[DEFR14A] ContextLogic Inc. Class A Common Stock Revised Proxy Statement
- None.
- None.
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Filed by the Registrant | ☒ | ||
Filed by a Party other than the Registrant | ☐ | ||
☐ | Preliminary Proxy Statement | ||
☐ | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | ||
☒ | Definitive Proxy Statement | ||
☐ | Definitive Additional Materials | ||
☐ | Soliciting Material Pursuant to Section 240.14a-12 | ||
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant) |
☒ | No fee required. | ||
☐ | Fee paid previously with preliminary materials. | ||
☐ | Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11. | ||
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(1) | to approve an agreement and plan of reorganization (the “Reorganization Agreement”) to effect a transaction intended to help protect the long-term value to the Company of our substantial net operating loss carryforwards (“NOLs”) in which ContextLogic will become a wholly owned subsidiary of Easter Parent, Inc., a newly formed holding company (“Holdings”), immediately followed by a conversion of ContextLogic into a Delaware limited liability company, and each outstanding share of class A common stock of ContextLogic (“ContextLogic common stock”) will be exchanged for one share of common stock of Holdings and each option to purchase shares of common stock of ContextLogic will be assumed by Holdings and become exercisable for an equivalent number of shares of Holdings common stock, each restricted stock unit to be settled in shares of ContextLogic common stock will assumed by Holdings and remain subject to the same terms and conditions as were applicable to such restricted stock unit award, but will be converted into an award with respect to the same number of shares of Holdings common stock, and each share of common stock of Holdings will be subject to certain transfer restrictions that would prohibit transfers having the effect of increasing the ownership of Holdings stock by (i) any person from less than 4.9% to 4.9% or more or (ii) any person owning or deemed to own 4.9% or more of Holdings’ stock (together, the “Reorganization” and the proposal, the “Reorganization Proposal”); |
(2) | a proposal to elect two Class III directors, Ted Goldthorpe and Jennifer Chou, to serve on our Board of Directors until the 2028 Annual Meeting of Stockholders or until their successors are duly elected and qualified (the “Election Proposal”); |
(3) | a proposal to ratify the appointment of BPM LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2025 (the “Ratification Proposal”); |
(4) | a proposal to approve, on an advisory basis, our named executive officer compensation for the year ended December 31, 2024, as disclosed herein (the “Compensation Proposal”); |
(5) | a proposal to approve the adjournment of the Annual Meeting, if necessary, to solicit additional proxies if there are insufficient votes at the time of the Annual Meeting to approve the Reorganization Proposal (the “Adjournment Proposal”); and |
(6) | to conduct any other business properly brought before the meeting. |
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ContextLogic Inc. 2648 International Blvd., Ste 115 Oakland, CA 94601 | |||
(1) | To approve an agreement and plan of reorganization (the “Reorganization Agreement”) to effect a transaction intended to help protect the long-term value to our company of our substantial net operating loss carryforwards, which we refer to herein as “NOLs,” in which ContextLogic will become a wholly owned subsidiary of Easter Parent, Inc., a newly formed holding company (“Holdings”), immediately followed by a conversion of ContextLogic into a Delaware limited liability company, and each outstanding share of class A common stock of ContextLogic (“ContextLogic common stock”) will be exchanged for one share of common stock of Holdings. Any options you hold to purchase ContextLogic common stock will be assumed by Holdings and become exercisable for the equivalent number of shares of common stock of Holdings, each restricted stock unit to be settled in shares of ContextLogic common stock will assumed by Holdings and remain subject to the same terms and conditions as were applicable to such restricted stock unit award, but will be converted into an award with respect to the same number of shares of Holdings common stock, and each share of common stock of Holdings will be subject to certain transfer restrictions that would prohibit transfers having the effect of increasing the ownership of Holdings stock by (i) any person from less than 4.9% to 4.9% or more or (ii) any person owning or deemed to own 4.9% or more of Holdings’ stock (together, the “Reorganization,” and the proposal, the “Reorganization Proposal”); |
(2) | To elect two Class III directors, Ted Goldthorpe and Jennifer Chou, to serve on our Board of Directors until the 2028 Annual Meeting of Stockholders or until their successors are duly elected and qualified (the “Election Proposal”); |
(3) | To ratify the appointment of BPM LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2025 (the “Ratification Proposal”); |
(4) | To approve, on an advisory basis, our named executive officer compensation for the year ended December 31, 2024, as disclosed herein (the “Compensation Proposal”); |
(5) | To approve, if necessary, the adjournment of the Annual Meeting to solicit additional proxies in favor of the Reorganization Proposal (the “Adjournment Proposal”); and |
(6) | To conduct any other business properly brought before the meeting. |
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ContextLogic Inc. 2648 International Blvd., Ste 115 Oakland, CA 94601 | |||
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ABOUT THIS PROXY STATEMENT/PROSPECTUS | i | ||
ADDITIONAL INFORMATION | i | ||
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS | 1 | ||
QUESTIONS AND ANSWERS REGARDING THE ANNUAL MEETING AND PROPOSALS | 3 | ||
SUMMARY | 16 | ||
RISK FACTORS | 26 | ||
INFORMATION ABOUT THE ANNUAL MEETING AND VOTING | 30 | ||
PROPOSAL 1—REORGANIZATION PROPOSAL | 34 | ||
PROPOSAL 2—ELECTION PROPOSAL | 54 | ||
PROPOSAL 3—RATIFICATION PROPOSAL | 56 | ||
PROPOSAL 4—COMPENSATION PROPOSAL | 58 | ||
PROPOSAL 5—ADJOURNMENT PROPOSAL | 59 | ||
INFORMATION ABOUT CONTEXTLOGIC AND HOLDINGS | 60 | ||
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | 61 | ||
DESCRIPTION OF HOLDINGS’ SECURITIES | 62 | ||
COMPARISON OF STOCKHOLDER RIGHTS BEFORE AND AFTER THE REORGANIZATION | 63 | ||
EXPERTS | 72 | ||
LEGAL MATTERS | 72 | ||
OTHER BUSINESS | 72 | ||
WHERE YOU CAN FIND ADDITIONAL INFORMATION | 73 | ||
ANNEX A – AGREEMENT AND PLAN OF REORGANIZATION | A-1 | ||
ANNEX B – FORM OF SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF HOLDINGS | B-1 | ||
ANNEX C – FORM OF AMENDED AND RESTATED BYLAWS OF HOLDINGS | C-1 | ||
ANNEX D – AMENDED AND RESTATED AGREEMENT AND PLAN OF REORGANIZATION | D-1 | ||
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• | the risk that because the ContextLogic common stock is quoted on the OTC Markets, your ability to sell your shares in the secondary trading market may be limited; |
• | the risk that we may not obtain the expected benefits of the Reorganization; |
• | the risk that certain conditions of the Reorganization may not be satisfied, or completed on a timely basis, if at all; |
• | the risk that the OTC Markets may not list the common stock of Holdings on its markets; |
• | the risk that the imposition of transfer restrictions may cause the market price of Holdings’ common stock to decline; |
• | the risk that if the Reorganization does not qualify as a nontaxable transaction in whole or in part, the ContextLogic stock holders may be required to pay substantial U.S. federal income taxes as a result of the Reorganization; |
• | the risk that the transfer restrictions may impede or discourage efforts by a third party to acquire Holdings; |
• | the possibility that future legislation may result in Holdings being unable to realize the tax benefits of the NOLs; |
• | the possibility that Holdings may not be able to make use of the existing tax benefits of the NOLs because Holdings may not generate taxable income; |
• | the possibility that the IRS could challenge the amount of the NOLs or claim that the Company or Holdings experienced an ownership change, which could reduce the amount of NOLs that Holdings can use; and |
