Document:

ex102_lpcregistrationrig

BUSINESS.28939730.5       EXECUTION COPY    REGISTRATION RIGHTS AGREEMENT    THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of April 12,  2022, is entered into by and between AQUESTIVE THERAPEUTICS, INC., a Delaware corporation  (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company  (together with its permitted assigns, the “Investor”). Capitalized terms used herein and not otherwise  defined herein shall have the respective meanings set forth in the Purchase Agreement by and between the  parties hereto, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from  time to time, the “Purchase Agreement”).       WHEREAS:    A. Upon the terms and subject to the conditions of the Purchase Agreement, (i) the Company  has agreed to issue to the Investor, and the Investor has agreed to purchase, up to Forty Million Dollars  ($40,000,000) of the Company's common stock, par value $0.001 per share (the “Common Stock”),  pursuant to the Purchase Agreement (such shares, the “Purchase Shares”), and (ii) the Company has agreed  to issue to the Investor such number of shares of Common Stock as is required pursuant to the Purchase  Agreement (the “Commitment Shares”); and    B. To induce the Investor to enter into the Purchase Agreement, the Company has agreed to  provide certain registration rights under the Securities Act of 1933, as amended, and the rules and  regulations thereunder, or any similar successor statute (collectively, the “Securities Act”), and applicable  state securities laws.    NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein  and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,  the Company and the Investor hereby agree as follows:    1. DEFINITIONS.    For purposes of this Agreement, the following terms shall have the following meanings:    (a) “Register,” “Registered,” and “Registration” refer to a registration effected by  preparing and filing one or more registration statements of the Company in compliance with the Securities  Act and providing for offering securities on a continuous basis, and the declaration or ordering of  effectiveness of such registration statement(s) by the SEC.    (b) “Registrable Securities” means the Purchase Shares that may from time to time be  issued or issuable to the Investor upon purchases of the Available Amount under the Purchase Agreement  (without regard to any limitation or restriction on purchases), the Commitment Shares issued or issuable to  the Investor, and any Common Stock issued or issuable with respect to the Purchase Shares, the  Commitment Shares or the Purchase Agreement as a result of any stock split, stock dividend,  recapitalization, exchange or similar event, without regard to any limitation on purchases under the  Purchase Agreement.    

 

BUSINESS.28939730.5       (c) “Registration Statement” means the Shelf Registration Statement and any other  registration statement of the Company that Registers Registrable Securities, including a New Registration  Statement, as amended when each became effective, including all documents filed as part thereof or  incorporated by reference therein, and including any information contained in a Prospectus subsequently  filed with the SEC.    (d) “Shelf Registration Statement” means the Company’s existing registration  statement on Form S-3 (File No. 333-254775).    2. REGISTRATION.  (a) Mandatory Registration. The Company agrees that it shall, within the time  required under Rule 424(b) under the Securities Act, file with the SEC the Initial Prospectus Supplement  pursuant to Rule 424(b) under the Securities Act specifically relating to the transactions contemplated by,  and describing the material terms and conditions of, the Transaction Documents, containing information  previously omitted at the time of effectiveness of the Registration Statement in reliance on Rule 430B under  the Securities Act, and disclosing all information relating to the transactions contemplated hereby required  to be disclosed in the Registration Statement and the Prospectus as of the date of the Initial Prospectus  Supplement, including, without limitation, information required to be disclosed in the section captioned  “Plan of Distribution” in the Prospectus. The Investor acknowledges that it will be identified in the Initial  Prospectus Supplement as an underwriter within the meaning of Section 2(a)(11) of the Securities Act. The  Company shall permit the Investor to review and comment upon the Initial Prospectus Supplement at least  two (2) Business Days prior to its filing with the SEC, the Company shall give due consideration to all such  comments, and the Company shall not file the Initial Prospectus Supplement with the SEC in a form to  which the Investor reasonably objects. The Investor shall use its reasonable best efforts to comment upon  the Initial Prospectus Supplement within one (1) Business Day from the date the Investor receives a  substantially complete draft thereof from the Company. The Investor shall furnish to the Company such  information regarding itself, the Securities held by it and the intended method of distribution thereof,  including any arrangement between the Investor and any other Person relating to the sale or distribution of  the Securities, as shall be reasonably requested by the Company in connection with the preparation and  filing of the Initial Prospectus Supplement, and shall otherwise cooperate with the Company as reasonably  requested by the Company in connection with the preparation and filing of the Initial Prospectus  Supplement with the SEC.     (b) Effectiveness. The Company shall use its commercially reasonable efforts to keep  the Registration Statement effective pursuant to Rule 415 promulgated under the Securities Act, and to keep  the Registration Statement and the Prospectus current and available for issuances and sales of all possible  Registrable Securities by the Company to the Investor, and for the resale of all of the Registrable Securities  by the Investor, at all times until the earlier of (i) the date on which the Investor shall have sold all the  Securities and no Available Amount remains under the Purchase Agreement and (ii) 180 days following  the earlier of termination of the Purchase Agreement and the Maturity Date (the "Registration Period").  Without limiting the generality of the foregoing, during the Registration Period, the Company shall (a) take  all action necessary to cause the Common Stock to continue to be Registered as a class of securities under  Section 12(b) of the Exchange Act and shall not take any action or file any document (whether or not  permitted by the Exchange Act) to terminate or suspend such registration and (b) file or furnish on or before  their respective due dates all reports and other documents required to be filed or furnished by the Company  pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange Act, and shall  not take any action or file any document (whether or not permitted by the Exchange Act) to terminate or  suspend its reporting and filing obligations under the Exchange Act. The Registration Statement (including  any amendments or supplements thereto and the Base Prospectus, the Prospectus Supplements and any  other prospectuses and prospectus supplements contained therein or related thereto and any documents  incorporated therein) shall not contain any untrue statement of a material fact or omit to state a material fact  

 

BUSINESS.28939730.5       necessary to make the statements therein, in the light of the circumstances under which they were made,  not misleading.       (c) Prospectus Amendments or Supplements. Except as provided in this Agreement  and other than periodic and current reports required to be filed pursuant to the Exchange Act, the Company  shall not file with the SEC any amendment to the Registration Statement or any supplement to the Base  Prospectus that refers to the Investor, the Transaction Documents or the transactions contemplated thereby  (including, without limitation, any Prospectus Supplement filed in connection with the transactions  contemplated by the Transaction Documents), in each case with respect to which (a) the Investor shall not  previously have been advised and afforded the opportunity to review and comment thereon at least two (2)  Business Days prior to filing with the SEC, as the case may be, (b) the Company shall not have given due  consideration to any comments thereon received from the Investor or its counsel, or (c) the Investor shall  reasonably object, unless the Company reasonably has determined that it is necessary to amend the  Registration Statement or make any supplement to the Prospectus to comply with the Securities Act or any  other applicable law or regulation, in which case (i) the Company shall promptly (but in no event later than  24 hours) so inform the Investor, (ii) the Investor shall be provided with a reasonable opportunity to review  and comment upon any disclosure referring to the Investor, the Transaction Documents or the transactions  contemplated thereby, as applicable, and (iii) the Company shall expeditiously furnish to the Investor a  copy thereof. In addition, for so long as, in the reasonable opinion of counsel for the Investor, the Prospectus  is required to be delivered in connection with any acquisition or sale of Securities by the Investor, the  Company shall not file any Prospectus Supplement with respect to the Securities without furnishing to the  Investor as many copies of such Prospectus Supplement, together with the Prospectus, as the Investor may  reasonably request.    (d) Sufficient Number of Shares Registered. In the event the number of shares  available under the Shelf Registration Statement at any time is insufficient to cover the Registrable  Securities, the Company shall, to the extent necessary and permissible, amend the Shelf Registration  Statement or file a new registration statement (together with any prospectuses or prospectus supplements  thereunder, a “New Registration Statement”), so as to cover all of such Registrable Securities as soon as  reasonably practicable, but in any event not later than ten (10) Business Days after the necessity therefor  arises. The Company shall use its reasonable best efforts to have such amendment and/or New Registration  Statement become effective as soon as reasonably practicable following the filing thereof.        (e) Offering. If the SEC seeks to characterize any offering pursuant to a Registration  Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit  such Registration Statement to become effective and be used by the Investor under Rule 415 at then- prevailing market prices (and not fixed prices), or if after the filing of the Initial Prospectus Supplement  with the SEC pursuant to Section 2(a), the Company is otherwise required by the Staff or the SEC to reduce  the number of Registrable Securities included in such initial Registration Statement, then the Company  shall reduce the number of Registrable Securities to be included in such initial Registration Statement (with  the prior consent, which shall not be unreasonably withheld, of the Investor and its legal counsel as to the  specific Registrable Securities to be removed therefrom) until such time as the SEC shall so permit such  Registration Statement to become effective and be used as aforesaid. In the event of any reduction in  Registrable Securities pursuant to this paragraph, the Company shall file one or more New Registration  Statements in accordance with Section 2(d) until such time as all Registrable Securities have been included  in Registration Statements that have been declared effective and the prospectuses contained therein are  available for use by the Investor.     3. RELATED OBLIGATIONS.    

