Document:

Exhibit 10.1

 

October 28,
2021

Arbor Rapha Capital Bioholdings Corp. I

333 Earle Ovington Blvd, Suite 900

Uniondale, New York 11553

 

Cantor Fitzgerald & Co.

110 East Fifty Ninth Street

New York, NY, 10022

 

Re: Initial Public Offering

 

Ladies and Gentlemen:

 

This letter (this “Letter Agreement”) is being delivered
to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”) entered into or proposed to be
entered into by and between Arbor Rapha Capital Bioholdings Corp. I, a Delaware corporation (the “Company”), and Cantor
Fitzgerald & Co., as the sole underwriter (the “Underwriter”), relating to an underwritten initial public offering
(the “Public Offering”), of up to 17,250,000 of the Company’s units (including up to 2,250,000 units that may
be purchased to cover over-allotments, if any) (the “Units”), each comprised of one share of the Company’s Class
A common stock, par value $0.0001 per share (the “Common Stock”), and one-third of one redeemable warrant. Each
whole warrant (each, a “Warrant”) entitles the holder thereof to purchase one share of Common Stock at a price of $11.50
per share, subject to adjustment. The Units shall be sold in the Public Offering pursuant to a registration statement on Form S-1 and
a prospectus (the “Prospectus”), filed by the Company with the U.S. Securities and Exchange Commission (the “Commission”)
and the Company has applied to have the Units listed on the Nasdaq Global Market. Certain capitalized terms used herein are defined in
paragraph 12 hereof.

 

In order to induce the Company and the Underwriter to enter into the
Underwriting Agreement and to proceed with the Public Offering and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, each of Arbor Rapha Capital LLC, a Delaware limited liability company (the “Sponsor”)
and the undersigned individuals, each of whom is a member of the Company’s board of directors, a nominee for membership on the board
of directors and/or a member of the Company’s management team (each, an “Insider” and collectively, the “Insiders”),
hereby agrees, severally but not jointly, with the Company as follows:

 

1.             It is acknowledged and agreed that the Company shall not enter into a definitive agreement regarding a proposed Business Combination
without the prior consent of the Sponsor. The Sponsor and each Insider agrees that if the Company seeks stockholder approval of a proposed
Business Combination, then in connection with such proposed Business Combination, it, he or she shall (i) vote any shares of Capital Stock
owned by it, him or her in favor of any proposed Business Combination (including any proposals recommended by the Company’s board
of directors in connection with such Business Combination) and (ii) not redeem any shares of Capital Stock owned by it, him or her in
connection with such stockholder approval. If the Company engages in a tender offer in connection with any proposed Business Combination,
the Sponsor and each Insider agrees that it, he or she shall not seek to sell or tender its, his or her shares of Capital Stock to the
Company in connection with such tender offer.

 

     

     

    

 

2.             The Sponsor and each Insider hereby agrees that in the event that the Company fails to consummate a Business Combination within
15 months from the closing of the Public Offering, or such later period approved by the Company’s stockholders in accordance with
the Company’s amended and restated certificate of incorporation (the “Charter”), the Sponsor and each Insider
shall take all reasonable steps to cause the Company to (i) cease all operations except for the purpose of winding up, (ii) as promptly
as reasonably possible but not more than ten (10) business days thereafter, subject to lawfully available funds therefor, redeem 100%
of the Common Stock sold as part of the Units in the Public Offering (the “Offering Shares”), at a per share price,
payable in cash, equal to the aggregate amount then on deposit in the Trust Account (as defined below), including interest earned on
the funds held in the Trust Account and not previously released to the Company to pay its franchise and income taxes (less up to $100,000
of interest to pay dissolution expenses), divided by the number of then outstanding Offering Shares, which redemption will completely
extinguish all 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 the
Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the
Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. The Sponsor
and each Insider agrees not to propose any amendment to the Charter (i) to modify the substance or timing of the Company's obligation
to allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of the Offering Shares if the
Company does not complete a Business Combination within 15 months from the closing of the Public Offering or (ii) with respect to any
other provision relating to stockholders’ rights or pre-initial Business Combination activity, unless, in each case, the Company
provides the Public Stockholders with the opportunity to redeem their Offering Shares upon approval of any such amendment 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 the Company to pay its franchise and income taxes, divided by the number of then
outstanding Offering Shares.

 

3.             The Sponsor and each Insider acknowledges that, with respect to the shares of Capital Stock held by it, him or her, it, he or she
has no right, title, interest or claim of any kind in or to any monies held in the Trust Account or any other asset of the Company as
a result of any liquidation of the Company. The Sponsor and each Insider hereby further waives, with respect to any shares of Capital
Stock held by it, him or her, if any, any redemption rights it, he or she may have in connection with the consummation of a Business Combination,
including, without limitation, any such rights available in the context of a stockholder vote to approve such Business Combination or
a stockholder vote to approve an amendment to the Charter to modify the substance or timing of the Company’s obligation to allow
redemption in connection with the Company’s initial Business Combination or to redeem 100% of the Offering Shares if the Company
has not consummated a Business Combination within 15 months from the closing of the Public Offering or in the context of a tender offer
made by the Company to purchase shares of Common Stock (although the Sponsor, the Insiders and their respective affiliates shall be entitled
to redemption and liquidation rights with respect to any Offering Shares it or they hold if the Company fails to consummate a Business
Combination within 15 months from the date of the closing of the Public Offering).

 

4.             Each of the undersigned acknowledges and agrees that prior to the Company entering into a definitive agreement for a Business Combination
with a target business that is affiliated with the undersigned or any other Insiders of the Company or their affiliates, such transaction
must be approved by a majority of the Company’s disinterested independent directors and the Company must obtain an opinion from
an independent investment banking firm or another independent entity that commonly renders valuation opinions which states that such Business
Combination is fair to the Company’s unaffiliated stockholders from a financial point of view.

 

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5.              Notwithstanding the provisions set forth in paragraphs 9(a) and (b) below, during the period commencing on the effective date
of the Underwriting Agreement and ending 180 days after such date, the Sponsor and each Insider shall not, without the prior written consent
of the Underwriter, (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise
dispose of or agree to dispose of, directly or indirectly, any Units, shares of Capital Stock, Warrants or any securities convertible
into, or exercisable or exchangeable for, shares of Capital Stock owned by it, him or her, (ii) establish or increase a put equivalent
position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), and the rules and regulations of the Commission promulgated thereunder, with respect
to any Units, shares of Capital Stock, Warrants or any other securities convertible into, or exercisable, or exchangeable for, shares
of Capital Stock owned by it, him or her, (iii) enter into any swap or other arrangement that transfers to another, in whole or in part,
any of the economic consequences of ownership of any Units, shares of Capital Stock, Warrants or any securities convertible into, or exercisable,
or exchangeable for, shares of Capital Stock owned by it, him or her, whether any such transaction is to be settled by delivery of such
securities, in cash or otherwise, or (iv) publicly announce any intention to effect any transaction specified in clause (i), (ii) or (iii);
provided, however, that the foregoing does not apply to the forfeiture of any Founder Shares pursuant to their terms or
any Transfer of Founder Shares to any current or future independent director of the Company (as long as such current or future independent
director transferee is subject to this Letter Agreement or executes an agreement substantially identical to the terms of this Letter Agreement,
as applicable to directors and officers at the time of such Transfer, and as long as, to the extent any reporting obligation under Section
16 of the Exchange Act is triggered as a result of such Transfer, any related filing under Section 16 of the Exchange Act includes a practical
explanation as to the nature of the Transfer). Each of the Insiders and the Sponsor acknowledges and agrees that, prior to the effective
date of any release or waiver, of the restrictions set forth in this paragraph 5 or paragraph 9 below, the Company may announce the impending
release or waiver by press release through a major news service at least two business days before the effective date of the release or
waiver. The provisions of this paragraph will not apply if the release or waiver is effected solely to permit a transfer not for consideration
and the transferee has agreed in writing to be bound by the same terms described in this Letter Agreement to the extent and for the duration
that such terms remain in effect at the time of the transfer.

