Document:

Exhibit
10.1

 

Execution
Copy

 

 

SECURITIES EXCHANGE AGREEMENT

 

DATED MARCH 28, 2022

 

BY AND BETWEEN

 

HALL OF FAME RESORT & ENTERTAINMENT COMPANY,

 

AND

 

CH CAPITAL LENDING, LLC

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	ARTICLE I DEFINITIONS	 	1
	Section 1.01.	Definitions	 	1
	 	 	 	 
	ARTICLE II SECURITIES EXCHANGE	 	3
	Section 2.01.	Securities Exchange	 	3
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY	 	3
	Section 3.01.	Valid Existence	 	3
	Section 3.02.	Authority	 	3
	Section 3.03.	No Approvals	 	3
	Section 3.04.	No Violations	 	3
	Section 3.05.	Valid Issuance	 	4
	Section 3.06.	No Broker	 	4
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PURCHASER	 	4
	Section 4.01.	Valid Existence	 	4
	Section 4.02.	Authorization	 	4
	Section 4.03.	No Approvals	 	4
	Section 4.04.	No Violations	 	4
	Section 4.05.	No Broker	 	4
	Section 4.06.	Investment	 	5
	Section 4.07.	Nature of Holder	 	5
	Section 4.08.	Receipt of Information	 	5
	Section 4.09.	Restricted Shares	 	5
	Section 4.10.	Legend	 	5
	Section 4.11.	Reliance on Exemptions	 	6
	 	 	 	 
	ARTICLE V COVENANTS	 	6
	Section 5.01.	Holder Lock-Up	 	6
	 	 	 	 
	ARTICLE VI MISCELLANEOUS	 	6
	Section 6.01.	Captions	 	6
	Section 6.02.	Severability	 	6
	Section 6.03.	Survival	 	6
	Section 6.04.	Waiver and Amendment	 	6
	Section 6.05.	Successors and Assigns	 	6
	Section 6.06.	Communications	 	7
	Section 6.07.	Entire Agreement	 	8
	Section 6.08.	Governing Law	 	8
	Section 6.09.	Jurisdiction; Waiver of Jury Trial	 	8
	Section 6.10.	Execution in Counterparts	 	8

 

    i

     

    

 

SECURITIES EXCHANGE AGREEMENT

 

This SECURITIES EXCHANGE AGREEMENT
(this “Agreement”), dated March 28, 2022 (the “Agreement Date”), is made and entered into by
and between Hall of Fame Resort & Entertainment Company, a Delaware corporation (the “Company”), and CH Capital
Lending, LLC, a Delaware limited liability company (“Holder”).

 

RECITALS

 

A.  On
June 4, 2021, Holder purchased from the Company 15,000 Units, each Unit consisting of (a) one share of the Company’s 7.00% Series
B Convertible Preferred Stock, par value $0.0001 per share (the “Series B Preferred Stock”), and (b) 163.3987 warrants
to purchase shares of Common Stock (“Series D Warrants”), each Series D Warrant exercisable for one share of Common
Stock.

 

B. Pursuant
to Amendment Number 6 to the Term Loan Agreement (“Term Loan Amendment Number 6”), dated as of March 1, 2022, among
the Company, HOF Village Newco, LLC (“Newco”), HOF Village Stadium, LLC, and HOF Village Youth Fields, LLC, as borrowers,
and Holder, as administrative agent and lender, as consideration in part for the transactions contemplated by Term Loan Amendment Number
6, the Company agreed, subject to approval of its Board of Directors, upon the request of Holder, to exchange (the “Exchange”)
each share of Series B Preferred Stock that is held by Holder for one share of the Company’s 7.00% Series C Convertible Preferred
Stock,” par value $0.0001 per share (the “Series C Preferred Stock”), in a transaction exempt from registration
pursuant to Section 4(a)(2) of the Securities Act.

 

C. The
Company’s Board of Directors and Audit Committee have approved the Exchange, and Holder has requested the Exchange. The Company
filed the certificate of designations of the Series C Preferred Stock with the Delaware Secretary of State on March 28, 2022.

 

AGREEMENT

 

NOW THEREFORE, in consideration
of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Company and Purchaser hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Section 1.01. Definitions.
As used in this Agreement, the following terms have the respective meanings stated below:

 

“Affiliate”
means, with respect to a specified Person, any other Person, whether now in existence or hereafter created, directly or indirectly controlling,
controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control”
(including, with correlative meanings, “controlling,” “controlled by,” and “under common
control with”) means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise.

 

    1

     

    

 

“Agreement”
has the meaning given to such term in the introductory paragraph hereof.

 

“Agreement
Date” has the meaning given to such term in the introductory paragraph hereof.

 

“Closing
Date” means the date on which the Company and Holder will consummate the transactions contemplated by this Agreement. The Closing
Date shall be mutually agreed to by the Company and Holder, and shall be no later than March 28, 2022.

 

“Common
Stock” means the Company’s common stock, par value $0.0001 per share.

 

“Company”
has the meaning given to such term in the introductory paragraph of this Agreement.

 

“Exchange”
has the meaning given to such term in the Recital B.

 

“Holder”
have the meaning given to such term in the introductory paragraph of this Agreement.

 

“Law”
means any federal, state, local or foreign order, writ, injunction, judgment, settlement, award, decree, statute, law, rule or regulation.

 

“Party”
or “Parties” means the Company and Holder, individually or collectively, as the case may be.

 

“Person”
means any individual, corporation, company, voluntary association, partnership, joint venture, trust, limited liability company, unincorporated
organization or government or any agency, instrumentality or political subdivision thereof, or any other form of entity.

 

“Representatives”
of any Person means the Affiliates, control persons, officers, directors, employees, agents, counsel, investment bankers and other representatives
of such Person.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“SEC Documents”
means the reports, schedules and statements filed by the Company under the Securities Exchange Act of 1934, as amended.

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations of the SEC promulgated thereunder.

 

“Series B
Preferred Stock” has the meaning given to such term in the Recital A.

 

    2

     

    

 

“Series C
Preferred Stock” has the meaning given to such term in the Recital B.

 

“Share”
means a share of Series C Preferred Stock.

 

“Term Loan
Amendment 6” has the meaning given to such term in the Recital B.

 

“Units”
has the meaning given to such term in the Recital A.

 

“Warrant
Shares” means the shares of Common Stock to be issued upon exercise of the Series D Warrants.

 

“Series
D Warrants” has the meaning given to such term in the Recital A.

 

ARTICLE
II

SECURITIES EXCHANGE

 

Section 2.01. Securities
Exchange. Subject to the terms and conditions set forth in this Agreement, for each share of Series B Preferred Stock owned by Holder,
Holder hereby exchanges and assigns all of Holder’s right, title and interest in and to such share of Series B Preferred Stock in
exchange for one share of Series C Preferred Stock issued by the Company.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and
warrants to Holder that the representations and warranties set forth in this Article III are true and correct as of the Agreement
Date, and will be true and correct as of the Closing Date.

