Document:

Exhibit 10.1

 

CERTAIN INFORMATION IDENTIFIED BY BRACKETED
ASTERISKS ([* * *]) HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY
DISCLOSED.

 

Settlement Agreement

 

by and between

 

		1.	4SC AG, with registered seat at Fraunhoferstr. 22, 82152 Planegg-Martinsried, Germany and registered
with the commercial register of the local court of Munich under HRB 132917

 

-
the “Seller“ -

 

and

 

		2.	Immunic AG, with registered seat at Lochhamer Schlag 21, 82166 Gräfelfing, Germany and registered
with the commercial register of the local court of Munich under HRB 223333

 

-
the “Buyer“ –

 

and

 

		3.	Immunic, Inc. with registered seat at 1200 Avenue of the Americas, Suite 200, 2 New York, NY 10036,
United States

 

-
“IMUX“ –

 

- the Seller, the Buyer and IMUX
jointly also “Parties” and individually “Party” -

 

Preamble

 

		A.	On 13 May 2016 the Seller and the Buyer entered into an asset purchase agreement (“APA”)
pursuant to which Seller sold and transferred certain assets to the Buyer such as, inter alia, the rights to patent applications
and patents, the right to apply for and register trademarks on the sold assets and know-how pertaining to the sold assets (“Sold
Assets”). Unless otherwise stated herein, capitalized terms used in this Agreement shall have the meanings given to them in
the APA, a copy of which is attached to this Agreement as Annex A.

 

		B.	Pursuant to Section 5 para. 1 of the APA, the aggregate purchase price for the Sold Assets was, or will
become, due for payment to the Seller in four (4) tranches. Tranche 1 equaling EUR 2 million was paid to Seller and got fully satisfied
by the Buyer on 28 September 2016 and Tranche 2 amounting to EUR 1 million was paid to Seller and was fully satisfied by Buyer on
15 December 2017. Tranche 4 was settled in April 2019 in accordance with a settlement agreement between the Seller and the Buyer dated
11 April 2019.

 

		C.	According to the APA, Tranche 3 amounts to 4.4% of the aggregate Net Sales generated for a certain period,
as specified in Section 5 para. 1 lit. (c) of the APA, and is payable on a quarterly basis within 30 days after the end of each calendar
quarter, as specified in Section 5 para. 4 lit. (c) of the APA. The Seller and the Buyer are in agreement that the conditions for
payment of Tranche 3 pursuant to the APA have not been fulfilled yet, but the Seller and the Buyer now intend to finally settle Tranche
3 as set out in this settlement agreement (“Agreement”).

 

     

     

    

 

Now therefore, the Parties enter into this Agreement:

 

§ 1               

Settlement of Tranche 3

 

		1.	The Seller shall receive from the Buyer

 

		a.	USD 8,625,000 in cash (the “Cash Component”); and

 

		b.	a number of shares of common stock of IMUX par value USD 0.0001 per share (“Common Stock”),
with a value equal to USD 8,625,000 (the “Settlement Shares”).

 

as compensation for the final settlement
of the payment obligation of the Buyer with respect to Tranche 3 under the APA (“Settlement Compensation”).

 

		2.	The Settlement Compensation shall become due two (2) trading days after the execution of this Agreement
(“Due Date”). Section 5 no. 13 of the APA shall apply mutatis mutandis for the payment of the Settlement Compensation.

 

		3.	The board of directors of IMUX, the sole shareholder of the Buyer, has consented to the execution of the
Buyer of this Agreement and the distribution of the Settlement Compensation; the consent is attached hereto as Annex 1.3.

 

		4.	The Seller’s supervisory board has consented to the execution of the Seller of this Agreement; the
consent is attached hereto as Annex 1.4.

 

§ 2               

Cash Component

 

The payment regarding the Cash Component shall
be paid on the Due Date by wire transfer in immediately available funds, free of any costs and charges, to the following bank account
of the Seller:

 

	Account owner:	[***]
	Account number:	[***]
	Bank:	[***]
	SWIFT (BIC):	[***]
	IBAN:	[***]

 

§ 3               

Settlement Shares

 

		1.	The number of Settlement Shares shall be calculated and based on the average closing price of the Common
Stock of IMUX on the Nasdaq Global Market over the 10 trading days prior to the execution of this Agreement, which amounts to 581,199.

