Document:

Exhibit 10.2

 

INVESTMENT MANAGEMENT TRUST AGREEMENT

 

This Investment Management
Trust Agreement (this “Agreement”) is made as of June 29, 2021 by and between Mountain Crest Acquisition Corp. IV (the
“Company”) and Continental Stock Transfer & Trust Company, a New York corporation (the “Trustee”).

 

WHEREAS, the Company’s
registration statement on Form S-1, No. 333-256449 (“Registration Statement”), for its initial public offering
of securities (“IPO”) has been declared effective as of the date hereof (“Effective Date”) by the U.S. Securities
and Exchange Commission (capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Registration
Statement); and

 

WHEREAS, Network 1 Financial
Securities, Inc. (“Network 1”) is acting as the representative of the underwriters in the IPO; and

 

WHEREAS, simultaneously with
the IPO, Mountain Crest Holdings IV LLC will be purchasing up to 195,000 private units (“Private Placement Units”) at $10.00
per private unit.

 

WHEREAS, as described in
the Registration Statement, and in accordance with the Company’s Amended and Restated Certificate of Incorporation, as the same
may be amended from time to time (the “Charter”), $50,000,000 of the gross proceeds of the IPO and sale of the Private Placement
Units ($57,500,000 if the underwriters’ over-allotment option is exercised in full) will be delivered to the Trustee to be deposited
and held in a segregated trust account located at all times in the United States (the “Trust Account”) for the benefit of
the Company and the holders of the Company’s shares of common stock, par value $0.0001 per share (“Common Stock”),
issued in the IPO as hereinafter provided (the amount to be delivered to the Trustee will be referred to herein as the “Property”;
the shareholders for whose benefit the Trustee shall hold the Property will be referred to as the “Public Shareholders,”
and the Public Shareholders and the Company will be referred to together as the “Beneficiaries”); and

 

WHEREAS, pursuant to the
Underwriting Agreement, a portion of the Property equal to $1,500,000, or $1,725,000 if the underwriters’ over-allotment option
is exercised in full, is attributable to deferred underwriting discounts and commissions that may become payable by the Company to the
underwriters upon the consummation of an initial business combination (as described in the Registration Statement, a “Business
Combination”) (the “Deferred Discount”); and

 

WHEREAS, the Company and
the Trustee desire to enter into this Agreement to set forth the terms and conditions pursuant to which the Trustee shall hold the Property.

 

IT IS AGREED:

 

1. Agreements and Covenants of Trustee.
The Trustee hereby agrees and covenants to:

 

(a) Hold the Property
in trust for the Beneficiaries in accordance with the terms of this Agreement in a segregated trust account (“Trust Account”)
established by the Trustee in the United States at JPMorgan Chase Bank, maintained by Trustee, and at a brokerage institution selected
by the Trustee that is reasonably satisfactory to the Company;

 

(b) Manage, supervise
and administer the Trust Account subject to the terms and conditions set forth herein;

 

(c) In a timely manner,
upon the instruction of the Company, invest and reinvest the Property (i) [in United States government treasury bills, notes or
bonds having a maturity of 180 days or less and/or (ii) in money market funds meeting certain conditions under Rule 2a-7 promulgated
under the Investment Company Act of 1940, as amended, and that invest solely in U.S. treasuries, as determined by the Company; it being
understood that the Trust Account will earn no interest while account funds are uninvested awaiting the Company’s instructions
hereunder and that Trustee may earn bank credits or other consideration;

 

     

     

    

 

(d) Collect and receive,
when due, all principal and income arising from the Property, which shall become part of the “Property,” as such term is
used herein;

 

(e) Notify the Company
and the Underwriters of all communications received by it with respect to any Property requiring action by the Company;

 

(f) Supply any necessary
information or documents as may be requested by the Company in connection with the Company’s preparation of its tax returns;

 

(g) Participate in any
plan or proceeding for protecting or enforcing any right or interest arising from the Property if, as and when instructed by the Company
to do so;

 

(h) Render to the Company
monthly written statements of the activities of and amounts in the Trust Account reflecting all receipts and disbursements of the Trust
Account; and

 

