Document:

Exhibit 4.5

 

DESCRIPTION OF REGISTRANT’S SECURITIES

 

The following summary of CENAQ Energy Corp.’s
securities is based on and qualified by the Company’s Amended and Restated Articles of Incorporation (the “Amended and Restated
Charter”). References to the “Company” and to “we,” “us,” and “our” refer to CENAQ
Energy Corp.

 

General

 

Preferred Stock, Common Stock

 

As of December 31, 2021, the Company is authorized
to issue 1,000,000 preferred stock with a par value of $0.0001 and with such designations,
voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of December
31, 2021 and December 31, 2020, there were no preferred stock issued or outstanding.

 

The Company
is authorized to issue 200,000,000 shares of Class A common stock with a par value of $0.0001 per share. At December 31,
2021, there were 189,750 Class A common stock issued or outstanding excluding 17,250,000 Class A stock subject to
redemption. At December 31, 2020, there were no Class A common stock issued or outstanding.

 

The Company
is authorized to issue 20,000,000 shares of Class B common stock with a par value of $0.0001 per share. Holders are entitled
to one vote for each share of Class B common stock. At December 31, 2021 and December 31, 2020, there were 4,312,500 shares
of Class B common stock issued and outstanding. Of the 4,312,500 shares of Class B common stock, an aggregate of up
to 562,500 shares were subject to forfeiture to the Company for no consideration to the extent that the underwriters’
over-allotment option is not exercised in full or in part, so that the initial stockholders will collectively own 20% of the Company’s
issued and outstanding common stock after the IPO. On August 19, 2021, the over-allotments were exercised in full, hence the 562,500 Founder
Shares were no longer subject to forfeiture.

 

Holders
of Class A common stock and holders of Class B common stock vote together as a single class on all matters submitted to a vote of the
Company’s stockholders except as required by law. Unless specified in the Company’s amended and restated certificate of incorporation
or bylaws, or as required by applicable provisions of the DGCL or applicable stock exchange rules, the affirmative vote of a majority
of the Company’s shares of common stock that are voted is required to approve any such matter voted on by its stockholders.

 

Warrants 

 

There are 19,612,500 warrants
currently outstanding, including 12,937,500 public warrants and 6,675,000 Private Placement Warrants. Each warrant
entitles the registered holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment
as discussed below, at any time commencing 30 days after the completion of our initial business combination. However, no warrants will
be exercisable for cash unless we have an effective and current registration statement covering the shares of Class A common stock issuable
upon exercise of the warrants and a current prospectus relating to such shares of Class A common stock. Notwithstanding the foregoing,
if a registration statement covering the shares of Class A common stock issuable upon exercise of the public warrants is not effective
within a specified period following the consummation of our initial business combination, warrant holders may, until such time as there
is an effective registration statement and during any period when we shall have failed to maintain an effective registration statement,
exercise warrants on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the Securities Act, provided that such
exemption is available. If that exemption, or another exemption, is not available, holders will not be able to exercise their warrants
on a cashless basis. In the event of such cashless exercise, each holder would pay the exercise price by surrendering the warrants for
that number of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class
A common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market
value” (defined below) by (y) the fair market value. The “fair market value” for this purpose will mean the average
reported last sale price of the shares of Class A common stock for the 5 trading days ending on the trading day prior to the date of exercise.
The warrants will expire on the fifth anniversary of our completion of an initial business combination, at 5:00 p.m., New York City time,
or earlier upon redemption or liquidation.

 

     

     

    

 

The Private
Placement Warrants, as well as any warrants underlying additional units we issue to our sponsor, officers, directors, initial stockholders
or their affiliates in payment of working capital loans made to us, will be identical to the warrants underlying the units being offered
by this prospectus.

