Exhibit 10.3


 


January 27, 2021


 


Ignyte Acquisition Corp.

277 Park Avenue, 26th Floor

New York, New York 10172


 


EarlyBirdCapital, Inc.

366 Madison Ave 8th Floor

New York, NY 10017


 





	 	Re:	Initial Public Offering










 


Ladies and Gentlemen:


 


This letter (“Letter
Agreement”) is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting
Agreement”) entered into by and between Ignyte Acquisition Corp., a Delaware corporation (the “Company”),
and EarlyBirdCapital, Inc. as representative (the “Representative”) of the several underwriters named
in Schedule I thereto (the “Underwriters”), relating to an underwritten initial public offering (the
“IPO”) of the Company’s units (the “Units”), each Unit comprised of one
share of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), and one-half
of one warrant (“Warrant”), each whole Warrant exercisable for one share of Common Stock. Certain capitalized
terms used herein are defined in paragraph 12 hereof.


 


In order to induce
the Company and the Underwriters to enter into the Underwriting Agreement and to proceed with the IPO, and in recognition of the
benefit that such IPO will confer upon the undersigned, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the undersigned hereby agrees, severally but not jointly, with the Company as follows:


 


1. If the Company solicits
approval of its stockholders of a Business Combination, the undersigned will vote all shares of Common Stock beneficially owned
by him, her, or it, whether acquired before, in, or after the IPO, in favor of such Business Combination.


 


2. (a) In the event
that the Company fails to consummate a Business Combination within the time period set forth in the Company’s Amended and
Restated Certificate of Incorporation, as the same may be amended from time to time (the “Certificate of Incorporation”),
the undersigned will, as promptly as possible, take all necessary actions to cause the Company to (i) cease all operations except
for the purpose of winding up, (ii) not more than ten (10) business days thereafter, redeem the IPO shares, at a per-share price,
payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned funds held in the
Trust Account (less up to $50,000 to pay liquidation expenses and net of interest released to the Company to pay taxes as permitted
pursuant to the Trust Agreement), divided by the number of then outstanding IPO Shares, which redemption will extinguish public
stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), and (iii)
following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board
of directors, dissolve and liquidate, subject in the case of clauses (ii) and (iii) to the Company’s obligations under Delaware
law to provide for claims of creditors and other requirements of applicable law.


 


(b) The undersigned
hereby waives any and all right, title, interest or claim of any kind in or to any distribution of the Trust Account (“Claim”)
with respect to the Founders’ Shares owned by the undersigned and hereby waives any Claim the undersigned may have in the
future as a result of, or arising out of, any contracts or agreements with the Company and will not seek recourse against the Trust
Account for any reason whatsoever. The undersigned acknowledges and agrees that there will be no distribution from the Trust Account
with respect to any Warrants, all rights of which will terminate on the Company’s liquidation.


 


3. The undersigned
acknowledges and agrees that prior to entering into a Business Combination with a target business that is affiliated with any Insiders
of the Company or their affiliates, such transaction must be approved by a majority of the Company’s disinterested independent
directors and the Company must obtain an opinion from an



     


    


    

independent investment banking firm, or
another independent entity that commonly renders valuation opinions, that such Business Combination is fair to the Company’s
unaffiliated stockholders from a financial point of view.


 


4. Neither the undersigned
nor any affiliate of the undersigned will be entitled to receive and will not accept any compensation, finder fee or other cash
payment prior to, or for services rendered in order to effectuate, the consummation of the Business Combination; provided that
the Company shall be allowed to make the payments set forth in the Registration Statement under the caption “Prospectus Summary
– The Offering – Limited payments to insiders.”


 


5. (a) The undersigned
will place into escrow all Founders’ Shares owned by the undersigned pursuant to the terms of a Stock Escrow Agreement which
the Company will enter into with the undersigned and an escrow agent.


 


(b) The undersigned
agrees that until after the Company consummates a Business Combination, all Private Warrants owned by the undersigned will be subject
to the transfer restrictions described in the Subscription Agreement relating to the undersigned’s Private Warrants.


 


6. (a) In order to
minimize potential conflicts of interest that may arise from multiple corporate affiliations, the undersigned hereby agrees that
until the earliest of the Company’s initial Business Combination or liquidation, the undersigned shall present to the Company
for its consideration, prior to presentation to any other entity, any suitable target business, subject to any fiduciary or contractual
obligations the undersigned might have.


 


(b) The undersigned
hereby agrees and acknowledges that (i) each of the Underwriters and the Company may be irreparably injured in the event of a breach
of any of the obligations contained in this Letter Agreement, (ii) monetary damages may not be an adequate remedy for such breach
and (iii) the non-breaching party shall be entitled to injunctive relief, in addition to any other remedy that such party may have
in law or in equity, in the event of such breach.


