Document:

ybcn_ex42.htm

EXHIBIT 4.2
   
 DESCRIPTION OF SECURITIES
  
 The following description summarizes the material terms of our capital stock as of the date of this registration statement. Because it is only a summary, it does not contain all the information that may be important to you. For a complete description of our capital stock, you should refer to our Amended and Restated Articles of Incorporation and our Amended and Restated Bylaws, and to the provisions of applicable Nevada law.
  
 Common Stock
  
 We are authorized to issue up to 190,000,000 shares of our common stock, par value $0.001. Each share of common stock entitles the holder to one (1) vote on each matter submitted to a vote of our shareholders, including the election of Directors. There is no cumulative voting. Subject to preferences that may be applicable to any outstanding preferred stock, our Shareholders are entitled to receive ratably such dividends, if any, as may be declared from time to time by the Board of Directors. Shareholders have no preemptive, conversion or other subscription rights. There are no redemption or sinking fund provisions related to the common stock. In the event of liquidation, dissolution or winding up of the Company, our Shareholders are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding.
  
 Preferred Stock
  
 We are authorized to issue up to 10,000,000 shares of preferred stock, par value $0.001, issuable in one or more series as may be determined by the Board. Preferred Stock may be issued from time to time in one or more series as determined by the Board of Directors in its sole discretion.
  
 Our Board of Directors is authorized to determine or alter any or all of the rights, preferences, privileges and restrictions granted to or imposed upon any wholly unissued series of preferred stock and, within the limitations or restrictions stated in any resolution or resolutions of the Board of Directors originally fixing the number of shares constituting any series, to increase or decrease (but not below the number of shares of any such series then outstanding) the number of shares comprising any such series subsequent to the issue of shares of that series, to set the designation of any series, and to provide for rights and terms of redemption, conversion, dividends, voting rights, and liquidation preferences of the shares of any such series.
  
 Options
  
 We have no options to purchase shares of our common stock or any other of our securities outstanding as of the date of this Prospectus.
  
 Warrants
  
 We have no warrants to purchase shares of our common stock or any other of our securities outstanding as of the date of this Prospectus.
  
 	 
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 Anti-takeover Effects of Our Articles of Incorporation, as Amended, and Restated Bylaws
  
 Our Amended and Restated Bylaws and Amended and Restated Articles of Incorporation contain certain provisions that may have anti-takeover effects, making it more difficult for or preventing a third party from acquiring control of the Company or changing our board of directors and management. According to our Restated Bylaws and Amended Articles, neither the holders of our common stock nor the holders of our preferred stock have cumulative voting rights in the election of our directors.
  
 		 ·
	 Board of Directors Vacancies. Our Amended and Restated Articles of Incorporation and Amended and Restated bylaws authorize only our board of directors to fill vacant directorships, including newly created seats. In addition, the number of directors constituting our board of directors is permitted to be set only by a resolution adopted by a majority vote of our entire board of directors. These provisions would prevent a stockholder from increasing the size of our board of directors and then gaining control of our board of directors by filling the resulting vacancies with its own nominees. This makes it more difficult to change the composition of our board of directors but promotes continuity of management.

		 ·
	 Advance Notice Requirements for Stockholder Proposals and Director Nominations. Our Amended and Restated Bylaws provide advance notice procedures for 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. Our Amended and Restated bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions might preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders if the proper procedures are not followed. We expect that these provisions might also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our company.

		 ·
	 No Cumulative Voting. The Nevada Revised Statutes provide that stockholders are not entitled to the right to cumulative votes in the election of directors unless a corporation’s articles of incorporation provides otherwise. Our Bylaws do not provide for cumulative voting. The combination of the present ownership by a few stockholders of a significant portion of our issued and outstanding common stock and lack of cumulative voting makes it more difficult for other stockholders to replace our board of directors or for a third party to obtain control of the Company by replacing its board of directors. 

		 ·
	 Issuance of “Blank Check” Preferred Stock. Our board of directors has the authority, without further action by the stockholders, to issue up to additional 10,000,000 shares of “blank check” preferred stock with rights and preferences, including voting rights, designated from time to time by our board of directors. The existence of authorized but unissued shares of preferred stock enables our board of directors to render it more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest, or otherwise; 

		 ·
	 Bylaws Amendments Without Stockholder Approval. Our Bylaws provide that a majority of the authorized number of directors will have the power to adopt, amend or repeal our bylaws without stockholder approval; and

		 ·
	 Broad Indemnity. We are permitted to indemnify directors and officers against losses that they may incur in investigations and legal proceedings resulting from their services to us, which may include services in connection with takeover defense measures. This provision may make it more difficult to remove directors and officers and delay a change in control of our management. 

  
 Anti-takeover Effects of Nevada Law
  
 Business Combinations
  
 The “business combination” provisions of Sections 78.411 to 78.444, inclusive, of the Nevada Revised Statutes, or NRS, generally prohibit a Nevada corporation with at least 200 stockholders from engaging in various “combination” transactions with any interested stockholder for a period of three years after the date of the transaction in which the person became an interested stockholder, unless the transaction is approved by the board of directors prior to the date the interested stockholder obtained such status; and extends beyond the expiration of the three-year period, unless:
  
 	  
	 ·
	 the transaction was approved by the board of directors prior to the person becoming an interested stockholder or is later approved by a majority of the voting power held by disinterested stockholders, or 

	  
	 ·
	 if the consideration to be paid by the interested stockholder is at least equal to the highest of: (a) the highest price per share paid by the interested stockholder within the three years immediately preceding the date of the announcement of the combination or in the transaction in which it became an interested stockholder, whichever is higher, (b) the market value per share of common stock on the date of announcement of the combination and the date the interested stockholder acquired the shares, whichever is higher, or (c) for holders of preferred stock, the highest liquidation value of the preferred stock, if it is higher. 

  
 A “combination” is generally defined to include mergers or consolidations or any sale, lease exchange, mortgage, pledge, transfer or other disposition, in one transaction or a series of transactions, with an “interested stockholder” having: (a) an aggregate market value equal to 5% or more of the aggregate market value of the assets of the corporation, (b) an aggregate market value equal to 5% or more of the aggregate market value of all outstanding shares of the corporation, (c) 10% or more of the earning power or net income of the corporation, and (d) certain other transactions with an interested stockholder or an affiliate or associate of an interested stockholder.
   