• | the risk that the Company’s business could be adversely affected if the Reorganization is not approved. |
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1. | approve the agreement and plan of reorganization (the “Reorganization Agreement”) pursuant to which ContextLogic would become a wholly owned subsidiary of Easter Parent, Inc., a newly formed Delaware corporation, immediately followed by a conversion of ContextLogic into a Delaware limited liability company, and each outstanding share of ContextLogic common stock would be exchanged for one share of common stock of Holdings, options to purchase shares of ContextLogic common stock would be assumed by Holdings and become exercisable for the equivalent number of shares of common stock of Holdings, restricted stock units to be settled in shares of ContextLogic common stock will assumed by Holdings and remain subject to the same terms and conditions as were applicable to such restricted stock unit awards, but will be converted into awards with respect to the same number of shares of Holdings stock, and each share of common stock of Holdings will be subject to certain transfer restrictions that would prohibit transfers having the effect of increasing the ownership of Holdings common stock by (i) any person from less than 4.9% to 4.9% or more or (ii) any person owning or deemed to own 4.9% or more of Holdings stock (the “Reorganization” and the proposal, the “Reorganization Proposal”); |
2. | approve the election of our Class III directors to serve until the 2028 Annual Meeting of Stockholders, who include Ted Goldthorpe and Jennifer Chou (the “Election Proposal”); |
3. | approve the ratification of the appointment of BPM LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2025 (the “Ratification Proposal”); |
4. | approve, on an advisory basis, our named executive officer compensation for the year ended December 31, 2024, as disclosed herein (the “Compensation Proposal”); and |
5. | approve the adjournment of the Annual Meeting to a later date, if necessary, to permit further solicitation of proxies because there are not sufficient votes to approve the Reorganization Proposal (the “Adjournment Proposal”). |
• | Reorganization Proposal: Approval of the Reorganization Proposal requires the affirmative vote of a majority of the issued and outstanding shares of ContextLogic common stock entitled to vote thereon. Abstentions and broker non-votes will be counted as present for purposes of determining the presence of a quorum, and will have the same effect as a vote “AGAINST” this proposal. |
• | Election Proposal: Directors are elected by a plurality of the votes cast with respect to such director. This means that, with respect to the Election Proposal, nominees receiving the most “For” votes will be elected. Abstentions will be counted as present for purposes of determining the presence of a quorum, but will not be considered as votes cast for or against this proposal, and will therefore have no effect on the outcome of the vote. Broker non-votes will be counted as present for purposes of determining the presence of a quorum, but are not considered votes cast on this proposal and will not have any effect on the election of directors, and therefore, have no effect on the outcome of the vote. |
• | Ratification Proposal: To be approved, the Ratification Proposal must receive more “For” votes than “Against” votes cast at the Annual Meeting. Abstentions will be counted as present for purposes of determining the presence of a quorum, but will not be considered as votes cast for or against this |
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• | Compensation Proposal: To be approved, the Compensation Proposal must receive more “For” votes than “Against” votes cast at the Annual Meeting. Abstentions will be counted as present for purposes of determining the presence of a quorum, but will not be considered as votes cast for or against this proposal, and will therefore have no effect on the outcome of the vote. Broker non-votes will be counted towards a quorum, but are not counted for any purpose in determining whether this matter has been approved, and therefore, have no effect on the outcome of the vote. However, the advisory approval of our named executive officer compensation for the year ended December 31, 2024 is advisory and non-binding in nature and cannot overrule any decisions made by our Board of Directors. |
• | Adjournment Proposal: To be approved, the Adjournment Proposal must receive more “For” votes than “Against” votes cast at the Annual Meeting. Abstentions will be counted as present for purposes of determining the presence of a quorum, but will not be considered as votes cast for or against this proposal, and will therefore have no effect on the outcome of the vote. Broker non-votes will be counted as present for purposes of determining the presence of a quorum, but are not counted for any purpose in determining whether this matter has been approved, and therefore, have no effect on the outcome of the vote. |
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• | You may vote via the Internet at www.proxyvote.com by following the instructions for Internet voting on the proxy card mailed to you. Internet voting is available 24 hours a day and will be accessible until 11:59 p.m. Eastern Time on July 10, 2025. Easy-to-follow instructions are available to allow you to vote your shares and confirm that your instructions have been properly recorded. |
• | You may vote by telephone by dialing 800-690-6903 and following the instructions for voting by phone on the proxy card mailed to you. Telephone voting is available 24 hours a day and will be accessible until 11:59 p.m. Eastern Time on July 10, 2025. Easy-to-follow voice prompts are available to allow you to vote your shares and confirm that your instructions have been properly recorded. |
• | You may vote by mail by completing and mailing in the paper proxy card you received. The method you use to vote will not limit your right to vote at the Annual Meeting if you decide to virtually attend the Annual Meeting. |
• | If you wish to vote electronically at the meeting, go to www.virtualshareholdermeeting.com/LOGC2025 using your unique control number included in the proxy materials mailed to you. |
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• | You may submit another properly completed proxy card with a later date. |
• | You may send a written notice indicating that you are revoking your proxy to the Secretary of the Company at 2648 International Blvd., Ste 115, Oakland, CA 94601. |
• | You may virtually attend the Annual Meeting and vote electronically by going to www.virtualshareholdermeeting.com/LOGC2025 and using your unique control number that was included in the proxy materials that you received in the mail. Simply attending the meeting will not, by itself, revoke your proxy. |
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• | each share of ContextLogic common stock issued and outstanding immediately prior to the merger will be converted upon the effectiveness of the merger into the right to receive one share of common stock of Holdings; |
• | following the consummation of the merger, there will not be any shares of Holdings preferred stock outstanding; |
• | each option to purchase a share of common stock of ContextLogic outstanding immediately prior to the consummation of the merger will be assumed by Holdings upon the consummation of the merger and will automatically become exercisable for a share of common stock of Holdings; |
• | each restricted stock unit to be settled in shares of ContextLogic common stock outstanding immediately prior to the merger will be assumed by Holdings upon the consummation of the merger and will remain subject to the same terms and conditions as were applicable to such restricted stock unit award, but will be converted into an award with respect to the same number of shares of Holdings common stock; |
• | each share of common stock of Merger Sub held by Holdings immediately prior to the merger will be automatically converted upon the consummation of the merger into one share of common stock of ContextLogic; |
• | each share of common stock of Holdings held by ContextLogic immediately prior to the merger will be surrendered to Holdings for cancellation and will be cancelled simultaneously with the effectiveness of the merger; and |
