more outstanding series of preferred stock to elect directors, any vacancy on the board of directors and any newly created directorships resulting from any increase in the number of directors shall be filled exclusively by the affirmative vote of a majority of the directors then in office, even though less than a quorum, or by a sole remaining director. Subject to the special rights of the holders of one or more outstanding series of preferred stock to elect directors, the board of directors or any individual director may be removed from office at any time, with or without cause, but only by the affirmative vote of the holders of at least two-thirds of the voting power of all of the then-outstanding shares of voting stock of the Post-Combination Company entitled to vote at an election of directors. | ||
Voting | ||
Each holder of Class A Units and Class C Units shall have the right to one vote per Class A Unit or Class C Unit, respectively, and shall be entitled to vote upon such matters and in such manner as provided in the Warehouse LLCA or by law. Except as required by applicable law, each class of Preferred Units shall be non-voting. | Each holder of Class A common stock or Class B common stock shall be entitled to one vote for each share of Class A common stock or Class B common stock, respectively, held of record by such holder. Each holder of Class V-1 common stock shall be entitled to one vote for each share of Class V-1 common stock held of record by such holder.Each holder of Class V-3 common stock shall be entitled to three votes for each share of Class V-3 common stock held of record by such holder. | |
Supermajority Voting Provisions | ||
Not applicable. |
The board of directors or any individual director may be removed from office at any time, with or without cause, but only by the affirmative vote of the holders of at least two-thirds of the voting power of all of the then-outstanding shares of voting stock of the Post-Combination Company entitled to vote at an election of directors.The adoption, amendment or repeal of the Proposed Bylaws by the stockholders of the Corporation shall require the affirmative vote of the holders of at least two-thirds of the voting power of all of the then-outstanding shares of voting stock of the Post-Combination Company entitled to vote generally in an election of directors. |
Warehouse |
Post-Combination Company | |
The following provisions in the Proposed Charter may be amended, altered, repealed or rescinded, in whole or in part, or any provision inconsistent therewith or herewith may be adopted, only by the affirmative vote of the holders of at least two-thirds of the total voting power of all the then-outstanding shares of stock of the Post-Combination Company entitled to vote thereon, voting together as a single class: (a) Section 4.03(b) through Section 4.04; and (b) Article V through Article XIV. | ||
Vacancies on the Board of Managers/ Directors | ||
Any vacancy on the board as a result of the removal, resignation or death of a manager shall be filled by action of the holders of the Class A Units by majority vote; provided, that until such time that such vacancy is filled, the managers then in office shall constitute the entire board and shall manage the affairs of Warehouse in accordance with the Warehouse LLCA. | Subject to the special rights of the holders of one or more outstanding series of preferred stock to elect directors, except as otherwise provided by law, any vacancies on the board of directors resulting from death, resignation, disqualification, retirement, removal or other causes and any newly created directorships resulting from any increase in the number of directors shall be filled exclusively by the affirmative vote of a majority of the directors then in office, even though less than a quorum, or by a sole remaining director (other than any directors elected by the separate vote of one or more outstanding series of Preferred Stock), and shall not be filled by the stockholders. | |
Amendment to LLCA/Certificate of Incorporation | ||
Section 304-C:67, II(a) of the NH LLC Act provides that the affirmative vote of all members would be required to amend a certificate of formation of an LLC, unless Warehouse’s operating agreement provides otherwise. The Warehouse LLCA does not specifically address amendment to the Certificate of Formation. | The following provisions in the Proposed Charter may be amended, altered, repealed or rescinded, in whole or in part, or any provision inconsistent therewith or herewith may be adopted, only by the affirmative vote of the holders of at least two-thirds of the total voting power of all the then-outstanding shares of stock of the Post-Combination Company entitled to vote thereon, voting together as a single class: (a) Section 4.03(b) relating to preferred stock, (b) Section 4.04 relating to paired common stock, (c) Article V relating to conversion, (d) Article VI relating to incorporator and initial directors, (e) Article VII relating to the board of directors, (f) Article VIII relating to stockholders, (g) Article IX relating to liability, (h) Article X relating to indemnification, (i) Article XI relating to business combinations, (j) Article XII relating to forum selection, (k) Article XIII relating to corporate opportunity and (l) Article XIV relating to amendments. |
Warehouse |
Post-Combination Company | |
For any other amendment, the Proposed Charter applies Delaware law, which allows an amendment to a charter generally with the affirmative vote of a majority of the outstanding shares of voting stock entitled to vote thereon, voting together as a single class. | ||
Unitholder/Stockholder Action by Written Consent | ||
Any action required or permitted to be taken at a meeting of the board or the members may be taken without a meeting if, prior to the action, written consents describing the action to be taken are signed by the minimum number of managers or members that would be necessary to authorize the action at a meeting at which all managers or members entitled to vote thereon were present and voting. | Except with respect to the rights of any preferred stock provide in a certificate of designation from time to time, the Proposed Charter provides that any action required or permitted to be taken by the stockholders of the Post-Combination Company must be effected at any annual or special meeting of stockholders may not be taken by written consent in lieu of a meeting. | |
Limitation of Liability of Managers/Directors and Officers | ||
No manager or any officer shall be personally liable, as such, for any action taken or omitted from being taken unless: (i) such manager or officer willfully breached or failed to perform the duties of his or her office; and (ii) the breach or failure to perform constituted recklessness, self-dealing or willful misconduct. The foregoing shall not apply to any responsibility or liability under a criminal statute or liability for the payment of taxes under federal, state, or local law. | A director of the Post-Combination Company shall not be personally liable to Post-Combination Company or its stockholders for monetary damages for breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL. The amendment, restatement, amendment and restatement, other modification or repeal of this provision in the Proposed Charter shall not adversely affect any right or protection of a director of the Post-Combination Company with respect to any act or omission occurring prior to such amendment, restatement, amendment and restatement, other modification or repeal. If the DGCL is amended after approval by the stockholders of this provision in the Proposed Charter to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL as so amended. | |
Indemnification of Managers/Directors, Officers, Employees and Agents | ||
In accordance with the NH LLC Act, Warehouse shall indemnify and hold harmless any member, any manager, employee, agent or affiliate thereof and each officer of Warehouse (individually, in each case, an “indemnitee”) to the fullest extent permitted by law from and against any and all losses, claims, demands, costs, damages, liabilities (joint or several), expenses of any nature (including reasonable attorneys’ fees and disbursements), judgments, fines, settlements and other amounts arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal, administrative or investigative, in which such indemnitee may be involved or threatened to be | The Post-Combination Company will indemnify any person for any proceeding by reason of being a director or officer of the Post-Combination Company or, while a director or officer, is or was serving at the request of the Post-Combination Company as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, employee benefit plan, fund, other enterprise or nonprofit entity if such proceeding or part thereof was authorized by Post-Combination Company’s board of directors. The right to indemnification covers all liability and loss suffered and expenses (including attorneys’ fees, |
Warehouse |
Post-Combination Company | |
involved, as a party or otherwise, arising out of or incidental to the business or activities of or relating to Warehouse, regardless of whether such indemnitee continues to be a member, or a member, officer, employee, agent or an affiliate thereof, or an officer of Warehouse at the time any such liability or expense is paid or incurred; provided, however, that the foregoing shall not eliminate or limit the liability of any indemnitee, and Warehouse shall not indemnify any indemnitee (i) for any breach of such indemnitee’s duty of loyalty to Warehouse or the members, (ii) for acts or omissions which involve gross negligence, willful misconduct or a knowing violation of law or the LLCA, or (iii) for any transaction from which such indemnitee received any improper personal benefit; provided, further, that, except with respect to proceedings to enforce rights of indemnification or advancement pursuant to this Article IX, Warehouse shall indemnify any indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the board of managers. Section 304-C:116, I of the NH LLC Act provides that an LLC may provide indemnification to a member, manager or other person if the person being indemnified conducted himself/herself in accordance with contractual good faith and if that same person reasonably believed his/her conduct was not opposed to the best interest of the LLC. Additionally, a restriction not specifically included in the LLCA but covered by Section 304-C:116, II(a) of the NH LLC Act, is that an LLC may not indemnify a member, manager or other person in connection with a proceeding by or in the right of the LLC in which the person was judged liable to the LLC. | judgments, fines, Employee Retirement Income Security Act of 1974 (ERISA) excise taxes and penalties and amounts paid in settlement) reasonably incurred by such indemnitee in connection with such proceeding. It also includes the right to be paid by Post-Combination Company the expenses (including attorney’s fees) incurred in defending or otherwise participating in any such proceeding in advance of its final disposition; provided, however, that, if required by law, an advancement of expenses will be made only upon delivery to Post-Combination Company of an undertaking, by or on behalf of the indemnitee, to repay all amounts so advanced if it will ultimately be determined that the indemnitee is not entitled to be indemnified. Such rights will continue as to an indemnitee who has ceased to be a director, officer, employee or agent and will inure to the benefit of his or her heirs, executors and administrators. | |
Dividends, Distributions and Unit/Stock Repurchases | ||
The board has the authority to retain and reinvest the cash from Warehouse’s operations and dispositions of its assets. Generally, distributions to unitholders of Warehouse’s cash or other assets shall be made only at such times and in such amounts as authorized by the board, and the board shall have no obligation or duty to distribute cash or other assets to the members prior to the dissolution and liquidation of Warehouse. Distributions are made to members in accordance with Article V of the LLCA, which generally provides for preference to holders of Class B-2 Preferred Units, Class B-1 Preferred Units, and then Class B Preferred Units. |
Subject to the rights of the holders of preferred stock, the holders of the Post-Combination Company’s Class A common stock and Class B common stock, as such, shall be entitled to the payment of dividends and other distributions of cash, stock or property on the Class A common stock and Class B common stock, respectively, when, as and if declared by the board of directors in accordance with law. Except with respect to certain stock dividends, dividends of cash or property may not be declared or paid on shares of the Post-Combination Company’s Class V-1 common stock or Class V-3 common stock. |
Warehouse |
Post-Combination Company | |
Liquidation | ||
The proceeds of liquidation shall be distributed in the following order and priority: first, to creditors of Warehouse, including members, or their respective affiliates, who are creditors, to the extent permitted by law, in satisfaction of liabilities of Warehouse (whether by payment or the making of reasonable provision for payment thereof) other than liabilities for which reasonable provision for payment has been made; and second to the holders of units in accordance with Section 5.2(a) of the LLCA. | The Proposed Charter provides that, in the event of any liquidation, dissolution or winding up of the Post-Combination Company, the funds and assets of the Post-Combination Company that may be legally distributed to the its stockholders shall be distributed among the holders of shares of the Post-Combination Company’s Class A common stock and Class B common stock pro rata in accordance with the number of shares of Class A common stock and Class B common stock held by each such holder, subject to the rights and preferences of any holders of any shares of any outstanding series of preferred stock. Without limiting the rights of the holders of the Post-Combination Company’s Class V-1 common stock and Class V-3 common stock to exchange their shares of Class V-1 common stock and Class V-3 common stock, respectively, together with the corresponding New Symbotic Holdings Common Units, for shares of Class A common stock pursuant to the New Symbotic Holdings LLC Agreement, the holders of shares of Class V-1 common stock and Class V-3 common stock shall not be entitled to receive any assets of the Post-Combination Company in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Post-Combination Company. |
• | 3,000,000,000 shares of Class A common stock; |
• | 8,000,000 shares of Class B common stock; |
• | 1,000,000,000 shares of Class V-1 common stock; |
• | 450,000,000 shares of Class V-3 common stock; and |
• | 50,000,000 shares of undesignated preferred stock. |
SVF 3 SVFC Class A Ordinary shares |
Warehouse Units |
|||||||||||||||
Period |
High |
Low |
Dividends Declared |
Dividends Declared |
||||||||||||
2022: |
$ | — | $ | — | ||||||||||||
First Quarter* |
$ | 10.08 | $ | 9.76 | ||||||||||||
2021: |
$ | — | $ | — | ||||||||||||
Fourth Quarter |
$ | 10.24 | $ | 9.75 | ||||||||||||
Third Quarter |
$ | 9.98 | $ | 9.65 | ||||||||||||
Second Quarter |
$ | 10.70 | $ | 9.86 | ||||||||||||
First Quarter |
$ | 10.50 | $ | 9.82 |
* | Through March 22, 2022. |
Audited Financial Statements of SVF Investment Corp. 3 |
||||
F-2 |
||||
Consolidated Financial Statements: |
||||
F-4 |
||||
F-5 |
||||
F-6 | ||||
F-7 |
||||
F-8 |
||||
Unaudited Consolidated Financial Statements Warehouse Technologies LLC and Subsidiaries: |
||||
F-22 | ||||
F-23 | ||||
F-24 | ||||
F-25 | ||||
F-26 | ||||
F-27 | ||||
Audited Consolidated Financial Statements of Warehouse Technologies LLC and Subsidiaries: |
||||
F-36 |
||||
F-37 |
||||
F-38 |
||||
F-39 |
||||
F-40 |
||||
F-41 |
||||
F-42 |
December 31, 2021 |
December 31, 2020 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash |
$ | $ | — | |||||
Prepaid expenses - current |
||||||||
Total current assets |
||||||||
Prepaid expenses - long term |
— | |||||||
Investments held in Trust Account |
— | |||||||
Deferred offering costs associated with the initial public offering |
— | |||||||
Total Assets |
$ |
$ |
||||||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued expenses |
||||||||
Due to related party |
— | |||||||
Note payable—related party |
— | |||||||
Total current liabilities |
||||||||
Deferred underwriting commissions |
— | |||||||
Total liabilities |
||||||||
Commitments and Contingencies |
||||||||
Class A ordinary shares subject to possible redemption, $ - |
— | |||||||
Shareholders’ Equity (Deficit) |
||||||||
Preference shares, $ |
— | |||||||
Class A ordinary shares, $ - |
— | |||||||
Class B ordinary shares, $ |
||||||||
Additional paid-in capital |
— | |||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Total shareholders’ equity (deficit) |
( |
) | ||||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) |
$ |
$ |
||||||
For the Year Ended December 31, 2021 |
For the period from December 11, 2020 (inception) through December 31, 2020 |
|||||||
General and administrative expenses |
$ | $ | ||||||
General and administrative expenses—related party |
— | |||||||
Loss from operations |
( |
) | ( |
) | ||||
Other income |
||||||||
Income from investments held in Trust Account |
— | |||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Basic and diluted weighted average shares outstanding of Class A ordinary shares subject to possible redemption |
— | |||||||
Basic and diluted net loss per ordinary share, Class A ordinary shares subject to possible redemption |
$ | ( |
) | $ | — | |||
Basic and diluted weighted average shares outstanding of non-redeemable ordinary shares |
(1) | |||||||
Basic and diluted net loss per ordinary share, non-redeemable ordinary shares |
$ | ( |
) | $ | ( |
) | ||
(1) | This number excludes an aggregate of up to |
Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Total Shareholders’ Equity (Deficit) |
|||||||||||||||||||||||||
Class A |
Class B |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance—December 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||
Sale of private placement shares to Sponsor in private placement |
— | — | — | |||||||||||||||||||||||||
Accretion of Class A ordinary shares subject to redemption |
— | — | ( |
) | $ | ( |
) | ( |
) | |||||||||||||||||||
Net loss |
— | — | — | — | — | $ | ( |
) | ( |
) | ||||||||||||||||||
Balance—December 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
FOR THE PERIOD FROM DECEMBER 11, 2020 (INCEPTION) THROUGH DECEMBER 31, 2020 |
||||||||||||||||||||||||||||
Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Total Shareholders’ Equity (Deficit) |
|||||||||||||||||||||||||
Class A |
Class B |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance—December 11, 2020 (inception) |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||
Issuance of Class B ordinary shares to Sponsor |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Balance—December 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||
For the Year Ended December 31, 2021 |
For the period from December 11, 2020 (inception) through December 31, 2020 |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile Net loss to net cash used in operating activities: |
||||||||
Income from investments held in Trust Account |
( |
) | — | |||||
General and administrative expenses paid by related party under note payable |
— | |||||||
Changes in operating assets and liabilities: |
||||||||
Prepaid expenses |
( |
) | ||||||
Accounts payable |
— | |||||||
Accrued expenses |
— | |||||||
Due to related party |
— | |||||||
Net cash used in operating activities |
( |
) | — | |||||
Cash Flows from Investing Activities: |
||||||||
Cash deposited in Trust Account |
( |
) | — | |||||
Net cash used in investing activities |
( |
) | — | |||||
Cash Flows from Financing Activities: |
||||||||
Repayment of note payable to related party |
( |
) | — | |||||
Proceeds received from initial public offering, gross |
— | |||||||
Proceeds received from private placement |
— | |||||||
Offering costs paid |
( |
) | — | |||||
Net cash provided by financing activities |
— | |||||||
Net decrease in cash |
— | |||||||
Cash—beginning of the period |
— | |||||||
Cash—end of the period |
$ |
$ |
— |
|||||
Supplemental disclosure of noncash investing and financing activities: |
||||||||
Offering costs included in accounts payable |
$ | $ | ||||||
Offering costs included in accrued expenses |
$ | $ | ||||||
Offering costs paid by related party under note payable—Related Party |
$ | $ | ||||||
Prepaid expenses paid by Sponsor in exchange for issuance of Class B ordinary shares |
$ | — | $ | |||||
Offering costs included in due to related party |
$ | $ | — | |||||
Reversal of offering costs included in accrued expenses in prior year |
$ | $ | — | |||||
Prepaid expenses paid by related party through note payable |
$ | $ | — | |||||
Outstanding accounts payable balance paid by related party under note payable |
$ | $ | — | |||||
Deferred underwriting commissions |
$ | $ | — |
• | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
For the Year Ended December 31, 2021 |
For the period from December 11, 2020 (inception) through December 31, 2020 |
|||||||||||||||
Class A ordinary shares |
non-redeemable ordinary shares |
Class A ordinary shares |
non-redeemable ordinary shares |
|||||||||||||
Basic and diluted net loss per ordinary share: |
||||||||||||||||
Numerator: |
||||||||||||||||
Allocation of net loss |
$ | ( |
) | $ | ( |
) | $ | — | $ | ( |
) | |||||
Denominator: |
||||||||||||||||
Basic and diluted weighted average ordinary share outstanding |
(1) | |||||||||||||||
Basic and diluted net loss per ordinary share |
$ | ( |
) | $ | ( |
) | $ | — | $ | ( |
) | |||||
(1) | This number excludes an aggregate of up to |
As of December 31, 2021 |
||||
Gross proceeds |
$ | |||
Less: |
||||
Class A ordinary shares issuance costs |
( |
) | ||
Plus: |
||||
Accretion of carrying value to redemption value |
( |
) | ||
Class A ordinary shares subject to possible redemption |
$ | |||
Description |
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
|||||||||
Investments held in Trust Account—US Treasury securities |
$ | $ | $ |
December 25, 2021 |
September 25, 2021 |
|||||||
ASSETS |
| |||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 363,047 | $ | 156,634 | ||||
Accounts receivable |
13,291 | 63,370 | ||||||
Inventories |
44,875 | 33,561 | ||||||
Deferred expenses, current |
502 | 489 | ||||||
Prepaid expenses and other current assets |
11,781 | 6,366 | ||||||
|
|
|
|
|||||
Total current assets |
433,496 | 260,420 | ||||||
Property and equipment, at cost |
39,751 | 37,177 | ||||||
Less: Accumulated depreciation |
(19,761 | ) | (18,560 | ) | ||||
|
|
|
|
|||||
Property and equipment, net |
19,990 | 18,617 | ||||||
Intangible assets, net |
1,035 | 1,164 | ||||||
Other long-term assets |
340 | 334 | ||||||
|
|
|
|
|||||
Total assets |
$ | 454,861 | $ | 280,535 | ||||
|
|
|
|
|||||
LIABILITIES, REDEEMABLE PREFERRED AND COMMON UNITS AND MEMBERS’ DEFICIT |
| |||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 34,463 | $ | 28,018 | ||||
Accrued expenses |
30,858 | 31,131 | ||||||
Sales tax payable |
15,677 | 18,405 | ||||||
Deferred revenue, current |
253,581 | 259,418 | ||||||
|
|
|
|
|||||
Total current liabilities |
334,579 | 336,972 | ||||||
Deferred revenue, long-term |
242,787 | 216,538 | ||||||
Other long-term liabilities |
3,987 | 3,993 | ||||||
|
|
|
|
|||||
Total liabilities |
581,353 | 557,503 | ||||||
|
|
|
|
|||||
Commitments and contingencies (Note 8) |
— | — | ||||||
Redeemable preferred and common units: |
||||||||
Preferred units, Class B-1, 2 units authorized; 1 unit issued and outstanding at December 25, 2021 and September 25, 2021 |
235,182 | 232,278 | ||||||
Preferred units, Class B, 1 unit authorized, issued, and outstanding at December 25, 2021 and September 25, 2021 |
464,744 | 459,007 | ||||||
Common units, Class C, 428,571 units authorized, issued, and outstanding at December 25, 2021 and September 25, 2021 |
152,195 | 144,975 | ||||||
Members’ deficit: |
||||||||
Common voting units, Class A, 7,071,424 units authorized; 6,444,373 and 5,997,632 units issued and outstanding at December 25, 2021 and September 25, 2021, respectively |
217,604 | 16,809 | ||||||
Additional paid-in capital |
— | 26,999 | ||||||
Accumulated deficit |
(1,193,831 | ) | (1,154,944 | ) | ||||
Accumulated other comprehensive loss |
(2,386 | ) | (2,092 | ) | ||||
|
|
|
|
|||||
Total members’ deficit |
(978,613 | ) | (1,113,228 | ) | ||||
|
|
|
|
|||||
Total liabilities, redeemable preferred and common units, and members’ deficit |
$ | 454,861 | $ | 280,535 | ||||
|
|
|
|
For the Three Months Ended |
||||||||
December 25, 2021 |
December 26, 2020 |
|||||||
Revenue: |
||||||||
Systems |
$ | 71,222 | $ | — | ||||
Software subscriptions |
975 | 624 | ||||||
Operation services |
4,867 | 4,918 | ||||||
|
|
|
|
|||||
Total revenue |
77,064 | 5,542 | ||||||
Cost of revenue: |
||||||||
Systems |
56,485 | 37 | ||||||
Software subscriptions |
810 | 791 | ||||||
Operation services |
5,301 | 5,279 | ||||||
|
|
|
|
|||||
Total cost of revenue |
62,596 | 6,107 | ||||||
|
|
|
|
|||||
Gross profit (loss) |
14,468 | (565 | ) | |||||
|
|
|
|
|||||
Operating expenses: |
||||||||
Research and development expenses |
22,184 | 14,452 | ||||||
Selling, general, and administrative expenses |
15,359 | 11,169 | ||||||
|
|
|
|
|||||
Total operating expenses |
37,543 | 25,621 | ||||||
|
|
|
|
|||||
Operating loss |
(23,075 | ) | (26,186 | ) | ||||
|
|
|
|
|||||
Other income/(expense), net |
22 | (17 | ) | |||||
|
|
|
|
|||||
Loss before income tax |
(23,053 | ) | (26,203 | ) | ||||
Income tax benefit (expense) |
— | — | ||||||
|
|
|
|
|||||
Net loss |
(23,053 | ) | (26,203 | ) | ||||
Returns on redeemable Preferred Units |
(8,641 | ) | (8,229 | ) | ||||
|
|
|
|
|||||
Loss attributable to Class A Units and Class C Units |
$ | (31,694 | ) | $ | (34,432 | ) | ||
|
|
|
|
|||||
Loss per unit attributable to Class A Units and Class C Units, basic and diluted (Note 9) |
$ | (4.88 | ) | $ | (5.36 | ) | ||
|
|
|
|
|||||
Weighted average units used in computing loss per unit attributable to Class A Units and Class C Units, basic and diluted (Note 9) |
6,494,932 | 6,426,203 | ||||||
|
|
|
|
For the Three Months Ended |
||||||||
December 25, 2021 |
December 26, 2020 |
|||||||
Net loss |
$ | (23,053 | ) | $ | (26,203 | ) | ||
Foreign currency translation adjustments |
(294 | ) | 1,253 | |||||
|
|
|
|
|||||
Total comprehensive loss |
$ | (23,347 | ) | $ | (24,950 | ) | ||
|
|
|
|
Three Months Ended December 25, 2021 |
||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Preferred and Common Units |
Additional Paid-in Capital |
Accumulated Other Comprehensive Loss |
Accumulated Deficit |
Total Members’ Deficit |
||||||||||||||||||||||||||||||||||||||||||||
Common Units, Class C |
Preferred Units, Class B-1 |
Preferred Units, Class B |
Common Voting Units, Class A |
|||||||||||||||||||||||||||||||||||||||||||||
Units |
Amount |
Units |
Amount |
Units |
Amount |
Units |
Amount |
|||||||||||||||||||||||||||||||||||||||||
Balance at September 25, 2021 |
428,571 | $ | 144,975 | 1 | $ | 232,278 | 1 | $ | 459,007 | 5,997,632 | $ | 16,809 | $ | 26,999 | $ | (2,092 | ) | $ | (1,154,944 | ) | $ | (1,113,228 | ) | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | — | — | — | (23,053 | ) | (23,053 | ) | ||||||||||||||||||||||||||||||||||
Granted |
6,068 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Forfeited |
(6,068 | ) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Unit-based compensation |
— | 27 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Accretion of Class C Units to redemption value |
— | 7,193 | — | — | — | — | — | — | — | — | (7,193 | ) | (7,193 | ) | ||||||||||||||||||||||||||||||||||
Exercise of warrants |
— | — | — | — | — | — | 446,741 | 200,795 | (26,999 | ) | — | — | 173,796 | |||||||||||||||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | — | — | — | — | (294 | ) | — | (294 | ) | ||||||||||||||||||||||||||||||||||
Preferred Return |
— | — | — | 2,904 | — | 5,737 | — | — | — | — | (8,641 | ) | (8,641 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance at December 25, 2021 |
428,571 | $ | 152,195 | 1 | $ | 235,182 | 1 | $ | 464,744 | 6,444,373 | $ | 217,604 | $ | — | $ | (2,386 | ) | $ | (1,193,831 | ) | $ | (978,613 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 26, 2020 |
||||||||||||||||||||||||||||||||||||||||||||
Redeemable Preferred and Common Units |
Accumulated Other Comprehensive Loss |
Accumulated Deficit |
Total Members’ Deficit |
|||||||||||||||||||||||||||||||||||||||||
Common Units, Class C |
Preferred Units, Class B-1 |
Preferred Units, Class B |
Common Voting Units, Class A |
|||||||||||||||||||||||||||||||||||||||||
Units |
Amount |
Units |
Amount |
Units |
Amount |
Units |
Amount |
|||||||||||||||||||||||||||||||||||||
Balance at September 26, 2020 |
428,571 | $ | 2,025 | 1 | $ | 221,217 | 1 | $ | 437,149 | 5,997,632 | $ | 16,809 | $ | (4,418 | ) | $ | (856,858 | ) | $ | (844,467 | ) | |||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | — | — | (26,203 | ) | (26,203 | ) | |||||||||||||||||||||||||||||||
Granted |
12,000 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Forfeited |
(12,000 | ) | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Unit-based compensation |
— | 17 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Accretion of Class C Units to redemption value |
— | (47 | ) | — | — | — | — | — | — | — | 47 | 47 | ||||||||||||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | — | — | — | 1,253 | — | 1,253 | |||||||||||||||||||||||||||||||||
Preferred Return |
— | — | — | 2,765 | 5,464 | — | — | — | (8,229 | ) | (8,229 | ) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balance at December 26, 2020 |
428,571 | $ | 1,995 | 1 | $ | 223,982 | 1 | $ | 442,613 | 5,997,632 | $ | 16,809 | $ | (3,165 | ) | $ | (891,243 | ) | $ | (877,599 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
||||||||
December 25, 2021 |
December 26, 2020 |
|||||||
Cash flows from operating activities: |
||||||||
Net loss |
$ | (23,053 | ) | $ | (26,203 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||
Depreciation and amortization |
1,358 | 941 | ||||||
Foreign currency losses |
(8 | ) | 26 | |||||
Loss on abandonment of assets |
3,469 | — | ||||||
Unit-based compensation |
27 | 17 | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(10,424 | ) | (64,658 | ) | ||||
Inventories |
(11,522 | ) | (999 | ) | ||||
Prepaid expenses and other current assets |
5,415 | 1,195 | ||||||
Deferred expenses |
(13 | ) | (2,555 | ) | ||||
Other long-term assets |
7 | (66 | ) | |||||
Accounts payable |
7,059 | (757 | ) | |||||
Accrued expenses |
(9,047 | ) | (2,121 | ) | ||||
Deferred revenue |
76,740 | 134,413 | ||||||
Other long-term liabilities |
(8 | ) | 6,657 | |||||
|
|
|
|
|||||
Net cash and cash equivalents provided by operating activities |
40,000 | 45,890 | ||||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(7,505 | ) | (1,199 | ) | ||||
|
|
|
|
|||||
Net cash and cash equivalents used in investing activities |
(7,505 | ) | (1,199 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of Class A Common Units |
173,796 | — | ||||||
|
|
|
|
|||||
Net cash and cash equivalents provided by financing activities |
173,796 | — | ||||||
|
|
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents |
122 | 70 | ||||||
|
|
|
|
|||||
Net increase in cash and cash equivalents |
206,413 | 44,761 | ||||||
Cash and cash equivalents — beginning of period |
156,634 | 58,264 | ||||||
|
|
|
|
|||||
Cash and cash equivalents — end of period |
$ | 363,047 | $ | 103,025 | ||||
|
|
|
|
|||||
Non-cash financing activities: |
||||||||
Preferred Return, Class B-1 |
2,904 | 2,765 | ||||||
Preferred Return, Class B |
5,737 | 5,464 |
December 25, 2021 |
September 25, 2021 |
|||||||
Accounts receivable |
$ | 13,291 | $ | 63,370 | ||||
Contract liabilities |
$ | 496,368 | $ | 475,956 |
December 25, 2021 |
September 25, 2021 |
|||||||
Raw materials and components |
$ | 43,358 | $ | 33,065 | ||||
Finished goods |
1,517 | 496 | ||||||
|
|
|
|
|||||
Total inventories |
$ | 44,875 | $ | 33,561 | ||||
|
|
|
|
December 25, 2021 |
September 25, 2021 |
|||||||
Computer equipment and software, furniture and fixtures, and test equipment |
$ | 36,847 | $ | 34,268 | ||||
Leasehold improvements |
2,904 | 2,909 | ||||||
|
|
|
|
|||||
Total property and equipment |
39,751 | 37,177 | ||||||
Less accumulated depreciation |
(19,761 | ) | (18,560 | ) | ||||
|
|
|
|
|||||
Property and equipment, net |
$ | 19,990 | $ | 18,617 | ||||
|
|
|
|
December 25, 2021 |
September 25, 2021 |
|||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||
Money market funds |
$ | 155,614 | $ | — | $ | — | $ | 155,614 | $ | 152,204 | $ | — | $ | — | $ | 152,204 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total assets |
$ | 155,614 | $ | — | $ | — | $ | 155,614 | $ | 152,204 | $ | — | $ | — | $ | 152,204 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
December 25, 2021 |
December 26, 2020 |
|||||||
Balance at beginning of period |
$ | 3,735 | $ | — | ||||
Provision |
920 | — | ||||||
Warranty usage |
(685 | ) | — | |||||
|
|
|
|
|||||
Balance at end of period |
$ | 3,970 | $ | — | ||||
|
|
|
|
December 25, 2021 |
December 26, 2020 |
|||||||
Basic and diluted loss attributable to Class A and Class C Units: |
||||||||
Net loss |
$ | (23,053 | ) | $ | (26,203 | ) | ||
Return redeemable Preferred Units |
(8,641 | ) | (8,229 | ) | ||||
|
|
|
|
|||||
Loss attributable to Class A Units and Class C Units |
$ | (31,694 | ) | $ | (34,432 | ) | ||
|
|
|
|
|||||
Weighted average units used in computing loss per unit attributable to Class A Units and Class C Units, basic and diluted |
6,494,932 | 6,426,203 | ||||||
|
|
|
|
|||||
Loss per unit attributable to Class A Units and Class C Units, basic and diluted |
$ | (4.88 | ) | $ | (5.36 | ) |
Class C Units |
||||
Balance at September 25, 2021 |
428,571 | |||
Granted |
6,068 | |||
Redeemed |
— | |||
Forfeited |
(6,068 | ) | ||
|
|
|||
Balance at December 25, 2021 |
428,571 | |||
|
|
|||
Vested at December 25, 2021 |
350,153 |
December 25, 2021 |
September 25, 2021 |
|||||||
Dividend yield |
— | % | — | % | ||||
Volatility (a) |
40.00 | % | 40.00 | % | ||||
Risk-free interest rate (b) |
0.71 | % | 0.29 | % | ||||
Expected term (years) (c) |
2.00 | 2.00 |
(a) | The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the Class C Units. |
(b) | The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the Class C Units. |
(c) | The expected term is based on estimated liquidity event timing, which is based on a combination of scenarios with one being based on the probability of an initial public offering and the other based on the expected timing of a potential exit event under a remain private scenario. |
VAP Units |
||||
Balance at September 25, 2021 |
4,039,620 | |||
Granted |
— | |||
Exercised |
— | |||
Forfeited |
(76,878 | ) | ||
|
|
|||
Balance at December 25, 2021 |
3,962,742 | |||
|
|
|||
Vested at December 25, 2021 |
3,747,359 | |||
Vested and exercisable at December 25, 2021 |
2,498,239 |
Selected Assumption |
||||
Dividend yield |
0 | % | ||
Volatility (a) |
43.00 | % | ||
Risk-free interest rate (b) |
1.65 | % | ||
Expected term (years) (c) |
10.00 |
(a) | The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the Warrants. |
(b) | The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the Warrants. |
(c) | The expected term is based on the contractual term of the Warrants. |
December 25, 2021 |
December 26, 2020 |
|||||||
United States |
$ | 76,238 | $ | 4,514 | ||||
Canada |
826 | 1,028 | ||||||
|
|
|
|
|||||
Total revenue |
$ | 77,064 | $ | 5,542 | ||||
|
|
|
|
|||||
Percentage of revenue generated outside of the United States |
1 | % | 19 | % |
December 25, 2021 |
September 25, 2021 |
|||||||
United States |
$ | 18,869 | $ | 17,355 | ||||
Canada |
1,121 | 1,262 | ||||||
|
|
|
|
|||||
Total property and equipment, net |
$ | 19,990 | $ | 18,617 | ||||
|
|
|
|
|||||
Percentage of property and equipment, net held outside of the United States |
6 | % | 7 | % |
September 25, 2021 |
September 26, 2020 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 156,634 | $ | 58,264 | ||||
Accounts receivable |
63,370 | 2,489 | ||||||
Inventories |
33,561 | 16,454 | ||||||
Deferred expenses, current |
489 | 131,689 | ||||||
Prepaid expenses and other current assets |
6,366 | 2,630 | ||||||
|
|
|
|
|||||
Total current assets |
260,420 | 211,526 | ||||||
Property and equipment, at cost |
37,177 | 36,001 | ||||||
Less: Accumulated depreciation |
(18,560 | ) | (26,815 | ) | ||||
|
|
|
|
|||||
Property and equipment, net |
18,617 | 9,186 | ||||||
Intangible assets, net |
1,164 | 1,540 | ||||||
Other long-term assets |
334 | 2,701 | ||||||
|
|
|
|
|||||
Total assets |
$ | 280,535 | $ | 224,953 | ||||
|
|
|
|
|||||
LIABILITIES, REDEEMABLE PREFFERED AND COMMON UNITS AND MEMBERS’ DEFICIT |
| |||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 28,018 | $ | 5,962 | ||||
Accrued expenses |
31,131 | 7,743 | ||||||
Sales tax payable |
18,405 | 12,076 | ||||||
Deferred revenue, current |
259,418 | 120,779 | ||||||
|
|
|
|
|||||
Total current liabilities |
336,972 | 146,560 | ||||||
Deferred revenue, long-term |
216,538 | 260,000 | ||||||
Other long-term liabilities |
3,993 | 2,469 | ||||||
|
|
|
|
|||||
Total liabilities |
557,503 | 409,029 | ||||||
|
|
|
|
|||||
Commitments and contingencies (Note 12) |
— | — | ||||||
Redeemable preferred and common units: |
||||||||
Preferred units, Class B-1, 2 units authorized; 1 unit issued and outstanding at September 25, 2021 and September 26, 2020 |
232,278 | 221,217 | ||||||
Preferred units, Class B, 1 unit authorized, issued, and outstanding at September 25, 2021 and September 26, 2020 |
459,007 | 437,149 | ||||||
Common units, Class C, 428,571 units authorized, issued, and outstanding at September 25, 2021 and September 26, 2020 |
144,975 | 2,025 | ||||||
Members’ deficit: |
||||||||
Common voting units, Class A, 7,071,424 and 5,997,632 units authorized; 5,997,632 units issued and outstanding at September 25, 2021 and September 26, 2020, respectively |
16,809 | 16,809 | ||||||
Additional paid-in capital |
26,999 | — | ||||||
Accumulated deficit |
(1,154,944 | ) | (856,858 | ) | ||||
Accumulated other comprehensive loss |
(2,092 | ) | (4,418 | ) | ||||
|
|
|
|
|||||
Total members’ deficit |
(1,113,228 | ) | (844,467 | ) | ||||
|
|
|
|
|||||
Total liabilities, redeemable preferred and common units, and members’ deficit |
$ | 280,535 | $ | 224,953 | ||||
|
|
|
|
Year Ended |
||||||||||||
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||
Revenue: |
||||||||||||
Systems |
$ | 227,563 | $ | 70,818 | $ | 80,462 | ||||||
Software subscriptions |
4,009 | 2,614 | 2,348 | |||||||||
Operation services |
20,341 | 18,654 | 17,313 | |||||||||
|
|
|
|
|
|
|||||||
Total revenue |
251,913 | 92,086 | 100,123 | |||||||||
Cost of revenue: |
||||||||||||
Systems |
216,577 | 79,252 | 92,184 | |||||||||
Software subscriptions |
2,962 | 3,681 | 4,142 | |||||||||
Operation services |
21,927 | 28,083 | 23,761 | |||||||||
|
|
|
|
|
|
|||||||
Total cost of revenue |
241,466 | 111,016 | 120,087 | |||||||||
|
|
|
|
|
|
|||||||
Gross profit (loss) |
10,447 | (18,930 | ) | (19,964 | ) | |||||||
|
|
|
|
|
|
|||||||
Operating expenses: |
||||||||||||
Research and development expenses |
73,386 | 55,861 | 49,092 | |||||||||
Selling, general, and administrative expenses |
59,442 | 35,586 | 36,737 | |||||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
132,828 | 91,447 | 85,829 | |||||||||
|
|
|
|
|
|
|||||||
Operating loss |
(122,381 | ) | (110,377 | ) | (105,793 | ) | ||||||
|
|
|
|
|
|
|||||||
Other income, net |
67 | 809 | 1,432 | |||||||||
|
|
|
|
|
|
|||||||
Loss before income tax |
(122,314 | ) | (109,568 | ) | (104,361 | ) | ||||||
Income tax benefit |
— | 47 | — | |||||||||
|
|
|
|
|
|
|||||||
Net loss |
(122,314 | ) | (109,521 | ) | (104,361 | ) | ||||||
Returns on redeemable Preferred Units |
(32,919 | ) | (29,565 | ) | (25,181 | ) | ||||||
|
|
|
|
|
|
|||||||
Loss attributable to Class A Units and Class C Units |
$ | (155,233 | ) | $ | (139,086 | ) | $ | (129,542 | ) | |||
|
|
|
|
|
|
|||||||
Loss per unit attributable to Class A Units and Class C Units, basic and diluted (Note 14) |
$ | (24.16 | ) | $ | (21.64 | ) | $ | (20.16 | ) | |||
|
|
|
|
|
|
|||||||
Weighted average units used in computing loss per unit attributable to Class A Units and Class C Units, basic and diluted (Note 14) |
6,426,203 | 6,426,203 | 6,426,203 | |||||||||
|
|
|
|
|
|
Year Ended |
||||||||||||
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||
Net loss |
$ | (122,314 | ) | $ | (109,521 | ) | $ | (104,361 | ) | |||
Foreign currency translation adjustments |
2,326 | (1,825 | ) | (501 | ) | |||||||
|
|
|
|
|
|
|||||||
Total comprehensive loss |
$ | (119,988 | ) | $ | (111,346 | ) | $ | (104,862 | ) | |||
|
|
|
|
|
|
Redeemeable Preferred and Common Units |
Additional Paid-in Capital |
Accumulated Other Comprehensive Loss |
Accumulated Deficit |
Total Members’ Deficit |
||||||||||||||||||||||||||||||||||||||||||||
Common Units, Class C |
Preferred Units, Class B-1 |
Preferred Units, Class B |
Common Voting Units, Class A |
|||||||||||||||||||||||||||||||||||||||||||||
Units |
Amount |
Units |
Amount |
Units |
Amount |
Units |
Amount |
|||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2018 |
428,571 | $ | — | 1 | $ | 107,113 | 1 | $ | 396,507 | 5,997,632 | $ | 16,809 | $ | — | $ | (2,092 | ) | $ | (586,298 | ) | $ | (571,581 | ) | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | — | — | — | (104,361 | ) | (104,361 | ) | ||||||||||||||||||||||||||||||||||
Granted |
64,987 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Forfeited |
(64,987 | ) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Unit-based compensation |
— | 22 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Accretion of class C Units to redemption value |
— | 22 | — | — | — | — | — | — | — | — | (22 | ) | (22 | ) | ||||||||||||||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | — | — | — | — | (501 | ) | — | (501 | ) | ||||||||||||||||||||||||||||||||||
Preferred Return |
— | — | — | 5,356 | — | 19,825 | — | — | — | — | (25,181 | ) | (25,181 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance at September 28, 2019 |
428,571 | $ | 44 | 1 | $ | 112,469 | 1 | $ | 416,332 | 5,997,632 | $ | 16,809 | $ | — | $ | (2,593 | ) | $ | (715,862 | ) | $ | (701,646 | ) | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | — | — | — | (109,521 | ) | (109,521 | ) | ||||||||||||||||||||||||||||||||||
Granted |
42,587 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Forfeited |
(42,587 | ) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Unit-based compensation |
— | 71 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Accretion of Class C Units to redemption value |
— | 1,910 | — | — | — | — | — | — | — | — | (1,910 | ) | (1,910 | ) | ||||||||||||||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | — | — | — | — | (1,825 | ) | — | (1,825 | ) | ||||||||||||||||||||||||||||||||||
Member contributions |
— | — | — | 100,000 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Preferred Return |
— | — | — | 8,748 | 20,817 | — | — | — | — | (29,565 | ) | (29,565 | ) | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance at September 26, 2020 |
428,571 | $ | 2,025 | 1 | $ | 221,217 | 1 | $ | 437,149 | 5,997,632 | $ | 16,809 | $ | — | $ | (4,418 | ) | $ | (856,858 | ) | $ | (844,467 | ) | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | — | — | — | (122,314 | ) | (122,314 | ) | ||||||||||||||||||||||||||||||||||
