Deferred Payment Agreement, dated March 28, 2024, by and among Zapata Computing Holdings Inc. (f/k/a Andretti Acquisition Corp.), Andretti Sponsor LLC, Michael M. Andretti, William J. Sandbrook and William M. Brown
Exhibit 10.35
DEFERRED PAYMENT AGREEMENT
This Deferred Payment Agreement (this Agreement) is made and entered into as of March 28, 2024 by and among Zapata Computing Holdings Inc. (f/k/a Andretti Acquisition Corp.) (the Company), Andretti Sponsor LLC (Sponsor), Michael M. Andretti, William J. Sandbrook and William M. Brown (each a Lender and together the Lenders).
WHEREAS, the Company issued promissory notes (the Notes) to the Sponsor, and each Lender as set forth below;
WHEREAS, the Notes are due and payable on the date on which the Company consummates an initial business combination;
WHEREAS, the Company consummated an initial business combination with Zapata Computing, Inc. (Zapata) on March 28, 2024 (the Closing Date) and the Company and each Lender seek to amend the notes to provide for installment payments.
NOW, THEREORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and by their signatures hereto, the Company and each Lender hereby amend the Notes as follows:
1. | The following table reflects the total amounts including interest through March 28, 2024 that were due to each Lender at closing: |
Lender | Date | Drawn | Interest Due | Total Due | ||||||||||||
Sponsor | 1/25/23 | $ | 247,000.00 | $ | 9,756.13 | $ | 256,756.13 | |||||||||
Willam J. Sandbrook | 5/23/23 | $ | 1,136,040.03 | $ | 41,803.06 | $ | 1,177,843.08 | |||||||||
Michael M. Andretti | 5/23/23 | $ | 1,136,040.03 | $ | 41,803.06 | $ | 1,177,843.08 | |||||||||
William M. Brown | 5/23/23 | $ | 226,871.94 | $ | 8,348.25 | $ | 235,220.19 | |||||||||
|
|
|
|
|
| |||||||||||
Total | $ | 2,745,952.00 | $ | 101,710.48 | $ | 2,847,662.48 | ||||||||||
|
|
|
|
|
|
2. | In connection with the Closing, the Company made payments to the Lenders as follows: |
Lender | Payment | Remaining Due as of 3/28/24 | ||||||
Sponsor | $ | 30,000 | $ | 226,756.13 | ||||
Willam J. Sandbrook | $ | 100,000 | $ | 1,077,843.08 | ||||
Michael M. Andretti | $ | 100,000 | $ | 1,077,843.08 | ||||
William M. Brown | $ | 100,000 | $ | 135,220.19 | ||||
|
|
|
| |||||
total | $ | 330,000 | $ | 2,517,662.48 | ||||
|
|
|
|
3. | With respect to the Sponsor, the amount that remains outstanding under its Note, including accrued interest thereon, shall be paid in substantially equal monthly installments starting no more than 30 days following the date that the registration statement on Form S-1 to be filed pursuant to the Purchase Agreement dated as of December 19, 2023 among the Company, Zapata and Lincoln Park Fund, LLC is declared effective by the SEC (the Effectiveness Date) such that all amounts owed are paid no later than December 31, 2024. |
4. | For each Lender other than the Sponsor, the remaining amount due, including accrued interest thereon, shall be paid in substantially equal installments over twelve (12) months commencing no later than 30 days after the Effectiveness Date. |
5. | For the avoidance of doubt, interest shall accrue on any unpaid balance of the Notes at a rate of 4.5% per annum in accordance with their terms. |
6. | By way of illustration, on the Closing Date Mr. Andretti had $1,177,843.08 outstanding under his Note: |
| $100,000 was repaid to Mr. Andretti at closing leaving $1,077,843.08 outstanding. This amount divided by 12 is $89,820.26. |
| the first installment of $89,820.26 plus accrued interest on that amount from the Closing Date though date of the first installment payment will be payable within 30 days of the Effectiveness Date, |
| the second installment of $89,820.26 plus accrued interest on that amount from the Closing Date closing through the date of the second installment payment (i.e. a months more interest than the previous payment), |
| with additional monthly installments to continue over twelve months as reflected in Schedule A attached hereto. |
7. | Except as specifically amended hereby, the Notes shall remain in full force and effect. |
8. | This Agreement may be executed in two or more counterparts (including facsimile or pdf counterparts), each of which shall be deemed an original, but all of which together than constitute on and the same instrument. |
[Signature Page Follows]
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written and accepted and agreed to the foregoing.
