Document:

Exhibit 10.13

 

EXECUTION VERSION

 

[*] Certain information in this document has
been omitted from this exhibit because it is both

 

(i) not material and (ii) would be competitively
harmful if publicly disclosed.

 

FLUE GAS OFFTAKE AND PREFERRED PARTNER AGREEMENT

 

This FLUE GAS OFFTAKE AND
PREFERRED PARTNER AGREEMENT (“Agreement”) is made on November 2, 2021 (the “Effective Date”)
between CarbonFree Chemicals Holdings, LLC, a Delaware limited liability company (“CarbonFree”) and OPAL Fuels
LLC, a Delaware limited liability company (“OPAL”). CarbonFree and OPAL are referred to herein as the “Parties.”

 

RECITALS

 

WHEREAS, OPAL is an emerging
leader in the production and distribution of renewable natural gas (RNG), a proven low carbon fuel with a decades-long track record of
results that has the power to rapidly decarbonize the transportation industry. OPAL captures harmful methane emissions at the source and
recycles the trapped energy into a commercially viable, low-cost alternative to diesel fuel.

 

WHEREAS, CarbonFree is a carbon
capture company that has developed patented and proprietary technologies that capture flue gases that would otherwise release carbon dioxide
(“CO2”) into the earth’s atmosphere and transforms them into solid carbonate materials, including through the application
of its patented SkyCycle® Technology.

 

WHEREAS, OPAL has RNG production
facilities that produce flue gases that could be used by CarbonFree in processing plants that it constructs utilizing the SkyCycle®
Technology (the “SkyCycle® Plants”);

 

WHEREAS, CarbonFree and OPAL
have identified two initial RNG production locations to determine the feasibility of having CarbonFree construct a SkyCycle® Plant
adjacent to one of such locations;

 

NOW THEREFORE, the Parties
are entering into this Agreement to memorialize (i) the terms and conditions upon which CarbonFree will seek to design, construct
and operate, at CarbonFree’s sole cost and expense, a SkyCycle® Plant to capture CO2 from flue gases that are a byproduct at
the Selected Project (as defined below); to (ii) designate CarbonFree as OPAL’s preferred partner for carbon capture projects
that OPAL may wish to pursue; and (iii) to designate OPAL as CarbonFree’s preferred partner for CarbonFree’s RNG requirements
in Eligible Situations, if any.

 

WHEREAS, the Parties desire
to enter into this Agreement to bind themselves to the agreements set forth herein.

 

     

    

    

 

AGREEMENT

 

NOW THEREFORE, in recognition
of the foregoing, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, it is agreed between
and among the Parties as follows:

 

1. Definitions.

 

1.1 “Additional
Potential RNG Production Location(s)” up to two additional locations that OPAL and CarbonFree may, from time to time, agree
to consider as potential sites for the initial Skycycle Plant.

 

1.2 “CARB”
means the California Air Resources Board or its successor.

 

1.3 “CI
Score” means carbon intensity score under the LCFS Regulations.

 

1.4 “CO2”
means carbon dioxide.

 

1.5 “Eligible
Situations” mean circumstances in the continental United States where CarbonFree has the legal right to designate the provider
of RNG in respect of any projects that CarbonFree pursues that have an RNG component, it being understood and acknowledged that CarbonFree
presently has agreements with third parties pursuant to which it does not have the right to designate the RNG provider and it may enter
into similar additional agreements in the future.

 

1.6 “Facilities
Sharing Agreement” means an agreement to be negotiated between the Parties, and any necessary third parties, pursuant to
which the specific responsibilities of the Parties in relation to the co-location of the SkyCycle® Plant adjacent to the Selected
RNG Production Facility (as defined below) shall be set forth in detail. The Facilities Sharing Agreement shall include, among other things,
appropriate indemnification provisions between the Parties.

 

1.7 “Initial
Potential OPAL RNG Production Location(s)” means the [*].

 

1.8 “LCFS”
or “LCFS Regulations” means the regulatory program and policies established under the California Low Carbon
Fuel Standard regulation as set forth in Title 17, California Code of Regulations §95480 et seq., as may be amended from time
to time.

 

1.9 “OPAL
RNG Production Projects” means all existing and future RNG production projects that OPAL owns, develops or operates.

 

1.10 “QAP
Provider” means the provider of a registered Quality Assurance Plan under the LCFS Regulations.

 

2. Determination
of the Selected OPAL RNG Production Project.

 

2.1 Due
Diligence Period.

 

Upon the execution of this Agreement, for a period
of one hundred and eighty (180) days, the Parties will jointly undertake to determine the feasibility of the construction of a SkyCycle
Plant at the Initial Potential OPAL RNG Production Project Locations (the “Initial Due Diligence Period”); provided
that the parties may, by mutual written consent, elect to extend the due diligence period for an additional 180 days (the “Additional
Due Diligence Period,” and together with the Initial Due Diligence Period, the “Due Diligence Period”).
In the event that the Parties mutually determine that the construction of such plant at such location is commercially feasible and desirable,
then the Parties will commence with their respective responsibilities as more fully set forth herein, including without limitation, as
set forth in Sections 2.2 and 2.3 below, as applicable.

 

    -2-

    

    

 

In the event that either of the Parties determines
that the construction of such plant at either of the Initial Potential OPAL RNG Production Locations is not feasible or desirable, the
Parties agree to cooperate to identify Additional Potential OPAL RNG Production Locations in order to determine feasibility of an alternative
OPAL RNG Production Project upon which CarbonFree could construct such SkyCycle Plant.

 

2.2 CarbonFree
Responsibilities.

 

(a) Upon
conclusion of the Due Diligence Period, to the extent the Parties have jointly agreed upon a site location (the “Selected
Project”) for the construction of a SkyCycle Plant, CarbonFree will commence the planning and development for the construction
of a SkyCycle Plant at such location to serve the applicable OPAL RNG Production Project (the “Selected RNG Production Facility”).

 

(b) CarbonFree
will be responsible for all costs associated with the site procurement, planning, development, construction, maintenance, and operation
of the SkyCycle Plant.

 

(c) CarbonFree
will negotiate in good faith with OPAL and necessary third parties to enter into an appropriate Facilities Sharing Agreement in connection
with the construction of the SkyCycle® Plant at the Selected Project location.

 

(d) CarbonFree
will negotiate in good faith with OPAL and necessary third parties to enter into an appropriate operations and maintenance agreement which
will set forth the terms and conditions for CarbonFree to operate and maintain the SkyCycle® Plant upon completion of construction
of the SkyCycle® Plant. CarbonFree acknowledges that it will be responsible for all operations and maintenance of all systems “downstream”
of the Interconnection (as defined below).

