Exhibit 10.9


 


[______], 2018


 


Mudrick Capital Acquisition Corporation


527 Madison Avenue, 6th Floor


New York, NY 10022


 


		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 Mudrick Capital Acquisition Corporation, a Delaware corporation (the “Company”),
and Cantor Fitzgerald & Co. (the “Representative”) as representative of the several underwriters
(each, an “Underwriter” and collectively, the “Underwriters”), relating to
an underwritten initial public offering (the “Public Offering”), of 23,000,000 of
the Company’s units (including up to 3,000,000 units that may be purchased to cover over-allotments, if any) (the “Units”),
each comprised of one share of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”),
and one redeemable warrant. Each Warrant (each, a “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 prospectus (the “Prospectus”) filed by the Company
with the U.S. Securities and Exchange Commission (the “Commission”) and the Company has applied to have
the Units listed on The Nasdaq Capital Market. Certain capitalized terms used herein are defined in paragraph 12 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, each of the undersigned individuals (each, a “Director”
and collectively, the “Directors”), each of whom is a member of the Company’s board of directors
(the “Board”), hereby agrees with the Company as follows:


 


		1.	(a)
Each Director agrees to serve as a member of the Board until the earlier of (i) the annual meeting for the year in which his term
expires and until his or her successor has been elected and qualified, (ii) his death, resignation, retirement, disqualification
or removal or (iii) the liquidation of the Company. Membership on the Board shall require adherence to the policies and procedures
adopted by the Board and enforceable upon all directors.


 


(b) Each Director shall, for so long
as he remains a member of the Board, fulfill the duties of a director of a Delaware corporation and, as requested by the Chairman
of the Board and the Chief Executive Officer of the Company, (i) meet with management and/or members of the Board, at dates and
times mutually agreeable to Director and the Company, to discuss any matter involving the Company, the Public Offering or a Business
Combination, and cooperate in the review of such matters, (ii) review and participate in the analysis of all materials regarding
a Business Combination that are provided to the Board by management, (iii) attend due diligence meetings relating to potential
Business Combinations, (iv) participate in road shows relating to the Business Combination, and/or (v) play an active role in the
negotiation, due diligence, structuring, closing and all other processes of any potential Business Combination (collectively, the
“Director Responsibilities”).


 


	 	2.	(a) During the term of this Agreement, the Company shall reimburse each Director on a monthly basis for all reasonable out-of-pocket expenses incurred by each Director in connection with fulfilling the Director Responsibilities; provided, however, that each Director complies with the applicable policies, practices and procedures of the Company and submits proper expense reports, receipts or similar documentation of such expenses as the Company may require.


 


(b) Each Director’s status
during the term of this Agreement shall be that of an independent contractor and not, for any purpose, that of an employee. All
payments and other consideration made or provided to each Director shall be made or provided without withholding or deduction of
any kind, and each Director shall assume sole responsibility for discharging all tax or other obligations associated therewith.


 




     


     


    

 


	 	3.	Each Director agrees that if the Company seeks stockholder approval of a proposed Business Combination, then in connection with such proposed Business Combination, he shall (i) vote any shares of Capital Stock owned by him in favor of any proposed Business Combination and (ii) not redeem any shares of Common Stock owned by him in connection with such stockholder approval.


 


	 	4.	Each Director hereby agrees that in the event that the Company fails to consummate a Business Combination within 24 months from the closing of the Public Offering, or such later period approved by the Company’s stockholders in accordance with the Company’s amended and restated certificate of incorporation (the “Charter”), each Director 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, subject to lawfully available funds therefor, redeem 100% of the Common Stock sold as part of the Units in the Public Offering (the “Offering Shares”), at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account (as defined below), including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its franchise and income taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Offering Shares, which redemption will completely extinguish all Public Stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Board, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and other requirements of applicable law. Each Director agrees to not propose any amendment to the Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the Offering Shares if the Company does not complete a Business Combination within 24 months from the closing of the Public Offering, unless the Company provides its public stockholders with the opportunity to redeem their shares of Common Stock 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 its franchise and income taxes, divided by the number of then outstanding Offering Shares.


 


Each Director acknowledges he 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 with respect to the Founder Shares, if any, held by him. Each Director hereby further waives, with respect to any
shares of Common Stock held by him, if any, any redemption rights 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 to modify the substance or timing of the Company’s
obligation to redeem 100% of the Offering Shares if the Company has not consummated a Business Combination within the time period
set forth in the Charter or in the context of a tender offer made by the Company to purchase shares of Common Stock (although the
Directors and their respective affiliates shall be entitled to redemption and liquidation rights with respect to any Offering Shares
they hold if the Company fails to consummate a Business Combination within 24 months from the date of the closing of the Public
Offering).