 	 
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 In general, an “interested stockholder” is a person who, together with affiliates and associates, owns (or within three years, did own) 10% or more of a corporation’s voting stock. The statute could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, may discourage attempts to acquire our company even though such a transaction may offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.
  
 Because we have less than 200 shareholders of record, these “business combination” provisions do not currently apply to us. We have also elected in our Amended and Restated Articles of Incorporation not to be governed by the “business combination” provisions.
  
 Control Share Acquisitions
  
 The “control share” provisions of Sections 78.378 to 78.3793, inclusive, of the NRS apply to “issuing corporations,” which are Nevada corporations with at least 200 stockholders, including at least 100 stockholders of record who are Nevada residents, and which conduct business directly or indirectly in Nevada. The control share statute prohibits an acquirer, under certain circumstances, from voting its shares of a target corporation’s stock after crossing certain ownership threshold percentages, unless the acquirer obtains approval of the target corporation’s disinterested stockholders. The statute specifies three thresholds: one-fifth or more but less than one-third, one-third but less than a majority, and a majority or more, of the outstanding voting power. Generally, once an acquirer crosses one of the above thresholds, those shares in an offer or acquisition and acquired within 90 days thereof become “control shares” and such control shares are deprived of the right to vote until disinterested stockholders restore the right.
  
 These provisions also provide that if control shares are accorded full voting rights and the acquiring person has acquired a majority or more of all voting power, all other stockholders who do not vote in favor of authorizing voting rights to the control shares are entitled to demand payment for the fair value of their shares in accordance with statutory procedures established for dissenters’ rights.
  
 The effect of the Nevada control share statutes is that the acquiring person, and those acting in association with the acquiring person, will obtain only such voting rights in the control shares as are conferred by a resolution of the disinterested stockholders at an annual or special meeting. The Nevada control share law, if applicable, could have the effect of discouraging takeovers of our Company.
  
 A corporation may elect to not be governed by, or “opt out” of, the control share provisions by making an election in its articles of incorporation or bylaws, provided that the opt-out election must be in place on the 10th day following the date an acquiring person has acquired a controlling interest, that is, crossing any of the three thresholds described above. We have elected in our Amended and Restated Articles of Incorporation not to be governed by the “control share” provisions.
   
 	 
	3Exhibit 4.2

 

DESCRIPTION OF SECURITIES

 

As of March 31, 2022, Rosecliff Acquisition Corp
I, a Delaware corporation (“we,” “our,” “us” or the “company”) had the following three
classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”):
(i) its units, each consisting of one share of the company’s Class A common stock, par value $0.0001 per share (“Class A common
stock”) and one-third of one redeemable warrant, each whole warrant exercisable for one share of Class A common stock at an exercise
price of $11.50 (“redeemable warrant”), (ii) Class A common stock, and (iii) redeemable warrants. In addition, this Description
of Securities also references the company’s Class B common stock, par value $0.0001 per share (the “Class B common stock”
or “founder shares”), which are not registered pursuant to Section 12 of the Exchange Act but are convertible into Class A
common stock. The description of the Class B common stock is included to assist in the description of the Class A common stock. Unless
the context otherwise requires, references to our “sponsor” are to Rosecliff Acquisition Sponsor I LLC, a Delaware limited
liability company and references to our “initial stockholders” are to our sponsor and each of our independent directors, as
they held our founder shares prior to our initial public offering (our “IPO”).

 

Pursuant to our amended and restated certificate
of incorporation, our authorized capital stock consists of 80,000,000 shares of Class A common stock, $0.0001 par value per
share, 20,000,000 shares of Class B common stock, $0.0001 par value per share, and 1,000,000 shares of undesignated preferred
stock, $0.0001 par value per share. The following description summarizes the material terms of our capital stock. Because it is only a
summary, it may not contain all the information that is important to you.

 

Units

 

Each unit consists of one share of Class A
common stock and one-third of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one share of Class A
common stock at a price of $11.50 per share, subject to adjustment as described below. Pursuant to the warrant agreement that governs
the warrants (the “warrant agreement”), a warrant holder may exercise its warrants only for a whole number of the company’s
shares of Class A common stock. This means only a whole warrant may be exercised at any given time by a warrant holder.

 

The shares of Class A common stock and warrants
constituting units began separate trading on March 26, 2021. Holders have the option to continue to hold units or separate their units
into the component securities. Holders will need to have their brokers contact our transfer agent in order to separate the units into
shares of Class A common stock and warrants. Additionally, the units will automatically separate into their component parts and will
not be traded after completion of our initial business combination. No fractional warrants were issued upon separation of the units and
only whole warrants will trade.

 

Common Stock

 

Common stockholders of record are entitled to one
vote for each share held on all matters to be voted on by stockholders and vote together as a single class, except as required by law;
provided, that, prior to our initial business combination, holders of our Class B common stock will have the right to elect all of
our directors and remove members of the board of directors for any reason, and holders of our Class A common stock will not be entitled
to vote on the election of directors during such time. These provisions of our amended and restated certificate of incorporation may only
be amended if approved by holders of a majority of at least 90% of the outstanding shares of our common stock voting at a stockholder
meeting. On any other matter submitted to a vote of our stockholders, holders of our Class B common stock and holders of our Class A
common stock will vote together as a single class, except as required by applicable law or stock exchange rule.

 

Unless specified in our amended and restated certificate
of incorporation or bylaws, or as required by applicable law or stock exchange rules, the affirmative vote of holders of a majority of
the outstanding shares of our common stock that are voted is required to approve any such matter voted on by our stockholders, and, prior
to our initial business combination, the affirmative vote of holders of a majority of the outstanding shares of our Class B common
stock is required to approve the election or removal of directors. There is no cumulative voting with respect to the election of directors,
with the result that the holders of more than 50% of the Class B common stock voted for the election of directors can elect all of
the directors. Our stockholders are entitled to receive ratable dividends when, as and if declared by the board of directors out of funds
legally available therefor.

 

Because our amended and restated certificate of
incorporation authorizes the issuance of up to 80,000,000 shares of Class A common stock, if we were to enter into a business
combination, we may (depending on the terms of such a business combination) be required to increase the number of shares of Class A
common stock which we are authorized to issue at the same time as our stockholders vote on the business combination to the extent we seek
stockholder approval in connection with our initial business combination.