 

6.             In
the event of the liquidation of the Trust Account, the Sponsor, which for purposes of clarification shall not extend to any shareholders,
members or managers of the Sponsor, or any of the other undersigned, agrees to indemnify and hold harmless the Company against any and
all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all legal or other expenses reasonably
incurred in investigating, preparing or defending against any litigation, whether pending or threatened, or any claim whatsoever) to
which the Company may become subject as a result of any claim by (i) any third party (other than the Company’s independent registered
public accounting firm) for services rendered or products sold to the Company or (ii) any prospective target business with which the
Company has entered into a written letter of intent, confidentiality or other similar agreement or Business Combination agreement (a
 “Target”); provided, however, that such indemnification of the Company by the Sponsor shall (x) apply
only to the extent necessary to ensure that such claims by a third party for services rendered (other than the Company’s independent
registered public accounting firm) or products sold to the Company or a Target do not reduce the amount of funds in the Trust Account
to below the lesser of (i) $10.00 per Offering Share and (ii) the actual amount per Offering Share held in the Trust Account as of the
date of the liquidation of the Trust Account, if less than $10.00 per Offering Share is then held in the Trust Account due to reductions
in the value of the trust assets, less interest earned on the funds in the Trust Account withdrawn (or which may be withdrawn) to pay
franchise and income taxes, (y) shall not apply to any claims by a third party or a Target which executed a waiver of any and all rights
to the monies held in the Trust Account (whether or not such waiver is enforceable) and (z) shall not apply to any claims under the Company’s
indemnity of the Underwriter against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the "Securities
Act"). In the event that any such executed waiver is deemed to be unenforceable against such third party, the Sponsor shall
not be responsible to the extent of any liability for such third-party claims. The Sponsor shall have the right to defend against any
such claim with counsel of its choice reasonably satisfactory to the Company if, within 15 days following written receipt of notice of
the claim to the Sponsor, the Sponsor notifies the Company in writing that it shall undertake such defense.

 

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7.             To the extent that the Underwriter does not exercise its over-allotment option to purchase up to an additional 2,250,000 Units
within 45 days from the date of the Prospectus (and as further described in the Prospectus), the Sponsor agrees to forfeit, at no cost,
a number of Founder Shares in the aggregate equal to 562,500 multiplied by a fraction, (i) the numerator of which is 2,250,000 minus the
number of Units purchased by the Underwriter upon the exercise of its over-allotment option, and (ii) the denominator of which is 2,250,000.
All references in this Letter Agreement to Founder Shares of the Company being forfeited shall take effect as a contribution of such Founder
Shares to the Company’s capital as a matter of Delaware law. The forfeiture will be adjusted to the extent that the option to purchase
additional Units is not exercised in full by the Underwriter so that the number of Founder Shares will equal an aggregate of 20.0% of
the Company’s issued and outstanding Shares after the Public Offering. The Initial Stockholders further agree that to the extent
that the size of the Public Offering is increased or decreased, the Company will effect a stock dividend or stock repurchase or redemption,
as applicable, immediately prior to the consummation of the Public Offering in such amount as to maintain the number of Founder Shares
at 20.0% of the Company’s issued and outstanding shares of Capital Stock immediately following the consummation of the Public Offering.
In connection with such increase or decrease in the size of the Public Offering, then (A) the references to 2,250,000 in the numerator
and denominator of the formula in the first sentence of this paragraph shall be changed to a number equal to 15.0% of the number of shares
of Common Stock included in the Units issued in the Public Offering, (B) the reference to 562,500 in the formula set forth in the first
sentence of this paragraph shall be adjusted to, respectively, the total number of Founder Shares that the Sponsor would have to return
to the Company in order for the number of Founder Shares that the Sponsor owns (together with the Insiders) to equal an aggregate of 20.0%
of the Company’s issued and outstanding Shares immediately following the Public Offering.

 

8.             The Sponsor and each Insider hereby agrees and acknowledges that: (i) the Underwriter and the Company would be irreparably injured
in the event of a breach by such Sponsor or an Insider of its, his or her obligations under paragraphs 1, 2, 3, 4, 5, 6, 9(a), 9(b), 10
and 11, as applicable, of this Letter Agreement, (ii) monetary damages may not be an adequate remedy for such breach and (iii) the non-breaching
party shall be entitled to injunctive relief, in addition to any other remedy that such party may have in law or in equity, in the event
of such breach.

 

9.             (a)        The Sponsor and each Insider agrees that it, he or she shall not Transfer, assign or sell any of their Founder Shares (or
shares of Common Stock issuable upon conversion thereof) until the earlier to occur of (A) one year after the completion of the Company’s
initial Business Combination and (B) subsequent to Company’s initial Business Combination, (x) if the last sale price of the 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 the Company’s initial Business Combination,
or (y) the date on which the Company completes a liquidation, merger, capital stock exchange, reorganization or other similar transaction
that results in all of the Company’s stockholders having the right to exchange their shares of Common Stock for cash, securities
or other property (the “Founder Shares Lock-up Period”).

 

(b)        The
Sponsor and each Insider agrees that it, he or she shall not Transfer, assign or sell any Private Placement Warrants (or shares of Common
Stock issuable upon the exercise of the Private Placement Warrants), until 30 days after the completion of the Company's initial Business
Combination (the “Private Placement Warrants Lock-up Period” and, together with the
Founder Shares Lock-up Period, the “Lock-up Periods”).

 

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(c)               
Notwithstanding the provisions set forth in paragraphs 9(a) and (b), Transfers of the Founder Shares, Private Placement Warrants
and shares of Common Stock issued upon the exercise or conversion of the Private Placement Warrants or the Founder Shares and that are
held by the Sponsor, any Insider or any of their permitted transferees (that have complied with this paragraph 9(c)), are permitted (a)
to the Company's employees, officers or directors, any affiliates or family members of any of the Company's officers or directors, any
employees, officers, directors or members of the Sponsor (or former Sponsor if such transfer occurs after the dissolution of the Sponsor)
or any affiliates of such members and funds and accounts advised by such members, or any affiliates of our Sponsor (or former Sponsor
if such transfer occurs after the dissolution of our Sponsor); (b) in the case of an individual, by gift to a member of one of the members
of the individual’s immediate family, to an estate planning vehicle or to a trust, the beneficiary of which is a member of one of
the individual’s immediate family, an affiliate of such person or to a charitable organization; (c) in the case of an individual,
by virtue of laws of descent and distribution upon death of the individual; (d) in the case of an individual, pursuant to a qualified
domestic relations order; (e) by pro rata distributions from the Sponsor to its members, partners, or shareholders pursuant to the Sponsor’s
organizational documents; (f) by virtue of the laws of the State of Delaware or the Sponsor's organizational documents upon liquidation
or dissolution of the Sponsor; (g) by private sales or transfers made in connection with the consummation of the Company’s initial
Business Combination at prices no greater than the price at which the Founder Shares, Private Placement Warrants or the shares of Common
Stock, as the case may be, were originally purchased; (h) to the Company for no value for cancellation in connection with the consummation
of the Company's initial Business Combination; (i) in the event of the Company’s liquidation prior to the completion of its initial
Business Combination; or (j) in the event of the Company’s completion of a liquidation, merger, capital stock exchange, reorganization
or other similar transaction which results in all of the Company’s stockholders having the right to exchange their shares of Common
Stock for cash, securities or other property subsequent to the Company’s completion of an initial Business Combination; provided,
however, that, in the case of clauses (a) through (g), these permitted transferees must enter into a written agreement with the
Company agreeing to be bound by the transfer restrictions and the other restrictions herein.

