Document:

Exhibit
4.5

 

Description
of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934, as amended

 

The
following Description of Securities sets forth certain material terms and provisions of the securities of Spree Acquisition Corp. 1 Ltd
(“we,” “us” or “our”) that are registered under Section 12 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). The following description of our securities is not complete and may not contain all the
information you should consider before investing in our securities.

 

This
description is summarized from, and qualified in its entirety by reference to, our amended and restated memorandum and articles of association,
which are incorporated herein by reference. The summary below is also qualified by reference to the Companies Law (the “Companies
Law”) and common law of the Cayman Islands.

 

As
of December 15, 2021, we had three classes of securities registered under the Exchange Act:

 

		(i)	our
                                            Class A ordinary shares, par value $0.0001 per share (“Class A ordinary shares”);

 

		(ii)	warrants
                                            to purchase shares of our Class A ordinary shares; and

 

		(iii)	units
                                            consisting of one Class A ordinary share and one-half of a redeemable warrant to purchase
                                            one Class A ordinary share.

 

In
addition, this Description of Securities also includes a description of our Class B ordinary shares, par value $0.0001 per share (“Class
B ordinary shares”), which are not registered under Section 12 of the Exchange Act but are convertible into Class A ordinary shares.
The description of the Class B ordinary shares is necessary to understand the material terms of the Class A ordinary shares.

 

Units

 

Each
unit consists of one Class A ordinary share and one-half of a redeemable warrant. Each warrant entitles the holder to purchase one Class
A ordinary share. Pursuant to the warrant agreement dated November 2, 2021 between the Company and Continental Stock Transfer & Trust
Company, as warrant agent, a warrant holder may exercise its warrants only for a whole number of Class A ordinary shares. This means
that only at least two warrants may be exercised at any given time by a warrant holder.

 

The
Class A ordinary shares and warrants began trading separately on February 7, 2022, and since that time, holders have the option to continue
to hold units or separate their units into the component pieces.

 

Ordinary
Shares

 

As
of March 15, 2022, 25,945,715 of our ordinary shares were issued and outstanding, consisting of:

 

		●	20,945,715
                                            Class A ordinary shares, comprised of 20,000,000 Class A ordinary shares included in the
                                            units sold in our initial public offering, and an additional 945,715 Class A ordinary shares
                                            included in the units sold to Spree Operandi U.S. LP, the wholly-owned subsidiary of our
                                            sponsor, Spree Operandi, LP (collectively, those two entities, the “sponsor”),
                                            in a private offering simultaneously with the closing of our IPO; and

		 	 

		●	5,000,000
                                            Class B ordinary shares held by our sponsor.

 

Class
A ordinary shareholders and Class B ordinary shareholders of record are entitled to one vote for each share held on all matters to be
voted on by shareholders, except as required by law; provided that, prior to our initial business combination, only holders of our Class
B ordinary shares will have the right to vote on the election of directors, and holders of a majority of our Class B ordinary shares
may remove a member of the board of directors for any reason. With respect to any other matter submitted to a vote of our shareholders,
including any vote in connection with our initial business combination, except as required by law, holders of Class A ordinary shares
and holders of Class B ordinary shares will vote together as a single class. Unless specified in the Companies Law, our amended and restated
memorandum and articles of association or applicable stock exchange rules, the affirmative vote of a majority of our ordinary shares
that are voted is required to approve any such matter voted on by our shareholders. Approval of certain actions will require a special
resolution under Cayman Islands law and pursuant to our amended and restated memorandum and articles of association; such actions include
amending our amended and restated memorandum and articles of association and approving a statutory merger or consolidation with another
company. Directors are elected for a term of two years. There is no cumulative voting with respect to the election of directors, with
the result that the holders of more than 50% of the Class B ordinary shares voted for the election of directors can elect all of the
directors prior to our initial business combination. Our shareholders are entitled to receive ratable dividends when, as and if declared
by the board of directors out of funds legally available therefor.

 

    

     

    

 

Because
our amended and restated memorandum and articles of association authorize the issuance of up to 500,000,000 Class A ordinary shares,
if we were to enter into a business combination, we may (depending on the terms of such a business combination) be required to increase
the number of Class A ordinary shares which we are authorized to issue at the same time as our shareholders vote on the business combination
to the extent we seek shareholder approval in connection with our initial business combination.

 

In
accordance with NYSE corporate governance requirements, we are not required to hold an annual meeting until one year after our first
fiscal year end following our listing on the NYSE. There is no requirement under the Companies Law for us to hold annual or general meetings
to elect directors. Consequently, because the term of our directors elected prior to our initial public offering will extend for two
years, we will not be re-electing directors at our initial annual general meeting held following our initial public offering. It
is also possible that we may not hold an annual general meeting prior to the consummation of our initial business combination. Our amended
and restated memorandum and articles of association furthermore provide that only our board of directors — and not our shareholders
— have the right to call a general meeting of shareholders.

 

We
will provide our public shareholders with the opportunity to redeem all or a portion of their public shares upon the completion of our
initial business combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account
as of two business days prior to the consummation of our initial business combination, including interest (which interest shall be net
of taxes payable), divided by the number of then issued and outstanding public shares, subject to the limitations described herein. At
the completion of our initial business combination, we will be required to purchase any Class A ordinary shares properly delivered for
redemption and not withdrawn. The amount in the trust account is initially anticipated to be $10.20 per public share. Additionally, each
public shareholder may elect to redeem its public shares without voting and, if they do vote, irrespective of whether they vote for or
against the proposed business combination. Our initial shareholders have entered into a letter agreement with us dated December 15, 2021
(the “letter agreement”), pursuant to which they have agreed to waive their redemption rights with respect to their Class
B ordinary shares and any public shares held by them in connection with the completion of our initial business combination. Our directors
and officers have also entered into the letter agreement, imposing similar obligations on them with respect to public shares acquired
by them, if any. Permitted transferees of our initial shareholders, officers or directors will be subject to the same obligations.

 

If
we seek shareholder approval of our initial business combination and we do not conduct redemptions in connection with our initial business
combination pursuant to the tender offer rules, our amended and restated memorandum and articles of association provide that a public
shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as
a “group” (as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to
more than an aggregate of 15% of the ordinary shares sold in our initial public offering, which we refer to as the “Excess Shares,”
without our prior consent. However, we would not be restricting our shareholders’ ability to vote all of their shares (including
Excess Shares) for or against our initial business combination. Our shareholders’ inability to redeem the Excess Shares will reduce
their influence over our ability to complete our initial business combination, and such shareholders could suffer a material loss in
their investment if they sell such Excess Shares on the open market. Additionally, such shareholders will not receive redemption distributions
with respect to the Excess Shares if we complete the business combination. As a result, such shareholders will continue to hold that
number of shares exceeding 15% and, in order to dispose such shares would be required to sell their shares in open market transactions,
potentially at a loss.