 

(e) CarbonFree
acknowledges that at all times the priority of OPAL will be to safely and efficiently operate the Selected RNG Production Facility and
all cooperation and assistance from OPAL shall be subject to this priority. Further, CarbonFree shall use commercially reasonable efforts
to minimize any disruptions to the operations of the Selected RNG Production Facility and shall at all times operate and maintain the
SkyCycle Plant with due care and in accordance with prudent industry practices.

 

(f) CarbonFree
acknowledges that all construction, maintenance, and operational activities of the SkyCycle® Plant for the Selected RNG Production
Facility shall be subject to prior written approval by OPAL and any necessary third parties.

 

    -3-

    

    

 

2.3 OPAL
Responsibilities.

 

(a) Upon
the conclusion of the Due Diligence Period, to the extent the Parties have jointly agreed upon a Selected Project, OPAL will use commercially
reasonable efforts to assist CarbonFree in procuring access to the land upon which to locate the SkyCycle Plant® at the Selected Project
location. CarbonFree acknowledges that OPAL will serve as the lead negotiator in this process in order to minimize any disruption with
OPAL’s operations or its relationship with host of the Selected RNG Production Facility.

 

(b) Opal
will use commercially reasonable efforts to assist CarbonFree in connection with the procurement of all temporary and permanent easements
required by CarbonFree to access and utilize the SkyCycle Plant (it being understood that the area required for the construction and operation
of the plant shall be approximately [*]).

 

(c) OPAL
acknowledges that it will not charge any fees for assisting CarbonFree in accordance with this Agreement and agrees that it will obtain
prior written approval from CarbonFree prior to incurring out-of-pocket expenses that would be reimbursable by CarbonFree.

 

(d) OPAL
acknowledges that it will assist CarbonFree with engineering support and process integration and optimization that is necessary for the
design and construction of the flue gas pipeline interconnection system (the “Interconnection”) to supply flue gases from
the Selected RNG Production Facility to the SkyCycle Plant.

 

(e) Promptly
after the execution of this Agreement, OPAL will provide CarbonFree with all available historical data analyzing flue gas (including its
flow rates, volume, chemical composition and all other data reasonably available or requested by CarbonFree) from the Selected RNG Production
Facility.

 

(f) On
an ongoing basis throughout the term of this Agreement, OPAL will provide CarbonFree with all available data analyzing flue gas (including
its flow rates, volume, chemical composition and all other data reasonably available or requested by CarbonFree) from the Selected RNG
Production Facility and will use reasonable commercial efforts to cause Selected RNG Production Facility to make agreed upon volumes of
flue gas available to the SkyCycle Plant for treatment, provided, however, OPAL shall not provide Carbonfree any warranty as to the quality
or quantity of flue gas from the Selected RNG Production Facility.

 

(g) OPAL
will negotiate in good faith with CarbonFree and necessary third parties to enter into an appropriate Facilities Sharing Agreement in
connection with the construction of the SkyCycle® Plant for the Selected RNG Production Facility.

 

3. Consideration.

 

3.1 For
the duration of the operation of the SkyCycle Plant for the Selected RNG Production Facility, CarbonFree shall be entitled to retain all
payments and revenue generated by the SkyCycle Plant (i) from the sale of any minerals, hydrochloric acid and/or any other compounds
or products produced by such plan, (ii) as a result of carbon credit payments pursuant to Section 45Q of the Internal Revenue
Code, as the same may be amended, updated or replaced from time to time, and (iii) from other federal, state or location entities
for which CarbonFree may be eligible under any existing or future legislation in respect of the carbon captured by the SkyCycle Plant.

 

    -4-

    

    

 

3.2 To
the extent that the CI Score for the RNG produced by the Selected RNG Production Facility is improved by the utilized of the SkyCycle
Plant, the value of any improvement in such CI Score shall be shared by the Parties as follows: [*]%
of the value of any such improvement shall be paid to OPAL, [*]% of the value of any such improvement
shall be paid to CarbonFree. In addition to the foregoing at any time during the Term hereof, in the event that any other jurisdiction
passes legislation that provides for carbon intensity scoring in a manner similar to the LCFS Regulations for which the RNG produced by
the Selected RNG Production Facility is eligible, the Parties agree to share the amount of any improvement in the CI Score resulting from
the SkyCycle Plant in the same amounts as set forth in the immediately preceding sentence. In order to determine the value of the improvement
in CI Score, the Parties agree to use a mutually acceptable QAP Provider to calculate such amount. OPAL makes no warranty or guaranty
with respect to whether RNG from the Selected RNG Production Facility will qualify for, or generate any credits under, the LCFS Regulations
or similar Federal or state regulations.

 

4. Preferred
Partner Status.

 

4.1 CarbonFree
will be the preferred provider of carbon capture technology for OPAL and OPAL shall offer CarbonFree the opportunity to submit a proposal
to supply carbon capture technologies at each OPAL RNG project where OPAL seeks to utilize such technology, to the extent commercially
feasible.

 

4.2 OPAL
will be the preferred provider of RNG to CarbonFree for Eligible Situations and CarbonFree shall offer OPAL the opportunity to submit
a proposal to dispense or otherwise supply RNG to CarbonFree in connection with such Eligible Situations.

 

5. Representations
and Warranties. Each Party hereby makes the following representations and warranties to the other as of the Effective Date:

 

5.1 Organization,
Good Standing and Authority. Each Party is a limited liability company duly organized, validly existing and in good standing under the
laws of the state of such Party’s formation, and qualified to do business in all states in which qualification is so required for
such Party to do business. Each Party has full right, power and authority to enter into and perform its obligations under this Agreement,
to which such Party is a party. This Agreement has been duly authorized, executed and delivered by each Party, and this Agreement constitutes
the legal, valid and binding obligations of each Party, enforceable against such Party, in accordance with its terms.

 

5.2 Compliance;
No Conflicts. The execution, delivery and performance of this Agreement by each Party does not violate, conflict with, or constitute a
default under (either alone or with the giving of notice and/or the passage of time), any statute, ordinance, law, rule regulation, or
other of any governmental entity (collectively, “Law), any agreement to which such Party is a party or any other legal obligation
of such Party; and neither Party requires the consent or authorization of any party, entity or agency in connection with the execution,
delivery and performance of its obligations under this Agreement.

 

    -5-

    

    

 

6. [Reserved.]

