Document:

Exhibit
4.7

 

DESCRIPTION
OF REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

As
of December 31, 2021, the end of the period covered by this Annual Report on Form 10-K, HHG Capital Corporation (the “Company,”
“we,” “us,” or “our”) had four classes of securities registered under Section 12 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”): the Company’s units, ordinary shares, warrants and rights.

 

The
following description of the Company’s capital stock and provisions of the Company’s second amended and restated memorandum
and articles of association, the Companies Act and the common law of the British Virgin Islands are summaries and are qualified in their
entirety by reference to the Company’s second amended and restated memorandum and articles of association, the text of the Companies
Act and the common law of the British Virgin Islands. A copy of the Company’s second amended and restated memorandum and articles
of association has been filed with the SEC as an exhibit to the Annual Report on Form 10-K to which this description has been filed as
an exhibit.

 

General

 

We
are a company incorporated in the British Virgin Islands as a BVI business company (company number 2039955) and our affairs are governed
by our memorandum and articles of association, the Companies Act and the common law of the British Virgin Islands. We are currently authorized
to issue a maximum of 500,000,000 shares of a single class, each with par value of $0.0001. As of the date of hereof, 7,477,000 ordinary
shares are issued and outstanding. No preferred shares are issued or outstanding. The following description summarizes certain terms
of our shares as set out more particularly in our second amended and restated memorandum and articles of association. Because it is only
a summary, it may not contain all the information that is important to you.

 

Units

 

Each unit consists of one ordinary share, one redeemable warrant and one
right. Each redeemable warrant entitles the holder thereof to purchase three-fourths (3/4) of one ordinary share. The exercise price of
the warrants is $11.50 per full share and the warrants shall expire on the five-year anniversary of the consummation of the initial business
combination. Each right entitles the holder thereof to receive one-tenth (1/10) of an ordinary share upon consummation of our initial
business combination. In addition, we will not issue fractional shares in connection with an exchange of rights. Fractional shares will
either be rounded down to the nearest whole share or otherwise addressed in accordance with the applicable provisions of British Virgin
Islands law. As a result, you must hold rights in multiples of 10 in order to receive shares for all of your rights upon closing of a
business combination.

 

The
ordinary shares, warrants and rights begin to trade separately on November 11, 2021.

 

Ordinary
Shares

 

Our
shareholders of record are entitled to one vote for each share held on all matters to be voted on by shareholders. In connection with
any vote held to approve our initial business combination, all of our initial shareholders, as well as all of our officers and directors,
have agreed to vote their respective ordinary shares owned by them immediately prior to our IPO and any shares purchased in our IPO or
following our IPO in the open market in favor of the proposed business combination.

 

We
will proceed with the business combination only if we have net tangible assets of at least $5,000,001 upon consummation of such business
combination and a majority of the ordinary shares voted are voted in favor of the business combination. At least ten days’ notice
must be given for each general meeting (although we will provide whatever minimum number of days are required under Federal securities
laws). Shareholders may vote at meetings in person or by proxy.

 

The
members of our board of directors holds office for the term, if any, fixed by the Resolution of Members appointing him, or until his
earlier death, resignation or removal. 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 eligible to vote for the election of directors can elect all of the directors.

 

    	 

    	 

    

 

Pursuant
to our second amended and restated memorandum and articles of association, if we do not consummate a business combination by 12 months
(or 15 months or up to 21 months if we extend such period) from the consummation of our IPO, we will, as promptly as reasonably possible
but not more than ten business days thereafter, distribute the aggregate amount then on deposit in the trust account, including interest
(net of taxes payable), pro rata to our public shareholders by way of redemption of their shares and cease all operations except for
the purposes of winding up of our affairs. This redemption of public shareholders from the trust account shall be effected as required
by function of our second amended and restated memorandum and articles of association and prior to commencing any voluntary liquidation.
Our initial shareholders have agreed to waive their rights to share in any distribution from the trust account with respect to their
insider shares upon our winding up, liquidation and subsequent dissolution.

 

Our
shareholders have no conversion, preemptive or other subscription rights and there are no sinking fund or redemption provisions applicable
to the ordinary shares, except that public shareholders have the right to have their public shares converted to cash equal to their pro
rata share of the trust account if they vote on the proposed business combination and the business combination is completed. Public shareholders
who convert their public shares into their portion of the trust account still have the right to exercise the redeemable warrants that
they received as part of the units.

 

Register
of Members

 

Under
the Companies Act, the ordinary shares are deemed to be issued when the name of the shareholder is entered in our register of members.
Our register of members will be maintained by our transfer agent American Stock Transfer & Trust Company, LLC, which will enter the
name of Cede & Co in our register of members on the closing of our IPO as nominee for each of the respective public shareholders.
If (a) information that is required to be entered in the register of members is omitted from the register or is inaccurately entered
in the register, or (b) there is unreasonable delay in entering information in the register, a shareholder of the company, or any person
who is aggrieved by the omission, inaccuracy or delay, may apply to the British Virgin Islands courts for an order that the register
be rectified, and the court may either refuse the application or order the rectification of the register, and may direct the company
to pay all costs of the application and any damages the applicant may have sustained.

 

Redeemable
Warrants

 

5,750,000
redeemable warrants are currently outstanding. Each redeemable warrant entitles the registered holder to purchase three-fourths (3/4)
of one ordinary share at a price of $11.50 per full share, subject to adjustment as discussed below, at any time commencing on the later
of the completion of an initial business combination and one (1) year from the effective date of this registration statement. Pursuant
to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of shares. As a result, you must exercise
warrants in multiples of at least four warrants, at a price of $11.50 per full share, subject to adjustment, to validly exercise your
warrants. However, except as set forth below, no warrants will be exercisable for cash unless we have an effective and current registration
statement covering the ordinary shares issuable upon exercise of the warrants and a current prospectus relating to such ordinary shares.
Notwithstanding the foregoing, if a registration statement covering the ordinary shares issuable upon exercise of the warrants is not
effective within 60 days from the consummation of our initial business combination, warrant holders may, until such time as there is
an effective registration statement and during any period when we shall have failed to maintain an effective registration statement,
exercise warrants on a cashless basis pursuant to the exemption from registration provided by Section 3(a)(9) of the Securities Act provided
that such exemption is available. If an exemption from registration is not available, holders will not be able to exercise their warrants
on a cashless basis. The warrants will expire five years from the closing of our initial business combination at 5:00 p.m., Eastern Standard
Time.

 

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

 

	 	●	at
    any time while the warrants are exercisable,

 

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

 

    	 

    	 

    

 

	 	●	if,
    and only if, the reported last sale price of the ordinary shares equals or exceeds $18.00 per share, as adjusted for share splits,
    share capitalizations, rights, issuances, subdivisions, reorganizations, recapitalizations, and the like, for any 20 trading days
    within a 30 trading days period ending on the third business day prior to the notice of redemption to warrant holders (the “Force-Call
    Provision”), and

 

	 	●	if,
    and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants at
    the time of redemption and for the entire 30-days trading period referred to above and continuing each day thereafter until the date
    of redemption.

