Document:

Exhibit 10.8

 

THE
SECURITIES DESCRIBED HEREIN HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR ANY
OTHER JURISDICTION. THERE ARE FURTHER RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN.

 

THE
PURCHASE OF THE SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE
LOSS OF THEIR ENTIRE INVESTMENT.

 

SUBSCRIPTION
AGREEMENT

 

This
Subscription Agreement (this “Agreement”) is entered into as of February [__], 2021 between Power & Digital
Infrastructure Acquisition Corp., a Delaware corporation (the “Company”), XPDI Sponsor LLC, a Delaware limited
liability company (the “Sponsor”) and [BlackRock Credit Alpha Master Fund L.P./HC NCBR Fund/The Obsidian Master
Fund]1 (the “Purchaser”).

 

RECITALS

 

WHEREAS,
the Company was incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase,
recapitalization, reorganization or similar business combination with one or more businesses (a “Business Combination”);

 

WHEREAS,
the Company has filed with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement
on Form S-1 (the “Registration Statement”) for its initial public offering (“IPO”)
of units (the “Public Units”), at a price of $10.00 per Public Unit, each Public Unit comprised of one share
of the Company’s Class A common stock, par value $0.0001 per share (“Class A Common Stock”, and the shares
of Class A Common Stock included in the Public Units, the “Public Shares”), and one-third of one redeemable
warrant, where each whole warrant is initially exercisable to purchase one share of Class A Common Stock at an exercise price
of $11.50 per share, subject to adjustment (the “Warrants”, and the Warrants included in the Public Units,
the “Public Warrants”);

 

WHEREAS,
proceeds from the IPO and the sale of the Private Placement Warrants (as defined below) in an aggregate amount equal to the aggregate
gross proceeds from the IPO will be deposited into a trust account for the benefit of the holders of the Public Shares (the “Trust
Account”), as described in the Registration Statement;

 

WHEREAS,
following the closing of the IPO (the “IPO Closing”), the Company will seek to identify and consummate a Business
Combination;

 

WHEREAS,
in connection with the IPO, the Sponsor and the Purchaser will purchase, in a private placement that will close simultaneously
with the IPO Closing, warrants which are identical to the Public Warrants except that they will be non-redeemable (except under
certain limited circumstances) and exercisable on a cashless basis so long as they are held by the Sponsor, the Purchaser or their
respective permitted transferees (the “Private Placement Warrants”), for a purchase price of $1.50 per Private
Placement Warrant;

  

WHEREAS,
the parties wish to enter into this Agreement, pursuant to which the Purchaser shall subscribe for and purchase (i) from the Sponsor, shares
of Class B common stock, par value $0.0001 per share, of the Company (“Class B Common Stock” and collectively
with the shares of Class A Common Stock, the “Common Stock”) to be issued prior to the IPO (“Founder
Shares”) and (ii) from the Company, Private Placement Warrants (together with the Founder Shares, the “Subscribed
Securities”);

 

WHEREAS,
the Company and the Sponsor have entered into or intend to concurrently with this Agreement enter into agreements (collectively,
the “Subscription Agreements”) in the form of this Agreement with certain affiliates of the Purchaser (together
with the Purchaser, the “Subscribing Parties”) for the purchase of Founder Shares and Private Placement Warrants
set forth therein; and

 

 

		1	NTD.
One agreement for each BlackRock fund is contemplated.

 

     

     

    

 

WHEREAS,
the Company, the Sponsor and the Subscribing Parties intend for the purchase of Founder Shares and Private Placement Warrants
as set forth herein to be made pursuant to Section 4(a)(1) and Section 4(a)(2) of the Securities Act of 1933, as amended (the
“Securities Act”), respectively.

  

NOW,
THEREFORE, in consideration of the premises, representations, warranties and the mutual covenants contained in this Agreement,
and for other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties
hereto agree as follows:

 

1. Sale
and Purchase.

 

(a) Securities.

 

(i)  Subject
to the terms and conditions hereof, the Purchaser hereby irrevocably subscribes for and agrees to purchase from the Company, and
the Company agrees to issue and sell to the Purchaser, the number of Private Placement Warrants set forth on Schedule A hereto
for the aggregate purchase price set forth on Schedule A hereto (the “Initial Warrant Purchase Price”).

 

(ii)  On
the date of the Business Combination Closing (as defined below), the Purchaser shall purchase from the Sponsor, and the Sponsor
shall transfer and sell to the Purchaser, the number of Founder Shares set forth on Schedule A hereto for the aggregate
purchase price set forth on Schedule A hereto, by wire transfer of immediately available funds or other means approved
by the Sponsor. If the Business Combination Closing has not occurred by the date that is 24 months from the IPO Closing or any
stockholder-approved extension period, then no purchase of Founder Shares shall occur pursuant to this Section 1(a)(ii).

 

(iii)  The
Purchaser acknowledges that the Subscribed Securities, and any securities of the Company that may be distributed to the Purchaser
on account of the Subscribed Securities (collectively, the “Securities”), will be subject to restrictions on
transfer as set forth in this Agreement.

 

(iv)  The
Company shall notify the Purchaser in writing of the anticipated date of the effectiveness of the Registration Statement (the
“Effective Date”) at least three (3) Business Days (as defined below) prior to the Effective Date, and
the Purchaser shall remit the Initial Warrant Purchase Price to the Company’s transfer agent (to be held in escrow pending
the IPO Closing), by wire transfer of immediately available funds or other means approved by the Company, on the date that is
one (1) Business Day prior to the Effective Date, or such other date as the Company and the Purchaser may agree upon in writing;
provided, however, that if the actual number of Public Units offered and sold in the IPO is less than 20,000,000 or greater
than 60,000,000, then the Purchaser shall not be obligated to remit the Initial Warrant Purchase Price as set forth in Section
1(a)(i) and any of the Purchaser, the Company or the Sponsor may in its sole discretion terminate this Agreement which shall
be of no further force or effect. As used herein, “Business Day” means any day, other than a Saturday or a
Sunday, that is neither a legal holiday nor a day on which banking institutions are generally authorized or required by law or
regulation to close in the City of New York, New York. If the IPO Closing has not occurred by the date that is seven (7) Business
Days after the date on which the Purchaser remitted the Initial Warrant Purchase Price to the Company’s transfer agent,
then, unless the Purchaser otherwise agrees in writing, the Company will promptly cause its transfer agent to return such amounts
to the Purchaser. If the IPO Closing has not occurred by May 30, 2021, this Agreement shall terminate and be of no further force
or effect.

    	 	2	 

     

    

 

(v)  In
the event that the underwriters’ over-allotment option in connection with the IPO (the “Over-allotment Option”)
is exercised, the Purchaser agrees to purchase additional Founder Shares and Private Placement Warrants as indicated on Schedule
A at a price per share and price per warrant set forth on Schedule A. The Company shall notify the Purchaser in writing
of the anticipated date of each closing of the exercise of the Over-allotment Option, if any (each, an “Over-allotment
Closing”) at least three (3) Business Days prior to such Over-allotment Closing, and the Purchaser shall pay the purchase
price for the Private Placement Warrants to be purchased in connection with such Over-allotment Closing by wire transfer of immediately
available funds or other means approved by the Company on that date that is one (1) Business Day prior to such Over-allotment
Closing (to be held in escrow pending such Over-allotment Closing), or such other date as the Company and the Purchaser may agree
upon in writing. If the Over-allotment Closing has not occurred by the date that is seven (7) Business Days after the date
on which the Purchaser remitted the purchase price for the Private Placement Warrants to be purchased in connection with such
Over-allotment Closing, then, unless the Purchaser otherwise agrees in writing, the Company will promptly cause its transfer agent
to return such amounts to the Purchaser. The additional Founder Shares shall be purchased on the date of the Business Combination
Closing.

 

(vi)  On
the date of the IPO Closing, the Company shall issue to the Purchaser the number of Private Placement Warrants set forth on Schedule
A hereto. On the date of each Over-allotment Closing, if any, the Company shall issue to Purchaser the number of Private
Placement Warrants as set forth on Schedule A.