 

10.           Each
of the Insiders agrees to be a director or officer of the Company, as applicable, until the earlier of the consummation by the Company
of an initial Business Combination, the liquidation of the Company, or his or her removal, death or incapacity. The Sponsor and each
Insider represents and warrants that it, he or she has never been suspended or expelled from membership in any securities or commodities
exchange or association or had a securities or commodities license or registration denied, suspended or revoked. Each Insider’s
biographical information furnished to the Company (including any such information included in the Prospectus) is true and accurate in
all material respects and does not omit any material information with respect to the Insider’s background and contains all of the
information required to be disclosed pursuant to Item 401 of Regulation S-K, promulgated under the Securities Act. The Sponsor and each
Insider’s questionnaire furnished to the Company and the Representative is true and accurate in all material respects. The Sponsor
and each Insider represents and warrants that: it, he or she is not subject to or a respondent in any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from any act or practice relating to the offering of securities in
any jurisdiction; it, he or she has never been convicted of, or pleaded guilty to, any crime (i) involving fraud, (ii) relating to any
financial transaction or handling of funds of another person, or (iii) pertaining to any dealings in any securities and it, he or she
is not currently a defendant in any such criminal proceeding.

 

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11.           Except
as disclosed in the Prospectus, neither the Sponsor nor any Insider, nor any affiliate of the Sponsor or any Insider, nor any
director or officer of the Company shall receive from the Company any finder’s fee, reimbursement, cash payment, consulting
fee, monies in respect of any repayment of a loan or other compensation prior to, or in connection with any services rendered in
order to effectuate, the consummation of the Company’s initial Business Combination (regardless of the type of transaction
that it is), other than the following, none of which will be made from the proceeds held in the Trust Account prior to the
completion of the initial Business Combination: repayment of up to an aggregate of $300,000 in loans made to the Company by the
Sponsor to cover offering related and organizational expenses; payment to the Sponsor of $10,000 per month for certain office space,
utilities and secretarial and administrative support as may be reasonably required by the Company; payment of customary fees for
financial advisory services; reimbursement for any reasonable out-of-pocket expenses related to identifying, investigating and
completing an initial Business Combination; repayment of loans, if any, and on such terms as to be determined by the Company from
time to time, made by the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers or directors to finance
transaction costs in connection with an intended initial Business Combination, provided that, if the Company does not consummate an
initial Business Combination, a portion of the working capital held outside the Trust Account may be used by the Company to repay
such loaned amounts so long as no proceeds from the Trust Account are used for such repayment; and repayment of the loan to be made
to the Sponsor in an amount up to $4,312,500 (the “Sponsor Loan”). Up to $1,500,000 of such loans (not including
the Sponsor Loan) may be convertible into warrants at a price of $1.50 per warrant at the option of the lender. Such warrants would
be identical to the Private Placement Warrants, including as to exercise price, exercisability and exercise period.

 

12.           The
Sponsor and each Insider has full right and power, without violating any agreement to which it is bound (including, without limitation,
any non-competition or non-solicitation agreement with any employer or former employer), to enter into this Letter Agreement and, as
applicable, to serve as an officer and/or director on the board of directors of the Company and hereby consents to being named in the
Prospectus as an officer and/or director of the Company.

 

13.           As used herein, (i) “Business Combination” shall mean a merger, capital stock exchange, asset acquisition, stock
purchase, reorganization or similar business combination, involving the Company and one or more businesses; (ii) “Capital Stock”
shall mean, collectively, the Common Stock and the Founder Shares; (iii) “Founder Shares” shall mean (a) the 4,312,500
shares of the Company’s Class B common stock, par value $0.0001 per share, initially issued to the Sponsor (up to 562,500 shares
of which are subject to complete or partial forfeiture by the Sponsor depending on the extent to which the over-allotment option is not
exercised by the Underwriters); (iv) “Initial Stockholders” shall mean the Sponsor and any Insider that holds Founder
Shares; (v) “Private Placement Warrants” shall mean the Warrants to purchase up to 3,833,333 shares of Common Stock
of the Company (or 4,133,333 shares of Common Stock if the over-allotment option is exercised in full) that the Sponsor has agreed to
purchase for an aggregate purchase price of $5,750,000 (or $6,200,000 if the over-allotment option is exercised in full), or $1.50 per
Warrant, in a private placement that shall occur simultaneously with the consummation of the Public Offering; (vi) “Public Stockholders”
shall mean the holders of the Offering Shares; (vii) “Trust Account” shall mean the trust account into which the net
proceeds of the Public Offering and certain proceeds from the sale of the Private Placement Warrants shall be deposited; and (viii) “Transfer”
shall mean the (a) sale of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to purchase or otherwise
dispose of or agreement to dispose of, directly or indirectly, or establishment or increase of a put equivalent position or liquidation
with respect to or decrease of a call equivalent position within the meaning of Section 16 of the Exchange Act, and the rules and regulations
of the Commission promulgated thereunder with respect to, any security, (b) entry into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of any security, whether any such transaction is to be settled
by delivery of such securities, in cash or otherwise, or (c) public announcement of any intention to effect any transaction specified
in clause (a) or (b).

 

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14.           Subject to the terms and conditions of this paragraph 14, if, in connection with or prior to the closing of the initial Business
Combination, the Company proposes to raise additional capital by issuing any equity securities, or securities convertible into, exchangeable
or exercisable for equity securities other than Excluded Securities (as defined below) (such securities, “New Equity Securities”),
the Company shall first make an offer of the New Equity Securities to the Sponsor in accordance with the following provisions of this
paragraph 14 (the “Right of First Offer”):

 

(a) Offer Notice.

 

(i) The Company shall give written notice
(the “Offering Notice”) to the Sponsor stating its bona fide intention to offer the New Equity Securities and specifying
the number of New Equity Securities and the material terms and conditions, including the price, pursuant to which the Company proposes
to offer the New Equity Securities.

 

(ii) The Offering Notice shall constitute
the Company’s offer to sell the New Equity Securities to the Sponsor, which offer shall be irrevocable for a period of three (3)
business days (the “ROFO Notice Period”).

 

(b) Exercise of Right of First Offer.

 

(i) Upon receipt of the Offering Notice,
the Sponsor shall have until the end of the ROFO Notice Period to offer to purchase any or all of the New Equity Securities by delivering
a written notice (a “ROFO Offer Notice”) to the Company stating that it offers to purchase such New Equity Securities
on the terms specified in the Offering Notice. Any ROFO Offer Notice so delivered shall be binding upon delivery and irrevocable by the
Sponsor.

 

(ii) If the Sponsor does not deliver
a ROFO Offer Notice during the ROFO Notice Period or indicates, in its ROFO Offer Notice its offer to purchase some but not all of the
New Equity Securities, the Sponsor shall be deemed to have waived all of the Sponsor’s rights to purchase such number of New Equity
Securities that it declined to purchase, and the Company shall thereafter be free to sell or enter into an agreement to sell such number
of New Equity Securities to any third party without any further obligation to the Sponsor pursuant to this paragraph 14 within the forty-five
(45) day period thereafter (and with respect to an agreement to sell, consummate such sale at any time thereafter) at a price not more
favorable to the third party than those set forth in the Offering Notice. If the Company does not sell or enter into an agreement to sell
such number of New Equity Securities within such period, the rights provided hereunder shall be deemed to be revived and such New Equity
Securities shall not be offered to any third party unless first re-offered to the Sponsor in accordance with this paragraph 14.

