Document:

Exhibit
4.4

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES

REGISTERED
PURSUANT TO SECTION 12 OF THE

SECURITIES
EXCHANGE ACT OF 1934

 

As
of December 31, 2021, Processa Pharmaceuticals, Inc. (“we” or “our”) had one class of securities, common stock,
par value $0.001 per share (“common stock”), registered under Section 12 of the Securities Exchange Act of 1934, as amended.
The following description of our common stock is a summary and is subject to, and is qualified in its entirety by reference to, the provisions
of our amended and restated certificate of incorporation and amended and restated bylaws. You should also refer to the copies of our
amended and restated certificate of incorporation and amended and restated bylaws which have been filed with this Annual Report on Form
10-K.

 

We
have the authority to issue an aggregate of 50,000,000 shares of $0.0001 par value common stock and 1,000,000 shares of $0.0001 par value
preferred stock. Our common stock is listed on the Nasdaq Capital Market under the symbol “PCSA.” The following is a summary
of our common stock:

 

Dividend
Rights. Subject to the rights of holders of preferred stock of any series that may be issued and outstanding from time to time,
holders of our common stock are entitled to receive such dividends and other distributions as may be declared by our Board of Directors
from time to time.

 

Voting
Rights. Each outstanding share of our common stock is entitled to one vote on all matters submitted to a vote of stockholders
generally. In the event we issue one or more series of preferred or other securities in the future such preferred stock or other securities
may be given rights to vote, either together with the common stock or as a separate class on one or more types of matters. The holders
of our common stock do not have cumulative voting rights.

 

Liquidation
Rights. In the event of any liquidation, dissolution or winding up of the Company, the holders of our common stock will be entitled,
subject to any preferential or other rights of any then outstanding preferred stock, to receive all assets of the Company available for
distribution to stockholders.

 

Preemptive
Rights. As of the date hereof, the holders of our common stock have no preemptive rights in their capacities as such holders.

 

Board
of Directors. Holders of common stock do not have cumulative voting rights with respect to the election of directors. At
any meeting to elect directors by holders of our common stock, the presence, in person or by proxy, of the holders of a majority of the
voting power of shares of our capital stock then outstanding will constitute a quorum for such election. Directors may be elected by
a plurality of the votes of the shares present and entitled to vote on the election of directors, except for directors whom the holders
of any then outstanding preferred stock have the right to elect, if any.Exhibit 4.1

       

      DESCRIPTION OF SECURITIES

       

      
        Title of Class of Security:  Blended Strategies Portfolio - Class 0 Units and Class 2 Units

         

        Dividend Rights

         

      

      
        The Manager has sole discretion in determining what distributions of profits and income, if any, are made to investors.  Due to the capital appreciation investment objective
          of the Fund and the fact that Units may be redeemed monthly, the Manager does not anticipate paying dividends or making distributions to investors.

         

      

      
        Redemption Provisions

         

      

      
        The Units are not subject to any minimum holding period.  Members may redeem Units at their Net Asset Value as of each Valuation Day upon not less than three business days’
          prior written notice to the Administrator, or upon such other notice and on such other dates as the Manager may permit in its sole and absolute discretion.  The Manager may reject a partial redemption request for an amount less than $10,000 or
          that would result in an investor owning Class 0 Units with a total Net Asset Value of less than $25,000 or Class 2 Units with a total Net Asset Value of less than $25,000.  The redemption proceeds normally will be remitted within 15 business days
          after the Valuation Day, without interest for the period from the Valuation Day to the payment date.  Redemption payments will ordinarily be made in U.S. dollars, and will be remitted either by wire transfer to an account designated by the
          investor or by check posted at the investor’s risk (as specified by the investor in his written redemption notice).  The Administrator will process redemption requests which are initially received by facsimile, but no part of the redemption
          proceeds will be paid to redeeming members until the Administrator has received the original redemption request signed by the redeeming member or by an authorized signatory of the redeeming member.  Neither the Fund nor the Administrator shall be
          responsible for any mis-delivery or non-receipt of any facsimile.  Facsimiles sent to the Administrator shall only be effective when actually received by the Administrator.