 

(b)  Closing
Conditions. The Purchaser’s obligation to purchase the Subscribed Securities and the Sponsor’s and the Company’s
obligation to sell the Subscribed Securities to the Purchaser is conditioned upon satisfaction of the following conditions precedent
(any or all of which may be waived by the Company, the Sponsor and the Purchaser in its sole discretion with respect to the other
parties’ conditions):

 

		(i)	On
                                         the IPO Closing, an Over-allotment Closing or the Business Combination Closing, as applicable,
                                         no legal, administrative or regulatory action, suit or proceeding shall be pending which
                                         seeks to restrain or prohibit the transactions contemplated by this Agreement;

 

		(ii)	The
                                         representations and warranties of the Company, the Sponsor and the Purchaser, contained
                                         in this Agreement shall have been true and correct on the date of this Agreement and
                                         shall be true and correct on the IPO Closing, an Over-allotment Closing or the Business
                                         Combination Closing, as applicable, as if made on the date of such closing; and

 

		(iii)	In
                                         the case of the Company and the Sponsor, each Subscribing Party other than the Purchaser
                                         shall have on the IPO Closing, an Over-allotment Closing or the Business Combination
                                         Closing, as applicable, concurrently consummated its subscription under its Subscription
                                         Agreement.

 

(c) Delivery
of Securities.

 

(i)  The
Company shall register the Purchaser as the owner of the Subscribed Securities with the Company’s transfer agent by book
entry upon the purchase thereof (provided that prior to the Company’s appointment of a transfer agent it shall register
the Purchaser as the owner of such securities in the Company’s stock ledger upon the purchase thereof).

 

(ii)  Each
register and book entry for the Securities shall contain a notation, and each certificate (if any) evidencing the Securities shall
be stamped or otherwise imprinted with a legend, in substantially the following form:

 

    	 	3	 

     

    

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH ACT AND LAWS.

 

THE
SALE, PLEDGE, HYPOTHECATION, OR TRANSFER OF THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN
SUBSCRIPTION AGREEMENT BY AND AMONG THE HOLDER AND THE OTHER PARTIES THERETO. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON
WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.”

 

(d)  Legend
Removal. Following the expiration of the transfer restrictions set forth in Section 6(a), if the Securities
are eligible to be sold without restriction under, and without the Company being in compliance with the current public information
requirements of, Rule 144 under the Securities Act, or if they are registered for resale under the Securities Act pursuant
to a shelf registration statement, then at the Purchaser’s written request, the Company will use its best efforts to cause
the Company’s transfer agent to remove the legend set forth in Section 1(c)(ii), subject to compliance by the
Purchaser with the reasonable and customary procedures for such removal required by the Company or its transfer agent. In connection
therewith, if required by the Company’s transfer agent, the Company will promptly cause an opinion of counsel to be delivered
to and maintained with its transfer agent, together with any other authorizations, certificates and directions required by the
transfer agent that authorize and direct the transfer agent to issue such Securities without any such legend.

 

(e) Registration
Rights. On the Effective Date, the Company shall enter into a Registration Rights Agreement (the “Registration Rights
Agreement”) with the Sponsor, the Subscribing Parties and certain other parties thereto, in substantially the form provided
to the Purchaser prior to the date hereof. The Registration Rights Agreement shall provide the Purchaser with registration rights
with respect to the Subscribed Securities that are no less favorable to the Purchaser than the registration rights of the Sponsor
set forth therein.

 

2. Potential
Reductions.

 

(a)  If,
as of the date of the vote by the Company’s stockholders to approve the Business Combination or the Business Day immediately
prior to the scheduled closing of the Business Combination, either (A) the Purchaser, the Subscribing Parties and their affiliates
do not beneficially own or hold, directly or indirectly, an aggregate of at least 9.9% of the Public Shares (the “Anchor
Threshold”) or (B) the Purchaser redeems all or a portion of its Public Shares in connection with the Business Combination
that results in the Purchaser, the Subscribing Parties and their affiliates collectively owning less than the Anchor Threshold,
then the number of Founder Shares that the Purchaser may purchase pursuant to Section 1(a)(ii) shall be reduced pro rata
by a fraction, the numerator of which shall equal the Anchor Threshold less the number of Public Shares held by the Purchaser
after giving effect to any redemptions of the Public Shares by the Purchaser, the Subscribing Parties and their affiliates, and
the denominator shall equal the Anchor Threshold (the “Ownership Reduction”); provided, however, that in no
event shall the Ownership Reduction reduce the number of Founder Shares that the Purchaser may purchase pursuant to Section
1(a)(ii) by more than 75%. For the avoidance of doubt, in calculating the number of Public Shares (if any) which the Purchaser
beneficially owns or holds, directly or indirectly, for purposes of determining the number of Public Shares owned, no Public Shares
that are beneficially owned by any other Subscribing Party shall be counted (e.g., no Public Shares shall be double counted among
Subscribing Parties). By way of example and without limiting the foregoing, in the event the Purchaser, the Subscribing Parties
and their affiliates collectively own 50% or 0%, respectively, of the Anchor Threshold (after giving effect to any redemptions
of their Public Shares), the number of Founder Shares that the Purchaser may purchase pursuant to Section 1(a)(ii) shall
be reduced by 50% or 75%, respectively. For the avoidance of doubt, no Ownership Reduction shall result in the Purchaser having
to forfeit or transfer any Private Placement Warrants.

 

(b)  The
Purchaser agrees that if, in order to facilitate a Business Combination, the Sponsor decides to forfeit, transfer to a third person,
exchange, subject to transfer, vesting or conditional forfeiture provisions or amend the terms of all or any portion of the Founder
Shares or to enter into any other arrangements with respect to the Founder Shares (including, without limitation, a transfer of
the Sponsor’s membership interests representing an interest in any of the foregoing), including voting in favor of any amendment
to the terms of the Founder Shares (each, a “Change in Investment”), such Change in Investment shall apply
pro rata to the Purchaser and the Sponsor based on the relative number of Founder Shares to be purchased or held by each on the
Business Combination Closing; provided, however that in no event shall such Change in Investment reduce the Founder Shares that
the Purchaser may purchase pursuant to Section 1(a)(ii) by more than 75%. By way of example and without limiting the foregoing,
in the event 50% or 100%, respectively, of the Sponsor’s Founder Shares are forfeited or transferred by the Sponsor as part
of such Business Combination, the number of founder shares that the Purchaser may purchase pursuant to Section 1(a)(ii)
shall be reduced by 50% or 75%, respectively. The Purchaser agrees to take all steps and execute all such agreements as may be
necessary or reasonably requested by the Sponsor to effectuate such Change in Investment on the same terms as applicable to the
Sponsor.

 

    	 	4	 

     

    

 

(c)  None
of the terms and provisions in a Change in Investment shall apply to, adversely affect or restrict the transfer of, the Founder
Shares retained by the Purchaser pursuant to Section 2(a) or Section 2(b). For the avoidance of doubt, the Purchaser
shall not be required to forfeit, transfer, exchange or amend the terms of any Private Placement Warrants in connection with a
Change in Investment.

 

3. Representations
and Warranties of the Purchaser.  The Purchaser represents and warrants to the Company as follows, as of the date hereof:

 

(a) Organization
and Power.  The Purchaser is duly organized, validly existing, and in good standing under the laws of the jurisdiction
of its formation and has all requisite power and authority to carry on its business as presently conducted and as proposed to
be conducted.

 

(b) Authorization. 
The Purchaser has full power and authority to enter into this Agreement. This Agreement, when executed and delivered by the Purchaser,
will constitute the valid and legally binding obligation of the Purchaser, enforceable against the Purchaser in accordance with
its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
and any other laws of general application affecting enforcement of creditors’ rights generally or (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)  Governmental
Consents and Filings.  No consent, approval, order or authorization of, or registration, qualification, designation,
declaration or filing with, any federal, state or local governmental authority is required on the part of the Purchaser in
connection with the consummation of the transactions contemplated by this Agreement, except for filings pursuant to applicable
securities laws, rules or regulations.

 

(d) Compliance
with Other Instruments.  The execution, delivery and performance by the Purchaser of this Agreement and the consummation
by the Purchaser of the transactions contemplated by this Agreement will not result in any violation or default (i) under
any provisions of its organizational documents, (ii) under any instrument, judgment, order, writ or decree to which it is
a party or by which it is bound, (iii) under any note, indenture or mortgage to which it is a party or by which it is bound,
(iv) under any lease, agreement, contract or purchase order to which it is a party or by which it is bound or (v) under
any provision of federal or state statute, rule or regulation applicable to the Purchaser, in each case (other than clause
(i)), which would have a material adverse effect on the Purchaser’s ability to consummate the transactions contemplated
by this Agreement.