 

BUSINESS.28939730.5       With respect to the Registration Statement and whenever any Registrable Securities are to be  Registered pursuant to Section 2, including on the Shelf Registration Statement or on any New Registration  Statement, the Company shall use its reasonable best efforts to effect the registration of the Registrable  Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the  Company shall have the following obligations:    (a) Notifications. The Company will notify the Investor promptly of the time when  any subsequent amendment to the Shelf Registration Statement or any New Registration Statement, other  than documents incorporated by reference, has been filed with the SEC and/or has become effective or  where a receipt has been issued therefor or any subsequent supplement to a Prospectus has been filed and  of any request by the SEC for any amendment or supplement to the Registration Statement, any New  Registration Statement or any Prospectus or for additional information.    (b) Amendments. The Company will prepare and file with the SEC, promptly upon  the Investor’s reasonable request, any amendments or supplements to the Shelf Registration Statement, any  New Registration Statement or any Prospectus, as applicable, that, in the reasonable opinion of the Investor  and the Company, may be necessary or advisable in connection with any acquisition or sale of Registrable  Securities by the Investor (provided, however, that the failure of the Investor to make such request shall not  relieve the Company of any obligation or liability hereunder).    (c) Investor Review. The Company will not file any amendment or supplement to the  Registration Statement, any New Registration Statement or any Prospectus, other than documents  incorporated by reference, relating to the Investor, the Registrable Securities or the transactions  contemplated hereby unless (A) the Investor shall have been advised and afforded the opportunity to review  and comment thereon at least two (2) Business Days prior to filing with the SEC, (B) the Company shall  have given due consideration to any comments thereon received from the Investor or its counsel, and (C)  the Investor has not reasonably objected thereto (provided, however, that the failure of the Investor to make  such objection shall not relieve the Company of any obligation or liability hereunder), and the Company  will furnish to the Investor at the time of filing thereof a copy of any document that upon filing is deemed  to be incorporated by reference into the Registration Statement or any Prospectus, except for those  documents available via EDGAR.    (d) Form S-3. The Company will cause each amendment or supplement to the  Prospectus, other than documents incorporated by reference, to be filed with the SEC as required pursuant  to the rules of Form S-3.    (e) Copies Available. The Company will furnish to the Investor and its counsel (at the  expense of the Company) copies of the Registration Statement, the Prospectus (including all documents  incorporated by reference therein), any Prospectus Supplement, any New Registration Statement and all  amendments and supplements to the Registration Statement, the Prospectus or any New Registration  Statement that are filed with the SEC during the Registration Period (including all documents filed with or  furnished to the SEC during such period that are deemed to be incorporated by reference therein), in each  case as soon as reasonably practicable upon the Investor’s request and in such quantities as the Investor  may from time to time reasonably request and, at the Investor’s request, will also furnish copies of the  Prospectus to each exchange or market on which sales of the Registrable Securities may be made; provided,  however, that the Company shall not be required to furnish any document (other than the Prospectus) to the  Investor to the extent such document is available on EDGAR.     (f) Qualification. The Company shall take all such action, if any, as is reasonably  necessary in order to obtain an exemption for or to qualify (i) the issuance of the Commitment Shares and  the sale of the Purchase Shares to the Investor under this Agreement and (ii) any subsequent resale of all  

 

BUSINESS.28939730.5       Commitment Shares and all Purchase Shares by the Investor, in each case, under applicable securities or  “Blue Sky” laws of the states of the United States in such states as is reasonably requested by the Investor  during the Registration Period, and shall provide evidence of any such action so taken to the  Investor. During the Registration Period, the Company shall promptly notify the Investor of the receipt by  the Company of any notification with respect to the suspension of the registration or qualification of any of  the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United  States or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.    (g) Notification of Stop Orders; Material Changes. The Company shall advise the  Investor promptly (but in no event later than 24 hours) and shall confirm such advice in writing, in each  case: (i) of the Company’s receipt of notice of any request by the SEC or any other federal or state  governmental authority for amendment of or a supplement to the Registration Statement or any Prospectus  or for any additional information; (ii) of the Company’s receipt of notice of the issuance by the SEC or any  other federal or state governmental authority of any stop order suspending the effectiveness of the  Registration Statement or prohibiting or suspending the use of the Prospectus or Prospectus Supplement,  or any New Registration Statement, or of the Company’s receipt of any notification of the suspension of  qualification of the Registrable Securities for offering or sale in any jurisdiction or the initiation or  contemplated initiation of any proceeding for such purpose; and (iii) of the Company becoming aware of  the happening of any event, which makes any statement of a material fact made in the Registration  Statement or any Prospectus untrue or which requires the making of any additions to or changes to the  statements then made in the Registration Statement or any Prospectus in order to state a material fact  required by the Securities Act to be stated therein or necessary in order to make the statements then made  therein (in the case of any Prospectus or Prospectus Supplement, in light of the circumstances under which  they were made) not misleading, or of the necessity to amend the Registration Statement or any Prospectus  to comply with the Securities Act or any other law. The Company shall not be required to disclose to the  Investor the substance or specific reasons of any of the events set forth in clauses (i) through (iii) of the  immediately preceding sentence, but rather, shall only be required to disclose that the event has occurred.  If at any time the SEC, or any other federal or state governmental authority shall issue any stop order  suspending the effectiveness of the Registration Statement or prohibiting or suspending the use of any  Prospectus or Prospectus Supplement, the Company shall use its reasonable best efforts to obtain the  withdrawal of such order at the earliest practicable time. The Company shall furnish to the Investor, without  charge and upon request, a copy of any correspondence from the SEC or the staff of the SEC, or any other  federal or state governmental authority to the Company or its representatives relating to the Shelf  Registration Statement, any New Registration Statement or any Prospectus or Prospectus Supplement, as  the case may be. The Company shall not deliver to the Investor any Regular Purchase Notice, Accelerated  Purchase Notice or Additional Accelerated Purchase Notice, and the Investor shall not be obligated to  purchase any shares of Common Stock under the Purchase Agreement, during the continuation or pendency  of any of the foregoing events.    (h) Listing on the Principal Market. The Company shall promptly secure the listing,  or conditional listing as applicable, of all of the Purchase Shares and Commitment Shares to be issued to  the Investor hereunder on the Principal Market (subject to standard listing conditions, if any, for transactions  of this nature, official notice of issuance and the Exchange Cap) and upon each other national securities  exchange, automated quotation system or trading market, if any, upon which the Common Stock are then  listed, quoted or trading, and shall maintain, so long as any Common Stock shall be so listed, such listing  of all such Registrable Securities from time to time issuable hereunder. The Company shall use its  commercially reasonable efforts to maintain the listing of the Common Stock on the Principal Market and  shall comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or  rules and regulations of the Principal Market. The Company shall not take any action that would reasonably  be expected to result in the delisting or suspension of the Common Stock on the Principal Market. The  Company shall promptly, and in no event later than the following Business Day, provide to the Investor  

 