 

Section 3.01. Valid
Existence. The Company has been duly incorporated and is validly existing and in good standing under the laws of the State of Delaware.

 

Section 3.02. Authority.
The execution, delivery and performance by the Company of this Agreement, and the consummation of the transactions contemplated hereby,
are within the powers of the Company, and have been or will have been duly authorized by all necessary action on the part of the Company.
This Agreement constitutes a valid and binding agreement of the Company, enforceable in accordance with its terms, except (a) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement
or creditors’ rights generally or (b) as limited by laws relating to the availability of specific performance, injunctive relief
or other equitable remedies.

 

Section 3.03. No Approvals.
The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby
require no order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to, or filing
or registration with, any third Person or any governmental body or agency.

 

Section 3.04. No Violations.
The execution, delivery and performance by the Company of this Agreement, and the consummation of the transactions contemplated by this
Agreement, do not and will not (a) violate the certificate of incorporation or bylaws of the Company, (b) violate any agreement
to which the Company is a party or by which the Company or any of its property or assets is bound or (c) violate any law, rule, regulation,
judgment, injunction, order or decree applicable to the Company.

 

    3

     

    

 

Section 3.05. Valid
Issuance. The Shares, when issued in accordance with this Agreement, will be duly and validly authorized and issued, fully-paid and
non-assessable.

 

Section 3.06. No Broker.
There is no investment banker, broker, finder or other intermediary that has been retained by, will be retained by or is authorized to
act on behalf of the Company, and who might be entitled to any fee or commission upon consummation of the transactions contemplated by
this Agreement.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Holder represents and warrants
to the Company that the representations and warranties set forth in this Article IV are true and correct as of the Agreement
Date, and will be true and correct as of the Closing Date.

 

Section 4.01. Valid
Existence. Holder has been duly formed and is validly existing and in good standing under the laws of the state of its organization.

 

Section 4.02. Authorization.
The execution, delivery and performance by Holder of this Agreement, and the consummation of the transactions contemplated hereby are
within the powers of Holder, and have been or will have been duly authorized by all necessary action on the part of Holder. This Agreement
constitutes a valid and binding agreement of Holder, enforceable in accordance with its terms, except (a) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement or creditors’ rights
generally or (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

Section 4.03. No Approvals.
The execution, delivery and performance by Holder of this Agreement and the consummation of the transactions contemplated hereby require
no order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to, or filing or registration
with, any third Person or any governmental body or agency.

 

Section 4.04. No Violations.
The execution, delivery and performance by Holder of this Agreement, and the consummation of the transactions contemplated by this Agreement,
do not and will not (a) violate Holder’s certificate of formation or operating agreement (or equivalent organizational documents),
(b) violate any agreement to which Holder is a party or by which Holder, or any of its properties or assets, is bound or (c) violate
any law, rule, regulation, judgment, injunction, order or decree applicable to Holder.

 

Section 4.05. No Broker.
There is no investment banker, broker, finder or other intermediary that has been retained by, will be retained by or is authorized to
act on behalf of Holder, and who might be entitled to any fee or commission upon consummation of the transactions contemplated by this
Agreement.

 

    4

     

    

 

Section 4.06. Investment.
The Shares are being acquired for Holder’s own account, or the accounts of clients for whom Holder exercises discretionary investment
authority, not as a nominee or agent, and with no present intention of distributing the Shares or any part thereof, and Holder has no
present intention of selling or granting any participation in or otherwise distributing any of the Shares, in any transaction in violation
of the securities Laws of the United States of America or any state, without prejudice, however, to Holder’s right at all times
to sell or otherwise dispose of all or any part of the Shares under an exemption from such registration available under the Securities
Act (including, without limitation, if available, Rule 144 promulgated thereunder). If Holder should in the future decide to dispose
of any of the Shares, Holder understands and agrees that it may do so only in compliance with the Securities Act and applicable state
securities Laws as then in effect.

 

Section 4.07. Nature
of Holder. Holder represents and warrants to, and covenants and agrees with, the Company that, (a) it is an institution that
is an “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, and (b) by reason
of its business and financial experience it has such knowledge, sophistication and experience in business and financial matters so as
to be capable of evaluating the merits and risks of the prospective investment in the Shares, is able to bear the economic risk of such
investment and, at the present time, would be able to afford a complete loss of such investment. Holder is not an entity formed for the
specific purpose of acquiring the Shares.

 

Section 4.08. Receipt
of Information. Holder acknowledges that it (a) has access to the SEC Documents, (b) has been provided a reasonable opportunity
to ask questions of and receive answers from Representatives of the Company regarding such matters, and (c) has sought such accounting,
legal and tax advice as it has considered necessary to make an informed investment decision with respect to the acquisition of the Shares.

 

Section 4.09. Restricted
Shares. Holder understands that the Shares it is purchasing are characterized as “restricted securities” under the federal
securities Laws, inasmuch as they are being acquired from the Company in a transaction not involving a public offering, and that under
such Laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited
circumstances. In this connection, Holder represents that it is knowledgeable with respect to Rule 144 of the SEC promulgated under the
Securities Act.

 

Section 4.10. Legend.
It is understood that the certificates evidencing the Shares will bear the following legend:

 

“These securities
have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities
laws of any state or other jurisdiction. These securities may not be sold or offered for sale, pledged or hypothecated except pursuant
to an effective registration statement under the Securities Act or pursuant to an exemption from registration thereunder, in each case
in accordance with all applicable securities laws of the states or other jurisdictions, and in the case of a transaction exempt from registration,
such securities may only be transferred if the transfer agent for such securities has received documentation satisfactory to it that such
transaction does not require registration under the Securities Act.”

 

    5

     

    

 

Section 4.11. Reliance
on Exemptions. Holder understands that the Shares are being offered and sold to Holder in reliance upon specific exemptions from the
registration requirements of United States federal and state securities laws, and that the Company is relying upon the truth and accuracy
of, and Holder’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of Holder set
forth herein in order to determine the availability of such exemptions and the eligibility of Holder to acquire the Shares.

 

ARTICLE
V

COVENANTS

 

Section 5.01. Holder
Lock-Up. Without the prior written consent of the Company, Holder agrees that from the Closing Date until the end of the 180th day
after the Closing Date, neither Holder nor any of its Affiliates will offer, sell, pledge or otherwise transfer or dispose of any of the
Shares or enter into any transaction or device designed to do the same; provided, however, that Holder may transfer the
Shares to an Affiliate of Holder, so long as such Affiliate agrees to the restrictions in this Section 5.01.

 

ARTICLE
VI

MISCELLANEOUS

 

Section 6.01. Captions.
The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.
Article, Section and Exhibit references are to this Agreement, unless otherwise specified.

 

Section 6.02. Severability.
If any provision in this Agreement is held to be illegal, invalid, not binding, or unenforceable, such provision shall be fully severable
and this Agreement shall be construed and enforced as if such illegal, invalid, not binding or unenforceable provision had never comprised
a part of this Agreement, and the remaining provisions shall remain in full force and effect.