         

        The Manager has the right to require the compulsory redemption of all Units held by a member for any reason in its discretion.  Compulsory redemptions will be made at the Net
          Asset Value as of the Valuation Day next following the issuance of a notice of redemption to the member.  The Manager may suspend the right of any member to redeem Units, as well as the issuance of additional Units, upon the occurrence of any of
          the following circumstances:

         

      

      	

            	(1)	
              when any exchange, board of trade or organized inter-dealer market on which a significant portion of the assets of the Fund is regularly quoted or traded is closed (other than for holidays) or trading thereon has been restricted or
                suspended;

            

       

      	

            	(2)	
              whenever, as a result of events, conditions or circumstances beyond the control or responsibility of the Fund, disposal of the assets of the Fund or other transactions in the ordinary course of the Fund’s business involving the sale,
                transfer, delivery or withdrawal of securities or Funds is not reasonably practicable without being detrimental to the interests of the Fund or the investors;

            

       

      	

            	(3)	
              if it is not reasonably practicable to determine the Net Asset Value of the Units on an accurate and timely basis; or

            

       

      

      
        
          

      

      	

            	(4)	
              if the Manager has adopted a resolution calling for the liquidation and dissolution of the Fund.

            

       

      
        The Manager may withhold payment to any person whose Units have been tendered for redemption until after any suspension has been lifted.  Notice of any suspension will be
          given to any investor who has tendered his Units for redemption and to whom full payment of the redemption proceeds has not yet been remitted.  If a redemption request is not withdrawn by an investor following notification of a suspension, the
          redemption will be completed as of the next Valuation Day following the end of the suspension on the basis of the Net Asset Value as of such Valuation Day.

         

      

      
        Voting Rights

         

      

      
        Members have no voting rights with respect to any matters pertaining to the Fund, other than the right to vote on amendments to the Company Agreement approved by the Manager
          when such a vote is required by the Company Agreement or as otherwise provided under the terms of the Company Agreement or by law.

         

      

      
        Liquidation Rights

         

      

      
        The Company Agreement provides that the Fund shall remain in existence until the year 2050, except upon prior dissolution.  Dissolution of the Fund may occur at the end of
          its term or earlier upon the election of the Manager to dissolve the Fund or the occurrence of the bankruptcy of the Manager or any event which results in the Manager (or a successor to its business) ceasing to be the Manager of the Fund or the
          date on which the Fund ceases to have more than one member.  Upon the occurrence of any such event, the Manager (or a liquidator elected by a majority in interest of the members, if the Manager is unable to perform this function) is charged with
          winding up the affairs of the Fund and liquidating its assets.  Upon the liquidation of the Fund, its assets are to be distributed:  (i) first to satisfy the debts, liabilities and obligations of the entity (other than debts to members),
          including liquidation expenses, actual or anticipated; (ii) next to repay debts owing to the members; and (iii) finally to the members proportionately in accordance with the balances in their respective Capital Accounts.  Assets may be
          distributed in kind on a pro rata basis if the Manager or liquidator determines that such a distribution would be in the interests of the members in facilitating an orderly liquidation.

         

      

      
        Restrictions on Alienability

         

      

      
        The Units are subject to restrictions on alienability.  A member may not assign or pledge its Units in whole or in part, except by operation of law, nor substitute for itself
          as a member any other person, without the prior written consent of the Manager, which may be withheld in its sole and absolute discretion.Exhibit 4.5

  

DESCRIPTION OF SECURITIES REGISTERED PURSUANT TO
SECTION 12

OF THE SECURITIES EXCHANGE ACT OF 1934

 

The following description sets
forth certain material terms and provisions of the securities Avalon Acquisition Inc. (“we,” “us,” or “our”)
that are registered under Section 12 of the Securities Act of 1934, as amended (the “Exchange Act”). The following description
of our securities is not complete and may not contain all the information you should consider before investing in our securities. This
description is summarized from, and qualified in its entirety by reference to, our amended and restated certificate of incorporation,
which is incorporated herein by reference.

 

We have three classes of securities
registered under the Exchange Act: our Class A common stock, $0.0001 par value per share; warrants to purchase shares of our Class A common
stock; and units consisting of one share of Class A common stock and three-fourths of one warrant. In addition, this Description of Securities
also contains a description of our Class B common stock, par value $0.0001 per share (“founder shares”), which are not registered
pursuant to Section 12 of the Exchange Act but are convertible into shares of Class A common stock. The description of founder shares
is necessary to understand the material terms of the Class A common stock.

 

General

 

Our amended and restated certificate
of incorporation authorizes the issuance of 100,000,000 shares of our Class A common stock and 10,000,000 shares of our Class B common
stock, as well as 1,000,000 shares of preferred stock, $0.0001 par value each.

 

Units

 

Each unit consists of one share
of our Class A common stock and three-fourths 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 herein. Pursuant to the warrant agreement,
a warrant holder may exercise its warrants only for a whole number of the shares of our company’s Class A common stock. This means
only a whole warrant may be exercised at any given time by a warrant holder.