 


	 	5.	During the period commencing on the effective date of the Underwriting Agreement and ending 180 days after such date, each Director shall not, without the prior written consent of the Representative, (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent position or liquidate or decrease 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 Units, shares of Common Stock, Founder Shares, Warrants or any securities convertible into, or exercisable, or exchangeable for, shares of Common Stock owned by him, (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any Units, shares of Common Stock, Founder Shares, Warrants or any securities convertible into, or exercisable, or exchangeable for, shares of Common Stock owned by him, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (iii) publicly announce any intention to effect any transaction specified in clause (i) or (ii). Each of the Directors acknowledges and 


 




     


     


    

 


	
        
	 	agrees that, prior to the effective date of any release or waiver, of the restrictions set forth in this paragraph 5 or paragraph 8 below, the Company shall announce the impending release or waiver by press release through a major news service at least two business days before the effective date of the release or waiver. Any release or waiver granted shall only be effective two business days after the publication date of such press release. The provisions of this paragraph will not apply if the release or waiver is effected solely to permit a transfer not for consideration and the transferee has agreed in writing to be bound by the same terms described in this Letter Agreement to the extent and for the duration that such terms remain in effect at the time of the transfer.


 


	 	6.	[reserved]


 


	 	7.	(a) Each Director hereby agrees not to participate in the formation of, or become an officer or director of, any other any other blank check company such as the Company until the Company has entered into a definitive agreement regarding an initial Business Combination or unless the Company has failed to complete a Business Combination within the time period set forth in the Charter.


 


(b) Each Director hereby agrees and acknowledges that:
(i) the Underwriters and the Company would be irreparably injured in the event of a breach by such Director of his obligations
under paragraphs 3, 4, 5, 6, 7(a), 8(a), 8(b) and 10, as applicable, of this Letter Agreement (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.


 


	 	8.	(a) Each Director agrees that he shall not Transfer any Founder Shares (or shares of Common Stock issuable upon conversion thereof) until the earlier of (A) one year after the completion of the Company’s initial Business Combination or (B) subsequent to the Business Combination, (x) if the last sale 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 any 30-trading day period commencing at least 150 days after the Company’s initial Business Combination or (y) the date 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 shares of Common Stock for cash, securities or other property (the “Founder Shares Lock-up Period”).


 


(b) Each Director agrees that he shall not Transfer any
Private Placement Warrants (or shares of Common Stock issued or issuable upon the exercise of the Private Placement Warrants),
until 30 days after the completion of a Business Combination (the “Private Placement Warrants Lock-up Period”,
together with the Founder Shares Lock-up Period, the “Lock-up Periods”).


 


(c) Notwithstanding the provisions set forth in paragraphs
8(a) and (b), Transfers of the Founder Shares, Private Placement Warrants and shares of Common Stock issued or issuable upon the
exercise or conversion of the Private Placement Warrants or the Founder Shares and that are held by any Director or any of their
permitted transferees (that have complied with this paragraph 8(c)), are permitted (a) to the Company’s officers or directors,
any affiliate or family member of any of the Company’s officers or directors or any affiliate of Mudrick Capital Acquisition
Holdings LLC (the “Sponsor”) or to any member(s) of the Sponsor or any of their affiliates; (b) in the
case of an individual, as a gift to such individual’s immediate family or to a trust, the beneficiary of which is a member
of such individual’s immediate family, an affiliate of such individual or to a charitable organization; (c) in the case of
an individual, by virtue of laws of descent and distribution upon death of such 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 any forward purchase agreement
or similar arrangement or in connection with the consummation of a Business Combination at prices no greater than the price at
which the shares or warrants were originally purchased; (f) by virtue of the laws of the State of Delaware or the Sponsor’s
limited liability company agreement upon dissolution of the Sponsor; (g) in the event of the Company’s liquidation prior
to the completion of a Business Combination; or (h) in the event that, subsequent to the consummation of a Business Combination,
the Company consummates a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Company’s
stockholders having the right to exchange their shares of Common Stock for cash, securities or other property; provided, however,
that in


 




     


     


    

 


the case of clauses (a) through (f), these permitted transferees
must enter into a written agreement with the Company agreeing to be bound by the transfer restrictions herein.


 


	 	9.	Each Director represents and warrants that he 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. Each Director’s biographical information furnished to the Company (including any such information included in the Prospectus) is true and accurate in all respects and does not omit any material information with respect to the Director’s background. Each Director’s questionnaire furnished to the Company is true and accurate in all respects. Each Director represents and warrants that: he 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; he 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 he is not currently a defendant in any such criminal proceeding.