 

Section 6.03. Survival.
The representations and warranties of the Parties contained in this Agreement shall survive the consummation of the transactions contemplated
hereby.

 

Section 6.04. Waiver
and Amendment. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and
is signed, in the case of an amendment, by each Party to this Agreement, or in the case of a waiver, by the Party against whom the waiver
is to be effective.

 

Section 6.05. Successors
and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective
successors and assigns; provided that, except as set forth in the immediately following sentence, (a) no Party may assign,
delegate or otherwise transfer any of its rights or obligations under this Agreement without the written consent of each other Party hereto,
and (b) any such purported assignment in violation of the terms hereof shall be null and void ab initio. Notwithstanding the
foregoing, Holder shall have the right to assign, delegate, and transfer its rights and obligations under this Agreement to any Affiliate
of Holder, so long as such Affiliate (i) assumes all of the obligations of Holder under this Agreement and (ii) reaffirms, as
to such Affiliate, all of the representations and warranties made by Holder under Article IV.

 

    6

     

    

 

Section 6.06. Communications.
All notices and demands provided for hereunder shall be in writing and shall be given by registered or certified mail, return receipt
requested, air courier guaranteeing overnight delivery, electronic mail or personal delivery to the following addresses:

 

		(a)	If to Holder:

 

CH CAPITAL LENDING, LLC

c/o Industrial Realty Group, LLC

11111 Santa Monica Blvd., Suite 800

Los Angeles, CA 90025

Attention: Richard Klein

Email: RKlein@industrialrealtygroup.com

 

With a copy to (which shall not constitute notice):

 

Fainsbert Mase Brown & Sussman, LLP

11111 Santa Monica Blvd., Suite 810

Los Angeles, CA 90025

Attention: Dean Sussman, Esq.

Email: DSussman@fms-law.com

 

		(b)	If to the Company:

 

Hall of Fame Resort & Entertainment Company

2626 Fulton Dr. NW

Canton, OH 44718

Attention: Michael Crawford

Email: Michael.Crawford@HOFVillage.com

 

and

 

Hall of Fame Resort & Entertainment Company

2626 Fulton Dr. NW

Canton, OH 44718

Attention: Tara Charnes

Email: tara.charnes@HOFVillage.com

 

With a copy to (which shall not constitute notice):

 

Hunton Andrews Kurth LLP

2200 Pennsylvania Ave., N.W.

Washington, DC 20037

Attention: Steve Patterson

Email: spatterson@hunton.com

 

or to such other address as any Party may designate
in writing. All notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered;
at the time of transmittal, if sent via electronic mail; upon actual receipt if sent by certified mail, return receipt requested, or regular
mail, if mailed; and upon actual receipt when delivered to an air courier guaranteeing overnight delivery.

 

    7

     

    

 

Section 6.07. Entire
Agreement. This Agreement constitutes the entire agreement among the Parties with respect to the subject matter of this Agreement
and supersedes all prior agreements and understandings, both oral and written, among the Parties with respect to the subject matter of
this Agreement.

 

Section 6.08. Governing
Law. This Agreement will be construed in accordance with and governed by the Laws of the State of New York.

 

Section 6.09. Jurisdiction;
Waiver of Jury Trial. Each of the Parties hereto (a) consents to submit itself to the personal jurisdiction of any Federal or
state court located in the Borough of Manhattan in the City of New York, New York, in the event any dispute arises out of this Agreement,
(b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such
court and (c) agrees that it will not bring any action relating to this Agreement in any court other than a Federal or state court
located in the Borough of Manhattan in the City of New York, New York. Each of the Parties hereto hereby irrevocably waives any and all
right to trial by jury in any legal proceeding arising out of or related to this agreement or the transactions contemplated hereby.

 

Section 6.10. Execution
in Counterparts. This Agreement may be executed in any number of counterparts and by different Parties hereto in separate counterparts,
including facsimile or .pdf format counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an
original and all of which counterparts, taken together, shall constitute but one and the same Agreement.

 

(Signature Page Follows)

 

    8

     

    

 

IN WITNESS WHEREOF, the Parties
hereto execute this Agreement, effective as of the Agreement Date first above written.

 

	 	Company:
	 	 	 	 
	 	HALL OF FAME RESORT & ENTERTAINMENT COMPANY,
	 	a Delaware corporation
	 	 	 	 
	 	By:	/s/ Michael Crawford
	 	 	Name: 	Michael Crawford
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	Purchaser:
	 	 	 	 
	 	CH CAPITAL LENDING, LLC,
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	Holdings SPE Manager, LLC,
	 	 	a Delaware limited liability company,
	 	 	its Manager
	 	 	 	 
	 	 	By:	/s/ John
    A. Mase
	 	 	 	Name: 	John
    A. Mase                  
	 	 	 	Title:	CEO

 

 

9EX-4.4

  Exhibit 4.4

  DESCRIPTION OF SARCOS TECHNOLOGY & ROBOTICS CORP.’ SECURITIES

  As of February 15, 2021, Sarcos Technology & Robotics Corp. (“we,” “our,” “us” or the “Company”) had the following two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (i) Common Stock, par value $0.0001 per share, and (ii) redeemable warrants, each warrant exercisable for one Common Stock share at an exercise price of $11.50.    

  The following sets forth a summary of the material terms of our securities, including certain provisions of Delaware law and the material provisions of the Second Amended and Restated Certificate of Incorporation (the “Charter) and the Amended and Restated Bylaws (the “Bylaws”).  This summary is not intended to be a complete summary of the rights and preferences of such securities.  The full texts of the Charter and Bylaws are attached as exhibits to our Annual Report on Form 10-K. We urge you to read our Charter and Bylaws in their entirety, as well as the applicable provisions of Delaware law, for a complete description of the rights and preferences of the Company’s securities.

  Authorized Capitalization

  The Charter authorizes the issuance of 1,000,000,000 shares of capital stock, of which 

  			
	 
	•
	990,000,000 shares are designated as Common Stock, par value $0.0001 per share, and 

	 
	•
	10,000,000 shares are designated as preferred stock, par value $0.0001 per share. 

  As of February 15, 2022, there were approximately 142,901,760 shares of Common Stock outstanding, held of record by approximately 117 holders of Common Stock, no shares of preferred stock outstanding and approximately 20,549,468 Warrants outstanding held of record by approximately 13 holders of Warrants. Such numbers do not include DTC participants or beneficial owners holding shares through nominee names.

  Common Stock

  Dividend rights

  Subject to preferences that may be applicable to then-outstanding preferred stock, holders of Common Stock are entitled to receive dividends, if any, as may be declared from time to time by our board out of legally available funds. See “Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchasers of Equity Securities” of our Annual Report on Form 10-K for more information. 