 

    2

     

    

 

If
we seek shareholder approval in connection with our initial business combination, our initial shareholders have agreed (and their permitted
transferees will agree), pursuant to the terms of the letter agreement, to vote their Class B ordinary shares and any public shares held
by them in favor of our initial business combination. As a result, in addition to our initial shareholders’ Class B ordinary shares
and private shares, we would need 7,027,143, or 35.1%, of the 20,000,000 public shares sold in our initial public offering to be
voted in favor of a transaction  (assuming all issued and outstanding shares are voted), subject to any higher threshold as is required
by Cayman Islands or other applicable law, in order to have such initial business combination approved. Our directors and officers have
also entered into the letter agreement, imposing similar obligations on them with respect to public shares acquired by them, if any.

 

Pursuant
to our amended and restated memorandum and articles of association, if we are unable to complete our initial business combination within
15 months following our initial public offering or during (a) an additional three months (for a total of 18 months) if we have
filed (i) a Form 8-K including a definitive merger or acquisition agreement or (ii) a proxy statement, registration statement or
similar filing for an initial business combination but have not completed the initial business combination within such initial 15-month period,
(b) up to two instances of an additional three months per instance for a total of up to 18 months or 21 months, respectively,
by depositing into the trust account for each three month extension an amount equal to $0.10 per unit or (c) for an additional period
as a result of a shareholder vote to amend our amended and restated memorandum and articles of association (in each case, an “Extension
Period”), we will (1) cease all operations except for the
purpose of winding up, (2) as promptly as reasonably possible but not more than 10 business days thereafter, subject to funds lawfully
available therefor, redeem 100% of the public shares, at a per-share price, payable in cash, equal to the aggregate amount then
on deposit in the trust account, including interest (less up to $100,000 of interest to pay dissolution expenses and which interest shall
be net of taxes payable), divided by the number of then issued and outstanding public shares, which redemption will completely extinguish
public shareholders’ rights as shareholders (including the right to receive further liquidating distributions, if any) and (3)
as promptly as reasonably possible following such redemption, subject to the approval of our remaining shareholders and our board of
directors, dissolve and liquidate, subject in each case to our obligations under Cayman Islands law to provide for claims of creditors
and the requirements of other applicable law. Our initial shareholders have entered into a letter agreement with us, pursuant to which
they have agreed to waive their rights to liquidating distributions from the trust account with respect to their Class B ordinary shares
if we fail to complete our initial business combination within 15 months from the closing of our initial public offering or during
any Extension Period. However, if our initial shareholders acquire public shares after our initial public offering, they will be entitled
to liquidating distributions from the trust account with respect to those public shares if we fail to complete our initial business combination
within the prescribed time period.

 

In
the event of a liquidation, dissolution or winding up of the company after a business combination, our shareholders at such time will
be entitled to share ratably in all assets remaining available for distribution to them after payment of liabilities and after provision
is made for each class of shares, if any, having preference over the ordinary shares. Our shareholders have no preemptive or other subscription
rights. There are no sinking fund provisions applicable to the ordinary shares, except that we will provide our shareholders with the
opportunity to redeem their public shares for cash equal to their pro rata share of the aggregate amount then on deposit in the trust
account, including interest (which interest shall be net of taxes payable), upon the completion of our initial business combination,
subject to the limitations described herein.

 

    3

     

    

 

Class
B Ordinary Shares

 

The
Class B ordinary shares are identical to the Class A ordinary shares included in the units sold in our initial public offering, and holders
of Class B ordinary shares have the same shareholder rights as public shareholders, except that: (1) prior to our initial business combination,
only holders of the Class B ordinary shares have the right to vote on the appointment of directors and holders of a majority of our Class
B ordinary shares may remove a member of the board of directors for any reason; (2) the Class B ordinary shares are subject to certain
transfer restrictions, as described in more detail below; (3) our sponsor has entered into a letter agreement with us, pursuant to which
it has agreed to waive: (x) its redemption rights with respect to its Class B ordinary shares and any public shares held by it in connection
with the completion of our initial business combination (and not seek to sell its shares to us in any tender offer we undertake in connection
with our initial business combination); (y) its redemption rights with respect to its Class B ordinary shares and any public shares held
by it in connection with a shareholder vote to approve an amendment to our amended and restated memorandum and articles of association
(A) that would affect our public shareholders’ ability to convert or sell their shares to us in connection with a business combination
as described herein or to the redemption rights provided to shareholders if we do not complete our initial business combination within
18 months from the closing of our initial public offering, as described in this prospectus, or (B) with respect to any other provision
relating to shareholders’ rights or pre-initial business combination activity; and (z) their rights to liquidating distributions
from the trust account with respect to any Class B ordinary shares they hold if we fail to complete our initial business combination
within 18 months from the closing of our initial public offering (although they will be entitled to liquidating distributions from the
trust account with respect to any public shares they hold if we fail to complete our initial business combination within the prescribed
time frame); (4) the Class B ordinary shares will automatically convert into our Class A ordinary shares as described below and (5) the
Class B ordinary shares are entitled to registration rights. In addition, our directors and officers have also entered into the letter
agreement with respect to public shares acquired by them, if any.

 

The
Class B ordinary shares will convert into Class A ordinary shares on a one-for-one basis (a) at any time and from time to time at
the option of the holders thereof, or (b) automatically on the day of completion of our initial business combination, subject to adjustment
as provided herein. In the case that additional Class A ordinary shares, or equity-linked securities convertible or exercisable
for Class A ordinary shares, are issued or deemed issued in excess of the amounts issued in our initial public offering and related to
the closing of our initial business combination, the ratio at which Class B ordinary shares will convert into Class A ordinary shares
will be adjusted (subject to waiver by holders of a majority of the Class B ordinary shares then in issue) so that the number of Class
A ordinary shares issuable upon conversion of all Class B ordinary shares will equal, in the aggregate, on an as-converted basis, 20%
of the sum of our ordinary shares issued and outstanding upon the completion of our initial public offering plus the number of Class
A ordinary shares and equity-linked securities issued or deemed issued in connection with our initial business combination (net
of redemptions), excluding any Class A ordinary shares or equity-linked securities issued, or to be issued, to any seller in our
initial business combination..

 

With
certain limited exceptions, the Class B ordinary shares are not transferable, assignable or salable (except to our officers and directors
and other persons or entities affiliated with our sponsor, each of whom will be subject to the same transfer restrictions) until the
earlier of (A) one year after the completion of our initial business combination or (B) subsequent to our initial business combination,
(x) if the last reported sale price of the ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share
capitalizations, rights issuances, subdivisions, reorganizations, recapitalizations and the like) for any 20 trading days within
any 30-trading day period commencing at least 150 days after our initial business combination, or (y) the date following the completion
of our initial business combination on which we complete a liquidation, merger, amalgamation, share exchange, reorganization or other
similar transaction that results in all of our public shareholders having the right to exchange their Class A ordinary shares for cash,
securities or other property.

 

    4

     

    

 

Register
of Members (Shareholders)

 

Under
Cayman Islands law, we must keep a register of members (i.e., shareholders) and there shall be entered therein:

 

	 	●	the
    names and addresses of the members, a statement of the shares held by each member, and of the amount paid or agreed to be considered
    as paid, on the shares of each member and the voting rights of shares;

 

	 	●	the
    date on which the name of any person was entered on the register as a member; and

 

	 	●	the
    date on which any person ceased to be a member.