 

We may call
the warrants for redemption, in whole and not in part, at a price of $0.01 per warrant:

  

		●	at any time after the warrants
become exercisable;

 

	 	●	upon not less than 30 days’ prior written notice of redemption to each warrant holder;

 

	 	●	if, and only if, the reported last sale price of the shares of Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations), for any 20 trading days within a 30 trading day period commencing at any time after the warrants become exercisable and ending on the third business day prior to the notice of redemption to warrant holders; and

 

	 	●	if, and only if, there is a current registration statement in effect with respect to the shares of Class A common stock underlying such warrants.

 

If and when
the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify
the underlying securities for sale under all applicable state securities laws.

 

The Private
Placement Warrants, as well as any warrants the Company issues to the Sponsor, officers, directors, initial stockholders or their affiliates
in payment of Working Capital Loans made to the Company, will be identical to the public warrants underlying the Units being offered in
the Initial Public Offering.

 

 

Units

 

On August
17, 2021, the Company consummated its IPO of 15,000,000 units (the “Units”). Each Unit consists of one Class A common
stock of the Company, par value $0.0001 per share (the “Class A common stock”), and three-quarters of one redeemable
warrant of the Company (“Warrant”), each whole Warrant entitling the holder thereof to purchase one Class A common stock for
$11.50 per share. The Units were sold at a price of $10.00 per unit, generating gross proceeds to the Company of $150,000,000. The
warrants will become exercisable on the later of 30 days after the completion of the initial Business Combination or 12 months from the
closing of the IPO, and will expire five years after the completion of the initial Business Combination or earlier upon redemption or
liquidation. 

 

The underwriters
had a 45-day option from the date of the Company’s IPO (August 17, 2021) to purchase up to an additional 2,250,000 Units
to cover over-allotments. On August 19, 2021, the over-allotments were exercised in full, at $10.00 per Unit, generating additional
proceeds of $22,500,000.

 

Listing of Securities

 

Our units, public shares and public warrants are
each traded on the NASDAQ Stock Market under the symbols “CENQU,” “CENQ” and “CENQW,” respectively.

  

Dividends

 

We have not paid any cash dividends on our common
stock to date and do not intend to pay cash dividends prior to the completion of our initial business combination. The payment of cash
dividends in the future will be dependent upon our revenues and earnings, if any, capital requirements and general financial condition
subsequent to completion of our initial business combination. The payment of any cash dividends subsequent to our initial business combination
will be within the discretion of our board of directors at such time. In addition, our board of directors is not currently contemplating
and does not anticipate declaring any stock dividends in the foreseeable future. Further, if we incur any indebtedness in connection with
our initial business combination, our ability to declare dividends may be limited by restrictive covenants we may agree to in connection
therewith.

 

    2

     

    

 

Certain Anti-Takeover Provisions of Delaware
Law and our Amended and Restated Certificate of Incorporation and Bylaws

 

We are subject to the provisions of Section 203
of the DGCL regulating corporate takeovers. This statute prevents certain Delaware corporations, under certain circumstances, from engaging
in a “business combination” with:

 

		●	a stockholder who owns 15% or more of our outstanding voting
stock (otherwise known as an “interested stockholder”);

 

		●	an affiliate of an interested stockholder; or

 

		●	an associate of an interested stockholder, for three years
following the date that the stockholder became an interested stockholder.

 

A “business combination” includes
a merger or sale of more than 10% of our assets. However, the above provisions of Section 203 do not apply if:

 

		●	our Board approves the transaction that made the stockholder
an “interested stockholder,” before the date of the transaction;

 

		●	after the completion of the transaction that resulted in
the stockholder becoming an interested stockholder, that stockholder owned at least 85% of our voting stock outstanding at the time the
transaction commenced, other than statutorily excluded shares of common stock; or

 

		●	on or after the date of the transaction, the business combination
is approved by our Board and authorized at a meeting of our stockholders, and not by written consent, by an affirmative vote of at least
two-thirds of the outstanding voting stock not owned by the interested stockholder.