(i) Commence liquidation
of the Trust Account only after and promptly after receipt of, and only in accordance with, the terms of a letter (“Termination
Letter”), in a form substantially similar to that attached hereto as either Exhibit A or Exhibit B, signed on behalf
of the Company by its President, Chief Executive Officer or Chairman of the Board and Secretary or Assistant Secretary and, in the case
of a Termination Letter in a form substantially similar to that attached hereto as Exhibit A, acknowledged and agreed to by Network
1, and complete the liquidation of the Trust Account and distribute the Property in the Trust Account only as directed in the Termination
Letter and the other documents referred to therein; provided, however, that in the event that a Termination Letter has not been received
by the Trustee by the 12-month anniversary of the closing of the IPO (“Closing”) or, in the event that the Company extended
the time to complete the Business Combination for up to 18 months from the closing of the IPO but has not completed the Business Combination
within such 18-month period, the 18 month anniversary of the Closing (as applicable, the “Last Date”), the Trust Account
shall be liquidated in accordance with the procedures set forth in the Termination Letter attached as Exhibit B hereto and distributed
to the Public Shareholders as of the Last Date.

 

(j) Upon receipt of an
extension letter (“Extension Letter”) substantially similar to Exhibit D hereto at least five business days prior to
the Applicable Deadline, signed on behalf of the Company by an executive officer, and receipt of the dollar amount specified in the Extension
Letter on or prior to the Applicable Deadline, to follow the instructions set forth in the Extension Letter.

 

(k) Upon receipt of a
letter (an “Amendment Notification Letter”) in the form of Exhibit E, signed on behalf of the Company by its Chief Executive
Officer and Chief Financial Officer and, distribute to Public Stockholders who exercised their conversion rights in connection with an
amendment to the Company’s amended and restated certificate of incorporation (an “Amendment”) an amount equal to the
pro rata share of the Property relating to the Common Stock for which such Public Stockholders have exercised conversion/redemption rights
in connection with such Amendment.

 

(l) Not disburse any amounts
from the Trust Account in connection with a Business Combination in the event that the amount per share to be received by the redeeming
Public Shareholders is less than $10.00 per share (plus the amount per share deposited in the Trust Account pursuant to any Extension
Letter).

 

(m) In connection with
a Business Combination, before making disbursements to the Depository Trust Company, the Company or any other person, disburse the per
share amount to redeeming Public Shareholders (other than shares tendered through the Depository Trust Company) that have tendered their
shares directly to the Trustee.

 

    2 

     

    

 

2. Limited Distributions of Income from
Trust Account.

 

(a) Upon written request
from the Company, which may be given from time to time in a form substantially similar to that attached hereto as Exhibit C, the
Trustee shall distribute to the Company the amount of interest income earned on the Trust Account requested by the Company to cover any
income or other tax obligation owed by the Company.

 

(b) The limited distributions
referred to in Section 2(a) above shall be made only from income collected on the Property. Except as provided in Section 2(a),
no other distributions from the Trust Account shall be permitted except in accordance with Section 1(i) hereof.

 

(c) The Company shall
provide the Underwriters with a copy of any Termination Letters and/or any other correspondence that it issues to the Trustee with respect
to any proposed withdrawal from the Trust Account promptly after such issuance.

 

(d) If applicable, the
Company shall issue a press release at least three days prior to the Applicable Deadline announcing that, at least five days prior to
the Applicable Deadline, the Company received notice from the Company’s insiders that the insiders intend to extend the Applicable
Deadline.

 

(e) Promptly following
the Applicable Deadline, disclose whether or not the term the Company has to consummate a Business Combination has been extended.

 

3. Agreements and Covenants of the Company.
The Company hereby agrees and covenants to:

 

(a) Give all instructions
to the Trustee hereunder in writing, signed by the Company’s Chairman of the Board, Chief Executive Officer or Chief Financial
Officer. In addition, except with respect to its duties under paragraphs 1(i), 2(a) and 2(b) above, the Trustee shall be entitled
to rely on, and shall be protected in relying on, any verbal or telephonic advice or instruction which it in good faith believes to be
given by any one of the persons authorized above to give written instructions, provided that the Company shall promptly confirm such
instructions in writing.