 

(e)  Purchase
Entirely for Own Account.  This Agreement is made with the Purchaser in reliance upon the Purchaser’s representation
to the Company, which by the Purchaser’s execution of this Agreement, the Purchaser hereby confirms, that the Securities
to be acquired by the Purchaser will be acquired for investment for the Purchaser’s own account, not as a nominee or agent,
and not with a view to the resale or distribution of any part thereof in violation of any state or federal securities laws, and
that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same in violation
of law. By executing this Agreement, the Purchaser further represents that the Purchaser does not presently have any contract,
undertaking, agreement or arrangement with any Person (other than the Company) to sell, transfer or grant participations to such
Person or to any third Person, with respect to any of the Securities. For purposes of this Agreement, “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or any government or any department or agency thereof.

 

(f)   Disclosure
of Information.  The Purchaser has had an opportunity to discuss the Company’s business, management, financial
affairs and the terms and conditions of the offering of the Securities, as well as the terms of the Company’s proposed IPO,
with the Company’s management.

 

    	 	5	 

     

    

 

(g)  Restricted
Securities.  The Purchaser understands that the offer and sale of the Securities to the Purchaser has not been and will
not be registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities
Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser’s
representations as expressed herein. The Purchaser understands that the Securities are “restricted securities” under
applicable U.S. federal and state securities laws and that, pursuant to these laws, the Purchaser must hold the Securities indefinitely
unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification
requirements is available. The Purchaser acknowledges that the Company has no obligation to register or qualify the Securities
except pursuant to the Registration Rights Agreement.  The Purchaser further acknowledges that if an exemption from registration
or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and
manner of sale, the holding period for the Securities, and on requirements relating to the Company which are outside of the Purchaser’s
control, and which the Company is under no obligation and may not be able to satisfy. The Purchaser acknowledges that the Company
has confidentially submitted the Registration Statement for its proposed IPO. The Purchaser understands that the offering of Securities
and transactions contemplated hereunder are not and are not intended to be part of the IPO, and that the Purchaser will not be
able to rely on the protection of Section 11 of the Securities Act with respect to its purchase of Securities hereunder.

 

(h) No
Public Market.  The Purchaser understands that no public market now exists for the Securities, and that the Company has
not made any assurances that a public market will ever exist for the Securities.

 

(i)  High
Degree of Risk.  The Purchaser understands that the purchase of the Subscribed Securities involves a high degree of risk
which could cause the Purchaser to lose all or part of its investment.

 

  (j)  Accredited
Investor.  The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under
the Securities Act.

 

(k) No
General Solicitation.  Neither the Purchaser, nor any of its officers, directors, employees, agents, stockholders or
partners has either directly or indirectly, including, through a broker or finder (i) to its knowledge, engaged in any general
solicitation, or (ii) published any advertisement in connection with the offer and sale of the Securities.

 

(l)  Place
of Investment Decision.  The Purchaser’s investment decision was made in the office or offices located at the address
of the Purchaser set forth on the signature page hereof.

 

(m)        Adequacy
of Financing. The Purchaser will, when such funds are due hereunder, have sufficient funds to satisfy its obligations
under this Agreement.

 

(o) No
Other Representations and Warranties; Non-Reliance.  Except for the specific representations and warranties contained
in this Section 3 and in any certificate or agreement delivered pursuant hereto, none of the Purchaser nor
any person acting on behalf of the Purchaser nor any of the Purchaser’s affiliates (the “Purchaser Parties”)
has made, makes or shall be deemed to make any other express or implied representation or warranty with respect to the Purchaser
and this offering, and the Purchaser Parties disclaim any such representation or warranty. Except for the specific representations
and warranties expressly made by the Company and the Sponsor in Section 4 and Section 5 of this Agreement,
respectively, and in any certificate or agreement delivered pursuant hereto, the Purchaser Parties specifically disclaim that
they are relying upon any other representations or warranties that may have been made by the Company, any person on behalf of
the Company or any of the Company’s affiliates (collectively, the “Company Parties”) or by the Sponsor,
any person on behalf of the Sponsor or any of the Sponsor’s affiliates (collectively, the “Sponsor Parties”)
with respect to the transactions contemplated hereby.

 

    	 	6	 

     

    

 

4. Representations,
Warranties and Covenants of the Company. The Company represents, warrants and covenants to the Purchaser as follows:

 

(a) Organization
and Corporate Power.  The Company is incorporated and validly existing and in good standing as a corporation under the
laws of Delaware and has all requisite corporate power and authority to carry on its business as presently conducted and as proposed
to be conducted.

 

(b) Capitalization.
The authorized share capital of the Company consists, as of the date hereof:

 

  (i)
500,000,000 shares of Class A Common Stock, none of which is issued and outstanding;

 

(ii)  550,000,000
shares of Class B Common Stock, 7,067,500 of which are issued and outstanding and held by the Sponsor, and 120,000 of which are
issued and outstanding and held by the Company’s independent directors. All of the outstanding shares of Class B Common
Stock have been duly authorized, are fully paid and nonassessable and were issued in compliance with all applicable federal and
state securities laws.

 

(iii)  1,000,000
shares of preferred stock, none of which is issued and outstanding.

 

(c)  Authorization. 
All corporate action required to be taken by the Company’s Board of Directors and stockholders in order to authorize the
Company to enter into this Agreement, and to issue the Subscribed Securities, has been taken on or prior to the date hereof. All
action on the part of the stockholders, directors and officers of the Company necessary for the execution and delivery of this
Agreement, the performance of all obligations of the Company under this Agreement, and the issuance and delivery of the Subscribed
Securities has been taken on or prior to the date hereof. This Agreement, when executed and delivered by the Company, shall constitute
the valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms except (i) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application
relating to or affecting the enforcement of creditors’ rights generally or (ii) as limited by laws relating to the
availability of specific performance, injunctive relief, or other equitable remedies.

 

(d) Valid
Issuance of Private Placement Warrants.

 

(i)  The
Private Placement Warrants, when issued, sold and delivered in accordance with the terms and for the consideration set forth in
this Agreement, will be validly issued and fully paid, as applicable, and free of all preemptive or similar rights, taxes, liens,
encumbrances and charges with respect to the issue thereof and restrictions on transfer other than restrictions on transfer specified
under this Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by the Purchaser.
Assuming the accuracy of the representations of the Purchaser in this Agreement and subject to the filings described in Section 4(e) below,
the Private Placement Warrants will be issued in compliance with all applicable federal and state securities laws, rules and regulations.

 

(ii)  No
“bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification
Event”) is applicable to the Company or, to the Company’s knowledge, any Company Covered Person (as defined below),
except for a Disqualification Event as to which Rule 506(d)(2)(ii)–(iv) or (d)(3), is applicable. “Company
Covered Person” means, with respect to the Company as an “issuer” for purposes of Rule 506 promulgated
under the Securities Act, any Person listed in the first paragraph of Rule 506(d)(1).

 

(e)  IPO.

 

(i)  The
Company has provided to the Purchaser, and will at all times prior to the consummation of the IPO promptly provide to the Purchaser,
copies of all correspondence sent by the Company to, or received by the Company from, the SEC.

 

    	 	7	 

     

    

 

(ii)  The
offers and sales of securities in the IPO will be made pursuant to an effective Registration Statement and otherwise in compliance
with the Securities Act and the rules and regulations promulgated thereunder and applicable state securities laws, rules and regulations.

 

(f)  Governmental
Consents and Filings.  Assuming the accuracy of the representations made by the Purchaser in this Agreement, no consent,
approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state
or local governmental authority is required on the part of the Company in connection with the consummation of the transactions
contemplated by this Agreement, except for filings pursuant to Regulation D of the Securities Act and applicable state securities
laws, if any.

 

(g)   Compliance
with Other Instruments.  The execution, delivery and performance of this Agreement and the consummation of the transactions
contemplated by this Agreement will not result in any violation or default (i) under any provisions of the certificate of
incorporation, bylaws or other governing documents of the Company, (ii) under any instrument, judgment, order, writ or decree
to which the Company is a party or by which it is bound, (iii) under any note, indenture or mortgage to which the Company
is a party or by which it is bound, (iv) under any lease, agreement, contract or purchase order to which the Company is a
party or by which it is bound or (v) under any provision of federal or state statute, rule or regulation applicable
to the Company, in each case (other than clause (i)) which would have a material adverse effect on the Company or its ability
to consummate the transactions contemplated by this Agreement.