Granted |
51,543 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Forfeited |
(51,543 | ) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Unit-based compensation |
— | 97 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Accretion of Class C Units to redemption value |
— | 142,853 | — | — | — | — | — | — | — | — | (142,853 | ) | (142,853 | ) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
— | — | — | — | — | — | — | — | — | 2,326 | — | 2,326 | ||||||||||||||||||||||||||||||||||||
Member contributions |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Preferred Return |
— | — | — | 11,061 | — | 21,858 | — | — | — | — | (32,919 | ) | (32,919 | ) | ||||||||||||||||||||||||||||||||||
Provision for warrants |
— | — | — | — | — | — | — | — | 26,999 | — | — | 26,999 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance at September 25, 2021 |
428,571 | $ | 144,975 | 1 | $ | 232,278 | 1 | $ | 459,007 | 5,997,632 | $ | 16,809 | $ | 26,999 | $ | (2,092 | ) | $ | (1,154,944 | ) | $ | (1,113,228 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
||||||||||||
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||
Cash flows from operating activities: |
||||||||||||
Net loss |
$ | (122,314 | ) | $ | (109,521 | ) | $ | (104,361 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|||||||||||
Depreciation and amortization |
4,491 | 5,734 | 7,353 | |||||||||
Foreign currency losses |
53 | 33 | 121 | |||||||||
Losses on sale of assets |
— | 51 | — | |||||||||
Unit-based compensation |
97 | 71 | 22 | |||||||||
Deferred taxes, net |
— | (47 | ) | — | ||||||||
Changes in operating assets and liabilities: |
||||||||||||
Accounts receivable |
(1,619 | ) | 342 | (1,128 | ) | |||||||
Inventories |
(16,817 | ) | (5,653 | ) | 10,370 | |||||||
Prepaid expenses and other current assets |
3,736 | 21 | 1,068 | |||||||||
Deferred expenses |
132,683 | 31,797 | 7,937 | |||||||||
Other long-term assets |
2,313 | (1,421 | ) | (641 | ) | |||||||
Accounts payable |
22,169 | (4,812 | ) | 7,716 | ||||||||
Accrued expenses |
16,187 | 644 | 425 | |||||||||
Deferred revenue |
67,100 | (39,123 | ) | 89,249 | ||||||||
Other long-term liabilities |
1,488 | (2,423 | ) | (946 | ) | |||||||
|
|
|
|
|
|
|||||||
Net cash and cash equivalents provided by (used in) operating activities |
109,567 | (124,307 | ) | 17,185 | ||||||||
Cash flows from investing activities: |
||||||||||||
Purchases of property and equipment |
(12,168 | ) | (5,071 | ) | (4,327 | ) | ||||||
Proceeds from sale of assets |
— | 12 | — | |||||||||
|
|
|
|
|
|
|||||||
Net cash and cash equivalents used in investing activities |
(12,168 | ) | (5,059 | ) | (4,327 | ) | ||||||
Cash flows from financing activities: |
||||||||||||
Class B-1 Preferred Unit member contributions |
— | 100,000 | — | |||||||||
|
|
|
|
|
|
|||||||
Net cash and cash equivalents provided by financing activities |
— | 100,000 | — | |||||||||
Effect of exchange rate changes on cash and cash equivalents |
971 | (679 | ) | (49 | ) | |||||||
Net increase (decrease) in cash and cash equivalents |
98,370 | (30,045 | ) | 12,809 | ||||||||
Cash and cash equivalents—beginning of year |
58,264 | 88,309 | 75,500 | |||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents—end of year |
$ | 156,634 | $ | 58,264 | $ | 88,309 | ||||||
|
|
|
|
|
|
|||||||
Non-cash financing activities: |
||||||||||||
Preferred Return, Class B-1 |
11,061 | 8,748 | 5,356 | |||||||||
Preferred Return, Class B |
21,858 | 20,817 | 19,825 |
Estimated Useful Life | ||
Computer equipment and software, furniture and fixtures, and test equipment |
3-5 years | |
Leasehold improvements |
Shorter of estimated useful life or remaining term of the lease |
1. | Systems on-premise license, that automate customers’ depalletizing, storage, selection, and palletization warehousing processes. The modular hardware and embedded software are each not capable of being distinct because a customer cannot benefit from the hardware or software on their own. Accordingly, they are treated as a single performance obligation. Fees for systems are typically fixed or cost-plus fixed fee amounts that are due based on the achievement of a variety of milestones beginning at contract inception through final acceptance. |
2. | Software subscriptions |
3. | Operation services |
September 25, 2021 |
September 26, 2020 |
|||||||
Accounts receivable |
$ | 63,370 | $ | 2,489 | ||||
Contract liabilities |
$ | 475,956 | $ | 380,779 |
Total |
||||
Fiscal year 2022 |
$ | 2,396 | ||
Fiscal year 2023 |
2,316 | |||
Fiscal year 2024 |
2,367 | |||
Fiscal year 2025 |
2,069 | |||
Fiscal year 2026 and thereafter |
581 | |||
|
|
|||
Total future minimum payments |
$ | 9,729 | ||
|
|
Year Ended |
||||||||
September 25, 2021 |
September 26, 2020 |
|||||||
Raw materials and components |
$ | 33,065 | $ | 16,144 | ||||
Finished goods |
496 | 310 | ||||||
|
|
|
|
|||||
Total inventories |
$ | 33,561 | $ | 16,454 | ||||
|
|
|
|
Year Ended |
||||||||
September 25, 2021 |
September 26, 2020 |
|||||||
Computer equipment and software, furniture and fixtures, and test equipment |
$ | 34,268 | $ | 33,276 | ||||
Leasehold improvements |
2,909 | 2,725 | ||||||
|
|
|
|
|||||
Total property and equipment |
37,177 | 36,001 | ||||||
Less accumulated depreciation |
(18,560 | ) | (26,815 | ) | ||||
|
|
|
|
|||||
Property and equipment, net |
$ | 18,617 | $ | 9,186 | ||||
|
|
|
|
Estimated Weighted Average Useful Life |
||||
Customer relationships |
10 years | |||
Trademarks |
3 years |
Year Ended |
||||||||||||||||||||||||
September 25, 2021 |
September 26, 2020 |
|||||||||||||||||||||||
Intangibles, gross |
Accumulated amortization |
Intangibles, net |
Intangibles, gross |
Accumulated amortization |
Intangibles, net |
|||||||||||||||||||
Customer relationships |
$ | 4,656 | $ | (3,492 | ) | $ | 1,164 | $ | 4,400 | $ | (2,860 | ) | $ | 1,540 | ||||||||||
Trademarks |
782 | (782 | ) | — | 739 | (739 | ) | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Intangible assets |
$ | 5,438 | $ | (4,274 | ) | $ | 1,164 | $ | 5,139 | $ | (3,599 | ) | $ | 1,540 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Total |
||||
Fiscal year 2022 |
$ | 466 | ||
Fiscal year 2023 |
466 | |||
Fiscal year 2024 |
232 | |||
|
|
|||
Total |
$ | 1,164 | ||
|
|
Amount |
Percent |
|||||||
Loss before income tax |
$ | (122,314 | ) | |||||
Tax on pre-tax loss |
(25,686 | ) | 21.00 | |||||
Loss not subject to tax |
26,575 | (21.73 | ) | |||||
Foreign rate differential |
233 | (0.19 | ) | |||||
Decrease in valuation allowance |
(993 | ) | 0.81 | |||||
Other |
(129 | ) | 0.11 | |||||
|
|
|
|
|||||
Total income tax |
$ | — | — | |||||
|
|
|
|
Year Ended |
||||||||
September 25, 2021 |
September 26, 2020 |
|||||||
Deferred tax assets: |
||||||||
Non-capital loss carry-forward |
$ | 11,265 | $ | 11,794 | ||||
R&D credits and deductible expenditures |
1,993 | 1,696 | ||||||
Fixed assets |
37 | — | ||||||
Other |
1 | 1 | ||||||
|
|
|
|
|||||
Gross deferred tax assets |
13,296 | 13,491 | ||||||
Deferred tax liabilities: |
||||||||
R&D credits and deductible expenditures |
(688 | ) | (600 | ) | ||||
Fixed assets |
— | (17 | ) | |||||
|
|
|
|
|||||
Gross deferred tax liabilities |
(688 | ) | (617 | ) | ||||
|
|
|
|
|||||
Total deferred tax assets and liabilities |
12,608 | 12,874 | ||||||
|
|
|
|
|||||
Valuation allowance |
(12,608 | ) | (12,874 | ) | ||||
|
|
|
|
|||||
Net deferred tax assets |
$ | — | $ | — | ||||
|
|
|
|
Year Ended |
||||||||||||||||||||||||||||||||
September 25, 2021 |
September 26, 2020 |
|||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||
Money market funds |
$ | 152,204 | $ | — | $ | — | $ | 152,204 | $ | 51,874 | $ | — | $ | — | $ | 51,874 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total assets |
$ | 152,204 | $ | — | $ | — | $ | 152,204 | $ | 51,874 | $ | — | $ | — | $ | 51,874 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
||||||||||||
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||
Balance at beginning of period |
$ | — | $ | 450 | $ | — | ||||||
Provision |
4,652 | — | 1,750 | |||||||||
Warranty usage |
(917 | ) | (450 | ) | (1,300 | ) | ||||||
|
|
|
|
|
|
|||||||
Balance at end of period |
$ | 3,735 | $ | — | $ | 450 | ||||||
|
|
|
|
|
|
Year Ended |
||||||||||||
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||
Basic and diluted loss attributable to Class A and Class C Units: |
||||||||||||
Net loss |
$ | (122,314 | ) | $ | (109,521 | ) | $ | (104,361 | ) | |||
Returns on redeemable Preferred Units |
(32,919 | ) | (29,565 | ) | (25,181 | ) | ||||||
|
|
|
|
|
|
|||||||
Loss attributable to Class A Units and Class C Units |
$ | (155,233 | ) | $ | (139,086 | ) | $ | (129,542 | ) | |||
|
|
|
|
|
|
|||||||
Weighted average units used in computing loss per unit attributable to Class A Units and Class C Units, basic and diluted |
6,426,203 | 6,426,203 | 6,426,203 | |||||||||
|
|
|
|
|
|
|||||||
Loss per unit attributable to Class A Units and Class C Units, basic and diluted |
$ | (24.16 | ) | $ | (21.64 | ) | $ | (20.16 | ) |
Class C Units |
||||
Balance at September 29, 2018 |
428,571 | |||
Granted |
64,987 | |||
Redeemed |
— | |||
Forfeited |
(64,987 | ) | ||
|
|
|||
Balance at September 28, 2019 |
428,571 | |||
Granted |
42,587 | |||
Redeemed |
— | |||
Forfeited |
(42,587 | ) | ||
|
|
|||
Balance at September 26, 2020 |
428,571 | |||
Granted |
51,543 | |||
Redeemed |
— | |||
Forfeited |
(51,543 | ) | ||
|
|
|||
Balance at September 25, 2021 |
428,571 | |||
|
|
|||
Vested at September 25, 2021 |
340,282 |
Year Ended |
||||||||||||
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||
Dividend yield |
0 | % | 0 | % | 0 | % | ||||||
Volatility (a) |
40.0 | % | 50.0 | % | 40.0 | % | ||||||
Risk-free interest rate (b) |
0.29 | % | 0.12 | % | 1.58 | % | ||||||
Expected term (years) (c) |
2.00 | 1.25 | 3.00 |
(a) | The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the Class C Units. |
(b) | The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the Class C Units. |
(c) | The expected term is based on estimated liquidity event timing as further described above. |
VAP Units |
||||
Balance at September 29, 2018 |
7,574,464 | |||
Granted |
— | |||
Exercised |
— | |||
Forfeited |
(2,521,282 | ) | ||
|
|
|||
Balance at September 28, 2019 |
5,053,182 | |||
Granted |
— | |||
Exercised |
— | |||
Forfeited |
(663,925 | ) | ||
|
|
|||
Balance at September 26, 2020 |
4,389,257 | |||
Granted |
— | |||
Exercised |
— | |||
Forfeited |
(349,637 | ) | ||
|
|
|||
Balance at September 25, 2021 |
4,039,620 | |||
|
|
|||
Vested at September 25, 2021 |
3,672,430 | |||
Vested and exercisable at September 25, 2021 |
2,448,287 |
Selected Assumption |
||||
Dividend yield |
0 | % | ||
Volatility (a) |
43.0 | % | ||
Risk-free interest rate (b) |
1.65 | % | ||
Expected term (years) (c) |
10.00 |
(a) | The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the Warrants. |
(b) | The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the Warrants. |
(c) | The expected term is based on the contractual term of the Warrants. |
Warrant Units |
||||
Outstanding and nonvested at September 26, 2020 |
— | |||
Granted |
714,022 | |||
Vested |
(446,741 | ) | ||
|
|
|||
Outstanding and nonvested at September 25, 2021 |
267,281 | |||
|
|
Year Ended |
||||||||||||
September 25, 2021 |
September 26, 2020 |
September 28, 2019 |
||||||||||
United States |
$ | 248,209 | $ | 54,349 | $ | 95,726 | ||||||
Canada |
3,704 | 37,737 | 4,397 | |||||||||
|
|
|
|
|
|
|||||||
Total revenue |
$ | 251,913 | $ | 92,086 | $ | 100,123 | ||||||
|
|
|
|
|
|
|||||||
Percentage of revenue generated outside of the United States |
1 | % | 41 | % | 4 | % |
Year Ended |
||||||||
September 25, 2021 |
September 26, 2020 |
|||||||
United States |
$ | 17,355 | $ | 7,978 | ||||
Canada |
1,262 | 1,208 | ||||||
|
|
|
|
|||||
Total property and equipment, net |
$ | 18,617 | $ | 9,186 | ||||
|
|
|
|
|||||
Percentage of property and equipment, net held outside of the United States |
7 | % | 13 | % |
Page | ||||||
ARTICLE I |
| |||||
Pre-Closing Transactions; The Merger |
| |||||
1.1 |
SVF Domestication | A-3 | ||||
1.2 |
Company Reorganization | A-4 | ||||
1.3 |
The Merger | A-4 | ||||
1.4 |
Closing | A-4 | ||||
1.5 |
Effective Time | A-5 | ||||
1.6 |
LLC Agreement of the Surviving Company | A-5 | ||||
1.7 |
Managers and Officers of the Surviving Company | A-5 | ||||
ARTICLE II |
| |||||
Merger Consideration; Effect of the Merger on Capital Stock |
| |||||
2.1 |
Conversion of Units | A-5 | ||||
2.2 |
Merger Sub Interests | A-6 | ||||
2.3 |
Other Interests | A-6 | ||||
2.4 |
Disbursement of Unit Consideration | A-6 | ||||
2.5 |
Payment of Expenses; Cash Contribution | A-7 | ||||
2.6 |
Ownership Allocation | A-7 | ||||
2.7 |
Earnout | A-7 | ||||
2.8 |
Adjustments to Prevent Dilution | A-9 | ||||
2.9 |
Withholding | A-9 | ||||
ARTICLE III |
| |||||
Representations and Warranties of the Company and Symbotic |
| |||||
3.1 |
Organization, Good Standing and Qualification | A-10 | ||||
3.2 |
Capital Structure of the Company | A-10 | ||||
3.3 |
Corporate Authority and Approval | A-11 | ||||
3.4 |
Governmental Filings; No Violations; Certain Contracts, Etc. | A-12 | ||||
3.5 |
Financial Statements; Internal Controls | A-13 | ||||
3.6 |
Absence of Certain Changes | A-13 | ||||
3.7 |
No Undisclosed Liabilities | A-13 | ||||
3.8 |
Litigation and Proceedings | A-14 | ||||
3.9 |
Employee Benefits | A-14 | ||||
3.10 |
Labor Matters | A-15 | ||||
3.11 |
Compliance with Laws; Licenses | A-16 | ||||
3.12 |
Environmental Matters | A-17 | ||||
3.13 |
Tax Matters | A-17 | ||||
3.14 |
Real Property and Personal Property | A-18 | ||||
3.15 |
Intellectual Property; IT Assets and Data Privacy | A-18 | ||||
3.16 |
Insurance | A-20 | ||||
3.17 |
Company Material Contracts | A-21 | ||||
3.18 |
Brokers and Finders | A-22 | ||||
3.19 |
Suppliers and Customers | A-22 | ||||
3.20 |
Related-Party Transactions | A-23 | ||||
3.21 |
No Outside Reliance | A-23 | ||||
3.22 |
No Other Representations or Warranties | A-23 |
ARTICLE IV |
| |||||
Representations and Warranties of SVF and Merger Sub |
| |||||
4.1 |
Organization, Good Standing and Qualification | A-24 | ||||
4.2 |
Capital Structure | A-24 | ||||
4.3 |
Corporate Authority; Approval | A-25 | ||||
4.4 |
Governmental Filings; No Violations; Certain Contracts | A-26 | ||||
4.5 |
SVF Reports; Internal Controls | A-26 | ||||
4.6 |
Absence of Certain Changes | A-27 | ||||
4.7 |
Business Activities; Liabilities | A-27 | ||||
4.8 |
Litigation and Proceedings | A-28 | ||||
4.9 |
Compliance with Laws | A-28 | ||||
4.10 |
Investment Company Act; JOBS Act | A-28 | ||||
4.11 |
SVF Trust Account | A-28 | ||||
4.12 |
Private Placements; Forward Purchase | A-29 | ||||
4.13 |
Valid Issuance | A-29 | ||||
4.14 |
Takeover Statutes and Charter Provisions | A-29 | ||||
4.15 |
NASDAQ Stock Market Quotation | A-30 | ||||
4.16 |
Brokers and Finders | A-30 | ||||
4.17 |
Taxes | A-30 | ||||
4.18 |
No Outside Reliance | A-31 | ||||
4.19 |
No Other Representations or Warranties | A-31 | ||||
ARTICLE V |
| |||||
Covenants of the Company |
| |||||
5.1 |
Interim Operations | A-32 | ||||
5.2 |
Inspection | A-34 | ||||
5.3 |
No Claim Against the SVF Trust Account | A-34 | ||||
5.4 |
Acquisition Proposals; Alternative Transactions | A-35 | ||||
5.5 |
Company Equityholder Consent; Information Statement and Notices | A-35 | ||||
5.6 |
Prospectus/Proxy Filing; Information Supplied; Filings | A-36 | ||||
ARTICLE VI |
| |||||
Covenants of SVF |
| |||||
6.1 |
Conduct of SVF | A-37 | ||||
6.2 |
SVF Trust Account Matters | A-38 | ||||
6.3 |
Indemnification; Directors’ and Officers’ Insurance | A-39 | ||||
6.4 |
Approval of Shareholder of Merger Sub | A-40 | ||||
6.5 |
Inspections | A-40 | ||||
6.6 |
SVF NASDAQ Listing | A-41 | ||||
6.7 |
SVF Public Filings | A-41 | ||||
6.8 |
Private Placements; Forward Purchase | A-41 | ||||
6.9 |
Director and Officer Appointments | A-41 | ||||
6.10 |
Exclusivity | A-41 | ||||
6.11 |
Stockholder Litigation | A-42 | ||||
ARTICLE VII |
| |||||
Joint Covenants |
| |||||
7.1 |
Preparation of Registration Statement | A-42 | ||||
7.2 |
SVF Special Meeting | A-43 | ||||
7.3 |
Cooperation; Efforts to Consummate | A-44 |
7.4 |
Status; Notifications | A-45 | ||||
7.5 |
SEC Matters | A-45 | ||||
7.6 |
Publicity | A-45 | ||||
7.7 |
Section 16 Matters | A-46 | ||||
7.8 |
Tax Matters | A-46 | ||||
7.9 |
SVF Incentive Plan and SVF Employee Stock Purchase Plan | A-47 | ||||
ARTICLE VIII |
| |||||
Conditions |
| |||||
8.1 |
Conditions to Obligation of Each Party | A-47 | ||||
8.2 |
Conditions to Obligation of SVF and Merger Sub | A-48 | ||||
8.3 |
Conditions to Obligation of the Company and Symbotic | A-49 | ||||
ARTICLE IX |
| |||||
Termination |
| |||||
9.1 |
Termination by Mutual Written Consent | A-49 | ||||
9.2 |
Termination by Either SVF or the Company | A-50 | ||||
9.3 |
Termination by SVF | A-50 | ||||
9.4 |
Termination by the Company | A-50 | ||||
9.5 |
Effect of Termination and Abandonment | A-51 | ||||
9.6 |
Reimbursement Fee | A-51 | ||||
ARTICLE X |
| |||||
Miscellaneous and General |
| |||||
10.1 |
Survival | A-52 | ||||
10.2 |
Modification or Amendment; Waiver | A-52 | ||||
10.3 |
Counterparts | A-52 | ||||
10.4 |
Governing Law and Venue; Submission to Jurisdiction; Selection of Forum; Waiver of Trial by Jury | A-52 | ||||
10.5 |
Specific Performance | A-53 | ||||
10.6 |
Notices | A-53 | ||||
10.7 |
Entire Agreement | A-54 | ||||
10.8 |
Expenses | A-55 | ||||
10.9 |
Third-Party Beneficiaries | A-55 | ||||
10.10 |
Non-Recourse |
A-55 | ||||
10.11 |
Severability | A-55 | ||||
10.12 |
Successors and Assigns | A-56 | ||||
10.13 |
Interpretation and Construction | A-56 |
EXHIBITS AND SCHEDULES | ||
Exhibit A | Certain Definitions | |
Exhibit B | Form of Certificate of Incorporation of Surviving Pubco | |
Exhibit C | Form of Bylaws of Surviving Pubco | |
Exhibit D | Form of Second Amended and Restated LLC Agreement of the Surviving Company | |
Exhibit E | Form of Tax Receivable Agreement | |
Exhibit F | Form of Registration Rights Agreement | |
Exhibit G | Form of SVF Incentive Plan | |
Exhibit H | Form of SVF Employee Stock Purchase Plan | |
Exhibit I | Form of Company Written Consent |
c/o Symbotic |
200 Research Drive |
Wilmington, MA 01887 |
Attention: Corey Dufresne |
Email: cdufresne@symbotic.com |
Sullivan & Cromwell LLP |
125 Broad Street |
New York, NY 10004 and 1870 Embarcadero Road Palo Alto, CA 94303 |
Attention: Robert W. Downes George Sampas Matthew B. Goodman |
Email: downesr@sullcrom.com sampasg@sullcrom.com goodmanm@sullcrom.com |
Softbank Investment Advisors Legal |
One Circle Star Way |
San Carlos, CA 94070 |
Attention: General Counsel |
Email: legal@softbank.com |
Paul, Weiss, Rifkind, Wharton & Garrison LLP |
1285 Avenue of the Americas New York, NY 10019 |
Attention: Jeffrey D. Marell Austin Pollet |
Email: jmarell@paulweiss.com apollet@paulweiss.com |
WAREHOUSE TECHNOLOGIES LLC | ||
By | /s/ Richard B. Cohen | |
Name: Richard B. Cohen | ||
Title: President | ||
SVF INVESTMENT CORP. 3 | ||
By | /s/ Ioannis Pipilis | |
Name: Ioannis Pipilis | ||
Title: Chairman and Chief Executive Officer | ||
SATURN ACQUISITION (DE) CORP. | ||
By | /s/ Kokoro Motegi | |
Name: Kokoro Motegi | ||
Title: President | ||
SYMBOTIC HOLDINGS LLC | ||
By | /s/ Richard B. Cohen | |
Name: Richard B. Cohen | ||
Title: President |
1 |
Incorporator will be a representative of SVF. |
Name |
Mailing Address | |
Ioannis Pipilis | c/o SVF Investment Corp. 3, 1 Circle Star Way, San Carlos, California | |
Navneet Govil, MBA | c/o SVF Investment Corp. 3, 1 Circle Star Way, San Carlos, California | |
Cristiana Falcone | c/o SVF Investment Corp. 3, 1 Circle Star Way, San Carlos, California | |
Michael Tobin | c/o SVF Investment Corp. 3, 1 Circle Star Way, San Carlos, California | |
Michael Carpenter | c/o SVF Investment Corp. 3, 1 Circle Star Way, San Carlos, California |
|
Incorporator |
Name: |
Article I - Corporate Offices |
C-1 | |||||
1.1 |
Registered Office | C-1 | ||||
1.2 |
Other Offices | C-1 | ||||
Article II - Meetings of Stockholders |
C-1 | |||||
2.1 |
Place of Meetings | C-1 | ||||
2.2 |
Annual Meeting | C-1 | ||||
2.3 |
Special Meetings | C-1 | ||||
2.4 |
Notice of Stockholders’ Meetings | C-1 | ||||
2.5 |
Quorum | C-1 | ||||
2.6 |
Adjournments and Postponements | C-2 | ||||
2.7 |
Conduct of Business | C-2 | ||||
2.8 |
Voting | C-3 | ||||
2.9 |
Record Date for Stockholder Meetings and Other Purposes | C-3 | ||||
2.10 |
Proxies | C-4 | ||||
2.11 |
List of Stockholders Entitled to Vote | C-4 | ||||
2.12 |
Inspectors of Election | C-4 | ||||
2.13 |
Notice of Stockholder Proposals and Nominations of Directors | C-5 | ||||
2.14 |
Stockholder Nominations Included in the Corporation’s Proxy Materials (Proxy Access). | C-7 | ||||
2.15 |
Delivery to the Corporation | C-13 | ||||
Article III - Directors |
C-13 | |||||
3.1 |
Powers | C-13 | ||||
3.2 |
Number of Directors | C-14 | ||||
3.3 |
Election, Qualification and Term of Office of Directors | C-14 | ||||
3.4 |
Resignation and Vacancies | C-14 | ||||
3.5 |
Place of Meetings; Meetings by Telephone or Remote Communication | C-14 | ||||
3.6 |
Regular Meetings | C-14 | ||||
3.7 |
Special Meetings; Notice | C-14 | ||||
3.8 |
Quorum; Vote Required for Action | C-15 | ||||
3.9 |
Board Action Without a Meeting | C-15 | ||||
3.10 |
Fees and Compensation of Directors | C-15 | ||||
Article IV - Committees |
C-15 | |||||
4.1 |
Committees of Directors | C-15 | ||||
4.2 |
Committee Minutes | C-16 | ||||
4.3 |
Meetings and Actions of Committees | C-16 | ||||
4.4 |
Subcommittees | C-16 | ||||
Article V - Officers |
C-16 | |||||
5.1 |
Officers | C-16 | ||||
5.2 |
Appointment of Officers | C-16 | ||||
5.3 |
Subordinate Officers | C-17 | ||||
5.4 |
Removal and Resignation of Officers | C-17 | ||||
5.5 |
Vacancies in Offices | C-17 | ||||
5.6 |
Representation of Shares of Other Corporations | C-17 | ||||
5.7 |
Authority and Duties of Officers | C-17 | ||||
5.8 |
Compensation | C-17 |
Article VI - Stock |
C-17 | |||||
6.1 |
Stock Certificates and Uncertificated Shares | C-17 | ||||
6.2 |
Special Designation of Certificates | C-18 | ||||
6.3 |
Transfer of Stock | C-18 | ||||
6.4 |
Stock Transfer Agreements | C-18 | ||||
6.5 |
Registered Stockholders | C-18 | ||||
6.6 |
Dividends | C-19 | ||||
6.7 |
Lost, Stolen or Destroyed Stock Certificates | C-19 | ||||
Article VII - Miscellaneous |
C-19 | |||||
7.1 |
Execution of Corporate Contracts and Instruments | C-19 | ||||
7.2 |
Records | C-19 | ||||
7.3 |
Fiscal Year | C-19 | ||||
7.4 |
Seal | C-19 | ||||
Article VIII - Notice |
C-20 | |||||
8.1 |
Delivery of Notice; Notice by Electronic Transmission | C-20 | ||||
8.2 |
Waiver of Notice | C-20 | ||||
Article IX - Indemnification |
C-21 | |||||
9.1 |
Indemnification of Directors and Officers | C-21 | ||||
9.2 |
Indemnification of Others | C-21 | ||||
9.3 |
Prepayment of Expenses | C-21 | ||||
9.4 |
Determination; Claim | C-21 | ||||
9.5 |
Non-Exclusivity of Rights |
C-21 | ||||
9.6 |
Insurance | C-21 | ||||
9.7 |
Other Indemnification | C-22 | ||||
9.8 |
Continuation of Indemnification | C-22 | ||||
9.9 |
Amendment or Repeal; Interpretation | C-22 | ||||
Article X - Amendments |
C-23 | |||||
Article XI - Construction and Definitions |
C-23 | |||||
11.1 |
Construction and Definitions in General | C-23 | ||||
11.2 |
Defined Terms | C-23 |
1 |
Number of Shares to reflect the amount that is 10% of the Company’s fully-diluted outstanding stock immediately after closing. |
2 |
Number of Shares to reflect the amount that is 10% of the Company’s fully-diluted outstanding stock immediately after closing. |
3 |
Number of Shares to reflect the amount that is 10% of the Company’s fully-diluted outstanding stock immediately after closing. |
1 |
Number of Shares to reflect the amount that is 2.5% of outstanding shares immediately after closing. |
24320691.1 S8005.168180 | | |||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
1. | The name of the company is SVF Investment Corp. 3 (the “ Company |
2. | The registered office of the Company will be situated at the offices of Walkers Corporate Limited, 190 Elgin Avenue, George Town, Grand Cayman KY1-9001, Cayman Islands or at such other location as the Directors may from time to time determine. |
3. | The objects for which the Company is established are unrestricted and the Company shall have full power and authority to carry out any object not prohibited by any law as provided by Section 7(4) of the Companies Act (as amended) of the Cayman Islands (the “ Companies Act”) |
4. | The Company shall have and be capable of exercising all the functions of a natural person of full capacity irrespective of any question of corporate benefit as provided by Section 27(2) of the Companies Act. |
5. | The Company will not trade in the Cayman Islands with any person, firm or corporation except in furtherance of the business of the Company carried on outside the Cayman Islands; provided that nothing in this section shall be construed as to prevent the Company effecting and concluding contracts in the Cayman Islands, and exercising in the Cayman Islands all of its powers necessary for the carrying on of its business outside the Cayman Islands. |
6. | The liability of the shareholders of the Company is limited to the amount, if any, unpaid on the shares respectively held by them. |
7. | The authorised share capital of the Company is US$22,100 200,000,000 US$0.0001, 20,000,000 US$0.0001, 1,000,000 US$0.0001, |
8. | The Company may exercise the power contained in Section 206 of the Companies Act to deregister in the Cayman Islands and be registered by way of continuation in some other jurisdiction. |
| ||||
24320691.1 S8005.168180 | ||||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
| ||||
24320691.1 S8005.168180 | ||||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
CLAUSE |
PAGE |
|||
TABLE A |
F-1 | |||
INTERPRETATION |
F-1 | |||
PRELIMINARY |
F-5 | |||
SHARES |
F-5 | |||
FOUNDER SHARES CONVERSION AND ANTI-DILUTION RIGHTS |
F-6 | |||
MODIFICATION OF RIGHTS |
F-7 | |||
CERTIFICATES |
F-8 | |||
FRACTIONAL SHARES |
F-8 | |||
LIEN |
F-8 | |||
CALLS ON SHARES |
F-9 | |||
FORFEITURE OF SHARES |
F-10 | |||
TRANSFER OF SHARES |
F-10 | |||
TRANSMISSION OF SHARES |
F-11 | |||
ALTERATION OF SHARE CAPITAL |
F-11 | |||
REDEMPTION, PURCHASE AND SURRENDER OF SHARES |
F-12 | |||
TREASURY SHARES |
F-13 | |||
GENERAL MEETINGS |
F-13 | |||
NOTICE OF GENERAL MEETINGS |
F-14 | |||
PROCEEDINGS AT GENERAL MEETINGS |
F-14 | |||
VOTES OF SHAREHOLDERS |
F-15 | |||
CORPORATIONS ACTING BY REPRESENTATIVES AT MEETINGS |
F-16 | |||
DIRECTORS |
F-17 | |||
ALTERNATE DIRECTOR |
F-18 | |||
POWERS AND DUTIES OF DIRECTORS |
F-18 | |||
BORROWING POWERS OF DIRECTORS |
F-19 | |||
THE SEAL |
F-20 | |||
DISQUALIFICATION OF DIRECTORS |
F-20 | |||
PROCEEDINGS OF DIRECTORS |
F-20 |
F-i | | |||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
DIVIDENDS |
F-22 | |||
ACCOUNTS, AUDIT AND ANNUAL RETURN AND DECLARATION |
F-23 | |||
CAPITALISATION OF RESERVES |
F-24 | |||
SHARE PREMIUM ACCOUNT |
F-25 | |||
INVESTMENT ACCOUNTS |
F-25 | |||
NOTICES |
F-26 | |||
INDEMNITY |
F-27 | |||
NON-RECOGNITION OF TRUSTS |
F-28 | |||
BUSINESS OPPORTUNITIES |
F-31 | |||
WINDING UP |
F-32 | |||
AMENDMENT OF ARTICLES OF ASSOCIATION |
F-33 | |||
CLOSING OF REGISTER OR FIXING RECORD DATE |
F-33 | |||
REGISTRATION BY WAY OF CONTINUATION |
F-33 | |||
MERGERS AND CONSOLIDATION |
F-33 | |||
DISCLOSURE |
F-34 |
24320691.1 S8005.168180 | F-ii | | ||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
1. | In these Articles the following defined terms will have the meanings ascribed to them, if not inconsistent with the subject or context: |
F-1 | | |||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
(a) | passed by a simple majority of such Shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting of the Company and where a poll is taken regard shall be had in computing a majority to the number of votes to which each Shareholder is entitled; or |
(b) | approved in writing by all of the Shareholders entitled to vote at a general meeting of the Company in one or more instruments each signed by one or more of the Shareholders and the effective date of the resolution so adopted shall be the date on which the instrument, or the last of such instruments, if more than one, is executed. |
24320691.1 S8005.168180 | F-2 | | ||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
(a) | passed by a majority of not less than two-thirds (or, (i) prior to the consummation of a Business Combination only, with respect to amending Article 170(b) 100% of the votes cast at a meeting of the Shareholders and (ii) with respect to amending Article 99, a majority of not less than two-thirds of the votes cast at a meeting of the Shareholders including a simple majority of the holders of Class B Shares |
24320691.1 S8005.168180 | F-3 | | ||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
(and if the Shareholders vote in favour of such act but the approval of a simple majority of the holders of Class B Shares has not yet been obtained, the holders of a simple majority of Class B Shares shall have, in such vote, voting rights equal to the aggregate voting power of all the Shareholders of the Company who voted in favour of the resolution plus one)) of such Shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting of the Company of which notice specifying the intention to propose the resolution as a special resolution has been duly given and where a poll is taken regard shall be had in computing a majority to the number of votes to which each Shareholder is entitled; or |
(b) | approved in writing by all of the Shareholders entitled to vote at a general meeting of the Company in one or more instruments each signed by one or more of the Shareholders and the effective date of the special resolution so adopted shall be the date on which the instrument or the last of such instruments, if more than one, is executed. |
2. | In these Articles, save where the context requires otherwise: |
(a) | words importing the singular number shall include the plural number and vice versa; |
(b) | words importing the masculine gender only shall include the feminine gender and any Person as the context may require; |
(c) | the word “may” shall be construed as permissive and the word “shall” shall be construed as imperative; |
(d) | reference to a dollar or dollars or USD (or $) and to a cent or cents is reference to dollars and cents of the United States of America; |
(e) | reference to a statutory enactment shall include reference to any amendment or reenactment thereof for the time being in force; |
(f) | reference to any determination by the Directors shall be construed as a determination by the Directors in their sole and absolute discretion and shall be applicable either generally or in any particular case; and |
(g) | reference to “in writing” shall be construed as written or represented by any means reproducible in writing, including any form of print, lithograph, email, facsimile, photograph or telex or represented by any other substitute or format for storage or transmission for writing or partly one and partly another. |
3. | Subject to the preceding Articles, any words defined in the Companies Act shall, if not inconsistent with the subject or context, bear the same meaning in these Articles. |
24320691.1 S8005.168180 | F-4 | | ||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
4. | The business of the Company may be commenced at any time after incorporation. |
5. | The Office shall be at such address in the Cayman Islands as the Directors may from time to time determine. The Company may in addition establish and maintain such other offices and places of business and agencies in such places as the Directors may from time to time determine. |
6. | The expenses incurred in the formation of the Company and in connection with the offer for subscription and issue of Shares shall be paid by the Company. Such expenses may be amortised over such period as the Directors may determine and the amount so paid shall be charged against income and/or capital in the accounts of the Company as the Directors shall determine. |
7. | The Directors shall keep, or cause to be kept, the Register at such place or (subject to compliance with the Companies Act and these Articles) places as the Directors may from time to time determine. In the absence of any such determination, the Register shall be kept at the Office. The Directors may keep, or cause to be kept, one or more Branch Registers as well as the Principal Register in accordance with the Companies Act, provided always that a duplicate of such Branch Register(s) shall be maintained with the Principal Register in accordance with the Companies Act and the rules or requirements of any Designated Stock Exchange. |
8. | Subject to these Articles, and, where applicable, the rules of the Designated Stock Exchange and/or any competent regulatory authority, all Shares for the time being unissued shall be under the control of the Directors who may: |
(a) | issue, allot and dispose of the same to such Persons, in such manner, on such terms and having such rights and being subject to such restrictions as they may from time to time determine; and |
(b) | grant options with respect to such Shares and issue warrants or similar instruments with respect thereto; |
9. | The Company may issue units of securities in the Company, which may be comprised of whole or fractional Shares, rights, options, warrants or convertible securities or securities of similar nature conferring the right upon the holders thereof to subscribe for, purchase or receive any class of Shares or other securities in the Company, upon such terms as the Directors may from time to time determine. The securities comprising any such units which are issued pursuant to the IPO can only be traded separately from one another on the 52nd day following the date of the prospectus relating to the IPO unless the Underwriters determine that an earlier date is acceptable, subject to the Company having filed a current report on Form 8-K with the SEC and a press release announcing when such separate trading will begin. Prior to such date, the units can be traded, but the securities comprising such units cannot be traded separately from one another. |
10. | The Directors, or the Shareholders by Ordinary Resolution, may authorise the division of Shares into any number of Classes and sub-classes and Series and sub-series and the different Classes and sub-classes and |
24320691.1 S8005.168180 | F-5 | | ||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
Series and sub-series shall be authorised, established and designated (or re-designated as the case may be) and the variations in the relative rights (including, without limitation, voting, dividend and redemption rights), restrictions, preferences, privileges and payment obligations as between the different Classes and Series (if any) may be fixed and determined by the Directors or the Shareholders by Ordinary Resolution. |
11. | The Company may insofar as may be permitted by law, pay a commission to any Person in consideration of his subscribing or agreeing to subscribe whether absolutely or conditionally for any Shares. Such commissions may be satisfied by the payment of cash or the lodgement of fully or partly paid-up Shares or partly in one way and partly in the other. The Company may also pay such brokerage as may be lawful on any issue of Shares. |
12. | The Directors may refuse to accept any application for Shares, and may accept any application in whole or in part, for any reason or for no reason. |
13. | Except as otherwise specified in these Articles or required by law, the holders of the Class A Shares and the Class B Shares (on an as converted basis) shall vote as a single class. |
14. | On the first business day following the consummation of the Company’s initial Business Combination, or at any earlier date at the option of the holders of the Class B Shares, the issued and outstanding Class B Shares shall automatically be converted into such number of Class A Shares as is equal to 20% of the sum of: |
(a) | the total number of Class A Shares issued in the IPO (including pursuant to any Over-Allotment Option) plus the total number of Class B Shares issued, plus |
(b) | the total number of Class A Shares issued or deemed issued, or issuable upon the conversion or exercise of any equity-linked securities issued or deemed issued, by the Company in connection with or in relation to the consummation of the initial Business Combination, excluding (i) any Class A Shares or equity-linked securities exercisable for or convertible into Class A Shares issued, or to be issued, to any seller in the initial Business Combination; (ii) any private placement warrants issued to the Sponsor, the Investor Group or any members of the Company’s management team upon conversion of working capital loans; (iii) any Class A Shares issued, or to be issued, under any forward purchase agreements between the Sponsor and the Company; and (iv) any Class A Shares issued, or to be issued, to any investor pursuant to a private investment in public equity transaction in relation to the consummation of the initial Business Combination. |
15. | Notwithstanding anything to the contrary contained herein in no event shall the Class B Shares convert into Class A Shares at a ratio that is less than one-for-one. |
24320691.1 S8005.168180 | F-6 | | ||
Filed: 09-Mar-2021 11:25 EST | ||||
www.verify.gov.ky File#: 369078 |
Auth Code: B48607235428 |
16. | References in Articles 14 to Article 18 to “ converted conversion exchange |
17. | Each Class B Share shall convert into its pro rata number of Class A Shares as set forth in this Article 17. The pro rata share for each holder of Class B Shares will be determined as follows: each Class B Share shall convert into such number of Class A Shares as is equal to the product of 1 multiplied by a fraction, the numerator of which shall be the total number of Class A Shares into which all of the issued and outstanding Class B Shares shall be converted pursuant to Article 14 and the denominator of which shall be the total number of issued and outstanding Class B Shares at the time of conversion. |
18. | The Directors may effect such conversion in any manner available under applicable law, including redeeming or repurchasing the relevant Class B Shares and applying the proceeds thereof towards payment for the new Class A Shares. For purposes of the repurchase or redemption, the Directors may, subject to the Company being able to pay its debts in the ordinary course of business, make payments out of amounts standing to the credit of the Company’s share premium account or out of its capital. |
19. | Whenever the capital of the Company is divided into different Classes (and as otherwise determined by the Directors) the rights attached to any such Class may, subject to any rights or restrictions for the time being attached to any Class only be materially adversely varied or abrogated with the consent in writing of the holders of not less than two-thirds of the issued Shares of the relevant Class, or with the sanction of a resolution passed at a separate meeting of the holders of the Shares of such Class by a majority of two-thirds of the votes cast at such a meeting. To every such separate meeting all the provisions of these Articles relating to general meetings of the Company or to the proceedings thereat shall, mutatis mutandis, one-third in nominal or par value amount of the issued Shares of the relevant Class (but so that if at any adjourned meeting of such holders a quorum as above defined is not present, those Shareholders who are present shall form a quorum) and that, subject to any rights or restrictions for the time being attached to the Shares of that Class, every Shareholder of the Class shall on a poll have one vote for each Share of the Class held by him. For the purposes of this Article the Directors may treat all the Classes or any two or more Classes as forming one Class if they consider that all such Classes would be affected in the same way by the proposals under consideration, |
20. | The rights conferred upon the holders of the Shares of any Class issued with preferred or other rights shall not, subject to any rights or restrictions for the time being attached to the Shares of that Class, be deemed to be materially adversely varied or abrogated by, inter alia, |
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any variation of the rights conferred upon the holders of Shares of any other Class or the redemption or purchase of any Shares of any Class by the Company. |
21. | If so determined by the Directors, any Person whose name is entered as a member in the Register may receive a certificate in the form determined by the Directors. All certificates shall specify the Share or Shares held by that person and the amount paid up thereon, provided that in respect of a Share or Shares held jointly by several persons the Company shall not be bound to issue more than one certificate, and delivery of a certificate for a Share to one of several joint holders shall be sufficient delivery to all. All certificates for Shares shall be delivered personally or sent through the post addressed to the member entitled thereto at the Member’s registered address as appearing in the Register. |
22. | Every share certificate of the Company shall bear legends required under the applicable laws, including the Exchange Act. |
23. | Any two or more certificates representing Shares of any one Class held by any Member may at the Member’s request be cancelled and a single new certificate for such Shares issued in lieu on payment (if the Directors shall so require) of $1.00 or such smaller sum as the Directors shall determine. |
24. | If a share certificate shall be damaged or defaced or alleged to have been lost, stolen or destroyed, a new certificate representing the same Shares may be issued to the relevant Member upon request subject to delivery up of the old certificate or (if alleged to have been lost, stolen or destroyed) compliance with such conditions as to evidence and indemnity and the payment of out-of-pocket |
25. | In the event that Shares are held jointly by several persons, any request may be made by any one of the joint holders and if so made shall be binding on all of the joint holders. |
26. | The Directors may issue fractions of a Share and, if so issued, a fraction of a Share shall be subject to and carry the corresponding fraction of liabilities (whether with respect to nominal or par value, premium, contributions, calls or otherwise), limitations, preferences, privileges, qualifications, restrictions, rights (including, without prejudice to the generality of the foregoing, voting and participation rights) and other attributes of a whole Share. If more than one fraction of a Share of the same Class is issued to or acquired by the same Shareholder such fractions shall be accumulated. |
27. | The Company has a first and paramount lien on every Share (whether or not fully paid) for all amounts (whether presently payable or not) payable at a fixed time or called in respect of that Share. The Company also has a first and paramount lien on every Share (whether or not fully paid) registered in the name of a |
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Person indebted or under liability to the Company (whether he is the sole registered holder of a Share or one of two or more joint holders) for all amounts owing by him or his estate to the Company (whether or not presently payable). The Directors may at any time declare a Share to be wholly or in part exempt from the provisions of this Article. The Company’s lien on a Share extends to any amount payable in respect of it. |