• | upon the consummation of the merger, Holdings will assume and continue the Company’s obligations under the 2010 Equity Incentive Plan and continue the Company’s 2020 Equity Incentive Plan and the 2022 Inducement Plan, as amended. |
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• | receipt by ContextLogic of any consents, approvals or authorizations that ContextLogic deems necessary or appropriate; |
• | adoption of the Reorganization Agreement by the sole stockholder of Merger Sub; |
• | approval of the Reorganization by holders of a majority of the issued and outstanding common stock of ContextLogic as of May 19, 2025; |
• | appraisal rights shall have been demanded in respect of no more than 1% of the issued and outstanding shares held by holders or beneficial owners of ContextLogic common stock as of immediately prior to the closing of the polls on the vote of stockholders to adopt the Reorganization Agreement; and |
• | termination of the Tax Benefits Preservation Plan. |
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• | Proposal No. 1 (Reorganization Proposal): The proposal to adopt the Reorganization Agreement and the transactions contemplated thereunder. To be approved, the Reorganization Proposal must receive the affirmative vote of a majority of the issued and outstanding shares of ContextLogic common stock entitled to vote. Abstentions and broker non-votes will be counted as present for purposes of determining the presence of a quorum, and will have the same effect as “AGAINST” the Reorganization Proposal. |
• | Proposal No. 2 (Election Proposal): The proposal to elect our Class III directors to serve until the 2028 Annual Meeting of Stockholders, who include Ted Goldthorpe and Jennifer Chou. Directors are elected by a plurality of the votes cast with respect to such director. This means that, with respect to the Election Proposal, nominees receiving the most “For” votes will be elected. Abstentions will be counted as present for purposes of determining the presence of a quorum, but will not be considered as votes cast for or against this proposal, and will therefore have no effect on the outcome of the vote. |
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• | Proposal No. 3 (Ratification Proposal): The proposal to ratify the appointment of BPM LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2025. To be approved, the Ratification Proposal must receive more “For” votes than “Against” votes cast at the Annual Meeting. Abstentions will be counted as present for purposes of determining the presence of a quorum, but will not be considered as votes cast for or against this proposal, and will therefore have no effect on the outcome of the vote. Broker non-votes will be counted as present for purposes of determining the presence of a quorum, but are not counted for any purpose in determining whether this matter has been approved, and therefore, have no effect on the outcome of the vote. |
• | Proposal No. 4 (Compensation Proposal): The proposal to approve, on an advisory basis, our named executive officer compensation for the year ended December 31, 2024, as disclosed herein. To be approved, the Compensation Proposal must receive more “For” votes than “Against” votes cast at the Annual Meeting. Abstentions will be counted as present for purposes of determining the presence of a quorum, but will not be considered as votes cast for or against this proposal, and will therefore have no effect on the outcome of the vote. Broker non-votes will be counted towards a quorum, but are not counted for any purpose in determining whether this matter has been approved, and therefore, have no effect on the outcome of the vote. However, the advisory approval of our named executive officer compensation for the year ended December 31, 2024 is advisory and non-binding in nature and cannot overrule any decisions made by our Board of Directors. |
• | Proposal No. 5 (Adjournment Proposal): The proposal to approve the adjournment of the annual meeting, if necessary, to permit further solicitation of proxies because there are not sufficient votes to approve the Reorganization Proposal. To be approved, the Adjournment Proposal must receive more “For” votes than “Against” votes. Abstentions will be counted as present for purposes of determining the presence of a quorum, but will not be considered as votes cast for or against this proposal, and will therefore have no effect on the outcome of the vote. Broker non-votes will be counted towards a quorum, but are not counted for any purpose in determining whether this matter has been approved, and therefore, have no effect on the outcome of the vote. |
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• | You may vote via the Internet at www.proxyvote.com by following the instructions for Internet voting on the proxy card mailed to you. Internet voting is available 24 hours a day and will be accessible until 11:59 p.m. Eastern Time on July 10, 2025. Easy-to-follow instructions are available to allow you to vote your shares and confirm that your instructions have been properly recorded. |
• | You may vote by telephone by dialing 800-690-6903 and following the instructions for voting by phone on the proxy card mailed to you. Telephone voting is available 24 hours a day and will be accessible until 11:59 p.m. Eastern Time on July 10, 2025. Easy-to-follow voice prompts are available to allow you to vote your shares and confirm that your instructions have been properly recorded. |
• | You may vote by mail by completing and mailing in the paper proxy card you received. The method you use to vote will not limit your right to vote at the Annual Meeting if you decide to virtually attend the Annual Meeting. |
• | If you wish to vote electronically at the meeting, go to www.virtualshareholdermeeting.com/LOGC2025 using your unique control number included in the proxy materials mailed to you. |
• | The Reorganization Proposal; |
• | The Election Proposal; |
• | The Ratification Proposal; |
• | The Compensation Proposal; and |
• | The Adjournment Proposal. |
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• | You may submit another properly completed proxy card with a later date. |
• | You may send a written notice indicating that you are revoking your proxy to the Secretary of the Company at 2648 International Blvd., Ste 115, Oakland, CA 94601. |
• | You may virtually attend the Annual Meeting and vote electronically by going to www.virtualshareholdermeeting.com/LOGC2025 and using your unique control number that was included in the proxy materials that you received in the mail. Simply attending the meeting will not, by itself, revoke your proxy. |
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• | Merger Sub will be merged with and into ContextLogic. ContextLogic will survive and the separate existence of Merger Sub will cease; |
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• | ContextLogic will become a wholly owned subsidiary of Holdings; |
• | ContextLogic, as the surviving corporation, shall succeed (to the extent permitted and/or provided by applicable law) to all of the rights, assets, liabilities and obligations of Merger Sub; |
• | after the merger, ContextLogic will be converted into a Delaware limited liability company and continue as a wholly owned subsidiary of Holdings; |
• | the corporate existence of ContextLogic will continue unaffected and unimpaired by the Reorganization, except that, upon the consummation of the Reorganization, all of the outstanding shares of common stock of ContextLogic will be owned by Holdings and, after the merger, will be converted to limited liability company interests pursuant to ContextLogic’s conversion into a Delaware limited liability company; |
• | Holdings LLC will remain a subsidiary of the Company following consummation of the Reorganization; and |
• | Holdings will be renamed to “ContextLogic Holdings Inc.” following the Reorganization. |
• | each share of ContextLogic common stock issued and outstanding immediately prior to the merger will be converted upon the effectiveness of the merger into the right to receive one share of common stock of Holdings; |
• | following the consummation of the merger, there will not be any shares of Holdings preferred stock outstanding; |
• | each option to purchase a share of common stock of ContextLogic outstanding immediately prior to the consummation of the merger will be assumed by Holdings upon the consummation of the merger and will automatically become exercisable for a share of common stock of Holdings; |