 

		2.	The Settlement Shares shall be delivered on the Due Date to the Seller:

 

	Account owner:	[***]
	Account number:	[***]
	Bank	[***]
	SWIFT (BIC)	[***]
	IBAN	[***]

 

     

     

    

 

		3.	The Settlement Shares will be issued in book-entry form to the Seller in a private placement on the Due
Date and the Seller understands that, until such time as the Settlement Shares have been sold pursuant to a Registration Statement (as
such term is defined in below) or the Settlement Shares may be sold pursuant to Rule 144 (promulgated under the under the Securities Act
of 1933, as amended) without any restriction as to the number of securities as of a particular date that can then be immediately sold,
the book entry notations evidencing the Shares Settlement Shares will include customary legends, including the following:

 

“THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT (1) AS PERMITTED
UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM, (2) UNLESS IMMUNIC, INC. HAS
RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO IMMUNIC, INC. AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED OR (3) UNLESS SOLD
PURSUANT TO RULE 144 OF THE ACT OR OTHER EXEMPTION FROM REGISTRATION.”

 

		4.	The Parties agree that

 

		a.	they will execute and deliver without undue delay after the Signing of this Agreement a customary U.S.
law governed Registration Rights Agreement substantially in the form as set out in Annex 3.4 pursuant to which IMUX will
agree to use its commercially reasonable efforts to file a resale shelf registration statement on Form S-3 (“S-3 Statement”)
and to have such registration statement declared effective by the U.S. Securities Exchange Commission; and

 

		b.	the sale of the Settlement Shares will be made strictly in compliance with applicable U.S. Securities
laws, whereby the Buyer hereby assures that the sale of the Settlement Shares can effectively take place in compliance with such laws.

 

		5.	[***]

 

§ 4               

Settlement

 

		1.	With receipt of the full Settlement Compensation, all claims of any kind of the Seller relating to Tranche
3 and under and in connection with the APA, including but not limited to, equitable adjustments, interest and other remedies requested
in the APA in connection with Tranche 3 shall be deemed as irrevocably settled in full.

 

		2.	Subject to the condition precedent (aufschiebende Bedingung) of the transfer of the Settlement
Shares and the payment of the Cash Component to the Seller, the Seller hereby waives any rights to enforce its rights under Section 5
para. 1 lit. (c) of the APA in connection with Tranche 3. The Buyer hereby already accepts such waiver in its own name as well as on behalf
of its shareholders.

 

     

     

    

 

§ 5               

Date of Effect 

 

This Agreement comes into force and effect on
the day the Parties sign this Agreement. Signing will be effective if several identical copies of this Agreement are produced and each
Party signs the versions determined for the respective other Parties (Sec. 126 para. 2 sentence 2 BGB) and such signed copies are delivered
(zugehen) to the other Parties (possibly via facsimile or as a pdf-copy).

 

§ 6               

Non-Assignment

 

The rights of the Parties under this Agreement
may not be assigned without the express written consent of the other Party, which consent may be given only in accordance with applicable
law and regulation, but not to be unreasonably withheld.

 

§ 7               

Confidentiality / Public Disclosure / Fees

 

		1.	Neither this Agreement itself nor its substance shall be disclosed to any third person except those who
are in a confidential relationship to a Party (such as legal counsel), or where the same is required by law and then only on a basis that
it not be further disclosed.

 

		2.	No Party shall issue any statement or communication to any third party (other than their respective agents
who shall be subject to the confidentiality obligations described above) regarding this Agreement and the Settlement Compensation, without
the consent of the other Party, except that this restriction shall be subject to any obligations to comply with applicable securities
laws and the rules of any stock market or exchange where their shares are listed for trading, and except for an ad-hoc disclosure by the
Seller as on the date of this Agreement a draft of which will be attached hereto as Annex 7.

 

		3.	Each Party shall bear its own costs incurred by it and the costs and fees of its advisors in connection
with the preparation, negotiation and execution of this Agreement.

 

§ 8               

Miscellaneous

 

		1.	The failure of any Party to exercise any of its rights under this Agreement shall not constitute a waiver
of its rights unless such Party has explicitly waived its right in writing.

 

		2.	Changes or amendments to this Agreement must be made in writing. The same shall apply to a dispensing
of the requirement of written form. The written form shall be deemed fulfilled if the declaring Party provides a personally signed document
via facsimile or as a pdf-copy to the recipient.

 

		3.	This Agreement is subject to the law of the Federal Republic of Germany under exclusion of the conflict
of law provisions and the CISG.

