Company: MKLY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109976
Chunk: 57

Company: McKinley Acquisition Corp
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 57
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 that issued to the sponsor simultaneously with the
closing of the Initial Public Offering in the principal amount of $500,000 (the “Private Placement Units Note”), which
we may draw down at any time and from time to time in our sole discretion. At the closing of our initial business combination, we
will cancel the number of Private Placement Units proportional to the amount not drawn under the Private Placement Units Note and
the Private Placement Units Note will be canceled.

The Private Placement Units are identical to the
units sold in the Initial Public Offering except that, so long as they are held by our sponsor, Clear Street, Brookline, or their permitted
transferees, the Private Placement Units (i) may not (including the Class A ordinary shares underlying these units), subject
to certain limited exceptions, be transferred, assigned or sold by the holders until 30 days after the completion of our initial
business combination and (ii) will be entitled to registration rights.

Pursuant to an agreement we entered into with
our sponsor, we will pay a monthly technology, software, computer systems, administrative support, secretarial services and infrastructure
fee of $10,000 to our sponsor.

Prior to or in connection with the completion
of our initial business combination, there may be payment by the company to our sponsor, officers or directors, or their affiliates, of
a finder’s fee, advisory fee, consulting fee or success fee for any services they render in order to effectuate the completion of
our initial business, which, if made prior to the completion of our initial business combination, will be paid from amounts held outside
the Trust Account.

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Our audit committee will review on a quarterly
basis all payments that were made to our sponsor, officers, directors or our or their affiliates.

In addition, in order to finance transaction costs
in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or certain of our officers and
directors may, but are not obligated to, loan us funds as may be required on a non-interest basis. If we complete an initial business
combination, we would repay such loaned amounts. Up to $1,500,000 of such loans may be convertible into Private Placement Units of the
post business combination entity at a price of $10.00 per unit at the option of the lender. Such units would be identical to the Private
Placement Units. Except as set forth above, the terms of such loans, if any,