 

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

 

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

 

If
we call the warrants for redemption as described above, our management will have the option to require all holders that wish to exercise
warrants to do so on a “cashless basis.” In such event, each holder would pay the exercise price by surrendering the whole
warrants for that number of ordinary shares equal to the quotient obtained by dividing (x) the product of the number of ordinary shares
underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value”
(defined below) by (y) the fair market value. The “fair market value” shall mean the volume weighted average price of the
ordinary shares for the 20 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to
the holders of warrants. Whether we will exercise our option to require all holders to exercise their warrants on a “cashless basis”
will depend on a variety of factors including the price of our ordinary shares at the time the warrants are called for redemption, our
cash needs at such time and concerns regarding dilutive share issuances.

 

The
warrants will be issued in registered form under a warrant agreement between American Stock Transfer & Trust Company, LLC, as warrant
agent, and us. The warrant agreement provides that the terms of the warrants may be amended without the consent of any holder to cure
any ambiguity or correct any defective provision, but requires the approval, by written consent or vote, of the holders of a majority
of the then outstanding warrants in order to make any change that adversely affects the interests of the registered holders.

 

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

 

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

 

    	 

    	 

    

 

Except
as described above, no warrants will be exercisable and we will not be obligated to issue ordinary shares unless at the time a holder
seeks to exercise such warrant, a prospectus relating to the ordinary shares issuable upon exercise of the warrants is current and the
ordinary shares have been registered or qualified or deemed to be exempt under the securities laws of the state of residence of the holder
of the warrants. Under the terms of the warrant agreement, we have agreed to use our best efforts to meet these conditions and to maintain
a current prospectus relating to the ordinary shares issuable upon exercise of the warrants until the expiration of the warrants. However,
we cannot assure you that we will be able to do so and, if we do not maintain a current prospectus relating to the ordinary shares issuable
upon exercise of the warrants, holders will be unable to exercise their warrants and we will not be required to settle any such warrant
exercise. If the prospectus relating to the ordinary shares issuable upon the exercise of the warrants is not current or if the ordinary
shares is not qualified or exempt from qualification in the jurisdictions in which the holders of the warrants reside, we will not be
required to net cash settle or cash settle the warrant exercise, the warrants may have no value, the market for the warrants may be limited
and the warrants may expire worthless.

 

Warrant
holders may elect to be subject to a restriction on the exercise of their warrants such that an electing warrant holder (and his, her
or its affiliates) would not be able to exercise their warrants to the extent that, after giving effect to such exercise, such holder
(and his, her or its affiliates) would beneficially own in excess of 9.9% of the ordinary shares issued and outstanding. Notwithstanding
the foregoing, any person who acquires a warrant with the purpose or effect of changing or influencing the control of our company, or
in connection with or as a participant in any transaction having such purpose or effect, immediately upon such acquisition will be deemed
to be the beneficial owner of the underlying ordinary shares and not be able to take advantage of this provision.

 

No
fractional shares will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive
a fractional interest in a share (as a result of a subsequent share capitalizations payable in ordinary shares, or by a split up of the
ordinary shares or other similar event), we will, upon exercise, round up or down to the nearest whole number the number of ordinary
shares to be issued to the warrant holder.

 

We
have agreed that, subject to applicable law, any action, proceeding or claim against us arising out of or relating in any way to the
warrant agreement will be brought and enforced in the courts of the State of New York or the United States District Court for the Southern
District of New York, and we irrevocably submit to such jurisdiction, which jurisdiction will be the exclusive forum for any such action,
proceeding or claim. See “Risk Factors – General Risk Factors – Our warrant agreement and rights agreement designate
the courts of the State of New York or the United States District Court for the Southern District of New York as the sole and exclusive
forum for certain types of actions and proceedings that may be initiated by holders of our warrants or rights, which could limit the
ability of warrant or rights holders to obtain a favorable judicial forum for disputes with our company.” This provision applies
to claims under the Securities Act but does not apply to claims under the Exchange Act or any claim for which the federal district courts
of the United States of America are the sole and exclusive forum.

 

Private
Warrants

 

255,000
private warrants are currently outstanding. The private warrants have terms and provisions that are identical to those of the warrants
being sold as part of the units in our IPO. The private warrants (including the ordinary shares issuable upon exercise of the private
warrants) will not be transferable, assignable or salable until 30 calendar days after the completion of our initial business combination
(except as described herein). The permitted transferees shall mean (i) our officers, directors or their respective affiliates (including
for transfers to an entity’s members upon its liquidation), (ii) to relatives and trusts for estate planning purposes, (iii) by
virtue of the laws of descent and distribution upon death, (iv) pursuant to a qualified domestic relations order, (v) by certain pledges
to secure obligations incurred in connection with purchases of our securities, (vi) by private sales made at or prior to the consummation
of a business combination at prices no greater than the price at which the shares were originally purchased or (vii) to us for no value
for cancellation in connection with the consummation of our initial business combination, in each case (except for clause (vii)) where
the transferee agrees to the terms of the escrow agreement, but will retain all other rights as our shareholders, including, without
limitation, the right to vote their ordinary shares and the right to receive cash dividends, if declared. If dividends are declared and
payable in ordinary shares, such dividends will also be placed in escrow.

 

    	 

    	 

    

 

Rights

 

6,005,000
rights are currently outstanding. Except in cases where we are not the surviving company in a business combination, each holder of a
right will automatically receive one-tenth (1/10) of an ordinary share upon consummation of our initial business combination, even if
the holder of a public right converted all ordinary shares held by him, her or it in connection with the initial business combination
or an amendment to our second amended and restated memorandum and articles of association with respect to our pre-business combination
activities. In the event we will not be the surviving company upon completion of our initial business combination, each holder of a right
will be required to affirmatively convert his, her or its rights in order to receive the one-tenth (1/10) of a share underlying each
right upon consummation of the business combination. No additional consideration will be required to be paid by a holder of rights in
order to receive his, her or its additional ordinary shares upon consummation of an initial business combination. The shares issuable
upon exchange of the rights will be freely tradable (except to the extent held by affiliates of ours). If we enter into a definitive
agreement for a business combination in which we will not be the surviving entity, the definitive agreement will provide for the holders
of rights to receive the same per share consideration the holders of the ordinary shares will receive in the transaction on an as-converted
into ordinary shares basis.

 

We
will not issue fractional shares in connection with an exchange of rights. Fractional shares will either be rounded down to the nearest
whole share or otherwise addressed in accordance with the applicable provisions of British Virgin Islands Law. As a result, you must
hold rights in multiples of 10 in order to receive shares for all of your rights upon closing of a business combination. If we are unable
to complete an initial business combination within the required time period and we liquidate the funds held in the trust account, holders
of rights will not receive any of such funds with respect to their rights, nor will they receive any distribution from our assets held
outside of the trust account with respect to such rights, and the rights will expire worthless. Further, there are no contractual penalties
for failure to deliver securities to the holders of the rights upon consummation of an initial business combination. Additionally, in
no event will we be required to net cash settle the rights. Accordingly, the rights may expire worthless.

 

Dividends

 

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

 

Our
Transfer Agent, Warrant Agent and Rights Agent

 

The
transfer agent for our ordinary shares and warrant agent for our warrants, and rights agent for our rights is American Stock Transfer
& Trust Company, LLC, 6201 15th Avenue, Brooklyn, NY 11219.

 

Listing
of our Securities

 

Our
units, ordinary shares, warrants and rights are listed on NASDAQ under the symbols “HHGCU,” “HHGC,” “HHGCW,”
and “HHGCR,” respectively.