 

In accordance with Nasdaq corporate governance requirements,
we are not required to hold an annual meeting until one year after our first fiscal year end following our listing on Nasdaq. We may not
hold an annual meeting of stockholders until after we consummate our initial business combination and thus may not be in compliance with
Section 211(b) of the DGCL, which requires an annual meeting of stockholders be held for the purposes of electing directors in accordance
with a company’s bylaws unless such election is made by written consent in lieu of such a meeting. Therefore, if our stockholders
want us to hold an annual meeting prior to our consummation of our initial business combination, they may attempt to force us to hold
one by submitting an application to the Delaware Court of Chancery in accordance with Section 211(c) of the DGCL.

 

     

     

    

 

We will provide our public stockholders with the
opportunity to redeem all or a portion of their public shares upon the completion of our initial business combination at a per-share price,
payable in cash, equal to the aggregate amount then on deposit in the trust account calculated as of two business days prior to the consummation
of our initial business combination, including interest (which interest shall be net of taxes payable), divided by the number of then
issued and outstanding public shares, subject to the limitations described herein. The per-share amount we will distribute to investors
who properly redeem their shares will not be reduced by the deferred underwriting commissions we will pay to the underwriters. The redemption
rights will include the requirement that a beneficial owner must identify itself in order to validly redeem its shares. Our initial stockholders,
directors and officers have entered into a letter agreement with us, pursuant to which they have agreed to waive their redemption rights
with respect to any founder shares and public shares held by them in connection with the completion of our initial business combination
or certain amendments to our amended and restated certificate of incorporation. Permitted transferees of our initial stockholders, directors
or officers will be subject to the same obligations.

 

Unlike some blank check companies that hold stockholder
votes and conduct proxy solicitations in conjunction with their initial business combinations and provide for related redemptions of public
shares for cash upon completion of such initial business combinations even when a vote is not required by applicable law or stock exchange
listing requirements, if a stockholder vote is not required by applicable law or stock exchange listing requirements and we do not decide
to hold a stockholder vote for business or other reasons, we will, pursuant to our amended and restated certificate of incorporation,
conduct the redemptions pursuant to the tender offer rules of the SEC, and file tender offer documents with the SEC prior to completing
our initial business combination. Our amended and restated certificate of incorporation requires these tender offer documents to contain
substantially the same financial and other information about the initial business combination and the redemption rights as is required
under the SEC’s proxy rules. If, however, a stockholder approval of the transaction is required by applicable law or stock exchange
listing requirements, or we decide to obtain stockholder approval for business or other reasons, we will, like many blank check companies,
offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules.
If we seek stockholder approval, we will complete our initial business combination only if a majority of the outstanding shares of our
common stock voted are voted in favor of the business combination, unless a greater vote is required by applicable law or stock exchange
rules. A quorum for such meeting will consist of the holders present in person or by proxy of shares of outstanding capital stock of the
company representing a majority of the voting power of all outstanding shares of capital stock of the company entitled to vote at such
meeting. However, the participation of our sponsor, directors, officers, advisors or any of their respective affiliates in privately-negotiated transactions,
if any, could result in the approval of our initial business combination even if a majority of our public stockholders vote, or indicate
their intention to vote, against such business combination. For purposes of seeking approval of the majority of our issued and outstanding
shares of common stock, non-votes will have no effect on the approval of our initial business combination once a quorum is obtained.
These quorum and voting thresholds, and the voting agreements of our initial stockholders, may make it more likely that we will consummate
our initial business combination.

 

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

 

    2

     

    

 

If we seek stockholder approval in connection with
our initial business combination, our initial stockholders have agreed (and their permitted transferees will agree), pursuant to the terms
of a letter agreement entered into with us, to vote their founder shares and any public shares held by them in favor of our initial business
combination. Additionally, each public stockholder may elect to redeem its public shares without voting and, if they do vote, irrespective
of whether they vote for or against the proposed transaction.

 

Pursuant to our amended and restated certificate of incorporation,
if we have not completed our initial business combination within 24 months from the closing of the IPO (i.e. February 17, 2023) or
during any extended time that we have to consummate a business combination as a result of a stockholder vote to amend our certificate
of incorporation (the “Combination Period”), we will (1) cease all operations except for the purpose of winding up, (2) as
promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable
in cash, equal to the aggregate amount then on deposit in the trust account, including interest (less up to $100,000 of interest to pay
dissolution expenses and which interest shall be net of taxes payable), divided by the number of then issued and outstanding public shares,
which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further
liquidating distributions, if any), and (3) as promptly as reasonably possible following such redemption, subject to the approval
of our remaining stockholders and our board of directors, liquidate and dissolve, subject in each case to our obligations under Delaware
law to provide for claims of creditors and the requirements of other applicable law. Our initial stockholders have entered into a letter
agreement with us, pursuant to which they have agreed to waive their rights to liquidating distributions from the trust account with respect
to their founder shares if we fail to complete our initial business combination within the Combination Period. However, to the extent
our initial stockholders, directors acquire public shares, they will be entitled to liquidating distributions from the trust account with
respect to such public shares if we fail to complete our initial business combination within the prescribed time period.

 

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

 

Founder Shares

 

The founder shares are designated as shares of Class B
common stock and are identical to the shares of Class A common stock included in the units, and holders of founder shares have the
same stockholder rights as public stockholders, except that: (1) prior to our initial business combination, only holders of our Class B
common stock have the right to vote on the election of directors and holders of a majority of our outstanding shares of Class B common
stock may remove a member of the board of directors for any reason; (2) the founder shares are subject to certain transfer restrictions
contained in a letter agreement that our initial stockholders, directors and officers have entered into with us; (3) pursuant to
such letter agreement, our initial stockholders, directors and officers have agreed to waive: (i) their redemption rights with respect
to any founder shares and public shares held by them, as applicable, in connection with the completion of our initial business combination;
(ii) their redemption rights with respect to any founder shares and public shares held by them in connection with a stockholder vote
to amend our amended and restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemption
in connection with our initial business combination or to redeem 100% of our public shares if we do not complete our initial business
combination within the Combination Period or (B) with respect to any other provision relating to stockholders’ rights or pre-initial business
combination activity; and (iii) their rights to liquidating distributions from the trust account with respect to any founder shares
they hold if we fail to complete our initial business combination within the Combination Period (although they will be entitled to liquidating
distributions from the trust account with respect to any public shares they hold if we fail to complete our initial business combination
within the prescribed time frame); (4) the founder shares will automatically convert into shares of our Class A common stock at the
time of our initial business combination, or earlier at the option of the holder, on a one-for-one basis, subject to adjustment pursuant
to certain anti-dilution rights, as described in more detail below; and (5) the founder shares are entitled to registration
rights directors and officers. If we submit our initial business combination to our public stockholders for a vote, our initial stockholders
have agreed (and their permitted transferees will agree), pursuant to the terms of a letter agreement entered into with us, to vote their
founder shares and any public shares held by them purchased during or after the IPO in favor of our initial business combination.