 

7. Confidentiality.

 

7.1 The
Parties acknowledge that, in the course of their negotiations under this Agreement, it may be necessary for the Parties to provide documentation,
technical and business information and/or intellectual property, in whatever form recorded (collectively, “Confidential Information”),
to each other. All Confidential Information provided or disclosed by any party to the other parties hereunder shall remain the property
of the disclosing Party, and shall be held in strict confidence by the receiving party, unless the furnishing party otherwise consents
in writing or unless disclosure of such Confidential Information is required by the applicable laws. Confidential Information furnished
by any Party hereunder (a) shall not be reproduced or copied, in whole or in part, by the receiving Party except for use as specifically
authorized by this Agreement; (b) shall, together with any copies thereof, be returned to the disclosing party, or at the request
of the disclosing party, destroyed, when no longer needed for purposes of this Agreement or at the request of the disclosing Party; and
(c) shall only be disclosed by the receiving party to its employees, attorneys, accountants and other professional advisors (“Representatives”)
who have a need to know such Confidential Information in connection with the performance of this Agreement; and who have agreed to comply
with the confidentiality obligations set forth herein, and provided that the receiving party is responsible to ay breach of confidentiality
by its Representatives; (d) If required to be disclosed by law, provided, however, that receiving party gives disclosing party prompt
notice thereof and shall furnish only that portion of the Confidential Information which is legally required, and shall exercise all efforts
required to obtain confidential treatment for such information.

 

7.2 No
license or other right of use except as specifically set forth herein is granted to by either Party to the other Party hereunder by the
disclosure of any Confidential Information hereunder.

 

7.3 Each
Party agrees that it will use the Confidential Information of the other Party solely for the in connection with the Project and the evaluation,
negotiation and possible consummation thereof and for no other purpose.

 

7.4 Each
Party shall retain complete ownership of its technical information and intellectual property rights, including without limitation any
an all patented technology and know how related thereto that were in its possession or owned by such Party prior to the execution of this
Agreement.

 

8. Term
and Termination.

 

8.1 Term.
Except as otherwise expressly set forth herein, including as set forth in Section 2.1, this Agreement shall terminate and the obligations
hereunder shall be deemed completed upon the later of (i) the second anniversary of the Effective Date, or (ii) such other date
as the Party’s may mutually agree in writing in the event that the Parties determine to pursue other projects similar to those described
herein.

 

    -6-

    

    

 

9. Miscellaneous.

 

9.1 This
Agreement contains the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersede
all prior agreements and understandings, whether written or oral, relating to such subject matter in any way.

 

9.2 This
Agreement and all controversies arising from or relating to performance under this Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without giving effect to such state’s rules concerning conflicts of laws that might provide
for any other choice of law.

 

9.3 This
Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and assigns. Neither Party
may transfer, assign or delegate and of their rights or obligations hereunder without the other Party’s prior written consent.

 

9.4 This
Agreement may be waived, amended or modified only by an instrument in writing signed by the party against which such waiver, amendment
or modification is sought to be enforced.

 

9.5 This
Agreement may be executed in counterparts, each of which together shall be considered a single document. Delivery of executed signature
pages by facsimile or electronic transmission will constitute effective delivery.

 

[SIGNATURE PAGE FOLLOWS]

 

    -7-

    

    

 

IN WITNESS WHEREOF, the undersigned
have executed this Agreement as of the date first above written above.

 

	CARBONFREE CHEMICALS HOLDINGS, LLC

	 
	 	 
	/s/ Martin Keighley	 
	By:	Martin Keighley	 
	Title:	/s/ Martin Keighley	 

 

	OPAL FUELS LLC

	 
	 	 
	/s/ Jonathan Maurer	 
	By:	Jonathan Maurer	 
	Title:	Co-Chief Executive Officer	 

 

 

-8-Exhibit
4.5

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES

REGISTERED
PURSUANT TO SECTION1 12 OF THE

SECURITIES
EXCHANGE ACT OF 1934

 

The
following summary of the registered securities of Pono Capital Corp. does not purport to be complete and is qualified in its entirety
by reference to our certificate of incorporation, as amended and bylaws, each of which are incorporated by reference as an exhibit to
the Annual Report on Form 10-K of which this Exhibit is a part, and certain provisions of Delaware law. Unless the context requires otherwise,
all references to the “Company,” “we,” “our,” and “us” in this Exhibit refer to Pono
Capital Corp.

 

Pursuant
to our third amended and restated certificate of incorporation we will be authorized to issue 100,000,000 shares of our Class A common
stock, $0.000001 par value, 10,000,000 shares of our Class B common stock, $0.000001 par value, and 1,000,000 shares of undesignated
preferred stock, $0.000001 par value.

 

Units

 

Each
unit has an offering price of $10.00 and consists of one share of Class A common stock and three-quarters of one redeemable warrant.
Each whole warrant entitles the holder thereof to purchase one share of our Class A common stock.

 

Placement
Units

 

The
placement units are identical to the units sold in the IPO except that (a) the placement units and their component securities
will not be transferable, assignable or saleable until 30 days after the consummation of our initial business combination except to permitted
transferees, (b) the placement shares and placement warrants, so long as they are held by our sponsor or its permitted transferees, (i)
will not be redeemable by us, (ii) may be exercised by the holders on a cashless basis, and (iii) will be entitled to registration rights.

 

Common
Stock

 

As
of March 25, 2022, 12,021,675 shares of Class A common stock, $0.000001 per share par value, and 2,875,000 shares of Class B common stock,
$0.000001 per share par value, were issued and outstanding, respectively. As of March 25, 2022, 11,500,000 shares of Class A Common Stock
outstanding are subject to possible redemption.

 

Stockholders
of record are entitled to one vote for each share held (on an as-converted to Class A common stock basis) on all matters to be voted
on by stockholders. Prior to our initial business combination, only holders of our founder shares will have the right to vote on the
appointment of directors. In addition, prior to the completion of an initial business combination, holders of a majority of our founder
shares may remove a member of the board of directors for any reason. These provisions of our third amended and restated certificate of
incorporation may be amended only by approval of 90% of the shares of common stock voting in an annual meeting. With respect to any other
matter submitted to a vote of our stockholders, including any vote in connection with our initial business combination, except as required
by law, holders of our founder shares and holders of our public shares will vote together as a single class, with each share entitling
the holder to one vote for each share held (on an as-converted to Class A common stock basis).

 

    	 

     

    

 

Unless
specified in our third amended and restated certificate of incorporation, or as required by applicable provisions of the DGCL or applicable
stock exchange rules, the affirmative vote of a majority of our shares of common stock that are voted is required to approve any such
matter voted on by our stockholders. Our board of directors is divided into three classes, each of which will generally serve for a term
of three years with only one class of directors being elected in each year. There is no cumulative voting with respect to the election
of directors, with the result that the holders of more than 50% of the shares voted for the election of directors can elect all of the
directors. 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 third amended and restated certificate of incorporation authorizes the issuance of up to 100,000,000 shares of our 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 our Class A common stock which we will be authorized to issue at the same time as our stockholders vote
on the initial business combination to the extent we seek stockholder approval in connection with our initial business combination.

