Company: APAD
Filing Date: 2025-11-28
Form Type: 8-K
Source: 0001213900-25-115724
Chunk: 7

Company: AParadise Acquisition Corp.
Filing Date: 2025-11-28
Form: 8-K
Item: Item 1.01
Chunk 7
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) Apeiron paid the Sponsor a
deposit of $5,500,000, which is generally non-refundable, subject to certain exceptions, and (iii) the parties agreed to certain
termination fee arrangements as described below.

Under the terms of
the Sponsor Equity Agreement, following the closing of the Business Combination, and during the 90-day period thereafter, the
Sponsor will have the right to sell (the “ Put Option”) to Apeiron up to 100%, and Apeiron will have the right to require
the Sponsor to sell (the “ Call Option”) to Apeiron, up to 100% (and not less than 78%) of the Sponsor Securities, free
and clear of liens (other than certain customary restrictions). The purchase price for the Sponsor Securities pursuant to the Put
Option or Call Option will be determined based on the percentage of Sponsor Securities delivered, as set forth in the Sponsor Equity
Agreement, less the deposit amount previously paid by Apeiron. The maximum purchase price for the Put Option and Call Option are in
a range of $6,700,000 to $9,000,000 and in a range of $11,000,000 to $15,500,000, respectively, in each case depending on the number
of shares received and, furthermore, in each case less the deposit previously paid by Apeiron. The Put Option and Call Option may
only be exercised during the specified option period and are subject to certain procedural and closing conditions set forth in the
Sponsor Equity Agreement.

Additionally, the Sponsor
Equity Agreement provides for the payment by the Sponsor to Apeiron of a termination fee of up to $4,875,000 under certain circumstances
if the Business Combination Agreement is terminated due to a willful breach by A Paradise or its affiliates, including the Sponsor. The
amount of the termination fee is subject to specific milestones relating to the preparation and filing of the proxy statement/registration
statement for the Business Combination.

The Sponsor Equity Agreement
also contains customary representations, warranties and covenants of the parties, including a lock-up on the transfer of Sponsor Securities
during the option period, covenants relating to regulatory approvals and cooperation, and other customary provisions.

A copy of the Sponsor
Equity Agreement is filed with this Current Report on Form 8-K as Exhibit 10.3, and is incorporated herein by reference, and the foregoing
description of the Sponsor Equity Agreement is qualified in its entirety