 

Our authorized but unissued common stock and preferred
stock are available for future issuances without stockholder approval (including a specified future issuance) and could be used for a
variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. The existence
of authorized but unissued and unreserved common stock and preferred stock could render more difficult or discourage an attempt to obtain
control of us by means of a proxy contest, tender offer, merger or otherwise.

 

Exclusive forum for certain lawsuits

 

Our amended and restated certificate of incorporation
require, to the fullest extent permitted by law, that derivative actions brought in our name, actions against directors, officers and
employees for breach of fiduciary duty and other similar actions (other than actions arising under the Securities Act or the Exchange
Act, for which the federal district courts of the United States of America shall be the exclusive forum) may be brought only in the
Court of Chancery in the State of Delaware (or, if such court does not have subject matter jurisdiction thereof, any other court located
in the State of Delaware with subject matter jurisdiction) and, if brought outside of Delaware, the stockholder bringing the suit will
be deemed to have consented to the personal jurisdiction of the state and federal courts located within the State of Delaware and to service
of process on such stockholder’s counsel. Although we believe this provision benefits us by providing increased consistency in the
application of Delaware law in the types of lawsuits to which it applies, the provision may limit a stockholder’s ability to bring
a claim in a judicial forum that it finds favorable for disputes with us and our directors, officers or other employees and may have the
effect of discouraging lawsuits against our directors and officers.

 

Special meeting of stockholders

 

Our bylaws provide that special meetings of our
stockholders may be called only by a majority vote of our Board, by our Chief Executive Officer or by our Chairman.

 

    3

     

    

 

Advance notice requirements for stockholder
proposals and director nominations

 

Our bylaws provide that stockholders seeking to
bring business before our annual meeting of stockholders, or to nominate candidates for election as directors at our annual meeting of
stockholders, must provide timely notice of their intent in writing. To be timely, a stockholder’s notice will need to be received
by the company secretary at our principal executive offices not later than the close of business on the 90th day nor earlier
than the close of business on the 120th day before the anniversary date of the immediately preceding annual meeting of
stockholders. Pursuant to Rule 14a-8 of the Exchange Act, proposals seeking inclusion in our annual proxy statement must comply
with the notice periods contained therein. Our bylaws also specify certain requirements as to the form and content of a stockholders’
meeting. These provisions may preclude our stockholders from bringing matters before our annual meeting of stockholders or from making
nominations for directors at our annual meeting of stockholders.

 

Action by written consent

 

Any action required or permitted to be taken by
our common stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written
consent of the stockholders other than with respect to our Class B common stock.

 

Classified Board of Directors

 

Our Board is divided into three classes, Class
I, Class II and Class III, with members of each class serving staggered three-year terms. Our amended and restated certificate of
incorporation provide that the authorized number of directors may be changed only by resolution of the Board. Under our amended and restated
certificate of incorporation, holders of our founder shares will have the right to elect all of our directors before consummation of our
initial business combination and holders of our public shares will not have the right to vote on the election of directors during such
time. These provisions of our amended and restated certificate of incorporation may only be amended if approved by holders of at least
90% of our outstanding common stock entitled to vote thereon. Subject to any other special rights applicable to the shareholders, any
vacancies on our Board may be filled by the affirmative vote of a majority of the directors present and voting at the meeting of our board
or by a majority of the holders of our founder shares.

 

Class B Common Stock Consent Right

 

For so long as any shares of Class B common
stock remain outstanding, we may not, without the prior vote or written consent of the holders of a majority of the shares of Class B
common stock then outstanding, voting separately as a single class, amend, alter or repeal any provision of our certificate of incorporation,
whether by merger, consolidation or otherwise, if such amendment, alteration or repeal would alter or change the powers, preferences or
relative, participating, optional or other or special rights of the Class B common stock. Any action required or permitted to be
taken at any meeting of the holders of Class B common stock may be taken without a meeting, without prior notice and without a vote,
if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of the outstanding Class B
common stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at
which all shares of Class B common stock were present and voted.