 

		4.	All claims and disputes arising out of this Agreement shall be governed, as far as legally permissible,
by the courts of Munich (Landgericht München I).

 

     

     

    

 

		5.	Should any individual terms of this Agreement are or should become inoperative, the other terms shall
remain operative nonetheless. By mutual agreement, inoperative terms are to be replaced by such provisions which come as close as possible
to a successful commercial outcome. The same shall apply mutatis mutandis with regard to the filling of any loopholes.

 

[Signature page to follow]

 

 

     

     

    

 

	/s/ Jason Loveridge

    4SC AG,

    represented by Jason Loveridge	/s/ Hella Kohlhof

    Immunic AG,

    represented by Hella Kohlhof
	 	 
	 	 
	/s/ Daniel Vitt

    Immunic Inc,

    represented by Daniel VittExhibit 4.5

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

As
of March 31, 2021, Forum Merger III Corporation has three classes of securities registered under Section 12 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”): (1) our units; (2) our Class A common stock; and (3) our
warrants.

 

The following description
of our units, Class A common stock, and warrants is a summary and does not purport to be complete. It is subject to and qualified
in its entirety by reference to our amended and restated certificate of incorporation and our Bylaws (the “Bylaws”),
each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.5 is
a part. We encourage you to read our amended and restated certificate of incorporation, our Bylaws and the applicable provisions
of Delaware General Corporations Law (Title 8, Chapter 1 of the Delaware Code).

 

Terms not otherwise
defined herein shall have the meaning assigned to them in the Annual Report on Form 10-K of which this Exhibit 4.5 is a
part.

 

Description of Units

 

	1.	Public Units

 

Each unit has an offering
price of $10.00 and consists of one share of Class A common stock and one-third of one redeemable warrant. Each whole warrant
entitles the holder thereof to purchase one share of our Class A common stock at a price of $11.50 per share, subject to adjustment
as described in our prospectus (the “Prospectus”). Pursuant to the warrant agreement, a warrantholder
may exercise its warrants only for a whole number of shares of Class A common stock. This means only a whole warrant may be exercised
at any given time by a warrant holder. For example, if a warrant holder holds one-third or, two-thirds of one warrant to purchase
a share of Class A common stock, such warrant will not be exercisable. If a warrant holder holds three-thirds of one warrant, such
whole warrant will be exercisable for one share of Class A common stock at a price of 11.50 per share.

 

	2.	Private Placement Units

 

The private placement
units (including the private placement warrants or private placement shares issuable upon exercise of such warrants) are not transferable,
assignable or salable until 30 days after the completion of our initial business combination (except, among other limited exceptions
as described under the section of the Prospectus entitled “Principal Stockholders — Restrictions on Transfers of Founder
Shares and Private Placement Units,” to our officers and directors and other persons or entities affiliated with our sponsor).
Otherwise, the private placement units are identical to the units sold in our initial public offering (the “Public
Offering”) except that the private placement warrants, so long as they are held by our sponsor, the underwriters
or their permitted transferees, (i) are not redeemable by us, (ii) may be exercised by the holders on a cashless basis, (iii) are
entitled to registration rights and (iv) for so long as they are held by the underwriters, are not exercisable more than five years
from the effective date of the registration statement of which the Prospectus forms a part in accordance with FINRA Rule 5110(f)(2)(G)(i).

 

Description of Class A Common Stock

 

Pursuant to our amended and restated certificate
of incorporation, our authorized capital stock consists of 100,000,000 shares of Class A common stock, $0.0001 par value, 10,000,000
shares of Class B common stock, $0.0001 par value, and 1,000,000 shares of undesignated preferred stock, $0.0001 par value.

 

     

     

    

 

Common stockholders
of record are entitled to one vote for each share held on all matters to be voted on by stockholders. Holders of the Class A common
stock and holders of the Class B common stock vote together as a single class on all matters submitted to a vote of our stockholders,
except as required by law. Unless specified in our amended and restated certificate of incorporation or bylaws, or as required
by applicable provisions of the DGCL or applicable stock exchange rules, the affirmative vote of a majority of our shares of common
stock that are voted is required to approve any such matter voted on by our stockholders. Our board of directors is divided into
two classes, each of which generally serves for a term of two years with only one class of directors being elected in each year.
There is no cumulative voting with respect to the election of directors, with the result that the holders of more than 50% of the
shares voted for the election of directors can elect all of the directors. Our stockholders are entitled to receive ratable dividends
when, as and if declared by the board of directors out of funds legally available therefor.