 

 

BRITISH
VIRGIN ISLANDS COMPANY CONSIDERATIONS

 

Our
corporate affairs are governed by our second amended and restated memorandum and articles of association and the provisions of applicable
British Virgin Islands law, including the Companies Act. The Companies Act differs from laws applicable to United States corporations
and their shareholders. Set forth below is a summary of some significant differences between the provisions of the Companies Act applicable
to us and the laws applicable to companies incorporated in the United States and their shareholders. A brief discussion of the procedure
for mergers and similar arrangements in the British Virgin Islands also follows.

 

We
cannot predict whether British Virgin Islands courts would reach the same conclusions based on a particular set of facts as U.S. courts
would be expected to reach. Therefore, you may have more difficulty in protecting your interests in the face of actions by the management,
directors or controlling shareholders than would shareholders of a corporation incorporated in a U.S. jurisdiction, which has developed
a substantial body of case law. The following table provides a comparison between the statutory provisions of the Companies Act together
with the provisions of our second amended and restated memorandum and articles of association, and the Delaware General Corporation Law
relating to shareholders’ rights.

 

    	 

    	 

    

 

	British
    Virgin Islands	 	Delaware
	 	 	 
	Shareholder
    Meetings
	 
	●
    	Held
    at a time and place as designated in the articles of association. Our second amended and restated articles of association provide
    that our board may designate such time and place.	 	●	Held
    at such time or place as designated in the certificate of incorporation or the by-laws, or if not so designated, as determined by
    the board of directors
	 	 	 	 	 
	●
    	May
    be held within or without the British Virgin Islands	 	●
    	May
    be held within or without Delaware
	 	 	 	 	 
	●
    	Notice:  	 	●
    	Notice:
	 	 	 	 	 	 
	 	○	Whenever
    shareholders are required to take action at a meeting, written notice shall state the place, date and hour of the meeting and indicate
    that it is being issued by or at the direction of the person calling the meeting.	 	 	○	Whenever
    shareholders are required to take any action at a meeting, a written notice of the meeting shall be given which shall state the place,
    if any, date and hour of the meeting, and the means of remote communication, if any.
	 	 	 	 	 	 	 
	 	○	A
    copy of the notice of any meeting shall be given personally or sent by mail or electronic form as designated in the our second amended
    and restated articles of association.	 	 	○
    	Written
    notice shall be given not less than 10 nor more than 60 days before the meeting.
	 	 	 	 	 	 	 
	 	○	Notice
    of not less than 10 days’ before the meeting	 	 	 	 

 

	Shareholders’
    Voting Rights
	 	 	 	 	 
	●
    	Any
    action required to be taken by meeting of shareholders may be taken without meeting if consent is in writing and is signed by a majority
    of the shareholders entitled to vote if permitted by the articles of association. Our second amended and restated articles of association
    provide for such consent in writing.	 	●	Any
    action required to be taken by meeting of shareholders may be taken without meeting if consent is in writing and is signed by all
    the shareholders entitled to vote

 

	●
    	Any
    person authorized to vote may authorize another person or persons to act for him by proxy if permitted by the articles of association.
    Our second amended and restated articles of association permit such proxies.	 	●
    	Any
    person authorized to vote may authorize another person or persons to act for him by proxy.
	 	 	 	 	 
	●
    	Quorum
    is as designated in the articles of association. Quorum in our second amended and restated articles of association is shareholders
    representing not less than one-half of the votes of the shares entitled to vote on resolutions of members to be considered at the
    meeting.	 	●
    	For
    stock corporations, certificate of incorporation or by-laws may specify the number to constitute a quorum but in no event shall a
    quorum consist of less than one-third of shares entitled to vote at a meeting. In the absence of such specifications, a majority
    of shares entitled to vote shall constitute a quorum.

 

	●
    	The
    memorandum and articles of association may provide for cumulative voting in the election of directors. Our second amended and restated
    memorandum and articles of association do not provide for cumulative voting.	 	●
    	The
    certificate of incorporation may provide for cumulative voting.

 

    	 

    	 

    

 

	●
    	Under
    our second amended and restated memorandum and articles of association, subject to any rights or restrictions attached to any shares,
    at any general meeting on a show of hands every shareholder who is present in person (or, in the case of a shareholder being a corporation,
    by its duly authorized representative) or by proxy shall have one vote and on a poll every shareholder present in person (or, in
    the case of a shareholder being a corporation, by its duly appointed representative) or by proxy shall have one vote for each share
    which such shareholder is the holder. Voting at any meeting of the shareholders is by show of hands unless a poll is demanded. A
    poll may be demanded by shareholders present in person or by proxy if the shareholder disputes the outcome of the vote on a proposed
    resolution and the chairman shall cause a poll to be taken.	 	 	 
	 	 	 	 	 
	●
    	Changes
    in the rights of shareholders as set forth in our second amended and restated memorandum and articles of association require approval
    of more than 50% of the shareholders.	 	 	 

 

	Directors
	 	 	 	 	 
	●
    	Board
    must consist of at least one director. Our articles of association provide that there shall be no less than two directors.	 	●	Board
    must consist of at least one member.
	 	 	 	 	 
	●
    	Maximum
    number of directors can be changed by an amendment to the articles of association. Our second amended and restated articles of association
    do not provide for a maximum number.	 	●
    	Number
    of board members shall be fixed by the by-laws, unless the certificate of incorporation fixes the number of directors, in which case
    a change in the number shall be made only by amendment of the certificate.
	 	 	 	 	 
	●
    	If
    the board is authorized to change the number of directors actually appointed, provided that the number still falls within the maximum
    and the minimum number of directors as set out in the articles of association, it can do so provided that it complies with the procedure
    set out in the articles of association. Our second amended and restated articles of association permit our board to appoint additional
    directors.	 	 	 

  

	Fiduciary
    Duties
	 	 	 	 	 	 
	●
    	In
    summary, directors and officers owe the following fiduciary duties:	 	●
    	Directors
    and officers must act in good faith, with the care of a prudent person, and in the best interest of the corporation as a whole.
	 	 	 	 	 	 
	 	○
    	Duty
    to act honestly and in good faith in what the directors believe to be in the best interests of the company as a whole;	 	●
    	Directors
    and officers must refrain from self-dealing, usurping corporate opportunities and receiving improper personal benefits.
	 	 	 	 	 	 
	 	○
    	Duty
    to exercise powers for a proper purpose for which those powers were conferred and not for a collateral purpose and directors shall
    not act, or agree to act, in a matter that contravenes the Companies Act or the memorandum and articles of association;	 	●
    	Decisions
    made by directors and officers on an informed basis, in good faith and in the honest belief that the action was taken in the best
    interest of the corporation will be protected by the “business judgment rule.”

 

    	 

    	 

    

 

	 	○
    	Duty
    to exercise the care, diligence and skill that a reasonable director would exercise in the circumstances taking into account, without
    limitation:	 	 	 

 

	 	 	(a)
    the nature of the company;

    (b)
    the nature of the decision; and

    (c)
    the position of the director and the nature of the responsibilities undertaken by him.
	 	 	 