 

(h)  Operations.
As of the date hereof, the Company has not conducted, and prior to the IPO Closing the Company will not conduct, any operations
other than organizational activities and activities in connection with offerings of the Securities.

 

(i) Foreign
Corrupt Practices. Neither the Company, nor any director, officer, agent, employee or other Person acting on behalf of the
Company has, in the course of its actions for, or on behalf of, the Company (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in
violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe,
rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

 

(j)  Compliance
with Anti-Money Laundering Laws. The operations of the Company are and have been conducted at all times in compliance with
applicable financial recordkeeping and reporting requirements and all other applicable U.S. and non-U.S. anti-money laundering
laws and regulations, including, but not limited to, those of the Currency and Foreign Transactions Reporting Act of 1970, as
amended, the USA Patriot Act of 2001 and the applicable money laundering statutes of all applicable jurisdictions, the rules and
regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental
agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving the Company with respect to the Anti-Money Laundering
Laws is pending or, to the knowledge of the Company, threatened.

 

(k)  Absence
of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government
agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the
Company or any of the Company’s officers or directors, whether of a civil or criminal nature or otherwise, in their capacities
as such.

 

(l) No
General Solicitation.  Neither the Company, nor any of its officers, managers, employees, agents or members has either
directly or indirectly, including, through a broker or finder (i) engaged in any general solicitation or (ii) published
any advertisement in connection with the offer and sale of the Private Placement Warrants.

 

(m)  Non-Public
Information. The Company represents and warrants that none of the information conveyed to the Purchaser in connection with
the transactions contemplated by this Agreement will constitute material non-public information of the Company upon the effectiveness
of the Registration Statement.

 

    	 	8	 

     

    

 

(n)        No
Other Representations and Warranties; Non-Reliance.  Except for the specific representations and warranties contained
in this Section 4 and in any certificate or agreement delivered pursuant hereto, none of the Company Parties
has made, makes or shall be deemed to make any other express or implied representation or warranty with respect to the Company
or the offering of Securities hereunder, and the Company Parties disclaim any such representation or warranty. Except for the
specific representations and warranties expressly made by the Purchaser in Section 3 of this Agreement and
in any certificate or agreement delivered pursuant hereto, the Company Parties specifically disclaim that they are relying upon
any other representations or warranties that may have been made by the Purchaser Parties.

 

5.  Representations,
Warranties and Covenants of the Sponsor. The Sponsor represents, warrants and covenants as follows:

 

(a)  Organization
and Power. The Sponsor is duly organized, validly existing, and in good standing under the laws of its jurisdiction of its
formation and has all requisite power and authority to carry on its business as presently conducted and as proposed to be conducted.

 

(b)  Authorization.
The Sponsor has full power and authority to enter into this Agreement. This Agreement, when executed and delivered by the Sponsor,
will constitute the valid and legally binding obligation of the Sponsor, enforceable against the Sponsor in accordance with its
terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other
laws of general application affecting enforcement of creditors’ rights generally or (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)  Encumbrances.
The Founder Shares to be sold to the Purchaser (i) are owned by the Sponsor free and clear of any security interests, liens, claims
or other encumbrances, subject only to restrictions upon transfer under the Securities Act and any applicable state securities
laws and as described in the Registration Statement, (ii) are subject to certain transfer restrictions as set forth in the Registration
Statement, and (iii) will not subject the Purchaser to personal liability upon its acquisition of such Founder Shares by reason
of being a holder of such Founder Shares.

 

(d)  No
Other Representations and Warranties; Non-Reliance. Except for the specific representations and warranties contained in this
Section 5 and in any certificate or agreement delivered pursuant hereto, none of the Sponsor Parties has made, makes or
shall be deemed to make any other express or implied representation or warranty with respect to the Sponsor or the offering of
Securities hereunder, and the Sponsor Parties disclaim any such representation or warranty. Except for the specific representations
and warranties expressly made by the Purchaser in Section 3 of this Agreement and in any certificate or agreement delivered
pursuant hereto, the Sponsor Parties specifically disclaim that they are relying upon any other representations or warranties
that may have been made by the Purchaser Parties.

 

(e) Most
Favored Nation. None of the Sponsor, the Company or any of their affiliates will enter into any arrangement, agreement
or understanding containing terms relating to the subscription of the Founder Shares and/or the Private Placement Warrants that
are more favorable to the counterparty or offeree than the terms set forth in the Agreement.

 

    	 	9	 

     

    

 

6.  Additional
Agreements and Acknowledgements of the Purchaser.

 

(a) Transfer
Restrictions.  The Purchaser agrees that it shall not Transfer (as defined below) (i) any Founder Shares and any shares
of Class A Common Stock issuable upon conversion thereof until the earlier of (A) one year after the closing of the Business
Combination (the “Business Combination Closing”) and (B) subsequent to the Business Combination Closing
(x) the date on which the last reported sale price of the Class A Common Stock equals or exceeds $12.00 per share (as adjusted
for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading
day period commencing at least 150 days after the Business Combination Closing, or (y) the date following the Business Combination
Closing on which the Company completes a liquidation, merger, capital stock exchange, reorganization or other similar transaction
after the Business Combination Closing that results in all of the Company’s stockholders having the right to exchange their
Common Stock for cash, securities or other property (such period, the “Lock-up Period”) or (ii) any Private
Placement Warrants (or any shares of Common Stock issuable upon exercise of the Private Placement Warrants) until 30 days after
the Business Combination Closing. Notwithstanding the foregoing, if subsequent to a Business Combination, the closing price of
the Class A Common Stock equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations
and the like) for any twenty (20) trading days within any thirty (30) trading day period commencing at least one hundred and fifty
(150) days after the Business Combination Closing, the Founder Shares shall be released from the lockup referenced in this Section
5(a). Notwithstanding the first sentence hereinabove, Transfers of the Securities are permitted (a) to the Company’s
employees, officers or directors, any affiliates or family members of any of the Company’s officers or directors, any employees,
officers, directors or members of the Sponsor (or former Sponsor if such transfer occurs after a dissolution of the Sponsor) or
their affiliates, or any affiliates of the Sponsor (or former Sponsor if such transfer occurs after a dissolution of the Sponsor);
(b) in the case of an individual, by gift to a member of one of the individual’s immediate family, an estate planning vehicle
or to a trust, the beneficiary of which is a member of the individual’s immediate family, an affiliate of such person or
to a charitable organization; (c) in the case of an individual, by virtue of laws of descent and distribution upon death of the
individual; (d) in the case of an individual, pursuant to a qualified domestic relations order; (e) by private sales or transfers
made in connection with the consummation of a Business Combination at prices no greater than the price at which the Founder Shares,
Private Placement Warrants or Common Stock, as applicable, were originally purchased; (f) by pro rata distributions from the Sponsor
to its members, partners, or shareholders pursuant to the Sponsor’s organizational documents; (g) by virtue of the laws of
Delaware or the Sponsor’s organizational documents upon liquidation or dissolution of the Sponsor; (h) to the Company for
no value for cancellation in connection with the consummation of an initial Business Combination, (i) in the event of completion
of a liquidation, merger, capital stock exchange, reorganization or other similar transaction which results in all of the Company’s
Public Stockholders having the right to exchange their Common Stock for cash, securities or other property subsequent to the completion
of an initial Business Combination; or (j) in the case of the Purchaser, to such Purchaser’s affiliates, or any investment
fund or other entity controlled or managed by such Purchaser, or to any investment manager or investment advisor of the Purchaser
or an affiliate of any such investment manager or investment advisor (each of the foregoing, a “Permitted Transferee”);
provided, however, that in the case of clauses (a) through (g), these permitted transferees must enter into a written agreement
agreeing to be bound by the terms of this Agreement, including the forfeiture provisions of Section 2 and these transfer
restrictions. As used in this Agreement, “Transfer” shall mean the (x) sale of, offer to sell, contract
or agreement to sell, hypothecate, pledge, grant of any option to purchase or otherwise dispose of or agreement to dispose of,
directly or indirectly, or establishment or increase of a put equivalent position or liquidation with respect to or decrease of
a call equivalent position (within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and the rules and regulations of the SEC promulgated thereunder) with respect to, any of the Securities;
(y) entry into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of any of the Securities, whether any such transaction is to be settled by delivery of such Securities, in cash or
otherwise, or (z) public announcement of any intention to effect any transaction specified in clause (x) or (y); provided
further, that this Section 6(a) shall not prohibit the Purchaser from effecting a Short Sale (as defined below) with securities
that do not constitute “Securities” under this Agreement.