 

Rule 144

 

Pursuant to Rule 144, a person who has beneficially
owned restricted shares of our common stock or warrants for at least six months would be entitled to sell their securities provided that
(i) such person is not deemed to have been one of our affiliates at the time of, or at any time during the three months preceding,
a sale and (ii) we are subject to the Exchange Act periodic reporting requirements for at least three months before the sale and
have filed all required reports under Section 13 or 15(d) of the Exchange Act during the 12 months (or such shorter period as
we were required to file reports) preceding the sale.

 

Persons who have beneficially owned restricted
shares of our common stock or warrants for at least six months but who are our affiliates at the time of, or at any time during the three
months preceding, a sale, would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period
only a number of securities that does not exceed the greater of:

 

		●	1% of the total number of shares of Class A common stock
then outstanding.

 

		●	the average weekly reported trading volume of the common
stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.

 

    4

     

    

 

Sales by our affiliates under Rule 144 are
also limited by manner of sale provisions and notice requirements and to the availability of current public information about us.

 

Restrictions on the Use of Rule 144 by Shell Companies or Former
Shell Companies

 

Rule 144 is not available for the resale
of securities initially issued by shell companies (other than business combination related shell companies) or issuers that have been
at any time previously a shell company. However, Rule 144 also includes an important exception to this prohibition if the following
conditions are met:

 

		●	the issuer of the securities that was formerly a shell company
has ceased to be a shell company;

 

		●	the issuer of the securities is subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act;

 

		●	the issuer of the securities has filed all Exchange Act reports
and materials required to be filed, as applicable, during the preceding 12 months (or such shorter period that the issuer was required
to file such reports and materials), other than Current Reports on Form 8-K; and

 

		●	at least one year has elapsed from the time that the issuer
filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company.

 

As a result, our initial stockholders will be
able to sell their founder shares and private placement warrants, as applicable, pursuant to Rule 144 without registration one year
after we have completed our initial business combination.

 

Registration Rights

 

The holders of the founder shares, private placement
warrants and warrants that may be issued upon conversion of working capital loans (and any shares of Class A common stock issuable
upon the exercise of the private placement warrants and warrants that may be issued upon conversion of working capital loans and upon
conversion of the founder shares) are entitled to registration rights pursuant to a registration rights agreement requiring us to register
such securities for resale (in the case of the founder shares, only after conversion to our Class A common stock). The holders of
the majority of these securities are entitled to make up to three demands, excluding short form demands, that we register such securities.
In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed after
the completion of our initial business combination and rights to require us to register for resale such securities pursuant to Rule 415
under the Securities Act. However, the registration rights agreement provides that we will not permit any registration statement filed
under the Securities Act to become effective until termination of the applicable lock-up period, which occurs (i) in the case
of the founder shares, on the earlier of (A) six months after the completion of our initial business combination or (B) after
our initial business combination, (x) if the last sale price of our Class A common stock equals or exceeds $12.00 per share
(as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day
period commencing at least 75 days after our initial business combination, or (y) the date on which we complete a liquidation,
merger, capital stock exchange, reorganization or other similar transaction that results in all of our stockholders having the right to
exchange their shares of common stock for cash, securities or other property and (ii) in the case of the private placement warrants
and the respective Class A common stock underlying such warrants, 30 days after the completion of our initial business combination.
We will bear the expenses incurred in connection with the filing of any such registration statements.

 

 

5EX-4.1

 Exhibit 4.1 

DESCRIPTION OF CAPITAL STOCK 

The following is a description of all material characteristics of the capital stock of The Real Good Food Company, Inc., as set forth in our
Amended and Restated Certificate of Incorporation (our “Certificate of Incorporation”) and our Amended and Restated Bylaws (our “Bylaws”). References to “we,” “us,” and “our” refer to The Real Good
Food Company, Inc. This summary does not purport to be complete and is qualified in its entirety by reference to our Charter and Bylaws, copies of which have been filed as exhibits to our public filings with the Securities and Exchange Commission.