	 	 	 	 	 	 
	 	○
    	Directors
    should not improperly fetter the exercise of future discretion;	 	 	 
	 	 	 	 	 	 
	 	○
    	Duty
    to exercise powers fairly as between different groups of shareholders;	 	 	 
	 	 	 	 	 	 
	 	○
    	Duty
    not to put himself in a position of conflict between their duty to the company and their personal interests; and	 	 	 
	 	 	 	 	 	 
	 	○
    	Duty
    to exercise independent judgment.	 	 	 
	 	 	 	 	 	 
	●
    	The
    Companies Act provides that, a director of a company shall, immediately after becoming aware of the fact that he is interested in
    a transaction entered into, or to be entered into, by the company, disclose the interest to the board of the company. However, the
    failure of a director to disclose that interest does not affect the validity of a transaction entered into by the director or the
    company, so long as the transaction was not required to be disclosed because the transaction is between the company and the director
    himself and is in the ordinary course of business and on usual terms and conditions. Additionally, the failure of a director to disclose
    an interest does not affect the validity of the transaction entered into by the company if (a) the material facts of the interest
    of the director in the transaction are known by the shareholders and the transaction is approved or ratified by a resolution of shareholders
    entitled to vote at a meeting of shareholders or (b) the company received fair value for the transaction.	 	 	 

 

	●
    	Pursuant
    to the Companies Act and the company’s memorandum and articles of association, so long as a director has disclosed any interests
    in a transaction entered into or to be entered into by the company to the board he/she may:	 	 	 
	 	 	 	 	 
	 	(a)	vote
    on a matter relating to the transaction;

    
	 	 	 
	 	 	 	 	 	 
	 	(b)
    	attend
    a meeting of directors at which a matter relating to the transaction arises and be included among the directors present at the meeting
    for the purposes of a quorum; and	 	 	 

 

    	 

    	 

    

 

	 	(c)	sign
    a document on behalf of the company, or do any other thing in his capacity as a director, that relates to the transaction.	 	 	 
	 	 	 	 	 	 
	●
    	As
    set out above, directors have a duty not to put themselves in a position of conflict and this includes a duty not to engage in self-dealing,
    or to otherwise benefit as a result of his position. However, in some instances a breach of this duty can be forgiven and/or authorized
    in advance by the shareholders provided that there is full disclosure by the directors. This can be done by way of permission granted
    in the articles of association or alternatively by shareholder approval at general meetings.	 	 	 

  

	Shareholders’
    Derivative Actions
	 
	●
    	Generally
    speaking, the company is the proper plaintiff in any action. A shareholder may, with the permission of the British Virgin Islands
    Court, bring an action or intervene in a matter in the name of the company, in certain circumstances. Such actions are known as derivative
    actions. The British Virgin Islands Court may only grant permission to bring a derivative action where the following circumstances
    apply:	 	●
    	In
    any derivative suit instituted by a shareholder of a corporation, it shall be averred in the complaint that the plaintiff was a shareholder
    of the corporation at the time of the transaction of which he complains or that such shareholder’s stock thereafter devolved
    upon such shareholder by operation of law.
	 	 	 	 	 
	 	○
    	the
    company does not intend to bring, diligently continue or defend or discontinue the proceedings; and	 	●
    	Complaint
    shall set forth with particularity the efforts of the plaintiff to obtain the action by the board or the reasons for not making such
    effort.
	 	 	 	 	 	 
	 	○
    	it
    is in the interests of the company that the conduct of the proceedings not be left to the directors or to the determination of the
    shareholders as a whole.	 	●
    	Such
    action shall not be dismissed or compromised without the approval of the Chancery Court.
	 	 	 	 	 	 
	●
    	When
    considering whether to grant leave, the British Virgin Islands Court is also required to have regard to the following matters:	 	 	 

 

	 	(a)

                                                                     

                                                                    (b)
	whether the shareholder is acting in good faith;

                                                                      
whether
    a derivative action is in the interests of the company, taking into account the directors’ views on commercial matters;	 	●
    	Shareholders
    of a Delaware corporation that redeemed their shares, or whose shares were cancelled in connection with dissolution, would not be
    able to bring a derivative action against the corporation after the shares have been redeemed or cancelled.
	 	 	 	 	 	 
	 	(c)	whether
    the action is likely to succeed;	 	 	 
	 	 	 	 	 	 
	 	(d)	the
    costs of the proceedings in relation to the relief likely to be obtained; and	 	 	 
	 	 	 	 	 	 
	 	(e)	whether
    another alternative remedy to the derivative action is available.	 	 	 

 

    	 

    	 

    

 

Material
Differences in British Virgin Islands and Delaware Law

 

Certain
Differences in Corporate Law

 

Our
corporate affairs are governed by our second amended and restated memorandum and articles of association and the provisions of applicable
British Virgin Islands law, including the Companies Act. The Companies Act differs from laws applicable to United States corporations
and their shareholders. Set forth below is a summary of the material differences between the provisions of the Companies Act applicable
to us and the laws applicable to companies incorporated in the United States and their shareholders.

 

Mergers
and Similar Arrangements. The Companies Act provides for mergers as that expression is understood under United States corporate law.
Under the Companies Act, two or more companies may either merge into one of such existing companies (the “surviving company”)
or consolidate with both existing companies ceasing to exist and forming a new company (the “consolidated company”). The
procedure for a merger or consolidation between the company and another company (which need not be a British Virgin Islands company,
and which may be the company’s parent or subsidiary, but need not be) is set out in the Companies Act. The directors of the British
Virgin Islands company or British Virgin Islands companies which are to merge or consolidate must approve a written plan of merger or
consolidation which, with the exception of a merger between a parent company and its subsidiary, must also be approved by a resolution
of a majority of the shareholders who are entitled to vote and actually vote at a quorate meeting of shareholders or by written resolution
of the shareholders of the British Virgin Islands company or British Virgin Islands companies which are to merge. A foreign company which
is able under the laws of its foreign jurisdiction to participate in the merger or consolidation is required by the Companies Act to
comply with the laws of that foreign jurisdiction in relation to the merger or consolidation. The company must then execute articles
of merger or consolidation, containing certain prescribed details. The plan and articles of merger or consolidation are then filed with
the Registrar of Corporate Affairs in the British Virgin Islands. The Registrar then registers the articles of merger or consolidation
and any amendment to the memorandum and articles of the surviving company in a merger or the memorandum and articles of association of
the new consolidated company in a consolidation and issue a certificate of merger or consolidation (which is conclusive evidence of compliance
with all requirements of the Companies Act in respect of the merger or consolidation). The merger is effective on the date that the articles
of merger are registered with the Registrar or on such subsequent date, not exceeding thirty days, as is stated in the articles of merger
or consolidation.