  We have never declared or paid any cash dividends on our capital stock, and we do not currently intend to pay any cash dividends on our capital stock in the foreseeable future. We currently intend to retain all available funds and any future earnings to support operations and to finance the growth and development of our business. On January 14, 2021, Rotor effected a stock dividend of 0.2 shares for each outstanding share of Class B common stock (the “Founder Shares”, which, for the avoidance of doubt, were converted into Common Stock of the Company at Closing), resulting in an aggregate of 6,900,000 Founder Shares outstanding, in order to maintain the number of Founder Shares at 20% of the issued and outstanding shares of our Common Stock upon the consummation of Rotor’s initial public offering (the “Rotor IPO”). 

  No Preemptive or Other Rights 

  Holders of Common Stock are not entitled to preemptive rights and are not subject to redemption or sinking fund provisions.

  Voting Rights 

  Except as otherwise required by law or as otherwise provided in any certificate of designation for any series of preferred stock, the holders of Common Stock possess or will possess, as applicable, all voting power for the election of our directors and all other matters requiring stockholder action and are entitled or will be entitled, as applicable, to 

  

  one vote per share on matters to be voted on by stockholders. Subject to certain limited exceptions, the holders of Common Stock shall at all times vote together as one class on all matters submitted to a vote of the holders of Common Stock.

  Our stockholders do not have the ability to cumulate votes for the election of directors. As a result, the holders of a plurality of the voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors can elect all of the directors standing for election, if they should so choose. With respect to matters other than the election of directors, at any meeting of the stockholders at which a quorum is present or represented, the affirmative vote of a majority of the voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter shall be the act of the stockholders, except as otherwise required by law, the Charter, the Bylaws, or the rules of the stock exchange on which the Company’s securities are listed. The holders of a majority of the voting power of the capital stock of the Company issued and outstanding and entitled to vote, present in person or represented by proxy, shall constitute a quorum for the transaction of business at all meetings of the stockholders

  Liquidation Rights

  If we become subject to a liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock.

  Preferred Stock

  Our Board has the authority, without further action by the stockholders, to issue shares of preferred stock in one or more series and to fix the designations, powers, preferences and rights, and the qualifications, limitations or restrictions thereof. These designations, powers, preferences and rights could include dividend rights, dividend rate, conversion rights, voting rights, rights and terms of redemption (including sinking fund provisions), redemption price or prices, and liquidation preferences of any such series, and the number of shares constituting any such series and the designation thereof, any or all of which may be greater than the rights of our Common Stock. The issuance of preferred stock could adversely affect the voting power of holders of our Common Stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control of the Company or other corporate action. As of February 15, 2022, there are no shares of preferred stock outstanding, and we have no present plan to issue any shares of preferred stock.

  Warrants

  Public Stockholders’ Warrants

  Each whole Warrant entitles the registered holder to purchase one share of our Common Stock at a price of $11.50 per share, subject to adjustment as discussed below, at any time commencing on January 20, 2022, provided that we have an effective registration statement under the Securities Act covering the shares of the Common Stock issuable upon exercise of the Warrants and a current prospectus relating to them is available (or we permit holders to exercise their Warrants on a cashless basis under the circumstances specified in the warrant agreement entered into between Continental Stock Transfer & Trust Company and Rotor (the “Warrant Agreement”)) and such shares are registered, qualified or exempt from registration under the securities, or blue sky, laws of the state of residence of the holder. Pursuant to the Warrant Agreement, a Warrant holder may exercise its Warrants only for a whole number of shares of our Common Stock. This means only a whole Warrant may be exercised at a given time by a Warrant holder. The Warrants will expire five years after the completion of the Business Combination, or September 24, 2026, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.

  We will not be obligated to deliver any 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 our Common Stock 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, or a valid exemption from registration is available. No Warrant will be exercisable and we will not be obligated to issue a share of our Common 

  

  Stock upon exercise of a Warrant unless the share of our 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. In the event that a registration statement is not effective for the exercised Warrants, the purchaser in the Rotor IPO of a unit containing such Warrant will have paid the full purchase price for the unit solely for the share of our Common Stock underlying such unit.

  We have agreed that as soon as practicable, but in no event later than twenty business days after the Closing, we will use our commercially reasonable efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the shares of our Common Stock issuable upon exercise of the Warrants. We will use our commercially reasonable efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration or redemption of the Warrants in accordance with the provisions of the Warrant Agreement. If a registration statement covering the issuance of the shares of our Common Stock issuable upon exercise of the Warrants is not effective by the 60th business day after the Closing, Warrant holders may, until such time as there is an effective registration statement and during any period when we will have failed to maintain an effective registration statement, exercise Warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. In addition, if our Common Stock is at the time of any exercise of a Warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of our 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 elect to do so, we will not be required to file or maintain in effect a registration statement, but we will use our commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. In such event, each holder would pay the exercise price by surrendering each such Warrant for that number of shares of our Common Stock equal to the lesser of (A) the quotient obtained by dividing (x) the product of the number of shares of our Common Stock underlying the Warrants, multiplied the excess of the “fair market value” less the exercise price of the Warrants by (y) the fair market value and (B) 0.361. The “fair market value” shall mean the volume weighted average price of the shares of our Common Stock for the 10 trading days ending on the trading day prior to the date on which the notice of exercise is received by the Warrant Agent.

  Redemption of Warrants When the Price per Share of Our Common Stock Equals or Exceeds $18.00

  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 last reported sale price of the shares of our Common Stock for any 20 trading days within a 30-trading day period commencing after the Warrants become exercisable and ending three business days before we send the notice of redemption to the Warrant holders (which we refer to as the “Reference Value”) equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like).

  If and when the Warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the underlying securities for sale under all applicable state securities laws. However, we will not redeem the Warrants unless an effective registration statement under the Securities Act covering the shares of our Common Stock issuable upon exercise of the Warrants is effective and a current prospectus relating to those shares of our Common Stock is available throughout the 30-day redemption period.

  

  We have established the last 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 his, her or its Warrant prior to the scheduled redemption date. Any such exercise would not be done on a “cashless” basis and would require the exercising Warrant holder to pay the exercise price for each Warrant being exercised. However, the price of the shares of our 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 (for whole shares) Warrant exercise price after the redemption notice is issued.

  Redemption of Warrants When the Price per Share of Our Common Stock Equals or Exceeds $10.00

  Once the Warrants become exercisable, we may redeem the outstanding Warrants (except as described herein with respect to the Private Placement Warrants if we do not utilize this redemption provision):

  			
	 
	•
	in whole and not in part;

	 
	•
	at $0.10 per Warrant upon a minimum of 30 days’ prior written notice of redemption; provided that holders will be able to exercise their Warrants on a cashless basis prior to redemption and receive that number of shares determined by reference to the table below, based on the redemption date and the “fair market value” of our Common Stock (as defined below);

	 
	•
	if, and only if, the Reference Value (as defined above) equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like); and

	 
	•
	if the Reference Value is less than $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) the Private Placement Warrants must also be concurrently called for redemption on the same terms (except as described above with respect to a holder’s ability to cashless exercise its Warrants) as the outstanding Public Warrants, as described above.