 

Under
Cayman Islands law, the register of members of our company is prima facie evidence of the matters set out therein (i.e., the register
of members will raise a presumption of fact on the matters referred to above unless rebutted) and a member registered in the register
of members shall be deemed as a matter of Cayman Islands law to have legal title to the shares as set against its name in the register
of members. Upon the closing of this public offering, the register of members shall be immediately updated to reflect the issue of shares
by us. Once our register of members has been updated, the shareholders recorded in the register of members shall be deemed to have legal
title to the shares set against their name. However, there are certain limited circumstances where an application may be made to a Cayman
Islands court for a determination as to whether the register of members reflects the correct legal position. Further, the Cayman Islands
court has the power to order that the register of members maintained by a company should be rectified where it considers that the register
of members does not reflect the correct legal position. If an application for an order for rectification of the register of members were
made in respect of our ordinary shares, the validity of those shares may be subject to re-examination by a Cayman Islands court.

 

Preference
Shares

 

Our
amended and restated memorandum and articles of association authorize 5,000,000 preference shares and provide that preference shares
may be issued from time to time in one or more series. Our board of directors is authorized to fix the voting rights, if any, designations,
powers, preferences, the relative, participating, optional or other special rights and any qualifications, limitations and restrictions
thereof, applicable to the shares of each series. Our board of directors is able to, without shareholder approval, issue preference shares
with voting and other rights that could adversely affect the voting power and other rights of the holders of the Class A ordinary shares
and could have anti-takeover effects. The ability of our board of directors to issue preference shares without shareholder approval
could have the effect of delaying, deferring or preventing a change of control of us or the removal of existing management. We have no
preference shares issued and outstanding at the date hereof. Although we do not currently intend to issue any preference shares, we cannot
assure you that we will not do so in the future.

 

Warrants

 

Each
whole warrant entitles the registered holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment
as discussed below, at any time commencing 30 days following our initial business combination. However, no warrants will be exercisable
for cash unless a prospectus relating to such Class A ordinary shares and related registration statement of which such prospectus forms
a part are then current and in effect. The warrants are exercisable for cash only, and are not exercisable on a cashless basis. 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 warrants that are part of the private units, as well as any warrants underlying additional units we issue to our sponsor, officers,
directors or their affiliates in payment of working capital loans made to us, are identical to the warrants underlying the units offered
and sold in our initial public offering, except that such warrants are not redeemable by us, in each case so long as they are still held
by our sponsor or its permitted transferees.

 

We
may call the warrants for redemption (excluding the private warrants and any warrants underlying additional units issued to our sponsor,
initial shareholders, officers, directors or their affiliates in payment of working capital loans made to us), in whole and not in part,

 

	 	●	at
    any time after the warrants become exercisable;

 

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

 

    5

     

    

 

	 	●	at
    a price of $0.01 per warrant if, and only if, the reported last sale price of the Class A ordinary shares equals or exceeds $18.00
    per share (as adjusted for share sub-divisions, share capitalizations, reorganizations and recapitalizations), for any 20 trading
    days within a 30 trading day period commencing 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, a registration statement is then in effect with respect to the Class A ordinary shares underlying such warrants.

 

The
right to exercise will be forfeited unless the warrants are exercised prior to the date specified in the notice of redemption. On and
after the redemption date, a record holder of a warrant will have no further rights except to receive the redemption price for such holder’s
warrant upon surrender of such warrant.

 

The
redemption criteria for our warrants have been established at a price which is intended to provide warrant holders a reasonable premium
to the initial exercise price and provide a sufficient differential between the then-prevailing share price and the warrant exercise
price so that if the share price declines as a result of our redemption call, the redemption will not cause the share price to drop below
the exercise price of the warrants.

 

The
warrants were issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant
agent, and us, dated December 15, 2021. The warrant agreement provides that the terms of the warrants may be amended without the consent
of any holder to cure any ambiguity or correct any defective provision, but requires the approval, by written consent or vote, of the
holders of at least 50% of the then outstanding public warrants in order to make any change that adversely affects the interests of the
registered holders.

 

The
exercise price and number of Class A ordinary shares issuable on exercise of the warrants may be adjusted in certain circumstances including
in the event of a share capitalization or our recapitalization, reorganization, merger or consolidation. However, the warrants will not
be adjusted for issuances of Class A ordinary shares at a price below their respective exercise prices.

In
addition, if (x) we issue additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection with
the closing of our initial business combination at a Newly Issued Price of less than $9.20 per Class A ordinary share, (y) Class B ordinary
shares, the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon,
available for the funding of our initial business combination on the date of the consummation of our initial business combination (net
of redemptions), and (z) the Market Value is below $9.20 per share, then the exercise price of the warrants will be adjusted (to the
nearest cent) to be equal to 115% of the greater of (i) the Market Value or (ii) the Newly Issued Price and the $18.00 per share redemption
trigger price will be adjusted (to the nearest cent) to be equal to 180% of the greater of (i) the Market Value or (ii) the Newly Issued
Price.

 

The
warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant
agent, with the exercise form on the reverse side of the warrant certificate completed and executed as indicated, accompanied by full
payment of the exercise price, by certified or official bank check payable to us, for the number of warrants being exercised. The warrant
holders do not have the rights or privileges of holders of Class A ordinary shares and any voting rights until they exercise their warrants
and receive Class A ordinary shares. After the issuance of Class A ordinary shares upon exercise of the warrants, each holder will be
entitled to one vote for each share held of record on all matters to be voted on by shareholders.

 

Under
the terms of the warrant agreement, we have agreed that as soon as practicable, but in no event later than 15 business days after
the closing of our initial business combination, we will use our reasonable best efforts to file with the SEC a post-effective amendment
to the registration statement for our initial public offering or a new registration statement covering the issuance, under the Securities
Act, of the Class A ordinary shares issuable upon exercise of the warrants and to use our reasonable best efforts to cause the same to
become effective within 60 business days after the closing of our initial business combination and to maintain the effectiveness of such
registration statement, and a current prospectus relating thereto, until the expiration of the warrants in accordance with the provisions
of the warrant agreement. However, we cannot assure you that we will be able to do so and, if we do not maintain a current prospectus
relating to the Class A ordinary shares issuable upon exercise of the warrants, holders will be unable to exercise their warrants.

 

    6

     

    

 

Warrant
holders may elect to be subject to a restriction on the exercise of their warrants such that an electing warrant holder would not be
able to exercise their warrants to the extent that, after giving effect to such exercise, such holder would beneficially own in excess
of 9.8% of the Class A ordinary shares outstanding.

No
fractional shares will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive
a fractional interest in a share, we will, upon exercise, round up to the nearest whole number the number of Class A ordinary shares
to be issued to the warrant holder.

 

Dividends

 

We
have not paid any cash dividends on our Class A ordinary shares to date and do not intend to pay cash dividends prior to the completion
of a 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 a business combination. The payment of any dividends subsequent
to a business combination will be within the discretion of our then board of directors. It is the present intention of our board of directors
to retain all earnings, if any, for use in our business operations and, accordingly, our board does not anticipate declaring any dividends
in the foreseeable future.