 

Class A common stock and warrants
comprising the units began separate trading on December 3, 2021, and holders have the option to continue to hold units or separate their
units into the component securities. Additionally, the units will automatically separate into their component parts and will not be traded
after the completion of our initial business combination.

 

Common Stock

 

Stockholders of record are entitled
to one vote for each share held on all matters to be voted on by stockholders. Holders of Class A common stock and holders of Class B
common stock will vote together as a single class on all matters submitted to a vote of our stockholders except as required by law.

 

Notwithstanding the foregoing,
prior to our initial business combination, only holders of our founder shares will have the right to vote on the appointment of directors.
Holders of our Class A common stock will not be entitled to vote on the appointment of directors during such time. In addition, prior
to the completion of an initial business combination, holders of a majority of our founder shares may remove a member of the board of
directors for any reason. These provisions of our certificate of incorporation may only be amended by approval of a majority of at least
90% of our Class B common stock voting in an annual meeting.

 

Our board of directors is divided
into three classes, each of which will generally serve for a term of three years with only one class of directors being elected each year.
There is no cumulative voting with respect to the election of directors, with the result that the holders of more than 50% of the shares
voted for the election of directors can elect all of the directors.

 

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Our stockholders are entitled to
receive ratable dividends when, as, and if declared by the board of directors out of funds legally available therefor.  

 

Because our amended and restated
certificate of incorporation authorizes the issuance of up to 100,000,000 shares of Class A common stock, if we were to enter into a business
combination, we may (depending on the terms of such a business combination) be required to increase the number of shares of Class A common
stock which we are authorized to issue at the same time as our stockholders vote on the business combination to the extent we seek stockholder
approval in connection with our initial business combination.

 

In accordance with Nasdaq’s
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 Delaware General Corporation Law (“DGCL”), we are, however, required
to hold an annual meeting of stockholders for the purposes of electing directors in accordance with our bylaws, unless such election is
made by written consent in lieu of such a meeting. We may not hold an annual meeting of stockholders to elect new directors prior to the
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.

 

We will provide our public stockholders
with the opportunity to redeem all or a portion of their public shares upon the completion of our initial business combination at a per-share
price, payable in cash, equal to the aggregate amount then on deposit in the trust account calculated as of two business days prior to
the completion of our initial business combination, including interest earned on the funds held in the trust account and not previously
released to us to pay our taxes, if any (less up to $100,000 of interest to pay dissolution expenses) divided by the number of the then
outstanding public shares, subject to the limitations described herein. The per-share amount we will distribute to investors who properly
redeem their shares will not be reduced by the deferred underwriting commissions we will pay to the underwriter. The redemption rights
will include the requirement that a beneficial owner must identify itself in order to validly redeem its shares. Our sponsor and each
member of our management team have entered into letter agreements with us, pursuant to which they have agreed to waive their redemption
rights with respect to their founder shares and public shares in connection with (i) the completion of our initial business combination
and (ii) a stockholder vote to approve an amendment to our certificate of incorporation that would affect the substance or timing of our
obligation to allow redemption in connection with our initial business combination or to redeem 100% of our public shares if we have not
completed an initial business combination within the completion window. 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 our certificate
of incorporation, conduct the redemptions pursuant to the tender offer rules of the SEC and file tender offer documents with the SEC prior
to completing our initial business combination. Our amended and restated certificate of incorporation requires these tender offer documents
to contain substantially the same financial and other information about the initial business combination and the redemption rights as
is required under the SEC’s proxy rules. If, however, a stockholder approval of the transaction is required by 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,
unless otherwise required by applicable law, regulation, or stock exchange rules, we will complete our initial business combination only
if a majority of the shares of common stock voted are voted in favor of our initial business combination. However, the participation of
our sponsor, officers, directors, advisors, or their affiliates in privately-negotiated transactions (as described herein), if any, could
result in the approval of our initial business combination even if a majority of our public stockholders vote, or indicate their intention
to vote, against such initial business combination. For purposes of seeking approval of the majority of our outstanding common stock,
non-votes will have no effect on the approval of our initial business combination once a quorum is obtained.