 

    3

     

    

 

The shares of Class B common stock will automatically
convert into Class A common stock at the time of our initial business combination, or earlier at the option of the holder, on a one-for-one basis,
subject to adjustment as provided herein. In the case that additional shares of Class A common stock, or equity-linked securities,
are issued or deemed issued in excess of the amounts issued in the IPO and related to the closing of our initial business combination,
the ratio at which the shares of Class B common stock will convert into shares of Class A common stock will be adjusted (unless
the holders of a majority of the issued and outstanding shares of Class B common stock agree to waive such anti-dilution adjustment
with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion
of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of all common stock
issued and outstanding upon the completion of the IPO plus all shares of Class A common stock and equity-linked securities issued
or deemed issued in connection with our initial business combination, excluding any shares or equity-linked securities issued, or
to be issued, to any seller in our initial business combination.

 

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

 

Public Stockholders’ Warrants

 

Each whole warrant entitles the registered holder
to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment as discussed below, at any time
commencing on the later of 30 days after the completion of our initial business combination and 12 months from the closing of
the IPO, except as described below. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number
of shares of Class A common stock. This means only a whole warrant may be exercised at a given time by a warrant holder. No fractional
warrants were issued upon separation of the units and only whole warrantstrade. The warrants will expire five years after the completion
of our initial business combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.

 

We will not be obligated to deliver any Class A
common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement
under the Securities Act covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants is then
effective and a current prospectus relating thereto is current, subject to our satisfying our obligations described below with respect
to registration, or a valid exemption from registration is available, including in connection with a cashless exercise permitted as a
result of a notice of redemption described below under “Redemption of warrants when the price per share of Class A common stock
equals or exceeds $10.00.” No warrant will be exercisable for cash or on a cashless basis, and we will not be obligated to issue
any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified
under the securities laws of the state of the exercising holder, or an exemption is available. In the event that the conditions in the
two immediately preceding sentences are not satisfied with respect to a warrant, the holder of such warrant will not be entitled to exercise
such warrant and such warrant may have no value and expire worthless. In the event that a registration statement is not effective for
the exercised warrants, the purchaser of a unit containing such warrant will have paid the full purchase price for the unit solely for
the share of Class A common stock underlying such unit.

 

    4

     

    

 

We have agreed that as soon as practicable, but
in no event later than 15 business days after the closing of our initial business combination, we will use our commercially reasonable
efforts to file with the SEC a registration statement covering the issuance, under the Securities Act, of the Class A common stock
issuable upon exercise of the warrants, and we will use our commercially reasonable efforts to cause the same to become effective within
60 business days after the closing of our initial business combination and to maintain the effectiveness of such registration statement,
and a current prospectus relating thereto, until the expiration of the warrants in accordance with the provisions of the warrant agreement.

 

Notwithstanding the above, if our shares of Class A
common stock are, at the time of any exercise of a warrant, not listed on a national securities exchange such that they satisfy the definition
of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of public
warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities
Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement, but will use our commercially
reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. In such
event, each holder would pay the exercise price by surrendering the warrants for that number of shares of Class A common stock equal
to the lesser of (A) the quotient obtained by dividing (x) the product of the number of shares of Class A common stock
underlying the warrants, multiplied by the excess of the “fair market value” (defined below) less the exercise price of the
warrants by (y) the fair market value and (B) 0.361. The “fair market value” as used in the preceding sentence shall
mean the volume weighted average price of the shares of Class A common stock for the ten trading days ending on the trading day prior
to the date on which the notice of exercise is received by the warrant agent.

 

Redemption of warrants when the price per share
of Class A common stock equals or exceeds $18.00.    Once the warrants become exercisable, we may redeem
the warrants (except as described herein with respect to the private placement warrants):

 

		●	in whole and not in part;

 

		●	at a price of $0.01 per warrant;

 

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

 

		●	if, and only if, the last reported sale price of our Class A
common stock for any 20-trading days within a 30-trading day period ending on the third trading day prior to the date on which
we send the notice of redemption to the warrant holders (which we refer to as the “Reference Value”) equals or exceeds $18.00
per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described
under the heading “Public Stockholders’ Warrants — Anti-dilution Adjustments”).

 

We will not redeem the warrants as described above
unless a registration statement under the Securities Act covering the issuance of the shares of Class A common stock issuable upon
exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available
throughout the 30-day redemption period. If and when the warrants become redeemable by us, we may exercise our redemption right even
if we are unable to register or qualify the underlying securities for sale under all applicable state securities laws.

 

We have established the last of the redemption criterion
discussed above to prevent a redemption call unless there is at the time of the call a significant premium to the warrant exercise price.
If the foregoing conditions are satisfied and we issue a notice of redemption of the warrants, each warrant holder will be entitled to
exercise his, her or its warrant prior to the scheduled redemption date. However, the price of the Class A common stock may fall
below the $18.00 redemption trigger price (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise
price of a warrant as described under the heading “Public Stockholders’ Warrants — Anti-dilution Adjustments”)
as well as the $11.50 (for whole shares) warrant exercise price after the redemption notice is issued.