 

Our
board of directors is divided into three classes with only one class of directors being elected in each year and each class (except for
those directors appointed prior to our first annual meeting of stockholders) serving a three-year term. In accordance with the 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. Under Section 211(b) of the DGCL, we are, however, required to hold annual meetings of stockholders for the purpose
of electing directors in accordance with our Bylaws, unless such election is made by written consent in lieu of such a meeting. We may
not hold an annual meeting of stockholders to elect new directors prior to the completion of our initial business combination, and thus
we may not be in compliance with Section 211(b) of the DGCL, which requires an annual meeting. Therefore, if our stockholders want us
to hold an annual meeting prior to the completion of an 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. Prior to the completion of an initial
business combination, any vacancy on the board of directors may be filled by a nominee chosen by holders of a majority of our founder
shares. In addition, prior to the completion of an initial business combination, holders of a majority of our founder shares may remove
a member of the board of directors for any reason.

 

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 completion of our initial business combination, including interest earned on the funds
held in the trust account and not previously released to us to pay our taxes, if any (less up to $70,000 of interest to pay taxes and
if needed dissolution expenses) divided by the number of the then outstanding public shares, subject to the limitations described herein.
The amount in the trust account is initially $10.15 per public share. 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
sponsor, directors and each member of our management team have entered into a letter agreement with us, pursuant to which they have agreed
to waive their redemption rights with respect to their founder shares and any public shares held by them in connection with (i) the completion
of our initial business combination and (ii) a stockholder vote to approve an amendment to our third amended and restated certificate
of incorporation that would affect 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 have not completed an initial business combination within the period to consummate
the initial business combination. Unlike many 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 law, if a stockholder vote is not required by applicable law or stock exchange
rule and we do not decide to hold a stockholder vote for business or other reasons, we will, pursuant to our third 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
third 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 rule, 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 shares of common stock voted are voted in favor of our initial business combination.
However, the participation of our sponsor, officers, directors, advisors or 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 initial business combination. For purposes of seeking approval of the majority of our
outstanding common stock, non-votes will have no effect on the approval of our initial business combination once a quorum is obtained.

 

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 third 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 Excess Shares. 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 our initial business combination. And, as a result, such stockholders will continue to hold that number of shares
exceeding 15% and, in order to dispose of such shares would be required to sell their shares in open market transactions, potentially
at a loss.

 

If
we seek stockholder approval in connection with our initial business combination, pursuant to the terms of a letter agreement entered
into with us, our sponsor, directors and each member of our management team have agreed to vote their founder shares and any public shares
purchased during or after the IPO, in favor of our initial business combination. As a result, in addition to our initial stockholders’
founder shares, we would need 385,620, or 3.86%, of the 10,000,000 public shares sold in the IPO to be voted in favor of an initial
business combination in order to have our initial business combination approved. Additionally, each public stockholder may elect to redeem
its public shares irrespective of whether they vote for or against the proposed transaction.

 

Pursuant
to our third amended and restated certificate of incorporation, if we have not completed an initial business combination within the period
to consummate the initial business combination, we will (i) cease all operations except for the purpose of winding up; (ii) as promptly
as reasonably possible but no more than ten business days thereafter subject to lawfully available funds therefor, redeem the public
shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest
earned on the funds held in the trust account and not previously released to us to pay our taxes, if any (less up to $70,000 of interest
to pay taxes and if needed dissolution expenses) divided by the number of the then outstanding public shares, which redemption will completely
extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any),
subject to applicable law; and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining
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 sponsor and members of our management team have entered into
letter agreements 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 do not complete an initial business combination within the period to consummate the initial
business combination. However, if our sponsor or members of our management team acquire public shares in or after the IPO, they
will be entitled to liquidating distributions from the trust account with respect to such public shares if we do not 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 are 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 public stockholders with the opportunity
to redeem their public shares for cash at a per unit price equal to the aggregate amount then on deposit in the trust account, including
interest earned on the funds held in the trust account and not previously released to us to pay our taxes, if any (less up to $70,000
of interest to pay taxes and if needed dissolution expenses) divided by the number of the then outstanding public shares, upon the completion
of our initial business combination, subject to the limitations described herein.

 

Founder
Shares and Placement Shares

 

The
founder shares and placement shares are identical to the shares of Class A common stock included in the units being sold in the IPO,
and holders of founder shares and placement shares have the same stockholder rights as public stockholders, except that (i) the founder
shares and placement shares are subject to certain transfer restrictions, as described in more detail below, (ii) our sponsor, officers
and directors have entered into a letter agreement with us, pursuant to which they have agreed (A) to waive their redemption rights with
respect to any founder shares, placement shares and any public shares held by them in connection with the completion of our initial business
combination, (B) to waive their redemption rights with respect to their founder shares, placement shares, and public shares in connection
with a stockholder vote to approve an amendment to our third amended and restated certificate of incorporation to (i) modify the substance
or timing of our obligation to provide for the redemption of our public shares in connection with an initial business combination or
to redeem 100% of our public shares if we do not complete our initial business combination within 12 months (or up to 18 months from
the closing of the IPO at the election of the Company in two separate three month extensions subject to satisfaction of certain
conditions, including the deposit of up to $1,000,000, or $1,150,000 if the underwriters’ over-allotment option is exercised in
full ($0.10 per unit in either case) for each three month extension, into the trust account, or as extended by the Company’s stockholders
in accordance with our third amended and restated certificate of incorporation) from the closing of the IPO or (ii) with respect
to any other material provisions relating to stockholders’ rights or pre-initial business combination activity, and (C) to waive
their rights to liquidating distributions from the trust account with respect to any founder shares or placement shares held by them
if we fail to complete our initial business combination within 12 months from the closing of the IPO, subject to extension as
provided herein, 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 such time period, (iii) the founder shares are shares of our
founder shares that will automatically convert into shares of our Class A common stock at the time of our initial business combination
on a one-for-one basis, subject to adjustment pursuant to certain anti-dilution rights as described herein and (iv) are entitled to registration
rights. If we submit our initial business combination to our public stockholders for a vote, our sponsor, officers and directors have
agreed (and its permitted transferees will agree) pursuant to the letter agreement to vote any founder shares held by them and any public
shares purchased during or after the IPO (including in open market and privately-negotiated transactions) in favor of our initial
business combination.