 

Our
Transfer Agent and Warrant Agent

 

The
transfer agent for our ordinary shares and warrant agent for our warrants is Continental Stock Transfer & Trust Company. We have
agreed to indemnify Continental Stock Transfer & Trust Company in its roles as transfer agent and warrant agent, its agents and each
of its shareholders, directors, officers and employees against all liabilities, including judgments, costs and reasonable counsel fees
that may arise out of acts performed or omitted for its activities in that capacity, except for any liability due to any gross negligence,
willful misconduct or bad faith of the indemnified person or entity.

 

Our
Amended and Restated Memorandum and Articles of Association

 

Our
amended and restated memorandum and articles of association contain certain requirements and restrictions relating to our initial public
offering that apply to us until the completion of our initial business combination. These provisions cannot be amended without a special
resolution. As a matter of Cayman Islands law, a resolution is deemed to be a special resolution where it has been approved by either
(i) at least two-thirds (or any higher threshold specified in a company’s articles of association) of a company’s shareholders
who attend and vote at a general meeting for which notice specifying the intention to propose the resolution as a special resolution
has been given; or (ii) if so authorized by a company’s articles of association, by a unanimous written resolution of all of the
company’s shareholders. Our amended and restated memorandum and articles of association provide that special resolutions must be
approved either by at least two-thirds of our shareholders who attend and vote at a general meeting for which notice specifying the intention
to propose the resolution as a special resolution has been given (i.e., the lowest threshold permissible under Cayman Islands law), or
by a unanimous written resolution of all of our shareholders.

 

    7

     

    

 

Our
sponsor and its affiliates, who collectively beneficially own approximately 20.0% of our ordinary shares following the close of our initial
public offering and the concurrent private placement, participate in any vote to amend our amended and restated memorandum and articles
of association and have the discretion to vote in any manner they choose. Specifically, our amended and restated memorandum and articles
of association provide, among other things, that:

 

	 	●	if
    we are unable to complete our initial business combination within 18 months from the closing of our initial public offering, we will
    (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business
    days thereafter, subject to lawfully available funds therefor, redeem 100% of the public shares, at a per-share price, payable in
    cash, equal to the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of taxes
    payable and less up to $100,000 of interest to pay dissolution expenses) divided by the number of then issued and outstanding public
    shares, which redemption will completely extinguish public shareholders’ rights as shareholders (including the right to receive
    further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such
    redemption, subject to the approval of our remaining shareholders and our board of directors, liquidate and dissolve;

 

	 	●	prior
    to our initial business combination, we may not issue additional ordinary shares that would entitle the holders thereof to (i) receive
    funds from the trust account or (ii) vote on any initial business combination;

 

	 	●	although
    we do not intend to enter into a business combination with a target business that is affiliated with our sponsor, our directors or
    our officers, we are not prohibited from doing so. In the event we enter into such a transaction, we, or a committee of independent
    directors, will obtain an opinion from an independent investment banking firm or another independent firm that commonly renders valuation
    opinions for the type of company we are seeking to acquire or an independent accounting firm, that such a business combination is
    fair to our company from a financial point of view;

 

	 	●	if
    a shareholder vote on our initial business combination is not required by law and we do not decide to hold a shareholder vote for
    business or other legal reasons, we will offer to redeem our public shares pursuant to Rule 13e-4 and Regulation 14E of the Exchange
    Act, and will file tender offer documents with the SEC prior to completing our initial business combination which contain substantially
    the same financial and other information about our initial business combination and the redemption rights as is required under Regulation
    14A of the Exchange Act;
	 	 	 
	 	●	so
    long as we obtain and maintain a listing for our securities on the NYSE, NYSE rules require that our initial business combination
    must occur with one or more target businesses that together have an aggregate fair market value of at least 80% of the assets held
    in the trust account (excluding the deferred advisory fee and taxes payable) at the time of our signing a definitive agreement in
    connection with our initial business combination;

 

	 	●	if
    our shareholders approve an amendment to our amended and restated memorandum and articles of association that would (i) modify
    the substance or timing of our obligation to allow redemption in connection with our initial business combination or to redeem our
    public shares if we do not complete our initial business combination within 15 months from the closing of our initial public
    offering or during any Extension Period or (ii) with respect to the other provisions relating to shareholders’ rights
    or pre-business combination activity, we will provide our public shareholders with the opportunity to redeem all or a portion
    of their ordinary shares upon such approval at a per-share price, payable in cash, equal to the aggregate amount then on deposit
    in the trust account, including interest (which interest shall be net of taxes payable) divided by the number of then issued and
    outstanding public shares; and

 

	 	●	we
    will not effectuate our initial business combination with another blank check company or a similar company with nominal operations.

 

    8

     

    

 

In
addition, our amended and restated memorandum and articles of association provide that under no circumstances will we redeem our public
shares in an amount that would cause our net tangible assets to be less than $5,000,001 either immediately prior to or upon consummation
of our initial business combination.

 

The
Companies Law permits a company incorporated in the Cayman Islands to amend its memorandum and articles of association with the approval
of the holders of at least two-thirds of such company’s issued and outstanding ordinary shares present (in person or via proxy)
and voting at a general meeting. A company’s articles of association may specify that the approval of a higher majority is required
but, provided the approval of the required majority is obtained, any Cayman Islands exempted company may amend its memorandum and articles
of association regardless of whether its memorandum and articles of association provides otherwise. Accordingly, with the requisite shareholder
approval, we could amend any of the provisions relating to our proposed offering, structure and business plan which are contained in
our amended and restated memorandum and articles of association. Nevertheless, we view all of these provisions as binding obligations
to our shareholders and neither we, nor our officers or directors, will take any action to amend or waive any of these provisions unless
we provide dissenting public shareholders with the opportunity to redeem their public shares.

 

Shares
Eligible for Future Sale

 

Following
our initial public offering we have 25,945,715 ordinary shares issued and outstanding. Of these shares, the 20,000,000 Class A ordinary
shares sold in our initial public offering are freely tradable without restriction or further registration under the Securities Act,
except for any shares purchased by one of our affiliates within the meaning of Rule 144 under the Securities Act. All of the remaining
5,945,715 Class B ordinary shares and private shares are restricted securities under Rule 144, in that they were issued in private transactions
not involving a public offering, and are subject to transfer restrictions as described elsewhere herein.

 

Rule
144

 

A
person who has beneficially owned restricted Class A ordinary shares 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. Persons who have beneficially owned restricted Class A ordinary shares for at least six months but who are our affiliates at
the time of, or 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 a number of shares that does not exceed the greater of either of the following:

 

	 	●	1%
    of the total number of ordinary shares then issued and outstanding, which equals 259,457 shares after our initial public offering,
    on an as converted basis; or

 

	 	●	the
    average weekly trading volume of the Class A ordinary shares during the four calendar weeks preceding the filing of a notice on Form
    144 with respect to the sale.

 

Sales
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

 

Historically,
the SEC staff had taken the position that Rule 144 is not available for the resale of securities initially issued by companies that are,
or previously were, blank check companies, like us. The SEC has codified and expanded this position in the amendments discussed above
by prohibiting the use of Rule 144 for resale of securities issued by any shell companies (other than business combination related shell
companies) or any issuer that has been at any time previously a shell company. The SEC has provided an important exception to this prohibition,
however, 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 material 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.