 

     2

     

    

 

If we seek stockholder approval
of our initial business combination and we do not conduct redemptions in connection with our initial business combination pursuant to
the tender offer rules, our certificate of incorporation will provide 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 sold in our initial public
offering without our prior consent, 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 initial business combination. Our stockholders’
inability to redeem the Excess Shares will reduce their influence over our ability to complete our initial business combination, and such
stockholders could suffer a material loss in their investment if they sell such Excess Shares on the open market. Additionally, such stockholders
will not receive redemption distributions with respect to the Excess Shares if we complete our initial business combination. And, as a
result, such stockholders will continue to hold that number of shares exceeding 15% and, in order to dispose such shares would be required
to sell their shares in open market transactions, potentially at a loss.

 

If we seek stockholder approval
in connection with our initial business combination, pursuant to the terms of letter agreements entered into with us, our sponsor and
each member of our management team have agreed to vote their founder shares and any public shares purchased during or 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 8,100,428, or 39.1%, of the 20,700,000 public shares sold in our public offering to be voted in favor of an initial business
combination in order to have our initial business combination approved (assuming all outstanding shares are voted). The
other members of our management team have entered into letter agreements similar to the one entered into by our sponsor with respect
to any public shares acquired by them in or after our initial public offering. Additionally, each public stockholder may elect to redeem
its public shares irrespective of whether they vote for or against the proposed transaction.

 

Pursuant to our amended and restated
certificate of incorporation, if we have not completed an initial business combination within the completion window, as defined therein,
for a total of up to 21 months to complete a business combination we will (i) cease all operations except for the purpose of winding up;
(ii) as promptly as reasonably possible but no more than ten business days thereafter subject to lawfully available funds therefor, redeem
the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including
interest earned on the funds held in the trust account and not previously released to us to pay our taxes, if any (less up to $100,000
of interest to pay dissolution expenses) divided by the number of the then outstanding public shares, which redemption will completely
extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any),
subject to applicable law; and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining
stockholders and our board of directors, liquidate and dissolve, subject in each case to our obligations under DGCL to provide for claims
of creditors and the requirements of other applicable law. Our sponsor and members of our management team have entered into letter agreements
with us, pursuant to which they have agreed to waive their rights to liquidating distributions from the trust account with respect to
their founder shares if we do not complete an initial business combination within the completion window. However, if our sponsor or members
of our management team acquire public shares in or after our initial public offering, they will be entitled to liquidating distributions
from the trust account with respect to such public shares if we do not complete our initial business combination within the prescribed
time period.

 

In the event of a liquidation,
dissolution, or winding up of the company after a business combination, our stockholders are entitled to share ratably in all assets remaining
available for distribution to them after payment of liabilities and after provision is made for each class of shares, if any, having preference
over the common stock. Our stockholders have no preemptive or other subscription rights. There are no sinking fund provisions applicable
to the common stock, except that we will provide our public stockholders with the opportunity to redeem their public shares for cash at
a per share price equal to the aggregate amount then on deposit in the trust account, including interest earned on the funds held in the
trust account and not previously released to us to pay our taxes, if any (less up to $100,000 of interest to pay dissolution expenses)
divided by the number of the then outstanding public shares, upon the completion of our initial business combination, subject to the limitations
described herein.

 

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Founder Shares

 

The founder shares are designated
as Class B common stock and, except as described below, are identical to the shares of our Class A common stock included in the units
that were 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 letter agreements with us, pursuant to which they have agreed (A) to waive their redemption rights
with respect to their founder shares and public shares in connection with the completion of our initial business combination, (B) to waive
their redemption rights with respect to their founder shares and public shares in connection with a stockholder vote to approve an amendment
to our certificate of incorporation that would affect the substance or timing of our obligation to allow redemption in connection with
our initial business combination or to redeem 100% of our public shares if we have not completed an initial business combination within
the completion window or with respect to any other provisions relating to stockholders’ rights or pre-initial business combination
activity and (C) to waive their rights to liquidating distributions from the trust account with respect to its founder shares if we do
not complete an initial business combination within the completion window, although it will be entitled to liquidating distributions from
the trust account with respect to any public shares it holds if we do not complete our initial business combination within such time period,
(iii) the founder shares are automatically convertible into Class A common stock on the first business day following the completion of
our initial business combination as described herein and in our certificate of incorporation, and (iv) prior to the completion of our
initial business combination, only our founder shares will have the right to vote on the election of our directors. If we submit our initial
business combination to our public stockholders for a vote, our initial stockholders and each member of our management team have agreed
to vote their founder shares and any public shares purchased during or after our initial public offering in favor of our initial business
combination.

