Company: MACIW
Filing Date: 2025-08-05
Form Type: 425
Source: 0001104659-25-074244
Chunk: 3

Company: Melar Acquisition Corp. I/Cayman
Filing Date: 2025-08-05
Form: 425
Chunk 3
---
 be mutually agreed, pursuant to which Melar shall issue to the Escrow Agent from the Merger Consideration Shares otherwise
issuable to the Escrowed Seller, 1,500,000 shares of Melar common stock (which will solely consist of Melar Class A common stock, except
to the extent that there are not a sufficient number of shares of Melar Class A common stock that would otherwise be issuable to the Escrowed
Seller, in which case, Melar Class B common stock will be used to make up such shortfall) (together with any equity securities paid as
dividends or distributions with respect to such shares or into which such shares are exchanged or converted, the “Escrow Shares”)
to be held, along with any other dividends, distributions or other income on the Escrow Shares (together with the Escrow Shares, the “Escrow Property”), in a segregated escrow account (the “Escrow Account”) for a period commencing on the
Closing and ending on the date that is twenty-four (24) months thereafter (the “Escrow Release Date”). The Escrow
Property shall be subject to forfeiture upon the occurrence of certain specified events occurring prior to the Escrow Release Date, and
it may be released from the Escrow Account to the Escrowed Seller prior to the Escrow Release Date upon certain conditions as set forth
in the Merger Agreement.

Representations and Warranties

The Merger
Agreement contains customary representations and warranties made by each of Melar and Everli. Certain of the representations and warranties
are qualified by materiality or Material Adverse Effect, as well as information provided in the disclosure schedules to the Merger Agreement.
As used in the Merger Agreement, “Material Adverse Effect” means, with respect to any specified person or entity,
any fact, event, occurrence, change or effect that has had, or would reasonably be expected to have, individually or in the aggregate,
a material adverse effect upon (i) the business, assets, liabilities, customer relationships, operations, results of operations or condition
(financial or otherwise) of such person or entity and its subsidiaries, taken as a whole, or (ii) the ability of such person or entity
or any of its subsidiaries on a timely basis to consummate the transactions contemplated by the Merger Agreement or the ancillary documents
relating to the Merger Agreement to which it is or is required to be a party or bound or to perform its