 

(b) Trust
Account.

 

(i)  The
Purchaser hereby acknowledges that it is aware that the Company will establish the Trust Account for the benefit of its public
stockholders upon the IPO Closing. The Purchaser hereby agrees that it has no right, title, interest or claim of any kind in or
to any monies held in the Trust Account, or any other asset of the Company as a result of any liquidation of the Company, except
for redemption and liquidation rights, if any, the Purchaser may have in respect of any Public Shares held by it.

 

(ii)  The
Purchaser hereby agrees that it shall have no right of set-off or any right, title, interest or claim of any kind (“Claim”)
to, or to any monies in, the Trust Account, and hereby irrevocably waives any Claim to, or to any monies in, the Trust Account
that it may have now or in the future, except for redemption and liquidation rights, if any, the Purchaser may have in respect
of any Public Shares held by it. In the event the Purchaser has any Claim against the Company under this Agreement, the Purchaser
shall pursue such Claim solely against the Company and its assets outside the Trust Account and not against the property or any
monies in the Trust Account, except for redemption and liquidation rights, if any, the Purchaser may have in respect of any Public
Shares held by it.

 

    	 	10	 

     

    

 

(c)
Use of Purchaser’s Name. Neither the Company nor the Sponsor will, without the written consent of the Purchaser in
each instance, use in advertising, publicity or otherwise the name of the Purchaser or any of its affiliates, or any director,
officer or employee of the Purchaser, nor any trade name, trademark, trade device, service mark, symbol or any abbreviation, contraction
or simulation thereof owned by the Purchaser or its affiliates or any information relating to the business or operations of the
Purchaser or its affiliates (including, for the avoidance of doubt, any investment vehicles, funds or accounts managed thereby).
Notwithstanding the foregoing, the Company may disclose (i) Purchaser’s name and information concerning the Purchaser
(A) to the extent required by law, regulation or regulatory request, including in the Registration Statement or (B) to
the Company’s lawyers, independent accountants and to other advisors and service providers who reasonably require Purchaser’s
information in connection with the provision of services to the Company, are advised of the confidential nature of such information
and are obligated to keep such information confidential, and (ii) Purchaser’s name and the terms of this Agreement
to the other Subscription Parties. The Company and the Sponsor agree to provide to the Purchaser for Purchaser’s review
any disclosure in any registration statement, proxy statement or other document in advance of the submission, filing or disclosure
of such document in connection with the transactions contemplated by this Agreement with respect to the Purchaser or any of its
affiliates, and will not make any such submission, filing or disclosure without including any revisions reasonably requested in
writing by the Purchaser or to the extent the Purchaser has a good faith objection to such submission, filing or disclosure.

 

(d) No Short Sales. The Purchaser
hereby agrees that neither it, nor any person or entity acting on its behalf, will engage in any Short Sales with respect to securities
of the Company prior to the closing of the Business Combination. For purposes of this Section 4(c), “Short Sales”
shall include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under
the Exchange Act, and all types of direct and indirect stock pledges (other than pledges in the ordinary course of business as
part of prime brokerage arrangements), forward sale contracts, options, puts, calls, swaps and similar arrangements (including
on a total return basis). Notwithstanding anything to the contrary set forth herein, (i) nothing herein shall prohibit any entities
under common management or that share an investment advisor with the Purchaser that have no knowledge of this Agreement or of
the Purchaser’s participation in the transactions contemplated in this Agreement (including the Purchaser’s controlled
affiliates and/or other affiliates) from entering into any Short Sales and (ii) in the case of a Purchaser that is a multi-managed
investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio
managers have no knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, this Section 6(d) shall only apply with respect to the portion of assets managed by the portfolio manager that made the
investment decision to purchase the amount of Subscribed Securities pursuant to this Agreement. The Company acknowledges and agrees
that, notwithstanding anything herein to the contrary, the Subscribed Securities may be pledged by the Purchaser in connection
with a bona fide margin agreement, provided that such pledge shall be (i) pursuant to an available exemption from the registration
requirements of the Securities Act or (ii) pursuant to, and in accordance with, a registration statement that is effective under
the Securities Act at the time of such pledge, and the Purchaser effecting a pledge of Subscribed Securities shall not be required
to provide the Company with any notice thereof; provided, however, that neither the Company nor its counsel shall be required
to take any action (or refrain from taking any action) in connection with any such pledge, other than providing any such lender
of such margin agreement with an acknowledgment that the Subscribed Securities are not subject to any contractual lock up or prohibition
on pledging, the form of such acknowledgment to be subject to review and comment by the Company in all respects.

 

(e)  Stock
Exchange Listing. The Company will use commercially reasonable efforts to effect and maintain the listing of the Class A Common
Stock and Warrants on The Nasdaq Capital Market (or another national securities exchange) until the third anniversary of the Business
Combination Closing.

 

7. General
Provisions.

 

(a) Notices. 
All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively
given upon the earlier of actual receipt, or (i) personal delivery to the party to be notified, (ii) when sent, if sent
by electronic mail or facsimile (if any) during normal business hours of the recipient, and if not sent during normal business
hours, then on the recipient’s next Business Day, (iii) five (5) Business Days after having been sent by registered
or certified mail, return receipt requested, postage prepaid, or (iv) one (1) Business Day after deposit with a nationally
recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification of receipt. All
communications sent to the Company shall be sent to: Power & Digital Infrastructure Acquisition Corp., Attention: Patrick
C. Eilers, Email: Pat Eilers peilers@eptransition.com, with a copy to Kirkland & Ellis LLP, 609 Main Street, Houston, TX 77002,
Attention: Debbie P. Yee, Email: debbie.yee@kirkland.com. and Lance K. Hancock, Email: lance.hancock@kirkland.com.

 

  All
communications to the Purchaser shall be sent to the Purchaser’s address as set forth on the signature page hereto,
or to such email address, facsimile number (if any) or address as subsequently modified by written notice given in accordance
with this Section 7(a).

 

(b) No
Finder’s Fees.  Each party represents that it neither is nor will be obligated for any finder’s fee or commission
in connection with this transaction. The Purchaser agrees to indemnify and to hold harmless the Company from any liability for
any commission or compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and the
costs and expenses of defending against such liability or asserted liability) for which the Purchaser or any of its officers,
employees or representatives are responsible. The Company agrees to indemnify and hold harmless the Purchaser from any liability
for any commission or compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and
the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers,
employees or representatives is responsible.

 

    	 	11	 

     

    

 

(c)  Survival
of Representations and Warranties.  All of the representations and warranties contained herein shall survive the consummation
of the transactions contemplated by this Agreement.

 

(d) Entire
Agreement.  This Agreement, together with any other documents, instruments and writings that are delivered pursuant hereto
or referenced herein, constitutes the entire agreement and understanding of the parties hereto in respect of its subject matter
and supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the
extent they relate in any way to the subject matter hereof or the transactions contemplated hereby.

  

(e)  Successors. 
All of the terms, agreements, covenants, representations, warranties, and conditions of this Agreement are binding upon, and inure
to the benefit of and are enforceable by, the parties hereto and their respective successors. Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any
rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

(f)   Assignments. 
Except as otherwise specifically provided herein, no party hereto may assign either this Agreement or any of its rights, interests,
or obligations hereunder without the prior written approval of the other party.

 

(g)  Counterparts. 
This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together
will constitute one and the same instrument.

 

(h) Headings. 
The section headings contained in this Agreement are inserted for convenience only and will not affect in any way the meaning
or interpretation of this Agreement.

 

(i)  Governing
Law.  This Agreement, the entire relationship of the parties hereto, and any litigation between the parties (whether
grounded in contract, tort, statute, law or equity) shall be governed by, construed in accordance with, and interpreted pursuant
to the laws of the State of New York, without giving effect to its choice of laws principles. 