 

In
the case that additional shares of Class A common stock or equity-linked securities are issued or deemed issued in connection with our
initial business combination, the number of shares of Class A common stock issuable upon conversion of all founder shares will equal,
in the aggregate, on an as-converted basis, approximately 20% of the sum of the total number of all shares of common stock outstanding
upon the completion of the IPO (without giving effect to the private placement and assuming they do not purchase any units in
the IPO), plus the total number of shares of Class A common stock issued, or deemed issued or issuable upon conversion or exercise
of any equity-linked securities or rights issued or deemed issued, by the Company in connection with or in relation to the consummation
of the initial business combination, excluding any shares of Class A common stock or equity-linked securities exercisable for or convertible
into shares of Class A common stock issued, or to be issued, to any seller in the initial business combination and any private placement-equivalent
units issued to our sponsor, officers or directors upon conversion of working capital loans; provided that such conversion of founder
shares will never occur on a less than one for one basis. We cannot determine at this time whether a majority of the holders of our founder
shares at the time of any future issuance would agree to waive such adjustment to the conversion ratio.

 

Prior
to our initial business combination, only holders of our founder shares will have the right to vote on the appointment of directors.
Holders of our public shares will not be entitled to vote on the appointment of directors during such time. In addition, prior to the
completion of an initial business combination, holders of a majority of our founder shares may remove a member of the board of directors
for any reason. These provisions of our third amended and restated certificate of incorporation may only be amended by approval of a
majority of at least 90% of our founder shares voting in an annual meeting. With respect to any other matter submitted to a vote of our
stockholders, including any vote in connection with our initial business combination, except as required by law, holders of our founder
shares and holders of our public shares will vote together as a single class, with each share entitling the holder to one vote.

 

    	 

     

    

 

Preferred
Stock

 

Our
third amended and restated certificate of incorporation authorizes 1,000,000 shares of preferred stock and provides that shares of preferred
stock may be issued from time to time in one or more series. Our board of directors is authorized to fix the voting rights, if any, designations,
powers, preferences, the relative, participating, optional or other special rights and any qualifications, limitations and restrictions
thereof, applicable to the shares of each series. Our board of directors will be able to, without stockholder approval, issue shares
of preferred stock with voting and other rights that could adversely affect the voting power and other rights of the holders of the common
stock and could have anti-takeover effects. The ability of our board of directors to issue shares of preferred stock without stockholder
approval could have the effect of delaying, deferring or preventing a change of control of us or the removal of existing management.
We have no shares of preferred stock issued and outstanding at the date hereof. Although we do not currently intend to issue any shares
of preferred stock, we cannot assure you that we will not do so in the future. No shares of preferred stock are being issued or registered
in the IPO. 

 

Public
Stockholders’ Warrants

 

Each
whole warrant entitles the registered holder to purchase one share of our 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 12 months from the closing of the IPO and 30 days after
the completion of our initial business combination. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only
for a whole number 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 will be issued upon separation of the units and only whole warrants will trade. Accordingly, unless you purchase
at least two units, you will not be able to receive or trade a whole warrant.

 

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 shares of 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 with respect to the shares of Class A common
stock and warrants underlying 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. No warrant will be exercisable, and we will not be obligated to issue shares
of Class A common stock upon exercise of a warrant unless Class A common stock issuable upon such warrant exercise has been registered,
qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. In the
event that the conditions in the two immediately preceding sentences are not satisfied with respect to a warrant, the holder of such
warrant will not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In no event will we be
required to net cash settle any warrant. In the event that a registration statement is not effective for the exercised warrants, the
purchaser of a unit containing such warrant, if not cash settled, will have paid the full purchase price for the unit solely for the
share of Class A common stock and warrants underlying such unit.

 

We
are not registering the shares of Class A common stock issuable upon exercise of the warrants at this time. However, 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 best efforts to file with the SEC a registration statement registering the issuance of the shares of Class A common stock issuable
upon exercise of the warrants, to cause such registration statement to become effective and to maintain a current prospectus relating
to those shares of Class A common stock until the warrants expire or are redeemed, as specified in the warrant agreement. If a registration
statement covering the shares of Class A common stock issuable upon exercise of the warrants is not effective by the 60th business day
after the closing of our initial business combination or within a specified period following 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
provided by Section 3(a)(9) of the Securities Act; provided that such exemption is available. If that exemption, or another exemption,
is not available, holders will not be able to exercise their warrants on a cashless basis. Once the warrants become exercisable, we may
call the warrants for redemption:

 

●
in whole and not in part;

 

    	 

     

    

 

●
at a price of $0.01 per warrant;

 

●
upon not less than 30 days’ prior written notice of redemption given after the warrants become exercisable (the “30-day redemption
period”) to each warrant holder; and

 

●
if, and only if, the reported last sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits,
stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period commencing once
the warrants become exercisable and ending three business days before we send the notice of redemption to the warrant holders.

 

If
and when the warrants become redeemable by us, we may not exercise our redemption right if the issuance of shares of common stock upon
exercise of the warrants is not exempt from registration or qualification under applicable state blue sky laws or we are unable to effect
such registration or qualification. We will use our best efforts to register or qualify such shares of common stock under the blue-sky
laws of the state of residence in those states in which the warrants were offered by us in the IPO. 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 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 stock splits, stock dividends, reorganizations, recapitalizations
and the like) as well as the $11.50 warrant exercise price after the redemption notice is issued.

 

If
we call the warrants for redemption as described above, our management will have the option to require any holder that wishes to exercise
its warrant to do so on a “cashless basis.” In determining whether to require all holders to exercise their warrants on a
“cashless basis,” our management will consider, among other factors, our cash position, the number of warrants that are outstanding
and the dilutive effect on our stockholders of issuing the maximum number of shares of Class A common stock issuable upon the exercise
of our warrants. If our management takes advantage of this option, all holders of warrants would pay the exercise price by surrendering
their warrants for that number of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number
of shares of Class A common stock 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” for this purpose shall mean the average reported last sale price of the Class A common stock for the
10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.
If our management takes advantage of this option, the notice of redemption will contain the information necessary to calculate the number
of shares of Class A common stock to be received upon exercise of the warrants, including the “fair market value” in such
case. Requiring a cashless exercise in this manner will reduce the number of shares to be issued and thereby lessen the dilutive effect
of a warrant redemption. We believe this feature is an attractive option to us if we do not need the cash from the exercise of the warrants
after our initial business combination. If we call our warrants for redemption and our management does not take advantage of this option,
our sponsor and its permitted transferees would still be entitled to exercise their placement warrants for cash or on a cashless basis
using the same formula described above that other warrant holders would have been required to use had all warrant holders been required
to exercise their warrants on a cashless basis, as described in more detail below.

 

A
holder of a warrant may notify us in writing in the event it elects to be subject to a requirement that such holder will not have the
right to exercise such warrant, to the extent that after giving effect to such exercise, such person (together with such person’s
affiliates), to the warrant agent’s actual knowledge, would beneficially own in excess of 4.9% or 9.8% (or such other amount as
a holder may specify) of the shares of Class A common stock outstanding immediately after giving effect to such exercise.