  The numbers in the table below represent the number of shares of our Common Stock that a Warrant holder will receive upon exercise in connection with a redemption by us pursuant to this redemption feature, based on the “fair market value” of our Common Stock on the corresponding redemption date (assuming holders elect to exercise their Warrants and such Warrants are not redeemed for $0.10 per Warrant), determined based on the volume-weighted average price of our Common Stock as reported during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of Warrants, and the number of months that the corresponding redemption date precedes the expiration date of the Warrants, each as set forth in the table below. We will provide our Warrant holders with the final fair market value no later than one business day after the 10-trading day period described above ends.

  The stock prices set forth in the column headings of the table below will be adjusted as of any date on which the number of shares issuable upon exercise of a Warrant or the exercise price of the Warrant is adjusted as set forth under the heading “-Anti-dilution Adjustments” below. If the number of shares issuable upon exercise of a Warrant is adjusted, the adjusted stock prices in the column headings will equal the stock prices immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the exercise price of the Warrant after such adjustment and the denominator of which is the exercise price of the Warrant immediately after to such adjustment. In such an event, the number of shares in the table below shall be adjusted by multiplying such share amounts by a fraction, the numerator of which is the number of shares deliverable upon exercise of a Warrant immediately prior to such adjustment and the denominator of which is the number of shares deliverable upon exercise of a Warrant as so adjusted. 

   

  

  																																					
	 
	 
	Fair Market Value of Our Common stock
	 

	Redemption Date (period to
expiration of Warrants)
	 
	≤$10.00
	 
	 
	$
	11.00
	 
	 
	$
	12.00
	 
	 
	$
	13.00
	 
	 
	$
	14.00
	 
	 
	$
	15.00
	 
	 
	$
	16.00
	 
	 
	$
	17.00
	 
	 
	≥$18.00
	 

	60 months
	 
	 
	0.261
	 
	 
	 
	0.281
	 
	 
	 
	0.297
	 
	 
	 
	0.311
	 
	 
	 
	0.324
	 
	 
	 
	0.337
	 
	 
	 
	0.348
	 
	 
	 
	0.358
	 
	 
	 
	0.361
	 

	57 months
	 
	 
	0.257
	 
	 
	 
	0.277
	 
	 
	 
	0.294
	 
	 
	 
	0.310
	 
	 
	 
	0.324
	 
	 
	 
	0.337
	 
	 
	 
	0.348
	 
	 
	 
	0.358
	 
	 
	 
	0.361
	 

	54 months
	 
	 
	0.252
	 
	 
	 
	0.272
	 
	 
	 
	0.291
	 
	 
	 
	0.307
	 
	 
	 
	0.322
	 
	 
	 
	0.335
	 
	 
	 
	0.347
	 
	 
	 
	0.357
	 
	 
	 
	0.361
	 

	51 months
	 
	 
	0.246
	 
	 
	 
	0.268
	 
	 
	 
	0.287
	 
	 
	 
	0.304
	 
	 
	 
	0.320
	 
	 
	 
	0.333
	 
	 
	 
	0.346
	 
	 
	 
	0.357
	 
	 
	 
	0.361
	 

	48 months
	 
	 
	0.241
	 
	 
	 
	0.263
	 
	 
	 
	0.283
	 
	 
	 
	0.301
	 
	 
	 
	0.317
	 
	 
	 
	0.332
	 
	 
	 
	0.344
	 
	 
	 
	0.356
	 
	 
	 
	0.361
	 

	45 months
	 
	 
	0.235
	 
	 
	 
	0.258
	 
	 
	 
	0.279
	 
	 
	 
	0.298
	 
	 
	 
	0.315
	 
	 
	 
	0.330
	 
	 
	 
	0.343
	 
	 
	 
	0.356
	 
	 
	 
	0.361
	 

	42 months
	 
	 
	0.228
	 
	 
	 
	0.252
	 
	 
	 
	0.274
	 
	 
	 
	0.294
	 
	 
	 
	0.312
	 
	 
	 
	0.328
	 
	 
	 
	0.342
	 
	 
	 
	0.355
	 
	 
	 
	0.361
	 

	39 months
	 
	 
	0.221
	 
	 
	 
	0.246
	 
	 
	 
	0.269
	 
	 
	 
	0.290
	 
	 
	 
	0.309
	 
	 
	 
	0.325
	 
	 
	 
	0.340
	 
	 
	 
	0.354
	 
	 
	 
	0.361
	 

	36 months
	 
	 
	0.213
	 
	 
	 
	0.239
	 
	 
	 
	0.263
	 
	 
	 
	0.285
	 
	 
	 
	0.305
	 
	 
	 
	0.323
	 
	 
	 
	0.339
	 
	 
	 
	0.353
	 
	 
	 
	0.361
	 

	33 months
	 
	 
	0.205
	 
	 
	 
	0.232
	 
	 
	 
	0.257
	 
	 
	 
	0.280
	 
	 
	 
	0.301
	 
	 
	 
	0.320
	 
	 
	 
	0.337
	 
	 
	 
	0.352
	 
	 
	 
	0.361
	 

	30 months
	 
	 
	0.196
	 
	 
	 
	0.224
	 
	 
	 
	0.250
	 
	 
	 
	0.274
	 
	 
	 
	0.297
	 
	 
	 
	0.316
	 
	 
	 
	0.335
	 
	 
	 
	0.351
	 
	 
	 
	0.361
	 

	27 months
	 
	 
	0.185
	 
	 
	 
	0.214
	 
	 
	 
	0.242
	 
	 
	 
	0.268
	 
	 
	 
	0.291
	 
	 
	 
	0.313
	 
	 
	 
	0.332
	 
	 
	 
	0.350
	 
	 
	 
	0.361
	 

	24 months
	 
	 
	0.173
	 
	 
	 
	0.204
	 
	 
	 
	0.233
	 
	 
	 
	0.260
	 
	 
	 
	0.285
	 
	 
	 
	0.308
	 
	 
	 
	0.329
	 
	 
	 
	0.348
	 
	 
	 
	0.361
	 

	21 months
	 
	 
	0.161
	 
	 
	 
	0.193
	 
	 
	 
	0.223
	 
	 
	 
	0.252
	 
	 
	 
	0.279
	 
	 
	 
	0.304
	 
	 
	 
	0.326
	 
	 
	 
	0.347
	 
	 
	 
	0.361
	 

	18 months
	 
	 
	0.146
	 
	 
	 
	0.179
	 
	 
	 
	0.211
	 
	 
	 
	0.242
	 
	 
	 
	0.271
	 
	 
	 
	0.298
	 
	 
	 
	0.322
	 
	 
	 
	0.345
	 
	 
	 
	0.361
	 

	15 months
	 
	 
	0.130
	 
	 
	 
	0.164
	 
	 
	 