 

As
soon as a merger becomes effective: (a) the surviving company or consolidated company (so far as is consistent with its memorandum and
articles of association, as amended or established by the articles of merger or consolidation) has all rights, privileges, immunities,
powers, objects and purposes of each of the constituent companies; (b) in the case of a merger, the memorandum and articles of association
of any surviving company are automatically amended to the extent, if any, that changes to its amended memorandum and articles of association
are contained in the articles of merger or, in the case of a consolidation, the memorandum and articles of association filed with the
articles of consolidation are the memorandum and articles of the consolidated company; (c) assets of every description, including choses-in-action
and the business of each of the constituent companies, immediately vest in the surviving company or consolidated company; (d) the surviving
company or consolidated company is liable for all claims, debts, liabilities and obligations of each of the constituent companies; (e)
no conviction, judgment, ruling, order, claim, debt, liability or obligation due or to become due, and no cause existing, against a constituent
company or against any member, director, officer or agent thereof, is released or impaired by the merger or consolidation; and (f) no
proceedings, whether civil or criminal, pending at the time of a merger by or against a constituent company, or against any member, director,
officer or agent thereof, are abated or discontinued by the merger or consolidation; but: (i) the proceedings may be enforced, prosecuted,
settled or compromised by or against the surviving company or consolidated company or against the member, director, officer or agent
thereof; as the case may be; or (ii) the surviving company or consolidated company may be substituted in the proceedings for a constituent
company. The Registrar shall strike off the register of companies each constituent company that is not the surviving company in the case
of a merger and all constituent companies in the case of a consolidation.

 

    	 

    	 

    

 

If
the directors determine it to be in the best interests of the company, it is also possible for a merger to be approved as a Court approved
plan of arrangement or scheme of arrangement in accordance with the Companies Act. However, we do not anticipate the use of such statutory
provisions because we expect the required terms of the initial business combination will be capable of being achieved through other means,
such as a merger or consolidation (as described above), a share exchange, asset acquisition or control, through contractual arrangements,
of an operating business.

 

Poison
Pill Defenses. Under the Companies Act there are no provisions, which specifically prevent the issuance of preferred shares or any
such other ‘poison pill’ measures. The second amended and restated memorandum and articles of association of the Company
also do not contain any express prohibitions on the issuance of any preferred shares. Therefore, the directors without the approval of
the holders of ordinary shares may issue preferred shares (if such shares have been created and authorized for issue by the Company)
that have characteristics that may be deemed to be anti-takeover. Additionally, such a designation of shares may be used in connection
with plans that are poison pill plans. However, as noted above under the Companies Act, a director in the exercise of his powers and
performance of his duties is required to act honestly and in good faith in what the director believes to be the best interests of the
Company.

 

Directors.
Our directors are appointed by our shareholders. However, the directors may by resolution appoint a replacement director to fill
a casual vacancy arising on the resignation, disqualification or death of a director. The replacement director will then hold office
until the next annual general meeting at which the director he replaces would have been subject to retirement by rotation. Under our
second amended and restated memorandum and articles of association, a director may not be removed from office by a resolution of our
shareholders prior to the consummation of our business combination. There is nothing under the laws of the British Virgin Islands, which
specifically prohibits or restricts the creation of cumulative voting rights for the election of our directors. Our second amended and
restated memorandum and articles of association do not provide for cumulative voting for such elections.

 

There
are no share ownership qualifications for directors. Meetings of our board of directors may be convened at any time by any of our directors.

 

A
meeting of our board of directors will be quorate if at least a majority of the directors are present. At any meeting of our directors,
each director, by his or her presence, is entitled to one vote. Questions arising at a meeting of our board of directors are required
to be decided by simple majority votes of the directors present or represented at the meeting. In the case of an equality of votes, the
chairman of the meeting shall have a second or deciding vote. Our board of directors also may pass resolutions without a meeting by unanimous
written consent.

 

Agents.
Our board of directors has the power to appoint any person (whether or not a director or other officer of the company) to be an agent
of the company except that, as stated in our second amended and restated memorandum and articles of association and the Companies Act,
no agent shall be given any power or authority to amend the memorandum or the articles of association in place of the directors or members;
to designate committees of directors; to delegate powers to a committee of directors; to appoint directors; to appoint an agent; to approve
a plan of merger, consolidation or arrangement; or to make a declaration of solvency or to approve a liquidation plan. The resolution
of directors appointing the agent may authorize the agent to appoint one or more substitutes or delegates to exercise some or all of
the powers conferred on the agent. Our directors may remove an agent and may revoke or vary a power conferred on the agent.

 

Indemnification
of Directors. Our second amended and restated memorandum and articles of association provide that, subject to certain limitations,
the company shall indemnify its directors and officers against all expenses, including legal fees, and against all judgments, fines and
amounts paid in settlement and reasonably incurred in connection with legal, administrative or investigative proceedings. Such indemnity
only applies if the person acted honestly and in good faith with a view to what the person believed were in the best interests of the
company and, in the case of criminal proceedings, the person had no reasonable cause to believe that their conduct was unlawful. The
decision of the directors as to whether the person acted honestly and in good faith and with a view to the best interests of the company
and as to whether the person had no reasonable cause to believe that his conduct was unlawful is, in the absence of fraud, sufficient
for the purposes of the memorandum and articles of association, unless a question of law is involved. The termination of any proceedings
by any judgment, order, settlement, conviction or the entering of a nolle prosequi does not, by itself, create a presumption that the
person did not act honestly and in good faith and with a view to the best interests of the company or that the person had reasonable
cause to believe that his conduct was unlawful.

 

    	 

    	 

    

 

Directors
and Conflicts of Interest. As noted in the table above, pursuant to the Companies Act and the company’s second amended and
restated memorandum and articles of association, a director of a company who has an interest in a transaction and who has declared such
interest to the other directors, may:

 

	 	(a)	vote
    on a matter relating to the transaction;

 

	 	(b)	attend
    a meeting of directors at which a matter relating to the transaction arises and be included among the directors present at the meeting
    for the purposes of a quorum; and

 

	 	(c)	sign
    a document on behalf of the Company, or do any other thing in his capacity as a director, that relates to the transaction.

 

Shareholders’
Suits. Our British Virgin Islands counsel is not aware of any reported class action having been brought in a British Virgin Islands
court. The enforcement of the company’s rights will ordinarily be a matter for its directors.

 

In
certain limited circumstances, a shareholder has the right to seek various remedies against the company in the event the directors are
in breach of their duties under the Companies Act. Pursuant to Section 184B of the Companies Act, if a company or director of a company
engages in, or proposes to engage in or has engaged in, conduct that contravenes the provisions of the Companies Act or the memorandum
or articles of association of the company, the British Virgin Islands Court may, on application of a shareholder or director of the company,
make an order directing the company or director to comply with, or restraining the company or director from engaging in conduct that
contravenes the Companies Act or the memorandum or articles. Furthermore, pursuant to section 184I(1) of the Companies Act a shareholder
of a company who considers that the affairs of the company have been, are being or likely to be, conducted in a manner that is, or any
acts of the company have been, or are likely to be oppressive, unfairly discriminatory, or unfairly prejudicial to him in that capacity,
may apply to the British Virgin Islands Court for an order which, inter alia, can require the company or any other person to pay compensation
to the shareholders.

 

The
Companies Act provides for a series of remedies available to shareholders. Where a company incorporated under the Companies Act conducts
some activity, which breaches the Act or the company’s memorandum and articles of association, the court can issue a restraining
or compliance order. Under the Companies Act, a shareholder of a company may bring an action against the company for breach of a duty
owed by the company to him as a member. A shareholder also may, with the permission of the British Virgin Islands Court, bring an action
or intervene in a matter in the name of the company, in certain circumstances. Such actions are known as derivative actions. As noted
above, the British Virgin Islands Court may only grant permission to bring a derivative action where the following circumstances apply:

 

	 	●	the
    company does not intend to bring, diligently continue or defend or discontinue proceedings; and

 

	 	●	it
    is in the interests of the company that the conduct of the proceedings not be left to the directors or to the determination of the
    shareholders as a whole.