 

(c) Excluded Securities. For purposes
hereof, the term “Excluded Securities” means any warrants issued upon the conversion of working capital loans to the Company
to be made by the Sponsor or an affiliate thereof to finance transaction costs in connection with an intended initial Business Combination
(up to $1,500,000 of which may be convertible at the option of the lender into warrants of the post-Business Combination entity having
the same terms as the Private Placement Warrants at a price of $1.50 per warrant), and any securities issued by the Company as consideration
to any seller in the Business Combination or in satisfaction for any amounts owed by or claims against the Company.

 

(d) Assignment of Right of First Offer.
The Right of First Offer may be assigned in whole or in part by the Sponsor to any of its members without the prior consent of the Company.
Following any such assignment, the Company and any such assignee shall comply with the
provisions set forth in this paragraph 14 with respect to the Right of First Offer as if such assignee were a party hereto.

 

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15.           The
Company will maintain an insurance policy or policies providing directors’ and officers’ liability insurance, and each Director
shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for
any of the Company’s directors or officers.

 

16.           This
Letter Agreement constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and
supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they
relate in any way to the subject matter hereof or the transactions contemplated hereby. This Letter Agreement may not be changed, amended,
modified or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument executed
by all parties hereto.

 

17.           No party hereto may assign either this Letter Agreement or any of its rights, interests, or obligations hereunder without the prior
written consent of the other parties. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall
not operate to Transfer or assign any interest or title to the purported assignee. This Letter Agreement shall be binding on the Sponsor
and each Insider and their respective successors, heirs and assigns and permitted transferees.

 

18.           Nothing
in this Letter Agreement shall be construed to confer upon, or give to, any person or entity other than the parties hereto any right,
remedy or claim under or by reason of this Letter Agreement or of any covenant, condition, stipulation, promise or agreement hereof.
All covenants, conditions, stipulations, promises and agreements contained in this Letter Agreement shall be for the sole and exclusive
benefit of the parties hereto and their successors, heirs, personal representatives and assigns and permitted transferees.

 

19.           This
Letter Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. The words “executed,”
 “signed,” “signature,” and words of like import in this Letter Agreement or in any other certificate, agreement
or document related to this Letter Agreement shall include images of manually executed signatures transmitted by facsimile or other electronic
format (including, without limitation, “pdf,” “tif” or “jpg”) and other electronic signatures (including,
without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation,
any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal
effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent
permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic
Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic
Transactions Act or the Uniform Commercial Code.

 

20.           This
Letter Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the
validity or enforceability of this Letter Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Letter Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

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21.           This Letter Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York. The
parties hereto (i) all agree that any action, proceeding, claim or dispute arising out of, or relating in any way to, this Letter Agreement
shall be brought and enforced in the courts of New York City, in the State of New York, and irrevocably submit to such jurisdiction and
venue, which jurisdiction and venue shall be exclusive and (ii) waive any objection to such exclusive jurisdiction and venue or that such
courts represent an inconvenient forum.

 

22.           Any
notice, consent or request to be given in connection with any of the terms or provisions of this Letter Agreement shall be in writing
and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery
or facsimile or other electronic transmission.

 

23.           This
Letter Agreement shall terminate on the earlier of (i) the expiration of the Lock-up Periods or (ii) the liquidation of the Company;
provided that paragraph 6 of this Letter Agreement shall survive such liquidation.

 

[Signature Page Follows] 

 

    9

     

    

 

	 	Sincerely,
	 	 
	 	ARBOR RAPHA CAPITAL LLC
	 	By:	/s/ Ivan Kaufman
	 	Name:	Ivan Kaufman
	 	Title:	Authorized Signatory

 

[Signature Page to Letter
Agreement]

 

     

     

    

  

	 	By:	/s/ Ivan Kaufman
	 	Name:	Ivan Kaufman

 

[Signature Page to Letter
Agreement]

 

     

     

    

  

	 	By:	/s/ Kevin Slawin
	 	Name:	Kevin Slawin

 

[Signature Page to Letter
Agreement]

 

     

     

    

  

	 	By:	/s/ Paul Elenio
	 	Name:	Paul Elenio

 

[Signature Page to Letter
Agreement]

 

     

     

    

  

	 	By:	/s/ William Connolly
	 	Name:	William Connolly

 

[Signature Page to Letter
Agreement]

 

     

     

    

  

	 	By:	/s/ John Natalone
	 	Name:	John Natalone

 

[Signature Page to Letter
Agreement]

 

     

     

    

  

	 	By:	/s/ Cyrus D. Walker
	 	Name:	Cyrus D. Walker

 

[Signature Page to Letter
Agreement]

 

     

     

    

 

	 	By:	/s/ Ralph Mack
	 	Name:	Ralph Mack

 

[Signature Page to Letter
Agreement]

 

     

     

    

  

	 	By:	/s/ Avery Modlin
	 	Name:	Avery Modlin

 

[Signature Page to Letter
Agreement]

 

     

     

    

 

	Agreed and accepted by:	 
	 	 
	ARBOR RAPHA CAPITAL BIOHOLDINGS CORP. I	 
	By:	/s/ Ivan Kaufman	 
	Name:	Ivan Kaufman	 
	Title:	Chief Executive Officer	 

 

[Signature Page to Letter
Agreement]Exhibit 10.2

 

INVESTMENT MANAGEMENT TRUST AGREEMENT

 

This Investment Management
Trust Agreement (this “Agreement”) is made effective as of October 28, 2021, by and between Arbor Rapha Capital Bioholdings
Corp. I, a Delaware corporation (the “Company”), and Continental Stock Transfer & Trust Company, a New York corporation
(the “Trustee”).

 

WHEREAS, the Company’s
registration statement on Form S-1, File No. 333-259516 (the “Registration Statement”) and prospectus (the “Prospectus”)
for the initial public offering of the Company’s units (the “Units”), each of which consists of one share of
the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”), and one-third of one redeemable
warrant, each whole warrant entitling the holder thereof to purchase one share of Common Stock (such initial public offering hereinafter
referred to as the “Offering”), has been declared effective as of the date hereof by the U.S. Securities and Exchange
Commission;

 

WHEREAS, the Company has entered
into an Underwriting Agreement, dated as of the date hereof (the “Underwriting Agreement”) with Cantor Fitzgerald &
Co. as the sole underwriter (the “Underwriter”);

 

WHEREAS, as described in the
Prospectus, $153,750,000 of the proceeds of the Offering and sale of the Private Placement Warrants (as defined in the Underwriting Agreement)
and a loan from Arbor Rapha Capital LLC (the “Sponsor”) (or $176,812,500, if the Underwriter’s over-allotment
option is exercised in full) will be delivered to the Trustee to be deposited and held in a segregated trust account located at all times
in the United States (the “Trust Account”) for the benefit of the Company, the holders of the Common Stock included
in the Units issued in the Offering and the Underwriter as hereinafter provided (the amount to be delivered to the Trustee (and any interest
subsequently earned thereon) is referred to herein as the “Property,” the stockholders for whose benefit the Trustee
shall hold the Property will be referred to as the “Public Stockholders,” and the Public Stockholders, the Company
and the Underwriter will be referred to together as the “Beneficiaries”);

 

WHEREAS, pursuant to the Underwriting
Agreement, a portion of the Property equal to $5,250,000, or $6,037,500 if the Underwriter’s over-allotment option is exercised
in full, is attributable to deferred underwriting discounts and commissions that will be payable by the Company to the Underwriter 

upon
and concurrently with the consummation of the Business Combination (as defined below) (the “Deferred Discount”); and

 

WHEREAS, the Company and the
Trustee desire to enter into this Agreement to set forth the terms and conditions pursuant to which the 

Trustee shall hold the Property.