 

(b) Subject to the provisions
of Sections 5 and 7(g) of this Agreement, hold the Trustee harmless and indemnify the Trustee from and against, any and all expenses,
including reasonable counsel fees and disbursements, or loss suffered by the Trustee in connection with any claim, potential claim, action,
suit or other proceeding brought against the Trustee involving any claim, or in connection with any claim or demand which in any way
arises out of or relates to this Agreement, the services of the Trustee hereunder, or the Property or any income earned from investment
of the Property, except for expenses and losses resulting from the Trustee’s gross negligence or willful misconduct. Promptly after
the receipt by the Trustee of notice of demand or claim or the commencement of any action, suit or proceeding, pursuant to which the
Trustee intends to seek indemnification under this paragraph, it shall notify the Company in writing of such claim (hereinafter referred
to as the “Indemnified Claim”); provided, however, that the Trustee’s failure to provide such notice shall not relieve
the Company of its liability hereunder, except to the extent that it is materially prejudiced by such failure. The Trustee shall have
the right to conduct and manage the defense against such Indemnified Claim, provided, that the Trustee shall obtain the consent of the
Company with respect to the selection of counsel, which consent shall not be unreasonably withheld. The Trustee may not agree to settle
any Indemnified Claim without the prior written consent of the Company, which consent shall not be unreasonably withheld or delayed.
The Company may participate in such action with its own counsel.

 

    3 

     

    

 

(c) Pay the Trustee an
initial acceptance fee, an annual fee and a transaction processing fee for each disbursement made pursuant to Sections 2(a) and
2(b) as set forth on Schedule A hereto, which fees shall be subject to modification by the parties from time to time. It is expressly
understood that the Property shall not be used to pay such fees and further agreed that any fees owed to the Trustee shall be deducted
by the Trustee from the disbursements made to the Company pursuant to Sections 1(i) solely in connection with the consummation of
the Company’s initial acquisition, share exchange, share reconstruction and amalgamation, purchase of all or substantially all
of the assets of, or any other similar business combination with one or more businesses or entities (a “Business Combination”),
or pursuant to Section 2 (b). The Company shall pay the Trustee the initial acceptance fee and first year’s fee at the consummation
of the IPO and thereafter on the anniversary of the Effective Date.

 

(d) In connection with
any vote of the Company’s shareholders regarding a Business Combination, provide to the Trustee an affidavit or certificate of
a firm regularly engaged in the business of soliciting proxies and/or tabulating shareholder votes verifying the vote of the Company’s
shareholders regarding such Business Combination.

 

(e) In the event that
the Company directs the Trustee to commence liquidation of the Trust Account pursuant to Section 1(i), the Company agrees that it
will not direct the Trustee to make any payments that are not specifically authorized by this Agreement.

 

4. Limitations of Liability. The
Trustee shall have no responsibility or liability to:

 

(a) Take any action with
respect to the Property, other than as directed in paragraphs 1 and 2 hereof and the Trustee shall have no liability to any party except
for liability arising out of its own gross negligence or willful misconduct;

 

(b) Institute any proceeding
for the collection of any principal and income arising from, or institute, appear in or defend any proceeding of any kind with respect
to, any of the Property unless and until it shall have received instructions from the Company given as provided herein to do so and the
Company shall have advanced or guaranteed to it funds sufficient to pay any expenses incident thereto;

 

(c) Change the investment
of any Property, other than in compliance with paragraph 1(c);

 

(d) Refund any depreciation
in principal of any Property;

 

(e) Assume that the authority
of any person designated by the Company to give instructions hereunder shall not be continuing unless provided otherwise in such designation,
or unless the Company shall have delivered a written revocation of such authority to the Trustee;

 

(f) The other parties
hereto or to anyone else for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good faith and
in the exercise of its own best judgment, except for its gross negligence or willful misconduct. The Trustee may rely conclusively and
shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the
Trustee), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness
of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Trustee,
in good faith, to be genuine and to be signed or presented by the proper person or persons. The Trustee shall not be bound by any notice
or demand, or any waiver, modification, termination or rescission of this Agreement or any of the terms hereof, unless evidenced by a
written instrument delivered to the Trustee signed by the proper party or parties and, if the duties or rights of the Trustee are affected,
unless it shall give its prior written consent thereto;

 

(g) Verify the correctness
of the information set forth in the Registration Statement or to confirm or assure that any acquisition made by the Company or any other
action taken by it is as contemplated by the Registration Statement;

 

    4 

     

    

 