 

The founder shares will automatically
convert into shares of our Class A common stock on the first business day following the completion of our initial business combination
at a ratio such that the number of shares of our Class A common stock issuable upon conversion of all founder shares will equal, in the
aggregate, on an as-converted basis, 25% of the sum    of (i) the total number of shares of our common stock issued and
outstanding upon completion of our initial public offering, plus (ii) the sum of (a) all shares of our common stock issued or deemed issued
or issuable upon conversion or exercise of any equity-linked securities or deemed issued by our company in connection with or in relation
to the completion of the initial business combination, excluding (1) any shares of our Class A common stock or equity-linked securities
exercisable for or convertible into shares of our Class A common stock issued, or to be issued, to any seller in the initial business
combination and any (2) private placement warrants issued to our sponsor or any of its affiliates upon conversion of working capital loans
minus (b) the number of public shares redeemed by public stockholders in connection with our initial business combination. In no event
will the shares of our Class B common stock convert into shares of our Class A common stock at a rate of less than one to one.

 

Except as described herein, our
sponsor and our directors and executive officers have agreed not to transfer, assign or sell any of their founder shares until (a) one
year after the completion of our initial business combination, or (b) the date on which we complete a liquidation, merger, capital stock
exchange or other similar transaction after our initial business combination that results in all of our stockholders having the right
to exchange their shares of our Class A common stock for cash, securities or other property. Any permitted transferees will be subject
to the same restrictions and other agreements of our initial stockholders with respect to any founder shares. We refer to such transfer
restrictions as the lock-up. Notwithstanding the foregoing, if the last reported sale price of the shares of our Class A common stock
equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations, and other
similar transactions) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business
combination, the converted Class A common stock will be released from the lock-up.

 

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

 

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Preferred Stock

 

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

 

Warrants

 

Public Stockholders’ Warrants

 

Each whole warrant entitles the
registered holder to purchase one share of our Class A common stock at a price of $11.50 per share, subject to adjustment as discussed
below, at any time commencing on the later of one year from the closing of our initial public offering and 30 days after the completion
of our initial business combination, provided in each case that we have an effective registration statement under the Securities Act covering
the shares of the Class A common stock issuable upon exercise of the warrants and a current prospectus relating to them is available (or
we permit holders to exercise their warrants on a cashless basis under the circumstances specified in the warrant agreement) and such
shares are registered, qualified or exempt from registration under the securities, or blue sky, laws of the state of residence of the
holder. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of shares of our Class A
common stock. This means only a whole warrant may be exercised at a given time by a warrant holder. No fractional warrants will be issued
upon separation of the units and only whole warrants will trade. Accordingly, unless you purchase at least two units, you will not be
able to receive or trade a whole warrant. The warrants will expire five years after the completion of our initial business combination,
at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.

 

We are not obligated to deliver
any Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration
statement under the Securities Act with respect to the shares of our 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, including as a result of a notice of redemption. No warrant will be exercisable and we
will not be obligated to issue a share of our Class A common stock upon exercise of a warrant unless the share of our 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.

 

We have agreed that as soon as
practicable, but in no event later than twenty business days after the closing of our initial business combination, we will use our commercially
reasonable efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the shares of our
Class A common stock issuable upon exercise of the warrants. We will use our commercially reasonable efforts to cause the same to become
effective within 60 business days following the closing of our initial business combination and to maintain the effectiveness of such
registration statement, and a current prospectus relating thereto, until the expiration or redemption of the warrants in accordance with
the provisions of the warrant agreement. If a registration statement covering the issuance of the shares of our Class A common stock issuable
upon exercise of the warrants is not effective by the 60th business 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. In addition, if shares of our 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 our 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 elect to do so, we will not be required to
file or maintain in effect a registration statement, but we will use our best 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 each
such warrant for that number of shares of our Class A common stock equal to the lesser of (A) the quotient obtained by dividing (x) the
product of the number of shares of our Class A common stock underlying the warrants, multiplied the excess of the “fair market value”
less the exercise price of the warrants by (y) the fair market value and (B) 0.361. The “fair market value” shall mean the
volume-weighted average price of the shares of our 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.

 

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Redemption of Warrants When the Price per Share
of Our 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 not less than 30
days prior written notice of redemption to each warrant holder; and

 

●            if, and only if, the
last reported sale price of the shares of our Class A common stock for any 20 trading days within a 30-trading day period ending three
business days before we send to the notice of redemption to the warrant holders (which we refer to as the “Reference Value”)
equals or exceeds $18.00 per share (as adjusted for anti-dilution adjustments to the number of shares issuable upon exercise or the exercise
price of a warrant).

