Document:

Exhibit 4.3

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES

EXCHANGE ACT OF 1934, AS AMENDED

 

The following summary of the material terms
of our Class A common stock is not intended to be a complete summary of the rights and preferences of such securities, and is qualified
by reference to the Second Amended and Restated Certificate of Incorporation (our “Certificate of Incorporation”) and the
Amended and Restated Bylaws (our “Bylaws”), each of which is an exhibit incorporated by reference into the Annual Report on
Form 10-K of which this exhibit is a part. This summary is qualified in its entirety to those documents.

 

Authorized and Outstanding Stock

 

Our Certificate of Incorporation authorizes the
issuance of 111,000,000 shares of capital stock, $0.0001 par value per share, consisting of (a) 110,000,000 shares of common stock, including
100,000,000 shares of Class A common stock and 10,000,000 shares of Class F common stock, and (b) 1,000,000 shares of preferred stock
(the “Preferred Stock”).

 

As of December 31, 2021, we had 33,965,804 shares
of Class A common stock outstanding. As of December 31, 2021, we had reserved the following shares of Class A common stock for issuance:

 

	 	 	 	Nature of Reserve	 	As of December 31, 2021	 
	 	a.	 	 	Indemnification reserve: Upon the expiration of the indemnification period of two years as described in the Business Combination Agreement, subject the payments of indemnity claims, if any, the Company will issue up to 750,000 Common shares to former Onyx shareholders	 	 	750,000	 
	 	b.	 	 	EIP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Equity Incentive Plan	 	 	4,112,248	 
	 	c.	 	 	ESPP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Employee Stock Purchase Plan	 	 	2,043,582	 
	 	 	 	 	Total shares reserved for future issuance	 	 	6,905,830	 

 

Further, pursuant to the Business Combination
Agreement, the Sponsor has a right to 1,502,129 shares of Class A common stock should its price exceed $15.00 per share for any thirty-day
trading period during the 730 calendar days after the effective date of the Business Combination.

 

As of March 5, 2022, there were no shares
of Class F common stock outstanding, and no shares of Preferred Stock outstanding. The outstanding shares of common stock are duly
authorized, validly issued, fully paid and non-assessable.

 

Class A Common Stock

 

Voting Power

 

Except as otherwise required by law or as otherwise
provided in any certificate of designation for any series of Preferred Stock, the holders of Class A common stock possess all voting power
for the election of our directors and all other matters requiring stockholder action. Holders of Class A common stock and Class F common
stock are entitled to one vote per share, voting together as a single class, on matters to be voted on by stockholders.

 

Dividends

 

Subject to the rights of holders of Preferred
Stock, holders of Class A common stock will be entitled to receive such dividends, if any, as may be declared from time to time by the
Board in its discretion out of funds legally available therefor. We have not paid any cash dividends on the Class A common stock to date.
We may retain future earnings, if any, for future operations, expansion and debt repayment and have no current plans to pay cash
dividends for the foreseeable future. Any decision to declare and pay dividends in the future will be made at the discretion of the board
of directors (the “Board”) and will depend on, among other things, our results of operations, financial condition, cash requirements,
contractual restrictions and other factors that the Board may deem relevant. In addition, our ability to pay dividends may be limited
by covenants of any existing and future outstanding indebtedness incurred.

 

     

     

    

 

Liquidation, Dissolution and Winding Up

 

In the event of our voluntary or involuntary liquidation,
dissolution, distribution of assets or winding-up, the holders of the Class A common stock, together with holders of Class F common stock,
will be entitled to receive an amount of all of our assets of whatever kind available for distribution to stockholders, after the rights
of the holders of the preferred stock have been satisfied, ratably in proportion to the number of shares of Class A common stock (on an
as-converted basis with respect to the Class F common stock) held.

 

Preemptive or Other Rights

 

Our stockholders have no preemptive or other
subscription rights and there are no sinking fund, redemption provisions or conversion provisions applicable to Class A common stock.

 

Class A Common Stock as Potentially Limited
by Issuance of Preferred Stock

 

The Certificate of Incorporation provides that
shares of Preferred Stock may be issued from time to time in one or more series. The Board is authorized to fix the voting rights, if
any, designations, powers and preferences, the relative, participating, optional or other special rights, and any qualifications, limitations
and restrictions thereof, applicable to the shares of each series of Preferred Stock. The Board is able to, without stockholder approval,
issue Preferred Stock with voting and other rights that could adversely affect the voting power and other rights of the holders of the
Class A common stock and could have anti-takeover effects. The ability of our Board to issue Preferred Stock without stockholder approval
could have the effect of delaying, deferring or preventing a change of control of the Company or the removal of existing management.