• | each restricted stock unit to be settled in shares of ContextLogic common stock outstanding immediately prior to the merger will be assumed by Holdings upon the consummation of the merger and will remain subject to the same terms and conditions as were applicable to such restricted stock unit award, but will be converted into an award with respect to the same number of shares of Holdings common stock; |
• | each share of common stock of Merger Sub held by Holdings immediately prior to the merger will be automatically converted upon the consummation of the merger into one share of common stock of ContextLogic; |
• | each share of common stock of Holdings held by ContextLogic immediately prior to the merger will be surrendered to Holdings for cancellation and will be cancelled simultaneously with the effectiveness of the merger; and |
• | upon the consummation of the merger, Holdings will assume and continue the Company’s obligations under the 2010 Equity Incentive Plan and continue the Company’s 2020 Equity Incentive Plan and the 2022 Inducement Plan, as amended. |
• | the restated certificate of incorporation of ContextLogic as in effect immediately prior to the merger will be amended and restated in connection with the Reorganization to read as set forth on Annex A to the Reorganization Agreement until the conversion of ContextLogic into a limited liability company. Upon the effectiveness of the conversion of ContextLogic into a limited liability company, the internal affairs of ContextLogic will be governed by its certificate of formation and limited liability company agreement as set forth below; |
• | the second amended and restated certificate of incorporation of Holdings, which form is attached hereto as Annex B, will be substantially similar to the current restated certificate of incorporation of ContextLogic, except that the second amended and restated certificate of incorporation of Holdings will include the transfer restrictions; and |
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• | the amended and restated bylaws of Holdings, which form is attached hereto as Annex C, will be substantially similar to the current bylaws of ContextLogic. |
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• | ContextLogic’s restated certificate of incorporation does not contain the transfer restrictions that are included in Article XIV of the second amended and restated certificate of incorporation of Holdings; and |
• | Article IV of ContextLogic’s restated certificate of incorporation provides for blank-check preferred stock, and its Certificate of Designation provides for ContextLogic Series A Preferred Stock of which there are no shares outstanding and Article IV of the second amended and restated certificate of incorporation of Holdings provides for blank-check preferred stock. Pursuant to the terms of the Reorganization Agreement, the Certificate of Designation and the ContextLogic Series A Preferred Stock will be eliminated. |
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• | receipt by ContextLogic of any consents, approvals or authorizations that ContextLogic deems necessary or appropriate; |
• | approval of the Reorganization by holders of a majority of the issued and outstanding common stock of ContextLogic as of May 19, 2025, voting together as a single class; |
• | adoption of the Reorganization Agreement by the sole stockholder of Merger Sub; |
• | appraisal rights shall have been demanded in respect of no more than 1% of the issued and outstanding shares held by holders or beneficial owners of ContextLogic common stock as of immediately prior to the closing of the polls on the vote of stockholders to adopt the Reorganization Agreement; and |
• | termination of the Tax Benefits Preservation Plan. |
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1. | increase the direct or indirect ownership of Holdings stock by any person (or public group) from less than 4.9% to 4.9% or more of the stock of Holdings; or |
2. | increase the percentage of Holdings stock owned directly or indirectly by any person (or public group) owning or deemed to own 4.9% or more of the stock of Holdings. |
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Class | Director | Term Expiration | ||||
I | Rishi Bajaj | 2026 Annual Meeting of Stockholders | ||||
I | Mark Ward | 2026 Annual Meeting of Stockholders | ||||
II | Michael Farlekas | 2027 Annual Meeting of Stockholders | ||||
II | Marshall Heinberg | 2027 Annual Meeting of Stockholders | ||||
III | Ted Goldthorpe | 2025 Annual Meeting of Stockholders | ||||
III | Jennifer Chou | 2025 Annual Meeting of Stockholders | ||||
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Name | Age | Position(s) with ContextLogic Inc. | ||||
Ted Goldthorpe | 48 | Director Chairman Compensation Committee Member Nominating and Corporate Governance Committee Member | ||||
Jennifer Chou | 45 | Director Audit Committee Chair Compensation Committee Member | ||||
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• | each stockholder known by us to be the beneficial owner of more than 5% of our outstanding shares of common stock; |
• | each of our directors and director nominees; |
• | each of our named executive officers; and |
• | all of our directors and executive officers as a group. |
Name of Beneficial Owner | Shares Beneficially Owned | Ownership % | ||||
>5% Stockholders: | ||||||
None | ||||||
Directors and Named Executive Officers: | ||||||
Rishi Bajaj(1) | 51,134 | * | ||||
Michael Farlekas(2) | 25,684 | * | ||||
Marshall Heinberg(3) | 25,684 | * | ||||
Ted Goldthorpe | — | — | ||||
Mark Ward | — | — | ||||
Jennifer Chou(4) | — | — | ||||
Jun Yan(5) | 364,379 | 1.3 | ||||
Joanna Forster | — | — | ||||
Ying Liu | 141,091 | * | ||||
Brett Just(6) | 29,349 | * | ||||
All current executive officers and directors as a group (7 persons) | 131,851 | * |
* | Less than one percent. |
(1) | Mr. Bajaj holds 51,134 restricted stock units which have vested as of May 19, 2025. |
(2) | Mr. Farlekas holds 25,684 restricted stock units which have vested as of May 19, 2025 and 85,576 restricted stock units which are subject to vesting conditions not expected to occur within 60 days of May 19, 2025. |
(3) | Mr. Heinberg holds 25,684 restricted stock units which have vested as of May 19, 2025 and 109,122 restricted stock units which are subject to vesting conditions not expected to occur within 60 days of May 19, 2025. |
(4) | Ms. Chou holds 56,701 restricted stock units which are subject to vesting conditions not expected to occur within 60 days of May 19, 2025. |
(5) | Mr. Yan holds 364,379 shares of common stock issuable upon exercise of outstanding stock options. |
(6) | Mr. Just holds 29,349 restricted stock units which have vested as of May 19, 2025. |
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• | 3,000,000,000 shares of common stock, $0.0001 par value per share of which 26,682,233 shares will be issued and outstanding on the effective date of the Reorganization; and |
• | 100,000,000 shares of preferred stock, $0.0001 par value per share of which no shares will be issued and outstanding on the effective date of the Reorganization. |
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Provision | ContextLogic | Holdings | ||||
Authorized Capital Stock | The authorized capital stock of ContextLogic consists of 3,000,000,000 shares of class A common stock, par value $0.0001 per share and 100,000,000 shares of preferred stock, par value $0.0001 per share. | The authorized capital stock of Holdings consists of 3,000,000,000 shares of common stock, par value $0.0001 per share and 100,000,000 shares of preferred stock, par value $0.0001 per share. | ||||
Number of Directors | The restated certificate of incorporation provides that the number of directors shall be fixed from time to time by resolution adopted by a majority of the total number of authorized directors whether or not there exist any vacancies in previously authorized directorships (the “Whole Board”). | The second amended and restated certificate of incorporation provides that the number of directors shall be fixed from time to time by resolution adopted by a majority of the Whole Board. | ||||
Stockholder Nominations and Proposals | The amended and restated bylaws require advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before any meeting of the stockholders. | The amended and restated bylaws require advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before any meeting of the stockholders. For | ||||
