Exhibit 10.7

  

  

  PRIVATE PLACEMENT WARRANTS PURCHASE AGREEMENT

  

  

  THIS PRIVATE PLACEMENT WARRANTS PURCHASE AGREEMENT, effective as of October 1, 2020 (as it may from time to time be amended, this “Agreement”), is entered into by and between
    Atlantic Avenue Acquisition Corp, a Delaware corporation (the “Company”), and Robert Halmi (the “Purchaser”).

  

  

  WHEREAS:

  

  

  The Company intends to consummate an initial public offering of the Company’s units (the “Public Offering”), each unit consisting of one share of the Company’s Class A common stock,
    par value $0.0001 per share (each, a “Share”), and one-half of one redeemable warrant as set forth in the Company’s registration statement on Form S-1, filed with the Securities and Exchange Commission (the “SEC”), File Number 333-248782 (the “Registration Statement”), under the Securities Act of 1933, as amended (the “Securities Act”);

  

  

  Each whole warrant entitles the holder to purchase one Share at an exercise price of $11.50 per Share; and

  

  

  The Purchaser has agreed to purchase an aggregate of 100,000 redeemable warrants (the “Private Placement Warrants”), each whole Private Placement Warrant entitling the holder to
    purchase one Share at an exercise price of $11.50 per Share.

  

  

  NOW THEREFORE, in consideration of the mutual promises contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement
    hereby, intending legally to be bound, agree as follows:

  

  

  AGREEMENT

  

  

  Section 1. Authorization, Purchase and Sale; Terms of the Private Placement Warrants.

  

  

  A.  Authorization of the Private Placement Warrants.  The Company has duly authorized the issuance and sale of the Private Placement Warrants to the Purchaser.

  

  

  B.  Purchase and Sale of the Private Placement Warrants. On the date of the consummation of the Public Offering or on such earlier time and date as may be mutually agreed by the
    Purchaser and the Company (the “Initial Closing Date”), the Company shall issue and sell to the Purchaser, and the Purchaser shall purchase from the Company, 100,000 Private Placement Warrants at a price of $1.00
    per warrant for an aggregate purchase price of $100,000.00 (the “Purchase Price”), which shall be paid by wire transfer of immediately available funds to the Company at least one day prior to the Initial Closing
    Date in accordance with the Company’s wiring instructions; provided, however, that the Purchase Price shall be reimbursed to the Purchaser if the Initial Closing Date does not occur on the day following such wire payment. On the Initial Closing Date,
    following the payment by the Purchaser of the Purchase Price by wire transfer of immediately available funds to the Company, the Company, at its option, shall deliver a certificate evidencing the Private Placement Warrants purchased on such date duly
    registered in the Purchaser’s name to the Purchaser, or effect such delivery in book-entry form.

  
    
      


  

  C.  Terms of the Private Placement Warrants.

  

  

  (i)  Each Private Placement Warrant shall have the terms set forth in a Warrant Agreement to be entered into by the Company and a warrant agent, in connection with the Public Offering
    (the “Warrant Agreement”).

  

  

  (ii)  At the time of the closing of the Public Offering, the Company and the Purchaser shall enter into a registration rights agreement (the “Registration

      Rights Agreement”) pursuant to which the Company will grant certain registration rights to the Purchaser relating to the Private Placement Warrants and the Shares underlying the Private Placement Warrants.

  

  

  Section 2. Representations and Warranties of the Company.  As a material inducement to the Purchaser to enter into this Agreement and purchase the Private Placement Warrants, the Company hereby represents and
    warrants to the Purchaser (which representations and warranties shall survive the Closing Date) that:

  

  

  A.  Organization and Corporate Power.  The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and is
    qualified to do business in every jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on the financial condition, operating results or assets of the Company.  The Company possesses all
    requisite corporate power and authority necessary to carry out the transactions contemplated by this Agreement and the Warrant Agreement.

  

  

  B.  Authorization; No Breach.

  

  

  (i)  The execution, delivery and performance of this Agreement and the Private Placement Warrants have been duly authorized by the Company as of the Closing Date.  This Agreement
    constitutes the valid and binding obligation of the Company, enforceable in accordance with its terms.  Upon issuance in accordance with, and payment pursuant to, the terms of the Warrant Agreement and this Agreement, the Private Placement Warrants
    will constitute valid and binding obligations of the Company, enforceable in accordance with their terms as of the Closing Date.