28. | The Company may sell, in such manner as the Directors may determine, any Share on which the Company has a lien, but no sale shall be made unless an amount in respect of which the lien exists is presently payable nor until the expiration of fourteen days after a notice in writing, demanding payment of such part of the amount in respect of which the lien exists as is presently payable, has been given to the registered holder for the time being of the Share, or the Persons entitled thereto by reason of his death or bankruptcy. |
29. | For giving effect to any such sale the Directors may authorise some Person to transfer the Shares sold to the purchaser thereof. The purchaser shall be registered as the holder of the Shares comprised in any such transfer and he shall not be bound to see to the application of the purchase money, nor shall his title to the Shares be affected by any irregularity or invalidity in the proceedings in reference to the sale. |
30. | The proceeds of the sale after deduction of expenses, fees and commission incurred by the Company shall be received by the Company and applied in payment of such part of the amount in respect of which the lien exists as is presently payable, and the residue shall (subject to a like lien for sums not presently payable as existed upon the Shares prior to the sale) be paid to the Person entitled to the Shares immediately prior to the sale. |
31. | The Directors may from time to time make calls upon the Shareholders in respect of any moneys unpaid on their Shares, and each Shareholder shall (subject to receiving at least fourteen days’ notice specifying the time or times of payment) pay to the Company at the time or times so specified the amount called on such Shares. |
32. | The joint holders of a Share shall be jointly and severally liable to pay calls in respect thereof. |
33. | If a sum called in respect of a Share is not paid before or on the day appointed for payment thereof, the Person from whom the sum is due shall pay interest upon the sum at the rate of eight percent per annum from the day appointed for the payment thereof to the time of the actual payment, but the Directors shall be at liberty to waive payment of that interest wholly or in part. |
34. | The provisions of these Articles as to the liability of joint holders and as to payment of interest shall apply in the case of non-payment of any sum which, by the terms of issue of a Share, becomes payable at a fixed time, whether on account of the amount of the Share, or by way of premium, as if the same had become payable by virtue of a call duly made and notified. |
35. | The Directors may make arrangements on the issue of partly paid Shares for a difference between the Shareholders, or the particular Shares, in the amount of calls to be paid and in the times of payment. |
36. | The Directors may, if they think fit, receive from any Shareholder willing to advance the same all or any part of the moneys uncalled and unpaid upon any partly paid Shares held by him, and upon all or any of the moneys so advanced may (until the same would, but for such advance, become presently payable) pay interest at such rate (not exceeding without the sanction of an Ordinary Resolution, eight percent per annum) as may be agreed upon between the Shareholder paying the sum in advance and the Directors. |
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37. | If a Shareholder fails to pay any call or instalment of a call in respect of any Shares on the day appointed for payment, the Directors may, at any time thereafter during such time as any part of such call or instalment remains unpaid, serve a notice on him requiring payment of so much of the call or instalment as is unpaid, together with any interest which may have accrued. |
38. | The notice shall name a further day (not earlier than the expiration of fourteen days from the date of the notice) on or before which the payment required by the notice is to be made, and shall state that in the event of non-payment at or before the time appointed the Shares in respect of which the call was made will be liable to be forfeited. |
39. | If the requirements of any such notice as aforesaid are not complied with, any Share in respect of which the notice has been given may at any time thereafter, before the payment required by notice has been made, be forfeited by a resolution of the Directors to that effect. |
40. | A forfeited Share may be sold or otherwise disposed of on such terms and in such manner as the Directors think fit, and at any time before a sale or disposition the forfeiture may be cancelled on such terms as the Directors think fit. |
41. | A Person whose Shares have been forfeited shall cease to be a Shareholder in respect of the forfeited Shares, but shall, notwithstanding, remain liable to pay to the Company all moneys which at the date of forfeiture were payable by him to the Company in respect of the Shares forfeited, but his liability shall cease if and when the Company receives payment in full of the amount unpaid on the Shares forfeited. |
42. | A statutory declaration in writing that the declarant is a Director, and that a Share has been duly forfeited on a date stated in the declaration, shall be conclusive evidence of the facts in the declaration as against all Persons claiming to be entitled to the Share. |
43. | The Company may receive the consideration, if any, given for a Share on any sale or disposition thereof pursuant to the provisions of these Articles as to forfeiture and may execute a transfer of the Share in favour of the Person to whom the Share is sold or disposed of and that Person shall be registered as the holder of the Share, and shall not be bound to see to the application of the purchase money, if any, nor shall his title to the Shares be affected by any irregularity or invalidity in the proceedings in reference to the disposition or sale. |
44. | The provisions of these Articles as to forfeiture shall apply in the case of non-payment of any sum which by the terms of issue of a Share becomes due and payable, whether on account of the amount of the Share, or by way of premium, as if the same had been payable by virtue of a call duly made and notified. |
45. | Subject to these Articles and the rules or regulations of the Designated Stock Exchange or any relevant rules of the SEC or securities laws (including, but not limited to, the Exchange Act), a Member may transfer all or any of his or her Shares. |
46. | The instrument of transfer of any Share shall be in (a) any usual or common form, (b) such form as is prescribed by the Designated Stock Exchange, or (c) in any other form as the Directors may determine and |
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shall be executed by or on behalf of the transferor and if in respect of a nil or partly paid up Share, or if so required by the Directors, shall also be executed on behalf of the transferee and shall be accompanied by the certificate (if any) of the Shares to which it relates and such other evidence as the Directors may reasonably require to show the right of the transferor to make the transfer. The transferor shall be deemed to remain a Shareholder until the name of the transferee is entered in the Register in respect of the relevant Shares. |
47. | Subject to the terms of issue thereof and the rules or regulations of the Designated Stock Exchange or any relevant rules of the SEC or securities laws (including, but not limited to the Exchange Act), the Directors may determine to decline to register any transfer of Shares without assigning any reason therefor. |
48. | The registration of transfers may be suspended at such times and for such periods as the Directors may from time to time determine. |
49. | All instruments of transfer that are registered shall be retained by the Company, but any instrument of transfer that the Directors decline to register shall (except in any case of fraud) be returned to the Person depositing the same. |
50. | The legal personal representative of a deceased sole holder of a Share shall be the only Person recognised by the Company as having any title to the Share. In the case of a Share registered in the name of two or more holders, the survivors or survivor, or the legal personal representatives of the deceased holder of the Share, shall be the only Person recognised by the Company as having any title to the Share. |
51. | Any Person becoming entitled to a Share in consequence of the death or bankruptcy of a Shareholder shall upon such evidence being produced as may from time to time be required by the Directors, have the right either to be registered as a Shareholder in respect of the Share or, instead of being registered himself, to make such transfer of the Share as the deceased or bankrupt Person could have made; but the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the deceased or bankrupt Person before the death or bankruptcy. |
52. | A Person becoming entitled to a Share by reason of the death or bankruptcy of a Shareholder shall be entitled to the same dividends and other advantages to which he would be entitled if he were the registered Shareholder, except that he shall not, before being registered as a Shareholder in respect of the Share, be entitled in respect of it to exercise any right conferred by membership in relation to meetings of the Company. |
53. | The Company may from time to time by Ordinary Resolution increase the share capital by such sum, to be divided into Shares of such Classes and amount, as the resolution shall prescribe. |
54. | The Company may by Ordinary Resolution: |
(a) | consolidate and divide all or any of its share capital into Shares of a larger amount than its existing Shares; |
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(b) | convert all or any of its paid up Shares into stock and reconvert that stock into paid up Shares of any denomination; |
(c) | subdivide its existing Shares, or any of them into Shares of a smaller amount provided that in the subdivision the proportion between the amount paid and the amount, if any, unpaid on each reduced Share shall be the same as it was in case of the Share from which the reduced Share is derived; and |
(d) | cancel any Shares that, at the date of the passing of the resolution, have not been taken or agreed to be taken by any Person and diminish the amount of its share capital by the amount of the Shares so cancelled. |
55. | The Company may by Special Resolution reduce its share capital and any capital redemption reserve in any manner authorised by law. |
56. | Subject to the Companies Act and the rules of the Designated Stock Exchange, the Company may: |
(a) | issue Shares on terms that they are to be redeemed or are liable to be redeemed at the option of the Company or the Shareholder on such terms and in such manner as the Directors may determine; |
(b) | purchase its own Shares (including any redeemable Shares) on such terms and in such manner as the Directors may determine and agree with the Shareholder; |
(c) | make a payment in respect of the redemption or purchase of its own Shares in any manner authorised by the Companies Act, including out of its capital; and |
(d) | accept the surrender for no consideration of any paid up Share (including any redeemable Share) on such terms and in such manner as the Directors may determine. |
57. | With respect to redeeming or repurchasing the Shares: |
(a) | Members who hold Public Shares are entitled to request the redemption of such Shares in the circumstances described in Article 168; |
(b) | Shares held by the Founders shall be surrendered by the Founders on a pro rata basis for no consideration to the extent that the Over-Allotment Option is not exercised in full so that the Founders will own 20% of the Company’s issued Shares after the IPO (exclusive of any securities purchased in a private placement simultaneously with the IPO); and |
(c) | Public Shares shall be repurchased by way of tender offer in the circumstances set out in Article 164(b). |
58. | Any Share in respect of which notice of redemption has been given shall not be entitled to participate in the profits of the Company in respect of the period after the date specified as the date of redemption in the notice of redemption. |
59. | The redemption, purchase or surrender of any Share shall not be deemed to give rise to the redemption, purchase or surrender of any other Share. |
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60. | The Directors may when making payments in respect of redemption or purchase of Shares, if authorised by the terms of issue of the Shares being redeemed or purchased or with the agreement of the holder of such Shares, make such payment either in cash or in specie including, without limitation, interests in a special purpose vehicle holding assets of the Company or holding entitlement to the proceeds of assets held by the Company or in a liquidating structure. |
61. | Shares that the Company purchases, redeems or acquires (by way of surrender or otherwise) may, at the option of the Company, be cancelled immediately or held as Treasury Shares in accordance with the Companies Act. In the event that the Directors do not specify that the relevant Shares are to be held as Treasury Shares, such Shares shall be cancelled. |
62. | No dividend may be declared or paid, and no other distribution (whether in cash or otherwise) of the Company’s assets (including any distribution of assets to members on a winding up) may be declared or paid in respect of a Treasury Share. |
63. | The Company shall be entered in the Register as the holder of the Treasury Shares provided that: |
(a) | the Company shall not be treated as a member for any purpose and shall not exercise any right in respect of the Treasury Shares, and any purported exercise of such a right shall be void; |
(b) | a Treasury Share shall not be voted, directly or indirectly, at any meeting of the Company and shall not be counted in determining the total number of issued shares at any given time, whether for the purposes of these Articles or the Companies Act, save that an allotment of Shares as fully paid bonus shares in respect of a Treasury Share is permitted and Shares allotted as fully paid bonus shares in respect of a treasury share shall be treated as Treasury Shares. |
64. | Treasury Shares may be disposed of by the Company on such terms and conditions as determined by the Directors. |
65. | The Directors may, whenever they think fit, convene a general meeting of the Company. |
66. | Subject to Article 99, for so long as the Company’s Shares are traded on a Designated Stock Exchange, the Company shall in each year hold a general meeting as its annual general meeting at such time and place as may be determined by the Directors in accordance with the rules of the Designated Stock Exchange, unless such Designated Stock Exchange does not require the holding of an annual general meeting. |
67. | The Directors may cancel or postpone any duly convened general meeting at any time prior to such meeting, except for general meetings requisitioned by the Shareholders in accordance with these Articles, for any reason or for no reason at any time prior to the time for holding such meeting or, if the meeting is adjourned, the time for holding such adjourned meeting. The Directors shall give Shareholders notice in writing of any cancellation or postponement. A postponement may be for a stated period of any length or indefinitely as the Directors may determine. |
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68. | General meetings shall also be convened on the requisition in writing of any Shareholder or Shareholders entitled to attend and vote at general meetings of the Company holding at least thirty percent of the paid up voting share capital of the Company deposited at the Office specifying the objects of the meeting by notice given no later than 21 days from the date of deposit of the requisition signed by the requisitionists, and if the Directors do not convene such meeting for a date not later than 45 days after the date of such deposit, the requisitionists themselves may convene the general meeting in the same manner, as nearly as possible, as that in which general meetings may be convened by the Directors, and all reasonable expenses incurred by the requisitionists as a result of the failure of the Directors to convene the general meeting shall be reimbursed to them by the Company. |
69. | If at any time there are no Directors, any two Shareholders (or if there is only one Shareholder then that Shareholder) entitled to vote at general meetings of the Company may convene a general meeting in the same manner as nearly as possible as that in which general meetings may be convened by the Directors. |
70. | At least five days’ notice in writing counting from the date service is deemed to take place as provided in these Articles specifying the place, the day and the hour of the meeting and the general nature of the business, shall be given in the manner hereinafter provided or in such other manner (if any) as may be prescribed by the Company by Ordinary Resolution to such Persons as are, under these Articles, entitled to receive such notices from the Company, but with the consent of all the Shareholders entitled to receive notice of some particular meeting and attend and vote thereat, that meeting may be convened by such shorter notice or without notice and in such manner as those Shareholders may think fit. |
71. | The accidental omission to give notice of a meeting to or the non-receipt of a notice of a meeting by any Shareholder shall not invalidate the proceedings at any meeting. |
72. | All business carried out at a general meeting shall be deemed special with the exception of sanctioning a dividend, the consideration of the accounts, balance sheets, any report of the Directors or of the Company’s auditors, and the fixing of the remuneration of the Company’s auditors. No special business shall be transacted at any general meeting without the consent of all Shareholders entitled to receive notice of that meeting unless notice of such special business has been given in the notice convening that meeting. |
73. | No business shall be transacted at any general meeting unless a quorum of Shareholders is present at the time when the meeting proceeds to business. Save as otherwise provided by these Articles, one or more Shareholders holding at least a majority of the paid up voting share capital of the Company present in person or by proxy and entitled to vote at that meeting shall form a quorum. |
74. | If within half an hour from the time appointed for the meeting a quorum is not present, the meeting, if convened upon the requisition of Shareholders, shall be dissolved. In any other case it shall stand adjourned to the same day in the next week, at the same time and place, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting the Shareholder or Shareholders present and entitled to vote shall form a quorum. |
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75. | If the Directors wish to make this facility available for a specific general meeting or all general meetings of the Company, participation in any general meeting of the Company may be by means of a telephone or similar communication equipment by way of which all Persons participating in such meeting can communicate with each other and such participation shall be deemed to constitute presence in person at the meeting. |
76. | The chairman, if any, of the Directors shall preside as chairman at every general meeting of the Company. |
77. | If there is no such chairman, or if at any general meeting he is not present within fifteen minutes after the time appointed for holding the meeting or is unwilling to act as chairman, any Director or Person nominated by the Directors shall preside as chairman, failing which the Shareholders present in person or by proxy shall choose any Person present to be chairman of that meeting. |
78. | The chairman may adjourn a meeting from time to time and from place to place either: |
(a) | with the consent of any general meeting at which a quorum is present (and shall if so directed by the meeting); or |
(b) | without the consent of such meeting if, in his sole opinion, he considers it necessary to do so to: |
(i) | secure the orderly conduct or proceedings of the meeting; or |
(ii) | give all persons present in person or by proxy and having the right to speak and / or vote at such meeting, the ability to do so, but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. When a meeting, or adjourned meeting, is adjourned for fourteen days or more, notice of the adjourned meeting shall be given in the manner provided for the original meeting. Save as aforesaid, it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting. |
79. | A resolution put to the vote of the meeting shall be decided on a poll. |
80. | A poll shall be taken in such manner as the chairman directs, and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded. |
81. | In the case of an equality of votes the chairman of the meeting shall be entitled to a second or casting vote. |
82. | A poll demanded on the election of a chairman of the meeting or on a question of adjournment shall be taken forthwith. A poll demanded on any other question shall be taken at such time as the chairman of the meeting directs. |
83. | Subject to any rights and restrictions for the time being attached to any Share, every Shareholder present in person and every Person representing a Shareholder by proxy shall, at a general meeting of the Company, shall have one vote for each Share of which he or the Person represented by proxy is the holder. |
84. | In the case of joint holders the vote of the senior who tenders a vote whether in person or by proxy shall be accepted to the exclusion of the votes of the other joint holders and for this purpose seniority shall be determined by the order in which the names stand in the Register. |
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85. | A Shareholder of unsound mind, or in respect of whom an order has been made by any court having jurisdiction in lunacy, may vote in respect of Shares carrying the right to vote held by him, by his committee, or other Person in the nature of a committee appointed by that court, and any such committee or other Person, may vote in respect of such Shares by proxy. |
86. | No Shareholder shall be entitled to vote at any general meeting of the Company unless all calls, if any, or other sums presently payable by him in respect of Shares carrying the right to vote held by him have been paid. |
87. | On a poll votes may be given either personally or by proxy. |
88. | The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised in writing or, if the appointor is a corporation, either under Seal or under the hand of an Officer or attorney duly authorised. A proxy need not be a Shareholder. |
89. | An instrument appointing a proxy may be in any usual or common form or such other form as the Directors may approve. |
90. | The instrument appointing a proxy shall be deposited at the Office or at such other place as is specified for that purpose in the notice convening the meeting no later than the time for holding the meeting or, if the meeting is adjourned, the time for holding such adjourned meeting. |
91. | The instrument appointing a proxy shall be deemed to confer authority to demand or join in demanding a poll. |
92. | A resolution in writing signed by all the Shareholders for the time being entitled to receive notice of and to attend and vote at general meetings of the Company (or being corporations by their duly authorised representatives) shall be as valid and effective as if the same had been passed at a general meeting of the Company duly convened and held. |
93. | Any corporation which is a Shareholder or a Director may by resolution of its directors or other governing body authorise such Person as it thinks fit to act as its representative at any meeting of the Company or of any meeting of holders of a Class or of the Directors or of a committee of Directors, and the Person so authorised shall be entitled to exercise the same powers on behalf of the corporation which he represents as that corporation could exercise if it were an individual Shareholder or Director. |
94. | If a clearing house (or its nominee) is a Member of the Company, it may, by resolution of its directors or other governing body or by power of attorney, authorise such person or persons as it thinks fit to act as its representative or representatives at any general meeting of the Company or at any general meeting of any class of Members of the Company provided that, if more than one person is so authorised, the authorisation shall specify the number and class of Shares in respect of which each such person is so authorised. A person so authorised pursuant to this Article shall be entitled to exercise the same powers on behalf of the clearing house (or its nominee) which he represents as that clearing house (or its nominee) could exercise if it were an individual Member holding the number and Class of Shares specified in such authorisation. |
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95. | Subject to Article 98, the Company may by Ordinary Resolution appoint any Person to be a Director. |
96. | Subject to Article 98, the Company may by Ordinary Resolution from time to time fix the maximum and minimum number of Directors to be appointed but unless such numbers are fixed as aforesaid the minimum number of Directors shall be one and the maximum number of Directors shall be unlimited. |
97. | There shall be no shareholding qualification for Directors. |
98. | For so long as the Company’s Shares are traded on a Designated Stock Exchange, the Directors shall be divided into three (3) classes designated as Class I, Class II and Class III, respectively. Directors shall be assigned to each class in accordance with a resolution or resolutions adopted by the board of Directors. At the first annual general meeting of Members after the IPO, the term of office of the Class I Directors shall expire and Class I Directors shall be elected for a full term of three (3) years. At the second annual general meeting of Members after the IPO, the term of office of the Class II Directors shall expire and Class II Directors shall be elected for a full term of three (3) years. At the third annual general meeting of Members after the IPO, the term of office of the Class III Directors shall expire and Class III Directors shall be elected for a full term of three (3) years. At each succeeding annual general meeting of Members, Directors shall be elected for a full term of three (3) years to succeed the Directors of the class whose terms expire at such annual general meeting. Notwithstanding the foregoing provisions of this Article, each Director shall hold office until: |
(a) | the expiration of their term; |
(b) | until their successor shall have been duly elected and qualified; or |
(c) | until their earlier death, resignation or removal. |
99. | Prior to an initial Business Combination, only holders of Class B Shares will have the right to vote on the election of Directors pursuant to Article 98 or the removal of the Directors pursuant to Article 117. |
100. | For so long as the Company’s Shares are traded on a Designated Stock Exchange, any and all vacancies in the board of Directors, however occurring, including, without limitation, by reason of an increase in the size of the board of Directors, or the death, resignation, disqualification or removal of a Director, shall be filled solely and exclusively by the affirmative vote of a majority of the remaining Directors then in office, even if less than a quorum of the board of Directors, and not by the Members. Any Director appointed in accordance with the preceding sentence shall hold office for the remainder of the full term of the class of Directors in which the new directorship was created or the vacancy occurred and until such Director’s successor shall have been duly elected and qualified or until his or her earlier resignation, death or removal. When the number of Directors is increased or decreased, the board of Directors shall, subject to Article 98, determine the class or classes to which the increased or decreased number of Directors shall be apportioned; provided, however, that no decrease in the number of Directors shall shorten the term of any incumbent Director. In the event of a vacancy in the board of Directors, the remaining Directors, except as otherwise provided by law, shall exercise the powers of the full board of Directors until the vacancy is filled. |
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101. | Any Director may in writing appoint another Person to be his alternate and, save to the extent provided otherwise in the form of appointment, such alternate shall have authority to sign written resolutions on behalf of the appointing Director, but shall not be authorised to sign such written resolutions where they have been signed by the appointing Director, and to act in such Director’s place at any meeting of the Directors. Every such alternate shall be entitled to attend and vote at meetings of the Directors as the alternate of the Director appointing him and where he is a Director to have a separate vote in addition to his own vote. A Director may at any time in writing revoke the appointment of an alternate appointed by him. Such alternate shall not be an Officer solely as a result of his appointment as an alternate other than in respect of such times as the alternate acts as a Director. The remuneration of such alternate shall be payable out of the remuneration of the Director appointing him and the proportion thereof shall be agreed between them. |
102. | Subject to the Companies Act, these Articles and to any resolutions passed in a general meeting, the business of the Company shall be managed by the Directors, who may pay all expenses incurred in setting up and registering the Company and may exercise all powers of the Company. No resolution passed by the Company in general meeting shall invalidate any prior act of the Directors that would have been valid if that resolution had not been passed. |
103. | The Directors may from time to time appoint any Person, whether or not a Director to hold such office in the Company as the Directors may think necessary for the administration of the Company (including, for the avoidance of doubt and without limitation, any chairman (or co-chairman) of the board of Directors, vice chairman of the board of Directors, one or more chief executive officers, presidents, a chief financial officer, a secretary, a treasurer, vice-presidents, one or more assistant vice presidents, one or more assistant treasurers, one or more assistant secretaries or any other officers as may be determined by the Directors), for such term and at such remuneration (whether by way of salary or commission or participation in profits or partly in one way and partly in another), and with such powers and duties as the Directors may think fit. Any Person so appointed by the Directors may be removed by the Directors or by the Company by Ordinary Resolution. The Directors may also appoint one or more of their number to the office of managing director upon like terms, but any such appointment shall ipso facto terminate if any managing director ceases from any cause to be a Director, or if the Company by Ordinary Resolution resolves that his tenure of office be terminated. |
104. | The Directors may appoint any Person to be a Secretary (and if need be an assistant Secretary or assistant Secretaries) who shall hold office for such term, at such remuneration and upon such conditions and with such powers as they think fit. Any Secretary or assistant Secretary so appointed by the Directors may be removed by the Directors or by the Company by Ordinary Resolution. |
105. | The Directors may delegate any of their powers to committees consisting of such member or members of their body as they think fit; any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be imposed on it by the Directors. |
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106. | The Directors may from time to time and at any time by power of attorney (whether under Seal or under hand) or otherwise appoint any company, firm or Person or body of Persons, whether nominated directly or indirectly by the Directors, to be the attorney or attorneys or authorised signatory (any such person being an “ Attorney Authorised Signatory”, |
107. | The Directors may from time to time provide for the management of the affairs of the Company in such manner as they shall think fit and the provisions contained in the three next following Articles shall not limit the general powers conferred by this Article. |
108. | The Directors from time to time and at any time may establish any committees, local boards or agencies for managing any of the affairs of the Company and may appoint any Person to be a member of such committees or local boards and may appoint any managers or agents of the Company and may fix the remuneration of any such Person. |
109. | The Directors from time to time and at any time may delegate to any such committee, local board, manager or agent any of the powers, authorities and discretions for the time being vested in the Directors and may authorise the members for the time being of any such local board, or any of them to fill any vacancies therein and to act notwithstanding vacancies and any such appointment or delegation may be made on such terms and subject to such conditions as the Directors may think fit and the Directors may at any time remove any Person so appointed and may annul or vary any such delegation, but no Person dealing in good faith and without notice of any such annulment or variation shall be affected thereby. |
110. | Any such delegates as aforesaid may be authorised by the Directors to sub-delegate all or any of the powers, authorities, and discretion for the time being vested in them. |
111. | The Directors may agree with a Shareholder to waive or modify the terms applicable to such Shareholder’s subscription for Shares without obtaining the consent of any other Shareholder; provided that such waiver or modification does not amount to a variation or abrogation of the rights attaching to the Shares of such other Shareholders. |
112. | The Directors shall have the authority to present a winding up petition on behalf of the Company without the sanction of a resolution passed by the Company in general meeting. |
113. | The Directors may exercise all the powers of the Company to borrow money and to mortgage or charge its undertaking, property and uncalled capital or any part thereof, or to otherwise provide for a security interest to be taken in such undertaking, property or uncalled capital, and to issue debentures, debenture stock and other securities whenever money is borrowed or as security for any debt, liability or obligation of the Company or of any third party. |
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114. | The Seal shall not be affixed to any instrument except by the authority of a resolution of the Directors provided always that such authority may be given prior to or after the affixing of the Seal and if given after may be in general form confirming a number of affixings of the Seal. The Seal shall be affixed in the presence of a Director or a Secretary (or an assistant Secretary) or in the presence of any one or more Persons as the Directors may appoint for the purpose and every Person as aforesaid shall sign every instrument to which the Seal is so affixed in their presence. |
115. | The Company may maintain a facsimile of the Seal in such countries or places as the Directors may appoint and such facsimile Seal shall not be affixed to any instrument except by the authority of a resolution of the Directors provided always that such authority may be given prior to or after the affixing of such facsimile Seal and if given after may be in general form confirming a number of affixings of such facsimile Seal. The facsimile Seal shall be affixed in the presence of such Person or Persons as the Directors shall for this purpose appoint and such Person or Persons as aforesaid shall sign every instrument to which the facsimile Seal is so affixed in their presence and such affixing of the facsimile Seal and signing as aforesaid shall have the same meaning and effect as if the Seal had been affixed in the presence of and the instrument signed by a Director or a Secretary (or an assistant Secretary) or in the presence of any one or more Persons as the Directors may appoint for the purpose. |
116. | Notwithstanding the foregoing, a Secretary or any assistant Secretary shall have the authority to affix the Seal, or the facsimile Seal, to any instrument for the purposes of attesting authenticity of the matter contained therein but which does not create any obligation binding on the Company. |
117. | The office of Director shall be vacated, if the Director: |
(a) | becomes bankrupt or makes any arrangement or composition with his creditors; |
(b) | dies or is found to be or becomes of unsound mind; |
(c) | resigns his office by notice in writing to the Company; |
(d) | prior to the closing of an initial Business Combination, is removed from office by Ordinary Resolution of the holders of the Class B Shares (only); |
(e) | following the closing of an initial Business Combination, is removed from office by Ordinary Resolution of all Shareholders entitled to vote; or |
(f) | is removed from office pursuant to any other provision of these Articles. |
118. | The Directors may meet together (either within or outside the Cayman Islands) for the dispatch of business, adjourn, and otherwise regulate their meetings and proceedings as they think fit. Questions arising at any |
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meeting shall be decided by a majority of votes. In case of an equality of votes the chairman shall have a second or casting vote. A Director may, and a Secretary or assistant Secretary on the requisition of a Director shall, at any time summon a meeting of the Directors. |
119. | A Director may participate in any meeting of the Directors, or of any committee appointed by the Directors of which such Director is a member, by means of telephone or similar communication equipment by way of which all Persons participating in such meeting can communicate with each other and such participation shall be deemed to constitute presence in person at the meeting. |
120. | The quorum necessary for the transaction of the business of the Directors may be fixed by the Directors, and unless so fixed, if there be two or more Directors the quorum shall be two, and if there be one Director the quorum shall be one. A Director represented by an alternate Director at any meeting shall be deemed to be present for the purposes of determining whether or not a quorum is present. |
121. | A Director who is in any way, whether directly or indirectly, interested in a contract or proposed contract with the Company shall declare the nature of his interest at a meeting of the Directors. A general notice given to the Directors by any Director to the effect that he is to be regarded as interested in any contract or other arrangement which may thereafter be made with that company or firm shall be deemed a sufficient declaration of interest in regard to any contract so made. A Director may vote in respect of any contract or proposed contract or arrangement notwithstanding that he may be interested therein and if he does so his vote shall be counted and he may be counted in the quorum at any meeting of the Directors at which any such contract or proposed contract or arrangement shall come before the meeting for consideration. |
122. | A Director may hold any other office or place of profit under the Company (other than the office of auditor) in conjunction with his office of Director for such period and on such terms (as to remuneration and otherwise) as the Directors may determine and no Director or intending Director shall be disqualified by his office from contracting with the Company either with regard to his tenure of any such other office or place of profit or as vendor, purchaser or otherwise, nor shall any such contract or arrangement entered into by or on behalf of the Company in which any Director is in any way interested, be liable to be avoided, nor shall any Director so contracting or being so interested be liable to account to the Company for any profit realised by any such contract or arrangement by reason of such Director holding that office or of the fiduciary relation thereby established. A Director, notwithstanding his interest, may be counted in the quorum present at any meeting of the Directors whereat he or any other Director is appointed to hold any such office or place of profit under the Company or whereat the terms of any such appointment are arranged and he may vote on any such appointment or arrangement. |
123. | Any Director may act by himself or his firm in a professional capacity for the Company, and he or his firm shall be entitled to remuneration for professional services as if he were not a Director; provided that nothing herein contained shall authorise a Director or his firm to act as auditor to the Company. |
124. | The Directors shall cause minutes to be made in books or loose-leaf folders provided for the purpose of recording: |
(a) | all appointments of Officers made by the Directors; |
(b) | the names of the Directors present at each meeting of the Directors and of any committee of the Directors; and |
(c) | all resolutions and proceedings at all meetings of the Company, and of the Directors and of committees of Directors. |
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125. | When the chairman of a meeting of the Directors signs the minutes of such meeting the same shall be deemed to have been duly held notwithstanding that all the Directors have not actually come together or that there may have been a technical defect in the proceedings. |
126. | A resolution in writing signed by all the Directors or all the members of a committee of Directors entitled to receive notice of a meeting of Directors or committee of Directors, as the case may be (an alternate Director, subject as provided otherwise in the terms of appointment of the alternate Director, being entitled to sign such a resolution on behalf of his appointer), shall be as valid and effectual as if it had been passed at a duly called and constituted meeting of Directors or committee of Directors, as the case may be. When signed a resolution may consist of several documents each signed by one or more of the Directors or his duly appointed alternate. |
127. | The continuing Directors may act notwithstanding any vacancy in their body but if and for so long as their number is reduced below the number fixed by or pursuant to these Articles as the necessary quorum of Directors, the continuing Directors may act for the purpose of increasing the number, or of summoning a general meeting of the Company, but for no other purpose. |
128. | The Directors may elect a chairman of their meetings and determine the period for which he is to hold office but if no such chairman is elected, or if at any meeting the chairman is not present within fifteen minutes after the time appointed for holding the meeting, the Directors present may choose one of their number to be chairman of the meeting. |