 

    	 

     

    

 

If
the number of 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 whole warrant will be increased in proportion
to such increase in the outstanding shares of Class A common stock. A rights offering to holders of Class A common stock entitling holders
to purchase shares of Class A common stock at a price less than the fair market value will be deemed a stock dividend of a number of
shares of Class A common stock equal to the product of (i) 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 Class
A common stock) and (ii) one (1) minus the quotient of (x) the price per share of Class A common stock paid in such rights offering divided
by (y) the fair market value. For these purposes (i) if the rights offering is for securities convertible into or exercisable for 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 (ii) fair market value means the volume weighted
average price of Class A common stock as reported during the ten (10) 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.

 

In
addition, if we, at any time while the warrants are outstanding and unexpired, pay a dividend or make a distribution in cash, securities
or other assets to the holders of Class A common stock on account of such shares of Class A common stock (or other shares of our capital
stock into which the warrants are convertible), other than (a) as described above, (b) certain ordinary cash dividends, (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 third amended and restated
certificate of incorporation (i) to modify the substance or timing of our obligation to allow redemption in connection with our initial
business combination or certain amendments to our charter prior thereto or to redeem 100% of our Class A common stock if we do not complete
our initial business combination within 12 months from the closing of the IPO (or up to 18 months from the closing of the IPO
at the election of the Company in two separate three month extensions subject to satisfaction of certain conditions, including the
deposit of up to $1,000,000, or $1,150,000 if the underwriters’ over-allotment option is exercised in full ($0.10 per unit in either
case) for each three month extension, into the trust account, or as extended by the Company’s stockholders in accordance with our
third amended and restated certificate of incorporation), or (ii) 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 share of Class
A common stock in respect of such event.

 

If
the number of outstanding shares of our 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 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
case of any reclassification or reorganization of the 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 consolidation or merger in which we are the continuing corporation and that does not result in
any reclassification or reorganization of our 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 of stock or other securities or property
(including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any
such sale or transfer, that the holder of the warrants would have received if such holder had exercised their warrants immediately prior
to such event.

 

    	 

     

    

 

However,
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 thirty days following public disclosure of such transaction, the warrant exercise price
will be reduced as specified in the warrant agreement based on the Black-Scholes value (as defined in the warrant agreement) of the warrant.
The purpose of such exercise price reduction is to provide additional value to holders of the warrants when an extraordinary transaction
occurs during the exercise period of the warrants pursuant to which the holders of the warrants otherwise do not receive the full potential
value of the warrants in order to determine and realize the option value component of the warrant. This formula is to compensate the
warrant holder for the loss of the option value portion of the warrant due to the requirement that the warrant holder exercise the warrant
within 30 days of the event. The Black-Scholes model is an accepted pricing model for estimating fair market value where no quoted market
price for an instrument is available.

 

The
warrants will be issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant
agent, and us. You should review a copy of the warrant agreement for a complete description of the terms and conditions applicable to
the warrants. 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 mistake, including to conform the provisions of the warrant agreement to the description of the terms of
the warrants and the warrant agreement, or defective provision, but requires the approval by the holders of at least a majority of the
then outstanding public warrants to make any change that adversely affects the interests of the registered holders of public warrants.

 

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 a Newly Issued 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), (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 consummation of our initial business
combination (net of redemptions), and (z) the Market Value is below $9.20 per share, then the exercise price of the warrants will be
adjusted (to the nearest cent) to be equal to 115% of the greater of the Market Value and the Newly Issued Price, and the $18.00 per
share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the greater of the Market
Value and the Newly Issued Price.

 

The
warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant
agent, with the exercise form on the reverse side of the warrant certificate completed and executed as indicated, accompanied by full
payment of the exercise price (or on a cashless basis, if applicable), by certified or official bank check payable to us, for the number
of warrants being exercised. The warrant holders do not have the rights or privileges of holders of Class A 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 (1) vote for each share held of record on all matters to be
voted on by stockholders.

 

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, we will, upon exercise, round down to the nearest whole number of shares of Class A common stock to
be issued to the warrant holder.

 

We
have agreed that the validity, interpretation, and performance of this Agreement and of the warrants shall be governed in all respects
by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the
substantive laws of another jurisdiction and any action, proceeding or claim against us arising out of or relating in any way to this
warrant shall be enforced in the courts of the State of New York or the United States District Court for the Southern District of New
York, as the exclusive forum for any such action, proceeding or claim. We waive any objection to such exclusive jurisdiction and that
such courts represent an inconvenient forum. Notwithstanding the foregoing, the provisions of this paragraph will not apply to suits
brought to enforce any liability or duty created by the Securities and Exchange Act of 1934, as amended, or any other claim for which
the federal district courts of the United States are the sole and exclusive forum. Unless we consent in writing to the selection of an
alternative forum, the U.S. federal district courts shall be the exclusive forum for the resolution of any complaint asserting a cause
of action arising under the Securities Act of 1933, as amended, against us or any director, officer, other employee or any agent. Any
person or entity purchasing or otherwise acquiring any interest in any of our securities shall be deemed to have notice of and consented
to these forum provisions.

 

    	 

     

    

 

Placement
Warrants

 

Except
as described below, the placement warrants have terms and provisions that are identical to those of the warrants being sold as part of
the units in the IPO, including as to exercise price, exercisability and exercise period. The placement warrants (including the
Class A common stock issuable upon exercise of the placement warrants) will not be transferable, assignable or salable until 30 days
after the completion of our initial business combination except, among other limited exceptions, to our officers and directors and other
persons or entities affiliated with our sponsor). The placement warrants will also be exercisable on a cashless basis and will not be
redeemable by us so long as they are held by our sponsor or its permitted transferees. Our sponsor or its permitted transferees have
the option to exercise the placement warrants on a cashless basis. If the placement warrants are held by holders other than the sponsor
or its permitted transferees, the placement warrants will be redeemable by us and exercisable by the holders on the same basis as the
warrants included in the units being sold in the IPO. 

 

If
holders of the placement warrants elect to exercise them on a cashless basis, they would pay the exercise price by surrendering their
warrants for that number of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number of
shares of Class A common stock 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” for this purpose shall
mean the average reported last sale price of the Class A common stock for the 10 trading days ending on the third trading day prior to
the date on which the notice of warrant exercise is sent to the warrant agent. The reason that we have agreed that these warrants will
be exercisable on a cashless basis so long as they are held by the sponsor or its permitted transferees is because it is not known at
this time whether they will be affiliated with us following an initial business combination. If they remain affiliated with us, their
ability to sell our securities in the open market will be significantly limited. We expect to have policies in place that prohibit insiders
from selling our securities except during specific periods of time. Even during such periods of time when insiders will be permitted
to sell our securities, an insider cannot trade in our securities if he or she is in possession of material non-public information. Accordingly,
unlike public stockholders who typically could sell the shares of Class A common stock issuable upon exercise of the warrants freely
in the open market, the insiders could be significantly restricted from doing so. As a result, we believe that allowing the holders to
exercise such warrants on a cashless basis is appropriate. In addition, holders of our placement warrants are entitled to certain registration
rights.