  

  

  (ii)  The execution and delivery by the Company of this Agreement and the Private Placement Warrants, the issuance and sale of the Private Placement Warrants, the issuance of the
    Shares upon exercise of the Private Placement Warrants and the fulfillment of, and compliance with, the respective terms hereof and thereof by the Company, do not and will not as of the Closing Date (a) conflict with or result in a breach of the terms,
    conditions or provisions of, (b) constitute a default under, (c) result in the creation of any lien, security interest, charge or encumbrance upon the Company’s capital stock or assets under, (d) result in a violation of, or (e) require any
    authorization, consent, approval, exemption or other action by or notice or declaration to, or filing with, any court or administrative or governmental body or agency pursuant to the certificate of incorporation of the Company or the Bylaws of the
    Company (in effect on the date hereof or as may be amended prior to completion of the contemplated Public Offering), or any material law, statute, rule or regulation to which the Company is subject, or any agreement, order, judgment or decree to which
    the Company is subject, except for any filings required after the date hereof under federal or state securities laws.

  

  

  C.  Title to Securities.  Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Warrant Agreement, the Shares issuable upon exercise of the Private
    Placement Warrants will be duly and validly issued, fully paid and nonassessable.  Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Warrant Agreement, the Purchaser will have good title to the Private Placement
    Warrants and the Shares issuable upon exercise of such Private Placement Warrants, free and clear of all liens, claims and encumbrances of any kind, other than (i) transfer restrictions hereunder and under the other agreements contemplated hereby, (ii)
    transfer restrictions under federal and state securities laws, and (iii) liens, claims or encumbrances imposed due to the actions of the Purchaser.

  
    
      


  

  D.  Governmental Consents.  No permit, consent, approval or authorization of, or declaration to or filing with, any governmental authority is required in connection with the
    execution, delivery and performance by the Company of this Agreement or the consummation by the Company of any other transactions contemplated hereby.

  

  

  Section 3. Representations and Warranties of the Purchaser.  As a material inducement to the Company to enter into this Agreement and issue and sell the Private Placement Warrants to the Purchaser, the
    Purchaser hereby represents and warrants to the Company (which representations and warranties shall survive the Closing Date) that:

  

  

  A.  Organization and Requisite Authority.  The Purchaser possesses all requisite power and authority necessary to carry out the transactions contemplated by this Agreement.

  

  

  B.  Authorization; No Breach.

  

  

  (i)  This Agreement constitutes a valid and binding obligation of the Purchaser, enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent conveyance,
    reorganization, moratorium and other laws of general applicability relating to or affecting creditors’ rights and to general equitable principles (whether considered in a proceeding in equity or law).

  

  

  (ii)  The execution and delivery by the Purchaser of this Agreement and the fulfillment of and compliance with the terms hereof by the Purchaser does not and shall not as of the
    Closing Date conflict with or result in a breach by the Purchaser of the terms, conditions or provisions of any agreement, instrument, order, judgment or decree to which the Purchaser is subject.

  

  

  C.  Investment Representations.

  

  

  (i)  The Purchaser is acquiring the Private Placement Warrants and, upon exercise of the Private Placement Warrants, the Shares issuable upon such exercise (collectively, the “Securities”), for the Purchaser’s own account, for investment purposes only and not with a view towards, or for resale in connection with, any public sale or distribution thereof.

  

  

  (ii)  The Purchaser is an “accredited investor” as such term is defined in Rule 501(a)(3) of Regulation D under the Securities Act.

  

  

  (iii)  The Purchaser understands that the Securities are being offered and will be sold to it in reliance on specific exemptions from the registration requirements of the United States
    federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Purchaser’s compliance with, the representations and warranties of the Purchaser set forth herein in order to determine the availability of such
    exemptions and the eligibility of the Purchaser to acquire such Securities.

  
    
      


  

  (iv)  The Purchaser did not decide to enter into this Agreement as a result of any general solicitation or general advertising within the meaning of Rule 502(c) under the Securities
    Act.

  

  

  (v)  The Purchaser has been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities
    which have been requested by the Purchaser.  The Purchaser has been afforded the opportunity to ask questions of the executive officers and directors of the Company.  The Purchaser understands that its investment in the Securities involves a high
    degree of risk and it has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to the acquisition of the Securities.

  

  

  (vi)  The Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of
    the Securities or the fairness or suitability of the investment in the Securities by the Purchaser nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

  

  

  (vii)  The Purchaser understands that: (a) the Securities have not been and are not being registered under the Securities Act or any state securities laws, and may not be offered for
    sale, sold, assigned or transferred unless (1) subsequently registered thereunder or (2) sold in reliance on an exemption therefrom; and (b) except as specifically set forth in the Registration Rights Agreement, neither the Company nor any other person
    is under any obligation to register the Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.  In this regard, the Purchaser understands that the SEC has taken the
    position that promoters or affiliates of a blank check company and their transferees, both before and after a Business Combination, are deemed to be “underwriters” under the Securities Act when reselling the securities of a blank check company.  Based
    on that position, Rule 144 adopted pursuant to the Securities Act would not be available for resale transactions of the Securities despite technical compliance with the requirements of such Rule, and the Securities can be resold only through a
    registered offering or in reliance upon another exemption from the registration requirements of the Securities Act.