 

	 	●	when
    considering whether to grant leave, the British Virgin Islands Court is also required to have regard to the following matters:

 

	 	-	whether
    the shareholder is acting in good faith;
	 	-	whether
    a derivative action is in the company’s best interests, taking into account the directors’ views on commercial matters;
	 	-	whether
    the action is likely to proceed;
	 	-	the
    costs of the proceedings; and
	 	-	whether
    an alternative remedy is available.

 

Any
member of a company may apply to the British Virgin Islands Court under the Insolvency Act for the appointment of a liquidator to liquidate
the company and the court may appoint a liquidator for the company if it is of the opinion that it is just and equitable to do so.

 

    	 

    	 

    

 

The
Companies Act provides that any shareholder of a company is entitled to payment of the fair value of his shares upon dissenting from
any of the following: (a) a merger if the company is a constituent company, unless the company is the surviving company and the member
continues to hold the same or similar shares; (b) a consolidation if the company is a constituent company; (c) any sale, transfer, lease,
exchange or other disposition of more than 50 per cent in value of the assets or business of the company if not made in the usual or
regular course of the business carried on by the company but not including: (i) a disposition pursuant to an order of the court having
jurisdiction in the matter, (ii) a disposition for money on terms requiring all or substantially all net proceeds to be distributed to
the members in accordance with their respective interest within one year after the date of disposition, or (iii) a transfer pursuant
to the power of the directors to transfer assets for the protection thereof; (d) a compulsory redemption of 10 per cent, or fewer of
the issued shares of the company required by the holders of 90 percent, or more of the shares of the company pursuant to the terms of
the Act; and (e) a plan of arrangement, if permitted by the British Virgin Islands Court.

 

Generally
any other claims against a company by its shareholders must be based on the general laws of contract or tort applicable in the British
Virgin Islands or their individual rights as shareholders as established by the company’s memorandum and articles of association.
There are common law rights for the protection of shareholders that may be invoked, largely derived from English common law. Under the
general English company law known as the rule in Foss v. Harbottle, a court will generally refuse to interfere with the management
of a company at the insistence of a minority of its shareholders who express dissatisfaction with the conduct of the company’s
affairs by the majority or the board of directors. However, every shareholder is entitled to seek to have the affairs of the company
conducted properly according to law and the constituent documents of the corporation. As such, if those who control the company have
persistently disregarded the requirements of company law or the provisions of the company’s memorandum and articles of association,
then the courts may grant relief. Generally, the areas in which the courts will intervene are the following:

 

	 	●	a
    company is acting or proposing to act illegally or beyond the scope of its authority;

 

	 	●	the
    act complained of, although not beyond the scope of the authority, could only be effected if duly authorized by more than the number
    of votes which have actually been obtained;

 

	 	●	the
    individual rights of the plaintiff shareholder have been infringed or are about to be infringed; or

 

	 	●	those
    who control the company are perpetrating a “fraud on the minority.”

 

Under
the law of Delaware, the rights of minority shareholders are similar to that which will be applicable to the shareholders of the company.

 

Compulsory
Acquisition. Under the Companies Act, subject to any limitations in a company’s memorandum or articles, members holding 90%
of the votes of the outstanding shares entitled to vote, and members holding 90% of the votes of the outstanding shares of each class
of shares entitled to vote, may give a written instruction to the company directing the company to redeem the shares held by the remaining
members. Upon receipt of such written instruction, the company shall redeem the shares specified in the written instruction, irrespective
of whether or not the shares are by their terms redeemable. The company shall give written notice to each member whose shares are to
be redeemed stating the redemption price and the manner in which the redemption is to be effected. A member whose shares are to be so
redeemed is entitled to dissent from such redemption, and to be paid the fair value of his shares, as described under “Shareholders’
Suits” above.

 

Share
Repurchases and Redemptions. As permitted by the Companies Act and our second amended and restated memorandum and articles of association,
shares may be repurchased, redeemed or otherwise acquired by us. Depending on the circumstances of the redemption or repurchase, our
directors may need to determine that immediately following the redemption or repurchase we will be able to satisfy our debts as they
fall due and the value of our assets exceeds our liabilities. Our directors may only exercise this power on our behalf, subject to the
Companies Act, our second amended and restated memorandum and articles of association and to any applicable requirements imposed from
time to time by the SEC, the Nasdaq Capital Market or any other stock exchange on which our securities are listed.

 

    	 

    	 

    

 

Dividends.
Subject to the Companies Act and our second amended and restated memorandum and articles of association, our directors may declare dividends
at a time and amount they think fit if they are satisfied, on reasonable grounds, that, immediately after distribution of the dividend,
the value of our assets will exceed our liabilities and we will be able to pay our debts as they fall due. No dividend shall carry interest
against us.

 

Rights
of Non-resident or Foreign Shareholders and Disclosure of Substantial Shareholdings. There are no limitations imposed by our second
amended and restated memorandum and articles of association on the rights of non-resident or foreign shareholders to hold or exercise
voting rights on our shares. In addition, there are no provisions in our second amended and restated memorandum and articles of association
governing the ownership threshold above which shareholder ownership must be disclosed.

 

Untraceable
Shareholders. Under our second amended and restated memorandum and articles of association, we are entitled to sell any shares of
a shareholder who is untraceable, as long as: (a) all checks, not being less than three in total number, for any sums payable in cash
to the holder of such shares have remained uncashed for a period of 12 years; (b) we have not during that time or before the expiry of
the three-month period referred to in (c) below received any indication of the existence of the shareholder or person entitled to such
shares by death, bankruptcy or operation of law; and (c) upon expiration of the 12-year period, we have caused an advertisement to be
published in newspapers, giving notice of our intention to sell these shares, and a period of three months or such shorter period has
elapsed since the date of such advertisement. The net proceeds of any such sale shall belong to us, and when we receive these net proceeds
we shall become indebted to the former shareholder for an amount equal to such net proceeds.

 

Transfer
of Shares. Subject to any applicable restrictions set forth in our second amended and restated memorandum and articles of association
or contractually agreed, any of our shareholders may transfer all or any of his or her shares by an instrument of transfer in the usual
or common form, in the case of listed shares, in any manner permitted by and in accordance with the rules of the relevant exchange, or
in any other form which our directors may approve.

 

Inspection
of Books and Records. Under the Companies Act, members of the general public, on payment of a nominal fee, can obtain copies of the
public records of a company available at the office of the Registrar which will include the company’s certificate of incorporation,
its memorandum and articles of association (with any amendments) and records of license fees paid to date and will also disclose any
articles of dissolution, articles of merger and a register of charges if the company has elected to file such a register. A member of
a company is entitled, on giving written notice to the company, to inspect: (a) the memorandum and articles; (b) the register of members;
(c) the register of directors; and (d) the minutes of meetings and resolutions of members and of those classes of members of which he
is a member; and to make copies of or take extracts from the documents and records referred to in (a) to (d) above.

 

Subject
to the second amended and restated memorandum and articles of association, the directors may, if they are satisfied that it would be
contrary to the company’s interests to allow a member to inspect any document, or part of a document, specified in (b), (c) or
(d) above, refuse to permit the member to inspect the document or limit the inspection of the document, including limiting the making
of copies or the taking of extracts from the records.