 

    9

     

    

 

As
a result, our sponsor will be able to sell its Class B ordinary shares and private units (including private shares and private warrants
contained therein) pursuant to Rule 144 without registration one year after we have completed our initial business combination.

 

Registration
Rights

 

The
holders of the Class B ordinary shares, private units (consisting of private shares and private warrants) and warrants that may be issued
on conversion of working capital loans (and any ordinary shares issuable upon the exercise of the private warrants or warrants issued
upon conversion of the working capital loans and upon conversion of the Class B ordinary shares), are entitled to registration rights
pursuant to an agreement signed prior to the effective date of our initial public offering. The holders of a majority of these securities
are entitled to make up to two demands that we register such securities. The holders of the majority of the Class B ordinary shares can
elect to exercise these registration rights at any time commencing three months prior to the date on which these Class B ordinary shares
are to be released from their transfer restrictions. The holders of a majority of the private units (consisting of private shares and
private warrants) and shares issued to our sponsor, officers, directors or their affiliates upon exercise of warrants issued in payment
of working capital loans made to us can elect to exercise these registration rights at any time after we consummate a business combination.
In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent
to our consummation of a business combination. We will bear the expenses incurred in connection with the filing of any such registration
statements.

 

Exclusive
Forum

 

Our
amended and restated memorandum and articles of association provide that unless we consent in writing to the selection of an alternative
forum, the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting
a cause of action arising under the Securities Act (for the sake of clarification, this provision does not apply to causes of action
arising under the Exchange Act). Our amended and restated articles of association also provide that unless we consent in writing to the
selection of an alternative forum, the courts of the Cayman Islands shall have exclusive jurisdiction for any derivative action or proceeding
brought on behalf of our company, any action asserting a breach of a fiduciary duty owed by any of our directors, officers or other employees
to our company or our shareholders or any action asserting a claim arising pursuant to any provision of the Companies Act.

 

Listing
of Securities

 

Our
units, Class A ordinary shares, and warrants are listed on the New York Stock Exchange, or NYSE, under the symbols “SHAP/U,”
“SHAP” and “SHAP/W”.  Following February 7, 2022, Class A ordinary shares and warrants may be traded separately
from the units on the NYSE.

 

 

10EX-4.1

  EXHIBIT 4.1

  DESCRIPTION OF SECURITIES

    

  Unless the context otherwise requires, references in this exhibit to “we,” “our,” “AST SpaceMobile” and the “Company” refer to the business and operations of AST SpaceMobile, Inc. (formerly known as New Providence Acquisitions Corp.) and its consolidated subsidiaries.

   

  The following summary of the material terms of our capital stock is not intended to be a complete summary of the rights and preferences of such securities and is qualified in its entirety by reference to our second Certificate of Incorporation (the “Certificate of Incorporation”), our amended and restated Bylaws (the “Bylaws”) and the Warrant Agreement, dated as of September 13, 2019, between Continental Stock Transfer & Trust Company and the Company (the “Warrant Agreement”), all of which are attached as exhibits to our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”). The summary below is also qualified by reference to the provisions of the General Corporation Law of the State of Delaware (the “DGCL”), as applicable. You are encouraged to read the applicable provisions of the DGCL, the Charter and the Bylaws in their entirety for a complete description of the rights and preferences of our securities.

    

  Authorized and Outstanding Capital Stock

    

  Our Charter authorizes the issuance of 1,225,000,000 shares, of which 800,000,000 shares are shares of Class A common stock, par value $0.0001 per share (“Class A Common Stock”), 200,000,000 shares are shares of Class B common stock, par value $0.0001 per share (“Class B Common Stock”), 125,000,000 shares are shares of Class C common stock, par value $0.0001 per share (“Class C Common Stock”, and, together with the Class A Common Stock and Class B Common Stock, the “Common Stock”), 100,000,000 shares are shares of preferred stock, par value $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company’s board of directors (the “Board of Directors”).

    

  As of March 31, 2022, we had approximately 51,782,154 shares of Class A Common Stock, 51,636,922 shares of Class B Common Stock, 78,163,078 shares of Class C Common Stock and warrants to purchase 17,600,000 shares of Class A Common Stock, issued and outstanding. As of such date, there were 22 holders of record of Class A Common Stock, seven holders of record of Class B Common Stock, one holder of record of Class C Common Stock and five holders of record of warrants.

    

  Common Stock

    

  Voting

    

  Under our Charter, holders of Class A Common Stock, Class B Common Stock and Class C Common Stock will vote together as a single class on all matters submitted to the stockholders for their vote or approval, except as required by applicable law. Holders of Class A Common Stock and Class B Common Stock are entitled to one vote per share on all matters submitted to the stockholders for their vote or approval. Prior to the Sunset Date, the holders of Class C Common Stock are entitled to the lesser of (i) 10 votes per share and (ii) the Class C Share Voting Amount on all matters submitted to stockholders for their vote or approval. From and after the Sunset Date, which, as defined in the Stockholders’ Agreement, is the earliest to occur of (i) the retirement or resignation of Abel Avellan, AST SpaceMobile’s Founder, Chairman and Chief Executive Officer (“Avellan”) from the Board of Directors, (ii) the date on which Avellan and his permitted transferees beneficially own less than 20% of the Class A Common Stock that Avellan beneficially owns as of immediately after the closing of the initial business combination (the “Business Combination”) contemplated by that certain Equity Purchase Agreement, dated as of December 15, 2020, by and among AST & Science LLC (“AST & Science”), New Providence Acquisition Corp. (“NPA”), New Providence Management LLC, the AST Existing Equityholder Representative and the AST Existing Equityholders (the “Equity Purchase Agreement”, and such closing of the Business Combination, the “Closing”) and (iii) Avellan’s death or permanent incapacitation, holders of Class C Common Stock will be entitled to one vote per share.

    

  As of March 31, 2022, Avellan and his permitted transferees control, as a group, approximately 88.3% of the combined voting power of the Common Stock as a result of their ownership of all of the Class C Common Stock. Accordingly, Avellan controls the Company’s business policies and affairs and can control any action requiring the general approval of its stockholders, including the election of our Board of Directors, the adoption of amendments to 

   

   

  

  EXHIBIT 4.1

  its certificate of incorporation and bylaws and approval of any merger or sale of substantially all of its assets. Until the Sunset Date, Avellan will continue to control the outcome of matters submitted to the stockholders.

    

  Dividends

    

  The holders of Class A Common Stock are entitled to receive dividends, as and if declared by our Board of Directors out of legally available funds. With respect to stock dividends, holders of Class A Common Stock must receive Class A Common Stock.

    

  The holders of Class B Common Stock and Class C Common Stock will not have any right to receive dividends other than stock dividends consisting of shares of Class B Common Stock or Class C Common Stock, as applicable, in each case paid proportionally with respect to each outstanding share of Class B Common Stock or Class C Common Stock.

    

  Liquidation or Dissolution

    

  Upon our liquidation or dissolution, the holders of all classes of Common Stock are entitled to their respective par value, and the holders of Class A Common Stock will then be entitled to share ratably in those of our assets that are legally available for distribution to stockholders after payment of liabilities and subject to the prior rights of any holders of preferred stock then outstanding. Other than their par value, the holders of Class B Common Stock and Class C Common Stock will not have any right to receive a distribution upon a liquidation or dissolution of the Company.