129. | Subject to any regulations imposed on it by the Directors, a committee appointed by the Directors may elect a chairman of its meetings. If no such chairman is elected, or if at any meeting the chairman is not present within fifteen minutes after the time appointed for holding the meeting, the committee members present may choose one of their number to be chairman of the meeting. |
130. | A committee appointed by the Directors may meet and adjourn as it thinks proper. Subject to any regulations imposed on it by the Directors, questions arising at any meeting shall be determined by a majority of votes of the committee members present and in case of an equality of votes the chairman shall have a second or casting vote. |
131. | All acts done by any meeting of the Directors or of a committee of Directors, or by any Person acting as a Director, shall notwithstanding that it be afterwards discovered that there was some defect in the appointment of any such Director or Person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such Person had been duly appointed and was qualified to be a Director. |
132. | Subject to any rights and restrictions for the time being attached to any Shares, or as otherwise provided for in the Companies Act and these Articles, the Directors may from time to time declare dividends (including interim dividends) and other distributions on Shares in issue and authorise payment of the same out of the funds of the Company lawfully available therefor. |
133. | Subject to any rights and restrictions for the time being attached to any Shares, the Company by Ordinary Resolution may declare dividends, but no dividend shall exceed the amount recommended by the Directors. |
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134. | The Directors may determine, before recommending or declaring any dividend, to set aside out of the funds legally available for distribution such sums as they think proper as a reserve or reserves which shall be applicable for meeting contingencies, or for equalising dividends or for any other purpose to which those funds may be properly applied and pending such application may, at the determination of the Directors, either be employed in the business of the Company or be invested in such investments as the Directors may from time to time think fit. |
135. | Any dividend may be paid in any manner as the Directors may determine. If paid by cheque it will be sent through the post to the registered address of the Shareholder or Person entitled thereto, or in the case of joint holders, to any one of such joint holders at his registered address or to such Person and such address as the Shareholder or Person entitled, or such joint holders as the case may be, may direct. Every such cheque shall be made payable to the order of the Person to whom it is sent or to the order of such other Person as the Shareholder or Person entitled, or such joint holders as the case may be, may direct. |
136. | The Directors when paying dividends to the Shareholders in accordance with the foregoing provisions of these Articles may make such payment either in cash or in specie and may determine the extent to which amounts may be withheld therefrom (including, without limitation, any taxes, fees, expenses or other liabilities for which a Shareholder (or the Company, as a result of any action or inaction of the Shareholder) is liable). |
137. | Subject to any rights and restrictions for the time being attached to any Shares, all dividends shall be declared and paid according to the amounts paid up on the Shares, but if and for so long as nothing is paid up on any of the Shares dividends may be declared and paid according to the par value of the Shares. |
138. | If several Persons are registered as joint holders of any Share, any of them may give effectual receipts for any dividend or other moneys payable on or in respect of the Share. |
139. | No dividend shall bear interest against the Company. |
140. | The books of account relating to the Company’s affairs shall be kept in such manner as may be determined from time to time by the Directors. |
141. | The books of account shall be kept at the Office, or at such other place or places as the Directors think fit, and shall always be open to the inspection of the Directors. |
142. | The Directors may from time to time determine whether and to what extent and at what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to the inspection of Shareholders not being Directors, and no Shareholder (not being a Director) shall have any right of inspecting any account or book or document of the Company except as conferred by law or authorised by the Directors or by Ordinary Resolution. |
143. | The accounts relating to the Company’s affairs shall only be audited if the Directors so determine, in which case the financial year end and the accounting principles will be determined by the Directors. The financial year of the Company shall end on 31 December of each year or such other date as the Directors may determine. |
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144. | Without prejudice to the freedom of the Directors to establish any other committee, if the Shares are listed or quoted on the Designated Stock Exchange, and if required by the Designated Stock Exchange, the Directors shall establish and maintain an audit committee (the “ Audit Committee”) |
145. | The Directors in each year shall prepare, or cause to be prepared, an annual return and declaration setting forth the particulars required by the Companies Act and deliver a copy thereof to the Registrar of Companies in the Cayman Islands. |
146. | Subject to the Companies Act and these Articles, the Directors may: |
(a) | resolve to capitalise an amount standing to the credit of reserves (including a Share Premium Account, capital redemption reserve and profit and loss account), whether or not available for distribution; |
(b) | appropriate the sum resolved to be capitalised to the Shareholders in proportion to the nominal amount of Shares (whether or not fully paid) held by them respectively and apply that sum on their behalf in or towards: |
(i) | paying up the amounts (if any) for the time being unpaid on Shares held by them respectively, or |
(ii) | paying up in full unissued Shares or debentures of a nominal amount equal to that sum, and allot the Shares or debentures, credited as fully paid, to the Shareholders (or as they may direct) in those proportions, or partly in one way and partly in the other, but the Share Premium Account, the capital redemption reserve and profits which are not available for distribution may, for the purposes of this Article, only be applied in paying up unissued Shares to be allotted to Shareholders credited as fully paid; |
(c) | make any arrangements they think fit to resolve a difficulty arising in the distribution of a capitalised reserve and in particular, without limitation, where Shares or debentures become distributable in fractions the Directors may deal with the fractions as they think fit; |
(d) | authorise a Person to enter (on behalf of all the Shareholders concerned) into an agreement with the Company providing for either: |
(i) | the allotment to the Shareholders respectively, credited as fully paid, of Shares or debentures to which they may be entitled on the capitalisation, or |
(ii) | the payment by the Company on behalf of the Shareholders (by the application of their respective proportions of the reserves resolved to be capitalised) of the amounts or part of the amounts remaining unpaid on their existing Shares, and any such agreement made under this authority being effective and binding on all those Shareholders; and |
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(e) | generally do all acts and things required to give effect to any of the actions contemplated by this Article. |
147. | The Directors shall in accordance with the Companies Act establish a Share Premium Account and shall carry to the credit of such account from time to time a sum equal to the amount or value of the premium paid on the issue of any Share. |
148. | There shall be debited to any Share Premium Account on the redemption or purchase of a Share the difference between the nominal value of such Share and the redemption or purchase price provided always that at the determination of the Directors such sum may be paid out of the profits of the Company or, if permitted by the Companies Act, out of capital. |
149. | The Directors may establish separate accounts on the books and records of the Company (each an “ Investment Account”) |
(a) | the proceeds from the allotment and issue of Shares of any Class or Series may be applied in the books of the Company to the Investment Account established for the Shares of such Class or Series; |
(b) | the assets and liabilities and income and expenditures attributable to the Shares of any Class or Series may be applied or allocated for accounting purposes to the relevant Investment Account established for such Shares subject to these Articles; |
(c) | where any asset is derived from another asset (whether cash or otherwise), such derivative asset may be applied in the books of the Company to the Investment Account from which the related asset was derived and on each revaluation of an investment the increase or diminution in the value thereof (or the relevant portion of such increase or diminution in value) may be applied to the relevant Investment Account; |
(d) | in the case of any asset of the Company which the Directors do not consider is attributable to a particular Investment Account, the Directors may determine the basis upon which any such asset shall be allocated among Investment Accounts and the Directors shall have power at any time and from time to time to vary such allocation; |
(e) | where the assets of the Company not attributable to any Investment Accounts give rise to any net profits, the Directors may allocate the assets representing such net profits to the Investment Accounts as they may determine; |
(f) | the Directors may determine the basis upon which any liability including expenses shall be allocated among Investment Accounts (including conditions as to subsequent re-allocation thereof if circumstances so permit or require) and shall have power at any time and from time to time to vary such basis and charge expenses of the Company against either revenue or the capital of the Investment Accounts; and |
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(g) | the Directors may in the books of the Company transfer any assets to and from Investment Accounts if, as a result of a creditor proceeding against certain of the assets of the Company or otherwise, a liability would be borne in a different manner from that in which it would have been borne under this Article, or in any similar circumstances. |
150. | Subject to any applicable law and except as otherwise provided in these Articles the assets held in each Investment Account shall be applied solely in respect of Shares of the Class or Series to which such Investment Account relates and no holder of Shares of a Class or Series shall have any claim or right to any asset allocated to any other Class or Series. |
151. | Any notice or document may be served by the Company or by the Person entitled to give notice to any Shareholder either personally, or by posting it airmail or air courier service in a prepaid letter addressed to such Shareholder at his address as appearing in the Register, or by electronic mail to any electronic mail address such Shareholder may have specified in writing for the purpose of such service of notices, or by facsimile should the Directors deem it appropriate. In the case of joint holders of a Share, all notices shall be given to that one of the joint holders whose name stands first in the Register in respect of the joint holding, and notice so given shall be sufficient notice to all the joint holders. |
152. | Any Shareholder present, either personally or by proxy, at any meeting of the Company shall for all purposes be deemed to have received due notice of such meeting and, where requisite, of the purposes for which such meeting was convened. |
153. | Any notice or other document, if served by: |
(a) | post, shall be deemed to have been served five clear days after the time when the letter containing the same is posted; |
(b) | facsimile, shall be deemed to have been served upon production by the transmitting facsimile machine of a report confirming transmission of the facsimile in full to the facsimile number of the recipient; |
(c) | recognised courier service, shall be deemed to have been served 48 hours after the time when the letter containing the same is delivered to the courier service; or |
(d) | electronic mail, shall be deemed to have been served immediately upon the time of the transmission by electronic mail. |
154. | Any notice or document delivered or sent in accordance with the terms of these Articles shall notwithstanding that such Shareholder be then dead or bankrupt, and whether or not the Company has notice of his death or bankruptcy, be deemed to have been duly served in respect of any Share registered in the name of such Shareholder as sole or joint holder, unless his name shall at the time of the service of the notice or document, have been removed from the Register as the holder of the Share, and such service shall for all purposes be deemed a sufficient service of such notice or document on all Persons interested (whether jointly with or as claiming through or under him) in the Share. |
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155. | Notice of every general meeting of the Company shall be given to: |
(a) | all Shareholders holding Shares with the right to receive notice and who have supplied to the Company an address for the giving of notices to them; and |
(b) | every Person entitled to a Share in consequence of the death or bankruptcy of a Shareholder, who but for his death or bankruptcy would be entitled to receive notice of the meeting. |
156. | To the fullest extent permitted by law, every Director (including for the purposes of this Article any alternate Director appointed pursuant to the provisions of these Articles), Secretary, assistant Secretary, or other Officer (but not including the Company’s auditors) and the personal representatives of the same (each an “ Indemnified Person”) Proceeding |
157. | No Indemnified Person shall be liable: |
(a) | for the acts, receipts, neglects, defaults or omissions of any other Director or Officer or agent of the Company; or |
(b) | for any loss on account of defect of title to any property of the Company; or |
(c) | on account of the insufficiency of any security in or upon which any money of the Company shall be invested; or |
(d) | for any loss incurred through any bank, broker or other similar Person; or |
(e) | for any loss occasioned by any negligence, default, breach of duty, breach of trust, error of judgement or oversight on such Indemnified Person’s part; or |
(f) | for any loss, damage or misfortune whatsoever which may happen in or arise from the execution or discharge of the duties, powers, authorities, or discretions of such Indemnified Person’s office or in |
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relation thereto; unless the same shall happen through such Indemnified Person’s own actual fraud, wilful default or wilful neglect as determined by a court of competent jurisdiction. |
158. | The Company will pay the expenses (including attorneys’ fees) incurred by an Indemnified Person in defending any Proceeding in advance of its final disposition, provided, however, that, to the extent required by applicable law, such payment of expenses in advance of the final disposition of the Proceeding shall be made only upon receipt of an undertaking by the Indemnified Person to repay all amounts advanced if it should be ultimately determined that the Indemnified Person is not entitled to be indemnified under this Article or otherwise. |
159. | The Directors, on behalf of the Company, may purchase and maintain insurance for the benefit of any Director or officer of the Company against any liability which, by virtue of any rule of law, would otherwise attach to such person in respect of any negligence, default, breach of duty or breach of trust of which such person may be guilty in relation to the Company. |
160. | The rights to indemnification and advancement of expenses conferred on any indemnitee as set out above will not be exclusive of any other rights that any indemnitee may have or hereafter acquire. The rights to indemnification and advancement of expenses set out above will be contract rights and such rights will continue as to an Indemnified Person who has ceased to be a Director or officer and shall inure to the benefit of his or her heirs, executors and administrators. |
161. | Subject to the proviso hereto, no Person shall be recognised by the Company as holding any Share upon any trust and the Company shall not, unless required by law, be bound by or be compelled in any way to recognise (even when having notice thereof) any equitable, contingent, future or partial interest in any Share or (except only as otherwise provided by these Articles or as the Companies Act requires) any other right in respect of any Share except an absolute right to the entirety thereof in each Shareholder registered in the Register, provided that, notwithstanding the foregoing, the Company shall be entitled to recognise any such interests as shall be determined by the Directors. |
162. | Notwithstanding any other provision of the Articles, the Articles under this heading “Business Combination Requirements” shall apply during the period commencing upon the adoption of the Articles and terminating upon the first to occur of the consummation of any Business Combination and the distribution of the Trust Fund pursuant to Article 170. In the event of a conflict between the Articles under this heading “Business Combination Requirements” and any other Articles, the provisions of the Articles under this heading “Business Combination Requirements” shall prevail. |
163. | Article 170(b) may not be amended prior to the consummation of a Business Combination without a Special Resolution, the approval threshold for which is unanimity (100%) of all votes cast at a meeting of the Shareholders. |
164. | Prior to the consummation of any Business Combination, the Company shall either: |
(a) | submit such Business Combination to its Members for approval; or |
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(b) | provide Members with the opportunity to have their Shares repurchased by means of a tender offer for a per-Share repurchase price payable in cash, equal to the aggregate amount then on deposit in the Trust Fund, calculated as of two business days prior to the consummation of a Business Combination, including interest earned on the Trust Fund and not previously released to the Company to fund Regulatory Withdrawals, subject to an annual limit of $250,000, for a maximum of 24 months and/or to pay income taxes, if any, (less up to $100,000 of interest to pay dissolution expenses), divided by the number of Public Shares then in issue, provided that the Company shall not repurchase Public Shares in an amount that would cause the Company’s net tangible assets to be less than US$5,000,001. |
165. | If the Company initiates any tender offer in accordance with Rule 13e-4 and Regulation 14E of the Exchange Act in connection with a Business Combination, it shall file tender offer documents with the SEC prior to completing a Business Combination which contain substantially the same financial and other information about such Business Combination and the redemption rights as is required under Regulation 14A of the Exchange Act. |
166. | If, alternatively, the Company holds a Member vote to approve a proposed Business Combination, the Company will conduct any compulsory redemption in conjunction with a proxy solicitation pursuant to Regulation 14A of the Exchange Act and not pursuant to the tender offer rules and file proxy materials with the SEC. |
167. | At a general meeting called for the purposes of approving a Business Combination pursuant to these Articles, in the event that a majority of the Shares voted are voted for the approval of a Business Combination, the Company shall be authorised to consummate a Business Combination. |
168. | Where such redemptions in connection with an initial Business Combination are not conducted via the tender offer rules pursuant to Article 165, any Member holding Public Shares who is not a Founder, officer or Director may, contemporaneously with any vote on a Business Combination, elect to have their Public Shares redeemed for cash (the “ IPO Redemption per-Share redemption price payable in cash, equal to the aggregate amount then on deposit in the Trust Fund calculated as of two business days prior to the consummation of a Business Combination, including interest earned on the Trust Fund and not previously released to the Company to fund Regulatory Withdrawals, subject to an annual limit of $250,000, for a maximum of 24 months and/or to pay income taxes, if any, (less up to $100,000 of interest to pay dissolution expenses), divided by the number of Public Shares then in issue (such redemption price being referred to herein as the “Redemption Price”) |
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169. | The Redemption Price shall be paid promptly following the consummation of the relevant Business Combination. If the proposed Business Combination is not approved or completed for any reason then such redemptions shall be cancelled and share certificates (if any) returned to the relevant Members as appropriate. |
170. | (a) In the event that either the Company does not consummate a Business Combination by twenty-four months after the closing of the IPO, or such later time as the Members of the Company may approve in accordance with the Articles or per-Share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Fund, including interest earned on the Trust Fund and not previously released to the Company to fund Regulatory Withdrawals, subject to an annual limit of $250,000, for a maximum of 24 months and/or to pay income taxes, if any, (less up to $100,000 of interest to pay dissolution expenses), divided by the number of Public Shares then in issue, which redemption will completely extinguish public Members’ rights as Members (including the right to receive further liquidation distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining Members and the Directors, liquidate and dissolve, subject in the case of sub-articles (ii) and (iii), to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law. |
171. | Except for the withdrawal of interest to pay income taxes and for Regulatory Withdrawals, if any, none of the funds held in the Trust Fund shall be released from the Trust Fund until the earlier of an IPO Redemption pursuant to Article 168, a repurchase of Shares by means of a tender offer pursuant to Article 164(b), a distribution of the Trust Fund pursuant to Article 170(a) or an amendment under Article 170(b). In no other circumstance shall a holder of Public Shares have any right or interest of any kind in the Trust Fund. |
172. | After the issue of Public Shares, and prior to the consummation of a Business Combination, the Directors shall not issue additional Shares or any other securities that would entitle the holders thereof to: (a) receive funds from the Trust Fund; or (b) vote on any Business Combination or any other proposal presented to the Shareholders prior to or in connection with the completion of a Business Combination. |
173. | The Company must complete one or more Business Combinations having an aggregate fair market value of at least 80% of the assets held in the Trust Fund (net of amounts previously disbursed to the Company’s |
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management for working capital purposes and excluding the amount of deferred underwriting discounts held in the Trust Fund and taxes payable on the income earned on the Trust Fund) at the time of the Company’s signing a definitive agreement in connection with a Business Combination. An initial Business Combination must not be effectuated solely with another blank cheque company or a similar company with nominal operations. |
174. | Any payment made to members of the Audit Committee (if one exists) shall require the review and approval of the Directors, with any Director interested in such payment abstaining from such review and approval. |
175. | A Director may vote in respect of any Business Combination in which such Director has a conflict of interest with respect to the evaluation of such Business Combination. Such Director must disclose such interest or conflict to the other Directors. A resolution of the Directors to approve a Business Combination will only be validly passed if all Sponsor Directors and a majority of the independent directors (as defined pursuant to the rules and regulations of the Designated Stock Exchange) vote in favor of the Business Combination. |
176. | The Audit Committee shall monitor compliance with the terms of the IPO and, if any non-compliance is identified, the Audit Committee shall be charged with the responsibility to take all action necessary to rectify such non-compliance or otherwise cause compliance with the terms of the IPO. |
177. | The Company may enter into a Business Combination with a target business that is affiliated with the Sponsor, the Directors or officers of the Company if such transaction were approved by a majority of the independent directors (as defined pursuant to the rules and regulations of the Designated Stock Exchange) and the directors that did not have an interest in such transaction. In the event the Company enters into a Business Combination with an entity that is affiliated with the Sponsor, officers or Directors, the Company, or a committee of independent directors (as defined pursuant to the rules and regulations of the Designated Stock Exchange), will obtain an opinion that our initial Business Combination is fair to the Company from a financial point of view from either an independent investment banking firm that is a member of the Financial Industry Regulatory Authority, Inc. or an independent accounting firm. |
178. | In recognition and anticipation of the facts that: (a) directors, managers, officers, members, partners, managing members, employees and/or agents of one or more members of the Investor Group (each of the foregoing, an “ Investor Group Related Person”) |
179. | To the fullest extent permitted by applicable law, the Investor Group and the Investor Group Related Persons shall have no duty, except and to the extent expressly assumed by contract, to refrain from engaging directly or indirectly in the same or similar business activities or lines of business as the Company. |
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180. | To the fullest extent permitted by applicable law, the Company renounces any interest or expectancy of the Company in, or in being offered an opportunity to participate in, any potential transaction or matter which may be a corporate opportunity for either the Investor Group or the Investor Group Related Persons, on the one hand, and the Company, on the other, unless such opportunity is expressly offered to such Investor Group Related Person in their capacity as an Officer or Director of the Company and the opportunity is one that the Company is able to complete on a reasonable basis. |
181. | Except to the extent expressly assumed by contract, to the fullest extent permitted by applicable law, the Investor Group and the Investor Group Related Persons shall have no duty to communicate or offer any such corporate opportunity to the Company and shall not be liable to the Company or its Members for breach of any fiduciary duty as a Member, Director and/or officer of the Company solely by reason of the fact that such party pursues or acquires such corporate opportunity for itself, himself or herself, directs such corporate opportunity to another person, or does not communicate information regarding such corporate opportunity to the Company, unless such opportunity is expressly offered to such Investor Group Related Person in their capacity as an Officer or Director of the Company and the opportunity is one that the Company is able to complete on a reasonable basis. |
182. | Except as provided elsewhere in these Articles, the Company hereby renounces any interest or expectancy of the Company in, or in being offered an opportunity to participate in, any potential transaction or matter which may be a corporate opportunity for both the Company and the Investor Group, about which a Director and/or officer of the Company who is also an Investor Group Related Person acquires knowledge. The Company shall, to the fullest extent permitted by applicable law, waive an interest in any corporate opportunity offered to any Director or officer unless such opportunity is expressly offered to such person solely in his or her capacity as a Director or Officer and such opportunity is one that the Company is able to complete on a reasonable basis. |
183. | To the extent a court might hold that the conduct of any activity related to a corporate opportunity that is renounced in this Article to be a breach of duty to the Company or its Members, the Company and (if applicable) each Member hereby waives, to the fullest extent permitted by applicable law, any and all claims and causes of action that the Company may have for such activities described in Articles 178 to 182 above. To the fullest extent permitted by applicable law, the provisions of Articles 178 to 182 apply equally to activities conducted in the future and that have been conducted in the past. |
184. | If the Company shall be wound up the liquidator shall apply the assets of the Company in such manner and order as he thinks fit in satisfaction of creditors’ claims. |
185. | If the Company shall be wound up, the liquidator may, with the sanction of an Ordinary Resolution divide amongst the Shareholders in specie or kind the whole or any part of the assets of the Company (whether they shall consist of property of the same kind or not) and may, for such purpose set such value as he deems fair upon any property to be divided as aforesaid and may determine how such division shall be carried out as between the Shareholders or different Classes. The liquidator may, with the like sanction, vest the whole or any part of such assets in trustees upon such trusts for the benefit of the Shareholders as the liquidator, with the like sanction shall think fit, but so that no Shareholder shall be compelled to accept any assets whereon there is any liability. |
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186. | Subject to the Companies Act and the rights attaching to the various Classes, the Company may at any time and from time to time by Special Resolution alter or amend these Articles in whole or in part. |
187. | For the purpose of determining those Shareholders that are entitled to receive notice of, attend or vote at any meeting of Shareholders or any adjournment thereof, or those Shareholders that are entitled to receive payment of any dividend, or in order to make a determination as to who is a Shareholder for any other purpose, the Directors may, by any means in accordance with the requirements of the Designated Stock Exchange, provide that the Register shall be closed for transfers for a stated period which shall not exceed in any case 40 days. If the Register shall be so closed for the purpose of determining those Shareholders that are entitled to receive notice of, attend or vote at a meeting of Shareholders the Register shall be so closed for at least ten days immediately preceding such meeting and the record date for such determination shall be the date of the closure of the Register. |
188. | In lieu of or apart from closing the Register, the Directors may fix in advance a date as the record date for any such determination of those Shareholders that are entitled to receive notice of, attend or vote at a meeting of the Shareholders and for the purpose of determining those Shareholders that are entitled to receive payment of any dividend the Directors may, at or within 90 days prior to the date of declaration of such dividend, fix a subsequent date as the record date for such determination. |
189. | If the Register is not so closed and no record date is fixed for the determination of those Shareholders entitled to receive notice of, attend or vote at a meeting of Shareholders or those Shareholders that are entitled to receive payment of a dividend, the date on which notice of the meeting is posted or the date on which the resolution of the Directors declaring such dividend is adopted, as the case may be, shall be the record date for such determination of Shareholders. When a determination of those Shareholders that are entitled to receive notice of, attend or vote at a meeting of Shareholders has been made as provided in this Article, such determination shall apply to any adjournment thereof. |
190. | The Company may by Special Resolution resolve to be registered by way of continuation in a jurisdiction outside the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing. In furtherance of a resolution adopted pursuant to this Article, the Directors may cause an application to be made to the Registrar of Companies to deregister the Company in the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing and may cause all such further steps as they consider appropriate to be taken to effect the transfer by way of continuation of the Company. |
191. | The Company may merge or consolidate in accordance with the Companies Act. |
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192. | To the extent required by the Companies Act, the Company may by Special Resolution resolve to merge or consolidate the Company. |
193. | The Directors, or any authorised service providers (including the Officers, the Secretary and the registered office agent of the Company), shall be entitled to disclose to any regulatory or judicial authority, or to any stock exchange on which the Shares may from time to time be listed, any information regarding the affairs of the Company including, without limitation, information contained in the Register and books of the Company. |
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Re: | Equityholders Support Agreement |
1) | Each Insider irrevocably agrees that it, he or she or they shall: |
a) | as promptly as reasonably practicable (and in any event, within 48 hours) after the Registration Statement becomes effective under the Securities Act, validly execute and deliver to the Company in respect of all Company Common Units owned by it, him or her or them (collectively, all such shares, the “ Covered Shares 304-C:60 and 304-C:156 of the NHLLCA, adopting and approving the Company Merger Agreement, the Merger Agreement and the transactions contemplated thereby, including the Company Reorganization and the Business Combination; |
b) | if a meeting of the Company’s unitholders is held with respect to the Business Combination (a “ Unitholders Meeting |
c) | vote (or execute and return an action by written consent), or cause to be voted at any Unitholders Meeting, or validly execute and return and cause such consent to be granted with respect to, all of such Covered Shares against any offer, inquiry, proposal or indication of interest, written or oral relating to any business combination or merger, other than with Acquiror, its shareholders and/or their respective Affiliates and Representatives, and any other action that would reasonably be expected to materially impede, interfere with, delay, postpone or adversely affect the Business Combination or result in a breach of any covenant, representation or warranty or other obligation or agreement of the Company or Symbotic, as applicable, contained in the Merger Agreement or this Equityholders Support Agreement or result in any of the conditions set forth in Article VIII of the Merger Agreement not being fulfilled; and |
d) | each Insider agrees not to, directly or indirectly, Transfer any of such Insider’s Covered Shares, or enter into any contract, option or other arrangement or understanding (including any profit sharing arrangement) with respect to the Transfer of any of such Insider’s Covered Shares, provided that, notwithstanding the foregoing, any Insider may Transfer such Insider’s Covered Shares (i) in the case of an individual, by gift to a member of the individual’s immediate family or to a trust, the beneficiary of which is a member of the individual’s immediate family, an Affiliate of such person or to a charitable organization, or by virtue of laws of descent and distribution upon death of the individual, or pursuant to a qualified domestic relations order and (ii) in the case of an entity, to an Affiliate thereof (each of clause (i) or (ii), a “Permitted Transferee ”), in each case, so long as such Permitted Transferee agrees in writing, at or prior to the time of such Transfer, to be bound by this Equityholders Support Agreement. Until the valid termination of this Equityholders Support Agreement in accordance with paragraph 13, each Insider shall not enter into any voting agreement, voting trust or similar arrangement or understanding with respect to any of such Insider’s Covered Shares, grant any proxy, consent or power of attorney with respect to any of such Insider’s Covered Shares or take any action that would make the representations and warranties of such Insider contained in this Equityholders Support Agreement untrue or incorrect, violate or conflict with such Insider’s covenants and obligations under this Equityholders Support Agreement or otherwise have the effect of restricting, preventing or disabling such Insider from performing any of its obligations under this Agreement. |
2) | Each Insider hereby agrees and acknowledges that: (i) prior to any valid termination of the Merger Agreement pursuant to its terms, Acquiror would be irreparably injured in the event of a breach by any Insider of its, his or her or their obligations under paragraph 1 of this Equityholders Support Agreement; (ii) monetary damages would not be an adequate remedy for such breach; and (iii) Acquiror shall be entitled to injunctive relief, in addition to any other remedy that such party may have in law or in equity, in the event of such breach. Notwithstanding the foregoing, or anything herein to the contrary, under no circumstances shall any party to this Equityholders Support Agreement be liable for any special, incidental, consequential, exemplary or punitive damages to any other party in respect of this Equityholders Support Agreement, including any breach hereof, except to the extent such damages result from such party’s fraud or such party’s Willful Breach of this Equityholders Support Agreement. |
3) | Each Insider hereby agrees not to assert, exercise or perfect, directly or indirectly, and irrevocably and unconditionally waives, any dissenters’ rights (including under Sections 304-C:160 through 304-C:172 of the NHLLCA, a copy of which is attached hereto as Schedule B ) with respect to the Company Reorganization and the Business Combination. |
4) | As used herein, (i) “ Beneficially Own Company Common Units Class B-1 Preferred Units, Class B-2 Preferred Units, Class C Units and Class C-1 Units, and any securities into which such shares are converted, including, for the avoidance of doubt, any conversion from Class C-1 Units to Class C Units prior to the Company Reorganization and the Business Combination; and (iii) “Transfer |
the SEC promulgated thereunder with respect to, any security, (b) entry into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (c) public announcement of any intention to effect any transaction specified in clause (a) or (b). |
5) | Notwithstanding anything in this Equityholders Support Agreement to the contrary, nothing in this Equityholders Support Agreement shall limit any rights any Insider has in his, her or their capacity as manager of the Company. Each Insider is executing this Equityholders Support Agreement solely in his, her, their or its capacity as a record or beneficial owner of Company Common Units, and Acquiror specifically acknowledges and agrees that each and every agreement herein by each Insider is made only in such capacity and subject to the limitations set forth in the immediately preceding sentence. |
6) | This Equityholders Support Agreement and the other agreements referenced herein constitute the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and supersede all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby, including, without limitation, with respect to each Insider. This Equityholders Support Agreement may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument executed by Acquiror. |
7) | No Insider may, except as set forth herein or in connection with any Transfer of Covered Shares to a Permitted Transferee, assign this Equityholders Support Agreement or assign or delegate, as applicable, any of its rights, interests, or obligations hereunder, without the prior written consent of Acquiror (except that, following any valid termination of the Merger Agreement, no consent from Acquiror shall be required). Acquiror may not, except as set forth herein, assign this Equityholders Support Agreement or assign or delegate, as applicable, any of its rights, interests, or obligations hereunder, without the prior written consent of the other parties hereto. Any purported assignment or delegation in violation of this paragraph 7 shall be void and ineffectual and shall not operate to transfer, assign or delegate any interest or title to the purported assignee. This Equityholders Support Agreement shall be binding on each Insider and Acquiror and their respective successors, heirs, personal representatives and assigns and permitted transferees. |
8) | Nothing in this Equityholders Support Agreement shall be construed to confer upon, or give to, any Person other than the parties hereto any right, remedy or claim under or by reason of this Equityholders Support Agreement or of any covenant, condition, stipulation, promise or agreement hereof. All covenants, conditions, stipulations, promises and agreements contained in this Equityholders Support Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors, heirs, personal representatives and assigns and permitted transferees. |
9) | This Equityholders Support Agreement may be executed in any number of original, electronic or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. |
10) | This Equityholders Support Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Equityholders Support Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Equityholders Support Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable. |
11) | This Equityholders Support Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware applicable to contracts executed in and to be performed in that State. Each of the parties hereto agrees that: (i) it shall bring any Proceeding in connection with, arising out of or otherwise |
relating to this Equityholders Support Agreement, or any instrument or other document delivered pursuant to this Equityholders Support Agreement exclusively in the courts of the State of Delaware in the Court of Chancery of the State of Delaware, or (and only if) such court finds it lacks subject matter jurisdiction, the Superior Court of the State of Delaware (Complex Commercial Division); provided that if subject matter jurisdiction over the Proceeding is vested exclusively in the United States federal courts, such Proceeding shall be heard in the United States District Court for the District of Delaware (the “Chosen Courts |