 

    5

     

    

 

Redemption of warrants when the price per share
of Class A common stock equals or exceeds $10.00.    Once the warrants become exercisable, we may redeem
the outstanding warrants:

 

		●	in whole and not in part;

 

		●	at $0.10 per warrant upon a minimum of 30 days’
prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption
and receive that number of shares determined by reference to the table below, based on the redemption date and the “fair market
value” of our Class A common stock (as defined below) except as otherwise described below;

 

		●	if, and only if, the Reference Value (as defined above under
“Redemption of warrants when the price per share of Class A common stock equals or exceeds $18.00”) equals or exceeds
$10.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described
under the heading “Public Stockholders’ Warrants — Anti-dilution Adjustments”); and

 

		●	if the Reference Value is less than $18.00 per share (as adjusted
for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described under the heading “Public
Stockholders’ Warrants — Anti-dilution Adjustments”), the private placement warrants must also be concurrently
called for redemption on the same terms as the outstanding public warrants, as described above.

 

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

 

Pursuant to the warrant agreement, references above
to Class A common stock shall include a security other than Class A common stock into which the Class A common stock have
been converted or exchanged for in the event we are not the surviving company in our initial business combination. The numbers in the
table below will not be adjusted when determining the number of shares of Class A common stock to be issued upon exercise of the
warrants if we are not the surviving entity following our initial business combination.

 

The share prices set forth in the column headings
of the table below will be adjusted as of any date on which the number of shares issuable upon exercise of a warrant or the exercise price
of a warrant is adjusted as set forth under the heading “— Anti-dilution Adjustments” below. If the number of shares
issuable upon exercise of a warrant is adjusted, the adjusted share prices in the column headings will equal the share prices immediately
prior to such adjustment, multiplied by a fraction, the numerator of which is the number of shares deliverable upon exercise of a warrant
immediately prior to such adjustment and the denominator of which is the number of shares deliverable upon exercise of a warrant as so
adjusted. The number of shares in the table below shall be adjusted in the same manner and at the same time as the number of shares issuable
upon exercise of a warrant. If the exercise price of a warrant is adjusted, (a) in the case of an adjustment pursuant to the fifth
paragraph under the heading “— Anti-dilution Adjustments” below, the adjusted share prices in the column headings
will equal the unadjusted share price multiplied by a fraction, the numerator of which is the higher of the Market Value and the Newly
Issued Price as set forth under the heading “— Anti-dilution Adjustments” and the denominator of which is $10.00
and (b) in the case of an adjustment pursuant to the second paragraph under the heading “— Anti-dilution Adjustments”
below, the adjusted share prices in the column headings will equal the unadjusted share price less the decrease in the exercise price
of a warrant pursuant to such exercise price adjustment.

 

    6

     

    

 

	Redemption Date (period to	 	Fair Market Value of Class A Common Stock	 
	expiration of warrants)	 	≤10.00	 	 	11.00	 	 	12.00	 	 	13.00	 	 	14.00	 	 	15.00	 	 	16.00	 	 	17.00	 	 	≥18.00	 
	60 months	 	 	0.261	 	 	 	0.281	 	 	 	0.297	 	 	 	0.311	 	 	 	0.324	 	 	 	0.337	 	 	 	0.348	 	 	 	0.358	 	 	 	0.361	 
	57 months	 	 	0.257	 	 	 	0.277	 	 	 	0.294	 	 	 	0.310	 	 	 	0.324	 	 	 	0.337	 	 	 	0.348	 	 	 	0.358	 	 	 	0.361	 
	54 months	 	 	0.252	 	 	 	0.272	 	 	 	0.291	 	 	 	0.307	 	 	 	0.322	 	 	 	0.335	 	 	 	0.347	 	 	 	0.357	 	 	 	0.361	 
	51 months	 	 	0.246	 	 	 	0.268	 	 	 	0.287	 	 	 	0.304	 	 	 	0.320	 	 	 	0.333	 	 	 	0.346	 	 	 	0.357	 	 	 	0.361	 
	48 months	 	 	0.241	 	 	 	0.263	 	 	 	0.283	 	 	 	0.301	 	 	 	0.317	 	 	 	0.332	 	 	 	0.344	 	 	 	0.356	 	 	 	0.361	 
	45 months	 	 	0.235	 	 	 	0.258	 	 	 	0.279	 	 	 	0.298	 	 	 	0.315	 	 	 	0.330	 	 	 	0.343	 	 	 	0.356	 	 	 	0.361	 
	42 months	 	 	0.228	 	 	 	0.252	 	 	 	0.274	 	 	 	0.294	 	 	 	0.312	 	 	 	0.328	 	 	 	0.342	 	 	 	0.355	 	 	 	0.361	 
	39 months	 	 	0.221	 	 	 	0.246	 	 	 	0.269	 	 	 	0.290	 	 	 	0.309	 	 	 	0.325	 	 	 	0.340	 	 	 	0.354	 	 	 	0.361	 
	36 months	 	 	0.213	 	 	 	0.239	 	 	 	0.263	 	 	 	0.285	 	 	 	0.305	 	 	 	0.323	 	 	 	0.339	 	 	 	0.353	 	 	 	0.361	 
	33 months	 	 	0.205	 	 	 	0.232	 	 	 	0.257	 	 	 	0.280	 	 	 	0.301	 	 	 	0.320	 	 	 	0.337	 	 	 	0.352	 	 	 	0.361	 
	30 months	 	 	0.196	 	 	 	0.224	 	 	 	0.250	 	 	 	0.274	 	 	 	0.297	 	 	 	0.316	 	 	 	0.335	 	 	 	0.351	 	 	 	0.361	 
	27 months	 	 	0.185	 	 	 	0.214	 	 	 	0.242	 	 	 	0.268	 	 	 	0.291	 	 	 	0.313	 	 	 	0.332	 	 	 	0.350	 	 	 	0.361	 
	24 months	 	 	0.173	 	 	 	0.204	 	 	 	0.233	 	 	 	0.260	 	 	 	0.285	 	 	 	0.308	 	 	 	0.329	 	 	 	0.348	 	 	 	0.361	 
	21 months	 	 	0.161	 	 	 	0.193	 	 	 	0.223	 	 	 	0.252	 	 	 	0.279	 	 	 	0.304	 	 	 	0.326	 	 	 	0.347	 	 	 	0.361	 
	18 months	 	 	0.146	 	 	 	0.179	 	 	 	0.211	 	 	 	0.242	 	 	 	0.271	 	 	 	0.298	 	 	 	0.322	 	 	 	0.345	 	 	 	0.361	 
	15 months	 	 	0.130	 	 	 	0.164	 	 	 	0.197	 	 	 	0.230	 	 	 	0.262	 	 	 	0.291	 	 	 	0.317	 	 	 	0.342	 	 	 	0.361	 
	12 months	 	 	0.111	 	 	 	0.146	 	 	 	0.181	 	 	 	0.216	 	 	 	0.250	 	 	 	0.282	 	 	 	0.312	 	 	 	0.339	 	 	 	0.361	 
	9 months	 	 	0.090	 	 	 	0.125	 	 	 	0.162	 	 	 	0.199	 	 	 	0.237	 	 	 	0.272	 	 	 	0.305	 	 	 	0.336	 	 	 	0.361	 
	6 months	 	 	0.065	 	 	 	0.099	 	 	 	0.137	 	 	 	0.178	 	 	 	0.219	 	 	 	0.259	 	 	 	0.296	 	 	 	0.331	 	 	 	0.361	 
	3 months	 	 	0.034	 	 	 	0.065	 	 	 	0.104	 	 	 	0.150	 	 	 	0.197	 	 	 	0.243	 	 	 	0.286	 	 	 	0.326	 	 	 	0.361	 
	0 months	 	 	—	 	 	 	—	 	 	 	0.042	 	 	 	0.115	 	 	 	0.179	 	 	 	0.233	 	 	 	0.281	 	 	 	0.323	 	 	 	0.361	 