 

In
order to finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor
or certain of our officers and directors may, but are not obligated to, loan us funds as may be required. Up to $1,500,000 of such loans
may be convertible into units, at a price of $10.00 per unit at the option of the lender, upon consummation of our initial business combination.
The units would be identical to the placement units. However, as the units would not be issued until consummation of our initial business
combination, any warrants underlying such units would not be able to be voted on an amendment to the warrant agreement in connection
with such business combination. Our sponsor has agreed not to transfer, assign or sell any of the placement warrants (including the Class
A common stock issuable upon exercise of any of these warrants) until the date that is 30 days after the date we complete our initial
business combination, except, among other limited exceptions, to our officers and directors and other persons or entities affiliated
with our sponsor.

 

Accounting
Treatment

 

Due
to certain provisions expected to be contained in our warrant agreement, both the public warrants and the placement warrants are expected
to be treated as a derivative liability, and, as such, we will be required to record the fair value of each warrant as a liability in
accordance with the guidance contained in ASC 815-40. As a result, each quarter, we will be required to determine the fair value of each
warrant and record the change on the value of the warrants from the prior quarter as a gain or a loss on our income statement, which
will change the value of the liability for the warrants on our balance sheet.

 

    	 

     

    

 

Dividends

 

We
have not paid any cash dividends on our common stock 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 conditions subsequent to completion of a business combination. The payment of any cash dividends subsequent to
a business combination will be within the discretion of our board of directors at such time. If we increase or decrease the size of the
offering we may effect a stock dividend or a share contribution back to capital or other appropriate mechanism, as applicable, with respect
to our Class B common stock immediately prior to the consummation of the offering in such amount as to maintain the ownership of our
initial stockholders at 20.0% of the issued and outstanding shares of our common stock (excluding the placement units and the underlying
securities and assuming they do not purchase any units in the IPO) upon the consummation of the IPO. Further, if we incur
any indebtedness, our ability to declare dividends may be limited by restrictive covenants we may agree to in connection therewith.

 

Our
Transfer Agent

 

The
transfer agent for our common stock is Continental Stock Transfer & Trust Company. We have agreed to indemnify Continental Stock
Transfer & Trust Company in its role as transfer agent, its agents and each of its stockholders, directors, officers and employees
against all claims and losses that may arise out of acts performed or omitted for its activities in that capacity, except for any claims
and losses due to any gross negligence or intentional misconduct of the indemnified person or entity.

 

Our
Third Amended and Restated Certificate of Incorporation

 

Our
third amended and restated certificate of incorporation will contain provisions designed to provide certain requirements and restrictions
relating to the IPO that will apply to us until the completion of our initial business combination. These provisions cannot be
amended without the approval of the holders of 65% of our common stock. Our initial stockholders and their permitted transferees, if
any, who will collectively beneficially own 15% of our outstanding shares of common stock immediately following the completion of the
IPO (excluding any placement units and assuming our initial stockholders do not purchase any public shares in the IPO), will
participate in any vote to amend our third amended and restated certificate of incorporation and will have the discretion to vote in
any manner they choose. Specifically, our third amended and restated certificate of incorporation will provide, among other things, that:

 

●
If we have not completed an initial business combination within the period to consummate the initial business combination, we will (i)
cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible but no more than ten business days
thereafter, 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 earned on the funds held in the trust account and not previously released to us to pay our taxes, if any
(less up to $70,000 of interest to pay taxes and if needed dissolution expenses), divided by the number of the then outstanding public
shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive
further liquidation distributions, if any); and (iii) 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 or in connection with our initial business combination, we may not issue additional securities that would entitle the holders
thereof to (i) receive funds from the trust account or (ii) vote on our initial business combination or on any other proposal presented
to stockholders prior to or in connection with the completion of an initial business combination;

 

●
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 executive officers, we are not prohibited from doing so, and in the event we enter into such a transaction, we, or a committee
of independent directors, will obtain an opinion from either an independent investment banking firm that is a member of FINRA or an independent
accounting firm that our initial business combination is fair to our company from a financial point of view;

 

    	 

     

    

 

●
Furthermore, in the event that we seek such a business combination, we expect that the independent members of our board of directors
would be involved in the process for considering, and approving the transaction;

 

If
a stockholder vote on our initial business combination is not required by applicable law or stock exchange rule 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;

 

●
In accordance with Nasdaq rules, our initial business combination must occur with one or more target businesses that together have an
aggregate fair market value of at least 80% of the assets held in the trust account (excluding the amount of deferred underwriting discounts
held in trust and taxes payable on the income earned on the trust account) at the time of the agreement to enter into the initial business
combination.

 

●
If our stockholders approve an amendment to our third amended and restated certificate of incorporation that would affect 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 an initial business combination within the period to consummate the initial business combination, or with respect
to any other provisions 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 Class A 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 earned on the funds held in the trust
account and not previously released to us to pay our taxes, if any (less up to $70,000 of interest to pay taxes and if needed, dissolution
expenses) divided by the number of the then outstanding public shares, subject to the limitations described herein; and

 

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

 

In
addition, our third 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.

 

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

 

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

 

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

 

●
an affiliate of an interested stockholder; or

 

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

 

A
“business combination” includes a merger or sale of more than 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 initial 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
third amended and restated certificate of incorporation provides that our board of directors will be classified into three classes of
directors. As a result, in most circumstances, a person can gain control of our board of directors only by successfully engaging in a
proxy contest at two or more annual meetings.

 

Our
authorized but unissued common stock and preferred stock will be 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.

 

Exclusive
forum for certain lawsuits

 

Our
third amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that derivative actions brought
in our name, actions against our directors, officers, other employees or stockholders for breach of fiduciary duty and certain other
actions may be brought only in the Court of Chancery in the State of Delaware and, if brought outside of Delaware, the stockholder bringing
the suit will be deemed to have consented to service of process on such stockholder’s counsel except any action (A) as to which
the Court of Chancery in the State of Delaware 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. Any person or entity purchasing or otherwise acquiring
any interest in shares of our capital stock shall be deemed to have notice of and consented to the forum provisions in our third amended
and restated certificate of incorporation. This choice of forum provision may limit or make more costly a stockholder’s ability
to bring a claim in a judicial forum that it finds favourable for disputes with us or any of our directors, officers, other employees
or stockholders, which may discourage lawsuits with respect to such claims. Alternatively, if a court were to find the choice of forum
provision contained in our third amended and restated certificate of incorporation to be inapplicable or unenforceable in an action,
we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, operating
results and financial condition.