BUSINESS.28939730.5       copies of any notices it receives from any Person regarding the continued eligibility of the Common Stock  for listing on the Principal Market; provided, however, that the Company shall not provide the Investor  copies of any such notice that the Company reasonably believes constitutes material non-public information  and that the Company would not be required to publicly disclose such notice in any report or statement  filed with the SEC under the Exchange Act (including on Form 8-K) or the Securities Act. The Company  shall pay all fees and expenses in connection with satisfying its obligations under this Section 3(h).      (i) Delivery of Shares. The Company shall cooperate with the Investor to facilitate the  timely preparation and delivery of DWAC Shares (not bearing any restrictive legend) representing the  Registrable Securities to be offered pursuant to the Shelf Registration Statement or any New Registration  Statement and enable such DWAC Shares to be in such denominations or amounts as the Investor may  reasonably request and registered in such names as the Investor may request.    (j) Transfer Agent. The Company shall at all times maintain the services of the  Transfer Agent with respect to its Common Stock.    (k) Approvals. The Company shall use its reasonable best efforts to cause the  Registrable Securities covered by any Registration Statement to be Registered with or approved by such  other governmental agencies or authorities in the United States as may be necessary to consummate the  disposition of such Registrable Securities.    (l) Confirmation of Effectiveness. If reasonably requested in writing by the Investor  at any time, the Company shall deliver to the Investor a written confirmation from Company’s counsel of  whether or not the effectiveness of such Registration Statement has lapsed at any time for any reason  (including, without limitation, the issuance of a stop order) and whether or not the Registration Statement  is currently effective and available to the Company for sale of all of the Registrable Securities.      (m) Further Assurances. The Company agrees to take all other reasonable actions as  necessary and reasonably requested in writing by the Investor to expedite and facilitate disposition by the  Investor of Registrable Securities pursuant to any Registration Statement.    (n) Suspension of Sales. The Investor agrees that, upon receipt of any notice from the  Company of the existence of any suspension or stop order as set forth in Section 3(f) or 3(g), the Investor  will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement  covering such Registrable Securities until the Investor's receipt of the copies of a notice regarding the  resolution or withdrawal of the suspension or stop order as contemplated by Section 3(f) or 3(g).  Notwithstanding anything to the contrary, the Company shall cause its transfer agent to promptly deliver to  the Investor DWAC Shares without any restrictive legend in accordance with the terms of the Purchase  Agreement in connection with any sale of Registrable Securities with respect to which the Investor has  entered into a contract for sale prior to the Investor’s receipt of a notice from the Company of the happening  of any event of the kind described in Section 3(f) or 3(g) and for which the Investor has not yet settled.    (o) Transfer Agent Instructions. On or before the date the Initial Prospectus  Supplement is filed with the SEC, the Company shall issue to the Transfer Agent the Commencement  Irrevocable Transfer Agent Instructions in the form agreed to prior to the date hereof, and on the date the  Initial Prospectus Supplement is filed with the SEC, the Company shall deliver, and shall cause legal  counsel for the Company to deliver, to the Transfer Agent for such Registrable Securities (with copies to  the Investor) confirmation that such Registration Statement has been declared effective by the SEC in the  form attached as an exhibit to the Commencement Irrevocable Transfer Agent Instructions. Thereafter, if  requested in writing by the Investor at any time, the Company shall require its legal counsel to deliver to  the Investor a written confirmation whether or not the effectiveness of such Registration Statement has  

 

BUSINESS.28939730.5       lapsed at any time for any reason (including the issuance of a stop order) and whether or not the Registration  Statement is current and available to the Investor for sale of all of the Registrable Securities.    4. OBLIGATIONS OF THE INVESTOR.    (a) Investor Information. The Investor has furnished to the Company in Exhibit A  hereto such information regarding itself, the Registrable Securities held by it, and the intended method of  disposition thereof, including any arrangement between the Investor and any other Person relating to the  sale or distribution of the Securities, as required to effect the registration of such Registrable Securities and  shall execute such documents in connection with such registration as the Company may reasonably request.  The Company shall notify the Investor in writing of any other information the Company reasonably requires  from the Investor in connection with any Registration Statement hereunder. The Investor will as promptly  as practicable notify the Company of any material change in the information set forth in Exhibit A, other  than changes in its ownership of Common Stock.    (b) Investor Cooperation. The Investor agrees to cooperate with the Company as  reasonably requested by the Company in connection with the preparation and filing of any amendments and  supplements to any Registration Statement or New Registration Statement hereunder.    5. EXPENSES OF REGISTRATION.    All reasonable expenses of the Company, other than sales or brokerage commissions and  fees and disbursements of counsel for, and other expenses of, the Investor, incurred in connection with  registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all  registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of  counsel for the Company, shall be paid by the Company.    6. INDEMNIFICATION.    (a) To the fullest extent permitted by law, the Company will, and hereby does,  indemnify, hold harmless and defend the Investor, each Person, if any, who controls the Investor, the  members, the directors, officers, partners, equityholders, employees, members, managers, agents and  representatives of the Investor and each Person, if any, who controls the Investor within the meaning of the  Securities Act or the Exchange Act (each, an “Indemnified Person”), against any losses, claims, damages,  liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement  (with the consent of the Company, such consent not to be unreasonably withheld) or reasonable expenses,  (collectively, “Claims”) reasonably incurred in investigating, preparing or defending any action, claim, suit,  inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or  governmental, administrative or other regulatory agency or body or the SEC, whether pending or  threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”), to  which any of them may become subject insofar as such Claims (or actions or proceedings, whether  commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or  alleged untrue statement of a material fact in the Shelf Registration Statement, any New Registration  Statement or any post-effective amendment thereto or in any filing made in connection with the  qualification of the offering under the securities or other “blue sky” laws of any jurisdiction in which  Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged omission to state a  material fact required to be stated therein or necessary to make the statements therein not misleading, (ii)  any untrue statement or alleged untrue statement of a material fact contained in the Prospectus or the  omission or alleged omission to state therein any material fact necessary to make the statements made  therein, in light of the circumstances under which the statements therein were made, not misleading, (iii)  any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law,  

 

BUSINESS.28939730.5       including, without limitation, any state securities law, or any rule or regulation thereunder relating to the  offer or sale of the Registrable Securities pursuant to the Shelf Registration Statement or any New  Registration Statement or (iv) any violation by the Company of this Agreement (the matters in the foregoing  clauses (i) through (iv) being, collectively, “Violations”). The Company shall reimburse each Indemnified  Person promptly as such expenses are incurred and are due and payable, for any reasonable out-of-pocket  legal fees or other reasonable expenses incurred by them in connection with investigating or defending any  such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement  contained in this Section 6(a): (A) shall not apply to a Claim by an Indemnified Person arising out of or  based upon a Violation which occurs in reliance upon and in conformity with information furnished in  writing to the Company by the Investor or such Indemnified Person expressly for use in connection with  the preparation of the Registration Statement, any New Registration Statement, the Prospectus or any such  amendment thereof or supplement thereto, if the foregoing was timely made available by the Company; (B)  with respect to use by an Indemnified Person of any superseded prospectus, shall not inure to the benefit of  any such Person to whom the Indemnified Person asserting any such Claim sold the Registrable Securities  that are the subject thereof (or to the benefit of any other Indemnified Person) if the untrue statement or  omission of material fact contained in the superseded prospectus was corrected in the revised prospectus,  as then amended or supplemented, if such revised prospectus was timely made available by the Company  pursuant to Section 3(c) or Section 3(e), and the Indemnified Person was promptly advised in writing not  to use the incorrect prospectus prior to the use giving rise to a violation; and (C) shall not apply to amounts  paid in settlement of any Claim if such settlement is effected without the prior written consent of the  Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in full force and  effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the  transfer of the Registrable Securities by the Investor pursuant to Section 8.    (b) In connection with the Shelf Registration Statement, any New Registration  Statement or Prospectus, the Investor agrees to indemnify, hold harmless and defend, to the same extent  and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers  who signed the Shelf Registration Statement or signs any New Registration Statement, and each Person, if  any, who controls the Company within the meaning of the Securities Act or the Exchange Act (an  “Indemnified Party”), against any Claim or Indemnified Damages to which any of them may become  subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified  Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent,  that such Violation occurs in reliance upon and in conformity with written information about the Investor  set forth on Exhibit A attached hereto or updated from time to time in writing by the Investor and furnished  to the Company by the Investor expressly for inclusion in the Shelf Registration Statement or Prospectus  or any New Registration Statement; and, subject to Section 6(d), the Investor will reimburse any reasonable  out-of-pocket legal or other expenses reasonably incurred by them in connection with investigating or  defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b)  and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in  settlement of any Claim if such settlement is effected without the prior written consent of the Investor,  which consent shall not be unreasonably withheld; provided, further, however, that the Investor shall be  liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed  the net proceeds to the Investor as a result of the sale of Registrable Securities pursuant to such Registration  Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or  on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by the  Investor pursuant to Section 8.     (c) Promptly after receipt by an Indemnified Person or Indemnified Party under this  Section 6 of notice of the commencement of any action or proceeding (including any governmental action  or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect  thereof is to be made against the Company, in the case of Section 6(a), and to the Investor, in the case of  