 

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

 

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

 

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

 

	 	●	an affiliate of an interested stockholder; or

 

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

 

A “business combination” includes
a merger or sale of more than 15% of our assets. However, the above provisions of Section 203 do not apply if:

 

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

 

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

 

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

 

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

 

    2

     

    

 

Exclusive forum for certain lawsuits

 

Our Certificate of Incorporation requires, to
the fullest extent permitted by law, that derivative actions brought in our name, actions against directors, officers and employees for
breach of fiduciary duty and other similar actions may be brought only in the Court of Chancery in the State of Delaware and, if brought
outside of Delaware, the stockholder bringing such suit will be deemed to have consented to service of process on such stockholder’s
counsel. In addition, our Bylaws require that the federal district courts of the United States shall be the sole and exclusive forum for
the resolution of any complaint asserting a cause of action arising under the Securities Act. Notwithstanding the foregoing, unless and
until our Bylaws are amended in this respect, the exclusive forum provision shall not apply to claims seeking to enforce any liability
or duty created by the Exchange Act. Any person or entity purchasing or otherwise acquiring any interest in our shares of common stock
shall be deemed to have notice of and to have consented to these provisions of our Certificate of Incorporation and Bylaws. In addition,
Section 22 of the Securities Act provides that federal and state courts have concurrent jurisdiction over lawsuits brought to enforce
any duty or liability created by the Securities Act or the rules and regulations thereunder. To the extent the exclusive forum provision
restricts the courts in which claims arising under the Securities Act may be brought, there is uncertainty as to whether a court would
enforce such a provision. We note that investors cannot waive compliance with the federal securities laws and the rules and regulations
thereunder. Although we believe this provision benefits us by providing increased consistency in the application of Delaware law in the
types of lawsuits to which it applies, the provision may have the effect of discouraging lawsuits against our directors and officers.

 

Special meetings of stockholders

 

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

 

Advance notice requirements for stockholder
proposals and director nominations

 

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

 

No action by written consent

 

Our Certificate of Incorporation provides that
any action required or permitted to be taken by our stockholders must be effected by a duly called annual or special meeting of such stockholders
and may not be effected by written consent of the stockholders.

 

    3

     

    

 

Classified Board of Directors

 

Our Certificate of Incorporation provides that
our Board is divided into two classes, Class I and Class II, with members of each class serving staggered two-year terms and that
the authorized number of directors may be changed only by resolution of the Board. As a result, in most circumstances, a person can gain
control of our Board only by successfully engaging in a proxy contest at two or more annual meetings.

 

There is no cumulative voting with respect
to the election of directors, with the result that the holders of more than 50% of the shares voted for the election of directors can
elect all of the directors within the class of directors up for election.

 

Subject to the terms of any Preferred Stock, any
or all of the directors may be removed from office at any time, but only for cause and only by the affirmative vote of holders of a majority
of the voting power of all then outstanding shares of our capital stock entitled to vote generally in the election of directors, voting
together as a single class. Any vacancy on our Board, including a vacancy resulting from an enlargement of our Board, may be filled only
by vote of a majority of our directors then in office.

 

Our Transfer Agent

 

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

 

Rule 144

 

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

 

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

 

	 	●	1% of the total number of shares of common stock then outstanding; or

 

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

 

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

 

 

4Exhibit 10.35

 

	
    PARTS iD, LLC

    1 Corporate Drive

    Cranbury, NJ 08512

    Tel 866.909.6699

    Fax 609.269.2202

     
	

September 14, 2021

 

B. John Pendleton, Jr.

4 Catherine Court

Boonton, NJ 07005

Tel. (646) 460-1845

 

		RE:	Offer of Employment from PARTS iD, LLC: Executive Vice
President, Legal & Corporate Affairs

 

Dear John,

 

We are very pleased to offer you a position as
Executive Vice President, Legal & Corporate Affairs with PARTS iD, LLC (the “Company”). By joining our team, you
will be contributing to this exciting, innovative, and rapidly growing company.

 

Your anticipated start date is Monday, October
18, 2021 reporting directly into Chief Executive Officer, Antonino Ciappina. In your capacity as Executive Vice President, Legal &
Corporate Affairs (or such other title as you may have from time to time), you agree to devote your working time and best efforts exclusively
to the performance of your duties and to the furtherance of the Company’s interests. The Company may change your title and your
reporting structure from time to time.