 

Our
third amended and restated certificate of incorporation provides that the exclusive forum provision will be applicable to the fullest
extent permitted by applicable law, subject to certain exceptions. 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. As a result,
the exclusive forum provision will not apply to suits brought to enforce any duty or liability created by the Exchange Act or any other
claim for which the federal courts have exclusive jurisdiction. In addition, our third 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 of 1933, as amended, or the rules and regulations promulgated thereunder. We note, however,
that there is uncertainty as to whether a court would enforce this provision and that investors cannot waive compliance with the federal
securities laws and the rules and regulations thereunder. Section 22 of the Securities Act creates concurrent jurisdiction for state
and federal courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations
thereunder.

 

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.

 

    	 

     

    

 

Advance
notice requirements for stockholder proposals and director nominations

 

Our
bylaws provide that stockholders seeking to bring business before our annual meeting of stockholders, or to nominate candidates for election
as directors at our annual meeting of stockholders, must provide timely notice of their intent in writing. To be timely, a stockholder’s
notice will need to be received by the company secretary at our principal executive offices not later than the close of business on the
90th day nor earlier than the opening of business on the 120th day prior to the anniversary 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 also specify certain requirements as to the form and content of a stockholders’
meeting. These provisions may preclude our stockholders from bringing matters before our annual meeting of stockholders or from making
nominations for directors at our annual meeting of stockholders.

 

Action
by written consent

 

Subsequent
to the consummation of the offering, any action required or permitted to be taken by our common stockholders must be effected by a duly
called annual or special meetings of such stockholders and may not be effected by written consent of the stockholders other than with
respect to our founder shares.

 

Classified
board of directors

 

Our
board of directors is divided into three classes, Class I, Class II and Class III, with members of each class serving staggered three-year
terms. Our third amended and restated certificate of incorporation provides that the authorized number of directors may be changed only
by resolution of the board of directors. Subject to the terms of any preferred stock, any or all of the directors may be removed from
office at any time, but only for cause and only by the affirmative vote of holders of a majority of the voting power of all then outstanding
shares of our capital stock entitled to vote generally in the election of directors, voting together as a single class. Any vacancy on
our board of directors, including a vacancy resulting from an enlargement of our board of directors, may be filled only by vote of a
majority of our directors then in office.

 

Class
B Common Stock Consent Right

 

For
so long as any shares of our founder shares remain outstanding, we may not, without the prior vote or voting separately as a single class,
amend, alter or repeal any provision of our third amended and restated certificate of incorporation, whether by merger, consolidation
or otherwise, if such amendment, alteration or repeal would alter or change the powers, preferences or relative, participating, optional
or other or special rights of the founder shares. Any action required or permitted to be taken at any meeting of the holders of our founder
shares may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the
action so taken, shall be signed by the holders of the outstanding founder shares having not less than the minimum number of votes that
would be necessary to authorize or take such action at a meeting at which all shares of our founder shares were present and voted.

 

Securities
Eligible for Future Sale

 

Immediately after the consummation
of the IPO we will have 14,896,675 shares of common stock issued and outstanding. Of these shares, the shares of our Class A common
stock sold in the IPO (115,000,000 shares of our Class A common stock) will be freely tradable without restriction or further
registration under the Securities Act, except for any Class A common stock purchased by one of our affiliates within the meaning of Rule
144 under the Securities Act. Immediately after the consummation of the IPO , there will be no shares of preferred stock issued
and outstanding. Shares of founder shares are convertible into shares of our Class A common stock initially at a one-for-one ratio but
subject to adjustment as set forth herein, including in certain circumstances in which we issue Class A common stock or equity-linked
securities related to our initial business combination. All of the outstanding founder shares (up to 2,875,000 founder shares) and all
of the outstanding placement shares (521,675 placement) and placement warrants (391,256) will be restricted securities under Rule 144,
in that they were issued in private transactions not involving a public offering. These restricted securities will be subject to registration
rights, as more fully described below under “— Registration Rights.”

 

    	 

     

    

 

Rule
144

 

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

 

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

 

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

 

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

 

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

 

Restrictions
on the Use of Rule 144 by Shell Companies or Former Shell Companies

 

Rule
144 is not available for the resale of securities initially issued by shell companies (other than business combination related shell
companies) or issuers that have been at any time previously a shell company. However, Rule 144 also includes an important exception to
this prohibition if the following conditions are met:

 

●
the issuer of the securities that was formerly a shell company has ceased to be a shell company;

 

●
the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act; and

 

●
the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding
12 months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and
at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status
as an entity that is not a shell company.

 

As
a result, our initial stockholders will be able to sell their founder shares and placement units (including component securities contained
therein), as applicable, pursuant to Rule 144 without registration one year after we have completed our initial business combination.

 

    	 

     

    

 

Registration
Rights

 

The
holders of the founder shares and placement units (including securities contained therein) and units (including securities contained
therein) that may be issued upon conversion of working capital loans, and any shares of Class A common stock issuable upon the exercise
of the placement warrants and any shares of Class A common stock and warrants (and underlying Class A common stock) that may be issued
upon conversion of the units issued as part of the working capital loans and Class A common stock issuable upon conversion of the founder
shares, will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective
date of the IPO, requiring us to register such securities for resale (in the case of the founder shares, only after conversion
to our Class A common stock). The holders of these securities are entitled to make up to two demands, excluding short form demands, that
we register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration
statements filed subsequent to our completion of our initial business combination and rights to require us to register for resale such
securities pursuant to Rule 415 under the Securities Act.

 

However,
the registration rights agreement provides that we will not permit any registration statement filed under the Securities Act to become
effective until termination of the applicable lockup period, which occurs (i) in the case of the founder shares, as described in the
following paragraph, and (ii) in the case of the placement warrants, on the later of 6 months from the closing of the IPO and
30 days after the completion of our initial business combination. The registration rights agreement does not contain liquidated damages
or other cash settlement provisions resulting from delays in registering our securities. We will bear the expenses incurred in connection
with the filing of any such registration statements.

 

Except
as described herein, our sponsor, officers and directors have agreed not to transfer, assign or sell any of their founder shares and
placement units until the earlier to occur of: (A) six months after the completion of our initial business combination or (B) subsequent
to our initial business combination, (x) if the last sale price of our Class A common stock equals or exceeds $12.00 per unit (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,
capital stock exchange, reorganization or other similar transaction that results in all of our stockholders having the right to exchange
their shares of common stock for cash, securities or other property.

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