Company: APAD
Filing Date: 2025-11-28
Form Type: 425
Source: 0001213900-25-115733
Chunk: 10

Company: AParadise Acquisition Corp.
Filing Date: 2025-11-28
Form: 425
Chunk 10
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 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 by reference thereto.

Additional Agreements Executed Before Signing

Simple Agreements for Future Equity

Immediately prior to
execution of the Business Combination Agreement, Enhanced entered into simple agreements for future equity (each, a “SAFE”)
with certain investors (each, a “SAFE investor”) pursuant to an equity private placement that contemplates that, upon consummation
of the Business Combination, all outstanding SAFEs issued by Enhanced will automatically convert, immediately prior to the closing of
the Business Combination, into Enhanced Group Class A common stock in accordance with their terms. The number of shares of Enhanced Group
Class A common stock to be issued upon conversion will be determined by dividing each SAFE investor’s purchase amount by Enhanced’s
pre-money valuation cap of $1.2 billion, multiplied by the fully diluted capitalization of Enhanced immediately prior to the Business
Combination. As a result, the SAFE holders will collectively receive a number of shares of Enhanced Group Class A common stock representing
their pro rata ownership percentage in Enhanced Group on a fully diluted basis. Concurrently with such conversion, Enhanced Group will
also issue to the SAFE investors warrants equal to fifty percent (50%) of the number of shares of Enhanced Group Class A common stock
received upon conversion, each exercisable for one share of Class A common stock at a per-share price equal to the conversion price determined
under the SAFE. Such warrants will have a two-year exercise period. In addition, the SAFE documents provide for a partial early release
from a lock-up applicable to Enhanced securityholders upon completion of the Business Combination, as a result of which many SAFE investors
are existing Enhanced shareholders, and therefore should not be seen as a third party validation of the valuation of the Business Combination.

Additional Agreement to be Executed at Closing

The Business Combination
Agreement provides that, upon consummation of the transactions, the parties will enter into the following additional agreement, among
others.

Registration Rights Agreement

At the closing,
Enhanced Group, certain Enhanced Stockholders, Cohen and Company Capital Markets, a division of Cohen & Company Securities, LLC, and
Sponsor will enter into a registration rights agreement (the “Registration Rights Agreement”). Pursuant to the Registration
Rights Agreement, Enhanced Group will be required to register for resale securities held by the stockholders party thereto.