	0.197
	 
	 
	 
	0.230
	 
	 
	 
	0.262
	 
	 
	 
	0.291
	 
	 
	 
	0.317
	 
	 
	 
	0.342
	 
	 
	 
	0.361
	 

	12 months
	 
	 
	0.111
	 
	 
	 
	0.146
	 
	 
	 
	0.181
	 
	 
	 
	0.216
	 
	 
	 
	0.250
	 
	 
	 
	0.282
	 
	 
	 
	0.312
	 
	 
	 
	0.339
	 
	 
	 
	0.361
	 

	9 months
	 
	 
	0.090
	 
	 
	 
	0.125
	 
	 
	 
	0.162
	 
	 
	 
	0.199
	 
	 
	 
	0.237
	 
	 
	 
	0.272
	 
	 
	 
	0.305
	 
	 
	 
	0.336
	 
	 
	 
	0.361
	 

	6 months
	 
	 
	0.065
	 
	 
	 
	0.099
	 
	 
	 
	0.137
	 
	 
	 
	0.178
	 
	 
	 
	0.219
	 
	 
	 
	0.259
	 
	 
	 
	0.296
	 
	 
	 
	0.331
	 
	 
	 
	0.361
	 

	3 months
	 
	 
	0.034
	 
	 
	 
	0.065
	 
	 
	 
	0.104
	 
	 
	 
	0.150
	 
	 
	 
	0.197
	 
	 
	 
	0.243
	 
	 
	 
	0.286
	 
	 
	 
	0.326
	 
	 
	 
	0.361
	 

	0 months
	 
	 
	-
	 
	 
	 
	-
	 
	 
	 
	0.042
	 
	 
	 
	0.115
	 
	 
	 
	0.179
	 
	 
	 
	0.233
	 
	 
	 
	0.281
	 
	 
	 
	0.323
	 
	 
	 
	0.361
	 

   

  The exact fair market value and redemption date may not be set forth in the table above, in which case, if the fair market value is between two values in the table or the redemption date is between two redemption dates in the table, the number of shares of our Common Stock to be issued for each Warrant exercised will be determined by a straight-line interpolation between the number of shares set forth for the higher and lower fair market values and the earlier and later redemption dates, as applicable, based on a 365 or 366-day year, as applicable.  For example, if the volume-weighted average price of our Common Stock as reported during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of the Warrants is $11.00 per share, and at such time there are 57 months until the expiration of the Warrants, holders may choose to, in connection with this redemption feature, exercise their Warrants for 0.277 Common Stock for each whole Warrant. For an example where the exact fair market value and redemption date are not as set forth in the table above, if the volume-weighted average price of our Common Stock as reported during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of the Warrants is $13.50 per share, and at such time there are 38 months until the expiration of the Warrants, holders may choose to, in connection with this redemption feature, exercise their Warrants for 0.298 Common Stock for each whole Warrant. In no event will the Warrants be exercisable in connection with this redemption feature for more than 0.361 Common Stock per Warrant (subject to adjustment).

  This redemption feature differs from the typical warrant redemption features used in many other blank check offerings, which typically only provide for a redemption of warrants (other than the Private Placement Warrants) when the trading price for the shares of Common Stock exceeds $18.00 per share for a specified period of time. This redemption feature is structured to allow for all of the outstanding Warrants to be redeemed when the shares of our Common Stock are trading at or above $10.00 per share, which may be at a time when the trading price of our shares of Common Stock is below the exercise price of the Warrants. We have established this redemption feature to provide us with the flexibility to redeem the Warrants without the Warrants having to reach the $18.00 per share threshold set forth above under “-Redemption of Warrants When the Price per Share of Our Common Stock Equals or Exceeds $18.00.” Holders choosing to exercise their Warrants in connection with a redemption pursuant to this feature will, in effect, receive a number of shares for their Warrants based on an option pricing model with a fixed volatility input as of January 14, 2021. This redemption right provides us with an additional mechanism by which to redeem all of the outstanding Warrants, and therefore have certainty as to our capital structure.

  As stated above, we can redeem the Warrants when the shares of our Common Stock are trading at a price starting at $10.00, which is below the exercise price of $11.50, because it will provide certainty with respect to our capital structure and cash position while providing Warrant holders with the opportunity to exercise their Warrants on a cashless basis for the applicable number of shares. If we choose to redeem the Warrants when the shares of our Common Stock are trading at a price below the exercise price of the Warrants, this could result in the Warrant holders receiving fewer shares of Common Stock than they would have received if they had chosen to wait to exercise their 

  

  Warrants for Common Stock if and when such shares of Common Stock were trading at a price higher than the exercise price of $11.50.

  No fractional shares of our Common Stock will be issued upon exercise. If, upon exercise, a holder would be entitled to receive a fractional interest in a share, we will round down to the nearest whole number of the number of shares of our Common Stock to be issued to the holder. If, at the time of redemption, the Warrants are exercisable for a security other than the shares of our Common Stock pursuant to the Warrant Agreement, the Warrants may be exercised for such security. At such time as the Warrants become exercisable for a security other than the shares of our Common Stock, the Company will use its commercially reasonable efforts to register under the Securities Act the security issuable upon the exercise of the Warrants.

  Maximum Percentage. 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% (as specified by the holder) of the shares of our Common Stock issued and outstanding immediately after giving effect to such exercise.

  Anti-dilution Adjustments. If the number of outstanding shares of our Common Stock is increased by a stock capitalization or stock dividend payable in shares of our Common Stock, or by a split-up of common stock or other similar event, then, on the effective date of such stock capitalization or stock dividend, split-up or similar event, the number of shares of our Common Stock issuable on exercise of each Warrant will be increased in proportion to such increase in the outstanding shares of common stock. A rights offering to holders of common stock entitling holders to purchase Common Stock at a price less than the “historical fair market value” (as defined below) will be deemed a stock dividend of a number of shares of our Common Stock equal to the product of (i) the number of shares of our 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 Common Stock) and (ii) one minus the quotient of (x) the price per share of our Common Stock paid in such rights offering and (y) the historical fair market value. For these purposes, (i) if the rights offering is for securities convertible into or exercisable for shares of our Common Stock, in determining the price payable for 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) “historical fair market value” means the volume-weighted average price of shares of our Common Stock as reported during the 10 trading day period ending on the trading day prior to the first date on which the shares of our 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 shares of our Common Stock on account of such Common Stock (or other securities into which the Warrants are convertible), other than (a) as described above and (b) any cash dividends or cash distributions which, when combined on a per share basis with all other cash dividends and cash distributions paid on the shares of our Common Stock during the 365-day period ending on the date of declaration of such dividend or distribution does not exceed $0.50 (as adjusted to appropriately reflect any other adjustments and excluding cash dividends or cash distributions that resulted in an adjustment to the exercise price or to the number of shares of our Common Stock issuable on exercise of each Warrant) but only with respect to the amount of the aggregate cash dividends or cash distributions equal to or less than $0.50 per share, , 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 our Common Stock in respect of such event.