 

(j)  Jurisdiction. 
The parties hereby irrevocably and unconditionally (i) submit to the jurisdiction of the state courts of New York and the
United States District Court for the Southern District of New York for the purpose of any suit, action or other proceeding arising
out of or based upon this Agreement, (ii) agree not to commence any suit, action or other proceeding arising out of or based
upon this Agreement except in state courts of New York or the United States District Court for the Southern District of New York,
and (iii) waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding,
any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune
from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit,
action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

 

(k) WAIVER
OF JURY TRIAL.  THE PARTIES HERETO HEREBY WAIVE ANY RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LITIGATION PURSUANT
TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(l)  Amendments. 
This Agreement may not be amended, modified or waived as to any particular provision, except with the prior written consent of
the Company and the Purchaser.

 

(m)        Severability. 
The provisions of this Agreement will be deemed severable and the invalidity or unenforceability of any provision will not affect
the validity or enforceability of the other provisions hereof; provided that if any provision of this Agreement, as applied to
any party hereto or to any circumstance, is adjudged by a governmental authority, arbitrator, or mediator not to be enforceable
in accordance with its terms, the parties hereto agree that the governmental authority, arbitrator, or mediator making such determination
will have the power to modify the provision in a manner consistent with its objectives such that it is enforceable, and/or to
delete specific words or phrases, and in its reduced form, such provision will then be enforceable and will be enforced.

 

    	 	12	 

     

    

 

(n) Expenses. 
Each of the Company and the Purchaser will bear its own costs and expenses incurred in connection with the preparation, execution
and performance of this Agreement and the consummation of the transactions contemplated hereby, including all fees and expenses
of agents, representatives, financial advisors, legal counsel and accountants, except that the Sponsor will be responsible for
the Subscribing Parties’ legal fees in an aggregate amount up to $50,000. The Company shall be responsible for the fees
of its transfer agent, stamp taxes and all of The Depository Trust Company’s fees associated with the issuance of the Securities
and the securities issuable upon conversion or exercise of the Securities.

 

(o) Construction. 
The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of
intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption
or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision of this Agreement.
Any reference to any federal, state, local, or foreign law will be deemed also to refer to law as amended and all rules and
regulations promulgated thereunder, unless the context requires otherwise. The words “include,” “includes,”
and “including” will be deemed to be followed by “without limitation.” Pronouns in masculine, feminine,
and neuter genders will be construed to include any other gender, and words in the singular form will be construed to include
the plural and vice versa, unless the context otherwise requires. The words “this Agreement,” “herein,”
“hereof,” “hereby,” “hereunder,” and words of similar import refer to this Agreement as a
whole and not to any particular subdivision unless expressly so limited. The parties hereto intend that each representation, warranty,
and covenant contained herein will have independent significance. If any party hereto has breached any representation, warranty,
or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating
to the same subject matter (regardless of the relative levels of specificity) which such party hereto has not breached will not
detract from or mitigate the fact that such party hereto is in breach of the first representation, warranty, or covenant.

 

(p) Waiver. 
No waiver by any party hereto of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional
or not, may be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder
or affect in any way any rights arising because of any prior or subsequent occurrence.

 

(q) Specific
Performance.  Each party hereto agrees that irreparable damage may occur in the event any provision of this Agreement
was not performed by the other party hereto in accordance with the terms hereof and that the such party shall be entitled to specific
performance of the terms hereof, in addition to any other remedy at law or equity.

 

(r)  Confidentiality. 
Except as may be required by law, regulation or applicable stock exchange listing requirements (but subject in any case to the
provisions of Section 6(d) hereof), unless and until the transactions contemplated hereby and the terms hereof
are publicly announced or otherwise publicly disclosed by the Company, the parties hereto shall keep confidential and shall not
publicly disclose the existence or terms of this Agreement.  Notwithstanding the foregoing, the Purchaser shall be permitted
to disclose any information to its affiliates and its and their respective directors, officers, employees, advisors, director
or indirect owners, agents and representatives, in each case so long as such person or entity has been advised of the confidentiality
obligations hereunder; provided that the Purchaser shall be liable for any breach of such confidentiality obligations by any such
person or entity.

 

[Signature
page follows]

 

    	 	13	 

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement to be effective as of the date first set forth above.

 

	 	COMPANY:
	 	 
	 	POWER
    & DIGITAL INFRASTRUCTURE ACQUISITION CORP.
	 	 
	 	By:	                   
	 	Name:
	 	Title:
	 	 
	 	SPONSOR:
	 	 
	 	XPDI
    SPONSOR LLC
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

 

[Signature Page to Subscription Agreement]

 

     

     

    

 

	 	PURCHASER:
	 	 
	 	[BLACKROCK CREDIT ALPHA MASTER FUND L.P./HC NCBR FUND/THE OBSIDIAN MASTER FUND]
	 	 
	 	By:	                             
	 	Name:
	 	Title:

 

	 	Purchaser’s Address for Notices:
	 	 
	 	
        c/o BlackRock Financial Management, Inc.

        55 East 52nd Street

        New York, NY 10055

        Attn:  Christopher Biasotti

         

        with copies to:

         

        c/o BlackRock, Inc.

        Office of the General Counsel

        40 East 52nd Street, New York, NY 10022

        Attn: David Maryles and Joe Roy

        Email: legaltransactions@blackrock.com

         

        And

         

        Kramer Levin Naftalis & Frankel LLP

        1177 Avenue of the Americas

        New York, NY 10036

        Attn: Christopher S. Auguste

        Email: cauguste@kramerlevin.com

 

[Signature Page to Subscription Agreement] 

 

     

     

    

 

Schedule
A

 

	 	 	Number of

    Subscribed Securities	 	 	Initial
    Purchase Price	 
	Founder
    Shares	 	[_]	 	 	$	[_]	 
	Private
    Placement Warrants	 	[_]	 	 	$	[_]	 

 

*In
the event that the Over-allotment Option is exercised, the Purchaser agrees to purchase (i) up to an additional $[_______] of
Founder Shares at a price of $[_____] per share (or up to [______] Founder Shares] and (ii) up to an additional $[________] of
Private Placement Warrants at a price of $1.50 per warrant (or up to [______] Private Placement Warrants), in the same proportion
as the amount of the over-allotment option that is exercised.Exhibit
10.9

 

[●],
2021

 

Power
& Digital Infrastructure Acquisition Corp.
 321 North Clark Street, Suite 2440

Chicago,
IL 60654

 

Re:
Initial Public Offering

 

Ladies
and Gentlemen:

 

This
letter (this “Letter Agreement”) is being delivered to you in accordance with the Underwriting Agreement
(the “Underwriting Agreement”) entered into by and among Power & Digital Infrastructure Acquisition
Corp., a Delaware corporation (the “Company”) and Barclays Capital Inc. and BofA Securities, Inc., as
underwriters (the “Underwriters”), relating to an underwritten initial public offering (the “Public
Offering”) of 28,750,000 of the Company’s units (including 3,750,000 units that may be purchased pursuant
to the Underwriters’ option to purchase additional units, the “Units”), each consisting of one
share of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”),
and one-third of one warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof
to purchase one share of Common Stock at a price of $11.50 per share, subject to adjustment. The Units will be sold in the Public
Offering pursuant to a registration statement on Form S-1 and a prospectus (the “Prospectus”) filed
by the Company with the U.S. Securities and Exchange Commission (the “Commission”). Certain capitalized
terms used herein are defined in paragraph 1 hereof.