 

BUSINESS.28939730.5       Section 6(b)  (the Company or the Investor, as the case may be, an “indemnifying party”) a written notice  of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the  extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to  assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the  Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an Indemnified  Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses to be  paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party,  the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying  party would be inappropriate due to actual or potential differing interests between such Indemnified Person  or Indemnified Party and any other party represented by such counsel in such proceeding. The Indemnified  Party or Indemnified Person shall cooperate with the indemnifying party in connection with any negotiation  or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party  all information reasonably available to the Indemnified Party or Indemnified Person which relates to such  action or claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully  apprised as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying  party shall be liable for any settlement of any action, claim or proceeding effected without its written  consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition  its consent. No indemnifying party shall, without the consent of the Indemnified Party or Indemnified  Person, consent to entry of any judgment or enter into any settlement or other compromise which does not  include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party  or Indemnified Person of a release from all liability in respect to such claim or litigation or which includes  any admission as to fault, culpability of failure to act on the part of such Indemnified Party or Indemnified  Person. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated  to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or  corporations relating to the matter for which indemnification has been made. The failure to deliver written  notice to the indemnifying party within a reasonable time of the commencement of any such action shall  not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under  this Section 6, except to the extent that the indemnifying party is materially prejudiced in its ability to  defend such action.    (d) The indemnification required by this Section 6 shall be made by periodic payments  of the amount thereof during the course of the investigation or defense, as and when bills are received or  Indemnified Damages are incurred. Any Person receiving a payment pursuant to this Section 6 which  person is later determined to not be entitled to such payment shall return such payment to the person making  it.    (e) The indemnity agreements contained herein shall be in addition to (i) any cause of  action or similar right (at law or in equity) of the Indemnified Party or Indemnified Person against the  indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to  the law.    7. CONTRIBUTION.    To the extent any indemnification by an indemnifying party is prohibited or limited by law,  the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it  would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that:  (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section  11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities who  was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities  shall be limited in amount to the net amount of proceeds received by such seller from the sale of such  Registrable Securities.  

 

BUSINESS.28939730.5         8. ASSIGNMENT OF REGISTRATION RIGHTS.    The Company shall not assign this Agreement or any rights or obligations hereunder  without the prior written consent of the Investor not to be unreasonably withheld; provided, however, that  any transaction, whether by merger, reorganization, restructuring, consolidation, financing or otherwise,  whereby the Company remains the surviving entity immediately after such transaction shall not be deemed  an assignment. The Investor may not assign its rights under this Agreement without the prior written  consent of the Company, other than to an affiliate of the Investor controlled by Jonathan Cope or Josh  Scheinfeld, in which case the assignee must agree in writing to be bound by the terms and conditions of  this Agreement.     9. AMENDMENT OF REGISTRATION RIGHTS.    No provision of this Agreement may be amended or waived by the parties from and after  the date that is one Business Day immediately preceding the initial filing of the Initial Prospectus  Supplement with the SEC. Subject to the immediately preceding sentence, no provision of this Agreement  may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other  than in a written instrument signed by the party against whom enforcement of such waiver is sought. Failure  of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in  exercising such right or remedy, shall not operate as a waiver thereof.  10. MISCELLANEOUS.    (a) Notices. Any notices, consents or other communications required or permitted to  be given under the terms of this Agreement must be in writing and will be deemed to have been delivered:  (i) upon receipt when delivered personally; (ii) upon receipt when sent by facsimile or email (provided  confirmation of transmission is mechanically or electronically generated and kept on file by the sending  party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in  each case properly addressed to the party to receive the same. The addresses for such communications shall  be:    If to the Company:    Aquestive Therapeutics, Inc.  30 Technology Drive  Warren, New Jersey 07059    With a copy to (which shall not constitute notice or service of process):    Dechert LLP  1095 Avenue of the Americas  New York, New York 10036  Telephone: 212-698-3500  Facsimile: (212) 698-3599  Email: david.rosenthal@dechert.com; anna.tomczyk@dechert.com  Attention: David S. Rosenthal  Anna Tomczyk    If to the Investor:    

 

BUSINESS.28939730.5       Lincoln Park Capital Fund, LLC  440 North Wells, Suite 410  Chicago, IL 60654    With a copy to (which shall not constitute notice or service of process):    Katten Muchin Rosenman LLP  525 W. Monroe St.   Chicago, IL 60661  Telephone: (312) 902-5493  E-mail:  mark.wood@katten.com  Attention: Mark D. Wood, Esq.    If to the Transfer Agent:    Computershare Trust Company, N.A.  480 Washington Blvd.  Jersey City, NJ 07310  Email:  matthew.wendler@computershare.com  Attention: Matthew Wendler    or at such other address, email address and/or facsimile number and/or to the attention of such other  Person as the recipient party has specified by written notice given to each other party three (3) Business  Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient  of such notice, consent or other communication, (B) mechanically or electronically generated by the  sender’s facsimile machine or email account containing the time, date, and recipient facsimile number or  email address, as applicable, or (C) provided by a nationally recognized overnight delivery service, shall  be rebuttable evidence of personal service, receipt by facsimile or email or deposit with a nationally  recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.    (b) No Waiver No failure or delay in the exercise of any power, right or privilege  hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right  or privilege preclude other or further exercise thereof or of any other right, power or privilege.    (c) Governing Law. All questions concerning the construction, validity, enforcement  and interpretation of this Agreement shall be governed by the internal laws of the State of Delaware, without  giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or  any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State  of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal  courts sitting in the State of Delaware for the adjudication of any dispute hereunder or in connection  herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives,  and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the  jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or  that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal  service of process and consents to process being served in any such suit, action or proceeding by mailing a  copy thereof to such party at the address for such notices to it under this Agreement and agrees that such  service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein  shall be deemed to limit in any way any right to serve process in any manner permitted by law. If any  provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or  unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that  

 

BUSINESS.28939730.5       jurisdiction or the validity or enforceability of any provision of this Agreement in any other  jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,  AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY  DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS  AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.    (d) Integration. This Agreement, the Purchase Agreement and the other Transaction  Documents constitute the entire understanding among the parties hereto with respect to the subject matter  hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth  or referred to herein and therein. This Agreement, the Purchase Agreement and the other Transaction  Documents supersede all other prior oral or written agreements between the Investor, the Company, their  affiliates and persons acting on their behalf with respect to the subject matter hereof and thereof.    (e) No Third Party Benefits. Subject to the requirements of Section 8, this Agreement  shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties  hereto.    (f) Headings. The headings in this Agreement are for convenience of reference and  shall not form part of, or affect the interpretation of, this Agreement.    (g) Counterparts. This Agreement may be executed in two or more identical  counterparts, all of which shall be considered one and the same agreement and shall become effective when  counterparts have been signed by each party and delivered to the other party. Signatures transmitted by  Adobe Sign, DocuSign, RightSignature, electronic mail, or other digital or electronic means will be treated  as original signatures for all purposes hereunder, each of which shall be of the same legal effect, validity,  and enforceability as a manually executed signature.      (h) Each party shall do and perform, or cause to be done and performed, all such  further acts and things, and shall execute and deliver all such other agreements, certificates, instruments  and documents as the other party may reasonably request in order to carry out the intent and accomplish  the purposes of this Agreement and the consummation of the transactions contemplated hereby. For the  purposes of this Agreement, except to the extent that the context otherwise requires: (i) when a reference is  made in this Agreement to an Article, Section, Exhibit or Schedule, such reference is to an Article or Section  of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated; (ii) headings for this Agreement  are for reference purposes only and do not affect in any way the meaning or interpretation of this  Agreement; (iii) whenever the words “include,” “includes” or “including” (or similar terms) are used in this  Agreement, they are deemed to be followed by the words “without limitation”; (iv) the words “hereof,”  “herein” and “hereunder” and words of similar import, when used in this Agreement, refer to this  Agreement as a whole and not to any particular provision of this Agreement; (v) the definitions contained  in this Agreement are applicable to the singular as well as the plural forms of such terms;; (vi) references  to a Person are also to its permitted successors and assigns; and (vii) the use of “or” is not intended to be  exclusive unless expressly indicated otherwise.     (i) The language used in this Agreement will be deemed to be the language chosen by  the parties to express their mutual intent and no rules of strict construction will be applied against any party.     (j) This Agreement is intended for the benefit of the parties hereto and their respective  permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced  by, any other Person.    [Signature Page Follows]  