 


7. The undersigned’s
biographical information previously furnished to the Company and the Representative is true and accurate in all respects, does
not omit any material information with respect to the undersigned’s background and contains all of the information required
to be disclosed pursuant to Item 401 of Regulation S-K, promulgated under the Securities Act. The undersigned’s FINRA Questionnaire
previously furnished to the Company and the Representative is true and accurate in all respects. The undersigned represents and
warrants that:


 


		(a)	he/she has never had a petition under the federal bankruptcy laws or any state insolvency law been
filed by or against (i) him/her or any partnership in which he/she was a general partner at or within two years before the time
of filing; or (ii) any corporation or business association of which he/she was an executive officer at or within two years before
the time of such filing;



 


		(b)	he/she has never had a receiver, fiscal agent or similar officer been appointed by a court for
his/her business or property, or any such partnership;



 


		(c)	he/she has never been convicted of fraud in a civil or criminal proceeding;



 


		(d)	he/she has never been convicted in a criminal proceeding or named the subject of a pending criminal
proceeding (excluding traffic violations and minor offenses);



 


		(e)	he/she has never been the subject of any order, judgment or decree, not subsequently reversed,
suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining or otherwise limiting him/her
from (i) acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor
broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission (“CFTC”)
or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as
an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company,
or from engaging in or continuing any conduct or practice in connection with any such activity; or (ii) engaging in any type of
business practice; or




     


    


    

(iii) engaging
in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal
or state securities or federal commodities laws;


 


		(f)	he/she has never been the subject of any order, judgment or decree, not subsequently reversed,
suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting for more than 60 days his/her
right to engage in any activity described in 9(e)(i) above, or to be associated with persons engaged in any such activity;



 


		(g)	he/she has never been found by a court of competent jurisdiction in a civil action or by the SEC
to have violated any federal or state securities law, where the judgment in such civil action or finding by the SEC has not been
subsequently reversed, suspended or vacated;



 


		(h)	he/she has never been found by a court of competent jurisdiction in a civil action or by the CFTC
to have violated any federal commodities law, where the judgment in such civil action or finding by the CFTC has not been subsequently
reversed, suspended or vacated;



 


		(i)	he/she has never been the subject of, or a party to, any Federal or State judicial or administrative
order, judgment, decree or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of (i) any
Federal or State securities or commodities law or regulation, (ii) any law or regulation respecting financial institutions or insurance
companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money
penalty or temporary or permanent cease-and desist order, or removal or prohibition order or (iii) any law or regulation prohibiting
mail or wire fraud or fraud in connection with any business entity;



 


		(j)	he/she has never been the subject of, or party to, any sanction or order, not subsequently reversed,
suspended or vacated, or any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity
or organization that has disciplinary authority over its members or persons associated with a member;



 


		(k)	he/she has never been convicted of any felony or misdemeanor: (i) in connection with the purchase
or sale of any security; (ii) involving the making of any false filing with the SEC; or (iii) arising out of the conduct of the
business of an underwriter, broker, dealer, municipal securities dealer, investment advisor or paid solicitor of purchasers of
securities;



 


		(l)	he/she was never subject to a final order of a state securities commission (or an agency of officer
of a state performing like functions); a state authority that supervises or examines banks, savings associations, or credit unions;
a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency;
the Commodity Futures Trading Commission; or the National Credit Union Administration that is based on a violation of any law or
regulation that prohibits fraudulent, manipulative, or deceptive conduct;



 


		(m)	he/she has never been subject to any order, judgment or decree of any court of competent jurisdiction,
that, at the time of such sale, restrained or enjoined him/her from engaging or continuing to engage in any conduct or practice:
(i) in connection with the purchase or sale of any security; (ii) involving the making of any false filing with the SEC; or (iii)
arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or
paid solicitor of purchasers of securities;



 


		(n)	he/she has never been subject to any order of the SEC that orders him/her to cease and desist from
committing or causing a future violation of: (i) any scienter-based anti-fraud provision of the federal securities laws, including,
but not limited to, Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Section
206(1) of the Advisers Act or any other rule or regulation thereunder; or (ii) Section 5 of the Securities Act;



 


		(o)	he/she has never been named as an underwriter in any registration statement or Regulation A offering
statement filed with the SEC that was the subject of a refusal order, stop order, or order




     


    


    

suspending the
Regulation A exemption, or is, currently, the subject of an investigation or proceeding to determine whether a stop order or suspension
order should be issued;


 


		(p)	he/she has never been subject to a United States Postal Service false representation order, or
is currently subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States
Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations;



 


		(q)	he/she is not subject to a final order of a state securities commission (or an agency of officer
of a state performing like functions); a state authority that supervises or examines banks, savings associations, or credit unions;
a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency;
the Commodity Futures Trading Commission; or the National Credit Union Administration that bars the undersigned from: (i) association
with an entity regulated by such commission, authority, agency or officer; (ii) engaging in the business of securities, insurance
or banking; or (iii) engaging in savings association or credit union activities;