 

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. However, we will not redeem the warrants unless an effective registration statement under
the Securities Act covering the shares of our Class A common stock issuable upon exercise of the warrants is effective and a current prospectus
relating to those shares of our Class A common stock is available throughout the 30-day redemption period.

 

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. Any such exercise would not be done
on a “cashless” basis and would require the exercising warrant holder to pay the exercise price for each warrant being exercised.
However, the price of the shares of our Class A common stock may fall below the $18.00 redemption trigger price (as adjusted for anti-dilution
adjustments to the number of shares issuable upon exercise or the exercise price of a warrant) 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 Our Class A Common Stock Equals or Exceeds $10.00

 

Once the warrants become exercisable,
we may redeem the outstanding warrants:

 

●            in whole and not in
part;

 

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

 

●            if, and only if, the
Reference Value equals or exceeds $10.00 per share (as adjusted for anti-dilution adjustments to the number of shares issuable upon exercise
or the exercise price of a warrant); and

 

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

 

     6

     

    

  

During the period beginning on
the date the notice of redemption is given, holders may elect to exercise their warrants on a cashless basis. The numbers in the table
below represent the number of shares of our 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 based on volume-weighted average price of our Class A common stock as reported 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 our Class A common stock shall include a security other than shares of our Class A common stock into which
the shares of our 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 our Class A common
stock to be issued upon exercise of the warrants if we are not the surviving entity following our initial business combination.

 

The stock 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 the warrant is adjusted. If the number of shares issuable upon exercise of a warrant is adjusted, the adjusted stock
prices in the column headings will equal the stock 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 anti-dilution adjustment, the adjusted stock prices in the column headings will equal the unadjusted
stock price multiplied by a fraction, the numerator of which is the higher of the Market Value and the Newly Issued Price 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 stock prices in the column headings will equal the unadjusted stock price less the decrease in the exercise price
of a warrant pursuant to such exercise price adjustment.

 

	Redemption
    Date (period to expiration of warrants)	 	Fair
    Market Value of Our Class A Common stock	 
	 	 	≤$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.TM348	 	 	 	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	 

  

     7

     

    

 

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 our 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 as reported 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 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 as reported 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
Class A common stock for each whole warrant. In no event will the warrants be exercisable in connection with this redemption feature for
more than 0.361 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 Class A common stock.

 

This redemption feature differs
from the typical warrant redemption features used in many other blank check offerings, which typically only provide for a redemption of
warrants for cash (other than the private placement warrants) when the trading price for the shares of our Class A common stock exceeds
$18.00 per share for a specified period of time. This redemption feature is structured to allow for all of the outstanding warrants to
be redeemed when the shares of our Class A common stock are trading at or above $10.00 per share, which may be at a time when the trading
price of our shares of 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 Our 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 as of the date of our initial public offering.
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 shares of our Class A common stock are trading at a price starting at $10.00, which is below the exercise price
of $11.50, because it will provide certainty with respect to our capital structure and cash position while providing warrant holders with
the opportunity to exercise their warrants on a cashless basis for the applicable number of shares. If we choose to redeem the warrants
when the shares of our Class A common stock are trading at a price below the exercise price of the warrants, this could result in the
warrant holders receiving fewer Class A common stock than they would have received if they had chosen to wait to exercise their warrants
for Class A common stock if and when such shares of Class A common stock were trading at a price higher than the exercise price of $11.50.

 

     8

     

    

 

No fractional shares of our 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 our 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 our Class A common stock pursuant to the
warrant agreement (for instance, if we are not the surviving company in our initial business combination), the warrants may be exercised
for such security. At such time as the warrants become exercisable for a security other than the shares of our Class A common stock, our
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.

 

Maximum Percentage 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 4.9% or 9.8% (as specified by the holder) of the shares of our Class A common stock
issued and outstanding immediately after giving effect to such exercise.

 

Anti-dilution Adjustments 

 

If the number of outstanding shares
of our Class A common stock is increased by a stock capitalization or stock dividend payable in shares of our Class A common stock, or
by a split-up of common stock or other similar event, then, on the effective date of such stock capitalization or stock dividend, split-up
or similar event, the number of shares of our Class A common stock issuable on exercise of each warrant will be increased in proportion
to such increase in the outstanding shares of common stock. A rights offering to holders of common stock entitling holders to purchase
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 our Class A common stock equal to the product of (i) the number of shares of our 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 our 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 shares of our 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 shares of our 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 our Class A common stock trade on the
applicable exchange or in the applicable market, regular way, without the right to receive such rights.