    

  Conversion, Transferability and Exchange

    

  Subject to the terms of the Fifth Amended and Restated Limited Liability Company Operating Agreement of AST & Science (the “A&R Operating Agreement”), the members of AST & Science (other than the Company) may from time to time cause AST & Science to redeem any or all of their units of ownership interest in AST & Science which entitles the holder thereof to the distributions, allocations, and other rights under the A&R Operating Agreement (the “AST Common Units”) in exchange for, at the Company’s election (subject to certain exceptions), either cash (based on the market price for a share of the Class A Common Stock) (the “Existing Equityholder Cash Out”) or shares of Class A Common Stock (the “Existing Equityholder Share Settlement”); provided that the Company’s election to effect such redemption as an Existing Equityholder Cash Out or an Existing Equityholder Share Settlement must be approved by a committee of the our Board of Directors comprised solely of directors who were not nominated pursuant to the Stockholders’ Agreement or other contractual right by, and are not otherwise affiliated with, holders of Class B Common Stock or Class C Common Stock. At the Company’s election, such transaction may be effectuated via a direct exchange of Class A Common Stock or cash by the Company for the redeemed AST Common Units (an “Existing Equityholder Direct Exchange”).

    

  Our Charter provides that (a) if a holder of Class B Common Stock exercises either the Existing Equityholder Cash Out, or the Existing Equityholder Share Settlement or Existing Equityholder Direct Exchange (collectively, the “Existing Equityholder Conversion”), then the number of shares of Class B Common Stock held by such holder equal to the number of AST Common Units so redeemed, cashed out or exchanged will automatically be cancelled by the Company for no consideration and (b) if a holder of Class C Common Stock (i) exercises the Existing Equityholder Cash Out or (ii) exercises the Existing Equityholder Share Settlement or Existing Equityholder Direct Exchange and subsequently transfers the Class A Common Stock issued in connection with such redemption and exchange to a person or entity other than Avellan and his permitted transferees, then the number of Class C Common Stock held by such holder equal to the number of AST Common Units so redeemed and exchanged then transferred or cashed out will automatically be cancelled by the Company for no consideration. If Avellan and his permitted transferees exercise the Existing Equityholder Conversion, then the voting power of the Class C Common Stock is reduced commensurate with the voting power of the newly issued Class A Common Stock. The voting power of the Class C Common Stock will be further adjusted if Avellan or his permitted transferees transfers Class A Common Stock to a person or entity that is not Avellan or his permitted transferees.

    

   

   

  

  EXHIBIT 4.1

  We may not issue Class B Common Stock or Class C Common Stock such that after the issuance of Class B Common Stock or Class C Common Stock the holder of such stock does not hold an identical number of AST Common Units.

    

  Other Provisions

    

  None of the Class A Common Stock, Class B Common Stock or Class C Common Stock has any pre-emptive or other subscription rights.

    

  Preferred Stock

    

  We are authorized to issue up to 100,000,000 shares of preferred stock. Our Board of Directors is authorized, subject to limitations prescribed by Delaware law and our Charter, to determine the terms and conditions of the preferred stock, including whether the shares of preferred stock will be issued in one or more series, the number of shares to be included in each series and the powers (including the voting power), designations, preferences and rights of the shares. Our Board of Directors also will be authorized to designate any qualifications, limitations or restrictions on the shares without any further vote or action by the stockholders. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of the Company and may adversely affect the voting and other rights of the holders of Class A Common Stock, Class B Common Stock and Class C Common Stock, which could have a negative impact on the market price of the Class A Common Stock.

   

  Redeemable Warrants

    

  Public Warrants

    

  Each whole 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 the Business Combination. Pursuant to the Warrant Agreement, a warrant holder may exercise its warrants only for a whole number of shares of Class A Common Stock. This means that only a whole warrant may be exercised at any given time by a warrant holder. The warrants will expire on April 6, 2026, five years after the completion of the Business Combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.

    

  We are not obligated to deliver any shares of Class A Common Stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to the shares of Class A Common Stock underlying the warrants is then effective and a prospectus relating thereto is current, subject to us satisfying our obligations described below with respect to registration. No warrant will be exercisable and we will not be obligated to issue shares of Class A Common Stock upon exercise of a warrant unless, if at the time, the Class A Common Stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to a warrant, the holder of such warrant will not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In no event will we be required to net cash settle any warrant.

    

  We are obligated to file and maintain an effective registration statement under the Securities Act covering the shares of Class A Common Stock issuable upon exercise of the warrants and to use commercially reasonable best efforts to cause such registration statement to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the warrants in accordance with the provisions of the Warrant Agreement. Pursuant to such obligations, on May 6, 2021, we filed a Form S-1 covering the shares of Class A Common Stock issuable upon exercise. Notwithstanding the above, if Class A Common Stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement, and in the event we do not so elect, we will use our commercially reasonable best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

    

   

   

  

  EXHIBIT 4.1

  We may call the warrants for redemption:

    

  			
	  
	●
	in whole and not in part;

	  
	  
	  

	  
	●
	at a price of $0.01 per warrant;

	  
	  
	  

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

	  
	  
	  

	  
	●
	if, and only if, the last reported sale price of the Class A Common Stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three trading days before we send the notice of redemption to the warrant holders.

    

  We may not exercise our redemption right if the issuance of shares of Class A Common Stock upon exercise of the warrants is not exempt from registration or qualification under applicable state blue sky laws or we are unable to effect such registration or qualification.

    

  We have established the last of the redemption criterion discussed above to prevent a redemption call unless there is at the time of the call a significant premium to the warrant exercise price. If the foregoing conditions are satisfied and we issue a notice of redemption of the warrants, each warrant holder will be entitled to exercise its warrant prior to the scheduled redemption date. However, the price of the Class A Common Stock may fall below the $18.00 redemption trigger price (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) as well as the $11.50 warrant exercise price after the redemption notice is issued.

    

  If we call the warrants for redemption as described above, our management will have the option to require any holder that wishes to exercise its warrant to do so on a “cashless basis.” In determining whether to require all holders to exercise their warrants on a “cashless basis,” our management will consider, among other factors, its cash position, the number of warrants that are outstanding and the dilutive effect on its stockholders of issuing the maximum number of shares of Class A Common Stock issuable upon the exercise of our warrants. If our management takes advantage of this option, all holders of warrants would pay the exercise price by surrendering their 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” (as defined below) over the exercise price of the warrants by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the Class A Common Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants. If we select this option, the notice of redemption will contain the information necessary to calculate the number of shares of Class A Common Stock to be received upon exercise of the warrants, including the “fair market value” in such case. Requiring a cashless exercise in this manner will reduce the number of shares to be issued and thereby lessen the dilutive effect of a warrant redemption. We believe this feature is an attractive option to us if we do not need the cash from the exercise of the warrants. If we call our warrants for redemption and our management does not take advantage of this option, New Providence Acquisition Management LLC, a Delaware limited liability company (the “Sponsor”) and its permitted transferees would still be entitled to exercise their private placement warrants for cash or on a cashless basis using the same formula described above that other warrant holders would have been required to use had all warrant holders been required to exercise their warrants on a cashless basis, as described in more detail below.