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Provision | ContextLogic | Holdings | ||||
For nominations or other business to be properly brought before an annual meeting by a stockholder when no solicitation notice has been timely provided by the record stockholder, then the record stockholder must deliver notice to the secretary at the principal office of ContextLogic not later than 5:00 p.m. Pacific Time on the ninetieth (90th) day nor earlier than 5:00 p.m. Pacific Time on the one hundred and twentieth (120th) day prior to the first anniversary of the preceding year’s annual meeting provided, however, that in the event that the date of the annual meeting is more than thirty (30) days before or more than seventy (70) days after such anniversary date, notice by the record stockholder to be timely must be so delivered (A) no earlier than 5:00 p.m. Pacific Time on the one hundred and twentieth (120th) day prior to such annual meeting and (B) no later than 5:00 p.m. Pacific Time on the later of the ninetieth (90th) day prior to such annual meeting or 5:00 p.m. Pacific Time on the tenth (10th) day following the day on which public announcement of the date of such meeting is first made by the Corporation. | nominations or other business to be properly brought before an annual meeting by a stockholder when no solicitation notice has been timely provided by the record stockholder, then the record stockholder must deliver notice to the secretary at the principal office of Holdings not later than 5:00 p.m. Pacific Time on the ninetieth (90th) day nor earlier than 5:00 p.m. Pacific Time on the one hundred and twentieth (120th) day prior to the first anniversary of the preceding year’s annual meeting provided, however, that in the event that the date of the annual meeting is more than thirty (30) days before or more than seventy (70) days after such anniversary date, notice by the record stockholder to be timely must be so delivered (A) no earlier than 5:00 p.m. Pacific Time on the one hundred and twentieth (120th) day prior to such annual meeting and (B) no later than 5:00 p.m. Pacific Time on the later of the ninetieth (90th) day prior to such annual meeting or 5:00 p.m. Pacific Time on the tenth (10th) day following the day on which public announcement of the date of such meeting is first made by the Corporation. | |||||
Classified Board of Directors | ContextLogic has a classified Board of Directors. The restated certificate of incorporation provides that the directors shall be elected at the annual meeting of stockholders, except in the case of vacancies, and each director elected shall hold office until a successor has been duly elected and qualified or until his or her death, resignation or removal, whichever shall occur first. | Holdings has a classified Board of Directors. The second amended and restated certificate of incorporation provides that the directors shall be elected at the annual meeting of stockholders, except in the case of vacancies, and each director elected shall hold office until a successor has been duly elected and qualified or until his or her death, resignation or removal, whichever shall occur first. | ||||
Removal of Directors | The restated certificate of incorporation provides that no director may be removed from the Board of Directors except for cause and only by the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of the then-outstanding shares of capital stock of the Corporation entitled to vote thereon, voting together as a single class. | The second amended and restated certificate of incorporation provides that no director may be removed from the Board of Directors except for cause and only by the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of the then-outstanding shares of capital stock of the Corporation entitled to vote thereon, voting together as a single class. | ||||
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Annual Meeting of the Stockholders | The amended and restated bylaws provide that annual meetings of the stockholders may be held for the election of directors at such date and time as the Board of Directors of ContextLogic shall each year fix. | The amended and restated bylaws provide that annual meetings of the stockholders may be held for the election of directors at such date and time as the Board of Directors of Holdings shall each year fix. | ||||
Vacancies | The restated certificate of incorporation provides that any vacancy occurring in the Board of Directors for any cause, and any newly created directorship resulting from any increase in the authorized number of directors, shall be filled only by the affirmative vote of a majority of the directors then in office, even if less than a quorum, or by a sole remaining director, and shall not be filled by the stockholders. Any director elected in accordance with the preceding sentence shall hold office for a term expiring at the annual meeting of stockholders at which the term of office of the class, if any, to which the director has been assigned expires and until such director’s successor shall have been duly elected and qualified, or until such director’s earlier death, resignation, disqualification or removal. | The second amended and restated certificate of incorporation provides that any vacancy occurring in the Board of Directors for any cause, and any newly created directorship resulting from any increase in the authorized number of directors, shall be filled only by the affirmative vote of a majority of the directors then in office, even if less than a quorum, or by a sole remaining director, and shall not be filled by the stockholders. Any director elected in accordance with the preceding sentence shall hold office for a term expiring at the annual meeting of stockholders at which the term of office of the class, if any, to which the director has been assigned expires and until such director’s successor shall have been duly elected and qualified, or until such director’s earlier death, resignation, disqualification or removal. | ||||
Notice of Stockholder Meeting | The amended and restated bylaws provide that notice of all meetings of stockholders shall be given in writing or by electronic transmission in the manner provided by applicable law stating the date, time and place, if any, of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, and the record date for determining the stockholders entitled to vote at the meeting (if such date is different from the record date for stockholders entitled to notice of the meeting). In the case of a special meeting, such notice shall also set forth the purpose or purposes for which the meeting is called. Unless otherwise required by applicable law or the restated certificate of incorporation, notice of any meeting of stockholders shall be given not less than ten (10), nor | The amended and restated bylaws provide that notice of all meetings of stockholders shall be given in writing or by electronic transmission in the manner provided by applicable law stating the date, time and place, if any, of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, and the record date for determining the stockholders entitled to vote at the meeting (if such date is different from the record date for stockholders entitled to notice of the meeting). In the case of a special meeting, such notice shall also set forth the purpose or purposes for which the meeting is called. Unless otherwise required by applicable law or the second amended and restated certificate of incorporation, notice of any meeting of stockholders shall be given not less than | ||||
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more than sixty (60), days before the date of the meeting to each stockholder of record entitled to vote at such meeting as of the record date for determining the stockholders entitled to notice of the meeting. | ten (10), nor more than sixty (60), days before the date of the meeting to each stockholder of record entitled to vote at such meeting as of the record date for determining the stockholders entitled to notice of the meeting. | |||||