 

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

 

This redemption feature differs from the typical
warrant redemption features used in some other blank check offerings, which typically only provide for a redemption of warrants for cash
(other than the private placement warrants) when the trading price for the Class A common stock exceeds $18.00 per share for a specified
period of time. This redemption feature is structured to allow for all of the outstanding warrants to be redeemed when the shares of Class A
common stock are trading at or above $10.00 per share, which may be at a time when the trading price of our Class A common stock
is below the exercise price of the warrants. We have established this redemption feature to provide us with the flexibility to redeem
the warrants without the warrants having to reach the $18.00 per share threshold set forth above under “— Redemption of warrants
when the price per share of Class A common stock equals or exceeds $18.00.” Holders choosing to exercise their warrants in
connection with a redemption pursuant to this feature will, in effect, receive a number of shares for their warrants based on an option
pricing model with a fixed volatility input as of the date of the prospectus related to the IPO. This redemption right provides us with
an additional mechanism by which to redeem all of the outstanding warrants, and therefore have certainty as to our capital structure as
the warrants would no longer be outstanding and would have been exercised or redeemed. We will be required to pay the applicable redemption
price to warrant holders if we choose to exercise this redemption right and it will allow us to quickly proceed with a redemption of the
warrants if we determine it is in our best interest to do so. As such, we would redeem the warrants in this manner when we believe it
is in our best interest to update our capital structure to remove the warrants and pay the redemption price to the warrant holders.

 

    7

     

    

 

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

 

No fractional shares of Class A common stock
will be issued upon exercise. If, upon exercise, a holder would be entitled to receive a fractional interest in a share, we will round
down to the nearest whole number of the number of shares of Class A common stock to be issued to the holder. If, at the time of redemption,
the warrants are exercisable for a security other than the shares of Class A common stock pursuant to the warrant agreement (for
instance, if we are not the surviving company in our initial business combination), the warrants may be exercised for such security. At
such time as the warrants become exercisable for a security other than the shares of Class A common stock, the Company (or surviving
company) will use its commercially reasonable efforts to register under the Securities Act the security issuable upon the exercise of
the warrants.

 

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

 

Anti-dilution Adjustments.    If
the number of issued and outstanding shares of Class A common stock is increased by a stock dividend payable in shares of Class A
common stock, or by a split-up of shares of Class A common stock or other similar event, then, on the effective date of such
stock dividend, split-up or similar event, the number of shares of Class A common stock issuable on exercise of each warrant
will be increased in proportion to such increase in the issued and outstanding shares of Class A common stock. A rights offering
made to all or substantially all holders of Class A common stock entitling holders to purchase shares of Class A common stock
at a price less than the “historical fair market value” (as defined below) will be deemed a share dividend of a number of
shares of Class A common stock equal to the product of (1) the number of shares of Class A common stock actually sold in
such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable
for shares of Class A common stock) and (2) one minus the quotient of (x) the price per share of Class A common stock
paid in such rights offering and (y) the historical fair market value. For these purposes, (1) if the rights offering is for
securities convertible into or exercisable for shares of Class A common stock, in determining the price payable for Class A
common stock, there will be taken into account any consideration received for such rights, as well as any additional amount payable upon
exercise or conversion and (2) “historical fair market value” means the volume weighted average price of Class A
common stock during the ten-trading day period ending on the trading day prior to the first date on which the shares of Class A
common stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.

 

    8

     

    

 

In addition, if we, at any time while the warrants
are outstanding and unexpired, pay to all or substantially all of the holders of Class A common stock a dividend or make a distribution
in cash, securities or other assets to the holders of Class A common stock on account of such shares of Class A common stock
(or other securities into which the warrants are convertible), other than (a) as described above, (b) any cash dividends or
cash distributions which, when combined on a per share basis with all other cash dividends and cash distributions paid on the Class A
common stock during the 365-day period ending on the date of declaration of such dividend or distribution does not exceed $0.50 (as
adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) but only with respect to the amount of the
aggregate cash dividends or cash distributions equal to or less than $0.50 per share, (c) to satisfy the redemption rights of the
holders of Class A common stock in connection with a proposed initial business combination, (d) to satisfy the redemption rights
of the holders of Class A common stock in connection with a stockholder vote to amend our amended and restated certificate of incorporation
(A) to modify the substance or timing of our obligation to allow redemption in connection with our initial business combination or
to redeem 100% of our public shares if we do not complete our initial business combination within the Combination Period or (B) with
respect to any other provision relating to stockholders’ rights or pre-initial business combination activity, or (e) in
connection with the redemption of our public shares upon our failure to complete our initial business combination, then the warrant exercise
price will be decreased, effective immediately after the effective date of such event, by the amount of cash and/or the fair market value
of any securities or other assets paid on each shares of Class A common stock in respect of such event.