12) | All notices, requests, instructions, consents, claims, demands, waivers, approvals and other communications to be given or made hereunder by one or more parties to one or more of the other parties shall, unless otherwise specified herein, be in writing and shall be deemed to have been duly given or made on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day (or otherwise on the next succeeding Business Day) if (a) served by personal delivery or by a nationally recognized overnight courier service upon the party or parties for whom it is intended, (b) delivered by registered or certified mail, return receipt requested, or (c) sent by email; provided that the email transmission is promptly confirmed by telephone or otherwise. Such communications shall be sent to the respective parties at the following street addresses or email addresses or at such other street address or email address for a Party as shall be specified for such purpose in a notice given in accordance with this paragraph 12: |
c/o Symbotic | ||
200 Research Drive | ||
Wilmington, MA 01887 | ||
Attention: | Corey Dufresne | |
Email: | cdufresne@symbotic.com |
Sullivan & Cromwell LLP | ||
125 Broad Street | ||
New York, NY 10004 and 1870 Embarcadero Road Palo Alto, CA 94303 | ||
Attention: | Robert W. Downes George Sampas Matthew B. Goodman | |
Email: | downesr@sullcrom.com sampasg@sullcrom.com goodmanm@sullcrom.com |
Softbank Investment Advisors Legal | ||
One Circle Star Way | ||
San Carlos, CA 94070 | ||
Attention: | General Counsel | |
Email: | legal@softbank.com |
Paul, Weiss, Rifkind, Wharton & Garrison LLP | ||
1285 Avenue of the Americas New York, NY 10019 | ||
Attention: | Jeffrey D. Marell Austin Pollet | |
Email: | jmarell@paulweiss.com apollet@paulweiss.com |
13) | Upon the valid termination of the Merger Agreement pursuant to its terms, this Equityholders Support Agreement shall automatically terminate and be of no force and effect; provided , however , no such termination shall relieve each Insider or Acquiror from any liability resulting from a breach of this Equityholders Support Agreement occurring prior to such termination. |
14) | Each Insider hereby represents and warrants (severally and not jointly as to itself, himself or herself or themselves only) to Acquiror as follows: (i) if such Person is not an individual, it is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized, and the execution, delivery and performance of this Equityholders Support Agreement and the consummation of the transactions contemplated hereby are within such Person’s corporate or company powers and have been duly authorized by all necessary corporate or company actions on the part of such Person; (ii) if such Person is an individual, such Person has full legal capacity, right and authority to execute and deliver this Equityholders Support Agreement and to perform his or her or their obligations hereunder; (iii) this Equityholders Support Agreement has been duly executed and delivered by such Person and, assuming due authorization, execution and delivery by the other parties to this Equityholders Support Agreement, this Equityholders Support Agreement constitutes a legally valid and binding obligation of such Person, enforceable against such Person in accordance with the terms hereof (except as enforceability may be limited by bankruptcy Laws, other similar Laws affecting creditors’ rights and general principles of equity affecting the availability of specific performance and other equitable remedies); (iv) the execution and delivery of this Equityholders Support Agreement by such Person does not, and the performance by such Person of his, her, their or its obligations hereunder will not, (A) if such Person is not an individual, conflict with or result in a violation of the organizational documents of such Person, (B) require any consent or approval that has not been given or other action that has not been taken by any third party (including under any Contract binding upon such Person or such Person’s Company Common Units), in each case, to the extent such consent, approval or other action would prevent, enjoin or materially delay the performance by such Person of his, her, their or its obligations under this Equityholders Support Agreement or (C) otherwise violate any Contract to which such Person is bound (including, without limitation, any non-competition or non-solicitation agreement with any employer or former employer); (v) there are no Proceedings pending against such Person or, to the knowledge of such Person, threatened against such Person, before (or, in the case of threatened Proceedings, that would be before) any arbitrator or any Governmental Entity, which in any manner challenges or seeks to prevent, enjoin or materially delay the performance by such Person of its, his or her or their obligations under this Equityholders Support Agreement; (vi) except for fees described in Sections 3.18 and 4.16 of the Merger Agreement, no financial advisor, investment banker, broker, finder or other similar intermediary is entitled to any fee or commission from such Person or any of their respective Affiliates in connection with the Merger Agreement or this Equityholders Support Agreement or any of the |
respective transactions contemplated thereby and hereby, in each case, based upon any arrangement or agreement made by or, to the knowledge of such Person, on behalf of such Person, for which Acquiror, the Company or any of their respective Affiliates would have any obligations or liabilities of any kind or nature; (vii) such Person has had the opportunity to read the Merger Agreement and this Equityholders Support Agreement and has had the opportunity to consult with its tax and legal advisors; (viii) such Person has not entered into, and shall not enter into, any agreement that would restrict, limit or interfere with the performance of such Person’s obligations hereunder; (ix) such Person has good title to all such Company Common Units, and there exist no Liens or any other limitation or restriction (including, without limitation, any restriction on the right to vote, sell or otherwise dispose of such Company Common Units (other than transfer restrictions under the Securities Act)) affecting any such Company Common Units, other than pursuant to (A) this Equityholders Support Agreement, (B) the Company LLC Agreement, (C) the Company Merger Agreement and the Merger Agreement or (D) any applicable securities laws; and (x) the Company Common Units identified on Schedule A are the Company Common Units owned of record or Beneficially Owned by the Insiders as of the date hereof, and none of such Company Common Units is subject to any proxy, voting trust or other agreement or arrangement with respect to the voting of such Company Common Units, except as provided in this Equityholders Support Agreement. |
15) | If, and as often as, there are any changes in the Company or the Company Common Units by way of share split, share dividend, combination or reclassification, or through merger, consolidation, reorganization, recapitalization or business combination, or by any other means, equitable adjustment shall be made to the provisions of this Equityholders Support Agreement as may be required so that the rights, privileges, duties and obligations hereunder shall continue with respect to the Company, the Company’s successor or the surviving entity of such transaction and the Company Common Units, each as so changed. |
16) | Each of the parties hereto agrees to execute and deliver hereafter any further document, agreement or instrument of assignment, transfer or conveyance as may be necessary or desirable to effectuate the purposes hereof and as may be reasonably requested in writing by another party hereto. |
Sincerely, | ||
The RBC 2021 4 Year GRAT | ||
By: | /s/ Richard B. Cohen | |
Name: Richard B. Cohen | ||
Title: As Trustee (and not individually) |
The RBC Millennium Trust | ||
By: | /s/ Janet L. Cohen | |
Name: Janet L. Cohen | ||
Title: As Trustee (and not individually) | ||
By: | /s/ David A. Ladensohn | |
Name: David A. Ladensohn | ||
Title: As Trustee (and not individually) |
RJJRP Holdings, Inc. | ||
By: | /s/ Richard B. Cohen | |
Name: Richard B. Cohen | ||
Title: President and Chief Executive Officer |
/s/ Perry Cohen |
Perry Cohen |
The Jill Cohen Mill Trust | ||
By: | /s/ David A. Ladensohn | |
Name: | David A. Ladensohn | |
Title: | As Trustee (and not individually) |
The Kanter Family Trust | ||
By: | /s/ Joseph P. Toce, Jr. | |
Name: | Joseph P. Toce, Jr. | |
Title: | As Trustee (and not individually) | |
By: | /s/ Daniel Kanter | |
Name: | Daniel Kanter | |
Title: | As Trustee (and not individually) |
The PLC Family Trust | ||
By: | /s/ Joseph P. Toce, Jr. | |
Name: | Joseph P. Toce, Jr. | |
Title: | As Trustee (and not individually) | |
By: | /s/ Adam S. Levy | |
Name: | Adam S. Levy | |
Title: | As Trustee (and not individually) |
The 2014 QSST F/B/O Perry Cohen | ||
By: | /s/ David A. Ladensohn | |
Name: | David A. Ladensohn | |
Title: | As Trustee (and not individually) |
The 2014 QSST F/B/O Rachel Cohen Kanter | ||
By: | /s/ David A. Ladensohn | |
Name: | David A. Ladensohn | |
Title: | As Trustee (and not individually) |
/s/ Iman Abbasi |
Iman Abbasi |
/s/ William M. Boyd III |
William M. Boyd III |
/s/ George Dramalis |
George Dramalis |
/s/ Robert Doucette |
Robert Doucette |
/s/ Corey C. Dufresne |
Corey C. Dufresne |
/s/ Thomas Ernst |
Thomas Ernst |
Acknowledged and Agreed: | ||
WAREHOUSE TECHNOLOGIES LLC | ||
By: | /s/ Richard B. Cohen | |
Name: Richard B. Cohen | ||
Title: President | ||
Acknowledged and Agreed: | ||
SVF INVESTMENT CORP. 3 | ||
By: | /s/ Ioannis Pipilis | |
Name: Ioannis Pipilis | ||
Title: Chairman and Chief Executive Officer |
1) | The Sponsor and each Insider irrevocably agrees that it, he or she or they shall: |
a) | vote any Ordinary Shares and Founder Shares owned by it, him or her or them (collectively, all such shares, the “ Covered Shares |
b) | when the Special Meeting is held, appear at such meeting or otherwise cause the Covered Shares to be counted as present thereat for the purpose of establishing a quorum; |
c) | vote (or execute and return an action by written consent), or cause to be voted at the Special Meeting, or validly execute and return and cause such consent to be granted with respect to, all of such Covered Shares against any Business Combination Proposal, other than with the Company, its members and/or their respective Affiliates and Representatives, and any other action that would reasonably be expected to materially impede, interfere with, delay, postpone or adversely affect the Business Combination or result in a breach of any covenant, representation or warranty or other obligation or agreement of Acquiror, Merger Sub, the Sponsor or the Insiders, as applicable, contained in the Merger Agreement, the Subscription Agreements or this Sponsor Support Agreement or result in any of the conditions set forth in Article VIII of the Merger Agreement not being fulfilled; |
d) | vote (or execute and return an action by written consent), or cause to be voted at the Special Meeting, or validly execute and return and cause such consent to be granted with respect to, all of such Covered Shares against any change in business, management or the board of directors of Acquiror (other than in connection with the Business Combination and the other proposals related to the Business Combination); and |
e) | not redeem any Covered Shares owned by it, him or her or them in connection with such shareholder approval or otherwise. |
2) | The Sponsor and each Insider hereby agrees and acknowledges that: (i) prior to any valid termination of the Merger Agreement pursuant to its terms, the Company would be irreparably injured in the event of a breach by the Sponsor or any Insider of its, his or her or their obligations under paragraph 1 of this Sponsor Support Agreement; (ii) monetary damages would not be an adequate remedy for such breach; and (iii) the Company shall be entitled to injunctive relief, in addition to any other remedy that such party may have in law or in equity, in the event of such breach. Notwithstanding the foregoing, or anything herein to the contrary, under no circumstances shall any party to this Sponsor Support Agreement be liable for any special, incidental, consequential, exemplary or punitive damages to any other party in respect of this Sponsor Support Agreement, including any breach hereof, except to the extent such damages result from such party’s fraud or such party’s Willful Breach of this Sponsor Support Agreement. |
3) | The Sponsor and each Insider hereby agrees that, during the period commencing on the date hereof and ending at the earlier of the Effective Time or valid termination of the Merger Agreement pursuant to its terms, the Sponsor and each Insider shall not enter into, modify or amend any Contract (or waive any provision thereof) between or among the Sponsor or such Insider, anyone related by blood, marriage or adoption to the Sponsor or such Insider or any Affiliate of the Sponsor or such Insider (other than Acquiror and its Subsidiaries), on the one hand, and Acquiror or any of Acquiror’s Subsidiaries, on the other hand, including, for the avoidance of doubt, that certain Forward Purchase Agreement, dated as of March 8, 2021, by and among Acquiror and SVF II SPAC Investment 3 (DE) LLC and that certain letter agreement, dated as of the date hereof, from Sponsor and the Insiders to Acquiror and the Company (the “ Sponsor Agreement |
4) | During the period commencing on the date hereof and ending at the earlier of the Effective Time or valid termination of the Merger Agreement pursuant to its terms, the Sponsor and each Insider hereby waives and agrees to not perfect (in each case, for such Person and for such Person’s successors, heirs and assigns), to the fullest extent permitted by Law, any anti-dilution or similar protections with respect to the Covered Shares. |
5) | As used herein, (i) “ Beneficially Own Founder Shares Ordinary Shares Private Placement Shares |
6) | Notwithstanding anything in this Sponsor Support Agreement to the contrary, nothing in this Sponsor Support Agreement shall limit any rights any Insider has in his, her or their capacity as director of Acquiror pursuant to Section 7.2(b) of the Merger Agreement. Sponsor and each Insider is executing this Sponsor Support Agreement solely in his, her, their or its capacity as a record or beneficial owner of Founder Shares or Ordinary Shares, and the Company specifically acknowledges and agrees that each and every agreement herein by Sponsor and each Insider is made only in such capacity and subject to the limitations set forth in the immediately preceding sentence. |
7) | This Sponsor Support Agreement and the other agreements referenced herein constitute the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and supersede all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby, including, without limitation, with respect to the Sponsor and each Insider. This Sponsor Support Agreement may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument executed by the Company. |
8) | No party hereto may, except as set forth herein, assign this Sponsor Support Agreement or assign or delegate, as applicable, any of its rights, interests, or obligations hereunder, other than in conjunction with transfers permitted by the Sponsor Agreement, without the prior written consent of the other parties hereto (except that, following any valid termination of the Merger Agreement, no consent from the Company shall be required). Any purported assignment or delegation in violation of this paragraph shall be void and ineffectual and shall not operate to transfer, assign or delegate any interest or title to the purported assignee. This Sponsor Support Agreement shall be binding on the Sponsor, each Insider and the Company and their respective successors, heirs, personal representatives and assigns and permitted transferees. |
9) | Nothing in this Sponsor Support Agreement shall be construed to confer upon, or give to, any Person other than the parties hereto any right, remedy or claim under or by reason of this Sponsor Support Agreement or of any covenant, condition, stipulation, promise or agreement hereof. All covenants, conditions, stipulations, promises and agreements contained in this Sponsor Support Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors, heirs, personal representatives and assigns and permitted transferees. |
10) | This Sponsor Support Agreement may be executed in any number of original, electronic or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. |
11) | This Sponsor Support Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Sponsor Support Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Sponsor Support Agreement a |
provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable. |
12) | This Sponsor Support Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware applicable to contracts executed in and to be performed in that State. Each of the parties hereto agrees that: (i) it shall bring any Proceeding in connection with, arising out of or otherwise relating to this Sponsor Support Agreement, or any instrument or other document delivered pursuant to this Sponsor Support Agreement exclusively in the courts of the State of Delaware in the Court of Chancery of the State of Delaware, or (and only if) such court finds it lacks subject matter jurisdiction, the Superior Court of the State of Delaware (Complex Commercial Division); provided that if subject matter jurisdiction over the Proceeding is vested exclusively in the United States federal courts, such Proceeding shall be heard in the United States District Court for the District of Delaware (the “Chosen Courts |
13) | All notices, requests, instructions, consents, claims, demands, waivers, approvals and other communications to be given or made hereunder by one or more parties to one or more of the other parties shall, unless otherwise specified herein, be in writing and shall be deemed to have been duly given or made on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day (or otherwise on the next succeeding Business Day) if (a) served by personal delivery or by a nationally recognized overnight courier service upon the party or parties for whom it is intended, (b) delivered by registered or certified mail, return receipt requested, or (c) sent by email; provided that the email transmission is promptly confirmed by telephone or otherwise. Such communications shall be sent to the respective parties at the following street addresses or email addresses or at such other street address or email address for a Party as shall be specified for such purpose in a notice given in accordance with this paragraph 13: |
c/o Symbotic | ||
200 Research Drive | ||
Wilmington, MA 01887 | ||
Attention: | Corey Dufresne | |
Email: | cdufresne@symbotic.com |
Sullivan & Cromwell LLP | ||
125 Broad Street | ||
New York, NY 10004 and 1870 Embarcadero Road Palo Alto, CA 94303 | ||
Attention: | Robert W. Downes George Sampas Matthew B. Goodman | |
Email: | downesr@sullcrom.com sampasg@sullcrom.com goodmanm@sullcrom.com |
Softbank Investment Advisors Legal | ||
One Circle Star Way | ||
San Carlos, CA 94070 | ||
Attention: | General Counsel | |
Email: |
legal@softbank.com |
Paul, Weiss, Rifkind, Wharton & Garrison LLP | ||
1285 Avenue of the Americas New York, NY 10019 | ||
Attention: | Jeffrey D. Marell Austin Pollet | |
Email: | jmarell@paulweiss.com apollet@paulweiss.com |
14) | Upon the valid termination of the Merger Agreement pursuant to its terms, this Sponsor Support Agreement shall automatically terminate and be of no force and effect; provided , however , no such termination shall relieve the Sponsor, each Insider or the Company from any liability resulting from a breach of this Sponsor Support Agreement occurring prior to such termination. |
15) | The Sponsor and each Insider hereby represents and warrants (severally and not jointly as to itself, himself or herself or themselves only) to the Company as follows: (i) if such Person is not an individual, it is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized, and the execution, delivery and performance of this Sponsor Support Agreement and the consummation of the transactions contemplated hereby are within such Person’s corporate or company powers and have been duly authorized by all necessary corporate or company actions on the part of such Person; (ii) if such Person is an individual, such Person has full legal capacity, right and authority to execute and deliver this Sponsor Support Agreement and to perform his or her obligations hereunder; (iii) this Sponsor Support Agreement has been duly executed and delivered by such Person and, assuming due authorization, execution and delivery by the other parties to this Sponsor Support Agreement, this Sponsor Support Agreement constitutes a legally valid and binding obligation of such Person, enforceable against such Person in accordance with the terms hereof (except as enforceability may be limited by bankruptcy Laws, other |
similar Laws affecting creditors’ rights and general principles of equity affecting the availability of specific performance and other equitable remedies); (iv) the execution and delivery of this Sponsor Support Agreement by such Person does not, and the performance by such Person of his, her, their or its obligations hereunder will not, (A) if such Person is not an individual, conflict with or result in a violation of the organizational documents of such Person, (B) require any consent or approval that has not been given or other action that has not been taken by any third party (including under any Contract binding upon such Person or such Person’s Founder Shares or Private Placement Shares, as applicable), in each case, to the extent such consent, approval or other action would prevent, enjoin or materially delay the performance by such Person of his, her, their or its obligations under this Sponsor Support Agreement or (C) otherwise violate any Contract to which such Person is bound (including, without limitation, any non-competition or non-solicitation agreement with any employer or former employer); (v) there are no Proceedings pending against such Person or, to the knowledge of such Person, threatened against such Person, before (or, in the case of threatened Proceedings, that would be before) any arbitrator or any Governmental Entity, which in any manner challenges or seeks to prevent, enjoin or materially delay the performance by such Person of its, his or her or their obligations under this Sponsor Support Agreement; (vi) except for fees described in Section 4.16 of the Merger Agreement, no financial advisor, investment banker, broker, finder or other similar intermediary is entitled to any fee or commission from such Person, Acquiror, any of its Subsidiaries or any of their respective Affiliates in connection with the Merger Agreement or this Sponsor Support Agreement or any of the respective transactions contemplated thereby and hereby, in each case, based upon any arrangement or agreement made by or, to the knowledge of such Person, on behalf of such Person, for which Acquiror, the Company or any of their respective Affiliates would have any obligations or liabilities of any kind or nature; (vii) such Person has had the opportunity to read the Merger Agreement and this Sponsor Support Agreement and has had the opportunity to consult with its tax and legal advisors; (viii) such Person has not entered into, and shall not enter into, any agreement that would restrict, limit or interfere with the performance of such Person’s obligations hereunder; (ix) such Person has good title to all such Founder Shares and Private Placement Shares, and there exist no Liens or any other limitation or restriction (including, without limitation, any restriction on the right to vote, sell or otherwise dispose of such Founder Shares or Private Placement Shares (other than transfer restrictions under the Securities Act)) affecting any such Founder Shares or Private Placement Shares, other than pursuant to (A) this Sponsor Support Agreement, (B) the certificate of incorporation of Acquiror, (C) the Merger Agreement, (D) that certain Registration and Shareholder Rights Agreement, dated as of March 8, 2021, by and among Acquiror and certain security holders, (E) the Sponsor Agreement or (F) any applicable securities laws; and (x) the Founder Shares and Private Placement Shares identified on Schedule A are the only Founder Shares or Private Placement Shares owned of record or Beneficially Owned by the Sponsor and the Insiders as of the date hereof, and none of such Founder Shares or Private Placement Shares is subject to any proxy, voting trust or other agreement or arrangement with respect to the voting of such Founder Shares or Private Placement Shares, except as provided in this Sponsor Support Agreement. |
16) | If, and as often as, there are any changes in Acquiror, the Founder Shares or the Private Placement Shares by way of share split, share dividend, combination or reclassification, or through merger, consolidation, reorganization, recapitalization or business combination, or by any other means, equitable adjustment shall be made to the provisions of this Sponsor Support Agreement as may be required so that the rights, privileges, duties and obligations hereunder shall continue with respect to Acquiror, Acquiror’s successor or the surviving entity of such transaction, the Founder Shares and Private Placement Shares, each as so changed; provided , however , that no such adjustment shall be made in connection with the Domestication. |
17) | Each of the parties hereto agrees to execute and deliver hereafter any further document, agreement or instrument of assignment, transfer or conveyance as may be necessary or desirable to effectuate the purposes hereof and as may be reasonably requested in writing by another party hereto. |
Sincerely, | ||
SVF SPONSOR III (DE) LLC | ||
By: | /s/ Kokoro Motegi | |
Name: Kokoro Motegi | ||
Title: Manager | ||
/s/ Ioannis Pipilis | ||
Ioannis Pipilis | ||
/s/ Navneet Govil | ||
Navneet Govil | ||
/s/ Michael Carpenter | ||
Michael Carpenter | ||
/s/ Michael Tobin | ||
Michael Tobin | ||
/s/ Cristiana Falcone | ||
Cristiana Falcone |
Acknowledged and Agreed: | ||
WAREHOUSE TECHNOLOGIES LLC |
By: | /s/ Richard B. Cohen | |
Name: Richard B. Cohen | ||
Title: President |
1. | Definitions . For purposes of this Letter Agreement: |
a. | “ Acquiror Board ” means the Board of Directors of Acquiror. |
b. | “ Acquiror Sale ” means the occurrence of any of the following events (which, for the avoidance of doubt, shall not include the Transactions): (i) any “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act, but excluding any (A) employee benefit plan of such person or member of such group and their respective subsidiaries, and any Person acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan or (B) “person” or “group” who, on the Closing Date, is the beneficial owner of securities of Acquiror representing more than 50% of the combined voting power of Acquiror’s then outstanding voting securities, or their Permitted Transferees), becomes the beneficial owner, directly or indirectly, of shares of common stock, preferred stock and/or any other class or classes of capital stock of Acquiror (if any) representing in the aggregate more than 50% of the voting power of all of the outstanding shares of capital stock of Acquiror entitled to vote; (ii) the stockholders of Acquiror approve a plan of complete liquidation or dissolution of Acquiror or there is consummated a transaction or series of related transactions for the sale, lease, exchange or other disposition, directly or indirectly, by Acquiror of all or substantially all of Acquiror’s assets; or (iii) there is consummated a merger, consolidation of Acquiror or similar transaction with any other Person, and immediately after the consummation of such merger, consolidation or similar transaction, the voting securities of Acquiror immediately prior to such merger, consolidation or similar transaction do not continue to represent, or are not converted into, more than 50% |
of the combined voting power of the then outstanding voting securities of the Person resulting from such merger, consolidation or similar transaction or, if the surviving company is a Subsidiary, the ultimate parent thereof; provided , however , that an “Acquiror Sale” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of related transactions immediately following which the beneficial owners of the common stock, preferred stock and/or any other class or classes of capital stock of Acquiror immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in and voting control over, and own substantially all of the shares of, an entity which owns all or substantially all of the assets of Acquiror immediately following such transaction or series of transactions. |
c. | “ Founder Shares ” has the meaning set forth in the Insider Letter. Lock-up Period |
d. | “ Insider Letter ” means that certain letter agreement, dated as of March 8, 2021, by and among Acquiror, Sponsor and the Insiders. |
e. | “ Permitted Transfer ” means the transfers contemplated by paragraph 5(d) of the Insider Letter. |
f. | “ Permitted Transferees ” means the Persons to whom any Permitted Transfers have been made; provided , however , that such Permitted Transferees have entered into a written agreement agreeing to be bound by the transfer restrictions contained herein. |
g. | “ Private Placement Shares ” means the shares of SVF Class A Ordinary Shares that the Sponsor purchased for an aggregate purchase price of $10,400,000, or $10.00 per SVF Class A Ordinary Share, in a private placement that occurred simultaneously with the consummation of Acquiror’s initial public offering and any securities into which such shares are converted. |
h. | “ Sponsor Shares ” means (i) the shares of SVF Class B Ordinary Shares and any securities into which such shares are converted in connection with the Closing and (ii) the Private Placement Shares, but for the avoidance of doubt, does not include any Surviving Pubco Class A Common Stock issued to Sponsor or any of its Affiliates on the Closing Date pursuant to a Subscription Agreement or the Forward Purchase Agreement. |
i. | “ Transfer ” has the meaning set forth in the Insider Letter. |
j. | “ Vesting Period ” means the time period beginning on and including the Closing Date and ending on and including the seven-year anniversary of the Closing Date. |
2. | Post-Closing . Lock-Up |
a. | From and after the Closing, Sponsor and each Insider agrees to comply with the restrictions on transfer set forth in paragraph 5(a) of the Insider Letter, as in effect on the date hereof as if fully set forth herein, except that (i) such provisions shall apply to the Sponsor Shares, in lieu of “Founder Shares,” mutatis mutandis bona fide Permitted Loan ” and, the Sponsor Shares pledged thereunder, the “Permitted Pledged Shares ”) at any time, (ii) the Sponsor, any Insider or any of their Permitted Transferees transferring such Permitted Pledged Shares to satisfy or avoid a bona fide |
b. | If any Sponsor Share subject to paragraph 2 hereto bears a legend (including a notation in Acquiror’s stock ledger or other books and records in the case of uncertificated securities) that they are subject to the restrictions on transfer set forth herein or in the Insider Letter, then, upon the termination of the Founder Shares Lock-up Period or the period described in paragraph 5(c) of the Insider Letter, as applicable, Acquiror shall use commercially reasonable efforts (and Sponsor shall cooperate in good faith) to promptly cause such legend to be removed. |
3. | Vesting and Forfeiture of Sponsor Shares . |
a. | Designation Immediately Vested Sponsor Shares ” and, subject to the last sentence of this paragraph 3.a, the remaining forty percent (40%) are referred to herein as “Vesting Sponsor Shares .” Of the Vesting Sponsor Shares, (i) fifty percent (50%) are referred to herein as “$12.00 Threshold Shares ,” and (ii) the remaining fifty (50%) are referred to herein as “$14.00 Threshold Shares .” |
b. | Immediately Vested Sponsor Shares |
c. | $12.00 Threshold Shares |
d. | $14.00 Threshold Shares |
e. | Acquiror Sale |
i. | to the extent it has not already occurred, a Triggering Event I shall be deemed to occur (and the actions contemplated by paragraph 3.c shall be required to occur) on the day immediately prior to the occurrence of such Acquiror Sale if the value of the per share consideration to be received by the holders of Surviving Pubco Class A Common Stock in such Acquiror Sale (including any extraordinary dividends paid on the Surviving Pubco Class A Common Stock in connection with |
such Acquiror Sale) is greater than or equal to $12.00; provided , that if such Acquiror Sale is an acquisition of Acquiror by merger, business combination or otherwise in which the holders of Surviving Pubco Class A Common Stock receive consideration for their shares and such consideration consists only of cash at a price (including any extraordinary dividends paid on the Surviving Pubco Class A Common Stock in connection with such Acquiror Sale) less than $12.00 per share (a “Non-Qualifying $12.00 Acquiror SaleNon-Qualifying $12.00 Acquiror Sale; and |
ii. | to the extent it has not already occurred, a Triggering Event II shall be deemed to occur (and the actions contemplated by paragraph 3.d shall be required to occur) on the day immediately prior to the occurrence of such Acquiror Sale if the value of the per share consideration to be received by the holders of Surviving Pubco Class A Common Stock in such Acquiror Sale (including any extraordinary dividends paid on the Surviving Pubco Class A Common Stock in connection with such Acquiror Sale) is greater than or equal to $14.00; provided , that if such Acquiror Sale is an acquisition of Acquiror by merger, business combination or otherwise in which the holders of Surviving Pubco Class A Common Stock receive consideration for their shares and such consideration consists only of cash at a price (including any extraordinary dividends paid on the Surviving Pubco Class A Common Stock in connection with such Acquiror Sale) less than $14.00 per share (a “Non-Qualifying $14.00 Change of ControlNon-Qualifying $14.00 Change of Control; |
f. | Equitable Adjustments |
g. | Forfeiture. |
i. | If the Triggering Event I has not occurred or been deemed to have occurred prior to the end of the Vesting Period, the obligations in paragraphs 3.c, 3.d and 3.e shall terminate and no longer apply and all holder(s) of the $12.00 Threshold Shares and $14.00 Threshold Shares shall, on the first (1st) Business Day thereafter, irrevocably forfeit and surrender such shares to Acquiror for no consideration as a contribution to the capital of Acquiror (including for purposes of Section 118 of the Code). |
ii. | If the Triggering Event II has not occurred or been deemed to have occurred prior to the end of the Vesting Period, the obligations in paragraphs 3.d and 3.e.ii shall terminate and no longer apply and all holder(s) of the $14.00 Threshold Shares shall, on the first (1st) Business Day thereafter, irrevocably forfeit and surrender such shares to Acquiror for no consideration as a contribution to the capital of Acquiror (including for purposes of Section 118 of the Code). |
h. | Rights of Holder(s) of Vesting Sponsor Shares |
i. | Restrictions on Transfer; Legends |
4. | Waiver of Anti-Dilution Provision . Sponsor and each Insider hereby (but subject to, conditioned upon and effective as of immediately prior to the Closing) waives (for itself, and for its successors, heirs and assigns), to the fullest extent permitted by law and the Amended and Restated Memorandum and Articles of Association of Acquiror, adopted by special resolutions dated March 8, 2021 (as may be amended from time to time, the “Articles ”), the provisions of Section 14 of the Articles to have the SVF Class B Ordinary Shares convert to Surviving Pubco Class A Ordinary Shares at a ratio of greater than one-for-one one-for-one |
paragraph 4 shall be applicable only in connection with the Transactions and this Letter Agreement (and any shares of Surviving Pubco Class A Ordinary Shares or equity-linked securities issued in connection with the Transactions and this Letter Agreement) and shall be void and of no force and effect if the Merger Agreement shall be terminated for any reason. Each party hereto acknowledges and agrees that all references to the “forfeiture” in this Letter Agreement means the surrender of shares in accordance with the Articles. |
5. | Use of “ SVF ” Name . From and after the Closing, Acquiror shall cease all use of the name “SVF” (the “SVF Name ”), including as part of its corporate name, provided that the foregoing shall not prohibit Acquiror and its Affiliates from using the SVF Name (i) in a neutral, non-trademarked manner to describe the history of Acquiror’s business, (ii) in internal legal and business records, (iii) in ordinary course disclosures, communications and external documents provided to their respective directors, officers, employees, investors, advisors, agents and representatives or (iv) as required by applicable Law. To the extent that Acquiror owns any rights, title or interest in or to the SVF Name, whether by operation of law or otherwise, at Closing, Acquiror hereby irrevocably transfers and assigns any and all such rights to Sponsor. Following the Closing Date, if any further action on the part of Acquiror is necessary to carry out the provisions of this paragraph 5, Acquiror shall use commercially reasonable efforts to take such action upon Sponsor’s reasonable request. |
6. | Termination . This Letter Agreement shall terminate upon the earliest to occur of (a) the later of (i) the earlier of (x) a Triggering Event II and (y) the expiration of the Vesting Period and, in either case, the performance by Acquiror and Sponsor of the last obligation required to be performed by it following a Triggering Event II or the expiration of the Vesting Period, as applicable and (ii) the expiration of the Founder Shares Lock-up Period, (b) the termination of the Merger Agreement in accordance with its terms prior to the Closing, or (c) the time this Letter Agreement is terminated upon the mutual written agreement of the parties hereto; provided , that, if the Closing occurs, paragraph 7 hereto shall survive the termination of this Letter Agreement in accordance with its terms. Upon such termination, this Letter Agreement shall forthwith become void and have no further force or effect, without any liability or other obligation on the part of any party hereto to any Person in respect of the transactions contemplated hereby, and no party shall have any claim against any other party hereto (and no Person shall have any rights against such party), whether under contract, tort or otherwise, with respect to the subject matter hereof; provided , that no such termination shall relieve any party hereto of any liability arising in respect of any willful and material breach of this Letter Agreement occurring prior to such termination. This paragraph 6 shall survive the termination of this Letter Agreement. |
7. | Miscellaneous . |
a. | All notices, requests, instructions, consents, claims, demands, waivers, approvals and other communications to be given or made hereunder by one or more parties to one or more of the other parties shall, unless otherwise specified herein, be in writing and shall be deemed to have been duly given or made on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day (or otherwise on the next succeeding Business Day) if (a) served by personal delivery or by a nationally recognized overnight courier service upon the party or parties for whom it is intended, (b) delivered by registered or certified mail, return receipt requested, or (c) sent by email; provided that the email transmission is promptly confirmed by telephone or otherwise. Such communications shall be sent to the respective parties at the following street addresses or email addresses or at |
such other street address or email address for a Party as shall be specified for such purpose in a notice given in accordance with this paragraph 7: |
Attention: | Corey Dufresne |
Email: | cdufresne@symbotic.com |
Attention: | Robert W. Downes |
Email: | downesr@sullcrom.com |
Attention: | General Counsel |
Email: | legal@softbank.com |
Attention: | Jeffrey D. Marell |
Email: | jmarell@paulweiss.com |
b. | The provisions set forth in Sections 10.3 ( Counterparts Governing Law and Venue; Submission to Jurisdiction; Selection of Forum; Waiver of Trial by Jury (Severability) Interpretation and Construction) mutatis mutandis |
c. | This Letter Agreement and the other agreements referenced herein (including the Insider Letter) constitute the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and supersede all prior understandings, agreements, or |
representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby, including, without limitation, with respect to the Sponsor and each Insider. This Letter Agreement may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument executed by Acquiror and the other parties charged with such change, amendment, modification or waiver. |
d. | No party hereto may, except as set forth herein, assign either this Letter Agreement or any of its rights, interests, or obligations hereunder, other than in conjunction with Permitted Transfers, without the prior written consent of the other parties. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee. This Letter Agreement shall be binding on the Sponsor, each Insider, Acquiror and the Company and their respective successors, heirs, personal representatives and assigns and Permitted Transferees. |
e. | Each of the parties hereto agrees to execute and deliver hereafter any further document, agreement or instrument of assignment, transfer or conveyance as may be necessary or desirable to effectuate the purposes hereof and as may be reasonably requested in writing by another party hereto. |
Very truly yours, | ||
SVF SPONSOR III (DE) LLC | ||
By: | /s/ Kokoro Motegi | |
Name: Kokoro Motegi | ||
Title: Manager |
/s/ Ioannis Pipilis |
Ioannis Pipilis |
/s/ Navneet Govil |
Navneet Govil |
/s/ Michael Carpenter |
Michael Carpenter |
/s/ Michael Tobin |
Michael Tobin |
/s/ Cristiana Falcone |
Cristiana Falcone |
Acknowledged and Agreed: | ||
SVF INVESTMENT CORP. 3 | ||
By: | /s/ Ioannis Pipilis | |
Name: Ioannis Pipilis | ||
Title: Chairman and Chief Executive Officer | ||
Acknowledged and Agreed: | ||
WAREHOUSE TECHNOLOGIES LLC | ||
By: | /s/ Richard B. Cohen | |
Name: Richard B. Cohen | ||
Title: President |
SVF INVESTMENT CORP. 3 | ||||
By: | /s/ Ioannis Pipilis | |||
Name: | Ioannis Pipilis | |||
Title: | Chairman and Chief Executive Officer | |||
WAREHOUSE TECHNOLOGIES LLC | ||||
By: | /s/ Richard B. Cohen | |||
Name: | Richard B. Cohen | |||
Title: | President | |||
SYMBOTIC HOLDINGS LLC | ||||
By: | /s/ Richard B. Cohen | |||
Name: | Richard B. Cohen | |||
Title: | President |
SELLERS : | ||
RJJRP HOLDINGS, INC. | ||
By: | /s/ Richard B. Cohen | |
Name: Richard B. Cohen | ||
Title: President and Chief Executive Officer |
THE RBC 2021 4 YEAR GRAT (U/A MARCH 31, 2021) | ||
By: | /s/ Richard B. Cohen | |
Name: Richard B. Cohen | ||
Title: As Trustee (and not individually) |
THE RBC MILLENNIUM TRUST (U/A JUNE 19, 2000) | ||
By: | /s/ Janet L. Cohen | |
Name: Janet L. Cohen | ||