 

Because our
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 an initial business combination, we may (depending on the terms of such an initial 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 initial business combination to the extent we seek stockholder approval in connection with our initial business combination.

 

In accordance
with Nasdaq corporate governance requirements, we are not required to hold an annual meeting until one year after our first fiscal
year end following our listing on Nasdaq. Under Section 211(b) of the DGCL, we are, however, required to hold 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 stockholders with the opportunity to redeem all or a portion of their public shares upon the completion of our initial business
combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account as of two
business days prior to the consummation of our initial business combination including interest (which interest shall be net of
taxes payable), divided by the number of then outstanding public shares, subject to the limitations described herein. The amount
in the trust account is initially anticipated to be approximately $10.00 per public share. The per-share amount we will distribute
to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions we will pay to the underwriters.
The redemption rights will include the requirement that a beneficial owner must identify itself in order to valid redeem its shares.
Our sponsor, officers and directors have entered into a letter agreement with us, pursuant to which they have agreed to waive their
redemption rights with respect to any founder shares and private placement shares held by them and any public shares they may acquire
during or after the Public Offering (including in open market and privately negotiated transactions) in connection with the completion
of our initial business combination. Unlike many blank check companies that hold stockholder votes and conduct proxy solicitations
in conjunction with their initial business combinations and provide for related redemptions of public shares for cash upon completion
of such initial business combinations even when a vote is not required by law, if a stockholder vote is not required by law and
we do not decide to hold a stockholder vote for business or other legal reasons, we will, pursuant to our amended and restated
certificate of incorporation, conduct the redemptions pursuant to the tender offer rules of the SEC, and file tender offer documents
with the SEC prior to completing our initial business combination. Our amended and restated certificate of incorporation requires
these tender offer documents to contain substantially the same financial and other information about the initial business combination
and the redemption rights as is required under the SEC’s proxy rules. If, however, a stockholder approval of the transaction
is required by applicable law or stock exchange listing requirements, or we decide to obtain stockholder approval for business
or other legal reasons, we will, like many blank check companies, offer to redeem shares in conjunction with a proxy solicitation
pursuant to the proxy rules and not pursuant to the tender offer rules. If we seek stockholder approval, we will complete our initial
business combination only if a majority of the then outstanding shares of common stock voted are voted in favor of the initial
business combination. A quorum for such meeting will consist of the holders present in person or by proxy of shares of outstanding
capital stock of the company representing a majority of the voting power of all outstanding shares of capital stock of the company
entitled to vote at such meeting.

 

    2

     

    

 

However, the
participation of our sponsor, officers, directors, advisors or their affiliates in privately-negotiated transactions (as described
in the Prospectus), 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 business combination. For purposes of seeking approval of the majority
of our outstanding shares of common stock voted, non-votes will have no effect on the approval of our initial business combination
once a quorum is obtained. These quorum and voting thresholds, and the voting agreements of our initial stockholders, may make
it more likely that we will consummate our initial business combination.

 

If we seek
stockholder approval of our initial business combination and we do not conduct redemptions in connection with our initial business
combination pursuant to the tender offer rules, our amended and restated certificate of incorporation provides that a public stockholder,
together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group”
(as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to more than an aggregate
of 15% of the shares of common stock sold in the Public Offering, which we refer to as the Excess Shares, without our prior consent.
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 the 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 stock in open
market transactions, potentially at a loss.

 

If we seek
stockholder approval in connection with our initial business combination, pursuant to the letter agreement our sponsor, officers
and directors have agreed to vote any founder shares and private placement shares held by them and any public shares acquired during
or after the Public Offering (including in open market and privately negotiated transactions) in favor of our initial business
combination. As a result, in addition to our initial stockholders’ founder shares and the private placement shares to be
issued to the sponsor, we would need only 9,004,376, or 36.02%, of the 25,000,000 public shares sold in the Public Offering to
be voted in favor of an initial business combination (assuming all outstanding shares are voted and the private placement shares
to be issued to the underwriters are voted in favor of the transaction) in order to have our initial business combination approved
(assuming the over-allotment option is not exercised). Additionally, each public stockholder may elect to redeem its public shares
irrespective of whether they vote for or against the proposed transaction (subject to the limitation described in the preceding
paragraph). Further, a quorum of 15,995,626 shares of our common stock present in person or by proxy is required to hold the stockholder
meeting to approve our initial business combination, and, assuming only the minimum number of shares representing a quorum are
voted, such approval would require the affirmative vote of 7,997,814 shares of our common stock, which means that, in addition
to our initial stockholders’ founder shares and the private placement shares to be issued to the sponsor, we would need only
1,006,564, or 4.03%, of the 25,000,000 public shares sold in the Public Offering to be voted in favor of an initial business combination
(assuming the private placement shares to be issued to the underwriters are present in person or by proxy and are voted in favor
of the transaction) in order to have our initial business combination approved.

