Document:

EXHIBIT 4.2

 

Description

of Securities

ALPHA

STAR ACQUISITION CORPORATION

 

The

following summary of the securities of Alpha Star Acquisition Corporation is qualified and based on the company’s Amended and Restated

Memorandum and Articles of Association and the Warrant Agreement dated as of December 3, 2021 with Vstock Transfer LLC, both of which

have been filed as exhibits to the is Form 10-K or have been incorporated by reference.

 

Pursuant

to our amended and restated memorandum and articles of association which was adopted upon the consummation of this offering, we are authorized

to issue 50,000,000 ordinary shares, $0.001 par value each.

 

The

registration statement for our initial public offering was declared effective by the Securities and Exchange Commission on December 13,

2021. We completed our initial public offering on December 15, 2021. In our initial public offering, we sold units at an offering price

of $10.00 and consisting of one ordinary share, one right to receive one seventh (1/7) of ordinary share upon the consumption of the

initial business combination, and one redeemable warrant. Each warrant entitles the holder thereof to purchase one-half of one ordinary

share. We will not issue fractional shares in connection with the exercise of the warrants. As a result, a warrant holder must exercise

warrants in multiples of two warrants, at a price of $11.50 per full share, subject to adjustment as described in our prospectus dated

as of December 14, 2021 as filed with the Securities and Exchange Commission on December 14, 2021. Each warrant will become exercisable

on the later of the completion of an initial business combination and 9 months from December 15, 2021 and will expire five years after

the completion of an initial business combination, or earlier upon redemption.

 

Market

Information

 

Our

units, ordinary shares and warrants are listed for trading on the NASDAQ Global Market, or NASDAQ, under the symbol “ALSAU,”

“ALSA,” “ALSAR” and “ALSAW”, respectively.

 

Units

 

We

have issued and outstanding an aggregate of 11,500,000 units. The trading symbol for the units is ALSAU. Units at an offering price of

$10.00 and consisting of one ordinary share and one redeemable warrant to purchase one-half of one ordinary share. The holders of units

have no voting rights.

 

     

     

    

 

Ordinary

Shares

 

As

of March 18, 2022, there are 14,675,000 ordinary shares issued and outstanding. Ordinary shareholders of record are entitled to

one vote for each share held on all matters to be voted on by shareholders and vote together as a single class, except as required by

law. 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. There is no cumulative voting with respect to the election of

directors, with the result that the holders of more than 50% of the founder shares voted for the election of directors can elect all

of the directors. Our shareholders are entitled to receive ratable dividends when, as and if declared by the Board of Directors out of

funds legally available therefor.

 

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. The

amount in the trust account is initially anticipated to be approximately $10.00 per public share (subject to increase of up to an additional

$0.40 per public share in the event that our sponsor elects to extend the period of time to consummate a business combination.

 

Pursuant

to our amended and restated memorandum and articles of association, if we are unable to complete our initial business combination within

9 months from the closing of this offering (or up to 21 months from the closing of this offering if we extend the period of

time to consummate a business combination, as described in more detail in this prospectus), we will (i) cease all operations except

for the purpose of winding up, (ii) as promptly as reasonably possible but no more than ten business days thereafter, subject to

lawfully available funds therefor, redeem 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 $50,000 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, subject in each case to our obligations under Cayman Islands law to

provide for claims of creditors and the requirements of other applicable law.

 

    2

     

    

 

Warrants

 

Each

warrant entitles the registered holder to purchase one-half of one ordinary share at a price of $11.50 per share, subject to adjustment

as discussed below, at any time commencing on the later of 9 months from the date of this prospectus or the completion of our initial

business combination. Because the warrants may only be exercised for whole numbers of shares, only an even number of warrants may be

exercised at any given time. Pursuant to the warrant agreement, a warrantholder may exercise its warrants only for a whole number of

shares. This means that only an even number of warrants may be exercised at any given time by a warrantholder. The warrants will expire

five years after the completion of our initial business combination, at 5:00 p.m., New York City time, or earlier upon redemption or

liquidation.

 

We

will not be obligated to deliver any ordinary shares 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 ordinary shares underlying the warrants

is then effective and a prospectus relating thereto is current, subject to our satisfying our obligations described below with respect

to registration. No warrant will be exercisable for cash or on a cashless basis, and we will not be obligated to issue any shares to

holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the

securities laws of the state of the exercising holder, or an exemption is available. 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.

 

Once the warrants become
exercisable, 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 (the “30-day redemption period”) to each warrant holder;

    and
	 	 	 
	 	●	if,

    and only if, the reported last sale price of the ordinary shares equal or exceed $18 per share (as adjusted for share splits, share

    capitalizations, rights issuances, subdivisions, reorganizations, recapitalizations and the like) for any 20 trading days within

    a 30-trading day period ending on the third trading day prior to the date we send to the notice of redemption to the warrant holders.

 

If

we call the warrants for redemption as described above, our management will have the option to require any holder that wishes to exercise

his, her or 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, our cash position, the number of warrants that

are outstanding and the dilutive effect on our shareholders of issuing the maximum number of ordinary shares 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 ordinary shares equal to the quotient obtained by dividing (x) the product of the number of ordinary

shares 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 ordinary shares 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.

 

    3

     

    

 

Rights

 

Each

holder of a right will receive one-seventh (1/7) of one ordinary share upon consummation of our initial business combination, even if

the holder of such right redeemed all ordinary shares held by him, her or it in connection with the initial business combination or an

amendment to our memorandum and articles of association with respect to our pre-business combination activities. No additional consideration

will be required to be paid by a holder of rights in order to receive his, her or its additional ordinary shares upon consummation of

an initial business combination as the consideration related thereto has been included in the unit purchase price paid for by public

investors. The shares issuable upon exchange of the rights will be freely tradable (except to the extent held by affiliates of ours).