 

In
order to induce the Company and the Underwriters to enter into the Underwriting Agreement and to proceed with the Public Offering
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, XPDI Sponsor LLC
(the “Sponsor”) and each of the undersigned (each, an “Insider” and, collectively,
the “Insiders”) hereby agrees, severally but not jointly, with the Company as follows:

 

1.
Definitions. As used herein, (i) “Business Combination” shall mean a merger, capital stock exchange,
asset acquisition, stock purchase, reorganization or similar business combination, involving the Company and one or more businesses;
(ii) “Founder Shares” shall mean the 7,187,500 shares of Class B Common Stock of the Company, par value
$0.0001 per share, issued and outstanding immediately prior to the consummation of the Public Offering; (iii) “Initial
Stockholders” shall mean the Sponsor and any Insider that holds Founder Shares; (iv) “Private Placement
Warrants” shall mean the warrants to purchase shares of Common Stock of the Company that will be acquired by the
Sponsor for an aggregate purchase price of $6,000,000 (or up to $6,600,000 if the Underwriters’ exercise their option to
purchase additional units), or $1.50 per Warrant, in a private placement that shall close simultaneously with the consummation
of the Public Offering (including Common Stock issuable upon conversion thereof); (v) “Public Stockholders”
shall mean the holders of Common Stock included in the Units issued in the Public Offering; (vi) “Public Shares”
shall mean the Common Stock included in the Units issued in the Public Offering; (vii) “Trust Account”
shall mean the trust account into which a portion of the net proceeds of the Public Offering and the sale of the Private Placement
Warrants shall be deposited; (viii) “Transfer” shall mean the (a) sale of, offer to sell, contract or
agreement to sell, hypothecate, pledge, grant of any option to purchase or otherwise dispose of or agreement to dispose of, directly
or indirectly, or establishment or increase of a put equivalent position or liquidation with respect to or decrease of a call
equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and regulations
of the Commission promulgated thereunder with respect to, any security, (b) entry into any swap or other arrangement that transfers
to another, in whole or in part, any of the economic consequences of ownership of any security, whether any such transaction is
to be settled by delivery of such securities, in cash or otherwise, or (c) public announcement of any intention to effect any
transaction specified in clause (a) or (b); and (ix) “Charter” shall mean the Company’s Amended
and Restated Certificate of Incorporation, as the same may be amended from time to time.

 

     

     

    

 

2.
Representations and Warranties.

 

(a)
The Sponsor and each Insider, with respect to itself, herself or himself, represent and warrant to the Company that it, she or
he has the full right and power, without violating any agreement to which it, she or he is bound (including, without limitation,
any non-competition or non-solicitation agreement with any employer or former employer), to enter into this Letter Agreement,
as applicable, and to serve as an officer of the Company and/or a director on the Company’s Board of Director (the “Board”),
as applicable, and each Insider hereby consents to being named in the Prospectus, road show and any other materials as an officer
and/or director of the Company, as applicable.

 

(b)
Each Insider represents and warrants, with respect to herself or himself, that such Insider’s biographical information furnished
to the Company (including any such information included in the Prospectus) is true and accurate in all material respects and does
not omit any material information with respect to such Insider’s background. The Insider’s questionnaire furnished
to the Company is true and accurate in all material respects. Each Insider represents and warrants that such Insider is not subject
to or a respondent in any legal action for, any injunction, cease-and-desist order or order or stipulation to desist or refrain
from any act or practice relating to the offering of securities in any jurisdiction; such Insider has never been convicted of,
or pleaded guilty to, any crime (i) involving fraud, (ii) relating to any financial transaction or handling of funds of another
person, or (iii) pertaining to any dealings in any securities and such Insider is not currently a defendant in any such criminal
proceeding; and such Insider has never been suspended or expelled from membership in any securities or commodities exchange or
association or had a securities or commodities license or registration denied, suspended or revoked.

 

3.
Business Combination Vote. It is acknowledged and agreed that the Company shall not enter into a definitive agreement regarding
a proposed Business Combination without the prior consent of the Sponsor. The Sponsor and each Insider, with respect to itself
or herself or himself, agrees that if the Company seeks stockholder approval of a proposed initial Business Combination, then
in connection with such proposed initial Business Combination, it, she or he, as applicable, shall vote all Founder Shares and
any Public Shares held by it, her or him, as applicable, in favor of such proposed initial Business Combination (including any
proposals recommended by the Board in connection with such Business Combination) and not redeem any Public Shares held by it,
her or him, as applicable, in connection with such stockholder approval.

 

    2

     

    

 

4.
Failure to Consummate a Business Combination; Trust Account Waiver.

 

(a)
The Sponsor and each Insider hereby agree, with respect to itself, herself or himself, that in the event that the Company fails
to consummate its initial Business Combination within the time period set forth in the Charter, the Sponsor and each Insider shall
take all reasonable steps to cause the Company to (i) cease all operations except for the purpose of winding up; (ii) as promptly
as reasonably possible but not more than 10 business days thereafter, redeem 100% of the Public Shares, at a per-share price,
payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held
in the Trust Account and not previously release to the Company to pay 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 liquidation distributions, if any); and (iii) as promptly as reasonably
possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Board, liquidate
and dissolve, subject in the case of clauses (ii) and (iii) to the Company’s obligations under Delaware law to provide for
claims of creditors and in all cases subject to the other requirements of applicable law. The Sponsor and each Insider agree not
to propose any amendment to the Charter (i) that would modify the substance or timing of the Company’s obligation to provide
holders of the Public Shares the right to have their shares redeemed in connection with an initial Business Combination or to
redeem 100% of the Public Shares if the Company does not complete an initial Business Combination within the required time period
set forth in the Charter or (ii) with respect to any provision relating to the rights of holders of Public Shares unless the Company
provides its Public Stockholders with the opportunity to redeem their Public Shares upon approval of any such amendment at a per-share
price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds
held in the Trust Account and not previously released to the Company to pay taxes, if any, divided by the number of then-outstanding
Public Shares.

 

(b)
The Sponsor and each Insider, with respect to itself, herself or himself, acknowledges that it, she or he has no right, title,
interest or claim of any kind in or to any monies held in the Trust Account as a result of any liquidation of the Company with
respect to the Founder Shares held by it, her or him, if any. The Sponsor and each of the Insiders hereby further waive, with
respect to any Founder Shares and Public Shares held by it, her or him, as applicable, any redemption rights it, she or he may
have in connection with the consummation of a Business Combination, including, without limitation, any such rights available in
the context of a stockholder vote to approve such Business Combination or a stockholder vote to approve an amendment to the Charter
(i) that would modify the substance or timing of the Company’s obligation to provide holders of the Public Shares the right
to have their shares redeemed in connection with an initial Business Combination or to redeem 100% of the Public Shares if the
Company has not consummated an initial Business Combination within the time period set forth in the Charter or (ii) with respect
to any provision relating to the rights of holders of Public Shares (although the Sponsor and the Insiders shall be entitled to
liquidation rights with respect to any Public Shares they hold if the Company fails to consummate a Business Combination within
the required time period set forth in the Charter).

 

    3

     

    

 

5.
Lock-up; Transfer Restrictions.

 

(a)
The Sponsor and the Insiders agree that they shall not Transfer any Founder Shares (the “Founder Shares Lock-up”)
until the earlier of (A) one year after the completion of an initial Business Combination and (B) the date following the completion
of an initial Business Combination on which the Company completes a liquidation, merger, capital stock exchange, reorganization
or other similar transaction that results in all of the Company’s stockholders having the right to exchange their Common
Stock for cash, securities or other property (the “Founder Shares Lock-up Period”). Notwithstanding
the foregoing, if, subsequent to a Business Combination, the closing price of the Common Stock equals or exceeds $12.00 per share
(as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within
a 30-trading day period commencing at least 150 days after the Company’s initial Business Combination, the Founder Shares
shall be released from the Founder Shares Lock-up.

 

(b)
The Sponsor and Insiders agree that they shall not effectuate any Transfer of Private Placement Warrants or Common Stock underlying
such Warrants until 30 days after the completion of an initial Business Combination.