 

Pursuant to
our amended and restated certificate of incorporation, if we are unable to complete our initial business combination within 24
months from the closing of the Public Offering, we will (i) cease all operations except for the purpose of winding up, (ii) as
promptly as reasonably possible but no more than ten business days thereafter subject to lawfully available funds therefor, redeem
the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account including
interest (which interest shall be net of taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by
the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as
stockholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible
following such redemption, subject to the approval of our remaining stockholders and our board of directors, liquidate and dissolve,
subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable
law. Our sponsor, officers and directors have entered into a letter agreement with us, pursuant to which they have agreed to waive
their rights to liquidating distributions from the trust account with respect to any founder shares and private placement shares
held by them if we fail to complete our initial business combination within 24 months from the closing of the Public Offering.
However, if our initial stockholders acquire public shares in or after the Public Offering, they will be entitled to liquidating
distributions from the trust account with respect to such public shares if we fail to complete our initial business combination
within the prescribed time period.

 

    3

     

    

 

In the event
of a liquidation, dissolution or winding up of the company after an initial business combination, our stockholders are entitled
to share ratably in all assets remaining available for distribution to them after payment of liabilities and after provision is
made for each class of stock, if any, having preference over the common stock. Our stockholders have no preemptive or other subscription
rights. There are no sinking fund provisions applicable to the common stock, except that we will provide our stockholders with
the opportunity to redeem their public shares for cash equal to their pro rata share of the aggregate amount then on deposit in
the trust account, upon the completion of our initial business combination, subject to the limitations described herein.

 

Description of Warrants

 

	1.	Public Stockholders’ Warrants

 

Each whole
warrant entitles the registered holder to purchase one share of our Class A common stock at a price of $11.50 per share, subject
to adjustment as discussed below, at any time commencing on the later of 12 months from the closing of the Public Offering and
30 days after the completion of our initial business combination, except as discussed in the immediately succeeding paragraph.
Pursuant to the warrant agreement, a warrantholder may exercise its warrants only for a whole number of shares of Class A common
stock. This means only a whole warrant may be exercised at a given time by a warrant holder. No fractional warrants will be issued
upon separation of the units and only whole warrants will trade. Accordingly, unless you purchase at least three 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 shares of Class A common stock pursuant to the exercise of a warrant and have no obligation to settle
such warrant exercise unless a registration statement under the Securities Act with respect to the issuance of the shares of Class
A common stock underlying the warrants is then effective and a prospectus relating thereto is current, subject to our satisfying
our obligations described below with respect to registration. No warrant is exercisable and we are not obligated to issue shares
of Class A common stock upon exercise of a warrant unless Class A common stock issuable upon such warrant exercise has been registered,
qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants.
In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to a warrant, the holder
of such warrant will not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In no event
will we be required to net cash settle any warrant. In the event that a registration statement is not effective for the exercised
warrants, the purchaser of a unit containing such warrant will have paid the full purchase price for the unit solely for the share
of Class A common stock underlying such unit.

 

We have agreed
that as soon as practicable, but in no event later than fifteen (15) 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 Class A common stock issuable upon exercise of the warrants. We will use our commercially reasonable efforts to cause
the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating
thereto, until the expiration of the warrants in accordance with the provisions of the warrant agreement. If a registration statement
covering the shares of Class A common stock issuable upon exercise of the warrants is not effective by the sixtieth (60th) business
day after the closing of our 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. Notwithstanding the
above, if 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 public warrants who exercise their warrants to do so on a “cashless basis” in accordance
with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect
a registration statement, and in the event we do not so elect, we will use our commercially reasonable efforts to register or qualify
the shares under applicable blue sky laws to the extent an exemption is not available. In such event, each holder would pay the
exercise price by surrendering the warrants for that number of shares of Class A common stock equal to the lesser of (A) the quotient
obtained by dividing (x) the product of the number of shares of Class A common stock underlying the warrants, multiplied by the
excess of the “fair market value” (defined below) less the exercise price of the warrants by (y) the fair market value
and (B) 0.361. The “fair market value” as used in this paragraph shall mean the volume weighted average price of the
Class A common stock for the 10 trading days ending on the trading day prior to the date on which the notice of exercise is received
by the warrant agent.