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

  Whenever the number of shares of our 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 our 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 our Common Stock so purchasable immediately thereafter.

  

  In case of any reclassification or reorganization of the outstanding Common Stock (other than those described above or that solely affects the par value of such 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 Common Stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of us as 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 our Common Stock immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of our Common 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 our Common Stock in such a transaction is payable in the form of our 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.

  The Warrants were issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as Warrant Agent, and Rotor. 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 or mistake, including to conform the provisions of the Warrant Agreement to the description of the terms of the Warrants and the Warrant Agreement, but requires the approval by the holders of at least 65% of the then-outstanding Public Warrants to make any change that adversely affects the interests of the registered holders. 

  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 common stock and any voting rights until they exercise their Warrants and receive Common Stock. After the issuance of our 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.

  Private Placement Warrants

  The Private Placement Warrants (including the shares of our Common Stock issuable upon exercise of the Private Placement Warrants) will not be transferable, assignable or salable until 30 days after the completion of the Business Combination (except pursuant to limited exceptions as described under “-Restrictions on Transfers of Founder Shares and Private Placement Warrants,” to our officers and directors and other persons or entities affiliated with the initial purchasers of the Private Placement Warrants) and they will not be redeemable by us so long as they are held by the initial purchasers or its permitted transferees (except as otherwise set forth herein). The initial purchasers, or its permitted transferees, have the option to exercise the Private Placement Warrants on a cashless basis. Except as described herein, the Private Placement Warrants have terms and provisions that are identical to those of the Public Warrants. If the Private Placement Warrants are held by holders other than the initial purchasers or its permitted transferees, the Private Placement Warrants will be redeemable by us in all redemption scenarios and exercisable by the holders on the same basis as the Public Warrants.

  The redemption rights described under “-Redemption of Warrants When the Price per Share of Our Common Stock Equals or Exceeds $10.00,” will not apply to the Private Placement Warrants if at the time of redemption the Private Placement Warrants continue to be held by the initial purchasers or their permitted transferees under the Warrant Agreement. If holders of the Private Placement Warrants elect to exercise them on a cashless basis, they would pay the exercise price by surrendering his, her or its Warrants for that number of shares of our Common Stock equal to the quotient obtained by dividing (x) the product of the number of shares of our Common Stock underlying the 

  

  Warrants, multiplied by the excess of the “historical fair market value” (defined below) over the exercise price of the Warrants by (y) the historical fair market value. For these purposes, the “historical fair market value” shall mean the volume-weighted average sale price of the shares of our 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 received by the Warrant Agent. 

  Restrictions on Transfers of Founder Shares and Private Placement Warrants

  The Founder Shares, Private Placement Warrants and any shares of our Common Stock issued upon conversion or exercise thereof are each subject to transfer restrictions pursuant to lock-up provisions pursuant to the Founders Letter Agreement. The Sponsor and each member of our management team have agreed not to transfer, assign or sell any of their Founder Shares until the earliest of (a) one year after the completion of the Business Combination and (b) upon completion of the Business Combination, (x) if the last reported sale price of our Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after our Business Combination or (y) the date on which we complete a liquidation, merger, capital stock exchange or other similar transaction after the Business Combination that results in all of our stockholders having the right to exchange their Common Stock for cash, securities or other property. The Private Placement Warrants and the respective Common Stock underlying such Warrants are not transferable or salable until 30 days after the completion of the Business Combination. The foregoing restrictions are not applicable to transfers (a) to Rotor’s initial officers or directors, any affiliates or family members of any of our initial stockholders, officers or directors, any members of the Sponsor or its affiliates, any affiliates of the Sponsor, or any employees of such affiliates; (b) in the case of an individual, by gift to a member of one of the individual’s immediate family or to a trust, the beneficiary of which is a member of the individual’s immediate family, an affiliate of such person or to a charitable organization; (c) in the case of an individual, by virtue of laws of descent and distribution upon death of the individual; (d) in the case of an individual, pursuant to a qualified domestic relations order; (e) by private sales or transfers made in connection with the completion of the Business Combination at prices no greater than the price at which the Founder Shares, Private Placement Warrants or Common Stock, as applicable, were originally purchased; (f) by virtue of the limited partnership agreements or other applicable organizational documents of the Sponsor upon dissolution of the Sponsor; (g) as distributions to limited partners or members of the Sponsor; (h) by virtue of the laws of the State of Delaware or of the Sponsor’s organizational documents upon liquidation or dissolution of the Sponsor; (i) to the Company for no value for cancellation in connection with the completion of the Business Combination; or (j) in the event of our completion of a liquidation, merger, capital stock exchange or other similar transaction which results in all of our stockholders having the right to exchange their Common Stock for cash, securities or other property subsequent to our completion of the Business Combination; provided, however, that in the case of clauses (a) through (h), or with our prior written consent, these permitted transferees must enter into a written agreement agreeing to be bound by these transfer restrictions and the other restrictions contained in the letter agreements.

  On January 14, 2021, each of the Millennium and BlackRock Holders entered into a letter agreement (the “Millennium Letter Agreement” and “BlackRock Letter Agreement,” respectively), whereby the Millennium Holder, among other things agreed to purchase from the Company 395,192 Founder Shares for $436,731 and 419,423 Private Placement Warrants for $419,423 and the BlackRock Holders agreed to purchase from the Company 395,192 Founder Shares for $436,727 and 419,423 Private Placement Warrants for $419,423. Pursuant to the Millennium Letter Agreement and the BlackRock Letter Agreement, the Founder Shares and Private Placement Warrants are subject to the same lock-up and transfer restrictions as set forth in the Founders Letter Agreement (with substantially similar provisions with respect to permitted transferees) and Millennium shall have the same registration rights as set forth in the Founder Registration Rights Agreement, dated as of January 14, 2021, entered into by and among Rotor and certain Rotor stockholders.

  Transfer Agent and Warrant Agent

  The transfer agent for our Common Stock 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 stockholders, directors, officers and employees against such claims and losses that may arise out of acts performed or omitted for its activities in that capacity, except for any claims and losses due to any gross negligence or intentional misconduct of the indemnified person or entity.

  Certain Anti-Takeover Provisions of Delaware Law, the Company’s Certificate of Incorporation and Bylaws

  

  Certain provisions of our Charter and Bylaws which are summarized below may have the effect of delaying, deferring or discouraging another person from acquiring control of us. They are also designed, in part, to encourage persons seeking to acquire control of the Company to negotiate first with the Board. We believe that the benefits of increased protection of our ability to negotiate with an unfriendly or unsolicited acquirer will outweigh the disadvantages of discouraging a proposal to acquire the post-combination company because negotiation of these proposals could result in an improvement of their terms. We are also subject to anti-takeover provisions under Delaware law, which could delay or prevent a change of control. Together, these provisions may make more difficult the removal of management and may discourage transactions that otherwise could involve payment of a premium over prevailing market prices for our securities. 