 


	 	10.	Except
    as disclosed in the Prospectus, neither the Sponsor nor any officer, nor any affiliate of the Sponsor or any officer, nor any
    director of the Company, shall receive from the Company any finder’s fee, reimbursement, consulting fee, monies in
    respect of any repayment 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), other than the following, none of which will be made from the proceeds held in the Trust Account prior to the
    completion of the initial Business Combination:  repayment of a loan and advances up to an aggregate of $300,000 made to
    the Company by the Sponsor; payment to an affiliate of the Sponsor for certain office space, utilities and secretarial and
    administrative support as may be reasonably required by the Company for a total of $10,000 per month; reimbursements pursuant
    to Section 2(a) of this Letter Agreement, including reimbursement for any reasonable out-of-pocket expenses related to
    identifying, investigating and consummating an initial Business Combination, and repayment of loans, if any, and on such
    terms as to be determined by the Company from time to time, made by the Sponsor or any of the Company’s officers or
    directors to finance transaction costs in connection with an intended initial Business Combination, provided that,
    if the Company does not consummate an initial Business Combination, a portion of the working capital held outside the Trust
    Account may be used by the Company to repay such loaned amounts so long as no proceeds from the Trust Account are used for
    such repayment. Up to $1,500,000 of such loans may be convertible into warrants at a price of $1.00 per warrant at the option
    of the lender. Such warrants would be identical to the Private Placement Warrants, including as to exercise price,
    exercisability and exercise period.


 


	 	11.	Each Director has full right and power, without violating any agreement to which 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 and to serve as a director on the Board and hereby consents to being named in the Prospectus as a director of the Company.


 


	 	12.	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) “Capital Stock” shall mean, collectively, the Common Stock and the Founder Shares; (iii) “Founder Shares” shall mean (a) the 5,750,000 shares of the Company’s Class B common stock, par value $0.0001 per share, initially issued to the Sponsor (up to 750,000 Shares of which are subject to complete or partial forfeiture by the Sponsor if the over-allotment option is not exercised by the Underwriters) for an aggregate purchase price of $25,000, or $0.004 per share, prior to the consummation of the Public Offering; (iv) “Initial Stockholders” shall mean the Sponsor and any Insider that holds Founder Shares; (v) “Private Placement Warrants” shall mean the Warrants to purchase up to 7,500,000 shares of Common Stock of the Company (or 8,400,000 shares of Common Stock if the over-allotment option is exercised in full) that the Sponsor and the Representative have agreed to purchase for an aggregate purchase price of $7,500,000 in the aggregate (or $8,400,000 if the over-allotment option is exercised in full), or $1.00 per Warrant, in a private placement that shall occur simultaneously with the consummation of the Public Offering; (vi) “Public Stockholders” shall mean the holders of securities issued in the Public Offering; (vii) “Trust Account” shall mean the trust fund into which a portion of the net proceeds of the Public Offering 


 




     


     


    

 


	
        
	 	shall be deposited; and (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).


 


	 	13.	The Company will maintain an insurance policy or policies providing directors’ and officers’ liability insurance, and each Director 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.


 


	 	14.	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.


 


	 	15.	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 each Director and their respective successors, heirs and assigns and permitted transferees.


 


	 	16.	Nothing in this Letter Agreement shall be construed to confer upon, or give to, any person or corporation other than the parties hereto any right, remedy or claim under or by reason of this Letter Agreement or of any covenant, condition, stipulation, promise or agreement hereof. All covenants, conditions, stipulations, promises and agreements contained in this Letter Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors, heirs, personal representatives and assigns and permitted transferees.


 


	 	17.	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.


 


	 	18.	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.


 


	 	19.	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.


 


	 	20.	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.


 




     


     


    

 


	 	21.	This Letter Agreement shall terminate on the earlier of (i) the expiration of the Lock-up Periods or (ii) the liquidation of the Company; provided, however, that this Letter Agreement shall earlier terminate in the event that the Public Offering is not consummated and closed by March 31, 2018.


 


[Signature Page Follows]


 




     


     


    

 


	 	Sincerely,
	 	 
	 	DIRECTORS:
	 	 	 
	 	By:	 
	 	 	Name: Dennis Stogsdill
	 	 	 
	 	By:	 
	 	 	Name:  Timothy Daileader
	 	 	 
	 	By:	 
	 	 	Name:  Brian Kushner
	 	 	 


 


	MUDRICK CAPITAL ACQUISITION CORPORATION	 
	 	 	 
	By:	 	 
	 	Name: Jason Mudrick	 
	 	Title: Chief Executive Officer	 


 


[Signature Page to Letter Agreement]