Quorum | The amended and restated bylaws provide that at each meeting of stockholders the holders of 1/3 of the voting power of the shares of stock issued and outstanding and entitled to vote at the meeting, present in person or represented by proxy, shall constitute a quorum for the transaction of business; provided, however, that where a separate vote by a class or classes or series of stock is required by applicable law or the restated certificate of incorporation, the holders of 1/3 of the voting power of the shares of such class or classes or series of the stock issued and outstanding and entitled to vote on such matter, present in person or represented by proxy at the meeting, shall constitute a quorum entitled to take action with respect to the vote on such matter. | The amended and restated bylaws provide that at each meeting of stockholders the holders of 1/3 of the voting power of the shares of stock issued and outstanding and entitled to vote at the meeting, present in person or represented by proxy, shall constitute a quorum for the transaction of business; provided, however, that where a separate vote by a class or classes or series of stock is required by applicable law or the second amended and restated certificate of incorporation, the holders of 1/3 of the voting power of the shares of such class or classes or series of the stock issued and outstanding and entitled to vote on such matter, present in person or represented by proxy at the meeting, shall constitute a quorum entitled to take action with respect to the vote on such matter. | ||||
Voting | The amended and restated bylaws provide that each stockholder of record entitled to vote at a meeting of stockholders, or to take corporate action by written consent without a meeting, may authorize another person or persons to act for such stockholder by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. Such a proxy may be prepared, transmitted and delivered in any manner permitted by applicable law. At all meetings of stockholders for the election of directors at which a quorum is present, directors shall be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. At all meetings of stockholders at which a quorum is present, every matter other than the election of directors shall be decided by the affirmative vote of the | The amended and restated bylaws provide that each stockholder of record entitled to vote at a meeting of stockholders, or to take corporate action by written consent without a meeting, may authorize another person or persons to act for such stockholder by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. Such a proxy may be prepared, transmitted and delivered in any manner permitted by applicable law. At all meetings of stockholders for the election of directors at which a quorum is present, directors shall be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. At all meetings of stockholders at which a quorum is present, every matter other than the election of directors shall be decided by the affirmative vote of the holders of a majority of the voting | ||||
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holders of a majority of the voting power of the shares of stock entitled to vote on such matter that are present in person or represented by proxy at the meeting and are voted for or against the matter (or if there are two or more classes or series of stock entitled to vote as separate classes, then in the case of each class or series, the holders of a majority of the voting power of the shares of stock of that class or series present in person or represented by proxy at the meeting voting for or against such matter). | power of the shares of stock entitled to vote on such matter that are present in person or represented by proxy at the meeting and are voted for or against the matter (or if there are two or more classes or series of stock entitled to vote as separate classes, then in the case of each class or series, the holders of a majority of the voting power of the shares of stock of that class or series present in person or represented by proxy at the meeting voting for or against such matter). | |||||
Written Consents | The restated certificate of incorporation expressly prohibits the taking of action by written consent without a meeting. | The second amended and restated certificate of incorporation expressly prohibits the taking of action by written consent without a meeting. | ||||
Cumulative Voting | The restated certificate of incorporation expressly prohibits any stockholder to cumulate votes at any elections of directors. | The second amended and restated certificate of incorporation expressly prohibits any stockholder to cumulate votes at any elections of directors. | ||||
Conversion Rights | The amended and restated certificate of incorporation does not have a provision granting conversion rights to stockholders. | The second amended and restated certificate of incorporation does not have a provision granting conversion rights to stockholders. | ||||
Redemption Rights | The amended and restated certificate of incorporation does not have a provision granting conversion rights to stockholders. | The second amended and restated certificate of incorporation does not have a provision granting conversion rights to stockholders. | ||||
Preemptive Rights | The amended and restated certificate of incorporation does not have a provision granting conversion rights to stockholders. | The second amended and restated certificate of incorporation does not have a provision granting conversion rights to stockholders. | ||||
Transfer Restrictions | Neither the restated certificate of incorporation or the amended and restated bylaws have transfer restrictions. | The second amended and restated certificate of incorporation includes transfer restrictions relating to its common stock that would restrict any person from buying or selling common stock (or any interest in the stock) if the transfer would result in a stockholder (or several stockholders, in the aggregate, who hold their stock as a “group” under the federal securities laws) owning 4.9% or more of our stock. See “Proposal 1— Reorganization Proposal” on page 34 for more information. | ||||
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Liquidation preferences | The restated certificate of incorporation provides that subject to the preferential or other rights of any holders of preferred stock then outstanding, upon the liquidation, dissolution or winding up of ContextLogic, whether voluntary or involuntary, holders of class A common stock will be entitled to receive ratably all assets of ContextLogic available for distribution to its stockholders unless disparate or different treatment of the shares of each such class with respect to distributions upon any such liquidation, dissolution or winding up is approved in advance by the affirmative vote of the holders of a majority of the outstanding shares of class A common stock. | The second amended and restated certificate of incorporation provides that subject to the preferential or other rights of any holders of preferred stock then outstanding, upon the liquidation, dissolution or winding up of Holdings, whether voluntary or involuntary, holders of class common stock will be entitled to receive ratably all assets of Holdings available for distribution to its stockholders unless disparate or different treatment of the shares with respect to distributions upon any such liquidation, dissolution or winding up is approved in advance by the affirmative vote of the holders of a majority of the outstanding shares of common stock. | ||||
Declaration and Payment of Dividends | The restated certificate of incorporation provides that that shares of class A common stock shall be treated equally, identically and ratably, on a per share basis, with respect to any dividends or distributions as may be declared and paid from time to time by the Board of Directors out of any assets of ContextLogic legally available therefor. | The second amended and restated certificate of incorporation provides that shares of common stock shall be treated equally, identically and ratably, on a per share basis, with respect to any dividends or distributions as may be declared and paid from time to time by the Board of Directors out of any assets of Holdings legally available therefor. | ||||