 Authorized Capital Stock 
 Our
Certificate of Incorporation authorizes capital stock consisting of: 
  

	 	•	 	 115,000,000 shares of Class A common stock, par value $0.0001 per share; 

 

	 	•	 	 25,000,000 shares of Class B common stock, par value $0.0001 per share; and 

 

	 	•	 	 10,000,000 shares of preferred stock, with a par value per share that may be established by our board of
directors in the applicable certificate of designations. 

 Class A Common Stock 

Voting Rights. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, holders of shares of our
Class A common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. The holders of our Class A common stock do not have cumulative voting rights in the election of directors, and
vote together with holders of our Class B common stock as a single class on all matters presented to our stockholders for their vote or approval, except for certain amendments to our Certificate of Incorporation or as otherwise required by
applicable law or our Certificate of Incorporation. 
 Dividend Rights. Holders of shares of our Class A common stock are
entitled to receive dividends when and if declared by our board of directors out of funds legally available therefor, subject to any statutory or contractual restrictions on the payment of dividends and to any restrictions on the payment of
dividends imposed by the terms of any outstanding preferred stock. 
 Right to Receive Liquidation Distributions. Upon our
dissolution or liquidation, or the sale of all or substantially all of our assets, after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of
shares of our Class A common stock will be entitled to receive pro rata our remaining assets available for distribution. 
 No
Preemptive or Similar Rights. Holders of shares of our Class A common stock do not have preemptive, subscription, redemption, or conversion rights. There are no redemption or sinking fund provisions applicable to our Class A common
stock. 
 Class B Common Stock 

General. Shares of Class B common stock will only be issued in the future to the extent necessary to maintain a one-to-one ratio between the number of Class B units held by equity holders of Real Good Foods, LLC (“RGF, LLC”) and the number of shares of
Class B common stock issued to RGF, LLC equity holders (each, a “Member,” and collectively, the “Members”). Shares of Class B common stock are transferable only together with an equal number of Class B units.
Shares of Class B common stock will be canceled on a one-for-one basis if we, at the election of a holder of Class B units, redeem or exchange
Class B units of such Member pursuant to the terms of that certain Exchange Agreement, dated as of November 4, 2021, by and among us, RGF, LLC, the Members, and the Fidelity investment funds party thereto (the “Exchange
Agreement”), and the Limited Liability Company Agreement of RGF, LLC (the “Operating Agreement”). 

 Voting Rights. Holders of shares of our Class B common stock are entitled to one
vote for each share held of record on all matters submitted to a vote of stockholders. The holders of our Class B common stock do not have cumulative voting rights in the election of directors, and vote together with holders of our Class A
common stock as a single class on all matters presented to our stockholders for their vote or approval, except for certain amendments to our Certificate of Incorporation or as otherwise required by applicable law or our Certificate of Incorporation.

 No Dividend, Liquidation Distribution, Preemptive, or Similar Rights. Holders of our Class B common stock do not have any
right to receive dividends or to receive a distribution upon dissolution or liquidation or the sale of all or substantially all of our assets. Additionally, holders of shares of our Class B common stock do not have preemptive, subscription,
redemption, or conversion rights. There are no redemption or sinking fund provisions applicable to the Class B common stock. 

Transfer Rights. Pursuant to the Operating Agreement, each holder of Class B common stock has agreed that (i) the holder will
not transfer any shares of Class B common stock to any person unless the holder transfers an equal number of Class B units to the same person, and (ii) in the event the holder transfers any Class B units to any person, the holder
will transfer an equal number of shares of Class B common stock to the same person. Any such transfers must be made in compliance with the terms of our Certificate of Incorporation, the Bylaws, the Exchange Agreement, and the Operating
Agreement, or such transfer may result in the Company disregarding the purported transfer and/or canceling such shares of Class B common stock. 