(h) File local, state
and/or federal tax returns or information returns with any taxing authority on behalf of the Trust Account and payee statements with
the Company documenting the taxes, if any, payable by the Company or the Trust Account, relating to the income earned on the Property;

 

(i) Pay any taxes on behalf
of the Trust Account (it being expressly understood that the Property shall not be used to pay any such taxes and that such taxes, if
any, shall be paid by the Company from funds not held in the Trust Account or released to it under Section 2(a) hereof);

 

(j) Imply obligations,
perform duties, inquire or otherwise be subject to the provisions of any agreement or document other than this agreement and that which
is expressly set forth herein; and

 

(k) Verify calculations,
qualify or otherwise approve Company requests for distributions pursuant to Section 1(i), 2(a) or 2(b) above.

 

5. Trust Account Waiver. The Trustee
has no right of set-off or any right, title, interest or claim of any kind (“Claim”) to, or to any monies in, the Trust Account,
and hereby irrevocably waives any Claim to, or to any monies in, the Trust Account that it may have now or in the future. In the event
the Trustee has any Claim against the Company under this Agreement, including, without limitation, under Section 3(b) or Section 3(c) hereof,
the Trustee shall pursue such Claim solely against the Company and its assets outside the Trust Account and not against the Property
or any monies in the Trust Account.

 

6. Termination. This Agreement shall
terminate as follows:

 

(a) If the Trustee gives
written notice to the Company that it desires to resign under this Agreement, the Company shall use its reasonable efforts to locate
a successor trustee during which time the Trustee shall act in accordance with this Agreement. At such time that the Company notifies
the Trustee that a successor trustee has been appointed by the Company and has agreed to become subject to the terms of this Agreement,
the Trustee shall transfer the management of the Trust Account to the successor trustee, including but not limited to the transfer of
copies of the reports and statements relating to the Trust Account, whereupon this Agreement shall terminate; provided, however, that,
in the event that the Company does not locate a successor trustee within ninety days of receipt of the resignation notice from the Trustee,
the Trustee may submit an application to have the Property deposited with any court in the State of New York or with the United States
District Court for the Southern District of New York and upon such deposit, the Trustee shall be immune from any liability whatsoever;
or

 

(b) At such time that
the Trustee has completed the liquidation of the Trust Account in accordance with the provisions of paragraph 1(i) hereof, and distributed
the Property in accordance with the provisions of the Termination Letter, this Agreement shall terminate except with respect to Paragraph
3(b).

 

7. Miscellaneous.

 

(a) The Company and the
Trustee each acknowledge that the Trustee will follow the security procedures set forth below with respect to funds transferred from
the Trust Account. The Company and the Trustee will each restrict access to confidential information relating to such security procedures
to authorized persons. Each party must notify the other party immediately if it has reason to believe unauthorized persons may have obtained
access to such information, or of any change in its authorized personnel. In executing funds transfers, the Trustee will rely upon all
information supplied to it by the Company, including account names, account numbers and all other identifying information relating to
a beneficiary, beneficiary’s bank or intermediary bank. The Trustee shall not be liable for any loss, liability or expense resulting
from any error in the information or transmission of the wire.

 

(b) This 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. It may be executed in several original
or facsimile counterparts, each one of which shall constitute an original, and together shall constitute but one instrument.

 

    5 

     

    

 

(c) This Agreement contains
the entire agreement and understanding of the parties hereto with respect to the subject matter hereof. Except for Sections 1(i), 1(k),
1(l), 1(m), 1(n), 3(g), 7(c) and 7(h) (which may only be amended with the approval of the holders of at least 50% of the shares
of common stock sold in the IPO, provided that all Public Shareholders must be given the right to receive a pro-rata portion of the trust
account (no less than $10.00 per share plus the amount per share deposited in the Trust Account pursuant to any Extension Letter) in
connection with any such amendment), this Agreement or any provision hereof may only be changed, amended or modified by a writing signed
by each of the parties hereto; provided, however, that no such change, amendment or modification may be made without the prior written
consent of the Underwriters. As to any claim, cross-claim or counterclaim in any way relating to this Agreement, each party waives the
right to trial by jury. The Trustee may require from Company counsel an opinion as to the propriety of any proposed amendment.

 

(d) The parties hereto
consent to the jurisdiction and venue of any state or federal court located in the City of New York, Borough of Manhattan, for purposes
of resolving any disputes hereunder.