    

  A holder of a warrant may notify us in writing in the event it elects to be subject to a requirement that such holder will not have the right to exercise such warrant, to the extent that after giving effect to such exercise, such person (together with such person’s affiliates), to the warrant agent’s actual knowledge, would beneficially own in excess of 4.9% or 9.8% (or such other amount as a holder may specify) of the shares of Class A Common Stock outstanding immediately after giving effect to such exercise.

    

  If the number of outstanding shares of Class A Common Stock is increased by a stock dividend payable in shares of Class A Common Stock, or by a split-up of shares of Class A Common Stock or other similar event, then, on the effective date of such stock dividend, split-up or similar event, the number of shares of Class A Common Stock issuable on exercise of each warrant will be increased in proportion to such increase in the outstanding shares of Class 

   

   

  

  EXHIBIT 4.1

  A Common Stock. A rights offering to holders of Class A Common Stock entitling holders to purchase shares of Class A Common Stock at a price less than the fair market value will be deemed a stock dividend of a number of shares of Class A Common Stock equal to the product of (i) the number of shares of Class A Common Stock actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for Class A Common Stock) and (ii) one (1) minus the quotient of (x) the price per share of Class A Common Stock paid in such rights offering divided by (y) the fair market value. For these purposes (i) if the rights offering is for securities convertible into or exercisable for Class A Common Stock, in determining the price payable for Class A Common Stock, there will be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) fair market value means the volume weighted average price of Class A Common Stock as reported during the ten (10) trading day period ending on the trading day prior to the first date on which the shares of Class A Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.

    

  In addition, if we, at any time while the warrants are outstanding and unexpired, pay a dividend or make a distribution in cash, securities or other assets to the holders of Class A Common Stock on account of such shares of Class A Common Stock (or other shares of our capital stock into which the warrants are convertible), other than (i) as described above, (ii) certain ordinary cash dividends (initially defined as up to $0.50 per share in a 365 day period), (iii) to satisfy the redemption rights of the holders of Class A Common Stock in connection with the Closing, or (iv) to satisfy the redemption rights of the holders of Class A Common Stock in connection with a stockholder vote to amend our Charter with respect to any provision relating to stockholders’ rights, then the warrant exercise price will be decreased, effective immediately after the effective date of such event, by the amount of cash and/or the fair market value of any securities or other assets paid on each share of Class A Common Stock in respect of such event.

   

  If the number of outstanding shares of Class A Common Stock is decreased by a consolidation, combination, reverse stock split or reclassification of shares of Class A Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification or similar event, the number of shares of Class A Common Stock issuable on exercise of each warrant will be decreased in proportion to such decrease in outstanding shares of Class A Common Stock.

    

  Whenever the number of shares of Class A Common Stock purchasable upon the exercise of the warrants is adjusted, as described above, the warrant exercise price will be adjusted by multiplying the warrant exercise price immediately prior to such adjustment by a fraction (x) the numerator of which will be the number of shares of Class A Common Stock purchasable upon the exercise of the warrants immediately prior to such adjustment, and (y) the denominator of which will be the number of shares of Class A Common Stock so purchasable immediately thereafter.

    

  In case of any reclassification or reorganization of the outstanding shares of Class A Common Stock (other than those described above or that solely affects the par value of such shares of Class A Common Stock), or in the case of any merger or consolidation of us with or into another corporation (other than a consolidation or merger in which we are the continuing corporation and that does not result in any reclassification or reorganization of our outstanding shares of Class A Common Stock), or in the case of any sale or conveyance to another corporation or entity of our assets or other property an entirety or substantially as an entirety in connection with which we are dissolved, the holders of the warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the warrants and in lieu of the shares of Class A Common Stock immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the warrants would have received if such holder had exercised their warrants immediately prior to such event. If less than 70% of the consideration receivable by the holders of Class A Common Stock in such a transaction is payable in the form of Class A Common Stock in the successor entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the registered holder of the warrant properly exercises the warrant within thirty days following public disclosure of such transaction, the warrant exercise price will be reduced as specified in the Warrant Agreement based on the Black-Scholes value (as defined in the Warrant Agreement) of the warrant. The purpose of such exercise price reduction is to provide additional value to holders of the warrants when an extraordinary transaction occurs during the exercise period of the warrants pursuant to which the holders of the warrants otherwise do not receive the full potential value of the warrants in order to determine and realize the option value component of the warrant. This formula is to 

   

   

  

  EXHIBIT 4.1

  compensate the warrant holder for the loss of the option value portion of the warrant due to the requirement that the warrant holder exercise the warrant within 30 days of the event. The Black-Scholes model (as defined in the Warrant Agreement) is an accepted pricing model for estimating fair market value where no quoted market price for an instrument is available.

    

  The warrants are issued in registered form under the Warrant Agreement. The Warrant Agreement provides that the terms of the warrants may be amended without the consent of any holder to cure any ambiguity or correct any defective provision, but requires the approval by the holders of at least 50% of the then outstanding public warrants to make any change that adversely affects the interests of the registered holders of public warrants.

    

  The warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant agent, with the exercise form on the reverse side of the warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price (or on a cashless basis, if applicable), by certified or official bank check payable to us, for the number of warrants being exercised. The warrant holders do not have the rights or privileges of holders of Class A Common Stock and any voting rights until they exercise their warrants and receive shares of Class A Common Stock. After the issuance of shares of Class A Common Stock upon exercise of the warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by stockholders.

    

  No fractional shares will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share, we will, upon exercise, round down to the nearest whole number of shares of Class A Common Stock to be issued to the warrant holder.

   

  Private Placement Warrants

    

  The private placement warrants (including the shares of Class A Common Stock issuable upon exercise of the private placement warrants) are not redeemable by us so long as they are held by the Sponsor or its permitted transferees. The Sponsor, or its permitted transferees, has the option to exercise the private placement warrants on a cashless basis. Except as described below, the private placement warrants have terms and provisions that are identical to those of the public warrants, including as to exercise price, exercisability and exercise period. If the private placement warrants are held by holders other than the Sponsor or its permitted transferees, the private placement warrants will be redeemable by us and exercisable by the holders on the same basis as the public warrants.

    

  If holders of the private placement warrants elect to exercise them on a cashless basis, they would pay the exercise price by surrendering their 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 excess of the “fair market value” (defined below) over the exercise price of the warrants by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the Class A Common Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent.

    

  Exclusive Forum

    

  Our Bylaws provide that, to the fullest extent permitted by law, and unless we provide notice in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed to us or to our stockholders by any of our directors, officers, employees or agents, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, our Charter or Bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware or (iv) any action asserting a claim governed by the internal affairs doctrine, in each such case subject to such Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein. Our Bylaws further provide that the federal district courts of the United States will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act. There is uncertainty as to whether a court would enforce such a provision relating to causes of action arising under the Securities Act, and investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. The clauses described above will not apply to suits brought to enforce a duty or liability created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction.

   

   

  

  EXHIBIT 4.1

    

  Anti-Takeover Effects of Provisions of our Charter and Bylaws

    

  The provisions of our Charter and Bylaws and of the DGCL summarized below may have an anti-takeover effect and may delay, defer or prevent a tender offer or takeover attempt that you might consider in your best interest, including an attempt that might result in your receipt of a premium over the market price for your shares of Class A Common Stock.