 

BUSINESS.28939730.5       IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement  to be duly executed as of date first written above.      THE COMPANY:    AQUESTIVE THERAPEUTICS, INC.       By: /s/ A. Ernest Toth, Jr.  Name: A Ernest Toth, Jr.  Title: Chief Financial Officer    THE INVESTOR:     LINCOLN PARK CAPITAL FUND, LLC   BY: LINCOLN PARK CAPITAL, LLC  BY:      By: /s/ Joshua Scheinfeld  Name: Joshua Scheinfeld  Title: PresidentExhibit 4.5

 

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

 

As of April 12, 2022, Glass Houses Acquisition
Corp. (the “Company” or “we,” “us,” and “our”) had the following classes of securities
registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (1) units, each
consisting of one share of Class A common stock and one-half of one redeemable warrant (“Units”), (2) shares of Class A common
stock, $0.0001 par value (“Class A common stock”) and (3) warrants, each whole warrant exercisable for one share of Class
A common stock at an exercise price of $11.50 (“Warrants”). Our Units, Class A common stock and Warrants are listed on Nasdaq
under the symbols “GLHAU,” “GLHA” and “GLHAW,” respectively. The following description summarizes
the material terms of our registered securities. Because it is only a summary, it may not contain all the information that is important
to you.

 

Certain Terms

 

Unless otherwise stated in this Exhibit or the
context otherwise requires, references to:

 

	 	●	“public shares” are to shares of our Class A Common Stock sold as part of the units in our initial public offering (whether they were purchased in our initial public offering or thereafter in the open market);
	 	 	 
	 	●	“public stockholders” are to the holders of our public shares, including, without limitation, our initial stockholders and members of our management team to the extent our initial stockholders and/or members of our management team have purchased public shares, provided that each initial stockholder’s and member of our management team’s status as a “public stockholder” shall only exist with respect to such public shares;
	 	 	 
	 	●	“management” or our “management team” are to our executive officers and directors;
	 	 	 
	 	●	“sponsor” are to Glass Houses Sponsor LLC, a Delaware limited liability company;
	 	 	 
	 	●	“initial stockholders” are to holders of our founder shares prior to our initial public offering.
	 	 	 
	 	●	“common stock” are to our Class A common stock and our Class B common stock, collectively;
	 	 	 
	 	●	“founder shares” are to shares of our Class B common stock, 5,511,823 of which are outstanding as of April 12, 2022 and have been issued to our initial stockholders prior to our initial public offering and the shares of our Class A common stock issued upon the conversion thereof; and
	 	 	 
	 	●	“private placement warrants” are to the warrants issued to our sponsor in a private placement simultaneously with the closing of our initial public offering and the underwriter’s partial exercise of its over-allotment option.

 

General

 

Pursuant to our amended and restated certificate
of incorporation (the “Certificate of Incorporation”), our authorized capital stock consists of 400,000,000 shares of Class
A common stock, $0.0001 par value, 40,000,000 shares of Class B common stock, $0.0001 par value (“Class B common stock”),
and 1,000,000 shares of undesignated preferred stock, $0.0001 par value. The following description summarizes the material terms of our
capital stock. Because it is only a summary, it may not contain all the information that is important to you.

 

     

     

    

 

Units

 

Each Unit had an offering price of $10.00 and consists
of one whole share of Class A common stock and one-half of one Warrant. Each whole Warrant entitles the holder thereof to purchase one
share of our Class A common stock at a price of $11.50 per share, subject to adjustment as described in the registration statement on
Form S-1 (No. 333-252865) (the “Registration Statement”). Pursuant to the warrant agreement dated as of March 22, 2021, between
the Company and Continental Stock Transfer & Trust Company (the “Warrant Agreement”), a Warrant holder may exercise its
Warrants only for a whole number of shares of Class A common stock. This means that only a whole Warrant may be exercised at any given
time by a Warrant holder. No fractional Warrants will be issued 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 Class A common stock and Warrants comprising
the Units began separate trading on May 13, 2021. Holders have the option to continue to hold Units or separate their Units into the component
securities. Holders will need to have their brokers contact our transfer agent in order to separate the Units into shares of Class A common
stock and Warrants.

 

Common Stock

 

Upon the closing of our initial public offering
(including the partial exercise by the underwriter of its over-allotment option), 27,559,116 shares of our common stock were outstanding,
consisting of:

 

	 	●	22,047,293 shares of our Class A common stock underlying the Units sold in our initial public offering (including the partial exercise by the underwriter of its over-allotment option); and
	 	 	 
	 	●	5,511,823 shares of Class B common stock held by our initial stockholders.

 

Common stockholders of record are entitled to one
vote for each share held on all matters to be voted on by stockholders. Holders of the Class A common stock and holders of the Class B
common stock vote together as a single class on all matters submitted to a vote of our stockholders, except as required by law. Unless
specified in our Certificate of Incorporation or bylaws (the “Bylaws”), or as required by applicable provisions of the General
Corporation Law of Delaware, as amended (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.

 

Because the Certificate of Incorporation authorizes
the issuance of up to 400,000,000 shares of Class A common stock, if we were to enter into a business combination, we may (depending on
the terms of such a business combination) be required to increase the number of shares of Class A common stock which we are authorized
to issue at the same time as our stockholders vote on the business combination to the extent we seek stockholder approval in connection
with our business combination.

 

In accordance with Nasdaq corporate governance
requirements, we are not required to hold an annual meeting until no later than 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 an annual meeting of stockholders for the purposes
of electing directors in accordance with the 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 consummation 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 consummation of our initial business combination, they may attempt to force us to hold one by submitting
an application to the Delaware Court of Chancery in accordance with Section 211(c) of the DGCL. 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.

 

    2

     

    

 

We will provide our 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 as of two business days prior to the consummation 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 franchise
and income taxes, divided by the number of then outstanding public shares, subject to the limitations described herein. The amount in
the trust account is initially anticipated to be approximately $10.00 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 underwriter. Our sponsor,
officers and directors have entered into a letter agreement with us, pursuant to which they have agreed to waive their redemption rights
with respect to any founder shares and any public shares held by them in connection with the completion of our 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 law and we do not decide to hold a stockholder vote for business or other
legal reasons, we will, pursuant to the Certificate of Incorporation, conduct the redemptions pursuant to the tender offer rules of the
Securities and Exchange Commission (“SEC”), and file tender offer documents with the SEC prior to completing our initial business
combination. The 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 law, or we decide to obtain stockholder approval for business or other legal
reasons, we will, like many blank check companies, offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy
rules and not pursuant to the tender offer rules. If we seek stockholder approval, we will complete our initial business combination only
if a majority of the outstanding shares of common stock voted are voted in favor of the business combination. A quorum for such meeting
will consist of the holders present in person or by proxy of shares of outstanding capital stock of the company representing a majority
of the voting power of all outstanding shares of capital stock of the company entitled to vote at such meeting. However, the participation
of our sponsor, officers, directors, advisors or their affiliates in privately-negotiated transactions, if any, could result in the approval
of our business combination even if a majority of our public stockholders vote, or indicate their intention to vote, against such business
combination. For purposes of seeking approval of the majority of our outstanding shares of common stock voted, non-votes will have no
effect on the approval of our business combination once a quorum is obtained. We intend to give approximately 30 days (but not less than
10 days nor more than 60 days) prior written notice of any such meeting, if required, at which a vote shall be taken to approve our business
combination. These quorum and voting thresholds, and the voting agreements of our initial stockholders, may make it more likely that we
will consummate our initial business combination.

 

If we seek stockholder approval of our initial
business combination and we do not conduct redemptions in connection with our business combination pursuant to the tender offer rules,
the Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person
with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be
restricted from redeeming its shares with respect to more than an aggregate of 15% of the shares of common stock sold in our initial public
offering (including the partial exercise by the underwriter of its over-allotment option), which we refer to as the Excess Shares. However,
we would not be restricting our stockholders’ ability to vote all of their shares (including Excess Shares) for or against our business
combination. Our stockholders’ inability to redeem the Excess Shares will reduce their influence over our ability to complete our
business combination, and such stockholders could suffer a material loss in their investment if they sell such Excess Shares on the open
market. Additionally, such stockholders will not receive redemption distributions with respect to the Excess Shares if we complete the
business combination. And, as a result, such stockholders will continue to hold that number of shares exceeding 15% and, in order to dispose
such shares would be required to sell their stock in open market transactions, potentially at a loss.