 

NOW THEREFORE, IT IS AGREED:

 

1.            
Agreements and Covenants of Trustee. The Trustee hereby agrees and covenants to:

 

(a)      
Hold the Property in trust for the Beneficiaries in accordance with the terms of this Agreement in the Trust Account, which 

Trust
Account shall be established by the Trustee in the United States at JPMorgan Chas Bank, N.A. (or at another financial institution with
consolidated assets in excess of $100 billion) and at a brokerage institution in the United States selected by the Trustee that is reasonably
satisfactory to the Company;

 

(b)      
 Manage, supervise and administer the Trust Account subject to the terms and conditions set forth herein;

 

     

     

    

 

(c)      
In a timely manner, upon the written instruction of the Company, invest and reinvest the Property solely in United States government
securities within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended, having a maturity of 185 days or
less, or in money market funds meeting the conditions of paragraphs (d)(1), (d)(2), (d)(3) and (d)(4) of Rule 2a-7 promulgated under the
Investment Company Act of 1940, as amended (or any successor rule), which invest only in direct U.S. government treasury obligations,
as determined by the Company; it being understood that the Trust Account will earn no interest while account funds are uninvested awaiting
the Company’s instructions hereunder and while invested or uninvested, the Trustee may earn bank credits or other consideration;

 

(d)       Collect
and receive, when due, all principal, interest or other income arising from the Property, which shall become part of the “Property,”
as such term is used herein;

 

(e)      
Promptly notify the Company and the Underwriter of all communications received by the Trustee with respect to any Property requiring
action by the Company;

 

(f)        Supply
any necessary information or documents as may be requested by the Company (or its authorized agents) in connection with the Company’s
preparation of the tax returns relating to assets held in the Trust Account or in connection with the preparation or completion of the
audit of the Company’s financial statements by the Company’s auditors;

 

(g)       Participate
in any plan or proceeding for protecting or enforcing any right or interest arising from the Property if, as and when instructed by the
Company to do so;

 

(h)       Render
to the Company monthly written statements of the activities of, and amounts in, the Trust Account reflecting all receipts and disbursements
of the Trust Account;

 

(i)       
Commence liquidation of the Trust Account only after and promptly after (x) receipt of, and only in accordance with, the terms
of a letter from the Company (“Termination Letter”) in a form substantially similar to that attached hereto as either
Exhibit A or Exhibit B, as applicable, signed on behalf of the Company by its Chief Executive Officer, Chief Financial
Officer, Chief Strategy Officer, Secretary or Chairman of the board of directors of the Company (the “Board”) or other
authorized officer of the Company (an “Authorized Representative”), and complete the liquidation of the Trust Account
and distribute the Property in the Trust Account, including interest not previously released to the Company to pay its franchise and income
taxes (less up to $100,000 of interest that may be released to the Company to pay dissolution expenses in the case of a Termination Letter
in the form of Exhibit B hereto), only as directed in the Termination Letter and the other documents referred to therein,
or (y) upon the date which is, the later of (1) 18 months after the closing of the Offering and (2) such later date as may be approved
by the Company’s stockholders in accordance with the Company’s amended and restated certificate of incorporation if a Termination
Letter has not been received by the Trustee prior to such date, in which case the Trust Account shall be liquidated in accordance with
the procedures set forth in the form of letter attached hereto as Exhibit B and the Property in the Trust Account, including
interest (which interest shall be net of any taxes less up to $100,000 of interest that may be released to the Company to pay dissolution
expenses shall be distributed to the Public Stockholders of record as of such date. It is acknowledged and agreed that there should be
no reduction in the principal amount per share initially deposited in the Trust Account;

 

     

     

    

 

(j)        Upon
written request from the Company, which may be given from time to time in a form substantially similar to that attached hereto as Exhibit C,
withdraw from the Trust Account and distribute to the Company the amount of interest earned on the Property requested by the Company
to cover any tax obligation owed by the Company as a result of assets of the Company or interest or other income earned on the
Property, which amount shall be delivered directly to the Company by electronic funds transfer or other method of prompt payment,
and the Company shall forward such payment to the relevant taxing authority; provided, however, that to the extent there is not
sufficient cash in the Trust Account to pay such tax obligation, the Trustee shall liquidate such assets held in the Trust Account
as shall be designated by the Company in writing to make such distribution, so long as such distribution does not result in a
reduction in the principal amount per share initially deposited in the Trust Account; provided, further, that if the tax to be paid
is a franchise tax, the written request by the Company to make such distribution shall be accompanied by a copy of the franchise tax
bill from the State of Delaware for the Company and a written statement from the principal financial officer of the Company setting
forth the actual amount payable (it being acknowledged and agreed that any such amount in excess of interest income earned on the
Property shall not be payable from the Trust Account). The written request of the Company referenced above shall constitute
presumptive evidence that the Company is entitled to said funds, and the Trustee shall have no responsibility to look beyond said
request;

 

(k)      
Upon written request from the Company, which may be given from time to time in a form substantially similar to that attached hereto
as Exhibit D, the Trustee shall distribute on behalf of the Company the amount requested by the Company to be used to redeem
shares of Common Stock from Public Stockholders properly submitted in connection with a stockholder vote to approve an amendment to the
Company’s amended and restated certificate of incorporation (a) to modify the substance or timing of the Company’s obligation
to allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of the shares of Common Stock
included in the Units issued in the Offering (such shares, the “Public Shares”) if the Company has not consummated
an initial Business Combination within such time as is prescribed in the Company’s amended and restated certificate of incorporation
or (b) with respect to any other provision relating to stockholders’ rights or pre-initial Business Combination activity. The
written request of the Company referenced above shall constitute presumptive evidence that the Company is entitled to distribute said
funds, and the Trustee shall have no responsibility to look beyond said request; and

 

(l)       
Not make any withdrawals or distributions from the Trust Account other than pursuant to Section 1(i), 1(j) or
1(k) above.

 

2.            
Agreements and Covenants of the Company. The Company hereby agrees and covenants to:

 

(a)      
Give all instructions to the Trustee hereunder in writing, signed by an Authorized Representative of the Company. In addition,
except with respect to its duties under Sections 1(i), 1(j) and 1(k) hereof, the Trustee shall be entitled to
rely on, and shall be protected in relying on, any verbal or telephonic advice or instruction which it, in good faith and with reasonable
care, believes to be given by any one of the persons authorized above to give written instructions, provided that the Company shall promptly
confirm such instructions in writing;

 

(b)       Subject
to Section 4 hereof, hold the Trustee harmless and indemnify the Trustee from and against any and all reasonable and
documented out-of-pocket expenses, including reasonable outside counsel fees and disbursements, or losses suffered by the Trustee in
connection with any action taken by it hereunder and in connection with any action, suit or other proceeding brought against the
Trustee involving any claim, or in connection with any claim or demand, which in any way arises out of or relates to this Agreement,
the services of the Trustee hereunder, or the Property or any interest earned on the Property, except for expenses and losses
resulting from the Trustee’s gross negligence, fraud or willful misconduct. Promptly after the receipt by the Trustee of
notice of demand or claim or the commencement of any action, suit or proceeding, pursuant to which the Trustee intends to seek
indemnification under this Section 2(b), it shall
notify the Company in writing of such claim (hereinafter referred to as the “Indemnified Claim”). The Trustee
shall have the right to conduct and manage the defense against such Indemnified Claim; provided that the Trustee shall obtain the
consent of the Company with respect to the selection of counsel, which consent shall not be unreasonably withheld. The Trustee may
not agree to settle any Indemnified Claim without the prior written consent of the Company, which such consent shall not be
unreasonably withheld. The Company may participate in such action with its own counsel;