 

Your employment with the Company is subject to
the terms and conditions set forth in this letter, which override anything said to you during your interview or any other discussions
about your employment with the Company or its parent company, PARTS iD, Inc. (“Parent”)

 

Compensation:

 

In consideration of your services, you will be
paid an initial annualized base salary of $300,000, payable (in arrears) in bi-weekly installments (26 payroll cycles) of approximately
$11,538.46 in accordance with the standard payroll practices of the Company and subject to all withholdings and deductions as required
by law. You will be an exempt employee and therefore not eligible for any overtime compensation.

 

In addition to your base salary, beginning with
calendar year 2022 you will be eligible to earn an annual discretionary incentive bonus up to 30% of your annualized base salary.
The actual amount of any annual incentive bonus to be paid to you will be determined by Parent’s board of directors or the Company
based upon your and Parent’s achievement of certain performance goals and upon the financial liquidity and health of Parent, as
determined by Parent’s board of directors or the Company, and such other terms and conditions as the Company may determine from
time to time. It is expected that the performance goals applicable to your annual bonus in respect of 2022 will be outlined by the end
of the first quarter in 2022. Any bonus payable to you will be subject to all withholdings and deductions as required by law. You must
be employed by the Company or Parent on the date of payment of any incentive bonus amount in order to earn such amount.

 

Grant of Equity-Awards:

 

Subject to the approval of Parent’s compensation
committee and in accordance with the Company’s Equity Incentive Plan, Parent shall provide you with a grant of equity awards that
consists of (a) 30,000 restricted stock units of Parent’s common stock, subject to time-based vesting (the “Restricted Stock
Unit Grant”) and (b) 30,000 restricted stock units on Parent common stock that will be subject to performance-based vesting (the
“Performance Unit Grant”). If approved by Parent’s compensation committee, it is expected that the Restricted Stock
Unit Grant will be issued pursuant to a Restricted Stock Unit grant agreement within 60 days following the end of the quarter in which
you start (the “Grant Date”) and will vest in three equal installments on the last day of the quarter following the anniversary
of your start date in 2022, 2023 and 2024. You must be employed by the Company or Parent on the applicable vesting dates and otherwise
in compliance with the terms and conditions set forth in the grant agreement covering the Restricted Stock Unit Grant in order to vest
in the restricted stock units. If approved by Parent’s compensation committee, it is expected that the Performance Unit Grant will
be issued pursuant to a Performance Units grant agreement within 60 days following the end of the quarter in which you start and will
vest at the end of a three-year performance period based on the level of achievement of performance goals set forth in your grant agreement,
as determined by Parent’s compensation committee. You must be employed by the Company or Parent on the applicable vesting date and
otherwise in compliance with the terms and conditions set forth in the grant agreement covering the Performance Unit Grant to vest in
the Performance-Based Units.

 

 

 

 

 

     

     

    

 

Paid Time Off:

 

Your annual Paid Time Off (PTO) entitlement is
20 days (prorated year one based on start date). In addition, you will be permitted to accrue one additional day (beginning on
January 1st of the next calendar year after your anniversary date) for each year of service to a maximum of 25 PTO days.

 

The following summarizes the current PTO policies
that apply to the Company as set forth in the Company’s Employee Handbook, where additional details are provided about these policies.
The Company reserves the right to change these policies in the future, and your PTO will be subject to all such changes. PTO is
accrued on a bi-weekly basis. Time accrued for PTO will be added to your PTO bank when the bi-weekly paycheck is issued. PTO taken will
be subtracted from your accrued time bank in one-hour increments. Note that PTO is also to be used for your own illness. After 90 days
of employment, and for all subsequent years after the 1st of the year, you will immediately accrue 5 PTO days, as part of the paid sick
leave portion of PTO. Unless otherwise required by applicable state law, sick days will not be paid out upon termination of employment.
Accrued but unused PTO will be paid out upon termination of your employment.

 

You will begin accruing PTO on your start date
but are not permitted to utilize PTO until successful completion of your first 90 days of employment. PTO is not considered fully vested,
or fully earned, until the end of the 90-day Evaluation Period. In the event that you require time off during this period, it is subject
to both management and human resources approval and will be unpaid, unless otherwise required by applicable law.

 

The Company’s current policy with respect
to PTO accrual is that you will be permitted to roll over only that amount that you were entitled to accrue during the calendar year.
The amount of PTO that is unused from Year 1, shall be permitted to be rolled over into Year 2, capped at the amount of PTO you would
be permitted or entitled to accrue during the calendar year. Any PTO that is rolled over from Year 1 into the following year shall expire
at the end of the following year.