 

If we seek stockholder approval in connection with
our business combination, our initial stockholders have agreed to vote their founder shares and any public shares purchased after our
initial public offering in favor of our initial business combination. As a result, in addition to our initial stockholders’ founder
shares, we would need 8,267,735, or 37.5% (assuming all outstanding shares are voted), or 1,377,956, or 6.25% (assuming only the minimum
number of shares representing a quorum are voted), of the public shares sold in our initial public offering (including the partial exercise
by the underwriter of its over-allotment option) to be voted in favor of a transaction 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 (subject to the limitation described in the preceding paragraph).

 

    3

     

    

 

Pursuant to the Certificate of Incorporation, if
we are unable to complete our business combination within 24 months from the closing of our initial public offering, 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 franchise and income taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then
outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the
right to receive further liquidating 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, dissolve and liquidate, 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,
officers and directors have entered into a letter agreement with us, pursuant to which they have agreed to waive their rights to liquidating
distributions from the trust account with respect to any founder shares held by them if we fail to complete our business combination within
24 months from the closing of our initial public offering. However, if our initial stockholders acquire public shares after our initial
public offering, they will be entitled to liquidating distributions from the trust account with respect to such public shares if we fail
to complete our 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 stock, if any, having preference over the common stock.
Our stockholders have no preemptive or other subscription rights. There are no sinking fund provisions applicable to the common stock,
except that we will provide our stockholders with the opportunity to redeem their public shares for cash equal to their pro rata share
of the aggregate amount then on deposit in the trust account, upon the completion of our initial business combination, subject to the
limitations described herein.

 

Founder Shares

 

The founder shares are identical to the shares
of Class A common stock included in the Units sold in our initial public offering, and holders of founder shares have the same stockholder
rights as public stockholders, except that (i) the founder 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 and any public shares held by them in connection with the completion
of our business combination and (B) to waive their rights to liquidating distributions from the trust account with respect to any founder
shares held by them if we fail to complete our business combination within 24 months from the closing of our initial public offering,
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 business combination within such time period, (iii) the founder shares are shares of our Class B common stock that will
automatically convert into shares of our Class A common stock at the time of our initial business combination, or at any time prior thereto
at the option of the holder, 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 business combination to our public stockholders for a vote, our initial
stockholders have agreed to vote any founder shares held by them and any public shares purchased after our initial public offering in
favor of our initial business combination.

 

The shares of Class B common stock will automatically
convert into shares of Class A common stock at the time of our initial business combination on a one-for-one basis (subject to adjustment
for stock splits, stock dividends, reorganizations, recapitalizations and the like), and subject to further adjustment as provided herein.
In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the
amounts offered in our initial public offering and related to the closing of the business combination, the ratio at which shares of Class
B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding
shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number
of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted
basis, 20% of the sum of the total number of all shares of common stock outstanding upon completion of our initial public offering (including
the partial exercise by the underwriter of its over-allotment option) plus all shares of Class A common stock and equity-linked securities
issued or deemed issued in connection with the business combination (excluding any shares or equity-linked securities issued, or to be
issued, to any seller in the business combination). Holders of founder shares may also elect to convert their shares of Class B common
stock into an equal number of shares of Class A common stock, subject to adjustment as provided above, at any time.

 

    4

     

    

 

With certain limited exceptions, the founder shares
are not transferable, assignable or salable (except to our officers and directors and other persons or entities affiliated with our sponsor,
each of whom will be subject to the same transfer restrictions) until the earlier of (A) one year after the completion of our initial
business combination or (B) subsequent to our initial business combination, (x) if the closing price of our Class A common stock equals
or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20
trading days within any 30-trading day period commencing at least 150 days after our initial business combination, or (y) the date on
which we complete a liquidation, merger, 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.

 

Prior to our initial business combination, only
holders of our founder shares will have the right to vote on the election of directors. Holders of our public shares will not be entitled
to vote on the election 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 the Certificate
of Incorporation may only be amended by a resolution passed by a majority of our Class B common stock. 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.

 

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. Our board of directors is not currently contemplating and does not anticipate declaring any stock
dividends in the foreseeable future. If we incur any indebtedness, our ability to declare dividends may be limited by restrictive covenants
we may agree to in connection therewith.

 

Preferred Stock

 

The Certificate of Incorporation 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 is able to, without stockholder
approval, issue preferred stock with voting and other rights that could adversely affect the voting power and other rights of the holders
of the common stock and could have anti-takeover effects. The ability of our board of directors to issue 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 preferred stock outstanding on 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 were issued or registered in our initial public offering.

 

Warrants

 

Public Stockholders’ Warrants

 

Each whole Warrant entitles the registered holder
to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment as discussed below, at any time commencing
30 days after the completion of our initial business combination, except as discussed in the immediately succeeding paragraph. Pursuant
to the Warrant Agreement, a Warrant holder may exercise its Warrants only for a whole number of shares of Class A common stock. This means
only a whole Warrant may be exercised at a given time by a Warrant holder. No fractional Warrants 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.

 

    5

     

    

 

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 or 1933, as amended (the “Securities Act”), with respect to the shares of Class A common
stock underlying the Warrants is then effective and a prospectus relating thereto is current, subject to our satisfying our obligations
described below with respect to registration, or a valid exemption from registration is available. No Warrant will be exercisable and
we will not be obligated to issue a share of Class A common stock upon exercise of a Warrant unless the 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 will have paid the full purchase price for the Unit solely
for the share of Class A common stock underlying such Unit.

 

We have agreed that as soon as practicable, but
in no event later than 20 business days after the closing of our initial business combination, we will use our commercially reasonable
efforts to file with the SEC a post-effective amendment to the Registration Statement or a new registration statement for the registration,
under the Securities Act, of the Class A common stock issuable upon exercise of the Warrants, and we will use our commercially reasonable
efforts to cause the same to become effective within 60 business days after the closing of our initial business combination, and to maintain
the effectiveness of such registration statement, and a current prospectus relating to those shares of Class A common stock until the
Warrants expire or are redeemed, as specified in the Warrant Agreement; provided that if our shares of Class A common stock are at the
time of any exercise of a Warrant not listed on a national securities exchange such that they satisfy the definition of a “covered
security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of public warrants who exercise their
Warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect,
we will not be required to file or maintain in effect a registration statement, but we will use our commercially reasonable efforts to
register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. If a registration statement
covering the shares of Class A common stock issuable upon exercise of the Warrants is not effective by the 60th day after the closing
of the initial business combination, Warrant holders may, until such time as there is an effective registration statement and during any
period when we will have failed to maintain an effective registration statement, exercise Warrants on a “cashless basis” in
accordance with Section 3(a)(9) of the Securities Act or another exemption, but we will use our commercially reasonable efforts to register
or qualify the shares under applicable blue sky laws to the extent an exemption is not available. In such event, each holder would pay
the exercise price by surrendering the Warrants for that number of shares of Class A common stock equal to the lesser of (A) the quotient
obtained by dividing (x) the product of the number of shares of Class A common stock underlying the Warrants, multiplied by the excess
of the “fair market value” (defined below) less the exercise price of the Warrants by (y) the fair market value and (B) 0.361.
The “fair market value” as used in this paragraph shall mean the volume weighted average price of the Class A common stock
for the 10 trading days ending on the trading day prior to the date on which the notice of exercise is received by the warrant agent.

 

Redemption of Warrants When the Price per Share
of Class A Common Stock Equals or Exceeds $18.00. Once the Warrants become exercisable, we may redeem the outstanding Warrants (except
as described herein with respect to the private placement warrants):

 

	 	●	in whole and not in part;
	 	 	 
	 	●	at a price of $0.01 per Warrant;
	 	 	 
	 	●	upon a minimum of 30 days’ prior written notice of redemption to each Warrant holder; and
	 	 	 
	 	●	if, and only if, the closing price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a Warrant as described under the heading “Anti-dilution Adjustments”) for any 20 trading days within a 30-trading day period ending three trading days before we send the notice of redemption to the Warrant holders.