    

  Our Charter and Bylaws will contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of our Board of Directors and that may have the effect of delaying, deferring or preventing our future takeover or change in control unless such takeover or change in control is approved by our Board of Directors.

    

  These provisions include:

    

  Action by Written Consent; Special Meetings of Stockholders. Our Charter provides that stockholder action can be taken only at an annual or special meeting of stockholders and cannot be taken by written consent in lieu of a meeting. Our Charter and Bylaws also provide that, subject to any special rights of the holders of any series of preferred stock and except as otherwise required by applicable law, special meetings of the stockholders can only be called by our Board of Directors, the chairman of our Board of Directors, or, until the earlier of (i) the Sunset Date or (ii) the time we are no longer a “controlled company,” by our secretary at the request of holders representing a majority of the total voting power of our issued and outstanding capital stock entitled to vote in the election of directors, voting together as a single class. Except as described above, stockholders are not permitted to call a special meeting or to require our Board of Directors to call a special meeting.

    

  Advance Notice Procedures. Our Bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of our stockholders, and for stockholder nominations of persons for election to our Board of Directors to be brought before an annual or special meeting of stockholders. Stockholders at an annual meeting will only be able to consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of our Board of Directors of directors or by a stockholder who was a stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has given our Secretary timely written notice, in proper form, of the stockholder’s intention to bring that business or nomination before the meeting. Although our Bylaws do not give our Board of Directors the power to approve or disapprove stockholder nominations of candidates or proposals regarding other business to be conducted at a special or annual meeting, as applicable, our Bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of us.

    

  Authorized but Unissued Shares. Our authorized but unissued shares of Common Stock and preferred stock will be available for future issuance without stockholder approval, subject to, in the case of the Class A Common Stock, rules of the securities exchange on which the Class A Common Stock is listed. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions, in connection with the redemption or exchange of AST Common Units and employee benefit plans. The existence of authorized but unissued shares of Common Stock and preferred stock, coupled with the extraordinary voting right of the Class C Common Stock, could render more difficult or discourage an attempt to obtain control of a majority of our Common Stock by means of a proxy contest, tender offer, merger or otherwise.

    

  Business Combinations with Interested Stockholders. Our Charter provides that we are not subject to Section 203 of the DGCL, an anti-takeover law. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a business combination, such as a merger, with an “interested stockholder” (which includes a person or group owning 15% or more of the corporation’s voting stock) for a period of three years following the date the person became an interested stockholder, unless (with certain exceptions) the business combination or the transaction in which the person became an interested stockholder is approved in a prescribed manner. Accordingly, we are not subject to any anti-takeover effects of Section 203.

    

  Limitations on Liability and Indemnification of Officers and Directors

   

   

  

  EXHIBIT 4.1

    

  Our Bylaws limit the liability of our directors and officers to the fullest extent permitted by the DGCL and provides that we will provide them with customary indemnification and advancement and prepayment of expenses. We have entered into customary indemnification agreements with each of our executive officers and directors that provide them, in general, with customary indemnification in connection with their service to us or on our behalf.

    

  Our Bylaws provide that, to the fullest extent permitted by law, and unless we provide notice in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for (i) any derivative action, suit or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed to us or to our stockholders by any of our directors, officers, employees or agents, (iii) any action, suit or proceeding arising pursuant to any provision of the DGCL or our Charter or Bylaws or (iv) any action, suit or proceeding asserting a claim against us governed by the internal affairs doctrine, in each such case subject to such Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein. Our Charter further provides that the federal district courts of the United States will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act. There is uncertainty as to whether a court would enforce such a provision relating to causes of action arising under the Securities Act, and investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. The clauses described above will not apply to suits brought to enforce a duty or liability created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction.

    

  Registration Rights Agreements

    

  In connection with NPA’s IPO, we entered into that certain Registration and Stockholder Rights Agreement, dated as of September 13, 2019, by and among the Company, the Sponsor and the other parties thereto (collectively, the “2019 Holders”, and such agreement, the “2019 Registration Rights Agreement”) pursuant to which we granted the 2019 Holders certain registration rights with respect to, among other things, the private placement warrants and the shares of Class A Common Stock that were issued at the Closing upon conversion of the 2019 Holders’ founder shares. The 2019 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 2019 Holders have certain “piggy-back” registration rights and rights to require us to register for resale such securities pursuant to Rule 415 under the Securities Act. We will bear the expenses incurred in connection with the filing of any such registration statements.

    

  On December 16, 2020, we entered into subscription agreements with investors who participated in the Private Investment in Public Equity Investment (such investment, the “PIPE Investment”, such agreements, the “PIPE Subscription Agreements” and such investors, the “PIPE Investors”), pursuant to which we (i) issued an aggregate of 23,000,000 shares of Class A Common Stock to the PIPE Investors at the Closing and (ii) agreed to register such shares.

    

  At the Closing, we entered into the Registration Rights Agreement, dated as of April 6, 2021, by and among the Company, the Sponsor and the Existing Equityholders (collectively, the “Holders”, and such agreement, the “2021 Registration Rights Agreement”) pursuant to which we granted the Holders certain registration rights with respect to the registrable securities of the Company. Among other things, the 2021 Registration Rights Agreement requires us to register the shares of Class A Common Stock issued in connection with the Business Combination and any shares of Class A Common Stock issued upon the redemption of any AST Common Units. The Holders are entitled to (i) make a written demand for registration under the Securities Act of all or part of their shares of Class A Common Stock (up to a maximum of two demands in any 12-month period) and not more than five times in the aggregate and only if the offering will include registrable securities with a total offering price reasonably expected to exceed, in the aggregate, $50 million, and (ii) “piggy-back” registration rights to registration statements filed following the Business Combination. We will bear all of the expenses incurred in connection with the filing of any such registration statement.

    

  Transfer Agent and Registrar

    

  The transfer agent for our Common Stock is Continental Stock Transfer & Trust Company. Each person investing in our Class A Common Stock held through The Depository Trust Company must rely on the procedures thereof and on institutions that have accounts therewith to exercise any rights of a holder of our Class A Common Stock.

   

   

  

  EXHIBIT 4.1

    

  For as long as any shares of our Class A Common Stock are listed on The Nasdaq Stock Market LLC (the “Nasdaq”) or on any other stock exchange operating in the United States, the laws of the State of New York shall apply to the property law aspects of our Class A Common Stock (including securities exercisable for or convertible into our Class A Common Stock) reflected in the register administered by our transfer agent.

    

  We have listed shares of our Class A Common Stock in registered form and such shares, through the transfer agent, will not be certificated. We have appointed Continental Stock Transfer & Trust Company as our agent in New York to maintain our stockholders’ register on behalf of our Board of Directors and to act as transfer agent and registrar for our Class A Common Stock. Shares of our Class A Common Stock are traded on Nasdaq in book-entry form.

    

  The warrant agent for the warrants is Continental Stock Transfer & Trust Company.

    

  Listing of Class A Common Stock and Warrants

    

  Our Class A Common Stock and warrants are listed on Nasdaq under the symbols “ASTS” and “ASTSW,” respectively.

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