 

In addition, if we, at any time
while the warrants are outstanding and unexpired, pay a dividend or make a distribution in cash, securities or other assets to the holders
of shares of our Class A common stock on account of such 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 shares of our 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 our 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 our Class A common stock in connection with
a proposed initial business combination, (d) to satisfy the redemption rights of the holders of our Class A common stock in connection
with a stockholder vote to amend our certificate of incorporation (A) to modify the substance or timing of our obligation to allow redemption
in connection with our initial business combination or to redeem 100% of our public shares if we do not complete our initial business
combination within the completion window, or (B) with respect to any other provision relating to stockholders’ rights or pre-initial
business combination activity, or (e) in connection with the redemption of our public shares upon our failure to complete our initial
business combination, then the warrant exercise price will be decreased, effective immediately after the effective date of such event,
by the amount of cash and/or the fair market value of any securities or other assets paid on each share of our Class A common stock in
respect of such event.

 

     9

     

    

  

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

 

In addition, if (x) we issue additional
shares of our 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 completion
of our initial business combination (net of redemptions), and (z) the volume-weighted average trading price of our Class A common stock
during the 20 trading day period starting on the trading day prior to the day on which we complete 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 $10.00 and $18.00 per share redemption trigger
prices described under “Redemption of Warrants When the Price per Share of Our Class A Common Stock Equals or Exceeds $18.00”
and “Redemption of Warrants When the Price per Share of Our Class A Common Stock Equals or Exceeds $10.00” will be adjusted
(to the nearest cent) to be equal to 100% and 180% of the higher of the Market Value and the Newly Issued Price, respectively.

 

In case of any reclassification
or reorganization of the outstanding Class A common stock (other than those described above or that solely affects the par value of such
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
Class A common stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of us
as an entirety or substantially as an entirety in connection with which we are dissolved, the holders of the warrants will thereafter
have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the warrants and in lieu of the
shares of our Class A common stock immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby,
the kind and amount of our 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 company’s
certificate of incorporation or as a result of the redemption 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 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.

 

     10

     

    

 

Additionally, if less than 70%
of the consideration receivable by the holders of our Class A common stock in such a transaction is payable in the form of our 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 are issued in registered
form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant agent, and us. The warrant agreement
provides that the terms of the warrants may be amended without the consent of any holder to cure any ambiguity or correct any defective
provision, but requires the approval by the holders of at least 50% of the then-outstanding public warrants to make any change that the
parties deem adversely affects the interests of the registered holders.

 

The warrants may be exercised upon
surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant agent, with the exercise form on
the reverse side of the warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price (or
on a cashless basis, if applicable), by certified or official bank check payable to us, for the number of warrants being exercised. The
warrant holders do not have the rights or privileges of holders of common stock and any voting rights until they exercise their warrants
and receive Class A common stock. After the issuance of our 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.

 

Private Placement Warrants 

 

The private placement warrants
(including the shares of our Class A common stock issuable upon exercise of the private placement warrants) will not be transferable,
assignable, or salable until the completion of our initial business combination (except pursuant to limited exceptions, to our officers
and directors and other persons or entities affiliated with the initial purchasers of the private placement warrants) and they will not
be redeemable by us so long as they are held by our sponsor or their permitted transferees (except as otherwise set forth herein). Our
sponsor, or its permitted transferees, has the option to exercise the private placement warrants on a cashless basis and have certain
registration rights. Except as described below, 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. 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 in 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 his, her, or its warrants for that
number of shares of our Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of our
Class A common stock underlying the warrants, multiplied by the excess of the “historical fair market value” (defined below)
over the exercise price of the warrants by (y) the historical fair market value. For these purposes, the “historical fair market
value” shall mean the average last reported sale price of the shares of our 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 initial stockholders and their 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 restrict 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 exercise their warrants and sell the shares of our Class A common
stock received upon such exercise freely in the open market in order to recoup the cost of such exercise, the insiders could be significantly
restricted from selling such securities. As a result, we believe that allowing the holders to exercise such warrants on a cashless basis
is appropriate.

 

     11

     

    

 

In order to fund working capital deficiencies or 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 loan us funds as may be required, although they are under no obligation to advance funds or invest in us.
Up to $1,500,000 of such loans may be convertible into warrants of the post business combination entity at a price of $1.00 per warrant
at the option of the lender. Such warrants would be identical to the private placement warrants.

 

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 condition
subsequent to completion of a business combination. The payment of any cash dividends subsequent to a business combination will be within
the discretion of our board of directors at such time. If we incur any indebtedness, our ability to declare dividends may be limited by
restrictive covenants we may agree to in connection therewith.