 

    6

     

    

 

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

 

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

 

Redemption of Warrants When the Price per Share
of Class A Common Stock Equals or Exceeds $10.00. Once the Warrants become exercisable, we may redeem the outstanding Warrants (except
as described herein with respect to the private placement warrants):

 

	 	●	in whole and not in part;
	 	 	 
	 	●	at $0.10 per Warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their Warrants on a cashless basis prior to redemption and receive that number of shares determined by reference to the table below, based on the redemption date and the “fair market value” of our Class A common stock (as defined below) except as otherwise described below; and
	 	 	 
	 	●	if, and only if, the closing price of our Class A common stock equals or exceeds $10.00 per public share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a Warrant as described under the heading “Anti-dilution Adjustments”) for any 20 trading days within the 30-trading day period ending three trading days before we send the notice of redemption to the Warrant holders.

 

Beginning on the date the notice of redemption
is given until the Warrants are redeemed or exercised, holders may elect to exercise their Warrants on a cashless basis. The numbers in
the table below represent the number of shares of Class A common stock that a Warrant holder will receive upon such cashless exercise
in connection with a redemption by us pursuant to this redemption feature, based on the “fair market value” of our Class A
common stock on the corresponding redemption date (assuming holders elect to exercise their Warrants and such Warrants are not redeemed
for $0.10 per Warrant), determined for these purposes based on volume weighted average price of our Class A common stock during the 10
trading days immediately following the date on which the notice of redemption is sent to the holders of Warrants, and the number of months
that the corresponding redemption date precedes the expiration date of the Warrants, each as set forth in the table below. We will provide
our Warrant holders with the final fair market value no later than one business day after the 10-trading day period described above ends.

 

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

 

    7

     

    

 

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

 

 

	Redemption Date

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

 

The exact fair market value and redemption date
may not be set forth in the table above, in which case, if the fair market value is between two values in the table or the redemption
date is between two redemption dates in the table, the number of shares of Class A common stock to be issued for each Warrant exercised
will be determined by a straight-line interpolation between the number of shares set forth for the higher and lower fair market values
and the earlier and later redemption dates, as applicable, based on a 365 or 366-day year, as applicable. For example, if the volume weighted
average price of our Class A common stock during the 10 trading days immediately following the date on which the notice of redemption
is sent to the holders of the Warrants is $11.00 per share, and at such time there are 57 months until the expiration of the Warrants,
holders may choose to, in connection with this redemption feature, exercise their Warrants for 0.277 shares of Class A common stock for
each whole Warrant. For an example where the exact fair market value and redemption date are not as set forth in the table above, if the
volume weighted average price of our Class A common stock during the 10 trading days immediately following the date on which the notice
of redemption is sent to the holders of the Warrants is $13.50 per share, and at such time there are 38 months until the expiration of
the Warrants, holders may choose to, in connection with this redemption feature, exercise their Warrants for 0.298 shares of Class A common
stock for each whole Warrant. In no event will the Warrants be exercisable on a cashless basis in connection with this redemption feature
for more than 0.361 shares of Class A common stock per Warrant (subject to adjustment). Finally, as reflected in the table above, if the
Warrants are out of the money and about to expire, they cannot be exercised on a cashless basis in connection with a redemption by us
pursuant to this redemption feature, since they will not be exercisable for any shares of Class A common stock.

 

    8

     

    

 

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

 

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

 

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

 

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

 

Anti-Dilution Adjustments. If the number
of outstanding shares of Class A common stock is increased by a stock dividend payable in shares of Class A common stock, or by a split-up
of shares of Class A common stock or other similar event, then, on the effective date of such stock dividend, split-up or similar event,
the number of shares of Class A common stock issuable on exercise of each Warrant will be increased in proportion to such increase in
the outstanding shares of Class A common stock. A rights offering made to all or substantially all holders of Class A common stock entitling
holders to purchase shares of Class A common stock at a price less than the “historical fair market value” (as defined below)
will be deemed a 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 minus the quotient of (x) the price per share of Class A common
stock paid in such rights offering and (y) the historical fair market value. For these purposes, (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)
“historical fair market value” means the volume weighted average price of Class A common stock as reported during the 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.

 

    9

     

    

 

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 all or substantially all of
the holders of the Class A common stock on account of such shares of Class A common stock (or other securities into which the Warrants
are convertible), other than (a) as described above, (b) any cash dividends or cash distributions which, when combined on a per share
basis with all other cash dividends and cash distributions paid on the Class A common stock during the 365-day period ending on the date
of declaration of such dividend or distribution does not exceed $0.50 (as adjusted to appropriately reflect any other adjustments and
excluding cash dividends or cash distributions that resulted in an adjustment to the exercise price or to the number of shares of Class
A common stock issuable on exercise of each Warrant) but only with respect to the amount of the aggregate cash dividends or cash distributions
equal to or less than $0.50 per share, (c) to satisfy the redemption rights of the holders of Class A common stock in connection with
a proposed initial business combination, (d) to satisfy the redemption rights of the holders of Class A common stock in connection with
a stockholder vote to amend the Certificate of Incorporation (A) to modify the substance or timing of our obligation to provide holders
of our Class A common stock the right to have their shares redeemed in connection with our initial business combination or to redeem 100%
of our public shares if we do not complete our initial business combination within 24 months from the closing of our initial public offering
or (B) with respect to any other provisions relating to the rights of holders of our Class A common stock, 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 Class A
common stock is decreased by a consolidation, combination, reverse share sub-division or reclassification of Class A common stock or other
similar event, then, on the effective date of such consolidation, combination, reverse share sub-division, 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 the number of outstanding shares of Class A common stock.

 

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

 

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

 

    10

     

    

 

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 Class A common stock immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby,
the kind and amount of shares of Class A common 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 such holders were entitled to exercise
a right of election as to the kind or amount of securities, cash or other assets receivable upon such consolidation or merger, then the
kind and amount of securities, cash or other assets for which each warrant will become exercisable will be deemed to be the weighted average
of the kind and amount received per share by such holders in such consolidation or merger that affirmatively make such election, and if
a tender, exchange or redemption offer has been made to and accepted by such holders (other than a tender, exchange or redemption offer
made by the company in connection with redemption rights held by stockholders of the Company as provided for in the Certificate of Incorporation
or as a result of the redemption of shares of Class A common stock by the Company if a proposed initial business combination is presented
to the stockholders of the Company for approval) under circumstances in which, upon completion of such tender or exchange offer, the maker
thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part,
and together with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members of
any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange
Act) more than 50% of the issued and outstanding shares of Class A common stock, the holder of a Warrant will be entitled to receive the
highest amount of cash, securities or other property to which such holder would actually have been entitled as a stockholder if such Warrant
holder had exercised the Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the Class A
common stock held by such holder had been purchased pursuant to such tender or exchange offer, subject to adjustment (from and after the
consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in the Warrant Agreement.
If less than 70% of the consideration receivable by the holders of shares of Class A common stock in such a transaction is payable in
the form of shares 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.

 

The Warrants have been issued in registered form
under the Warrant Agreement. The Warrant Agreement provides that the terms of the Warrants may be amended without the consent of any holder
for the purpose of (i) curing any ambiguity or correcting any mistake, including to conform the provisions of the Warrant Agreement to
the description of the terms of the Warrants and the Warrant Agreement set forth in the Registration Statement, or defective provision,
(ii) amending the provisions relating to cash dividends on common stock as contemplated by and in accordance with the Warrant Agreement
or (iii) adding or changing any provisions with respect to matters or questions arising under the Warrant Agreement as the parties to
the Warrant Agreement may deem necessary or desirable and that the parties deem to not adversely affect the rights of the registered holders
of the Warrants, provided that the approval by the holders of at least 65% of the then-outstanding public warrants is required to make
any change that adversely affects the interests of the registered holders.

 

    11

     

    

 

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 vote for each
share held of record on all matters to be voted on by stockholders.

 

We have agreed that, subject to applicable law,
any action, proceeding or claim against us arising out of or relating in any way to the Warrant Agreement will be brought and enforced
in the courts of the State of New York or the United States District Court for the Southern District of New York, and we irrevocably submit
to such jurisdiction, which jurisdiction will be the exclusive forum for any such action, proceeding or claim. This provision applies
to claims under the Securities Act but does not apply to claims under the Exchange Act or any claim for which the federal district courts
of the United States of America are the sole and exclusive forum.