 


		(r)	he/she is not subject to an order of the SEC entered pursuant to section 15(b) or 15B(c) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or section 203(e) or 203(f) of the
Investment Advisers Act of 1940, as amended (the “Advisers Act”), that: (i) suspends or revokes the undersigned’s
registration as a broker, dealer, municipal securities dealer or investment adviser; (ii) places limitations on the activities,
functions or operations of, or imposes civil money penalties on, such person; or (iii) bars the undersigned from being associated
with any entity or from participating in the offering of any penny stock; and



 


		(s)	he/she has never been suspended or expelled from membership in, or suspended or barred from association
with a member of, a securities self-regulatory organization (e.g., a registered national securities exchange or a registered national
or affiliated securities association) for any act or omission to act constituting conduct inconsistent with just and equitable
principles of trade.



 


8. The undersigned
has full right and power, without violating any agreement by which he, she or it is bound, to enter into this Letter Agreement
and to serve as a director and/or officer of the Company.


 


9. The undersigned
hereby waives any right to exercise redemption rights with respect to any shares of the Company’s common stock owned or to
be owned by the undersigned, directly or indirectly (or to sell such shares to the Company in a tender offer), whether such shares
be part of the Founders’ Shares or shares purchased by the undersigned in the IPO or in the aftermarket, and agrees not to
seek redemption with respect to such shares in connection with any vote to approve a Business Combination (or sell such shares
to the Company in a tender offer in connection with such a Business Combination).


 


10. The undersigned
hereby agrees to not propose, or vote in favor of, an amendment to Article Sixth of the Certificate of Incorporation prior to the
consummation of a Business Combination unless the Company provides public stockholders with the opportunity to redeem their shares
of Common Stock for cash upon such approval in accordance with such Article Sixth thereof.


 


11. This Letter Agreement
shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to
conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. Each of the Company
and the undersigned hereby (i) agrees that any action, proceeding or claim against him arising out of or relating in any way to
this Letter Agreement (a “Proceeding”) shall be brought and enforced in the courts of the State of New
York of the United States of America for the Southern District of New York, and irrevocably submits to such jurisdiction, which
jurisdiction shall be exclusive and (ii) waives any objection to such exclusive jurisdiction and that such courts represent an
inconvenient forum.


 


12. As used herein,
(i) a “Business Combination” means a merger, share exchange, asset acquisition, stock purchase, recapitalization,
reorganization or other similar business combination with one or more businesses or entities; (ii) “Insiders”
means all officers, directors and sponsors of the Company immediately prior to the IPO; (iii)



     


    


    

“Founders’ Shares” means all
of the shares of Common Stock of the Company acquired by an Insider prior to the IPO; (iv) “IPO Shares”
means the shares of Common Stock issued in the Company’s IPO; (v) “Private Warrants” means the
warrants that are being sold privately by the Company simultaneously with the consummation of the IPO; (vi) “Trust
Agreement” means the Investment Management Trust Agreement between the Company and Continental Stock Transfer &
Trust Company being entered into in connection with the IPO and governing the use of funds held in the Trust Account; (vii) “Trust
Account” means the trust account into which a portion of the net proceeds of the IPO and sale of Private Warrants
will be deposited; and (viii) “Registration Statement” means the Company’s registration statement
on Form S-1 (SEC File No. 333-252011) filed with the Securities and Exchange Commission.


 


13. This Letter Agreement constitutes the
entire agreement and understanding of the parties hereto in respect of the subject matter hereof and supersedes all prior understandings,
agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject
matter hereof or the transactions contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived (other
than to correct a typographical error), except by a written instrument executed by all parties hereto.


 


14. Each of the undersigned acknowledges
and understands that the Underwriters and the Company will rely upon the agreements, representations and warranties set forth herein
in proceeding with the IPO. Nothing contained herein shall be deemed to render the Underwriters a representative of, or a fiduciary
with respect to, the Company, its stockholders or any creditor or vendor of the Company with respect to the subject matter hereof.


 


[Signature Page Follows]



     


    


    

	 	Steven Kaplan

    Print Name of Insider

    

Steven Kaplan
	 	
        Signature

        

        


Acknowledged and Agreed:

        

        


IGNYTE ACQUISITION CORP.



	 	 
	 	By: 	
	 	 	Name:                                                                         
	 	 	Title:




     


    


    

	 	Steven Kaplan
 Print
    Name of Insider
	 	Signature





Acknowledged and Agreed:






IGNYTE ACQUISITION CORP.



	 	By: 	
	 	 	Name:	David J. Strupp, Jr.                   
	 	 	Title:	Co-CEO