 

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 claims and losses due to any gross negligence or intentional misconduct of the indemnified person or entity.

 

Amended and Restated Certificate of Incorporation 

 

Our amended and restated certificate
of incorporation contains certain requirements and restrictions that will apply to us until the completion of our initial business combination.
These provisions cannot be amended without the approval of the holders of 50% of our common stock. Our initial stockholders, who, as of
the date of this report, collectively beneficially own 20% of our common stock, will participate in any vote to amend our amended and
restated certificate of incorporation and will have the discretion to vote in any manner they choose. Specifically, our certificate of
incorporation provides, inter alia, as follows:

 

	 	●	If we have not completed an initial business combination within the completion window, we will (i) cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible but no more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest earned on the funds held in the trust account and not previously released to us to pay our taxes, if any (less up to $100,000 of interest to pay dissolution expenses), divided by the number of the then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, liquidate and dissolve, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law;
	 	●	Prior to or in connection with our initial business combination, we may not issue additional securities that would entitle the holders thereof to (i) receive funds from the trust account or (ii) vote on our initial business combination or on any other proposal presented to stockholders prior to or in connection with the completion of an initial business combination;
	 	●	Although we do not intend to enter into a business combination with a target business that is affiliated with our sponsor, our directors, or our executive officers, we are not prohibited from doing so. In the event we enter into such a transaction, we, or a committee of independent directors, will obtain an opinion from an independent investment banking firm which is a member of FINRA or from an independent accounting firm that such a business combination is fair to our company from a financial point of view;
	 	●	If a stockholder vote on our initial business combination is not required by law and we do not decide to hold a stockholder vote for business or other legal reasons, we will offer to redeem our public shares pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, and will file tender offer documents with the SEC prior to completing our initial business combination which contain substantially the same financial and other information about our initial business combination and the redemption rights as is required under Regulation 14A of the Exchange Act;

 

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	 	●	Our initial business combination must occur with one or more target businesses that together have an aggregate fair market value of at least 80% of the net assets held in the trust account (net of taxes payable and excluding the amount of any deferred underwriting discounts) at the time of the Company to enter into the initial business combination;
	 	●	If our stockholders approve an amendment to our certificate of incorporation that would affect the substance or timing of our obligation to allow redemption in connection with our initial business combination or to redeem 100% of our public shares if we do not complete an initial business combination within the completion window, or with respect to any other provisions relating to stockholders’ rights or pre-initial business combination activity, we will provide our public stockholders with the opportunity to redeem all or a portion of their Class A common stock upon such approval at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest earned on the funds held in the trust account and not previously released to us to pay our taxes, if any (less up to $100,000 of interest to pay dissolution expenses) divided by the number of the then outstanding public shares, subject to the limitations described herein; and
	 	●	We will not effectuate our initial business combination with another blank check company or a similar company with nominal operations.

 

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

 

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

 

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

 

	 	●	a stockholder who owns 15% or more of our outstanding voting stock (otherwise known as an “interested stockholder”);
	 	●	an affiliate of an interested stockholder; or
	 	●	an associate of an interested stockholder, for three years following the date that the stockholder became an interested stockholder.

 

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

 

	 	●	our board of directors approves the transaction that made the stockholder an “interested stockholder,” prior to the date of the transaction;
	 	●	after the completion of the transaction that resulted in the stockholder becoming an interested stockholder, that stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, other than statutorily excluded shares of common stock; or
	 	●	on or subsequent to the date of the transaction, the initial business combination is approved by our board of directors and authorized at a meeting of our stockholders, and not by written consent, by an affirmative vote of at least two-thirds of the outstanding voting stock not owned by the interested stockholder.

 

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Our amended and restated 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.

 

Registration Rights 

 

The holders of the (i) founder
shares, which were issued in a private placement prior to the closing of our initial public offering, (ii) private placement warrants,
which were issued in a private placement simultaneously with the closing of our initial public offering and the shares of Class A common
stock underlying such private placement warrants, and (iii) private placement warrants that may be issued upon conversion of working capital
loans, which will be issued in a private placement simultaneously with the closing of the initial business combination, will have registration
rights to require us to register a sale of any of our securities held by them pursuant to a registration rights agreement. The holders
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 the
completion of our initial business combination. We will bear the expenses incurred in connection with the filing of any such registration
statements.

 

Listing of Securities 

 

Our units are listed on Nasdaq
under the symbol “AVACU.” The Class A common stock and warrants are listed on Nasdaq under the symbols “AVAC”
and “AVACW,” respectively.

 

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