 

     

     

    

 

(c)      
Pay the Trustee the fees set forth on Schedule A hereto, including an initial acceptance fee, annual administration
fee, and transaction processing fee which fees shall be subject to modification by the parties from time to time. It is expressly understood
that the Property shall not be used to pay such fees unless and until the closing of the Business Combination (defined below). The Company
shall pay the Trustee the initial acceptance fee and the first annual administration fee at the consummation of the Offering. The Company
shall not be responsible for any other fees or charges of the Trustee except as set forth in this Section 2(c), Schedule A
and as may be provided in Section 2(b) hereof;

 

(d)       In connection with any vote of the Company’s stockholders regarding a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination involving the Company and one or more businesses (a “Business
Combination”), provide to the Trustee an affidavit or certificate of the inspector of elections for the stockholder meeting
verifying the vote of such stockholders regarding such Business Combination;

 

(e)      
Provide the Underwriter with a copy of any Termination Letter(s) and/or any other correspondence that is sent to the Trustee with
respect to any proposed withdrawal from the Trust Account promptly after it issues the same;

 

(f)        Unless
otherwise agreed between the Company and the Underwriter, ensure that any Instruction Letter (as defined in Exhibit A) delivered
in connection with a Termination Letter in the form of Exhibit A expressly provides that the Deferred Discount is paid directly
to the account or accounts directed by the Underwriter prior to any transfer of the funds held in the Trust Account to the Company or
any other person;

 

(g)      
Instruct the Trustee to make only those distributions that are permitted under this Agreement, and refrain from instructing the
Trustee to make any distributions that are not permitted under this Agreement; and

 

(h)      Within five (5) business days after the Underwriter exercises the over-allotment option (or any unexercised portion thereof)
in connection with the Offering or such over-allotment option expires, provide the Trustee with a notice in writing of the total amount
of the Deferred Discount, which shall in no event be less than $5,250,000.

 

3.            
Limitations of Liability. The Trustee shall have no responsibility
or liability to:

 

(a)      
Imply obligations, perform duties, inquire or otherwise be subject to the provisions of any agreement or document other than this
Agreement and that which is expressly set forth herein;

 

(b)      
Take any action with respect to the Property, other than as directed in Section 1 hereof, and the Trustee shall have
no liability to any third party except for liability arising out of the Trustee’s gross negligence, fraud or willful misconduct;

 

(c)      
 Institute any proceeding for the collection of any principal and income arising from, or institute, appear in or defend any proceeding
of any kind with respect to, any of the Property unless and until it shall have received instructions from the Company given as provided
herein to do so and the Company shall have advanced or guaranteed to it funds sufficient to pay any expenses incident thereto;

 

     

     

    

 

(d)       
Refund any depreciation in principal of any Property;

 

(e)       
Assume that the authority of any person designated by the Company to give instructions hereunder shall not be continuing unless
provided otherwise in such designation, or unless the Company shall have delivered a written revocation of such authority to the Trustee;

 

(f)        
The Company or to anyone else for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good
faith and in the Trustee’s best judgment, except for the Trustee’s gross negligence, fraud or willful misconduct. The Trustee
may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including
counsel chosen by the Trustee, which counsel may be the Company’s counsel), statement, instrument, report or other paper or document
(not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of
any information therein contained) which the Trustee believes, in good faith and with reasonable care, to be genuine and to be signed
or presented by the proper person or persons. The Trustee shall not be bound by any notice or demand, or any waiver, modification, termination
or rescission of this Agreement or any of the terms hereof, unless evidenced by a written instrument delivered to the Trustee, signed
by the proper party or parties and, if the duties or rights of the Trustee are affected, unless it shall give its prior written consent
thereto;

 

(g)      
Provide any assurance that any Business Combination entered into by the Company or any other action taken by the Company is as
contemplated by the Registration Statement;

 

(h)      
File information returns with respect to the Trust Account with any local, state or federal taxing authority or provide periodic
written statements to the Company documenting the taxes payable by the Company, if any, relating to any interest income earned on the
Property;

 

(i)       
Prepare, execute and file tax reports, income or other tax returns and pay any taxes with respect to any income generated by, and
activities relating to, the Trust Account, regardless of whether such tax is payable by the Trust Account or the Company, including, but
not limited to, franchise and income tax obligations, except pursuant to Section 1(j) hereof; or

 

(j)        
Verify calculations, qualify or otherwise approve the Company’s written requests for distributions pursuant to Sections 1(i),
1(j) or 1(k) hereof.

 

4.            
Trust Account Waiver. The Trustee has no right of set-off
or any right, title, interest or claim of any kind (“Claim”) to, or to any monies in, the Trust Account, and hereby
irrevocably waives any Claim to, or to any monies in, the Trust Account that it may have now or in the future. In the event the Trustee
has any Claim against the Company under this Agreement, including, without limitation, under Section 2(b) or Section 2(c)
hereof, the Trustee shall pursue such Claim solely against the Company and its assets outside the Trust Account and not against the Property
or any monies in the Trust Account.

 

5.            
Termination. This Agreement shall terminate as follows:

 

(a)        If
the Trustee gives written notice to the Company that it desires to resign under this Agreement, the Company shall use its reasonable
efforts to locate a successor trustee, pending which the Trustee shall continue to act in accordance with this Agreement. At such
time that the Company notifies the Trustee that a successor trustee has been appointed by the Company and has agreed to become
subject to the terms of this Agreement, the Trustee shall transfer the management of the Trust Account to the successor trustee,
including but not limited to the transfer of copies of the reports and statements relating to the Trust Account, whereupon this
Agreement shall terminate; provided, however, that in the event that the Company does not locate a successor trustee within ninety
(90) days of receipt of the resignation notice from the Trustee, the Trustee may submit an application to have the Property
deposited with any court in the State of New York or with the United States District Court for the Southern District of New York and
upon such deposit, the Trustee shall be immune from any liability whatsoever; or

 

     

     

    

 

(b)      
At such time that the Trustee has completed the liquidation of the Trust Account and its obligations in accordance with the provisions
of Section 1(i) hereof and distributed the Property in accordance with the provisions of the Termination Letter, this Agreement
shall terminate except with respect to Section 2(b) and Section 4.

 

6.            
Miscellaneous.

 

(a)       
The Company and the Trustee each acknowledge that the Trustee will follow the security procedures set forth below with respect
to funds transferred from the Trust Account. The Company and the Trustee will each restrict access to confidential information relating
to such security procedures to authorized persons. Each party must notify the other party immediately if it has reason to believe unauthorized
persons may have obtained access to such confidential information, or of any change in its authorized personnel. In executing funds transfers,
the Trustee shall rely upon all information supplied to it by the Company, including, account names, account numbers, and all other identifying
information relating to a Beneficiary, Beneficiary’s bank or intermediary bank. Except for any liability arising out of the Trustee’s
gross negligence, fraud or willful misconduct, the Trustee shall not be liable for any loss, liability or expense resulting from any error
in the information or transmission of the funds.

 

(b)      
This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York. This Agreement
may be executed in several original or facsimile counterparts, each one of which shall constitute an original, and together shall constitute
but one instrument.