 

Primary Work Location:

 

Although you shall be expected to travel domestically
and internationally from time to time as necessary to perform your duties, responsibilities, and authorities, your primary work location
shall be at the Company’s headquarters in Cranbury, New Jersey.

 

Benefits:

 

You will be eligible to participate in the Company’s
group medical, dental and vision on the first of the month following your initial 60 days of employment. Medical, dental, vision, disability
insurance and other fringe benefits are as made available to other similarly situated employees of the Company in accordance with, and
subject to, the eligibility and other provisions of such plans and programs.

 

In addition, you will be eligible to participate
and enroll in the Company’s currently established 401k Plan (“Plan”) after six months of employment. The 401(K) Plan
is a defined contribution plan, currently without an employer match.

 

The Company’s benefit plans are subject
to change from time to time as determined by the Company in its discretion, and the Company provides no assurance as to the adoption or
continuation of any particular employee benefit plan or program.

 

    2

     

    

 

Other Terms:

 

You will be subject to all applicable employment
and other policies of the Company as outlined in any Company Employee Handbook that may be adopted (including as amended from time to
time) and elsewhere.

 

You must execute the enclosed non-compete, confidentiality
and invention assignment agreement(s). If you refuse to sign and return the enclosed agreement(s) on or before your employment start date,
then the Company will not employ you.

 

Whether you have disclosed the existence of an
agreement with a predecessor employer or other party that prohibits you from accepting employment with the Company, you agree to indemnify
and hold harmless the Company, Parent, their respective employees, heirs, assigns, and subsidiaries for any action you take that may violate
the terms of any such non-compete or non-solicitation agreement. You also agree to reimburse the Company for all reasonable expenses related
to any legal action, inquiry, or legal proceeding initiated by your predecessor employer(s) or other party against the Company or Parent,
including but not limited to, attorneys’ fees. You understand that the Company will not provide any legal representation or advice
to you should any conflict ensue against the Company by your predecessor employer(s) or other party.

 

Your employment will be at-will, meaning that
you or the Company may terminate the employment relationship at any time, with or without cause, and with or without notice. However,
we request that individuals who terminate employment voluntarily provide us with two weeks’ notice. You also should understand that
the compensation and benefits described in this letter are subject to change during your employment at the discretion of Company or Parent.

 

This offer is contingent upon:

 

		(a)	PARTS iD, LLC. receiving favorable references from your former
employers.

 

		(b)	Completion of, and satisfactory results from, a background
check and a pre-employment drug screening;

 

		(c)	Your execution of the enclosed non-compete, confidentiality
and invention assignment agreement(s); and

 

		(d)	Verification of your right to work in the United States, as
demonstrated by your completion of the I-9 form upon hire and your submission of acceptable documentation (as noted on the I-9 form)
verifying your identity and work authorization within three days of starting employment. For your convenience, a copy of the I-9 Form's
List of Acceptable Documents is enclosed for your review.

 

This offer will be withdrawn, and you will not
become employed by the Company if any of the above conditions are not satisfied.

 

By accepting this offer, you confirm that you
are able to accept this job and carry out the work that it would involve without breaching any legal restrictions on your activities,
such as restrictions imposed by a current or former employer. You also confirm that you will inform the Company about any such restrictions
and provide the Company with as much information about them as possible, including any agreements between you and your current or former
employer describing such restrictions on your activities. You further confirm that you will not remove or take any documents or proprietary
data or materials of any kind, electronic or otherwise, with you from your current or former employer to the Company without written authorization
from your current or former employer. If you have any questions about the ownership of particular documents or other information, discuss
such questions with your former employer before removing or copying the documents or information.

 

All of us at the Company are excited at the prospect
of you joining our team. If you have any questions about the above details, please call me immediately. If you wish to accept this position,
please:

 

		●	Sign below and return this letter agreement within five (5) business days

 

		●	Execute the enclosed non-compete, confidentiality and invention assignment agreement(s) on or before your
employment start date

 

I look forward to you joining the PARTS iD team!

 

Sincerely,

 

	/s/ Antonino Ciappina	 
	Antonino Ciappina	 
	Chief Executive Officer	 

 

Enclosure(s):

 

		●	Non-compete, confidentiality and invention
assignment agreement(s).

 

		●	Employee Handbook (version dated 05/21/2021)

 

	/s/ B. John Pendleton, Jr.	 	 
	Accepted Offer:  B. John Pendleton, Jr.	 
	 	 	 
	Date: September 17, 2021	 
	 	 	 

 

 

3

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