  Delaware Law

  We are governed by the provisions of Section 203 of the DGCL. Section 203 generally prohibits a publicly held Delaware corporation from engaging in a “business combination” with any “interested stockholder” for a period of three years after the date of the transaction in which the person became an interested stockholder, unless:

  			
	 
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	the business combination or transaction which resulted in the stockholder becoming an interested stockholder was approved by the Board prior to the time that the stockholder became an interested stockholder;

	 
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	upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding (1) shares owned by persons who are directors and also officers and (2) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

	 
	•
	on or subsequent to the date of the transaction, the business combination is approved by the board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interested stockholder.

  Section 203 defines a business combination to include:

  			
	 
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	mergers or consolidations involving the corporation, or any direct or indirect majority-owned subsidiary of the corporation, and the interested stockholder or any other entity if the merger or consolidation is caused by the interested stockholder;

	 
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	any sale, transfer, pledge or other disposition involving the interested stockholder of 10% or more of the assets of the corporation or any direct or indirect majority-owned subsidiary of the corporation;

	 
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	subject to exceptions, any transaction that results in the issuance or transfer by the corporation, or any direct or indirect majority-owned subsidiary of the corporation, of any stock of the corporation or such subsidiary to the interested stockholder;

	 
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	any transaction involving the corporation, or any direct or indirect majority-owned subsidiary of the corporation, that has the effect of increasing the proportionate share of the stock or any class or series of the corporation or such subsidiary beneficially owned by the interested stockholder; and

	 
	•
	the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

  These provisions may have the effect of delaying, deferring or preventing changes in control of the Company.

  

  Certificate of Incorporation and Bylaws Provisions

  Provisions of the Charter and the Bylaws include a number of provisions that could deter hostile takeovers or delay or prevent changes in control of our Board or management. Among other things, the Charter and the Bylaws:

  			
	 
	•
	permit our Board to issue shares of preferred stock, with any powers, rights, preferences and privileges as they may designate;

	 
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	provide that the authorized number of directors may be changed only by resolution of the Board;

	 
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	provide that all vacancies and newly created directorships, may, except as otherwise required by law, our governing documents or resolution of our Board, and subject to the rights of holders of our preferred stock, only be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum, or by a sole remaining director;

	 
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	divide our Board into three classes, each of which stands for election once every three years;

	 
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	for so long as our Board is classified, and subject to the rights of holders of our preferred stock, provide that a director may only be removed from the Board by the stockholders for cause, and only by the affirmative vote of the holders of at least a 662⁄3% of the voting power of the issued and outstanding capital stock of the Company entitled to vote in the election of directors;

	 
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	require that any action to be taken by our stockholders must be effected at a duly called annual or special meeting of stockholders and not be taken by written consent;

	 
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	provide that stockholders seeking to present proposals before a meeting of stockholders or to nominate candidates for election as directors at a meeting of stockholders must provide notice in writing in a timely manner, and also meet specific requirements as to the form and content of a stockholder’s notice;

	 
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	do not provide for cumulative voting rights (therefore allowing the holders of a plurality of the shares of Common Stock entitled to vote in any election of directors to elect all of the directors standing for election, if they should so choose);

	 
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	provide that special meetings of our stockholders may be called only by the Board, the chairperson of our Board or our chief executive officer; 

	 
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	provide that stockholders will be permitted to amend certain provisions of the Charter and the Bylaws only upon receiving at least two-thirds of the voting power of the then outstanding voting securities, voting together as a single class; and 

	 
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	designate the Delaware and federal district courts as the exclusive forums for certain disputes.

  Forum Selection Clause

  Our Bylaws provide that, unless we consent in writing to the selection of an alternative forum, the sole and exclusive forum, to the fullest extent permitted by law, for (1) any derivative action or proceeding brought on our behalf, (2) any action asserting a breach of a fiduciary duty owed by any director, stockholder, officer or other employee to us or our stockholders, (3) any action arising pursuant to any provision of the DGCL or our Charter and Bylaws (as either may be amended from time to time), or (4) any other action asserting a claim that is governed by the internal affairs doctrine, shall be the Court of Chancery of the State of Delaware (or another state court or the federal court located within the State of Delaware if the Court of Chancery does not have or declines to accept jurisdiction), in all cases subject to the court’s having jurisdiction over indispensable parties named as defendants. In addition, our Bylaws 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 but that the forum selection provision will not apply to claims brought to enforce a duty or liability created by the Exchange Act. Any person or entity purchasing or otherwise acquiring or holding or owning (or continuing to hold or own) any interest in any of our securities shall be deemed to have notice of and consented to the foregoing Bylaw provisions. Our stockholders will not be deemed to have waived 

  

  our compliance with the federal securities laws and the rules and regulations thereunder as a result of our exclusive forum provisions.

  Advance Notice of Director Nominations and New Business

  Our Bylaws include advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as director. In order for any matter to be “properly brought” before a meeting, a stockholder will have to comply with such advance notice procedures and provide us with certain information. Our Bylaws allow the presiding officer at a meeting of stockholders to adopt rules and regulations for the conduct of meetings which may have the effect of precluding the conduct of certain business at a meeting if such rules and regulations are not followed. 

  Dissenters’ Rights of Appraisal and Payment

  Under the DGCL, with certain exceptions, our stockholders have appraisal rights in connection with a merger or consolidation of the Company. Pursuant to the DGCL, stockholders who properly request and perfect appraisal rights in connection with such merger or consolidation will have the right to receive payment of the fair value of their shares as determined by the Delaware Court of Chancery.

  Stockholders’ Derivative Actions

  Under the DGCL, any of our stockholders may bring an action in the Company’s name to procure a judgment in the Company’s favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of the Company’s shares at the time of the transaction to which the action relates or such stockholder’s stock thereafter devolved by operation of law.

  Registration Rights

  PIPE Financing

  We have provided the PIPE Investors with certain customary registration rights with respect to the Common Stock issued pursuant to the PIPE Financing. Pursuant to the Subscription Agreements, we are obligated, at our sole expense, to register with the SEC such Common Stock for resale no later than 30 days following the consummation of the Business Combination and to use commercially reasonable efforts to have such registration statement declared effective as soon as practicable after the filing thereof. 

  Registration Rights Agreement

  Prior to the consummation of the Business Combination, Rotor, Old Sarcos, the Sponsor and certain Old Sarcos equity holders entered into a registration rights agreement with respect to the Company’s securities (the “Registration Rights Agreement”). The Registration Rights Agreement provides for the registration of the Common Stock and Private Placement Warrants (and the Common Stock underlying such Warrants) held by such security holders with the SEC on Form S-1 or, when available, Form S-3, as well as certain piggy-back registration rights. The Company will bear the expenses incurred in connection with the filing of any such registration statements. 

  Listing of Securities

  Our Common Stock and Warrants are listed on Nasdaq under the symbols “STRC” and “STRCW,” respectively.

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