Rights Requiring Approval of Holders of Class A Common Stock. Any amendment of our Certificate of Incorporation that
gives holders of our Class B common stock (i) any rights to receive dividends or any other kind of distribution, (ii) any right to convert into or be exchanged for Class A common stock (excluding exchange rights with respect to
Class B Units pursuant to the terms of the Exchange Agreement), or (iii) any other economic rights will require, in addition to stockholder approval, the affirmative vote of holders of our Class A common stock voting separately as a
class. 
 Preferred Stock 
 Under the
terms of our Certificate of Incorporation, our board of directors is authorized to direct us to issue shares of preferred stock in one or more series without stockholder approval. Our board of directors has the discretion to determine the rights,
preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges, and liquidation preferences, of each series of preferred stock. 

The purpose of authorizing our board of directors to issue preferred stock and determine its rights and preferences is to eliminate delays
associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions, future financings and other corporate purposes, could have the effect of making it more
difficult for a third party to acquire, or could discourage a third party from seeking to acquire, a majority of our outstanding voting stock. Additionally, the issuance of preferred stock may adversely affect the holders of our Class A common
stock by restricting dividends on the Class A common stock, diluting the voting power of the Class A common stock, or subordinating the liquidation rights of the Class A common stock. As a result of these or other factors, the
issuance of preferred stock could have an adverse impact on the market price of our Class A common stock. 
 Delaware Law and Certain Certificate of
Incorporation and Bylaw Provisions 
 Our Certificate of Incorporation, our Bylaws, and the General Corporation Law of the State of
Delaware (“DGCL”) contain provisions, which are summarized in the following paragraphs, that are intended to enhance the likelihood of continuity and stability in the composition of our board of directors. These provisions are intended to
avoid costly takeover battles, reduce our vulnerability to a hostile change of control, and enhance the ability of our board of directors to maximize stockholder value in connection with any unsolicited offer to acquire us. However, these provisions
may have an anti-takeover effect and may delay, deter, or prevent a merger or acquisition of us by means of a tender offer, a proxy contest, or other takeover attempt that a stockholder might consider in its best interest, including those attempts
that might result in a premium over the prevailing market price for the shares of Class A common stock held by stockholders. These provisions include: 

 Classified Board. Our Certificate of Incorporation provides that our board of
directors is divided into three classes of directors. 
 No Stockholder Action by Written Consent. Our Certificate of Incorporation
precludes stockholder action by written consent. 
 Special Meetings of Stockholders. Our Certificate of Incorporation and Bylaws
provide that, except as required by law, special meetings of our stockholders may be called at any time only by or at the direction of our board of directors or the Executive Chairman. 

Advance Notice Procedures for Stockholder Proposals and Director Nominations. Our Bylaws establish advance notice procedures for
stockholder proposals and nomination of candidates for election as directors. 
 Removal of Directors; Vacancies. Our Certificate of
Incorporation provides that all directors may only be removed for cause. In addition, any vacancies on our board of directors will be filled only by the affirmative vote of a majority of the remaining directors, even if less than a quorum, or by a
sole remaining director (and not by the stockholders). 
 Amendments. Our Certificate of Incorporation and Bylaws provide that our
board of directors is expressly authorized to make, alter, amend, change, add to, rescind, or repeal, in whole or in part, our Bylaws without a stockholder vote in any matter not inconsistent with the laws of the State of Delaware and our
Certificate of Incorporation. 
 Authorized but Unissued Shares. Our authorized but unissued shares of common stock and preferred
stock are available for future issuance without stockholder approval, subject to Nasdaq listing standards. 
 Business Combinations.
We are subject to the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a
three-year period following the time that the person becomes an interested stockholder, unless the business combination is approved in a prescribed manner. A “business combination” includes, among other things, a merger, asset or stock
sale, or other transaction resulting in a financial benefit to the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates, owns, or did own within three years prior to the determination
of interested stockholder status, 15% or more of the corporation’s voting stock.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]