 

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

 

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

 

In addition, if (x) we issue additional shares
of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of our initial
business combination at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue
price or effective issue price to be determined in good faith by our board of directors and, in the case of any such issuance to our sponsor
or its affiliates, without taking into account any founder shares held by our sponsor or such affiliates, as applicable, prior to such
issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of
the total equity proceeds, and interest thereon, available for the funding of our initial business combination on the date of the completion
of our initial business combination (net of redemptions), and (z) the volume weighted average trading price of our Class A common
stock during the 20-trading day period starting on the trading day prior to the day on which we consummate our initial business combination
(such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest
cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, the $18.00 and $10.00 per share redemption trigger
prices described above under “— Redemption of warrants when the price per share of Class A common stock equals or exceeds
$18.00” and “— Redemption of warrants when the price per share of Class A common stock equals or exceeds $10.00”
will be adjusted (to the nearest cent) to be equal to 180% and 100%, respectively, of the higher of the Market Value and the Newly Issued
Price.

 

    9

     

    

 

In case of any reclassification or reorganization
of the issued and outstanding shares of Class A common stock (other than those described above or that solely affects the par value
of such shares of Class A common stock), or in the case of any merger or consolidation of us with or into another corporation (other
than a merger or consolidation in which we are the continuing corporation and that does not result in any reclassification or reorganization
of our issued and outstanding shares of Class A common stock), or in the case of any sale or conveyance to another corporation or
entity of the assets or other property of us as an entirety or substantially as an entirety in connection with which we are dissolved,
the holders of the warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified
in the warrants and in lieu of the shares of our Class A common stock immediately theretofore purchasable and receivable upon the
exercise of the rights represented thereby, the kind and amount of shares, stock or other equity securities or property (including cash)
receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer,
that the holder of the warrants would have received if such holder had exercised their warrants immediately prior to such event. However,
if such holders were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable
upon such merger or consolidation, then the kind and amount of securities, cash or other assets for which each warrant will become exercisable
will be deemed to be the weighted average of the kind and amount received per share by such holders in such merger or consolidation that
affirmatively make such election, and if a tender, exchange or redemption offer has been made to and accepted by such holders (other than
a tender, exchange or redemption offer made by the company in connection with redemption rights held by stockholders of the company as
provided for in the company’s amended and restated certificate of incorporation or as a result of the redemption of shares of Class A
common stock by the company if a proposed initial business combination is presented to the stockholders of the company for approval) under
circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within
the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part, and together with any affiliate or associate
of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members of any such group of which any such
affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of
the issued and outstanding shares of Class A common stock, the holder of a warrant will be entitled to receive the highest amount
of cash, securities or other property to which such holder would actually have been entitled as a stockholder if such warrant holder had
exercised the warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the shares of Class A
common stock held by such holder had been purchased pursuant to such tender or exchange offer, subject to adjustment (from and after the
consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in the warrant agreement.
Additionally, if less than 70% of the consideration receivable by the holders of Class A common stock in such a transaction is payable
in the form of Class A common stock in the successor entity that is listed for trading on a national securities exchange or is quoted
in an established over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the
registered holder of the warrant properly exercises the warrant within 30 days following public disclosure of such transaction, the
warrant exercise price will be reduced as specified in the warrant agreement based on the per share consideration minus Black-Scholes Warrant
Value (as defined in the warrant agreement) of the warrant.

 

The warrants were issued in registered form under
a warrant agreement between Continental Stock Transfer & Trust Company, as warrant agent, and us. The warrant agreement provides
that (a) the terms of the warrants may be amended without the consent of any holder for the purpose of (i) curing any ambiguity
or correct any mistake, including to conform the provisions of the warrant agreement to the description of the terms of the warrants and
the warrant agreement set forth in the prospectus related to the IPO, or defective provision or (ii) adding or changing any provisions
with respect to matters or questions arising under the warrant agreement as the parties to the warrant agreement may deem necessary or
desirable and that the parties deem to not adversely affect the rights of the registered holders of the warrants and (b) all other
modifications or amendments require the vote or written consent of at least 65% of the then outstanding public warrants and, solely with
respect to any amendment to the terms of the private placement warrants or any provision of the warrant agreement with respect to the
private placement warrants, at least 65% of the then outstanding private placement warrants. You should review a copy of the warrant agreement
for a complete description of the terms and conditions applicable to the warrants.

 

The warrant holders do not have the rights or privileges
of holders of common stock and any voting rights until they exercise their warrants and receive shares of Class A common stock. After
the issuance of shares of Class A common stock upon exercise of the warrants, each holder will be entitled to one vote for each share
held of record on all matters to be voted on by stockholders.

 

    10

     

    

 

No fractional warrants were issued upon separation
of the units and only whole warrants will trade.

 

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 —
Our warrant agreement will 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, which could limit the ability of warrant 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.

 

Our Transfer Agent and Warrant Agent

 

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

 

Our Amended and Restated Certificate of Incorporation

 

Our amended and restated certificate of incorporation
contains certain requirements and restrictions relating to the IPO that will apply to us until the completion of our initial business
combination. These provisions (other than amendments relating to provisions governing the election or removal of directors prior to our
initial business combination, which require the approval of a majority of at least 90% of the outstanding shares of our common stock voting
in a stockholder meeting) cannot be amended without the approval of the holders of at least 65% of our outstanding common stock. Our initial
stockholders may participate in any vote to amend our amended and restated certificate of incorporation and will have the discretion to
vote in any manner they choose. Unless specified in our amended and restated certificate of incorporation or bylaws, or as required by
applicable law or stock exchange rules, the affirmative vote of a majority of the outstanding shares of our common stock that are voted
is required to approve any such matter voted on by our stockholders, and, prior to our initial business combination, the affirmative vote
of holders of a majority of the outstanding shares of our Class B common stock is required to approve the election or removal of
directors. Specifically, our amended and restated certificate of incorporation provides, among other things, that:

 

		●	if we have not completed our initial business combination
within the Combination Period, we will: (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably
possible but not more than ten business days thereafter, redeem 100% of the public shares, at a per-share price, payable in cash,
equal to the aggregate amount then on deposit in the trust account, including interest (less up to $100,000 of interest to pay dissolution
expenses and which interest shall be net of taxes payable), divided by the number of then issued and outstanding public shares, which
redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating
distributions, if any); and (3) as promptly as reasonably possible following such redemption, subject to the approval of our remaining
stockholders and our board of directors, liquidate and dissolve, subject in each case to our obligations under Delaware law to provide
for claims of creditors and the requirements of other applicable law;