  

  

  (viii)  The Purchaser has such knowledge and experience in financial and business matters, knowledge of the high degree of risk associated with investments in the securities of
    companies in the development stage such as the Company, is capable of evaluating the merits and risks of an investment in the Securities and is able to bear the economic risk of an investment in the Securities in the amount contemplated hereunder for
    an indefinite period of time.  The Purchaser has adequate means of providing for its current financial needs and contingencies and will have no current or anticipated future needs for liquidity which would be jeopardized by the investment in the
    Securities.  The Purchaser can afford a complete loss of its investment in the Securities.

  

  

  (ix)  The Purchaser understands that the Private Placement Warrants shall bear the legend substantially in the form set forth in the Warrant Agreement.

  
    
      


  

  Section 4. Conditions of the Purchaser’s Obligations.  The obligations of the Purchaser to purchase and pay for the Private Placement Warrants are subject to the fulfillment, on or before the Closing Date, of
    each of the following conditions:

  

  

  A.  Representations and Warranties.  The representations and warranties of the Company contained in Section 2 shall be true and correct at and as of such Closing Date as though
    then made.

  

  

  B.  Performance.  The Company shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or
    complied with by it on or before such Closing Date.

  

  

  C.  No Injunction.  No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in
    any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby, which prohibits the consummation of any of the transactions contemplated by this Agreement or the
    Warrant Agreement.

  

  

  D.  Warrant Agreement.  The Company shall have entered into a Warrant Agreement with a warrant agent on terms satisfactory to the Purchaser.

  

  

  Section 5. Conditions of the Company’s Obligations.  The obligations of the Company to the Purchaser under this Agreement are subject to the fulfillment, on or before the Closing Date, of each of the following
    conditions:

  

  

  A.  Representations and Warranties.  The representations and warranties of the Purchaser contained in Section 3 shall be true and correct at and as of such Closing Date as
    though then made.

  

  

  B.  Performance.  The Purchaser shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed
    or complied with by the Purchaser on or before such Closing Date.

  

  

  C.  No Injunction.  No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in
    any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby, which prohibits the consummation of any of the transactions contemplated by this Agreement or the
    Warrant Agreement.

  

  

  D.  Warrant Agreement.  The Company shall have entered into a Warrant Agreement with a warrant agent on terms satisfactory to the Company.

  

  

  Section 6. Termination.  This Agreement may be terminated at any time after November 1, 2020 upon the election by either the Company or the Purchaser upon written notice to the other party if the closing of
    the Public Offering does not occur prior to such date.

  

  

  Section 7. Survival of Representations and Warranties.  All of the representations and warranties contained herein shall survive the Closing Date.

  
    
      


  

  Section 8. Definitions.  Terms used but not otherwise defined in this Agreement shall have the meaning assigned to such terms in the Registration Statement.

  

  

  Section 9. Miscellaneous.

  

  

  A.  Successors and Assigns.  Except as otherwise expressly provided herein, all covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto
    shall bind and inure to the benefit of the respective successors of the parties hereto whether so expressed or not.  Notwithstanding the foregoing or anything to the contrary herein, the parties may not assign this Agreement, other than assignments by
    the Purchaser to affiliates thereof.

  

  

  B.  Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any
    provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.

  

  

  C.  Counterparts.  This Agreement may be executed simultaneously in two or more counterparts, none of which need contain the signatures of more than one party, but all such
    counterparts taken together shall constitute one and the same agreement.

  

  

  D.  Descriptive Headings; Interpretation.  The descriptive headings of this Agreement are inserted for convenience only and do not constitute a substantive part of this
    Agreement.  The use of the word “including” in this Agreement shall be by way of example rather than by limitation.

  

  

  E.  Governing Law.  This Agreement shall be deemed to be a contract made under the laws of the State of New York and for all purposes shall be construed in accordance with the
    internal laws of the State of New York.

  

  

  F.  Amendments.  This Agreement may not be amended, modified or waived as to any particular provision, except by a written instrument executed by all parties hereto.

  

  

  [Signature page follows]

  
    
      


  

  IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first set forth above.

  

  

  	 	
          COMPANY:

        
	 	 	 	 
	 	
          ATLANTIC AVENUE ACQUISITION CORP

        
	 	 	 	 
	 	 	
          By:

        	
          /s/ Ashok Nayyar

        
	 	 	 	
          Name: Ashok Nayyar

        
	 	 	 	
          Title:  Chief Executive Officer

        


  

  

  	 	
          PURCHASER:

        
	 	 	 	 
	 	 	
          ROBERT HALMI

        
	 	 	 	 
	 	 	
          By:

        	
          /s/ Robert Halmi

        
	 	 	 	
          Name: Robert Halmi

        


  

  

  [Signature page to Private Placement Warrants Purchase Agreement (Halmi)]