 

    4

     

    

 

Redemption of warrants when
the price per share of Class A common stock equals or exceeds $18.00

 

Once the warrants
become exercisable, we may call the warrants for redemption (except as described herein with respect to the private placement warrants):

 

		■	in whole and not in part;

 

		■	at a price of $0.01 per warrant;

 

		■	upon a minimum of 30 days’ prior written notice
of redemption (the “30-day redemption period”) to each warrantholder; and

 

		■	if, and only if, the closing price of the Class A common
stock equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise
price of a warrant as described under the section of the Prospectus entitled “— Warrants — Public Stockholders’
Warrants — Anti-Dilution Adjustments”) for any 20 trading days within a 30-trading day period ending on the third
trading day prior to the date on which we send the notice of redemption to the warrantholders.

 

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

 

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

 

Redemption of Warrants When
the Price Per Share of Class A Common Stock Equals or Exceeds $10.00

 

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

 

		■	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 of Class A common stock to be determined by reference to the table below, based on
the redemption date and the “fair market value” of our shares of Class A common stock (as defined below) except as
otherwise described below;

 

		■	if, and only if, the closing price of our Class A common
stock equals or exceeds $10.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise
price of a warrant as described under the section of the Prospectus entitled “— Warrants — Public Stockholders’
Warrants — Anti-Dilution Adjustments”) for any 20 trading days within a 30-trading day period ending on the third
trading day prior to the date on which we send the notice of redemption to the warrant holders; and

 

		■	if the closing price of our Class A common stock for
any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice
of redemption to the warrant holders is less than $18.00 per share (as adjusted for adjustments to the number of shares issuable
upon exercise or the exercise price of a warrant as described under the section of the Prospectus entitled “— Warrants —
Public Stockholders’ Warrants — Anti-Dilution Adjustments”), the private placement warrants must also be concurrently
called for redemption on the same terms as the outstanding public warrants, as described above.

 

    5

     

    

 

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

 

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

 

The share
prices set forth in the column headings of the table below will be adjusted as of any date on which the number of shares issuable
upon exercise of a warrant or the exercise price of a warrant is adjusted as set forth under the heading “— Anti-Dilution
Adjustments” below.

 

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

 

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

 

    6

     

    

 

The exact
fair market value and redemption date may not be set forth in the table above, in which case, if the fair market value is between
two values in the table or the redemption date is between two redemption dates in the table, the number of shares of Class A common
stock to be issued for each warrant exercised will be determined by a straight-line interpolation between the number of shares
set forth for the higher and lower fair market values and the earlier and later redemption dates, as applicable, based on a 365-
or 366-day year, as applicable. For example, if the volume weighted average price of our shares of Class A common stock during
the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of the warrants is
$11.00 per share, and at such time there are 57 months until the expiration of the warrants, holders may choose to, in connection
with this redemption feature, exercise their warrants for 0.277 shares of Class A common stock for each whole warrant.

 

For an example
where the exact fair market value and redemption date are not as set forth in the table above, if the volume weighted average price
of our shares of Class A common stock during the 10 trading days immediately following the date on which the notice of redemption
is sent to the holders of the warrants is $13.50 per share, and at such time there are 38 months until the expiration of the warrants,
holders may choose to, in connection with this redemption feature, exercise their warrants for 0.298 shares of Class A common stock
for each whole warrant. In no event will the warrants be exercisable on a cashless basis in connection with this redemption feature
for more than 0.361 shares of Class A common stock per warrant (subject to adjustment). Finally, as reflected in the table above,
if the warrants are out of the money and about to expire, they cannot be exercised on a cashless basis in connection with a redemption
by us pursuant to this redemption feature, since they will not be exercisable for any shares of Class A common stock.

 

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 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 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 Class A
Common Stock Equals or Exceeds $18.00.” Holders choosing to exercise their warrants in connection with a redemption pursuant
to this feature will, in effect, receive a number of shares for their warrants based on an option pricing model with a fixed volatility
input as of the date of the Prospectus. This redemption right provides us with an additional mechanism by which to redeem all of
the outstanding warrants, and therefore have certainty as to our capital structure as the warrants would no longer be outstanding
and would have been exercised or redeemed and 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 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 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 shares of Class A common stock than they would have received if they had
chosen to wait to exercise their warrants for shares of Class A common stock if and when such shares of Class A common stock were
trading at a price higher than the exercise price of $11.50.