 

		●	prior to our initial business combination, we may not issue
additional shares of capital stock that would entitle the holders thereof to (1) receive funds from the trust account or (2) vote
pursuant to our amended and restated certificate of incorporation on any initial business combination;

 

    11

     

    

 

		●	although we do not intend to enter into a business combination
with a target business that is affiliated with our sponsor, our directors or our officers, we are not prohibited from doing so;

 

		●	if a stockholder vote on our initial business combination
is not required by law and we do not decide to hold a stockholder vote for business or other reasons, we will offer to redeem our public
shares pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, and will file tender offer documents with the SEC
prior to completing our initial business combination which contain substantially the same financial and other information about our initial
business combination and the redemption rights as is required under Regulation 14A of the Exchange Act;

 

		●	as long as our securities are listed on Nasdaq, our initial
business combination must be with one or more operating businesses or assets with a fair market value equal to at least 80% of the assets
held in trust (excluding any deferred underwriting commissions and taxes payable on the income earned on the trust account);

 

		●	if our stockholders approve an amendment to our amended and
restated certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemption in connection
with our initial business combination or to redeem 100% of our public shares if we do not complete our initial business combination within
the Combination Period or (B) with respect to any other provision relating to stockholders’ rights or pre-initial business
combination activity, we will provide our public stockholders with the opportunity to redeem all or a portion of their shares of common
stock upon such approval at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account,
including interest (which interest shall be net of taxes payable), divided by the number of then issued and outstanding public shares;
and

 

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

 

In addition, our amended and restated certificate
of incorporation provides 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 following such redemptions.

 

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

 

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.

 

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A “business combination” includes a
merger or sale of more than 10% of our assets. However, the above provisions of Section 203 do not apply if:

 

		●	our board of directors 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 of directors 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 common 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
common stock and preferred 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.

 

Our amended and restated certificate of incorporation
provides that prior to our initial business combination, holders of our Class B common stock will have the right to elect all of
our directors and may remove members of our board of directors for any reason.

 

Exclusive Forum for Certain Lawsuits

 

Our amended and restated certificate of incorporation
provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall,
to the fullest extent permitted by law, be the sole and exclusive forum for any (1) derivative action or proceeding brought on behalf
of our company, (2) action asserting a claim of breach of a fiduciary duty owed by any director, officer, employee or agent of our
company to our company or our stockholders, or any claim for aiding and abetting any such alleged breach, (3) action asserting a
claim against our company or any director, officer or employee of our company arising pursuant to any provision of the DGCL or our amended
and restated certificate of incorporation or our bylaws, or (4) action asserting a claim against us or any director, officer or employee
of our company governed by the internal affairs doctrine except for, as to each of (1) through (4) above, any claim (a) as
to which the Court of Chancery determines that there is an indispensable party not subject to the jurisdiction of the Court of Chancery
(and the indispensable party does not consent to the personal jurisdiction of the Court of Chancery within ten days following such determination),
(b) which is vested in the exclusive jurisdiction of a court or forum other than the Court of Chancery or (c) for which the
Court of Chancery does not have subject matter jurisdiction. In addition, our amended and restated certificate of incorporation provides
that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of
America shall, to the fullest extent permitted by law, be the exclusive forum for the resolution of any complaint asserting a cause of
action arising under the Securities Act against us or our directors, officers, other employees or agents. 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, a court
may determine that this provision is unenforceable, and to the extent it is enforceable, the provision may have the effect of discouraging
lawsuits against our directors, officers, other employees or stockholders, although our stockholders will not be deemed to have waived
our compliance with federal securities laws and the rules and regulations thereunder.

 

    13

     

    

 

Notwithstanding the foregoing, our amended and restated
certificate of incorporation provides that the exclusive forum provision will not apply to suits brought to enforce a duty or liability
created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction. Section 27 of the Exchange
Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act or 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 limit our stockholders’ ability to obtain a favorable
judicial forum for disputes with us and may have the effect of discouraging lawsuits against our directors and officers. Any person or
entity purchasing or otherwise acquiring any interest in any shares of our capital stock shall be deemed to have notice of and to have
consented to the forum provisions in our amended and restated certificate of incorporation. If any action the subject matter of which
is within the scope of the forum provisions is filed in a court other than a court located within the State of Delaware (a “foreign
action”) in the name of any stockholder, such stockholder shall be deemed to have consented to: (x) the personal jurisdiction
of the state and federal courts located within the State of Delaware in connection with any action brought in any such court to enforce
the forum provisions (an “enforcement action”), and (y) having service of process made upon such stockholder in any such
enforcement action by service upon such stockholder’s counsel in the foreign action as agent for such stockholder.

 

Special Meeting of Stockholders

 

Our bylaws provide that special meetings of our
stockholders may be called only by a majority vote of our board of directors, by our chief executive officer or by our chairman, if any.

 

Advance Notice Requirements for Stockholder Proposals and Director
Nominations

 

Our bylaws provide for advance notice procedures
with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at
the direction of our board of directors or a committee of our board of directors. In order for any matter to be “properly brought”
before a meeting, a stockholder will have to comply with advance notice requirements and provide us with certain information. Generally,
to be timely, a stockholder’s notice must be received at our principal executive offices not less than 90 days nor more than
120 days prior to the first anniversary date of the immediately preceding annual meeting of stockholders. Pursuant to Rule 14a-8 of
the Exchange Act, proposals seeking inclusion in our annual proxy statement must comply with the notice periods contained therein. Our
bylaws will also specify requirements as to the form and content of a stockholder’s notice. Our bylaws allow the chairman of the
meeting at a meeting of the stockholders to adopt rules and regulations for the conduct of meetings which may have the effect of precluding
the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions may also defer, delay or
discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise
attempting to influence or obtain control of us.

 

Listing of Securities

 

Our units, Class A common stock and warrants
are listed on Nasdaq under the symbols “RCLFU,” “RCLF,” and “RCLFW,” respectively.

 

 

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