 

(c)        This
Agreement contains the entire agreement and understanding of the parties hereto with respect to the subject matter hereof. Subject to
Section 6(d) hereof, this Agreement or any provision hereof may only be changed, amended or modified (other than to correct a
typographical error) by a writing signed by each of the parties hereto.

 

(d)       Sections
1(i), 1(j) and 1(k) hereof may only be changed, amended or modified pursuant to Section 6(c) hereof
with the Consent of the Stockholders. For purposes of this Section 6(d), the “Consent of the
Stockholders” means (i) receipt by the Trustee of a certificate from the inspector of elections of the stockholder meeting
certifying that the Company’s stockholders of record as of a record date established in accordance with Section 213(a) of the
Delaware General Corporation Law, as amended (“DGCL”) (or any successor rule), who hold fifty percent (50%) of
the then outstanding shares of the Common Stock and Class B common stock, par value $0.0001 per share, of the Company voting
together as a single class, have voted in favor of such change, amendment or modification, or (ii) the Company’s stockholders
of record as of the record date who hold fifty percent (50%) or more of all then outstanding shares of the Common Stock and Class B
common stock, par value $0.0001 per share, of the Company voting together as a single class, have delivered to the Trustee a signed
writing approving such change, amendment or modification. No such amendment will affect any Public Stockholder who has otherwise
indicated his election to redeem his Public Shares in connection with a stockholder vote sought to amend this Agreement in
connection with an amendment to the Company’s amended and restated certificate of incorporation (a) to modify the substance or
timing of the Company’s obligation to allow redemption in connection with the Company’s initial business combination or
to redeem 100% of the Public Shares if the Company does not complete its initial Business Combination within the time frame
specified in the Company’s amended and restated certificate of incorporation or (b) with respect to any other provision
relating stockholders’ rights or pre-initial Business Combination activity. Except for any liability arising out of the
Trustee’s gross negligence, fraud or willful misconduct, the Trustee may rely conclusively on the certification from the
inspector of elections referenced above and shall be relieved of all liability to any party for executing the proposed amendment in
reliance thereon.

 

     

     

    

 

(e)       
The parties hereto consent to the jurisdiction and venue of any state or federal court located in the City of New York, State of
New York, for purposes of resolving any disputes hereunder. AS TO ANY CLAIM, CROSS-CLAIM OR COUNTERCLAIM IN ANY WAY RELATING TO THIS AGREEMENT,
EACH PARTY WAIVES THE RIGHT TO TRIAL BY JURY.

 

(f)       
Any notice, consent or request to be given in connection with any of the terms or provisions of this Agreement shall be in writing
and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery or
by electronic mail:

 

if to the Trustee, to:

 

Continental Stock Transfer & Trust
Company

1 State Street, 30th Floor

New York, NY 10004

Attn:      Francis Wolf and Celeste Gonzalez

Email:    fwolf@continentalstock.com and cgonzalez@continentalstock.com

 

if to the Company, to:

 

Arbor Rapha Capital Bioholdings Corp.
I

333 Earle Ovington Blvd Suite 900

Uniondale, NY 11553

Attn:      Ivan Kaufman

Email:    ikaufman@arbor.com

 

in each case, with copies to:

 

Skadden, Arps, Slate, Meagher &
Flom LLP

One Manhattan West

New York, NY 10001

Attn:      David J. Goldschmidt, Esq.

Email:    david.goldschmidt@skadden.com

 

and

 

Cantor Fitzgerald & Co.

110 E Fifty Ninth Street

New York, NY, 10022

Email:    SPAC@cantor.com

 

and

 

Ellenoff Grossman & Schole LLP

1345 Avenue of the Americas

New York, NY 10105

Attn:     Stuart Neuhauser, Esq.

      Joan Adler, Esq.

Email:   sneuhauser@egsllp.com

     jadler@egsllp.com

 

     

     

    

 

(g)      
Each of the Company and the Trustee hereby represents that it has the full right and power and has been duly authorized to enter
into this Agreement and to perform its respective obligations as contemplated hereunder. The Trustee acknowledges and agrees that it shall
not make any claims or proceed against the Trust Account, including by way of set-off, and shall not be entitled to any funds in the Trust
Account under any circumstance.

 

(h)      
This Agreement is the joint product of the Trustee and the Company and each provision hereof has been subject to the mutual consultation,
negotiation and agreement of such parties and shall not be construed for or against any party hereto.

 

(i)       
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts
shall together constitute one and the same instrument. Delivery of a signed counterpart of this Agreement by facsimile or electronic transmission
shall constitute valid and sufficient delivery thereof.

 

(j)        
Each of the Company and the Trustee hereby acknowledges and agrees that Cantor Fitzgerald & Co. is a third party beneficiary
of this Agreement.

 

(k)       
Except as specified herein, no party to this Agreement may assign its rights or delegate its obligations hereunder to any other
person or entity.

 

[Signature Page Follows]

 

     

     

    

 

IN WITNESS WHEREOF, the parties
have duly executed this Investment Management Trust Agreement as of the date first written above.

 

	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY, as Trustee
	 	 
	 	By:  	/s/ Francis Wolf
	 	Name:  	Francis Wolf
	 	Title:	Vice President
	 	 
	 	ARBOR RAPHA CAPITAL BIOHOLDINGS CORP. I
	 	 
	 	By:  	/s/ Ivan Kaufman
	 	Name:  	Ivan Kaufman
	 	Title:  	Chief Executive Officer

 

[Signature Page to Investment Management Trust
Agreement]

 

     

     

    

 

SCHEDULE A

 

	Fee Item	 	Time and method of payment	 	Amount
	Initial set-up fee	 	Initially closing of Offering by wire transfer. Payable annually. First year fee payable, at initial closing of Offering by wire transfer, thereafter by wire transfer or check.	 	$	3,500
	Trust administration fee	 	Deduction by Trustee from accumulated income following disbursement made to Company under Section 1	 	$	10,000
	Transaction processing fee for disbursements to Company under Section 1(i) and 1(j)	 	Billed to Company upon delivery of service	 	$	250
	Paying agent services related to Section 1	 	Billed to Company upon delivery of services	 	 	Prevailing rages

 

     

     

    

 

EXHIBIT A

 

[Letterhead of Company]

 

[Insert date]

 

Continental Stock Transfer & Trust Company

1 State Street, 30th Floor

New York, New York 10004

Attn:    Francis Wolf and Celeste Gonzalez

 

Re:    Trust Account Termination
Letter

 

Ladies and Gentlemen:

 

Pursuant to Section 1(i) of
the Investment Management Trust Agreement between Arbor Rapha Capital Bioholdings Corp. I (the “Company”) and Continental
Stock Transfer & Trust Company (the “Trustee”), dated as of [●], 2021 (the “Trust Agreement”),
this is to advise you that the Company has entered into an agreement with [●] (the “Target Business”) to consummate
a business combination with the Target Business (the “Business Combination”) on or about [insert date]. The Company
shall notify you at least seventy-two (72) hours (or such shorter time as you may agree) in advance of the actual date fixed for the consummation
of the Business Combination (the “Consummation Date”). Capitalized terms used but not defined herein shall have the
meanings set forth in the Trust Agreement.

 

In accordance with the terms
of the Trust Agreement, we hereby authorize you to commence to liquidate all of the assets of the Trust Account and transfer the proceeds
to the trust operating account at JPMorgan Chase Bank, N.A. held by you on behalf of the Beneficiaries to the effect that, on the Consummation
Date, all of the funds held in the Trust Account will be immediately available for transfer to the account or accounts that the Company
shall direct on the Consummation Date (including as directed to it by the Underwriter (with respect to the Deferred Discount)). It is
acknowledged and agreed that while the funds are on deposit in the trust operating account awaiting distribution, the Company will not
earn any interest or dividends.