 

Where
a company fails or refuses to permit a member to inspect a document or permits a member to inspect a document subject to limitations,
that member may apply to the British Virgin Islands Court for an order that he should be permitted to inspect the document or to inspect
the document without limitation.

 

Dissolution;
Winding Up. As permitted by the Companies Act and our second amended and restated memorandum and articles of association, we may
be voluntarily liquidated under Part XII of the Companies Act by resolution of directors and resolution of shareholders if we have no
liabilities or we are able to pay our debts as they fall due.

 

We
also may be wound up in circumstances where we are insolvent in accordance with the terms of the Insolvency Act.

 

    	 

    	 

    

 

Memorandum
and Articles of Association

 

As
set forth in our second amended and restated memorandum of association, the objects for which we are established are unrestricted and
we shall have full power and authority to carry out any object not prohibited by the Companies Act or as the same may be revised from
time to time, or any other law of the British Virgin Islands.

 

Our
second amended and restated memorandum and articles of association contains provisions designed to provide certain rights and protections
to our ordinary shareholders prior to the consummation of our initial business combination. These provisions cannot be amended without
the approval of 50% of our outstanding ordinary shares attending and voting on such amendment. Our initial shareholders, who will beneficially
own 22.64% of our ordinary shares upon the closing of our IPO, will participate in any vote to amend our second amended and restated
memorandum and articles of association and will have the discretion to vote in any manner they choose. Prior to our initial business
combination, if we seek to amend any provisions of our second amended and restated memorandum and articles of association relating to
shareholders’ rights or pre-business combination activity, we will provide dissenting public shareholders with the opportunity
to redeem their public shares in connection with any such vote on any proposed amendments to our second amended and restated memorandum
and articles of association. We and our directors and officers have agreed not to propose any amendment to our second amended and restated
memorandum and articles of association that would affect the substance and timing of our obligation to redeem our public shares if we
are unable to consummate our initial business combination within 12 months, or 15 months if we have filed a proxy statement, registration
statement or similar filing for an initial business combination within 12 months from the consummation of our IPO but have not completed
the initial business combination within such 12-month period, (as such period may be extended up to 21 months at the election of the
Company subject to the satisfaction of certain conditions) from the closing of our IPO. Our initial shareholders have agreed to waive
any redemption rights with respect to any insider shares and any public shares they may hold in connection with any vote to amend our
second amended and restated memorandum and articles of association prior to our initial business combination.

 

Specifically,
our second amended and restated memorandum and articles of association provide, among other things, that:

 

	 	●	if
    we are unable to consummate our initial business combination within 12 months (or 15 months or up to 21 months if we extend such
    period) from the closing of our IPO, we will, as promptly as reasonably possible but not more than ten business days thereafter,
    distribute the aggregate amount then on deposit in the trust account, including interest (net of taxes payable), pro rata to our
    public shareholders by way of redemption and cease all operations except for the purposes of winding up of our affairs. This redemption
    of public shareholders from the trust account shall be effected as required by function of our second amended and restated memorandum
    and articles of association and prior to commencing any voluntary liquidation; and

 

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

 

	 	●	we
    must (1) seek shareholder approval of such initial business combination at a meeting called for such purpose pursuant to a proxy
    statement meeting the requirements of Regulation 14A under the Exchange Act, or (2) provide our public shareholders with the opportunity
    to sell their public shares to us by means of a tender offer, the documents for which will contain substantially the same financial
    and other information about the initial business combination as is required under Regulation 14A under the Exchange Act; and

 

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

 

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

 

    	 

    	 

    

 

In
addition, our second amended and restated memorandum and articles of association provide that under no circumstances will we redeem our
public shares in an amount that would cause our net tangible assets to be less than $5,000,001.

 

Anti-Money
Laundering — British Virgin Islands

 

In
order to comply with legislation or regulations aimed at the prevention of money laundering we are required to adopt and maintain anti-money
laundering procedures, and may require subscribers to provide evidence to verify their identity. Where permitted, and subject to certain
conditions, we also may delegate the maintenance of our anti-money laundering procedures (including the acquisition of due diligence
information) to a suitable person.

 

We
reserve the right to request such information as is necessary to verify the identity of a subscriber. In the event of delay or failure
on the part of the subscriber in producing any information required for verification purposes, we may refuse to accept the application,
in which case any funds received will be returned without interest to the account from which they were originally debited.

 

If
any person resident in the British Virgin Islands knows or suspects that another person is engaged in money laundering or terrorist financing
and the information for that knowledge or suspicion came to their attention in the course of their business the person will be required
to report his belief or suspicion to the Financial Investigation Agency of the British Virgin Islands, pursuant to the Proceeds of Criminal
Conduct Act 1997 (as amended). Such a report shall not be treated as a breach of confidence or of any restriction upon the disclosure
of information imposed by any enactment or otherwise.ex_340393.htm

Exhibit 10.1         

 LEASE AGREEMENT

 

 

THIS LEASE AGREEMENT (this "Agreement") is made and entered into as of March 1, 2022, at Gwinnett County, Georgia, between ISC Properties, LLC ("Lessor"), with offices at 4355 Shackleford Road, Norcross GA 30093 and CoreCard Corporation, a Georgia corporation ("Lessee").

 

	 	
			1.

				
			Demise and Description of Property. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, for the term and subject to the conditions and covenants hereinafter set forth, the property located in Gwinnett County, Georgia described as follows: approximately 27,285 square feet of office space that is shown on Exhibit A and that is located within the Building at One Meca Way, Norcross, Georgia 30093 (the "Leased Premises"). Lessee will quietly have and enjoy the Leased Premises during the term of this Agreement.

			

 

	 	
			2.

				
			Term.  The term of this Agreement shall commence on March 1, 2022, and end on February 28, 2027.

			

 

	 	
			3.

				
			Rent. For and during the term of this Agreement, Lessee shall pay to Lessor as rent for the Leased Premises and furnishings as detailed on Exhibit A (which amount may be amended by mutual consent from time to time to incorporate changes in the square footage or other factors), payable in advance as below provided. Rent shall be payable by Lessee on or before the first day of the month in respect of which such rent is paid. The amount of rent set forth above includes payment by Lessee to Lessor for use of the Leased Premises, ordinary and reasonable use of electricity, gas, water and sanitary sewers, property taxes, property insurance on property owned by Lessor, security personnel costs, maintenance and trash removal, modular workstations listed on Exhibit A and daily cleaning service for the office area. Leasehold improvements, installation or one-time set-up charges and monthly billings for extra services that are provided to Lessee at its option such as telephone, shipping charges and internet service shall be due upon invoice.

			

 

	 	
			4.

				
			Use of Premises.  The Leased Premises shall be used by Lessee for its lawful operations including the manufacture, sale and distribution of products and services. The premises shall not be used for walk-in retail sales and/or service. Lessee will not do or permit anything to be done in or about the Leased Premises or bring or keep anything in the Leased Premises or Building that will in any way increase the fire insurance on the Building. Lessee will not perform any act or carry on any practices that may injure the Building or Leased Premises or be a nuisance or menace or cause disturbance to other tenants in the Building.

			

 

	 	
			5.