 

If

we enter into a definitive agreement for a business combination in which we will not be the surviving entity, the definitive agreement

will provide for the holders of rights to receive the same per share consideration the holders of the ordinary share will receive in

the transaction on an as-converted into ordinary share basis, and each holder of a right will be required to affirmatively convert his,

her or its rights in order to receive the 1/7 share underlying each right (without paying any additional consideration) upon consummation

of the business combination. More specifically, the right holder will be required to indicate his, her or its election to convert the

rights into underlying shares as well as to return the original rights certificates to us.

 

If

we are unable to complete an initial business combination within the required time period and we liquidate the funds held in the trust

account, holders of rights will not receive any of such funds with respect to their rights, nor will they receive any distribution from

our assets held outside of the trust account with respect to such rights, and the rights will expire worthless.

 

As

soon as practicable upon the consummation of our initial business combination, we will direct registered holders of the rights to return

their rights to our rights agent. Upon receipt of the rights, the rights agent will issue to the registered holder of such right(s) the

number of full ordinary shares to which he, she or it is entitled. We will notify registered holders of the rights to deliver their rights

to the rights agent promptly upon consummation of such business combination and have been informed by the rights agent that the process

of exchanging their rights for ordinary shares should take no more than a matter of days. The foregoing exchange of rights is solely

ministerial in nature and is not intended to provide us with any means of avoiding our obligation to issue the shares underlying the

rights upon consummation of our initial business combination. Other than confirming that the rights delivered by a registered holder

are valid, we will have no ability to avoid delivery of the shares underlying the rights. Nevertheless, there are no contractual penalties

for failure to deliver securities to the holders of the rights upon consummation of an initial business combination. Additionally, in

no event will we be required to net cash settle the rights. Accordingly, the rights may expire worthless.

 

Although

a company incorporated in the Cayman Islands may issue fractional shares, it is not our intention to issue any fractional shares upon

conversions of the rights. In the event that any holder would otherwise be entitled to any fractional share upon exchange of his, her

or its rights, we will reserve the option, to the fullest extent permitted by the Memorandum and Articles of Association, the Act and

other applicable law, to deal with any such fractional entitlement at the relevant time as we see fit, which would include the rounding

down of any entitlement to receive ordinary shares to the nearest whole share (and in effect extinguishing any fractional entitlement),

or the holder being entitled to hold any remaining fractional entitlement (without any share being issued) and to aggregate the same

with any future fractional entitlement to receive shares in the Company until the holder is entitled to receive a whole number. Any rounding

down and extinguishment may be done with or without any in lieu cash payment or other compensation being made to the holder of the relevant

rights, such that value received on exchange of the rights may be considered less than the value that the holder would otherwise expect

to receive. All holders of rights shall be treated in the same manner with respect to the issuance of shares upon conversions of the

rights.

 

    4Exhibit
10.2

 

ADMINISTRATIVE
SERVICES AGREEMENT

Alpha Star Acquisition Corporation

80 Broad Street, 5th Floor

New York, NY 10004

 

Dated
as of December 13, 2021

 

A-Star
Management Corp.

 

Ladies
and Gentlemen:

 

This
letter agreement will confirm our mutual agreement that, commencing on the first date (the “Effective Date”)
that any securities of Alpha Star Acquisition Corporation (the “Company”) registered on the Company’s
registration statement (the “Registration Statement”) for its initial public offering (the “IPO”)
are listed on the Nasdaq Capital Market, and continuing until the earlier of (i) the consummation by the Company of an initial business
combination and (ii) the Company’s liquidation (in each case as described in the Registration Statement) (such earlier date hereinafter
referred to as the “Termination Date”), A-Star Management Corp. (“A-Star”) shall
make available to the Company certain office space, utilities and secretarial and administrative services as may be required by the Company
from time to time, situated at 80 Broad Street, 5th Floor, New York, NY 10004 (or any successor location). In exchange therefor,
the Company shall pay M-Star the sum of $10,000 per month on the Effective Date and continuing monthly thereafter until the Termination
Date.

 

A-Star
hereby agrees that it does not have any right, title, interest or claim of any kind in or to any monies that may be set aside
in a trust account (the “Trust Account”) that may be established upon the consummation of the IPO as a result
of this letter agreement (the “Claim”) and hereby irrevocably waives any Claim it may have in the future as
a result of, or arising out of, this letter agreement and will not seek recourse against the Trust Account for any reason whatsoever.

 

This
letter agreement constitutes the entire agreement and understanding of the parties hereto in respect of its subject matter and supersedes
all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in
any way to the subject matter hereof or the transactions contemplated hereby.

 

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

 

No
party hereto may assign either this letter agreement or any of its rights, interests, or obligations hereunder without the prior written
approval of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate
to transfer or assign any interest or title to the purported assignee.

 

Any
litigation between the parties (whether grounded in contract, tort, statute, law or equity) shall be governed by, construed in accordance
with, and interpreted pursuant to the laws of the State of New York, without giving effect to its choice of laws principles.

 

	 	Very
    truly yours,
	 	 
	 	ALPHA
    STAR ACQUISITION CORPORATION
	 	 
	 	By: 	/s/ Zhe Zhang
	 	Name: 	Zhe Zhang 
	 	Title: 	Chief Executive Officer

 

     

     

    

 

	AGREED TO AND ACCEPTED BY:	 
	 	 	 
	A-Star Management Corp.	 
	 	 	 
	By: 	/s/ Zhe Zhang	 
	Name:	Zhe Zhang	 
	Title:	Director

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