ZAPATA COMPUTING HOLDINGS INC. |
/s/ Christopher Savoie |
Christopher Savoie |
Chairman & Chief Executive Officer |
ANDRETTI SPONSOR LLC |
/s/ William M. Brown |
William M. Brown |
Chief Financial Officer |
/s/ Michael Andretti |
Michael Andretti |
/s/ William Sandbrook |
William Sandbrook |
/s/ William Brown |
William Brown |
SCHEDULE A
Payment Deferral Schedule - Andreti Sponsor and Sponsor Members
Number of Monthly Deferred Payments | 12 | Except for Sponsor, which needs to be paid off by year-end 2024 | ||
Interest Rate | 4.50% | |||
Days-Count Convention | Actual/360 | |||
Closing Date | 3/28/2024 | |||
Assumed Effectiveness of S-1 for ELOC | 5/15/2024 | Assumption; dates thereafter will depend on actual effectiveness date | ||
First Deferred Payment Due | 6/14/2024 | 30 days after Effectiveness |
Monthly Payments (Dates Estimated) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Owed at | Upfront | Total Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lender | Closing | Payment | Deferred | 6/14/2024 | 7/14/2024 | 8/14/2024 | 9/14/2024 | 10/14/2024 | 11/14/2024 | 12/14/2024 | 1/14/2025 | 2/14/2025 | 3/14/2025 | 4/14/2025 | 5/14/2025 | |||||||||||||||||||||||||||||||||||||||||||||
Andretti Sponsor, LLC | $ | 256,756.13 | $ | 30,000.00 | $ | 226,756.13 | $ | 19,077.42 | $ | 19,147.53 | $ | 19,220.24 | $ | 19,293.23 | $ | 19,364.13 | $ | 19,437.66 | $ | 97,545.47 | NA | NA | NA | NA | NA | |||||||||||||||||||||||||||||||||||
Michael Andretti | $ | 1,177,843.08 | $ | 100,000.00 | $ | 1,077,843.08 | $ | 90,680.97 | $ | 91,014.21 | $ | 91,359.83 | $ | 91,706.78 | $ | 92,043.78 | $ | 92,393.32 | $ | 92,732.85 | $ | 93,085.01 | $ | 93,438.50 | $ | 93,758.94 | $ | 94,114.99 | $ | 94,460.84 | ||||||||||||||||||||||||||||||
Bill Sandbrook | $ | 1,177,843.08 | $ | 100,000.00 | $ | 1,077,843.08 | $ | 90,680.97 | $ | 91,014.21 | $ | 91,359.83 | $ | 91,706.78 | $ | 92,043.78 | $ | 92,393.32 | $ | 92,732.85 | $ | 93,085.01 | $ | 93,438.50 | $ | 93,758.94 | $ | 94,114.99 | $ | 94,460.84 | ||||||||||||||||||||||||||||||
Matt Brown | $ | 235,220.19 | $ | 100,000.00 | $ | 135,220.19 | $ | 11,376.33 | $ | 11,418.14 | $ | 11,461.50 | $ | 11,505.02 | $ | 11,547.30 | $ | 11,591.15 | $ | 11,633.75 | $ | 11,677.93 | $ | 11,722.27 | $ | 11,762.47 | $ | 11,807.14 | $ | 11,850.53 |