 

(c)
Notwithstanding the provisions set forth in paragraphs 5(a) and (b), Transfers of the Founder Shares, Private Placement
Warrants and Common Stock underlying the Private Placement Warrants are permitted (a) to the Company’s employees, officers
or directors, any affiliates or family members of any of the Company’s officers or directors, any employees, officers, directors
or members of the Sponsor (or former Sponsor if such transfer occurs after a dissolution of the Sponsor) or their affiliates,
or any affiliates of the Sponsor (or former Sponsor if such transfer occurs after a dissolution of the Sponsor); (b) in the case
of an individual, by gift to a member of one of the individual’s immediate family, an estate planning vehicle or to a trust,
the beneficiary of which is a member of the individual’s immediate family, an affiliate of such person or to a charitable
organization; (c) in the case of an individual, by virtue of laws of descent and distribution upon death of the individual; (d)
in the case of an individual, pursuant to a qualified domestic relations order; (e) by private sales or transfers made in connection
with the consummation of a Business Combination at prices no greater than the price at which the Founder Shares, Private Placement
Warrants or Common Stock, as applicable, were originally purchased; (f) by pro rata distributions from the Sponsor to its members,
partners, or shareholders pursuant to the Sponsor’s organizational documents; (g) by virtue of the laws of Delaware or the
Sponsor’s organizational documents upon liquidation or dissolution of the Sponsor; (h) to the Company for no value for cancellation
in connection with the consummation of an initial Business Combination, (i) in the event of the Company’s liquidation prior
to the completion of a Business Combination; or (j) in the event of completion of a liquidation, merger, capital stock exchange,
reorganization or other similar transaction which results in all of the Company’s Public Stockholders having the right to
exchange their Common Stock for cash, securities or other property subsequent to the completion of an initial Business Combination;
provided, however, that in the case of clauses (a) through (g) these permitted transferees must enter into a written
agreement agreeing to be bound by these transfer restrictions.

 

    4

     

    

 

(d)
During the period commencing on the effective date of the Underwriting Agreement and ending 180 days after such date, the Sponsor
and each Insider shall not, without the prior written consent of the Representatives, Transfer any Units, Common Stock, Warrants
or any other securities convertible into, or exercisable or exchangeable for, Common Stock held by it, her or him, as applicable,
subject to certain exceptions enumerated in Section [6(h)] of the Underwriting Agreement.

 

6.
Remedies. The Sponsor and each of the Insiders hereby agree and acknowledge that (i) each of the Underwriters and the Company
would be irreparably injured in the event of a breach by the Sponsor or such Insider of its, her or his obligations, as applicable
under paragraphs 3, 4, 5, 7, 10 and 11, (ii) monetary damages may not be an adequate remedy for such breach and (iii) the non-breaching
party shall be entitled to injunctive relief, in addition to any other remedy that such party may have in law or in equity, in
the event of such breach.

 

7.
Payments by the Company. Except as disclosed in the Prospectus, neither the Sponsor nor any affiliate of the Sponsor nor
any director or officer of the Company nor any affiliate of the officers shall receive from the Company any finder’s fee,
reimbursement, consulting fee, monies in respect of any payment of a loan or other compensation prior to, or in connection with
any services rendered in order to effectuate the consummation of the Company’s initial Business Combination (regardless
of the type of transaction that it is).

 

8.
Director and Officer Liability Insurance. The Company will maintain an insurance policy or policies providing directors’
and officers’ liability insurance, and the Insiders shall be covered by such policy or policies, in accordance with its
or their terms, to the maximum extent of the coverage available for any of the Company’s directors or officers.

 

9.
Termination. This Letter Agreement shall terminate on the earlier of (i) the expiration of the Founder Shares Lock-up Period
and (ii) the liquidation of the Company.

 

10.
Indemnification. In the event of the liquidation of the Trust Account upon the failure of the Company to consummate its
initial Business Combination within the time period set forth in the Charter, the Sponsor (the “Indemnitor”)
agrees to indemnify and hold harmless the Company against any and all loss, liability, claim, damage and expense whatsoever (including,
but not limited to, any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any
litigation, whether pending or threatened) to which the Company may become subject as a result of any claim by (i) any third party
for services rendered or products sold to the Company (except for the Company’s independent auditors) or (ii) any prospective
target business with which the Company has discussed entering into a transaction agreement (a “Target”);
provided, however, that such indemnification of the Company by the Indemnitor (x) shall apply only to the extent necessary to
ensure that such claims by a third party for services rendered or products sold to the Company or a Target do not reduce the amount
of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held
in the Trust Account as of the date of the liquidation of the Trust Account if less than $10.00 per Public Share due to reductions
in the value of the trust assets, in each case net of interest that may be withdrawn to pay the Company’s tax obligations,
(y) shall not apply to any claims by a third party or Target who executed a waiver of any and all rights to the monies held in
the Trust Account (whether or not such waiver is enforceable) and (z) shall not apply to any claims under the Company’s
indemnity of the Underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended.
The Indemnitor shall have the right to defend against any such claim with counsel of its choice reasonably satisfactory to the
Company if, within 15 days following written receipt of notice of the claim to the Indemnitor, the Indemnitor notifies the Company
in writing that it shall undertake such defense.

 

    5

     

    

 

11.
Forfeiture of Founder Shares. To the extent that the Underwriters do not exercise their option to purchase additional Units
within 45 days from the date of the Prospectus in full (as further described in the Prospectus), the Sponsor agrees to automatically
surrender to the Company for no consideration, for cancellation at no cost, an aggregate number of Founder Shares so that the
number of Founder Shares will equal of 20% of the sum of the total number of Common Stock and Founder Shares outstanding at such
time. The Initial Stockholders further agree that to the extent that the size of the Public Offering is increased or decreased,
the Company will effect a stock split, stock dividend, reverse stock split or stock repurchase, as applicable, with respect to
the Founder Shares immediately prior to the consummation of the Public Offering in such amount as to maintain the number of Founder
Shares at 20% of the sum of the total number of Common Stock and Founder Shares outstanding at such time.

 

12.
Entire Agreement. This Letter Agreement constitutes the entire agreement and understanding of the parties hereto in respect
of the subject matter hereof and supersedes all prior understandings, agreements, or representations by or among the parties hereto,
written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby. This
Letter Agreement may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular
provision, except by a written instrument executed by all parties hereto.

 

13.
Assignment. No party hereto may assign either this Letter Agreement or any of its rights, interests, or obligations hereunder
without the prior written consent of the other parties. Any purported assignment in violation of this paragraph shall be void
and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee. This Letter Agreement
shall be binding on the Sponsor, each of the Insiders and each of their respective successors, heirs, personal representatives
and assigns and permitted transferees.

 

14.
Counterparts. This Letter Agreement may be executed in any number of original or facsimile counterparts, and each of such
counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and
the same instrument.

 

15.
Effect of Headings. The paragraph headings herein are for convenience only and are not part of this Letter Agreement and
shall not affect the interpretation thereof.

 

16.
Severability. This Letter Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of this Letter Agreement or of any other term or provision hereof. Furthermore,
in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part
of this Letter Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be
valid and enforceable.

 

17.
Governing Law. This Letter Agreement shall be governed by and construed and enforced in accordance with the laws of the
State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive
laws of another jurisdiction. The parties hereto (i) all agree that any action, proceeding, claim or dispute arising out of, or
relating in any way to, this Letter Agreement shall be brought and enforced in the courts of New York City, in the State of New
York, and irrevocably submit to such jurisdiction and venue, which jurisdiction and venue shall be exclusive, and (ii) waive any
objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient forum.

 

18.
Notices. Any notice, consent or request to be given in connection with any of the terms or provisions of this Letter Agreement
shall be in writing and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested),
by hand delivery or facsimile transmission.

 

[Signature
Page Follows]

 

    6

     

    

 

	 	Sincerely,
	 	 	 	 
	 	XPDI SPONSOR LLC
	 	 	 	 
	 	By:
    	 
	 		Name: 	John McGarrity
	 		Title:	
    Secretary

 

[Signature
Page to Letter Agreement]

 

     

     

    

 

	 	 
	 	Patrick C. Eilers

 

[Signature
Page to Letter Agreement]

 

     

     

    

 

	 	 
		James
P. Nygaard, Jr.

 

[Signature
Page to Letter Agreement]

 

     

     

    

  

	 	 
		Theodore
                            J. Brombach

 

[Signature
Page to Letter Agreement]

 

     

     

    

 

	 	 
		Paul Gaynor

 

[Signature
Page to Letter Agreement]

 

     

     

    

 

	 	 
		Scott Widham

 

[Signature
Page to Letter Agreement]

 

     

     

    

 

	 	 
		Benjamin W.
Atkins

 

[Signature
Page to Letter Agreement]

 

     

     

    

 

	 	 
		Jesse Peltan

 

[Signature
Page to Letter Agreement]

 

     

     

    

 

 

	Acknowledged and Agreed:
	 	 	 
	POWER & DIGITAL INFRASTRUCTURE ACQUISITION CORP.
	 	 	 
	By:
	 	 
	Name:	Patrick
    C. Eilers	 
	Title:	Chief
    Executive Officer	 

 

[Signature
Page to Letter Agreement]

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