Title: As Trustee (and not individually) | ||
By: |
/s/ David A. Ladensohn | |
Name: David A. Ladensohn | ||
Title: As Trustee (and not individually) |
Page |
||||||
ARTICLE I |
||||||
DEFINITIONS |
||||||
Section 1.01. |
Definitions | K-4 |
||||
ARTICLE II |
||||||
DETERMINATION OF REALIZED TAX BENEFIT |
||||||
Section 2.01. |
Tax Assets Schedule | K-9 |
||||
Section 2.02. |
Tax Benefit Schedule | K-10 |
||||
Section 2.03. |
Procedures, Amendments | K-10 |
||||
Section 2.04. |
Closing Date Basis Schedule | K-11 |
||||
ARTICLE III |
||||||
TAX BENEFIT PAYMENTS |
||||||
Section 3.01. |
Payments | K-11 |
||||
Section 3.02. |
No Duplicative Payments | K-12 |
||||
Section 3.03. |
Pro Rata Payments | K-12 |
||||
Section 3.04. |
Maximum Selling Price | K-12 |
||||
Section 3.05. |
Excess Payments | K-13 |
||||
ARTICLE IV |
||||||
TERMINATION |
||||||
Section 4.01. |
Early Termination and Breach of Agreement | K-13 |
||||
Section 4.02. |
Early Termination Notice | K-14 |
||||
Section 4.03. |
Payment upon Early Termination | K-14 |
||||
ARTICLE V |
||||||
SUBORDINATION AND LATE PAYMENTS |
||||||
Section 5.01. |
Subordination | K-15 |
||||
Section 5.02. |
Late Payments by PubCo | K-15 |
||||
ARTICLE VI |
||||||
NO DISPUTES; CONSISTENCY; COOPERATION |
||||||
Section 6.01. |
Participation in PubCo’s and OpCo’s Tax Matters | K-15 |
||||
Section 6.02. |
Consistency | K-15 |
||||
Section 6.03. |
Cooperation | K-15 |
||||
ARTICLE VII |
||||||
MISCELLANEOUS |
||||||
Section 7.01. | Notices | K-16 |
||||
Section 7.02. | Entire Agreement; No Third Party Beneficiaries | K-17 |
||||
Section 7.03. | Successors; Assignment; Amendments | K-17 |
||||
Section 7.04. |
Counterparts | K-18 |
||||
Section 7.05. |
Reconciliation | K-18 |
||||
Section 7.06. |
Governing Law and Venue; Submission to Jurisdiction; Selection of Forum; Waiver of Trial by Jury | K-19 |
||||
Section 7.07. |
Withholding | K-19 |
||||
Section 7.08. |
Admission of PubCo into a Consolidated Group; Transfers of Corporate Assets | K-20 |
||||
Section 7.09. |
Confidentiality | K-20 |
||||
Section 7.10. |
Change in Law | K-20 |
||||
Section 7.11. |
Independent Nature of Rights and Obligations | K-21 |
||||
Section 7.12. |
Representative | K-21 |
||||
Section 7.13. |
Non-Recourse |
K-21 |
||||
Section 7.14. |
Severability | K-22 |
||||
Section 7.15. |
Interpretation and Construction | K-22 |
(i) | in each Taxable Year ending on or after such Early Termination Date, PubCo will have taxable income sufficient to fully utilize (x) the deductions arising from the Tax Assets (including, for the avoidance of doubt, Tax Assets that would result from future Tax Benefit Payments that would be paid in accordance with the Valuation Assumptions) during such Taxable Year or in the earliest future Taxable Year in which such deductions or other attributes would become available and (y) any loss or credit carryovers or carrybacks generated by deductions arising from Tax Assets that are available as of the date of such Early Termination Date that have not been previously utilized in determining a Tax Benefit Payment as of the date of such Early Termination Date; |
(ii) | the U.S. federal income Tax rates and the state and local Tax rates that will be in effect for each such Taxable Year will be those specified for each such Taxable Year by the Code and other law as in effect on the Early Termination Date (and the Assumed State and Local Tax Rate will be calculated based on such rates and the apportionment factor applicable in such Taxable Year), except to the extent any change to such Tax rates for such Taxable Year have already been enacted into law (in which case such rates as enacted shall apply for purposes of this clause (ii)); |
(iii) | any loss or credit carryovers or carryback generated by the Tax Assets and available as of the date of the Early Termination Schedule will be utilized by PubCo on a pro rata basis from the date of the Early Termination Schedule through the earlier of (x) the scheduled expiration date of such loss carryovers or carrybacks and (y) the tenth anniversary of the Early Termination Date; |
(iv) | any non-amortizable, non-depreciable assets are deemed to be disposed of on the fifteenth anniversary of the Early Termination Date; provided that in the event of a Change of Control, such non-amortizable, non-depreciable assets shall be deemed disposed of at the time of sale (if applicable) of the relevant asset (if earlier than such fifteenth anniversary); |
(v) | if, on the Early Termination Date, there are Units that have not been Exchanged, then each such Unit shall be deemed Exchanged for the Market Value and the amount of cash that would be transferred if the Exchange occurred on the Early Termination Date; and |
(vi) | any payment obligation pursuant to this Agreement will be satisfied on the date that any Tax Return to which such payment obligation relates is required to be filed, excluding any extensions. |
Symbotic Inc. | ||
200 Research Drive | ||
Wilmington, MA 01887 | ||
Attention: | Corey Dufresne | |
Email: | cdufresne@symbotic.com |
Sullivan & Cromwell LLP | ||
125 Broad Street | ||
New York, NY 10004 | ||
1870 Embarcadero Road | ||
Palo Alto, California 94303 | ||
Attention: |
Robert W. Downes George Sampas Matthew B. Goodman | |
Email: |
downesr@sullcrom.com sampasg@sullcrom.com goodmanm@sullcrom.com |
Sullivan & Cromwell LLP | ||
125 Broad Street | ||
New York, NY 10004 | ||
1870 Embarcadero Road | ||
Palo Alto, California 94303 | ||
Attention: | Robert W. Downes George Sampas Matthew B. Goodman | |
Email: | downesr@sullcrom.com sampasg@sullcrom.com goodmanm@sullcrom.com |
Symbotic Inc. | ||
By: | [●] | |
By: | | |
Name: | ||
Title: | ||
Symbotic Holdings LLC | ||
By: | [●] | |
By: | | |
Name: | ||
Title: | ||
TRA PARTIES [●] | ||
By: | [●] | |
By: | | |
Name: | ||
Title: |
COMPANY: |
SVF INVESTMENT CORP. 3 |
By: |
Name: |
Title: |
SPONSOR: |
SVF SPONSOR III (DE) LLC |
By: |
Name: |
Title: |
SPAC INDEPENDENT DIRECTORS: |
|
|
|
SYMBOTIC EQUITYHOLDERS [ ] |
By: |
Name: |
Title: |
[ ] |
By: |
Name: |
Title: |
[ ] |
By: |
Name: |
Title: |
ISSUER: | ||
SVF INVESTMENT CORP. 3 | ||
By: | ||
Name: | ||
Title: |
Accepted and agreed this 12th day of December, 2021. SUBSCRIBER: |
||||||
Signature of Subscriber: | Signature of Joint Subscriber, if applicable: | |||||
By: | |
By: | | |||
Name: | |
Name: | | |||
Title: | |
Title: | | |||
Date: December 12, 2021 |
Name of Subscriber: | Name of Joint Subscriber, if applicable: | |||||
|
| |||||
(Please print. Please indicate name and capacity of person signing above) | (Please Print. Please indicate name and capacity of person signing above) | |||||
|
| |||||
Name in which securities are to be registered (if different from the name of Subscriber listed directly above): |
||||||
Email Address: | |
|||||
If there are joint investors, please check one: | ||||||
☐ Joint Tenants with Rights of Survivorship |
||||||
☐ Tenants-in-Common |
||||||
☐ Community Property |
||||||
Subscriber’s EIN: | |
Joint Subscriber’s EIN: | | |||
Business Address-Street: | Mailing Address-Street (if different): | |||||
|
| |||||
|
|
City, State, Zip: | |
City, State, Zip: | | |||||
Attn: | |
Attn: | ||||||
Telephone No.: | |
Telephone No.: | | |||||
Facsimile No.: | |
Facsimile No.: | |
Aggregate Number of Shares subscribed for: |
|
Aggregate Purchase Price: $ |
Page |
||||||
Article I. DEFINITIONS; INTERPRETATION | N-1 | |||||
Section 1.01 | Definitions |
N-1 | ||||
Section 1.02 | Interpretation |
N-10 | ||||
Article II. ORGANIZATIONAL MATTERS | N-11 | |||||
Section 2.01 | Formation of Company |
N-11 | ||||
Section 2.02 | Second Amended and Restated Limited Liability Company Agreement |
N-11 | ||||
Section 2.03 | Name |
N-11 | ||||
Section 2.04 | Purpose; Powers |
N-12 | ||||
Section 2.05 | Principal Office; Registered Office |
N-12 | ||||
Section 2.06 | Term |
N-12 | ||||
Section 2.07 | Tax Treatment |
N-12 | ||||
Article III. MEMBERS; UNITS; CAPITALIZATION | N-12 | |||||
Section 3.01 | Members |
N-12 | ||||
Section 3.02 | Units |
N-13 | ||||
Section 3.03 | Authorization and Issuance of Additional Units |
N-13 | ||||
Section 3.04 | Repurchase or Redemption of Shares of Class A Common Stock |
N-14 | ||||
Section 3.05 | Certificates Representing Units; Lost, Stolen or Destroyed Certificates; Registration and Transfer of Units |
N-14 | ||||
Section 3.06 | Negative Capital Accounts |
N-15 | ||||
Section 3.07 | No Withdrawal |
N-15 | ||||
Section 3.08 | Loans From Members |
N-15 | ||||
Section 3.09 | Equity Plans |
N-15 | ||||
Section 3.10 | Dividend Reinvestment Plan, Employee Stock Purchase Plan, Stock Incentive Plan or Other Plan |
N-17 | ||||
Article IV. DISTRIBUTIONS | N-17 | |||||
Section 4.01 | Distributions |
N-17 | ||||
Article V. CAPITAL ACCOUNTS; ALLOCATIONS; TAX MATTERS | N-19 | |||||
Section 5.01 | Capital Accounts |
N-19 | ||||
Section 5.02 | Allocations |
N-19 | ||||
Section 5.03 | Regulatory Allocations |
N-20 | ||||
Section 5.04 | Tax Allocations |
N-21 | ||||
Section 5.05 | Indemnification and Reimbursement for Payments on Behalf of a Member |
N-22 | ||||
Section 5.06 | PTET |
N-23 | ||||
Article VI. MANAGEMENT | N-23 | |||||
Section 6.01 | Authority of Manager; Officer Delegation |
N-23 | ||||
Section 6.02 | Actions of the Manager |
N-23 | ||||
Section 6.03 | Resignation; No Removal |
N-24 | ||||
Section 6.04 | Vacancies |
N-24 | ||||
Section 6.05 | Transactions Between the Company and the Manager |
N-24 | ||||
Section 6.06 | Reimbursement for Expenses |
N-24 | ||||
Section 6.07 | Limitation of Liability of Manager |
N-25 | ||||
Section 6.08 | Investment Company Act |
N-25 | ||||
Article VII. RIGHTS AND OBLIGATIONS OF MEMBERS AND MANAGER | N-25 | |||||
Section 7.01 | Limitation of Liability and Duties of Members |
N-25 | ||||
Section 7.02 | Lack of Authority |
N-26 |
Section 7.03 | No Right of Partition |
N-26 | ||||
Section 7.04 | Indemnification |
N-26 | ||||
Section 7.05 | Inspection Rights |
N-27 | ||||
Article VIII. BOOKS, RECORDS, ACCOUNTING AND REPORTS, AFFIRMATIVE COVENANTS |
N-28 | |||||
Section 8.01 | Records and Accounting |
N-28 | ||||
Section 8.02 | Fiscal Year |
N-28 | ||||
Article IX. TAX MATTERS | N-28 | |||||
Section 9.01 | Preparation of Tax Returns |
N-28 | ||||
Section 9.02 | Tax Elections |
N-28 | ||||
Section 9.03 | Tax Controversies |
N-28 | ||||
Article X. RESTRICTIONS ON TRANSFER OF UNITS; CERTAIN TRANSACTIONS | N-29 | |||||
Section 10.01 | Transfers by Members |
N-29 | ||||
Section 10.02 | Permitted Transfers |
N-29 | ||||
Section 10.03 | Restricted Units Legend |
N-30 | ||||
Section 10.04 | Transfer |
N-30 | ||||
Section 10.05 | Assignee’s Rights |
N-30 | ||||
Section 10.06 | Assignor’s Rights and Obligations |
N-31 | ||||
Section 10.07 | Overriding Provisions |
N-31 | ||||
Section 10.08 | Spousal Consent |
N-32 | ||||
Section 10.09 | Certain Transactions with Respect to Pubco |
N-32 | ||||
Article XI. REDEMPTION AND DIRECT EXCHANGE RIGHTS | N-33 | |||||
Section 11.01 | Redemption Right of a Member |
N-33 | ||||
Section 11.02 | Election and Contribution of Pubco |
N-36 | ||||
Section 11.03 | Direct Exchange Right of Pubco |
N-36 | ||||
Section 11.04 | Reservation of Shares of Class A Common Stock; Listing; Pubco Certificate |
N-37 | ||||
Section 11.05 | Effect of Exercise of Redemption or Direct Exchange |
N-38 | ||||
Section 11.06 | Tax Treatment |
N-38 | ||||
Article XII. ADMISSION OF MEMBERS | N-39 | |||||
Section 12.01 | Substituted Members |
N-39 | ||||
Section 12.02 | Additional Members |
N-39 | ||||
Article XIII. WITHDRAWAL AND RESIGNATION; TERMINATION OF RIGHTS | N-39 | |||||
Section 13.01 | Withdrawal and Resignation of Members |
N-39 | ||||
Article XIV. DISSOLUTION AND LIQUIDATION; Distributions | N-39 | |||||
Section 14.01 | Dissolution |
N-39 | ||||
Section 14.02 | Winding up |
N-40 | ||||
Section 14.03 | Deferment; Distribution in Kind |
N-40 | ||||
Section 14.04 | Cancellation of Certificate |
N-41 | ||||
Section 14.05 | Reasonable Time for Winding Up |
N-41 | ||||
Section 14.06 | Return of Capital |
N-41 | ||||
Article XV. GENERAL PROVISIONS | N-41 | |||||
Section 15.01 | Power of Attorney |
N-41 | ||||
Section 15.02 | Confidentiality |
N-42 | ||||
Section 15.03 | Amendments |
N-42 |
Section 15.04 | Title to Company Assets |
N-43 | ||||
Section 15.05 | Notices |
N-43 | ||||
Section 15.06 | Binding Effect; Intended Beneficiaries |
N-44 | ||||
Section 15.07 | Creditors |
N-44 | ||||
Section 15.08 | Waiver |
N-44 | ||||
Section 15.09 | Counterparts |
N-44 | ||||
Section 15.10 | Governing Law and Venue; Submission to Jurisdiction; Selection of Forum; Waiver of Trial by Jury |
N-44 | ||||
Section 15.11 | Severability |
N-45 | ||||
Section 15.12 | Further Action |
N-45 | ||||
Section 15.13 | Right of Offset |
N-45 | ||||
Section 15.14 | Entire Agreement |
N-45 | ||||
Section 15.15 | Remedies |
N-46 |
Schedule 1 |
– |
Schedule of Members | ||
Exhibits |
||||
Exhibit A |
– |
Form of Joinder Agreement | ||
Exhibit B |
– |
List of Initial Officers | ||
Exhibit C-1 |
– |
Form of Agreement and Consent of Spouse | ||
Exhibit C-2 |
– |
Form of Spouse’s Confirmation of Separate Property |
1 |
To be included if there are RSUs that survive the business combination. |
SYMBOTIC HOLDINGS LLC | ||
By: | ||
Name: |
||
Title: |
Member |
Common Units |
Initial Capital Account |
Contact Information for Notice |
|||||||||
1. |
— | — | — | |||||||||
2. |
— | — | — | |||||||||
3. |
— | — | — | |||||||||
4. |
— | — | — | |||||||||
5. |
— | — | — | |||||||||
6. |
— | — | — | |||||||||
7. |
— | — | — | |||||||||
8. |
— | — | — | |||||||||
9. |
— | — | — | |||||||||
10. |
— | — | — | |||||||||
11. |
— | — | — | |||||||||
12. |
— | — | — | |||||||||
Total |
— | — | — |
* | This Schedule of Members shall be updated from time to time to reflect any adjustment with respect to any subdivision (by Unit split or otherwise) or any combination (by reverse Unit split or otherwise) of any outstanding Common Units, or to reflect any additional issuances of Common Units pursuant to this Agreement. |
1. | Joinder to the LLC Agreement . Upon the due execution and delivery of this Joinder by the undersigned, the undersigned hereby is admitted as and hereafter will be a Member under the LLC Agreement and a party thereto, with all the rights, privileges and responsibilities of a Member thereunder. The undersigned hereby agrees that it shall comply with and be fully bound by the terms of the LLC Agreement as if it had been a signatory thereto as of the date thereof. |
2. | Incorporation by Reference . All terms and conditions of the LLC Agreement are hereby incorporated by reference into this Joinder as if set forth herein in full. |
3. | Address . All notices under the LLC Agreement to the undersigned shall be directed to: |
[NAME OF NEW MEMBER] | ||
By: | ||
Name: |
||
Title: |
By: SYMBOTIC INC., its Managing Member | ||
By: | ||
Name: |
||
Title: |
• | Richard B. Cohen, Chief Executive Officer and President |
• | Thomas Ernst, Chief Financial Officer and Treasurer |
• | Corey Dufresne, General Counsel and Secretary |
• | William Boyd, Chief Strategy Officer and Assistant Treasurer |
• | Jacob Gearwar, Vice President, Finance and Assistant Treasurer |
• | Kevin Heimlich, Controller |
[NAME OF SPOUSE] | ||
By: | ||
Name: |
[NAME OF SPOUSE] | ||
By: | ||
Name: |
1. |
Sale and Purchase |
2. |
Representations and Warranties of the Purchaser |
3. |
Represe tations and Warranties of the Company |
(i). | 200,000,000 Class A Shares, none of which are issued and outstanding; |
(ii). | 20,000,000 Class B ordinary shares of the Company, par value $0.0001 per share (“ Class B Shares |
(iii). | 1,000,000 preference shares, none of which are issued and outstanding. |
4. |
Additional Agreements, Acknowledgements and Waivers of the Purchaser |
5. |
Additional Agreements of the Company |
6. |
Transfer. Transferee |
7. |
Lock-up |
8. |
Forward Closing Conditions |
(b) | The obligation of the Company to sell the Forward Purchase Shares at a Forward Closing under this Agreement shall be subject to the fulfillment, at or prior to such Forward Closing of each of |
the following conditions, any of which, to the extent permitted by applicable laws, may be waived by the Company: |
(i). | With respect to a Forward Closing for a Committed Purchase of Forward Purchase Shares occurring on the date of the Business Combination Closing, the Business Combination shall be consummated concurrently with the purchase of the Forward Purchase Shares; |
(ii). | With respect to a Forward Closing for an Additional Purchase of Forward Purchase Shares, the Purchaser shall not have delivered to the Company a revocation of the Additional Purchase Election Notice, as applicable, with respect to such Additional Purchase; |
(iii). | The representations and warranties of the Purchaser set forth in Section 2 of this Agreement shall have been true and correct as of the date hereof and shall be true and correct as of such Forward Closing, as applicable, with the same effect as though such representations and warranties had been made on and as of such date (other than any such representation or warranty that is made by its terms as of a specified date, which shall be true and correct as of such specified date), except where the failure to be so true and correct would not have a material adverse effect on the Purchaser or its ability to consummate the transactions contemplated by this Agreement; |
(iv). | The Purchaser shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Purchaser at or prior to such Forward Closing; and |
(v). | No order, writ, judgment, injunction, decree, determination, or award shall have been entered or threatened by or with any governmental, regulatory, or administrative authority or any court, tribunal, or judicial, or arbitral body, and no other legal restraint or prohibition shall be in effect or threatened, preventing the purchase by the Purchaser of the Forward Purchase Shares. |
9. |
Termination |
(a) | by mutual written consent of the Company and the Purchaser; or |
(b) | automatically, |
(i). | if the IPO is not consummated on or prior to twelve months from the date of this Agreement; or |
(ii). | if the Business Combination is not consummated within 24 months from the IPO Closing, or such later date as may be approved by the Company’s shareholders in accordance with the Articles. |
10. |
General Provisions |
PURCHASER |
||||
SVF II SPAC Investment 3 (DE) LLC | Address for Notices: | |||
1 Circle Star Way, San Carlos, CA 94070, USA | ||||
By: | /s/ Ian McLean | |||
Name: | Ian McLean | Attention: Legal team | ||
Title: | Manager | Email: legal@softbank.com |
COMPANY | ||
SVF INVESTMENT CORP. 3 | ||
By: | /s/ Ioannis Pipilis | |
Name: | Ioannis Pipilis | |
Title: | Chairman and Chief Executive Officer |
Purchaser | ||||||
Number of |
Revised | |||||
Forward |
Forward | |||||
Purchase |
Purchase | |||||
Date of |
Shares |
Share | ||||
Transfer |
Transferee |
Transferred |
Amount |
SVF INVESTMENT CORP. 3 | ||
By: |
|
By: | | |
Name: | ||
Title: |
Exhibit |
Description | |
10.9* | Indemnity Agreement, dated March 8, 2021, between the Registrant and Michael Carpenter (incorporated by reference to Exhibit 10.9 to the Registrant’s Current Report on Form 8-K filed with the SEC on March 12, 2021). | |
10.10* | Indemnity Agreement, dated March 8, 2021, between the Registrant and Michael Tobin (incorporated by reference to Exhibit 10.10 to the Registrant’s Current Report on Form 8-K filed with the SEC on March 12, 2021). | |
10.11* | Securities Subscription Agreement, dated December 14, 2020, between the Registrant and the Sponsor (incorporated by reference to Exhibit 10.6 to the Registrant’s registration statement on Form S-1 filed with the SEC on February 5, 2021). | |
10.12* | Promissory Note, dated December 14, 2020, between the Registrant and the Sponsor (incorporated by reference to Exhibit 10.5 to the Registrant’s registration statement on Form S 1 filed with the SEC on February 5, 2021). | |
10.13* | Form of Tax Receivable Agreement, by and among the Registrant, Symbotic Holdings and certain equityholders of Symbotic Holdings (included as to this proxy statement/prospectus). | |
10.14* | Form of Amended and Restated Registration Rights Agreement, by and among the Registrant, certain equityholders of the Registrant named therein and certain unitholders of Warehouse named therein (included as to this proxy statement/prospectus). | |
10.15* | Form of Subscription Agreement (included as Annex M to this proxy statement/prospectus). | |
10.16†* | Equityholders Support Agreement (included as to this proxy statement/prospectus). | |
10.17†* | Sponsor Letter Agreement, dated as of December 12, 2021, by and among the Registrant, its officers and directors, Warehouse and the Sponsor (included as Annex I to this proxy statement/prospectus). | |
10.18†* | Sponsor Support Agreement, dated as of December 12, 2021, by and among the Registrant, its officers and directors, Warehouse and the Sponsor (included as Annex H to this proxy statement/prospectus). | |
10.19†* | Unit Purchase Agreement, dated as of December 12, 2021, by and among the Registrant, Warehouse, Symbotic Holdings, and the sellers named therein (included as Annex J to this proxy statement/prospectus). | |
10.20* | Loan Agreement, dated as of August 10, 2021, between the Registrant and the Sponsor (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on August 10, 2021). | |
10.21* | Amendment Letter, dated as of November 9, 2021, between the Registrant and the Sponsor (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on November 9, 2021). | |
10.22* | Indemnity Agreement, dated as of August 10, 2021, between the Registrant and the Sponsor (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on January 26, 2022). | |
10.23* | Form of New Symbotic Holdings LLC Agreement (included as Annex N to this proxy statement/prospectus). | |
10.24* | Form of Symbotic Inc. 2022 Omnibus Incentive Compensation Plan (included as Annex D to this proxy statement/prospectus). | |
10.25* | Form of Symbotic Inc. 2022 Employee Stock Purchase Plan (included as to this proxy statement/prospectus). |
† | Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request. |
* | Previously filed. |
** | To be filed by amendment. |
A. | To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
(i) | To include any prospectus required by section 10(a)(3) of the Securities Act; |
(ii) | To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the |
aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement. |
(iii) | To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; |
B. | That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
C. | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
D. | That, for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. |
E. | That, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: |
(i) | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
(ii) | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
(iii) | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and |
(iv) | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
F. | That prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form. |
G. | That every prospectus (i) that is filed pursuant to paragraph (F) immediately preceding, or (ii) that purports to meet the requirements of section 10(a)(3) of the Securities Act and is used in connection with an offering |
of securities subject to Rule 415, will be filed as a part of an amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
H. | Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. |
I. | To supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective. |
J. | To respond to requests for information that is incorporated by reference into the prospectus pursuant to Items 4, 10(b), 11, or 13 of this Form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request. |
SVF Investment Corp. 3 | ||
By: | /s/ Ioannis Pipilis | |
Name: Ioannis Pipilis | ||
Title: Chairman and Chief Executive Officer |
Signature |
Title |
Date | ||
/s/ Ioannis Pipilis Ioannis Pipilis |
Chairman and Chief Executive Officer | March 23, 2022 | ||
/s/ Navneet Govil Navneet Govil |
Director and Chief Financial Officer | March 23, 2022 | ||
* Michael Carpenter |
Director | March 23, 2022 | ||
* Michael Tobin |
Director | March 23, 2022 | ||
* Cristiana Falcone |
Director | March 23, 2022 |
*By: | /s/ Ioannis Pipilis | |
Name: Ioannis Pipilis | ||
Title: Attorney-in-Fact |
Exhibit 3.4
CERTIFICATE OF CORPORATE DOMESTICATION OF
SVF Investment Corp. 3
(Pursuant to Section 388
of the General Corporation Law of the State of Delaware)
SVF Investment Corp. 3, presently incorporated as a Cayman Islands exempted company with limited liability (the Corporation), DOES HEREBY CERTIFY:
1. The Corporation was first formed, incorporated, created or otherwise came into being on January 26, 2021, under the laws of the Cayman Islands.
2. The name of the Corporation immediately prior to the filing of this Certificate of Corporate Domestication was SVF Investment Corp. 3.
3. The name of the Corporation as set forth in the Certificate of Incorporation being filed with the Secretary of State of the State of Delaware in accordance with Section 388(b) of the General Corporation Law of the State of Delaware is Symbotic Inc.
4. The jurisdiction that constituted the seat, siege social, or principal place of business or central administration of the Corporation immediately prior to the filing of this Certificate of Corporate Domestication was the Cayman Islands.
5. The domestication has been approved in the manner provided for by the Amended and Restated Memorandum and Articles of Association, said Amended and Restated Memorandum and Articles of Association being the document, instrument, agreement or other writing, as the case may be, governing the internal affairs of the Corporation and the conduct of its business or by applicable law of the Cayman Islands, as appropriate.
[Signature Page Follows]
IN WITNESS WHEREOF, SVF Investment Corp. 3 has caused this Certificate to be executed by the undersigned authorized officer as of this [] day of [], 2022.
SVF INVESTMENT CORP. 3 | ||||
By: |
| |||
Name: | Ioannis Pipilis | |||
Title: | Chairman and Chief Executive Officer |
[Signature Page to Certificate of Corporate Domestication of SVF Investment Corp. 3]
Exhibit 5.1
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, New York 10019-6064
(212) 373-3000
(212) 757-3990
March 23, 2022
SVF Investment Corp. 3
1 Circle Star Way
San Carlos, CA 94070
Re: SVF Investment Corp. 3 Registration Statement on Form S-4
Ladies and Gentlemen:
We have acted as special counsel to SVF Investment Corp. 3, a Cayman Islands company (the Company), in connection with the Registration Statement on Form S-4, as amended (the Registration Statement), of the Company, filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the Securities Act), and the rules and regulations thereunder (the Rules). You have asked us to furnish our opinion as to the legality of the securities being registered under the Registration Statement. On December 12, 2021, the Company entered into the Agreement and Plan of Merger (the Merger Agreement), by and among the Company, Saturn Acquisition (DE) Corp. (Merger Sub), Warehouse Technologies LLC and Symbotic Holdings LLC, providing for the merger of Merger Sub with and into Symbotic, with Symbotic continuing as the surviving entity.
In connection with and immediately prior to the consummation of the transactions contemplated by the Merger Agreement (collectively, the Business Combination), the Company will change its jurisdiction of incorporation (the Domestication) by effecting a deregistration under the Cayman Islands Companies Law (2021 Revision) and a domestication under Section 388 of the General Corporation Law of the State of Delaware (the DGCL) by filing a certificate of corporate domestication (the Certificate of Domestication) simultaneously with a certificate of incorporation (the Certificate of Incorporation), in each case in respect of the Company with the Secretary of State of the State of Delaware (the DE Secretary of State). The Domestication is expected to be effectuated immediately prior to the consummation of the Business Combination (the Closing) and is subject to the approval of the shareholders of the Company. We herein refer to the Company following effectiveness of the Domestication and simultaneous with the Closing as Symbotic Inc (Symbotic Inc.).
Upon effectiveness of the Business Combination and in accordance with the Merger Agreement, (i) the Companys currently issued and outstanding Class A ordinary shares, par value $0.0001 per share (the Class A ordinary shares), will automatically convert by operation of law, on a one-for-one basis, into shares of Symbotic Inc. Class A Common Stock, par value $0.0001 per share (the Class A Common Stock), and (ii) the Companys issued and outstanding Class B ordinary shares, par value $0.0001 per share (the Class B ordinary shares), will automatically convert by operation of law, on a one-for-one basis, into shares of Symbotic Inc. Class B Common Stock, par value $0.0001 per share (the Class B Common Stock), which shares of Class B Common Stock will then subsequently automatically convert into shares of Class A Common Stock in connection with the completion of the Business Combination. The Business Combination is subject to satisfaction or waiver of a number of conditions, including, among others, approval and adoption of the Merger Agreement by the Companys shareholders as well as completion of the Domestication.
The Registration Statement relates to: (i) 33,040,000 shares of Class A Common Stock (the Class A Domestication Shares) resulting from the automatic conversion of Class A ordinary shares by operation of law, on a one-for-one basis, into 33,040,000 shares of Class A Common Stock upon effectiveness of the Domestication, (ii) 8,000,000 shares of Class A Common Stock (the Class B Domestication Shares, and together with the Class A Domestication Shares, the Domestication Shares) resulting from the automatic conversion of Class B Common Stock by operation of law, on a one-for-one basis, into 8,000,000 shares of Class B Common Stock upon completion of the Business Combination, which shares of Class B Common Stock result from the automatic conversion of the Companys Class B ordinary shares, on a one-for-one basis, into 8,000,000 shares of Class B Common Stock upon effectiveness of the Domestication and (iii) 487,379,565 shares of Class A Common Stock (the Merger Consideration Shares and together with the Domestication Shares, the Shares) issuable as merger consideration pursuant to the Merger Agreement.
In connection with the furnishing of this opinion, we have examined originals, or copies certified or otherwise identified to our satisfaction, of the following documents (collectively, the Documents):
1. | the Registration Statement; |
2. | the Merger Agreement; |
3. | the form of Certificate of Incorporation of Symbotic Inc. to be effective upon the Closing; and |
4. | the form of bylaws of Symbotic Inc. to be effective upon the Closing (the Bylaws). |
In addition, we have examined originals or copies of such corporate records of the Company that we have considered appropriate; resolutions of the board of directors of the Company relating to, among other things, the Registration Statement, the Business Combination and the Domestication, certified by the Company; and such other certificates, agreements and documents that we deemed relevant and necessary as a basis for the opinions expressed below. We have also relied upon the factual matters contained in the representations and warranties of the Company made in the Documents and upon certificates of public officials and the officers of the Company.
We also have examined originals or copies, certified or otherwise identified to our satisfaction, of such records of the Company and such agreements, certificates and receipts of public officials, certificates of officers or other representatives of the Company and others, and such other documents, certificates and records as we have deemed necessary or appropriate as a basis for the opinions set forth below.
In our examination of the documents referred to above, we have assumed, without independent investigation, the genuineness of all signatures, the legal capacity of all individuals who have executed any of the documents reviewed by us, the authenticity of all documents submitted to us as originals, the conformity to the originals of all documents submitted to us as certified, photostatic, reproduced or conformed copies of valid existing agreements or other documents, the authenticity of all the latter documents and that the statements regarding matters of fact in the certificates, records, agreements, instruments and documents that we have examined are accurate and complete. We have further assumed that, before the issuance of the Shares, the conditions to consummating the transactions contemplated by the Merger Agreement, including with respect to the filing procedure for effecting a domestication under Section 388 of the DGCL, will have been satisfied or duly waived.
In addition to the foregoing, for the purpose of rendering our opinions as expressed herein, we have assumed that:
1. | Prior to effecting the Domestication: (i) the Registration Statement, as finally amended, will have become effective under the Securities Act; (ii) the shareholders of the Company will have approved, among other things, the Merger Agreement and the Domestication; and (iii) |
all other necessary action will have been taken under the applicable laws of the Cayman Islands to authorize and permit the Domestication, and any and all consents, approvals and authorizations from applicable Cayman Islands governmental and regulatory authorities required to authorize and permit the Domestication will have been obtained; |
2. | The current draft of the Certificate of Incorporation, in the form thereof submitted for our review, without alteration or amendment (other than identifying the appropriate date), will be duly authorized and executed and thereafter be duly filed with the DE Secretary of State in accordance with Section 103 of the DGCL, that no other certificate or document, other than the Certificate of Domestication as required under Section 388 of the DGCL, has been, or prior to the filing of the Certificate of Incorporation will be, filed by or in respect of the Company with the DE Secretary of State and that the Company will pay all fees and other charges required to be paid in connection with the filing of the Certificate of Incorporation; and |
3. | Each Class A ordinary share and Class B ordinary share outstanding immediately prior to the effectiveness of the Domestication was duly authorized, validly issued, fully paid and non-assessable under the laws of the Cayman Islands and has been entered in the register of members (shareholders). |
Based upon the above, and subject to the stated assumptions, exceptions and qualifications, we are of the opinion that:
1. | Upon the effectiveness of the Domestication, the Domestication Shares will be duly authorized, validly issued, fully paid and non-assessable. |
2. | The Merger Consideration Shares have been duly authorized by all necessary corporate action on the part of Symbotic Inc. and, when issued, delivered and paid for as contemplated in the Registration Statement and in accordance with the terms of the Merger Agreement, will be validly issued, fully paid and non-assessable. |
The opinions expressed above are limited to the laws of the State of New York and the General Corporation Law of the State of Delaware. Our opinion is rendered only with respect to the laws, and the rules, regulations and orders under those laws, that are currently in effect.
We hereby consent to use of this opinion as an exhibit to the Registration Statement and to the use of our name under the heading Legal Matters contained in the prospectus included in the Registration Statement. In giving this consent, we do not thereby admit that we come within the category of persons whose consent is required by the Securities Act or the Rules.
Very truly yours,
/s/ Paul, Weiss, Rifkind, Wharton & Garrison LLP
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
Exhibit 8.1
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, New York 10019-6064
(212) 373-3000
(212) 757-3990
March 23, 2022
SVF Investment Corp. 3
1 Circle Star Way
San Carlos, California 94070
Re: | United States Federal Income Tax Considerations |
Ladies and Gentlemen:
We have acted as United States federal income tax counsel for SVF Investment Corp. 3, a Cayman Islands company (the Company), in connection with the Merger Agreement, dated as of December 12, 2021 (the Merger Agreement), by and among the Company, Saturn Acquisition (DE) Corp., Warehouse Technologies, LLC and Symbotic Holdings, LLC, which, among other things, provides for the Companys domestication from a Cayman Islands exempted company to a Delaware corporation pursuant to Section 388 of the Delaware General Corporation Law, as amended, and Part XII of the Cayman Islands Companies Law (2021 Revision) (the Domestication). This opinion is being delivered in connection with the Registration Statement (File No. 333-262529) of the Company on Form S-4 filed on February 4, 2022 with the Securities and Exchange Commission, as amended and supplemented through the date hereof (the Registration Statement). Capitalized terms not defined herein have the meanings specified in the Merger Agreement unless otherwise indicated.
In connection with this opinion, we have examined and relied on originals or copies, certified or otherwise identified to our satisfaction, of (i) the Merger Agreement, (ii) the Registration Statement, (iii) the representation letter of the Company delivered to us for purposes of this opinion (the Representation Letter), and (iv) such other documents, certificates and records as we have deemed necessary or appropriate as a basis for the opinion set forth herein. We have not, however, undertaken any independent investigation of any factual matter set forth in any of the foregoing.
In rendering our opinion, we have assumed, without any independent investigation or examination thereof, that (i) the Domestication will be consummated in the manner described in the Registration Statement and the Business Combination will be consummated in the manner described in the Registration Statement and the Merger Agreement, each will be effective under applicable law, and none of the terms or conditions contained in either the Registration Statement or the Merger Agreement will be waived or modified, (ii) the facts relating to (A) the Domestication are accurately and completely reflected in the Registration Statement and (B) the Business Combination are accurately and completely reflected in the Registration Statement and the Merger Agreement, (iii) the Merger Agreement, Registration Statement and all documents described therein represent the entire understanding between the parties to the Merger Agreement with respect to the Domestication and related transactions, (iv) any representations made in the Representation Letter are true, complete and correct and will remain true, complete and correct at all times up to and including the effective time of the Domestication, (v) any representations made in the Representation Letter subject to qualification relating to the knowledge, belief, expectation or intent of any party are true, complete and correct and will remain true, complete and correct at all times up to and including the effective time of the Domestication, in each case, without such qualification and (vi) the Company will not take any position on any federal, state, or local income or franchise tax return, or take any other tax reporting position that is inconsistent with this opinion. Our opinion assumes and is expressly conditioned on, among other things, the initial and continuing accuracy of the facts, information, covenants, representations and warranties set forth in the documents referred to above.
For purposes of our opinion, we have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified, conformed, photostatic or electronic copies, and the authenticity of the originals of such latter documents. We have assumed that the Merger Agreement and such other documents, certificates, and records are, and will continue to be, duly authorized, valid, and enforceable.
The opinion set forth below is based on the Internal Revenue Code of 1986, as amended (the Code), administrative rulings, judicial decisions, Treasury regulations and other applicable authorities, all as in effect on the effective date of the Registration Statement. The statutory provisions, regulations, and interpretations upon which our opinion is based are subject to change, and such changes could apply retroactively. Any change in law or the facts regarding the Domestication or any of the transactions related thereto, or any inaccuracy in the facts or assumptions on which we relied, could affect the continuing validity of the opinion set forth below. We assume no responsibility to inform you of any such changes or inaccuracy that may occur or come to our attention. The opinion set forth herein has no binding effect on the United States Internal Revenue Service (IRS) or the courts of the United States. No assurance can be given that, if the matter were contested, a court would agree with the opinion set forth herein.
Based upon the foregoing and subject to the assumptions, exceptions, limitations and qualifications set forth herein and in the Registration Statement under the heading Material U.S. Federal Income Tax Considerations, we are of the opinion that, for United States federal income tax purposes, the Domestication should qualify as a reorganization within the meaning of Section 368(a)(1)(F) of the Code. We express no opinion on any other potential U.S. federal income tax consequences of the Domestication (including tax consequences pursuant to Section 367 of the Code or the passive foreign investment company rules).
Except as set forth above, we express no opinion as to the tax consequences to any party, whether federal, state, local or foreign, of any transactions related to the Domestication or contemplated by the Merger Agreement and this opinion may not be relied upon except with respect to the consequences specifically discussed herein. Furthermore, our opinion is based on current U.S. federal income tax law and administrative practice, and we do not undertake to advise you as to any changes after the date hereof of the Domestication in U.S. federal income tax law that may affect our opinion. In addition, there can be no assurance that changes in the law will not take place which could affect the U.S. federal income tax consequences of the Domestication or that contrary positions may not be taken by the IRS. To the extent any of the representations, warranties, statements and assumptions material to our opinion and upon which we have relied are not accurate and complete in all material respects at all the relevant times, our opinion would be adversely affected and should not be relied upon.
We are furnishing this letter in our capacity as United States federal income tax counsel to the Company. This opinion has been prepared in connection with the filing of the Registration Statement and may not be relied upon for any other purpose without our prior written consent.
We hereby consent to use of this opinion as an exhibit to the Registration Statement and to the use of our name under the caption Material U.S. Federal Income Tax Consequences and Legal Matters contained in the Registration Statement. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations thereunder.