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Indemnification | The amended and restated bylaws provide that, subject to certain exceptions set forth in the amended and restated bylaws, ContextLogic shall indemnify and hold harmless, to the fullest extent permitted by the DGCL each person who was or is made a party to, or is threatened to be made a party to, or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, legislative or any other type whatsoever by reason of the fact that such person (or a person of whom such person is the legal representative), is or was a director or officer of the Corporation or, while serving as a director or officer of the Corporation, is or was serving at the request of the | The amended and restated bylaws provide that, subject to certain exceptions set forth in the amended and restated bylaws, Holdings shall indemnify and hold harmless, to the fullest extent permitted by the DGCL each person who was or is made a party to, or is threatened to be made a party to, or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, legislative or any other type whatsoever by reason of the fact that such person (or a person of whom such person is the legal representative), is or was a director or officer of the Corporation or, while serving as a director or officer of the Corporation, is or was serving at the request of the | ||||
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Corporation as a director, officer, employee, agent or trustee of another corporation, or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, as the same exists or may hereafter be amended against all expenses, liability and loss (including attorneys’ fees, judgments, fines, ERISA excise taxes and penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by such indemnitee in connection therewith, provided such indemnitee acted in good faith and in a manner that the indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal proceeding, had no reasonable cause to believe the indemnitee’s conduct was unlawful. | Corporation as a director, officer, employee, agent or trustee of another corporation, or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, as the same exists or may hereafter be amended against all expenses, liability and loss (including attorneys’ fees, judgments, fines, ERISA excise taxes and penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by such indemnitee in connection therewith, provided such indemnitee acted in good faith and in a manner that the indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal proceeding, had no reasonable cause to believe the indemnitee’s conduct was unlawful. | |||||
Advancement of Expenses | The amended and restated bylaws provide that ContextLogic shall pay all expenses (including attorneys’ fees) incurred by an indemnitee in defending any proceeding in advance of its final disposition; provided, however, that if the DGCL then so requires, the advancement of such expenses shall be made only upon delivery to ContextLogic of an undertaking, by or on behalf of such indemnitee, to repay such amounts if it shall ultimately be determined that such indemnitee is not entitled to be indemnified. | The amended and restated bylaws provide that Holdings shall pay all expenses (including attorneys’ fees) incurred by an indemnitee in defending any proceeding in advance of its final disposition; provided, however, that if the DGCL then so requires, the advancement of such expenses shall be made only upon delivery to Holdings of an undertaking, by or on behalf of such indemnitee, to repay such amounts if it shall ultimately be determined that such indemnitee is not entitled to be indemnified. | ||||
Limitation of Liability | The restated certificate of incorporation provides that to the fullest extent permitted by law, no director of ContextLogic shall be personally liable to ContextLogic or its stockholders for monetary damages for breach of fiduciary duty as a director. Without limiting the effect of the preceding sentence, if the DGCL is amended to authorize the further elimination or limitation of the liability of a director, then the liability of a director of ContextLogic shall be eliminated or limited to the fullest extent permitted by the DGCL, as so amended. | The second amended and restated certificate of incorporation provides that to the fullest extent permitted by law, no director of Holdings shall be personally liable to Holdings or its stockholders for monetary damages for breach of fiduciary duty as a director. Without limiting the effect of the preceding sentence, if the DGCL is amended to authorize the further elimination or limitation of the liability of a director, then the liability of a director of Holdings shall be eliminated or limited to the fullest extent permitted by the DGCL, as so amended. | ||||
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Amendment of Certificate of Incorporation | The restated certificate of incorporation provides that the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of all of the then outstanding shares of the stock entitled to vote generally in the election of directors, voting together as a single class, shall be required to amend in any respect or repeal Section 1 of Article XI (amendment of restated certificate of incorporation), Sections 1.2 and 2 of Article IV (authorized stock), or Article V (formerly relating to class b common stock conversion), Article VI (amendment of bylaws), Article VII (matters relating to the Board of Directors), Article VIII (director liability), Article IX (matters relating to stockholders), Article X (severability) or Article XII (choice of forum). | The second amended and restated certificate of incorporation provides that the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of all of the then outstanding shares of the stock entitled to vote generally in the election of directors, voting together as a single class, shall be required to amend in any respect or repeal Section 1 of Article XI (amendment of certificate of incorporation), Sections 1.2 and 2 of Article IV (authorized stock), Article VI (amendment of bylaws), Article VII (matters relating to the Board of Directors), Article VIII (director liability), Article IX (matters relating to stockholders), Article X (severability) or Article XII (choice of forum). | ||||
Amendment of Bylaws | The restated certificate of incorporation provides that the Board of Directors shall have the power to adopt, amend or repeal the Bylaws. Any adoption, amendment or repeal of the Bylaws by the Board of Directors shall require the approval of a majority of the Whole Board. The stockholders shall also have power to adopt, amend or repeal the bylaws; provided, however, that the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of all of the then-outstanding shares of the capital stock of ContextLogic entitled to vote generally in the election of directors, voting together as a single class, shall be required for the stockholders to adopt, amend or repeal any provision of the bylaws; provided, further, however, that, in the case of any proposed adoption, amendment or repeal of any provisions of the bylaws that is approved by the Board of Directors and submitted to the stockholders for adoption thereby, if directors representing two-thirds (2/3) of the Whole Board have approved such adoption, amendment or repeal of any provisions of the bylaws, then, in addition to any vote of the holders of any class or series of stock of | The second amended and restated certificate of incorporation provides that the Board of Directors shall have the power to adopt, amend or repeal the Bylaws. Any adoption, amendment or repeal of the Bylaws by the Board of Directors shall require the approval of a majority of the Whole Board. The stockholders shall also have power to adopt, amend or repeal the bylaws; provided, however, that the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of all of the then-outstanding shares of the capital stock of Holdings entitled to vote generally in the election of directors, voting together as a single class, shall be required for the stockholders to adopt, amend or repeal any provision of the bylaws; provided, further, however, that, in the case of any proposed adoption, amendment or repeal of any provisions of the bylaws that is approved by the Board of Directors and submitted to the stockholders for adoption thereby, if directors representing two-thirds (2/3) of the Whole Board have approved such adoption, amendment or repeal of any provisions of the bylaws, then, in addition to any vote of the holders of | ||||