 

On the Consummation Date
(i) counsel for the Company shall deliver to you written notification that the Business Combination has been consummated, or will be
consummated substantially concurrently with your transfer of funds to the accounts as directed by the Company (the
 “Notification”) and (ii) the Company shall deliver to you (a) a certificate of its Chief Executive Officer (the
 “Vote Verification Certificate”), which verifies either that the Business Combination has been approved by a vote
of the Company’s stockholders, if a vote is held or no vote of the Company’s stockholders for the approval of the
Business Combination is required and none has been held and (b) a joint written instruction signed by the Company and the
Underwriter with respect to the transfer of the funds held in the Trust Account, including payment of amounts owed to Public
Stockholders who have properly exercised their redemption rights and payment of the Deferred Discount to the Underwriter from the
Trust Account (the “Instruction Letter”). You are hereby directed and authorized to transfer the funds held in
the Trust Account immediately upon your receipt of the Notification, the Vote Verification Certificate and the Instruction Letter,
in accordance with the terms of the Instruction Letter. In the event that certain deposits held in the Trust Account may not be
liquidated by the Consummation Date without penalty, you will notify the Company in writing of the same and the Company shall direct
you as to whether such funds should remain in the Trust Account and be distributed after the Consummation Date to the Company. Upon
the distribution of all the funds, net of any payments necessary for reasonable unreimbursed expenses related to liquidating the
Trust Account, your obligations under the Trust Agreement shall be terminated.

 

    A-1

     

    

 

In the event that the Business
Combination is not consummated on the Consummation Date described in the notice thereof and we have not notified you on or before the
original Consummation Date of a new Consummation Date, then upon receipt by the you of written instructions from the Company, the funds
held in the Trust Account shall be reinvested as provided in Section 1(c) of the Trust Agreement on the business day immediately following
such original Consummation Date as set forth in such notice or as soon thereafter as possible.

 

	 	Very truly yours,
	 	 
	 	Arbor Rapha Capital Bioholdings Corp. I
	 	 
	 	By:  	 
	 	Name:  	Ivan Kaufman
	 	Title:	Chief Executive Officer

 

cc:    Cantor Fitzgerald & Co.

 

    A-2

     

    

 

EXHIBIT B

 

[Letterhead of Company]

 

[Insert date]

 

Continental Stock Transfer & Trust Company

1 State Street, 30th Floor

New York, New York 10004

Attn:    Francis Wolf and Celeste Gonzalez

 

Re:    Trust Account Termination
Letter

 

Ladies and Gentlemen:

 

Pursuant to Section 1(i) of
the Investment Management Trust Agreement between Arbor Rapha Capital Bioholdings Corp. I (the “Company”) and Continental
Stock Transfer & Trust Company (the “Trustee”), dated as of [●], 2021 (the “Trust Agreement”),
this is to advise you that the Company has been unable to effect a business combination with a Target Business (the “Business
Combination”) within the time frame specified in the Company’s Amended and Restated Certificate of Incorporation, as described
in the Company’s Prospectus relating to the Offering. Capitalized terms used but not defined herein shall have the meanings set
forth in the Trust Agreement.

 

In accordance with the terms
of the Trust Agreement, we hereby authorize you to liquidate all of the assets in the Trust Account and transfer the total proceeds into
a trust operating account at JPMorgan Chase Bank, N.A. held by you on behalf of the Beneficiaries to await distribution to the Public
Stockholders.

 

The Company has selected [●]
as the effective date for the purpose of determining when the Public Stockholders will be entitled to receive their share of the liquidation
proceeds. You agree to be the Paying Agent of record and, in your separate capacity as Paying Agent, agree to distribute said funds directly
to the Public Stockholders in accordance with the terms of the Trust Agreement and the Amended and Restated Certificate of Incorporation
of the Company. Upon the distribution of all the funds, net of any payments necessary for reasonable unreimbursed expenses related to
liquidating the Trust Account, your obligations under the Trust Agreement shall be terminated, except to the extent otherwise provided
in Section 1(j) of the Trust Agreement.

 

	 	Very truly yours,
	 	 
	 	Arbor Rapha Capital Bioholdings Corp. I
	 	 
	 	By:  	 
	 	Name:  	Ivan Kaufman
	 	Title:	Chief Executive Officer

 

cc:     Cantor Fitzgerald & Co.

 

    B-1

     

    

 

EXHIBIT C

 

[Letterhead of Company]

 

[Insert date]

 

Continental Stock Transfer & Trust Company

1 State Street, 30th Floor

New York, New York 10004

Attn:    Francis Wolf and Celeste Gonzalez

 

Re:    Trust Account Withdrawal
Instruction

 

Ladies and Gentlemen:

 

Pursuant to Section 1(j)
of the Investment Management Trust Agreement between Arbor Rapha Capital Bioholdings Corp. I (the “Company”) and Continental
Stock Transfer & Trust Company (the “Trustee”), dated as of [●], 2021 (the “Trust Agreement”),
the Company hereby requests that you deliver to the Company $[●] of the interest income earned on the Property as of the date hereof.
Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.

 

The Company needs such funds
to pay for the tax obligations as set forth on the attached tax return or tax statement. In accordance with the terms of the Trust Agreement,
you are hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt of this letter to the Company’s
operating account at:

 

[WIRE INSTRUCTION INFORMATION]

 

	 	Very truly yours,
	 	 
	 	Arbor Rapha Capital Bioholdings Corp. I
	 	 
	 	By:  	 
	 	Name:  	Ivan Kaufman
	 	Title:  	Chief Executive Officer

 

cc:     Cantor Fitzgerald & Co.

 

    C-1

     

    

 

EXHIBIT D

 

[Letterhead of Company]

 

[Insert date]

 

Continental Stock Transfer & Trust Company

1 State Street, 30th Floor

New York, New York 10004

Attn:    Francis Wolf and Celeste Gonzalez

 

Re:    Trust Account Shareholder
Redemption Withdrawal Instruction

 

Ladies and Gentlemen:

 

Pursuant to Section 1(k)
of the Investment Management Trust Agreement between Arbor Rapha Capital Bioholdings Corp. I (the “Company”) and Continental
Stock Transfer & Trust Company (the “Trustee”), dated as of [●], 2021 (the “Trust Agreement”),
the Company hereby requests that you deliver $[●] of the principal and interest income earned on the Property as of the date hereof
to a segregated account held by you on behalf of the Beneficiaries for distribution to the Public Stockholders who have requested redemption
of their Public Shares. Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.

 

The Company needs such funds
to pay the Public Stockholders who have properly elected to have their shares of Common Stock redeemed by the Company in connection with
a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation (i) to modify the
substance or timing of the Company’s obligation to allow redemption in connection with the Company’s initial Business Combination
or to redeem 100% of Public Shares if the Company has not consummated an initial Business Combination within such time as is described
in the Company’s amended and restated certificate of incorporation or (ii) with respect to any other provision relating to stockholders’
rights or pre-initial Business Combination activity. As such, you are hereby directed and authorized to transfer (via wire transfer) such
funds promptly upon your receipt of this letter to a segregated account held by you on behalf of such Public Stockholders.

 

	 	Very truly yours,
	 	 
	 	Arbor Rapha Capital Bioholdings Corp. I
	 	 
	 	By:  	 
	 	Name:  	Ivan Kaufman
	 	Title:  	Chief Executive Officer

 

cc:     Cantor Fitzgerald & Co.

 

    D-1

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