Very truly yours,
/s/ Paul, Weiss, Rifkind, Wharton & Garrison LLP
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
Exhibit 10.26
SYMBOTIC LLC
WAREHOUSE TECHNOLOGIES, LLC
2012 VALUE APPRECIATION PLAN
Section 1. Purpose and Effective Date
The purpose of this 2012 Value Appreciation Plan is to promote the best interests of Warehouse Technologies, LLC, its wholly-owned subsidiary, Symbotic LLC, and their members by providing an incentive for management, directors, consultants and key employees of the Company and its Affiliates to increase the value of the Company through the grant of value appreciation award units, and by enabling the Company and its Affiliates to attract and retain the services of such individuals upon whose judgment, interest, skills, and special effort the successful conduct of their operations is largely dependent. The Plan is effective December 18, 2012.
Section 2. Definitions
(a) Affiliate means each entity that is required to be included in the Companys controlled group of corporations within the meaning of Code Section 414(b), or that is under common control with the Company within the meaning of Code Section 414(c); provided that for purposes of determining when a Participant has incurred a Separation from Service, the phrase at least 50 percent shall be used in place of the phrase at least 80 percent in each place that phrase appears in the regulations issued thereunder. For all purposes of this Plan, Affiliate shall include, without limitation, Symbotic unless and until Symbotic ceases to be included in the Companys controlled group or under common control with the Company as described above.
(b) Award means a grant of VAP Units.
(c) Award Agreement means a written agreement between a Participant and the Company that sets forth the terms and conditions of the Participants Award, as determined by the Board of Managers.
(d) Board of Managers means the Board of Managers of the Company.
(e) Cause for termination by the Company of the Participants employment shall be as defined in any employment agreement between the Company or its Affiliates and the Participant, if any, and if no such agreement exists or such agreement does not provide a definition of cause, such term shall be limited to: (i) continued failure to substantially perform assigned duties, including the duties and obligations of Participants position with the Company (other than any such failure resulting from incapacity due to physical or mental illness); (ii) conviction of, or pleading of nolo contendre or guilty to, a felony under the laws of the United States or any State thereof, excluding felonies for minor traffic violations and/or felonies for vicarious liability for which Participant did not know of the felony and did not willfully violate the applicable law(s); (iii) the commission of any act of fraud, theft, embezzlement or other material dishonesty taken by Participant which was intended to result in substantial gain or personal enrichment to Participant at the Companys expense; (iv) intentional violation of a
federal or state law or regulation applicable to the Companys business which violation was or is reasonably likely to be injurious to the Company and/or (v) the deliberate and intentional violation by Participant of the provisions of any agreement with the Company or its Affiliates regarding noncompetition, nonsolicitation and/or confidential information. A finding of Cause shall be determined by the Companys Board of Managers in its exclusive discretion and Participant shall have no appeal from such finding for any reason.
(f) Change of Control means the date on which the first of the following occurs, provided that such event qualifies as a change of control within the meaning of Code Section 409A:
(i) a change in the ownership of the Company, which occurs on the date on which any one person or more than one person acting as a group, other than an Excluded Person, acquires ownership of Membership Units of the Company that, together with Membership Units held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the Membership Units of the Company; or
(ii) a change in the ownership of a substantial portion of assets, which occurs on the date on which any one person or more than one person acting as a group, other than an Excluded Person, acquires assets from the Company that have a total gross fair market value equal to or more than 75% of the total gross fair market value of all the assets of the Company on a stand alone basis (without regard to the value of any subsidiary of the Company) immediately prior to such acquisition.
An Excluded Person means (i) the Company or any of its Affiliates, or (ii) an entity owned, directly or indirectly, by the members of the Company in substantially the same proportions as their ownership of the Company.
(g) Code means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code includes any successor provision and the regulations promulgated under such provision.
(h) Company means Warehouse Technologies, LLC, a New Hampshire limited liability company, and any successor, by merger or otherwise, thereto.
(i) Fair Value per VAP Unit means the fair market value of one one-hundredth (1/100th) of a Class C Unit of the Company on a fully-diluted basis on the Valuation Date.
The fair market value of one one-hundredth of a Class C Unit of the Company shall be determined by multiplying the fair market value of the Company by the quotient obtained by dividing (a) the quotient of one divided by the aggregate of the number of number of authorized Class A Units and Class C Units in the Company (whether or not issued and/or vested) by (b) one hundred (100). The term fair market value of the Company shall be the fair market value of the Company, as determined in good faith by the Board of Managers in its sole
2
discretion after consulting with one or more independent third-party appraiser or valuation experts, as of the Valuation Date, less any preferred return or liquidation preference due to any Member of the Company (including but not limited to, any obligation to pay an Unreturned Class B Preferred Capital to any holder of Class B Units). Such valuation shall not take into account any minority or lack of marketability discounts or control premiums. Such valuation shall be conducted at least annually following the close of the Companys fiscal year and will be based on business, financial, economic, capitalization (including, without limitation any Liquidation Preference) and other metrics, applied consistently on a year-by-year basis (other than appropriate changes in the valuation method(s) for the relative stage of development of the Company), as the third-party appraiser and the Board of Managers determine are reasonably necessary or appropriate for a determination of the fair market value of the Company consistent with the requirements of FASB Accounting Standards Codification 820, IRS Regulation 409A and related IRS revenue rulings and their successors.
Notwithstanding anything herein to the contrary, if the Company receives a capital contribution without issuance of additional Membership Units or issues additional Membership Units without consideration therefor, or other similar transaction occurs, the Board of Managers may equitably adjust the calculation of the fair market value of the Company to take such transactions into account as it determines in its sole discretion.
(j) Grant Date means, with respect to an Award, the date as of which a Participant is granted such Award.
(k) Initial Value means the value assigned to a VAP Unit as its initial value by the Board of Managers in its sole discretion, such amount to be no less than the fair market value of a VAP Unit on the Grant Date, which amount shall be set forth in the Award Agreement.
(l) Member has the meaning given in the Operating Agreement.
(m) Membership Units means the units of membership interest in the Company as defined as a Unit in the Operating Agreement of the Company. On the effective date of this Plan, the Membership Units are comprised of 1,000,000 Class A Units, 1 Class B Unit and 428,571 Class C Units, in each case as those terms are defined in the Operating Agreement.
(n) Net Sale Price per VAP Unit in the event the Change of Control transaction is a sale of membership interests or a merger (or equivalent transaction) means:
(i) the net sale price of the Company on the closing date less any amounts payable to the Class B Units as that term is defined in the Operating Agreement; divided by
(ii) the number of number of Class A Units and/or Class C Units that are sold in such transaction; divided by
(iii) the number one hundred (100).
3
Net Sale Price per VAP Unit in the event the Change of Control transaction is a sale of all or substantially all of the assets of the Company means net sale price of the Company on the closing date, multiplied by
(i) the quotient of one divided by the aggregate of the number of number of authorized Class A Units and Class C Units in the Company (whether or not issued and/or vested); divided by
(ii) the number one hundred (100).
For purposes hereof, the net sale price of the Company means: (A) in the event the Change of Control transaction is a sale of membership interests or a merger (or equivalent transaction), an amount equal to the fair value of the consideration received by the owners of all Membership Units which are sold in such transaction; or (B) in the event the Change of Control transaction is a sale of all or substantially all of the assets of the Company, an amount equal to the fair market value of the Company immediately prior to the event, determined taking into account the sale price of the assets sold in such transaction (without reduction for any liabilities assumed by the buyer in such transaction), including but not limited to goodwill. For the sake of clarity, in any Change of Control transaction, the net sale price of the Company is intended to be determined after reduction for expenses related to such transaction and after payment of any preferred return or liquidation preference to any Member of the Company (including but not limited to, any obligation to pay an Unreturned Class B Preferred Capital to any holder of Class B Units of the Company).
Notwithstanding anything herein to the contrary, if the Company receives a capital contribution without issuance of additional Membership Units, issues additional Membership Units without full consideration therefor, or other similar transaction occurs, the Board of Managers may equitably adjust the calculation of the net sale price of the Company to take such transactions into account as it determines in its sole discretion.
All calculations related to the calculation of Net Sale Price shall be determined by the Board of Managers in its sole discretion.
(o) Operating Agreement shall mean the Second Amended and Restated Limited Liability Company Operating Agreement of Company, dated January 1, 2012, as amended from time to time.
(p) Participant shall mean an eligible individual who has been selected by the Board of Managers to receive an Award.
(q) Plan shall mean this 2012 Value Appreciation Plan, as amended from time to time.
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(r) Separation from Service means a Participants cessation of service from the Company and all Affiliates within the meaning of Code Section 409A, including death, disability (as defined in Code Section 409A) and including the following rules:
(i) If a Participant takes a leave of absence from the Company or an Affiliate for purposes of military leave, sick leave or other bona fide leave of absence, the Participants employment will be deemed to continue for the first six (6) months of the leave of absence, or if longer, for so long as the Participants right to reemployment is provided either by statute or by contract; provided that if the leave of absence is due to the Participants medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of six (6) months or more, and such impairment causes the Participant to be unable to perform the duties of his position with the Company or an Affiliate or a substantially similar position of employment, then the leave period may be extended for up to a total of twenty-nine (29) months. If the period of the leave exceeds the time periods set forth above and the Participants right to reemployment is not provided by either statute or contract, the Participant will be considered to have incurred a Separation from Service on the first day following the time periods set forth above.
(ii) A Participant will be presumed to have incurred a Separation from Service when the level of bona fide services performed by the Participant for the Company and its Affiliates permanently decreases to a level equal to 20% or less of the average level of services performed by the Participant for the Company or its Affiliates during the immediately preceding thirty-six (36) month period (or such lesser period of service).
(iii) The Participant will be presumed not to have incurred a Separation from Service while the Participant continues to provide bona fide services to the Company or an Affiliate in any capacity (whether as an employee or independent contractor) at a level that is at least 50% or more of the average level of services performed by the Participant for the Company or its Affiliates during the immediately preceding thirty-six (36) month period (or such lesser period of service).
(s) Symbotic means Symbotic LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company.
(t) Valuation Date means the effective date of a valuation of the fair market value of the Company determined by the Board of Managers of the Company from time to time. Such valuations shall be conducted at least annually following the close of the Companys fiscal year, with an effective date as of the end of such fiscal year, and at such other times and with such effective dates as the Board of Managers determines is necessary or appropriate.
(u) VAP Unit means a unit of measurement tied to one one-hundredth (1/100th) of a Class C Unit of the Company that entitles a Participant to receive a payment from the Company equal to the excess of either the Fair Value or Net Sale Price (as set forth in Section 9) and the Initial Value, subject to the other terms and conditions of the Plan and the Participants Award Agreement.
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Section 3. Administration
(a) General. The Plan shall be administered by the Board of Managers. The Board of Managers shall have discretionary authority to administer the Plan, construe and interpret the terms and provisions of the Plan and any Award Agreement, and adopt and revise such rules and regulations for the administration of the Plan as it deems necessary. Subject to the terms of the Plan, the Board of Managers shall designate the individuals who shall participate in the Plan, the number of VAP Units subject to each Award, any vesting requirements, and shall determine all other terms, conditions and limitations of each Award. Notwithstanding the above, the Board of Managers shall have to power to delegate all or some of its powers of administration of the Plan hereunder to the chief executive officer of the Company.
(b) Determinations Final. The actions, determinations and decisions of the Board of Managers respecting the Plan, the granting of Awards hereunder, and the administration of the Plan, shall be final, conclusive and binding upon all parties concerned, including, but not limited to, the Company, the Participants, and any employee of the Company.
(c) Indemnification. The Board of Managers shall not be liable for any act done or determination made in good faith. The Company shall indemnify the Board of Managers against all liability occasioned by any act done or determination made in good faith. No bond or other security shall be required of the Board of Managers for the faithful performance of its duties hereunder.
Section 4. VAP Units Reserved Under This Plan
Initially, an aggregate of One Million Four Hundred Thousand Five Hundred Seventy One (1,428,571) VAP Units are reserved for Awards under this Plan. If an Award lapses, expires, terminates or is cancelled without payment of cash under the Award, then the VAP Units to which such Award relates, to the extent of such lapse, expiration, termination or cancellation, may again be used for new Awards. The Board of Managers may reserve additional VAP Units for Awards under this Plan from time to time based on the unissued portion of the 214,286 Class C Units of the Company that are issuable by the Board pursuant to the terms of the Operating Agreement (but not, for the avoidance of doubt, the Class C Units that the holder of Class A Units may require the Company to issue). The Board of Managers may reserve up to such number of additional VAP Units equal to such number of unissued Class C Units multiplied by 100.
Section 5. Adjustment in Capitalization
Unless otherwise determined by the Board of Managers, no adjustment shall be made to the Awards or potential Awards intended to be made available under the Plan, for any type of dilution, intended or unintended, including any dividend or other distribution (whether in the form of Units, other securities, or other property), recapitalization, unit split, reverse unit split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of units or other securities of the Company, issuance of warrants or other rights to purchase units or other securities of the Company, or other similar transaction or event affecting Membership Units; provided, however, that such adjustment may be made in order to prevent
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enlargement of such Awards. In the event any adjustment is made pursuant to this Section 5, then the Board of Managers shall, in such manner as it may deem equitable and without requiring the consent of any Participant (or the Participants estate following the Participants death), adjust any or all of (a) the number of VAP Units reserved under this Plan; (b) the method of calculating the Fair Value and Net Sale Price per VAP Unit; and (c) the number and Initial Value of VAP Units subject to outstanding Awards.
Section 6. Eligibility and Participation
Participants in the Plan shall be selected by the Board of Managers from among management, directors, consultants and key employees of the Company and its Affiliates, including Symbotic, as the Board of Managers may designate from time to time. The Board of Managers shall consider such factors as it deems appropriate in selecting Participants and in determining the type and amount of their respective Awards. The Board of Managers designation of a Participant in any year shall not require the Board of Managers to designate such person to receive an Award in any other year.
Section 7. Grant of VAP Units
VAP Units may be awarded to Participants by the Board of Managers at any time. Grants of VAP Units shall be subject to such terms and conditions as the Board of Managers determines. Each grant of VAP Units shall be evidenced by an Award Agreement, which shall include, among such other provisions as the Board of Managers may determine, vesting requirements, the Grant Date and the Initial Value.
Section 8. Vesting
Unless otherwise set forth in the Award Agreement, each Award will vest as follows, provided that the Participant has not incurred a Separation from Service prior to the applicable vesting date:
(a) 20% of the VAP Units subject to the Award shall vest upon the first anniversary of the Grant Date; and
(b) the remaining 80% of the VAP Units subject to the Award shall vest quarterly (5% per quarter) over the following four (4) year period on the last day of each calendar quarter beginning with the last day of the first full calendar quarter following the first anniversary of the Grant Date.
Notwithstanding the foregoing, unless otherwise determined by the Board of Managers and set forth in an Award Agreement, upon a Change of Control, 20% of the VAP Units subject to the Award shall vest (or all of the VAP Units subject to the Award in the case that 20% or less of the VAP Units subject to the Award is still subject to vesting at the time of such Change of Control) held by a Participant shall vest immediately; provided, however, that if a Participant has less than one (1) year of service with the Company on the date of a Change of Control, then only 10% (rather than 20%) of the VAP Units subject to the Award shall vest.
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Section 9. Payment of VAP Unit Value
(a) Mandatory Payout of VAP Unit Value. Unless otherwise determined by the Board of Managers and set forth in an applicable Award Agreement, a Participant shall be entitled to receive a payment from the Company with respect to his or her vested VAP Units upon the earlier to occur of the following:
(i) Tenth Anniversary / Term of Award. On January 31st of the year in which the tenth anniversary of the Grant Date falls or, if the Award has a term of less than ten years, of the year in which the Award terminates in the ordinary course, (A) all unvested VAP Units shall be automatically and immediately cancelled, and (B) the Company shall redeem each vested VAP Unit for a cash payment equal to the excess of the Fair Value of such VAP Unit using a Valuation Date as of the end of the most recently completed fiscal year over the Initial Value of such VAP Unit. Payment shall be made to the Participant in a cash lump sum no later than March 31st of such year.
(ii) Change of Control. Upon a Change of Control, (A) all unvested VAP Units shall be automatically and immediately cancelled, and (B) the Company shall redeem each vested VAP Unit for a cash payment equal to the excess of the Net Sale Price per VAP Unit over the Initial Value of such VAP Units. Payment shall be made to the Participant within ninety (90) days following the Change of Control, unless an earlier time period is set forth in the Participants Award Agreement and such payment shall be made in a combination of cash or other property (including stock of an acquirer or their parent) in such ratio of cash and other property as payments to Class C Members are made; provided, however, that such payment may be paid under the terms and conditions that govern the payments to Membership Units upon a Change of Control (including the requirement that all or a portion of such amounts be subject to escrow), as long as such amounts are paid within five years of the Change of Control.
(b) Elective Payout of VAP Units Value. Unless otherwise determined by the Board of Managers and set forth in an applicable Award Agreement, a Participant shall be entitled to receive a payment from the Company with respect to his or her vested VAP Units upon a written election by the Participant (on or in such form as determined by the Board of Managers) and the earlier to occur of the events set forth in Section 9(a) above or the following:
(i) Elective Payment. At any time during the month of January during each year, the participant shall have the opportunity to provide the Company with written notice of his or her election to exercise all or a portion of his or her vested VAP Units. Following such election, the Company shall redeem each such VAP Unit for a cash payment equal to the excess of the Fair Value of such VAP Unit using a Valuation Date as of the end of the most recently completed fiscal year over the Initial Value of such VAP Unit. Payment shall be made to the Participant in a cash lump sum no later than March 31st of such year.
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(ii) Separation from Service. Upon a Separation from Service for Cause, all vested and unvested VAP Units then held by the Participant shall be automatically and immediately cancelled and the participant shall have no right to any payment hereunder (except for any payment due for any previously exercised vested VAP Units where such exercise occurred prior to such Separation from Service for Cause). Upon a Separation from Service other than a Separation from Service for Cause, (A) all unvested VAP Units shall be automatically and immediately cancelled, and (B) upon affirmative notice to the Company of a desire to exercise their right to a payment for the vested VAP Units held by such Participant and such notice is provided to the Company within forty-five (45) days after the date of Separation from Service, the Company shall redeem each vested VAP Unit for a cash payment equal to the excess of the Fair Value of such VAP Unit using a Valuation Date as of the end of the most recently completed fiscal year occurring on or prior to the date of Separation from Service over the Initial Value of such VAP Unit. Payment shall be made to the Participant contemporaneously with payments made for other Participants (i) who elect to exercise their vested VAP Units in the exercise period following the date of Separation from Service or (ii) upon a Change of Control, whichever occurs first. In the event that the Participant fails to provide the Company with notice of their desire to exercise their right to payment in the time period set forth above, all vested VAP Units shall be automatically and immediately cancelled.
(c) Exercisability Triggers and Limitations on Exercise. Notwithstanding the above, no Participant may exercise and the Company shall not redeem any vested VAP Unit pursuant to Section 9(a)(i) or Section 9(b) unless and until such time the Company achieves the following: (i) completion of the first fiscal year in which the Company meets or exceeds annual revenue (on a cash accounting basis) of $100 million; (ii) completion of first fiscal year in which the Company is positive cash flow; or (iii) completion of the first fiscal year in which the Company has positive EBITDA. A Participant may elect to exercise and the Company may redeem one-third of the vested VAP Units for each of the above criteria that is satisfied prior to such date. For example, if two of the three above criteria are satisfied prior to the date on which a Participant desires to exercise their vested VAP Units, only two-thirds of such vested VAP Units may be exercised by the Participant and redeemed by the Company. Whether the above criteria are satisfied upon the completion of a fiscal year shall be determined by the Board of Managers in its sole discretion.
(d) Limitations on Payment. Except for any payments due pursuant to Section 9(a)(ii), the Company shall not be under any obligation to make aggregate payments in excess of $25 million in any calendar year (the Annual Cap). In the event that any payment hereunder is due to a Participant (except for any payments due pursuant to Section 9(a)(ii)) and the aggregate amount of payments hereunder exceed the Annual Cap, the amount payable to such Participants shall be reduced, pro rata, such that the aggregate payments by the Company shall not exceed the Annual Cap. Any amounts that are not payable as a result of the application of the Annual Cap shall be payable on January 31st of the next calendar year as a priority payment over any payment obligations that arise in such subsequent calendar year unless such payments then exceed the Annual Cap for such subsequent calendar year. In such a case, any unpaid amounts will continue to be payable on January 31st of each subsequent calendar year as a priority
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payment over any payment obligations that arise in such subsequent calendar year (and any carryover amounts that arise subsequent to the original payment obligation hereunder) until the amount due is paid in full. Notwithstanding anything to the contrary, in the event that any payment hereunder is a result of a mandatory exercise pursuant to Section 9(a)(ii) above, the Board of Managers may, in its sole discretion, make the payment in cash and/or stock and securities if the consideration received by the Company as a result of the Change of Control includes stock and/or securities.
(e) Cancellation of VAP Units After Redemption. In the event of any redemption of vested VAP Units as provided in this section, the vested VAP Units so redeemed shall automatically and immediately thereafter be cancelled.
(f) Cancellation of VAP Units For Cause. Notwithstanding anything herein to the contrary, in the event of a Participants Separation from Service for Cause, all VAP Units (whether vested or unvested) shall automatically and immediately be cancelled, and any payment that has accrued but not yet been paid shall be cancelled, without consideration as of the date of such termination and without notice thereof.
Section 10. Death After Right to Payment
In the event of the death of a Participant after a right to a payment has accrued under this Plan, but prior to the date the payment is made, the scheduled payment shall be payable to the Participants estate.
Section 11. Amendment, Modification and Termination of the Plan and Awards
(a) Amendment and Termination. The Board of Managers may at any time amend, alter, suspend, discontinue or terminate the Plan; provided that no amendment or termination of the Plan may, except as otherwise provided herein, in the absence of written consent to the change by the affected Participant (or, if the Participant is not then living, the Participants estate), adversely affect the rights of any Participant (or his or her estate) under any Award granted under the Plan prior to the effective date of such amendment or termination.
(b) Amendment of Awards. Subject to the restrictions of this Plan, the Board of Managers may, at any time, amend any Award; provided that no amendment may, except as otherwise provided herein, in the absence of written consent to the change by the affected Participant (or, if the Participant is not then living, the Participants estate), adversely affect the rights of any Participant (or his or her estate). The Board of Managers may waive any conditions or other restrictions, in whole or in part, with respect to any Award granted under the Plan.
(c) Continuance of Rights. All unexpired Awards shall continue in force and effect after termination of the Plan except as they may lapse or be terminated by their own terms and conditions. Further, to the extent set forth in the Plan, the authority of the Board of Managers to amend, alter, adjust, suspend, discontinue or terminate any such Award, or to waive any conditions or restrictions with respect to any such Award, and to administer and amend the Plan and Award Agreements, shall extend beyond the termination date of the Plan.
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Section 12. Nonalienation of Benefits
No Award granted hereunder shall be transferable by a Participant other than by will or the laws of descent and distribution. No right or benefit under this Plan shall be subject to anticipation, alienation, sale, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge the same shall be void. No right or benefit hereunder shall in any manner be liable for or subject to the debts, contracts, liabilities or torts of the persons entitled to such benefits. If any Participant hereunder shall become bankrupt or attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge any right or benefit hereunder, then such right or benefit shall, in the discretion of the Board of Managers, cease, and in such event, the Company may hold or apply the same or any part thereof for the benefit of the Participant, his or her spouse, children or other dependents, or any of them, in such proportion as the Board of Managers shall deem proper.
Section 13. Ordinary Income; Payment of Taxes
Payments under the Plan will be taxed as ordinary income to the Participant for the year in which the payment is actually made. The Company shall have the right to deduct from all payments made under the Plan or any other amount owed to a Participant (or his or her estate) any taxes required by law to be withheld with respect to such payments or the accrual or vesting of any benefit hereunder.
Section 14. Claims and Appeals
(a) Initial Claim. If a Participant or the Participants estate following his or her death (the claimant) believes that he or she is entitled to a benefit under the Plan that is not provided, the claimant (or his or her authorized legal representative) may file a written claim for such benefit with the Board of Managers within ninety (90) days of the date the payment that is in dispute should have been made. The Board of Managers shall review the claim and render a decision within ninety (90) days following the receipt of the claim; provided that the Board of Managers may determine that an additional ninety (90)-day extension is necessary due to circumstances beyond the Board of Managers control, in which event the Board of Managers shall notify the claimant prior to the end of the initial period that an extension is needed, the reason therefor, and the date by which the Board of Managers expects to render a decision. If the claimants claim is denied in whole or part, the Board of Managers shall provide written notice to the claimant of such denial. The written notice shall include: the specific reason(s) for the denial; reference to specific Plan provisions upon which the denial is based; a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of which such material or information is necessary; and a description of the Plans review procedures (as set forth in subsection (b)) and the time limits applicable to such procedures, including a statement of the claimants right to bring a civil action under section 502(a) of ERISA following an adverse determination upon review.
(b) Request for Appeal. The claimant has the right to appeal the Board of Managers decision by filing a written appeal to the Board of Managers within sixty (60) days after the claimants receipt of the Board of Managers decision, although to avoid penalties under Code Section 409A, the claimants appeal must be filed in all events within one hundred eighty
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(180) days of the date payment could have been timely made in accordance with the terms of the Plan and pursuant to the regulations promulgated under Code Section 409A. The claimant will have the opportunity, upon request and free of charge, to have reasonable access to and copies of all documents, records and other information relevant to the claimants appeal. The claimant may submit written comments, documents, records and other information relating to his claim with the appeal. The Board of Managers will review all comments, documents, records and other information submitted by the claimant relating to the claim, regardless of whether such information was submitted or considered in the initial claim determination. The Board of Managers shall make a determination on the appeal within sixty (60) days after receiving the claimants written appeal; provided that the Board of Managers may determine that an additional sixty (60)-day extension is necessary due to circumstances beyond the Board of Managers control, in which event the Board of Managers shall notify the claimant prior to the end of the initial period that an extension is needed, the reason therefor and the date by which the Board of Managers expects to render a decision. If the claimants appeal is denied in whole or part, the Board of Managers shall provide written notice to the claimant of such denial. The written notice shall include: the specific reason(s) for the denial; reference to specific Plan provisions upon which the denial is based; a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claimants claim; and a statement of the claimants right to bring a civil action under section 502(a) of ERISA. If the claimant does not receive a written decision within the time period(s) described above, the appeal shall be deemed denied on the last day of such period(s).
(c) ERISA Fiduciary. For purposes of ERISA, the Board of Managers shall be considered the named fiduciary under the Plan and the plan administrator thereof.
Section 15. Periodic Notices
The Company shall prepare and periodically distribute to Participants notices relating to the Plan and related Awards. Such notices shall be distributed at least annually following the end of the fiscal year (no later than December 31st following the end of each fiscal year) and shall provide information to Participants about the most recently completed valuation of the fair market value of the Company and the resultant Fair Value per VAP Unit, whether or not and which of the exercisability triggers specified in Section 9(c) have been achieved and such other information as the Company may consider necessary or desirable.
Section 16. Miscellaneous Provisions
(a) Offset Permitted. Notwithstanding any provision of the Plan to the contrary, the Company shall have the right to reduce and offset any payment to which a Participant or his or her estate is entitled hereunder by the amount of any debt or other amount owed to the Company by the Participant at the time of such payment.
(b) No Trust Created. Nothing contained in this Plan and no action taken pursuant to its terms shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company or the Board of Managers and the Participant, his or her estate, or any other person. Participants have the status of general unsecured creditors of the
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Company. The Plan constitutes a mere promise by the Company to make benefit payments in the future. To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of any unsecured general creditor of the Company. It is the intention of the Company that the arrangements hereunder be unfunded for tax purposes and for purposes of Title I of ERISA.
(c) No Right to Employment. Nothing contained in this Plan shall limit in any way the right of the Company to terminate a Participants employment or service at any time or be evidence of any agreement or understanding, express or implied, that the Company will employ a Participant in any particular position or at any particular rate of remuneration.
(d) Severability. If any particular provision of the Plan or an Award Agreement is found by final judgment of a court or administrative tribunal of competent jurisdiction to be illegal, invalid or unenforceable, such illegal, invalid or unenforceable provision shall not affect any other provision of the Plan or Award Agreement and the other provisions of the Plan or Award Agreement shall remain in full force and effect.
(e) Governing Law. Unless and to the extent preempted by Federal law, the Plan and all Award Agreements shall be governed by and construed and enforced in accordance with the laws of the State of New Hampshire, excluding any choice of law rules that may direct the application of the laws of another jurisdiction.
(f) Limited Interest. The grant of VAP Units shall not be construed as giving the Participant any interest other than as provided in this Plan or the Participants Award Agreement. The Participant shall not be deemed to be a member of the Company and shall have no voting rights as a result of the grant of any VAP Units. Participants have no right to receive actual equity in Symbotic or the Company.
(g) Captions, Gender, References, and Number. The captions in this Plan are inserted only as a matter of convenience and in no way affect the terms or intent of any provision of this Plan. All defined phrases, pronouns, and other variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the actual identity of the organization, person or persons may require.
(h) Defined Terms. Capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the Operating Agreement.
(i) Terms of Plan Govern. In the event of any conflict between the terms of a Participants Award Agreement and the Plan, the terms of the Plan shall govern.
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Exhibit 10.27
SYMBOTIC LLC
SYMBOTIC CANADA ULC
WAREHOUSE TECHNOLOGIES LLC
AMENDED AND RESTATED
2018 LONG TERM INCENTIVE PLAN
The purpose of this Amended and Restated 2018 Long Term Incentive Plan is to promote the best interests of Warehouse Technologies LLC, its wholly-owned subsidiaries, Symbotic LLC and Symbotic Canada ULC, and their members by providing an incentive for management, board members, consultants and key employees of the Company and its Affiliates to increase the value of the Company through the grant of value appreciation award units, and by enabling the Company and its Affiliates to attract and retain the services of such individuals upon whose judgment, interest, skills, and special effort the successful conduct of their operations is largely dependent.
The Plan was initially adopted by the Company on March 26, 2018 and was subsequently amended and restated on June 29, 2018.
ARTICLE I
DEFINITIONS
The following words and phrases used in this Plan shall have the respective meanings set forth below unless the context clearly indicates to the contrary.
Section 1.1 Administrator means the Board of Managers or an officer of the Company appointed from time to time by the Board of Managers to which the Board of Managers has delegated its administrative powers under this Plan.
Section 1.2 Affiliate means each entity that is required to be included in the Companys controlled group of corporations within the meaning of Code Section 414(b), or that is under common control with the Company within the meaning of Code Section 414(c); provided that for purposes of determining when a Participant has incurred a Separation from Service, the phrase at least 50 percent shall be used in place of the phrase at least 80 percent in each place that phrase appears in the regulations issued thereunder. For all purposes of this Plan, Affiliate shall include, without limitation, each of Symbotic and Symbotic Canada unless and until such entity ceases to be included in the Companys controlled group or under common control with the Company as described above.
Section 1.3 Award means a grant of Units to a Participant pursuant to the terms of the Plan and the applicable Award Agreement.
Section 1.4 Award Agreement means a written agreement between a Participant and the Company that sets forth the terms and conditions of the Participants Award, as determined by the Administrator.
Section 1.5 Beneficiary has the meaning set forth in Section 8.1.
Section 1.6 Board of Managers means the Board of Managers of the Company.
Section 1.7 Cause for termination by the Company of the Participants employment shall be as defined in any written employment agreement between the Company or its Affiliates and the Participant, if any, and if no such agreement exists or such agreement does not provide a definition of cause, then Cause means the Participants: (i) continued failure to substantially perform assigned duties, including the duties and obligations of Participants position with the Company (other than any such failure resulting from incapacity due to physical or mental illness); (ii) conviction of, or pleading of nolo contendre or guilty to, a felony under the laws of the United States or any State thereof, or an indictable offence under the laws of Canada, if applicable, excluding felonies or other offences for minor traffic violations and/or felonies or other offences for vicarious liability for which Participant did not know of the felony or other offence and did not willfully violate the applicable law(s); (iii) the commission of any act of fraud, theft, embezzlement or other material dishonesty taken by Participant which was intended to result in substantial gain or personal enrichment to Participant at the Companys expense; (iv) intentional violation of a federal, provincial or state law or regulation applicable to the Companys business which violation was or is reasonably likely to be injurious to the Company; and/or (v) the deliberate and intentional violation by Participant of the provisions of any agreement with the Company or its Affiliates regarding noncompetition, nonsolicitation and/or confidential information. A finding of Cause shall be determined by the Administrator in its exclusive discretion and Participant shall have no appeal from such finding for any reason.
Section 1.8 Change in Control means the date on which the first of the following occurs, provided that such event qualifies as a change in control as defined in Treasury Regulation §1.409A-3(i)(5):
(a) a change in the ownership of the Company, which occurs on the date on which any one person or more than one person acting as a group, other than an Excluded Person, acquires ownership of Membership Units of the Company that, together with Membership Units held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the Membership Units of the Company; or
(b) a change in the ownership of a substantial portion of the Companys assets, which occurs on the date on which any one person or more than one person acting as a group, other than an Excluded Person, acquires assets from the Company that have a total gross fair market value equal to or more than 80% of the total gross fair market value of all the assets of the Company immediately prior to such acquisition.
Section 1.9 Claimant has the meaning set forth in Section 7.1.
Section 1.10 Code means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code includes the regulations promulgated under such provision.
Section 1.11 Company means Warehouse Technologies LLC, a New Hampshire limited liability company, and any successor, by merger or otherwise thereto.
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Section 1.12 Disability and Disabled means permanent and total disability as defined in Section 22(e)(3) of the Code.
Section 1.13 Distribution Amount has the meaning specified in Section 5.2.
Section 1.14 Distribution Date means the date specified in Section 5.1.
Section 1.15 Excluded Person means (i) the Company or any of its Affiliates, or (ii) an entity owned, directly or indirectly, by the members of the Company in substantially the same proportions as their ownership of the Company.
Section 1.16 Fair Value Per Unit means the fair value of a Unit, determined as of each Valuation Date and calculated as the quotient of:
(i) The quotient of ((3 x R) + (20 x E)) and 2; and
(ii) TU
Where:
R = Total Revenue for the most recently completed fiscal year ending on or prior to the Valuation Date, as set forth in the consolidated financial statements of the Company;
E = positive EBITDA for the most recently completed fiscal year ending on or prior to the Valuation Date, as set forth in the consolidated financial statements of the Company, and in no event an amount less than zero; and
TU = (i) Total aggregate Class A Units and Class C Units of the Company, calculated on a fully-diluted basis, and multiplied by 100, plus (ii) the total Units, in each case based on the number outstanding on the Valuation Date.
Notwithstanding anything herein to the contrary, if the Company issues additional Class A and/or Class C Units, or other common Membership Units or other common equity without consideration therefore, or other similar transactions occur, the Administrator may equitably adjust the calculation of the Fair Value Per Unit to take such transactions into account as it determines in its sole discretion.
The Administrator shall have discretion to prospectively change the method of determination of Fair Value Per Unit each year, and to appropriately adjust the calculation of Fair Value Per Unit for Valuation Dates that do not occur as of the end of a fiscal year, provided that the Administrator may not modify, change or amend the timing or form of any distribution under this Plan except in compliance with Code Section 409A.
Section 1.17 Grant Date means, with respect to an Award, the date on which the Administrator approves the Award.
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Section 1.18 Initial Value means the value assigned to a Unit as its initial value the Administrator in its sole discretion on the Grant Date. Unless otherwise determined by the Administrator, such amount shall be: (i) if the Grant Date is on or before June 30 of any year, the Fair Value Per Unit on the Valuation Date immediately preceding the Grant Date; and (ii) if the Grant Date is after June 30 of any year, the Fair Value Per Unit on the next succeeding Valuation Date.
Section 1.19 Membership Units means the units of membership interest in the Company as defined as a Unit in the Operating Agreement of the Company. On the effective date of this Plan, there are 6,426,208 Membership Units, comprised of 5,997,632 Class A Units, 1 Class B Preferred Unit, 2 Class B-1 Preferred Units, 2 Class B-2 Preferred Units and 428,571 Class C Units, in each case as those terms are defined in the Operating Agreement.
Section 1.20 Net Sale Price per Unit in the event the Change in Control transaction is a sale of membership interests or a merger (or equivalent transaction) means:
(a) the net sale price of the Company on the closing date less any amounts payable to the Class B Units as that term is defined in the Operating Agreement; divided by
(b) the number of number of Class A Units and/or Class C Units that are sold in such transaction; divided by
(c) the number one hundred (100).
Net Sale Price per Unit in the event the Change in Control transaction is a sale of all or substantially all of the assets of the Company means net sale price of the Company on the closing date, divided by
(a) (i) the total aggregate Class A Units and Class C Units of the Company, calculated on a fully-diluted basis, and multiplied by 100, plus (ii) the total Units, in each case based on the number outstanding on the date of the Change in Control transaction.
For purposes hereof, the net sale price of the Company means: (A) in the event the Change in Control transaction is a sale of membership interests or a merger (or equivalent transaction), an amount equal to the fair value of the consideration received by the owners of all Membership Units which are sold in such transaction; or (B) in the event the Change in Control transaction is a sale of all or substantially all of the assets of the Company, an amount equal to the fair market value of the Company immediately prior to the event, determined taking into account the sale price of the assets sold in such transaction (without reduction for any liabilities assumed by the buyer in such transaction), including but not limited to goodwill. For the sake of clarity, in any Change in Control transaction, the net sale price of the Company is intended to be determined after reduction for expenses related to such transaction and after payment of any preferred return or liquidation preference to any Member of the Company (including but not limited to, any obligation to pay an Unreturned Class B Preferred Capital to any holder of Class B Units of the Company).
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Notwithstanding anything herein to the contrary, if the Company receives a capital contribution without issuance of additional Membership Units, issues additional Membership Units without full consideration therefor, or other similar transaction occurs, the Board of Managers may equitably adjust the calculation of the net sale price of the Company to take such transactions into account as it determines in its sole discretion.
All calculations related to the calculation of Net Sale Price shall be determined by the Board of Managers in its sole discretion.
Section 1.21 Operating Agreement means the Third Amended and Restated Limited Liability Company Agreement of the Company dated February 9, 2018, as amended from time to time.
Section 1.22 Participants means eligible individuals selected by the Administrator to receive Awards under this Plan.
Section 1.23 Person is construed broadly and includes, without limitation, an individual, a partnership, a corporation, an association, a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.