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ContextLogic required by applicable law or by the restated certificate of incorporation, only the affirmative vote of the holders of at least a majority of the voting power of all of the then-outstanding shares of the capital stock of ContextLogic entitled to vote generally in the election of directors, voting together as a single class, shall be required to adopt, amend or repeal such provision of the bylaws. | any class or series of stock of Holdings required by applicable law or by the second amended and restated certificate of incorporation, only the affirmative vote of the holders of at least a majority of the voting power of all of the then-outstanding shares of the capital stock of Holdings entitled to vote generally in the election of directors, voting together as a single class, shall be required to adopt, amend or repeal such provision of the bylaws. | |||||
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• | its Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 12, 2025; its Amendment No. 1 to its Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on April 17, 2025; |
• | its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC on May 9, 2025; and |
• | its Current Reports on Form 8-K filed with the SEC on March 28, 2025, April 2, 2025, April 17, 2025, May 9, 2025 and May 30, 2025. |
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a) | Consents. Any consents, approvals or authorizations that the Company deems necessary or appropriate to be obtained in connection with the consummation of the Reorganization shall have been obtained; |
b) | Stockholder Approval. This Agreement shall have been adopted by holders of a majority of the issued and outstanding shares of Company Common Stock, voting together as a single class in accordance with the DGCL; |
c) | Stockholder Approval. This Agreement shall have been adopted by the sole stockholder of Merger Sub; |
d) | Listing. Holdings Common Stock to be issued and reserved for issuance in connection with the Reorganization shall have been approved for listing by the Nasdaq Global Select Market; and |
e) | Tax Benefits Preservation Plan. The Company shall have terminated the Tax Benefits Preservation Plan pursuant to the terms thereunder. |
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CONTEXTLOGIC INC., a Delaware corporation | ||||||
By: | /s/ Rishi Bajaj | |||||
Name: Rishi Bajaj | ||||||
Title: Chief Executive Officer | ||||||
EASTER MERGER SUB, INC., a Delaware corporation | ||||||
By: | /s/ Rishi Bajaj | |||||
Name: Rishi Bajaj | ||||||
Title: President | ||||||
EASTER PARENT, INC., a Delaware corporation | ||||||
By: | /s/ Rishi Bajaj | |||||
Name: Rishi Bajaj Title: President | ||||||
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ARTICLE I STOCKHOLDERS | C-1 | |||||||||||
Section 1.1 | Annual Meetings | C-1 | ||||||||||
Section 1.2 | Special Meetings | C-1 | ||||||||||
Section 1.3 | Notice of Meetings | C-1 | ||||||||||
Section 1.4 | Adjournments | C-1 | ||||||||||
Section 1.5 | Quorum | C-2 | ||||||||||
Section 1.6 | Organization | C-2 | ||||||||||
Section 1.7 | Voting; Proxies | C-2 | ||||||||||
Section 1.8 | Fixing Date for Determination of Stockholders of Record | C-2 | ||||||||||
Section 1.9 | List of Stockholders Entitled to Vote | C-3 | ||||||||||
Section 1.10 | Inspectors of Elections | C-3 | ||||||||||
Section 1.11 | Conduct of Meetings | C-4 | ||||||||||
Section 1.12 | Notice of Stockholder Business; Nominations | C-5 | ||||||||||
Section 1.13 | Action by Written Consent of Stockholders | C-10 | ||||||||||
Section 1.14 | Delivery to the Corporation | C-11 | ||||||||||
ARTICLE II BOARD OF DIRECTORS | C-11 | |||||||||||
Section 2.1 | Number; Qualifications | C-11 | ||||||||||
Section 2.2 | Election; Resignation; Removal; Vacancies | C-11 | ||||||||||
Section 2.3 | Regular Meetings | C-11 | ||||||||||
Section 2.4 | Special Meetings | C-11 | ||||||||||
Section 2.5 | Remote Meetings Permitted | C-12 | ||||||||||
Section 2.6 | Quorum; Vote Required for Action | C-12 | ||||||||||
Section 2.7 | Organization | C-12 | ||||||||||
Section 2.8 | Unanimous Action by Directors in Lieu of a Meeting | C-12 | ||||||||||
Section 2.9 | Powers | C-12 | ||||||||||
Section 2.10 | Compensation of Directors | C-12 | ||||||||||
Section 2.11 | Confidentiality | C-12 | ||||||||||
ARTICLE III COMMITTEES | C-12 | |||||||||||
Section 3.1 | Committees | C-12 | ||||||||||
Section 3.2 | Committee Rules | C-13 | ||||||||||
ARTICLE IV OFFICERS; CHAIRPERSON; LEAD INDEPENDENT DIRECTOR | C-13 | |||||||||||
Section 4.1 | Generally | C-13 | ||||||||||
Section 4.2 | Chief Executive Officer | C-13 | ||||||||||
Section 4.3 | Chairperson of the Board | C-13 | ||||||||||
Section 4.4 | Lead Independent Director | C-13 | ||||||||||
Section 4.5 | President | C-14 | ||||||||||
Section 4.6 | Chief Financial Officer | C-14 | ||||||||||
Section 4.7 | Treasurer | C-14 | ||||||||||
Section 4.8 | Vice President | C-14 | ||||||||||
Section 4.9 | Secretary | C-14 | ||||||||||
Section 4.10 | Delegation of Authority | C-14 | ||||||||||
Section 4.11 | Removal | C-14 | ||||||||||
Section 4.12 | Voting Shares in Other Business Entities | C-14 | ||||||||||
Section 4.13 | Execution of Corporate Contracts and Instruments | C-15 | ||||||||||
ARTICLE V STOCK | C-15 | |||||||||||
Section 5.1 | Certificates; Uncertificated Shares | C-15 | ||||||||||
Section 5.2 | Lost, Stolen or Destroyed Stock Certificates; Issuance of New Certificates or Uncertificated Shares | C-15 | ||||||||||
Section 5.3 | Other Regulations | C-15 | ||||||||||
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ARTICLE VI INDEMNIFICATION | C-15 | |||||||||||
Section 6.1 | Indemnification of Officers and Directors | C-15 | ||||||||||
Section 6.2 | Advance of Expenses | C-16 | ||||||||||
Section 6.3 | Non-Exclusivity of Rights | C-16 | ||||||||||
Section 6.4 | Indemnification Contracts | C-16 | ||||||||||
Section 6.5 | Right of Indemnitee to Bring Suit | C-16 | ||||||||||
Section 6.6 | Nature of Rights | C-16 | ||||||||||
Section 6.7 | Insurance | C-17 | ||||||||||
ARTICLE VII NOTICES | C-17 | |||||||||||
Section 7.1 | Notice | C-17 | ||||||||||
Section 7.2 | Waiver of Notice | C-18 | ||||||||||
ARTICLE VIII INTERESTED DIRECTORS | C-18 | |||||||||||
Section 8.1 | Interested Directors Section | C-18 | ||||||||||
Section 8.2 | Quorum | C-18 | ||||||||||
ARTICLE IX MISCELLANEOUS | C-18 | |||||||||||
Section 9.1 | Fiscal Year | C-18 | ||||||||||
Section 9.2 | Seal | C-18 | ||||||||||
Section 9.3 | Form of Records | C-18 | ||||||||||
Section 9.4 | Reliance Upon Books and Records | C-18 | ||||||||||
Section 9.5 | Certificate of Incorporation Governs | C-19 | ||||||||||
Section 9.6 | Severability | C-19 | ||||||||||
Section 9.7 | Time Periods | C-19 | ||||||||||
ARTICLE X AMENDMENT | C-19 | |||||||||||
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a) | Consents. Any consents, approvals or authorizations that the Company deems necessary or appropriate to be obtained in connection with the consummation of the Reorganization shall have been obtained; |
b) | Stockholder Approval. This Agreement shall have been adopted by holders of a majority of the issued and outstanding shares of Company Common Stock, voting together as a single class in accordance with the DGCL; |
c) | Stockholder Approval. This Agreement shall have been adopted by the sole stockholder of Merger Sub; |
d) | Tax Benefits Preservation Plan: The Company shall have terminated the Tax Benefits Preservation Plan pursuant to the terms thereunder; and |
e) | Dissenting Shares. Holders or beneficial owners of no more than one percent (1%) of the issued and outstanding shares of Company Common Stock as of immediately prior to the closing of the polls on the stockholder vote to adopt this Agreement, in the aggregate, shall have exercised, or remain entitled to exercise appraisal rights pursuant to Section 262 of the DGCL with respect to such Dissenting Shares as described in Section 2.5. |
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CONTEXTLOGIC INC., a Delaware corporation | |||||||||
By: | /s/ Rishi Bajaj | ||||||||
Name: | Rishi Bajaj | ||||||||
Title: | Chief Executive Officer | ||||||||
EASTER MERGER SUB, INC., a Delaware corporation | |||||||||
By: | /s/ Rishi Bajaj | ||||||||
Name: | Rishi Bajaj | ||||||||
Title: | President | ||||||||
EASTER PARENT, INC., a Delaware corporation | |||||||||
By: | /s/ Rishi Bajaj | ||||||||
Name: | Rishi Bajaj | ||||||||
Title: | President | ||||||||
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