 

Private Placement Warrants

 

The private placement warrants (including the Class
A common stock issuable upon exercise of the private placement warrants) will not be transferable, assignable or saleable until 30 days
after the completion of our initial business combination (except, among other limited exceptions as described under the section of the
Registration Statement entitled “Principal Stockholders—Restrictions on Transfers of Founder Shares and Private Placement
Warrants,” to our officers and directors and other persons or entities affiliated with our sponsor) and they will not be redeemable
by us so long as they are held by our sponsor or its permitted transferees. Otherwise, the private placement warrants have terms and provisions
that are identical to those of the warrants being sold as part of the Units in our initial public offering, including as to exercise price,
exercisability and exercise period. If the private placement warrants are held by holders other than our sponsor or its permitted transferees,
the private placement warrants will be redeemable by us under all redemption scenarios and exercisable by the holders on the same basis
as the warrants included in the Units being sold in our initial public offering.

 

If holders of the private 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 excess of the “fair market value” (defined below) over the exercise price of the warrants by (y)
the fair market value. The “fair market value” means the average reported closing 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 our sponsor or
its permitted transferees is because it is not known at this time whether they will be affiliated with us following a 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 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 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 warrants at a price
of $1.00 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.

 

Our sponsor has agreed not to transfer, assign
or sell any of the private 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 that, among other limited exceptions as described
under the section of the Registration Statement entitled “Principal Stockholders — Restrictions on Transfers of Founder Shares
and Private Placement Warrants” made to our officers and directors and other persons or entities affiliated with our sponsor.

 

    12

     

    

 

Our Transfer Agent and Warrant Agent

 

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

 

The Certificate of Incorporation

 

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

 

We have opted out of Section 203 of the DGCL. However,
the Certificate of Incorporation contains similar provisions providing that we may not engage in certain “business combinations”
with any “interested stockholder” for a three-year period following the time that the stockholder became an interested stockholder,
unless:

 

	 	●	prior to such time, our board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;
	 	 	 
	 	●	upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, excluding certain shares; or
	 	 	 
	 	●	at or subsequent to that time, the business combination is approved by our board of directors and by the affirmative vote of holders of at least 662/3% of the outstanding voting stock that is not owned by the interested stockholder.

 

Generally, a “business combination”
includes a merger, asset or stock sale or certain other transactions resulting in a financial benefit to the interested stockholder. Subject
to certain exceptions, an “interested stockholder” is a person who, together with that person’s affiliates and associates,
owns, or within the previous three years owned, 15% or more of our voting stock.

 

Under certain circumstances, this provision will
make it more difficult for a person who would be an “interested stockholder” to effect various business combinations with
a corporation for a three-year period. This provision may encourage companies interested in acquiring the Company to negotiate in advance
with our board of directors because the stockholder approval requirement would be avoided if our board of directors approves either the
business combination or the transaction which results in the stockholder becoming an interested stockholder. These provisions also may
have the effect of preventing changes in our board of directors and may make it more difficult to accomplish transactions which stockholders
may otherwise deem to be in their best interests.

 

The Certificate of Incorporation provides that
our sponsor and its affiliates, any of its direct or indirect transferees of at least 15% of our outstanding common stock and any group
as to which such persons are party to, do not constitute “interested stockholders” for purposes of this provision.

 

The Certificate of Incorporation provides that
our board of directors is classified into three classes of directors. As a result, in most circumstances, a person can gain control of
our board only by successfully engaging in a proxy contest at two or more annual meetings.

 

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

 

    13

     

    

 

Exclusive Forum for Certain Lawsuits

 

The Certificate of Incorporation provides that,
unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall, to the fullest
extent permitted by law, be the sole and exclusive forum for any (1) derivative action or proceeding brought on behalf of the Company,
(2) action asserting a claim of breach of a fiduciary duty owed by any director, officer, employee or agent of the Company to the Company
or our stockholders, or any claim for aiding and abetting any such alleged breach, (3) action asserting a claim against the Company or
any director or officer of the Company arising pursuant to any provision of the DGCL or the Certificate of Incorporation or the Bylaws,
or (4) action asserting a claim against us or any director or officer of the Company governed by the internal affairs doctrine except
for, as to each of (1) through (4) above, any claim (A) as to which the Court of Chancery determines that there is an indispensable party
not subject to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction of
the Court of Chancery within ten days following such determination), (B) which is vested in the exclusive jurisdiction of a court or forum
other than the Court of Chancery, or (C) arising under the federal securities laws, including the Securities Act as to which the Court
of Chancery and the federal district court for the District of Delaware shall concurrently be the sole and exclusive forums. Notwithstanding
the foregoing, the provisions of this paragraph will not apply to suits brought to enforce any liability or duty created by the Exchange
Act or any other claim for which the federal district courts of the United States of America shall be the sole and exclusive forum. Although
we believe this provision benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits to
which it applies, the provision may have the effect of discouraging lawsuits against our directors and officers. Furthermore, the enforceability
of choice of forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and it
is possible that a court could find these types of provisions to be inapplicable or unenforceable.

 

Special Meeting of Stockholders

 

The Bylaws provide that special meetings of our
stockholders may be called only by a majority vote of our board of directors, by our Chief Executive Officer or by our Chairman.

 

Advance Notice Requirements for Stockholder Proposals and Director
Nominations

 

The 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
open 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. The 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 meeting of
such stockholders and may not be effected by written consent of the stockholders other than with respect to our Class B common stock.

 

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. The 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.

 

    14

     

    

 

Class B Common Stock Consent Right

 

For so long as any shares of Class B common stock
remain outstanding, we may not, without the prior vote or written consent of the holders of a majority of the shares of Class B common
stock then outstanding, voting separately as a single class, amend, alter or repeal any provision our 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 Class B common stock. Any action required or permitted to be taken at any meeting
of the holders of Class B common stock 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 Class B common stock 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 Class B
common stock were present and voted.

 

Securities Eligible for Future Sale

 

We have 27,559,116 shares of common stock outstanding
as of April 12, 2022. Of these shares, the 22,047,293 sold in our initial public offering (including the partial exercise by the
underwriter of its over-allotment option) are freely tradable without restriction or further registration under the Securities Act, except
for any shares purchased by one of our affiliates within the meaning of Rule 144 under the Securities Act. All of the remaining 5,511,823
shares and all 7,609,459 private placement warrants are restricted securities under Rule 144, in that they were issued in private transactions
not involving a public offering. These restricted securities are subject to registration rights as more fully described below under “—Registration
and Stockholder Rights.”

 

Rule 144

 

Pursuant to Rule 144, a person who has beneficially
owned restricted shares of our common stock or Warrants 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 twelve months (or such shorter period as we were required to
file reports) preceding the sale.

 

Persons who have beneficially owned restricted
shares of our common stock or Warrants 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, which equals 275,591 shares as of April 12, 2022; or
	 	 	 
	 	●	the average weekly reported trading volume of the common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.

 

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

 

    15

     

    

 

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;
	 	 	 
	 	●	the issuer of the securities has filed all Exchange Act reports and materials required to be filed, as applicable, during the preceding twelve months (or such shorter period that the issuer was required to file such reports and materials), other than Current Reports on Form 8-K; 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 private placement warrants, as applicable, pursuant to Rule 144 without registration one year after we
have completed our initial business combination.

 

Registration and Stockholder Rights

 

The holders of the founder shares, private placement
warrants and Warrants that may be issued upon conversion of working capital loans (and any shares of Class A common stock issuable upon
the exercise of the private placement warrants and warrants that may be issued upon conversion of working capital loans and upon conversion
of the founder shares) are entitled to registration rights pursuant to a registration rights and stockholder agreement, dated March 22,
2021, between the Company, Glass Houses Sponsor LLC and certain directors and officers of the Company (the “Registration Rights
Agreement”), 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 the majority of these securities are entitled to make up to three 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 and stockholder rights agreement provides
that we will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable
lock-up period, which occurs (i) in the case of the founder shares, on the earlier of (A) one year after the completion of our initial
business combination or (B) subsequent to our initial business combination, (x) if the closing price of our Class A common stock equals
or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20
trading days within any 30-trading day period commencing at least 150 days after our initial business combination, or (y) the date on
which we complete a liquidation, merger, 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 and (ii) in the case of
the private placement warrants and the respective Class A common stock underlying such warrants, 30 days after the completion of our initial
business combination. We will bear the expenses incurred in connection with the filing of any such registration statements.

 

In addition, pursuant to the Registration Rights
Agreement, our sponsor, upon consummation of an initial business combination, will be entitled to nominate three individuals for election
to our board of directors.

 

 

16

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