Section 1.24 Plan means the Symbotic LLC, Symbotic Canada ULC, Warehouse Technologies LLC Amended and Restated 2018 Long Term Incentive Plan, as set forth in this document and as it may hereafter be amended from time to time.
Section 1.25 Retirement or Retired means Separation from Service other than for Cause or as a result of death or Disability, and on or after the date when (i) the Participants age plus total years of service to the Company or an Affiliate equals at least seventy (70), and (ii) the Participant has been a director, employee or consultant of the Company or an Affiliate for at least three (3) years.
Section 1.26 Separation from Service means a Participants cessation of service from the Company and all Affiliates within the meaning of Code Section 409A, including death, Disability and including the following rules:
(i) If a Participant takes a leave of absence from the Company or an Affiliate for purposes of military leave, sick leave or other bona fide leave of absence, the Participants employment will be deemed to continue for the first six (6) months of the leave of absence, or if longer, for so long as the Participants right to reemployment is provided either by statute or by contract. If the period of the leave exceeds six (6) months and the Participants right to reemployment is not provided by either statute or contract, the Participant will be considered to have incurred a Separation from Service on the first day following such six (6) month period.
(ii) A Participant will be deemed to have incurred a Separation from Service when the level of bona fide services performed by the Participant for the Company and its Affiliates permanently decreases to a level equal to 20% or less of the average level of services performed by the Participant for the Company or its Affiliates during the immediately preceding thirty-six (36) month period (or such lesser period of service).
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(iii) The Participant will be deemed to have not incurred a Separation from Service while the Participant continues to provide bona fide services to the Company or an Affiliate in any capacity (whether as an employee or independent contractor) at a level that is at least 50% or more of the average level of services performed by the Participant for the Company or its Affiliates during the immediately preceding thirty-six (36) month period (or such lesser period of service).
(iv) If the Participant continues to provide bona fide services to the Company or an Affiliate in any capacity (whether as an employee or independent contractor) at a level that is greater than 20%, but less than 50% of the average level of services performed by the Participant for the Company or its Affiliates during the immediately preceding thirty-six (36) month period (or such lesser period of service), the Administrator will determine based on all of the facts and circumstances operating at the time whether the Participant has incurred a Separation from Service.
Section 1.27 Symbotic means Symbotic LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company.
Section 1.28 Symbotic Canada means Symbotic Canada ULC, a British Columbia unlimited liability company and wholly-owned subsidiary of the Company.
Section 1.29 Unit means a unit of measurement that entitles a Participant to receive a payment from the Company equal to the excess of either the Fair Value Per Unit or Net Sale Price (as set forth in Article V) and the Initial Value, subject to the other terms and conditions of the Plan and the Participants Award Agreement.
Section 1.30 Unvested Unit means a Unit that has not yet become a Vested Unit.
Section 1.31 Valuation Date means the last day of each fiscal year while any Award remains outstanding unless the Administrator determines in connection with a Change in Control that the Valuation Date will be the effective date of the Change in Control in accordance with Section 5.3.
Section 1.32 Vested Unit has the meaning set forth in Section 4.2.
ARTICLE II
AUTHORIZED UNITS
Section 2.1 Authorized Units. The Plan shall initially have 13,500,000 authorized Units.
Section 2.2 Units Remaining for Awards. In determining the number of Units that remain issuable under the Plan at any time after the date the Plan is adopted, Unvested Units that are forfeited under the terms of this Plan or an Award will be deemed not to have been issued and will be deemed to remain available for issuance under the Plan.
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Section 2.3 Change in Capital Structure. If any of the Membership Units is changed by reason of any dividend or reclassification, or converted into or exchanged for other securities or property as a result of a merger, consolidation, recapitalization or reorganization, or if any extraordinary dividend or other distribution is paid on or in respect of the Membership Units, the Administrator in its sole discretion shall make such adjustments in the number of Units available under the Plan and subject to Awards as shall be reasonably necessary to preserve to a Participant rights substantially proportionate to his or her rights existing immediately prior to such transaction or event (but subject to the limitations and restrictions on such existing rights), including, without limitation, (i) a corresponding adjustment changing the timing and method of valuation of Units applicable to each Award granted to a Participant; (ii) the assumption of the Plan and such outstanding awards by the surviving corporation or its Parent; (iii) the substitution by the surviving corporation or its parent of awards with substantially the same terms for such outstanding Awards; or (iv) the cancellation of such outstanding Awards without payment of any consideration, provided with respect to each Participant, the Participants Units are not yet Vested Units.
Section 2.4 Decision of Administrator Final. The Administrator shall make the adjustments described in Section 2.3. The Administrators decision about such adjustments shall be final, binding and conclusive on the Company, Participants and any Beneficiary.
ARTICLE III
PARTICIPATION
Section 3.1 Participants. The Administrator shall select individuals who will become Participants in the Plan, in its sole discretion. Individuals who are selected to become Participants will commence participation in the Plan as of the Grant Date of their first Award.
Section 3.2 Termination. A Participant will cease to be a Participant on the date that is the Participants latest Distribution Date under the Plan for all of the Participants outstanding Awards.
ARTICLE IV
AWARDS; VESTING; FORFEITURE
Section 4.1 Award. The Administrator shall grant to each Participant an Award of Units on the terms and conditions as determined by the Administrator and as required by this Plan pursuant to a written Award Agreement. The effective date of the Award shall be the Grant Date of the Award.
Section 4.2 Vesting. Participants shall initially be unvested in any Units awarded and will have no right to distribution of any amounts except to the extent such Units become Vested Units. Except as otherwise set forth in the Participants Award Agreement, the Units will be subject to both a time-based vesting requirement and a performance-based vesting requirement, and will become Vested Units as follows:
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(a) With respect to time-based vesting, one-fifth of the Units subject to the Award shall vest upon each of the first five anniversaries of the Grant Date.
(b) With respect to performance-based vesting:
(i) if the Participant remains employed with the Company or one of its Affiliates through the fifth anniversary of the Grant Date, all of the Units subject to the Award shall vest upon the fifth anniversary of the Grant Date if EBITDA for the fiscal year ending during the calendar year in which the fifth anniversary of the Grant Date occurs is an amount greater than zero; and
(ii) if the Participant incurs a Separation from Service prior to the fifth anniversary of the Grant Date, the Units that have met the time vesting criteria set forth in Section 4.2(a) or 4.3 shall vest on the Participants Separation from Service if EBITDA for the fiscal year ending on or immediately prior to the date of the Participants Separation from Service is greater than zero.
Section 4.3 Termination as a Result of Death, Disability or Retirement. In the event that a Participant incurs a Separation from Service by reason of the Participants Death, Disability or Retirement, then the Participant will be deemed to have satisfied the time-based vesting requirement set forth in Section 4.2(a) with respect to a number of Units equal to the product of the number of Units awarded and a fraction, the numerator of which is the number of months and partial months that have elapsed between the Grant Date and the date on which the Separation from Service becomes effective and the denominator of which is 60.
Section 4.4 Change in Control.
(a) In the event of a Change in Control, Unvested Units will continue to vest in accordance with the terms of the Plan and the applicable Award Agreement, provided that the Administrator may in its sole discretion accelerate the vesting of some or all of the then outstanding Unvested Units in connection with the Change in Control. The Administrator is not required, however, to treat all Participants or all Awards similarly and may elect to vest some Unvested Units and not to vest other Unvested Units.
(b) If in connection with a Change in Control (i) the Plan and each outstanding award thereunder are not assumed by the surviving corporation or its Parent or (ii) the surviving corporation or its parent do not substitute new awards with substantially the same terms for outstanding Awards (determined by the Administrator in its sole discretion), then in each case all Unvested Units shall automatically become fully vested upon the Change in Control.
(c) If in connection with a Change in Control or during the two-year period following the effective date of a Change in Control, a Participant incurs a Separation from Service because of the Participants Death, Disability or Retirement or because the Company or its successor terminates the Participants employment without Cause, the Participant will vest in all Unvested Units on the date the Participants Separation from Service becomes effective.
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Section 4.5 Forfeiture of Unvested Units.
(a) If a Participant has a Separation from Service for any reason prior to the date on which his or her Unvested Units become Vested Units under Section 4.2, 4.3 or 4.4, the Participant shall forfeit all Unvested Units and shall have no right to any payment under this Plan or an Award Agreement with respect to any such forfeited Unvested Units.
(b) If any Unvested Units do not become Vested Units as a result of the performance-based vesting requirement set forth in Section 4.2(b), the Participant shall forfeit all Units subject to the Award and shall have no right to any payment under this Plan or an Award Agreement with respect to any such forfeited Unvested Units, including any rights that might have accrued under Section 4.4.
Section 4.6 Forfeiture on Separation from Service for Cause. Upon a Separation from Service for Cause, all Vested Units then held by the Participant shall automatically and immediately be cancelled without consideration as of the date of termination and without notice thereof, and the Participant shall have no right to any payment hereunder, including any accrued but not yet paid payment associated with a Distribution Date which occurred prior to such Separation from Service for Cause.
Section 4.7 Assignments Prohibited. Except as may otherwise be required by law, no part of a Participants Award shall be liable for the debts, contracts or engagements of the Participant, his or her beneficiaries or his or her successors in interest, or be taken in execution by levy, attachment or garnishment or by any other legal or equitable proceeding, nor shall any Participant have any rights to alienate, pledge, encumber, assign or otherwise transfer any benefits or payments hereunder in any manner whatsoever except to designate a beneficiary as provided herein.
ARTICLE V
BENEFITS
Unless otherwise determined by the Administrator and set forth in an applicable Award Agreement, a Participant shall be entitled to receive a payment from the Company with respect to his or her Vested Units as follows:
Section 5.1 Distribution Date.
(a) The Distribution Date for a Unit shall be the calendar year following the calendar year in which the Units subject to an Award become Vested Units. The Distribution Amount will generally be paid to the Participant or his or her Beneficiary within thirty (30) days following the date the Administrator determines the Distribution Amount in accordance with Section 5.2.
(b) Notwithstanding the provisions of Section 5.1(a), if a Participant has a Separation from Service for any reason (other than a Separation for Service for Cause) prior to the Distribution Date set forth in Section 5.1(a), the Distribution Date for the Participants Vested Units shall be the Participants Separation from Service. The Distribution Amount will be paid to such Participant or his or her Beneficiary within ninety (90) days following the effective date of the Participants Separation from Service.
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(c) For the purposes of the Plan, Separation from Service shall occur on the earlier of (i) in the case of retirement or resignation, the date specified in the notice sent by the Participant, or (ii) in the case of the termination of the Participants employment for any reason, the date specified in the notice of termination of employment sent by the Company or an Affiliate to the Participant or (iii) the Participants last date of actual and active employment with the Company or an Affiliate; it being understood that no period of notice or any period corresponding to an indemnity paid in lieu of a working notice that is given or ought to be given, whether under contract, statute, at common law, imposed by a court, or otherwise, will be utilized in determining entitlement under the Plan.
Section 5.2 Unit Value. On the Distribution Date, the Participant shall be entitled to receive a Distribution Amount equal to the product of: (i) the Participants number of Vested Units; and (ii) the excess of the Fair Value Per Unit determined as of the immediately preceding Valuation Date over the Initial Value of such Unit.
Section 5.3 Change in Control. If a Change in Control that occurs prior to the Distribution Date set forth in Section 5.1(a), the Distribution Date for the Participants Vested Units (including Units that became Vested Units pursuant to Section 4.4(b)) shall be the date of the Change in Control and the Distribution Amount for such Vested Units shall be equal to the product of: (i) the Participants number of Vested Units; and (ii) the excess of the Net Sale Price Per Unit over the Initial Value of such Unit. The Distribution Amount will be paid to a Participant or his or her Beneficiary for the Participants Vested Units within ninety (90) days following the date of the Change in Control and such payment shall be made in a combination of cash or other property (including stock of an acquirer or their parent) in such ratio of cash and other property as payments to Class C Members are made; provided, however, that such payment may be paid under the terms and conditions that govern the payments to Membership Units upon a Change in Control (including the requirement that all or a portion of such amounts be subject to escrow), as long as such amounts are paid within five years of the Change in Control.
Section 5.4 Cancellation of Units After Distribution. After a Distribution has been paid with respect to any Vested Units as provided in this Article, such Vested Units shall automatically and immediately thereafter be cancelled.
Section 5.5 Limitations on Payment. Notwithstanding anything to the contrary, in the event that any payment hereunder is a result of a Change in Control pursuant to Section 5.3 above, the Board may, in its sole discretion, make the payment in cash and/or stock and securities if the consideration received by the Company as a result of the Change in Control includes stock and/or securities.
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ARTICLE VI
ADMINISTRATIVE PROVISIONS
Section 6.1 Administrators Duties and Powers.
(a) The Administrator shall administer this Plan in accordance with this governing document, as amended from time to time. The Administrator shall have full discretionary power and authority to carry out that function and shall have the following specific duties and powers:
(i) To delegate all or part of its function as Administrator to any other Person and to revoke any such delegation.
(ii) To determine questions of eligibility and vesting of the Participant and his or her entitlement to benefits.
(iii) To select and engage attorneys, accountants, actuaries, trustees, appraisers, brokers, consultants, administrators, physicians or other Persons to render service or advice with regard to any responsibility the Administrator or the Board has under the Plan, to designate such Persons to carry out responsibilities, and (together with the Company, the Board and the Companys officers, and employees) to rely upon the advice, opinions or valuations of any such Persons, to the extent permitted by law, being fully protected in acting or relying thereon in good faith.
(iv) To construe and interpret the terms of the Plan and any Award for purpose of the administration and application of the Plan or the Award, in a manner not inconsistent with the Plan or applicable law.
(v) To determine disputed facts in connection with construing or interpreting the terms of the Plan or an Award.
(vi) To adopt rules of the Plan that are not inconsistent with the Plan or applicable law and to amend or revoke any such rules.
(b) The Administrator shall, to the maximum extent reasonably possible, interpret all provisions of this Plan in a manner that is consistent with all applicable laws, rules and regulations and the intended tax consequences of this Plan (including, without limitation, guidance that may be issued after the effective date of this Plan).
Section 6.2 Indemnification by the Company; Liability Insurance.
(a) The Company shall pay or reimburse any of the officers, board members or employees of the Company or any of its subsidiaries who administer the Plan for all expenses incurred by such Persons in, and shall indemnify and hold them harmless from all claims, liability and costs (including reasonable attorneys fees) arising out of, the good faith performance of their Plan functions.
(b) The Company may obtain and provide for any such Person, at the Companys expense, liability insurance against liabilities imposed on him by law.
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Section 6.3 Recordkeeping.
(a) The Administrator shall maintain suitable records of the Awards granted under this Plan and such other records as the Administrator deems appropriate in order to administer this Plan.
(b) The Administrator may appoint a secretary to keep the record of proceedings relating to the Plan, to transmit its decisions, instructions, consents or directions to any interested party, and to execute and file, on behalf of the Administrator, such reports or other documents as may be necessary or appropriate under applicable law to perform ministerial acts.
(c) The Administrator shall not be required to maintain any records or accounts which duplicate any records or accounts maintained by the Company.
Section 6.4 Service of Process. The Administrator is hereby designated as agent of the Plan for the service of legal process.
Section 6.5 Service in More than One Capacity. Any Person or group of Persons may serve in more than one capacity with respect to the Plan.
ARTICLE VII
CLAIMS PROCEDURE.
Section 7.1 Presentation of Claim. A Participant or his or her Beneficiary (being referred to below as a Claimant) may deliver to the Administrator a written claim for a determination with respect to the benefits payable to such Claimant pursuant to this Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.
Section 7.2 Notification of Decision. The Administrator shall consider a Claimants claim within a reasonable time, but no later than ninety (90) days after receiving the claim. If the Administrator determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial ninety (90) day period. In no event shall such extension exceed a period of sixty (60) days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Administrator expects to render the benefit determination. As soon as practicable after making its determination, the Administrator shall notify the Claimant in writing:
(a) that the Claimants requested determination has been made, and that the claim has been allowed in full; or
(b) that the Administrator has reached a conclusion contrary, in whole or in part, to the Claimants requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:
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(i) the specific reason(s) for the denial of the claim, or any part of it;
(ii) specific reference(s) to pertinent provisions of this Plan upon which such denial was based;
(iii) a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and
(iv) an explanation of the claim review procedure set forth in Section 7.3.
Section 7.3 Review of a Denied Claim. No later than sixty (60) days after receiving a notice from the Administrator that a claim has been denied, in whole or in part, a Claimant (or the Claimants duly authorized representative) may file with the Administrator a written request for a review of the denial of the claim. The Claimant (or the Claimants duly authorized representative):
(a) may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits;
(b) may submit written comments or other documents; and/or
(c) may request a hearing, which the Administrator, in its sole discretion, may grant.
Section 7.4 Decision on Review. The Administrator shall render its decision on review promptly, and no later than sixty (60) days after the Administrator receives the Claimants written request for a review of the denial of the claim. If the Administrator determines that special circumstances require an extension of time for completing its review, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial sixty (60) day period. In no event shall such extension exceed a period of sixty (60) days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Administrator expects to render its decision on the review. In rendering its decision, the Administrator shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The decision must be written in a manner calculated to be understood by the Claimant, and it must contain:
(a) specific reasons for the decision;
(b) specific reference(s) to the pertinent Plan provisions upon which the decision was based; and
(c) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of, all documents, records and other information relevant to the Claimants claim for benefits.
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ARTICLE VIII
DESIGNATION OF BENEFICIARY.
Section 8.1 Designation of Beneficiary. The Participants shall have the right to designate, revoke and redesignate one or more beneficiaries hereunder (each a Beneficiary) and to direct payment of the amount or distribution of the Distribution Amount to such Beneficiaries upon his or her death. Designation, revocation and redesignation of Beneficiaries shall be made on such form as shall be designated by the Administrator. If a Participant wishes to designate a Person other than his or her spouse as Beneficiary, the Administrator may require (as a condition precedent to the effectiveness of such designation) that such designation be consented to in writing by the spouse. Upon the receipt by the Administrator of a new, valid Beneficiary designation from a Participant, all Beneficiary designations previously delivered by the Participant and received by the Administrator before the Participants death shall be canceled. The Administrator shall be entitled to rely on the last Beneficiary designation delivered by a Participant. No designation, revocation or change in designation of a Beneficiary shall be valid or effective unless signed by the Participant (and by the Participants spouse, to the extent required pursuant to this Section) and until received in writing by the Administrator or its designated agent.
Section 8.2 Failure to Designate a Beneficiary. If a Participant fails to designate a Beneficiary as provided in Section 8.1 or, if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participants benefits under this Plan, then the Participants designated Beneficiary shall be deemed to the duly appointed and currently acting personal representative of the Participants estate (which shall include either the Participants probate estate or living trust). In any case where there is no such personal representative of the Participants estate duly appointed and acting in that capacity within ninety (90) days after the Participants death (or such extended period as the Administrator determines is reasonably necessary to allow such personal representative to be appointed, but not to exceed one hundred eighty (180) days after the Participants death), then the Participants Beneficiary shall be deemed to be the Person or Persons who can verify by court order that they are legally entitled to receive the benefits specified hereunder. If a Participant dies and his or her benefits become payable to the Participants Beneficiary, but the Beneficiarys death occurs before such payment can actually be made, payment shall be made to the Beneficiarys duly appointed and currently acting personal representative of the Beneficiarys estate (which shall include either the Beneficiarys probate estate or living trust). In any case where there is no such personal representative of the Beneficiarys estate duly appointed and acting in that capacity within ninety (90) days after the Beneficiarys death (or such extended period as the Administrator determines is reasonably necessary to allow such Personal representative to be appointed, but not to exceed one hundred eighty (180) days after the Beneficiarys death), then payment shall be made to the Person or Persons who can verify by court order that they are legally entitled to receive the benefits otherwise payable to the deceased Beneficiary.
Section 8.3 Right to Withhold Distribution. If the Administrator has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Administrator shall have the right, exercisable in its reasonable discretion, to withhold such payments until this matter is resolved to the Administrators reasonable satisfaction. The payment of benefits under this Plan to the Participants Beneficiary in accordance with this Section shall fully and completely discharge the Company and the Administrator from all further obligations under this Plan with respect to the Participant.
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ARTICLE IX
MISCELLANEOUS PROVISIONS
Section 9.1 Termination of the Plan.
(a) The Plan will terminate on March 25, 2028.
(b) Prior to the expiration of its term under Section 9.1(a) above, the Company may terminate the Plan:
(i) within twelve (12) months of a corporate dissolution taxed under Code Section 331 or with the approval of a bankruptcy court pursuant to 11 U.S.C. 503(b)(1)(A), as provided in Treasury Regulation §1.409A-3(j)(4)(ix)(A); or
(ii) within the thirty (30) days preceding or the twelve (12) months following a Change in Control as defined in Treasury Regulation §1.409A-3(i)(5), provided that all substantially similar arrangements are also terminated, as provided in Treasury Regulation §1.409A-3(j)(4)(ix)(B), provided that all vested amounts are distributed to Participants in connection with the termination; or
(iii) at any other time, provided that the termination does not occur proximate to a downturn in the financial health of the Company, if all arrangements that would be aggregated with the Plan under Treasury Regulation §1.409A-1(c) are terminated, and no payments other than payments of vested amounts that would be payable under the terms of the Plan if the termination had not occurred are made within twelve (12) months of the Plan termination, and all payments of vested amounts are made within twenty-four (24) months of the Plan termination, and no new arrangement that would be aggregated with the Plan under Treasury Regulation §1.409A-1(c) is adopted within three (3) years following the Plans termination, as provided in Treasury Regulation §1.409A-3(j)(4)(ix)(C).
Section 9.2 Amendment. The Administrator may at any time amend the Plan or any Award, in whole or in part, for any reason and whether benefits have accrued under the Plan or the Award that remain unpaid, provided that if the amendment would adversely affect the interests of a Participant, the Administrator may only amend the Plan or the Award if the Administrator obtains the prior, written consent of the Participant adversely affected by the amendment.
Section 9.3 Errors and Misstatements. In the event of any misstatement or omission of fact by a Participant to the Administrator or any clerical error resulting in payment of benefits in an incorrect amount, the Administrator shall promptly cause the amount of future payments to be corrected upon discovery of the facts and shall pay the applicable Participant or other Person entitled to payment under the Plan any underpayment in cash in a lump sum or shall either recoup any overpayment from future payments to the Participant or other Person entitled to payment under the Plan or proceed against the Participant or other Person entitled to payment under the Plan for recovery of any such overpayment.
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Section 9.4 Ordinary Income; Tax Withholding. Distribution Amounts under the Plan will be taxed as ordinary income to the Participant or his or her Beneficiary for the year in which the payment is actually made. The Company shall be entitled to deduct from any Distribution Amount due to a Participant or his or her Beneficiary all federal, state, provincial and local taxes or contributions of any kind required by law to be withheld from the Distribution Amount.
Section 9.5 No Right to Employment. Nothing contained in this Plan shall limit in any way the right of the Company to terminate a Participants employment or service at any time or be evidence of any agreement or understanding, express or implied, that the Company will employ a Participant in any particular position or at any particular rate of remuneration.
Section 9.6 Voluntary Participation. By accepting an Award, a Participant will be deemed to have represented and warranted to the Company and its affiliates that his or her participation in the grant of the Units and acceptance of such Units is voluntary and that he or she has not been induced to participate by expectation of engagement, appointment, employment, continued engagement, continued appointment or continued employment, as applicable.
Section 9.7 Governing Law; Severability. This Plan shall be construed, administered and governed in all respects under and by applicable federal laws and, where state law is applicable, the laws of the State of New Hampshire. If any provisions of this Plan shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective.
Section 9.8 Unsecured General Creditor. The Participants Units shall be a memorandum account on the books of the Company and the Units awarded shall be used solely as a device for the determination of the amounts to be distributed to the Participant in accordance with this Plan. The Participants and their Beneficiaries, heirs, successors, and assigns shall have no legal or equitable rights, claims, or interest in any specific property or assets of the Company. No assets of the Company shall be held under any trust, or held in any way as collateral security, for the fulfilling of the obligations of the Company under this Plan. Any and all of the Companys assets shall be, and remain, the general unpledged, unrestricted assets of the Company. The Companys payment obligations under the Plan shall constitute merely an unfunded and unsecured promise of the Company to pay benefits in the future to those Persons to whom the Company has a benefit obligation under this Plan (as determined in accordance with the terms hereof), and the respective rights of the Participant and Beneficiaries shall be no greater than those of the Companys unsecured general creditors.
Section 9.9 Payment on Behalf of Minors or Persons under Incapacity. In the event any amount becomes payable under the Plan to a minor or a Person who, in the sole judgment of the Administrator is considered by reason of physical or mental condition to be unable to give a valid receipt therefor, the Administrator may direct that such payment be made to any Person found by the Administrator, in its sole judgment, to have assumed the care of such minor or other Person. Any payment made pursuant to such determination shall constitute a full release and discharge of the Company, the Board, the Administrator, and their officers, directors and employees in respect of such payment.
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Section 9.10 References. Unless the context clearly indicates to the contrary, a reference to a statute, regulation or document shall be construed as referring to any subsequently enacted, adopted or executed successor statute, regulation or document.
Section 9.11 Compliance with Laws. This Plan and the payment of money under this Plan, are subject to compliance with all applicable federal, provincial and state laws, rules and regulations (including but not limited to state, provincial and federal securities laws) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith.
Section 9.12 Code Section 409A. This Plan is intended to comply with distribution rules set forth in Code Section 409A of the Code in order to avoid the imposition of any excise tax under Code Section 409A. If the Administrator determines that any provision of the Plan or an Award is ambiguous, but a reasonable interpretation of the provision would result in any benefit payable under the Plan being compliant with Code Section 409A, then the Company intends that interpretation to govern the administration of the Plan and payment of the benefit.
Section 9.13 Status of the Plan; Limited Interest. All Awards, credits and other adjustments to the Units awarded under the Plan shall be bookkeeping entries only and shall be utilized solely as a device for the measurement and determination of amounts to be paid under the Plan. No Units, credits or other adjustments under the Plan shall be interpreted as an indication that any benefits under the Plan are in any way funded. The grant of Units shall not be construed as giving the Participant any interest other than as provided in this Plan or the Participants Award Agreement. The Participant shall not be deemed to be a member of the Company and shall have no voting rights as a result of the grant of any Units. Participants have no right to receive actual equity in Symbotic, Symbotic Canada or the Company.
Section 9.14 Effect Upon Other Plans. Except to the extent provided herein, nothing in this Plan shall be construed to affect the provisions of any other plan maintained by the Company.
Section 9.15 Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of the Plan.
* * * * *
As adopted by the Company on March 26, 2018,
and amended and restated by the Company on June 29, 2018.
17
Exhibit 23.1
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS CONSENT
We consent to the inclusion in this Registration Statement of SVF Investment Corp. 3 on Amendment No. 1 to Form S-4 (File No. 333-262529) of our report dated March 23, 2022, which includes an explanatory paragraph as to SVF Investment Corp. 3s ability to continue as a going concern with respect to our audit of the financial statements of SVF Investment Corp. 3 as of December 31, 2021 and 2020 and for the year ended December 31, 2021 and the period from December 11, 2020 (inception) through December 31, 2020, which report appears in the Proxy Statement / Prospectus, which is part of this Registration Statement. We also consent to the reference to our Firm under the heading Experts in such Prospectus.
/s/ Marcum LLP
Marcum LLP
New York, NY
March 23, 2022
Exhibit 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We have issued our report dated February 4, 2022 with respect to the consolidated financial statements of Warehouse Technologies LLC contained in the Registration Statement and Prospectus. We consent to the use of the aforementioned report in the Registration Statement and Prospectus, and to the use of our name as it appears under the caption Experts.
/s/ GRANT THORNTON LLP
Boston, Massachusetts
March 23, 2022
Exhibit 99.1
YOUR VOTE IS IMPORTANT. PLEASE VOTE TODAY.
Vote by Internet - QUICK *** EASY
IMMEDIATE - 24 Hours a Day, 7 Days a Week or by Mail
SVF INVESTMENT CORP. 3 | Your Internet vote authorizes the named proxies to vote your shares in the same manner as if you marked, signed and returned your proxy card. Votes submitted electronically over the Internet must be received by 11:59 p.m., Eastern Time, on XXXX XX, 2022.
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INTERNET -
www.cstproxyvote.com
If you plan to attend the extraordinary general meeting via the Internet to vote your proxy, please have your proxy card available when you access the above website. Follow the prompts to vote your shares.
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Vote at the Meeting -
If you plan to attend the extraordinary general meeting via the virtual online program, you will need your 12 digit control number to vote electronically at the extraordinary general meeting. To attend: https://www.cstproxy.com/svfc/2022
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PLEASE DO NOT RETURN THE PROXY CARD IF YOU ARE VOTING ELECTRONICALLY. |
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MAIL - If you plan to submit your proxy for the extraordinary general meeting via mail, please mark, sign and date your proxy card and return it in the postage-paid envelope provided. | ||
Important Notice Regarding the Availability of Proxy Materials for the Meeting of Shareholders to be
held XXXX XX, 2022. The Notice and Proxy Statement are available at
https://www.cstproxy.com/svfc/2022
SVF INVESTMENT CORP. 3
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS.
The undersigned appoints XXXXX, XXXXX and each of them, as proxies, each with the power to appoint his/her substitute, and authorizes each of them to represent and to vote, as designated on the reverse hereof, all of the ordinary shares of SVF Investment Corp. 3 (SVF 3) held of record by the undersigned at the close of business on XXXXXX, XXXX at the Extraordinary General Meeting (EGM) of SVF 3 to be held on XXXXXX, XXXX, or at any adjournment thereof.
THE SHARES REPRESENTED BY THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDERS. IF YOU RETURN A SIGNED AND DATED PROXY BUT NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR PROPOSALS 1, 2, 3, 4, 5, 6, 7, 8, 9 AND 10. PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY.
PROXY THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR PROPOSALS 1 THROUGH 10. |
Please mark your votes like this |
Proposal No. 1 The Business Combination Proposal to consider and vote upon a proposal to approve, by ordinary resolution under Cayman Islands law, the Business Combination and adopt the Agreement and Plan of Merger, dated as of December 12, 2021 (as it may be amended, restated, supplemented or otherwise modified from time to time, the Merger Agreement), by and among SVF 3, Saturn Acquisition (DE) Corp., a wholly owned subsidiary of SVF 3 (Merger Sub), Warehouse Technologies LLC (Warehouse) and Symbotic Holdings LLC, a wholly owned subsidiary of Warehouse (Symbotic Holdings, and, together with Warehouse and its other subsidiaries, Symbotic), and the transactions contemplated thereby, pursuant to which, among other things, (a) SVF 3 will deregister as an exempted company in the Cayman Islands and continue and domesticate as a corporation in the State of Delaware, (b) Merger Sub will merge with and into Interim Symbotic (as defined in the proxy statement/prospectus) with Interim Symbotic surviving the merger as a subsidiary of the Post-Combination Company (the Merger, and, together with the Domestication (as defined in the proxy statement/prospectus) and the other transactions contemplated by the Merger Agreement, the Business Combination); | FOR ☐ |
AGAINST ☐ |
ABSTAIN ☐ | |||
FOR | AGAINST | ABSTAIN | ||||
Proposal No. 2 The Domestication Proposal to consider and vote upon a proposal to approve, by special resolution under Cayman Islands law, assuming the Business Combination Proposal is approved and adopted, the change of SVF 3s jurisdiction of incorporation from the Cayman Islands to the State of Delaware by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware; | ☐ | ☐ | ☐ | |||
FOR | AGAINST | ABSTAIN | ||||
Proposal No. 3 The Organizational Documents Proposal to consider and vote upon a proposal to approve and adopt, by special resolution under Cayman Islands law, assuming the Business Combination Proposal and the Domestication Proposal are approved and adopted, the proposed new certificate of incorporation (the Proposed Charter) and bylaws (the Proposed Bylaws, and, together with the Proposed Charter, the Proposed Organizational Documents) of SVF 3 following the consummation of the Business Combination (the Post-Combination Company or Symbotic Inc.), which, if approved, would take effect at the time of the Domestication; | ☐ | ☐ | ☐ | |||
Proposal No. 4 The Governance Proposals to consider and vote upon, by ordinary resolution under Cayman Islands law, on a non-binding advisory basis, separate proposals with respect to certain governance provisions in the Proposed Charter in order to give holders of SVF 3s ordinary shares the opportunity to present their separate views on important corporate governance procedures (the Governance Proposals); | ||||||
FOR | AGAINST | ABSTAIN | ||||
Governance Proposal 4A to increase the authorized share capital from 221,000,000 shares divided into 200,000,000 Class A ordinary shares, par value $0.0001 per share, 20,000,000 Class B ordinary shares, par value $0.0001 per share, and 1,000,000 preferred shares, par value $0.0001 per share, to authorized capital stock of 4,458,000,000 shares, consisting of (i) 3,000,000,000 shares of Class A common stock, par value $0.0001 per share, (ii) 1,000,000,000 shares of Class V-1 common stock, par value $0.0001 per share, (iii) 450,000,000 shares of Class V-3 common stock, par value $0.0001 per share, (iv) 8,000,000 shares of Class B common stock, par value $0.0001 per share and (v) 50,000,000 shares of preferred stock; | ☐ | ☐ | ☐ |
(Continued, and to be marked, dated and signed, on the other side)
Governance Proposal 4B to provide that the Proposed Charter may be amended by the affirmative vote of a majority of the outstanding shares of voting stock entitled to | FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
vote thereon, voting together as a single class, except that (a) Section 4.03(b) through Section 4.04 and (b) Article V through Article XIV of the Proposed Charter may be amended, altered, repealed or rescinded, in whole or in part, or any provision inconsistent therewith or herewith may be adopted, only by the affirmative vote of the holders of at least two-thirds of the total voting power of all the then-outstanding shares of stock of the Corporation entitled to vote thereon, voting together as a single class; |
Governance Proposal 4C to provide for (i) the election of directors by a plurality of the votes cast in respect of the shares present in person or represented by proxy at the | FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
meeting and entitled to vote on the election of directors, (ii) the filling of newly-created directorships or any vacancy on the board of directors by a majority vote of the remaining directors then in office, even if less than a quorum, or by a sole remaining director and (iii) the removal of directors with or without cause, but only by the affirmative vote of the holders of at least two-thirds of the voting power of all of the then-outstanding shares of voting stock entitled to vote at an election of directors, voting together as a single class; |
Governance Proposal 4D to elect not to be governed by Section 203 of the General Corporation Law of the State of Delaware; | FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
Governance Proposal 4E to provide that the Court of Chancery of the State of Delaware or, if such court does not have subject matter jurisdiction thereof, another state or federal court located within the State of Delaware, shall be the exclusive forum for certain actions and claims; | FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
Governance Proposal 4F to provide that (i) each holder of record of Class A common stock, Class B common stock and Class V-1 common stock shall be entitled to one vote per | FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
share on all matters which stockholders generally are entitled to vote, and (ii) each holder of record of Class V-3 common stock shall be entitled to three votes per share on all matters which stockholders generally are entitled to vote; |
Governance Proposal 4G to provide that (i) holders of Class A common stock and Class B common stock, as such, shall be entitled to the payment of dividends and other | FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
distributions of cash, stock or property on the Class A common stock and Class B common stock, respectively, when, as and if declared by the board of directors in accordance with law and (ii) except with respect to certain stock dividends, dividends of cash or property may not be declared or paid on Class V-1 common stock or Class V-3 common stock; |
Governance Proposal 4H to eliminate various provisions in Articles applicable only to blank check companies, including the provisions requiring that SVF 3 have net |
FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
tangible assets of at least $5,000,001 immediately prior to, or upon such consummation of, a business combination; |
Proposal No. 5 The Director Election Proposal to consider and vote upon a proposal to elect, by ordinary resolution under Cayman Islands law, seven directors to serve on the Board of Directors of the Post-Combination Company until the 2023 annual meeting of stockholders or until their respective successors are duly elected and qualified, or until their earlier resignation, removal or death; |
FOR
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ABSTAIN
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Richard B. Cohen | ☐ |
☐ |
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Rollin Ford | ☐ |
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Charles Kane | ☐ |
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Todd Krasnow | ☐ |
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Vikas J. Parekh | ☐ |
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Merline Saintil | ☐ |
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Michael Rhodin | ☐ |
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Proposal No. 6 The Merger Issuance Proposal to consider and vote upon a proposal to approve, by ordinary resolution under Cayman Islands law, for purposes of |
FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
complying with applicable listing rules of the Nasdaq Capital Market (NASDAQ), the issuance of shares of common stock pursuant to the Business Combination; |
Proposal No. 7 The Subscription Agreements Proposal to consider and vote upon a proposal to approve, by ordinary resolution under Cayman Islands |
FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
law, for purposes of complying with applicable listing rules of NASDAQ, the issuance of shares of Class A common stock pursuant to the Subscription Agreements (as defined in the proxy statement/prospectus); |
Proposal No. 8 The Incentive Compensation Plan Proposal to consider and vote upon a proposal to approve and adopt, by ordinary resolution under Cayman Islands law, the Incentive Compensation Plan (as defined in the proxy statement/prospectus); | FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
Proposal No. 9 The ESPP Proposal to consider and vote upon a proposal to approve and adopt, by ordinary resolution under Cayman Islands law, the ESPP (as defined in the proxy statement/prospectus); | FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
Proposal No. 10 The Adjournment Proposal to consider and vote upon a proposal to approve, by ordinary resolution under Cayman Islands law, the adjournment of the Extraordinary General Meeting to a later date or dates, | FOR
☐ |
AGAINST
☐ |
ABSTAIN
☐ |
if necessary, to permit further solicitation and vote of proxies (i) to ensure that any required supplement or amendment to the proxy statement or prospectus is provided to SVF 3s shareholders, and/or (ii) in the event that there are insufficient votes for, or otherwise in connection with, the approval of the Business Combination Proposal, the Domestication Proposal, the Organizational Documents Proposal, the Merger Issuance Proposal, the Subscription Agreements Proposal, the Incentive Compensation Plan Proposal or the ESPP Proposal, or we determine that one or more of the closing conditions to Merger Agreement is not satisfied or waived.
CONTROL NUMBER |
Signature Signature, if held jointly Date , 2022. | ||||
Note: Please sign exactly as name appears hereon. When shares are held by joint owners, both should sign. When signing as attorney, executor, administrator, trustee, guardian, or corporate officer, please give title as such. |