 

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

 

    7

     

    

 

Redemption Procedures

 

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

 

Anti-Dilution Adjustments

 

If the number
of outstanding shares of Class A common stock is increased by a stock dividend payable in shares of Class A common stock, or by
a split-up of shares of Class A common stock or other similar event, then, on the effective date of such stock dividend, split-up
or similar event, the number of shares of Class A common stock issuable on exercise of each warrant will be increased in proportion
to such increase in the outstanding shares of Class A common stock. A rights offering to holders of Class A common stock entitling
holders to purchase shares of Class A common stock at a price less than the “historical fair market value” (as defined
below) will be deemed a stock dividend of a number of shares of Class A common stock equal to the product of (i) the number of
shares of Class A common stock actually sold in such rights offering (or issuable under any other equity securities sold in such
rights offering that are convertible into or exercisable for Class A common stock) and (ii) one (1) minus the quotient of (x) the
price per share of Class A common stock paid in such rights offering and divided by (y) the historical fair market value. For these
purposes (i) if the rights offering is for securities convertible into or exercisable for Class A common stock, in determining
the price payable for Class A common stock, there will be taken into account any consideration received for such rights, as well
as any additional amount payable upon exercise or conversion and (ii) “historical fair market value” means the volume
weighted average price of Class A common stock as reported during the ten (10) trading day period ending on the trading day prior
to the first date on which the shares of Class A common stock trade on the applicable exchange or in the applicable market, regular
way, without the right to receive such rights.

 

In addition,
if we, at any time while the warrants are outstanding and unexpired, pay a dividend or make a distribution in cash, securities
or other assets to the holders of Class A common stock on account of such shares of Class A common stock (or other shares of our
capital stock into which the warrants are convertible), other than (a) as described above, (b) certain ordinary cash dividends,
(c) to satisfy the redemption rights of the holders of Class A common stock in connection with a proposed initial business combination,
(d) to satisfy the redemption rights of the holders of Class A common stock in connection with a stockholder vote to amend our
amended and restated certificate of incorporation (i) to modify the substance or timing of our obligation to redeem 100% of our
Class A common stock if we do not complete our initial business combination within 24 months from the closing of the Public Offering
or (ii) with respect to any other material provisions relating to stockholders’ rights or pre-initial business combination
activity, or (e) in connection with the redemption of our public shares upon our failure to complete our initial business combination,
then the warrant exercise price will be decreased, effective immediately after the effective date of such event, by the amount
of cash and/or the fair market value of any securities or other assets paid on each share of Class A common stock in respect of
such event.

 

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

 

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

 

    8

     

    

 

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

 

In case of
any reclassification or reorganization of the outstanding shares of Class A common stock (other than those described above or that
solely affects the par value of such shares of Class A common stock), or in the case of any merger or consolidation of us with
or into another corporation (other than a consolidation or merger in which we are the continuing corporation and that does not
result in any reclassification or reorganization of our outstanding shares of Class A common stock), or in the case of any sale
or conveyance to another corporation or entity of the assets or other property of us as an entirety or substantially as an entirety
in connection with which we are dissolved, the holders of the warrants will thereafter have the right to purchase and receive,
upon the basis and upon the terms and conditions specified in the warrants and in lieu of the shares of our Class A common stock
immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of
shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger
or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the warrants would have received
if such holder had exercised their warrants immediately prior to such event. If less than 70% of the consideration receivable by
the holders of Class A common stock in such a transaction is payable in the form of Class A common stock in the successor entity
that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to be
so listed for trading or quoted immediately following such event, and if the registered holder of the warrant properly exercises
the warrant within thirty days following public disclosure of such transaction, the warrant exercise price will be reduced as specified
in the warrant agreement based on the Black-Scholes value (as defined in the warrant agreement) of the warrant. The purpose of
such exercise price reduction is to provide additional value to holders of the warrants when an extraordinary transaction occurs
during the exercise period of the warrants pursuant to which the holders of the warrants otherwise do not receive the full potential
value of the warrants in order to determine and realize the option value component of the warrant. This formula is to compensate
the warrant holder for the loss of the option value portion of the warrant due to the requirement that the warrant holder exercise
the warrant within 30 days of the event. The Black-Scholes model is an accepted pricing model for estimating fair market value
where no quoted market price for an instrument is available.