				
			Acceptance of Premises; Alterations.  Lessee accepts the Leased Premises as is and as suited for the uses intended by Lessee. Alterations may not be made to the Leased Premises without prior written consent of Lessor (such consent not to be unreasonably withheld, conditioned or delayed) and any alterations to the Leased Premises except movable furniture, trade fixtures, machinery and equipment shall at Lessor’s option become part of the Building and belong to Lessor. Lessee shall return the Leased Premises at the termination of this Lease in the same condition as when rented, reasonable wear and tear excepted.  Landlord shall maintain in good order and repair the Building where the Leased Premises are located and the common areas associated therewith. Tenant shall maintain in good order and repair the interior of the Leased Premises.

			

 

	 	
			6.

				
			Indemnification and Waiver. Lessee shall indemnify and hold harmless Lessor against and from any and all losses or claims arising from Lessee’s use of the Leased Premises (other than those arising from negligence of the Lessor) or from any breach or default in the performance of any obligation on Lessee’s part under this Agreement or arising from any act, neglect, fault or omission of Lessee or its agents or employees. Lessee, as a material part of the consideration to be rendered to Lessor, waives all claims against Lessor for damages to goods, wares, and merchandise and for injury to Tenants, its agents, employees, or guests on or about the Leased Premises from any cause at any time, other than the negligence of Lessor, its agents, or employees. Notwithstanding anything to the contrary set forth herein, each party, as a material part of the consideration for this Agreement, waives all claims against the other for damages to property (including without limitation improvements, goods, wares and merchandise) and agrees that its casualty insurance shall include a waiver of the insurer’s right to subrogation as to any property damage caused by the other party.

			

 

 

 

 

	 	
			7.

				
			Assignment and Subletting.  Lessee may not assign or sublet or otherwise transfer any of its interest in or to the Leased Premises under this Agreement without Lessor's prior written consent, which shall not be unreasonably withheld, conditioned or delayed.

			

 

	 	
			8.

				
			Security and Access.  Lessee shall abide by and enforce with respect to all persons it allows on the Leased Premises and common areas in the building, the security and restricted-access systems and procedures of Lessor, the non-smoking restrictions, and any extensions, revisions, or substitutions thereof.

			

 

	 	
			9.

				
			Insurance.  Lessee shall maintain in full force and effect on all of its property, possessions, persons, and operations in the Leased Premises a policy or policies of insurance with respect thereto in amounts reasonably acceptable to Lessor and shall provide Lessor with a Certificate of Insurance. Lessor shall be named as Additional Insured on Lessee's insurance. Lessee acknowledges that Lessor will not carry any insurance on any of Lessee's property, possessions, inventory, business, employees, agents, or visitors.

			

 

	 	
			10.

				
			Parking. Lessee shall be entitled to park in common with other tenants in the Building and agrees not to overburden the other tenants in the use of the parking facilities. No vehicles may be repaired or serviced in the parking area and vehicles should not be left overnight in the parking area. Parking is for the use by the Lessee’s employees and its visitors for such periods of time as are reasonably necessary in connection with the approved uses of the Leased Premises.

			

 

	 	
			11.

				
			General.

			

 

	 	
			(a)

				
			This embodies the entire agreement between the parties hereto relative to the subject matter hereof and shall not be modified, changed, or altered in any respect except in writing. No material amendment of this agreement shall be binding on Lessee unless such amendment has been approved by the Board of Directors of CoreCard Corporation.

			

 

	 	
			(b)

				
			The covenants, agreements, and obligations herein contained shall extend to, bind, and inure to the benefit not only of the parties hereto but their successors and assigns; and where more than one party shall be Lessor under this lease; the word "Lessor" whenever used in this lease shall be deemed to include all such parties jointly and severally.

			

 

	 	
			(c)

				
			Whenever under this Agreement a provision is made for notice of any kind, such notice shall be given to Lessor at the address listed in paragraph one and notice to Lessee shall be given at the Leased Premises.

			

 

	 	
			(d)

				
			This Agreement and the rights and obligations of the parties hereunder shall be governed by the laws of the State of Georgia. If any provision of this Agreement or any remedy provided herein be invalid under any applicable law, such provision shall be inapplicable and deemed omitted, but the remaining provisions of this Agreement shall be and remain effective in accordance with their terms. Each party hereby expressly and irrevocably agrees that the other may bring any action or claim to enforce the provisions of this Agreement in the State of Georgia, and each party hereby irrevocably consents to personal jurisdiction in the State of Georgia in the appropriate state or federal court therein. Each party hereby further irrevocably consents to service of process in accordance with the provisions of the laws of the State of Georgia.

			

 

	 	
			(e)

				
			In the event of a default under this Agreement which is not cured within 15 days of the event giving rise to the default, besides other rights or remedies it may have, Lessor shall have the right to either terminate this Agreement or from time to time without terminating this Agreement, relet the Leased Premises or any part thereof for the account and in the name of Lessee. Any deficiency in the rent from such reletting and the rent payable by Lessee shall be paid by Lessee monthly to Lessor.

			

 

	 	
			(f)

				
			Late payments may, at the Lessor's option, be subject to a penalty of 5% of the overdue balance. Payments more than 5 days past due are considered late. Late or delinquent payments will be considered an event of default. Lessee agrees to pay Lessor's costs and expenses, including reasonable attorney fees, related to collection of late or delinquent payments.

			

 

	 	
			(g)

				
			In the event that Lessor fails to vacate the Leased Premises by the expiration date pursuant to Subsection 2 or fails to extend the term of the Lease prior to its expiration date, then the rent for each month or part thereof beyond the expiration date shall be payable at two hundred percent of the then-current monthly rate specified in Subsection 3. Holding over by Lessee after the termination of the lease without the consent of Lessor shall be considered an event of default, notwithstanding the payment of rent.

			

 

IN WITNESS WHEREOF the parties hereto do set their hands and seals the day and year first written above.

 

	LESSOR: 	LESSEE:
	 	 
	
			ISC Properties, LLC

			a Georgia Corporation

			 

			/s/ J. Leland Strange                    

			 

			By: J. Leland Strange                   

			President 

				
			CoreCard Corporation

			a Georgia corporation

			 

			/s/ Matthew A. White                              

			 

			By: Matthew A. White                           

			CFO  

			

 

                                  

 

 

 

Exhibit A                                                     CoreCard Corporation 

 

March 1, 2022

 

	 	 
	
			Office Space (approx.. 27,285 ft)

				 
	 	 
	
			Computer cage for location of servers

				
			N/C

			
	 	 
	
			Video Security System (any additional cameras requested will be at CoreCard expense)

				
			N/C

			
	 
	
			Modular workstations in Leased Premises

				
			N/C

			
	 
	
			Total Monthly Lease Payment 

				 
	
			Year

				
			Month

				
			Annual

				 
	
			1

				
			$28,500

				
			$342,000

				 
	
			2

				
			$30,000

				
			   $360,000

				 
	
			3

				
			$32,000

				
			   $384,000

				 
	
			4

				
			$33,000

				
			   $402,000

				 
	
			5

				
			$34,000

				
			   $408,000

				 
	 
	
			Additional Monthly Contracted Services:

				 
	
			Computer cage electricity to be paid a rate of $450/month/rack (currently 7 racks estimated)

				
			$3,150.00

			
	 	 
	
			Telephone Services (currently based on 51 users)

				
			  $2,375.00

			
	 	 
	
			Internet

				
			$585.00

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