 

The warrants
are issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant
agent, and us. You should review a copy of the warrant agreement, which was filed as an exhibit to the registration statement of
which the Prospectus is a part, for a complete description of the terms and conditions applicable to the warrants. The warrant
agreement provides that the terms of the warrants may be amended without the consent of any holder for the purpose of curing any
ambiguity or to correct any defective provision or mistake, including to conform the provisions of the warrant agreement to the
description of the terms of the warrants and the warrant agreement set forth in the Prospectus, provided that the approval by the
holders of at least 50% of the then outstanding public warrants is required to make any change that adversely affects the interests
of the registered holders of the public warrants.

 

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 warrantholders do not have the rights or privileges of holders of Class A common stock
and any voting rights until they exercise their warrants and receive shares of Class A common stock. After the issuance of shares
of Class A common stock upon exercise of the warrants, each holder will be entitled to one (1) vote for each share held of record
on all matters to be voted on by stockholders.

 

    9

     

    

 

No fractional
shares will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive a
fractional interest in a share, we will, upon exercise, round down to the nearest whole number of shares of Class A common stock
to be issued to the warrantholder.

 

	2.	Private Placement Warrants

 

The private
placement warrants (including the Class A common stock issuable upon exercise of the private placement warrants) are not transferable,
assignable or salable until 30 days after the completion of our initial business combination (except, among other limited exceptions
as described under the section of the Prospectus entitled “Principal Stockholders — Restrictions on Transfers of Founder
Shares and Private Placement Units,” to our officers and directors and other persons or entities affiliated with our sponsor
or the underwriters) and they are not redeemable by us (except as described above under “— Redemption of Warrants When
the Price Per Share of Class A Common Stock Equals or Exceeds $10.00”) so long as they are held by our sponsor, the underwriters
or their permitted transferees. Our sponsor, the underwriters and their permitted transferees, have the option to exercise the
private placement warrants on a cashless basis. 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 the Public Offering, including as to exercise price,
exercisability and exercise period. If the private placement warrants are held by holders other than our sponsor, the underwriters
or their 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 the Public Offering.

 

In addition,
for as long as the private placement warrants are held by the underwriters or their designees or affiliates, they may not be exercised
after five years from the effective date of the registration statement of which the Prospectus forms a part.

 

Except as
described under the section of the Prospectus entitled “— Public Stockholders’ Warrants — Redemption of
Warrants When the Price Per Share of Class A Common Stock Equals or Exceeds $10.00,” if holders of the private placement
warrants elect to exercise them on a cashless basis, they would pay the exercise price by surrendering their warrants for that
number of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of
Class A common stock underlying the warrants, multiplied by the excess of the “sponsor fair market value” (defined
below) over the exercise price of the warrants by (y) the sponsor fair market value. The “sponsor fair market value”
will mean the average reported closing price of the Class A common stock for the 10 trading days ending on the third trading
day prior to the date on which the notice of warrant exercise is sent to the warrant agent. The reason that we have agreed that
these warrants will be exercisable on a cashless basis so long as they are held by our sponsor, the underwriters or their permitted
transferees is because it is not known at this time whether they will be affiliated with us following an initial business combination.
If they remain affiliated with us, their ability to sell our securities in the open market will be significantly limited. We have
policies in place that prohibit insiders from selling our securities except during specific periods of time. Even during such periods
of time when insiders will be permitted to sell our securities, an insider cannot trade in our securities if he or she is in possession
of material non-public information. Accordingly, unlike public stockholders who typically could sell the shares of Class A common
stock issuable upon exercise of the warrants freely in the open market, the insiders could be significantly restricted from doing
so. As a result, we believe that allowing the holders to exercise such warrants on a cashless basis is appropriate.

 

In addition,
holders of our private placement warrants are entitled to certain registration rights and any private placement warrants held by
the underwriters are not exercisable more than five years from the effective date of the registration statement of which the Prospectus
forms a part.

 

Our sponsor
and the underwriters have agreed not to transfer, assign or sell any of the private placement units (including the underlying securities
and the Class A common stock issuable upon exercise of any of the private placement warrants) until the date that is 30 days after
the date we complete our initial business combination, except that, among other limited exceptions as described under the section
of the Prospectus entitled “Principal Stockholders — Restrictions on Transfers of Founder Shares and Private placement
units” made to our officers and directors and other persons or entities affiliated with our sponsor.

 

    10

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