 

(e) Any notice, consent
or request to be given in connection with any of the terms or provisions of this 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 by facsimile transmission:

 

if to the Trustee, to:

 

Continental Stock Transfer & Trust Company

1 State Street

New York, New York 10004

Attention: Francis Wolf

 

if to the Company, to:

 

Mountain Crest Acquisition Corp. IV

311 West 43rd Street, 12th Floor

New York, NY 10036

Attn: Suying Liu

 

in either case with a copy (which copy shall not
constitute notice) to:

 

Network 1 Financial Securities, Inc.

2 Bridge Ave #241

Red Bank, NJ 07701

Attn: Karen (Huiyun) Mu

 

and:

 

Loeb & Loeb LLP

345 Park Avenue

New York, NY 10154

Attn: Giovanni Caruso

Fax No.: (212) 937-3943

 

and:

 

Ortoli Rosenstadt
LLP

366 Madison Ave
3rd floor

New York, NY
10017

Attn: Yarona
L. Yieh

 

    6 

     

    

 

(f) This Agreement may
not be assigned by the Trustee without the prior consent of the Company.

 

(g) Each of the Trustee
and the Company hereby represents that it has the full right and power and has been duly authorized to enter into this Agreement and
to perform its respective obligations as contemplated hereunder. The Trustee acknowledges and agrees that it shall not make any claims
or proceed against the Trust Account, including by way of set-off, and shall not be entitled to any funds in the Trust Account under
any circumstance.

 

(h) This Agreement is
the joint product of the Company and the Trustee and each provision hereof has been subject to the mutual consultation, negotiation and
agreement of such parties and shall not be construed for or against any party hereto.

 

(i) This Agreement may
be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together
constitute one and the same instrument. Delivery of a signed counterpart of this Agreement by facsimile or electronic transmission shall
constitute valid and sufficient delivery thereof.

 

(j) Each of the Company
and the Trustee hereby acknowledge that the Underwriters are a third party beneficiary of this Agreement and that each Public Shareholder
is a third party beneficiary of Sections 1(i), 1(k), 1(l), 3(g), 3(h) and 7(c).

 

(k) Except as specified
herein, no party to this Agreement may assign its rights or delegate its obligations hereunder to any other person or entity.

 

    7 

     

    

 

IN WITNESS WHEREOF, the parties
have duly executed this Investment Management Trust Agreement as of the date first written above.

 

	 	CONTINENTAL STOCK TRANSFER & TRUST

    COMPANY, as Trustee
	 	 
	 	By:	/s/ Francis
    E. Wolf, Jr.
	 	 	Name:	Francis E. Wolf, Jr.
	 	 	Title:	Vice President

 

	 	MOUNTAIN CREST ACQUISITION CORP. IV
	 	 
	 	By:	/s/ Suying
    Liu
	 	 	Name:	Suying Liu
	 	 	Title:	Chief Executive Officer

 

    8 

     

    

 

SCHEDULE A

 

	Fee
    Item	 	Time
    and method of payment	 	Amount
	Initial acceptance fee	 	Initial closing of IPO by wire transfer	 	[_______]
	Annual fee	 	First year ($[______]),
    initial closing of IPO by wire transfer; thereafter on the anniversary of the effective date of the IPO by wire transfer or check	 	[_______]
	Transaction processing fee for disbursements to Company
    under Section 2	 	Deduction by Trustee from accumulated income following
    disbursement made to Company under Section 2	 	[_______]
	Paying Agent services
    as required pursuant to section 1(i)	 	Billed to Company upon
    delivery of service pursuant to section 1(i)	 	Prevailing
    rates

 

    Sch-A-1

     

    

 

EXHIBIT A

 

[Letterhead of Company]

 

[Insert date]

 

Continental Stock Transfer & Trust Company

1 State Street

New York, New York 10004

Attention: [Francis Wolf]

 

	 	Re:	Trust Account
    No. [       ] - Termination Letter

 

___________:

 

Pursuant to paragraph 1(i) of
the Investment Management Trust Agreement between Mountain Crest Acquisition Corp. IV (“Company”) and Continental Stock Transfer &
Trust Company (“Trustee”), dated as of [*], 2021 (“Trust Agreement”), this is to advise you that the Company
has entered into an agreement with [___________] (“Target Business”) to consummate a business combination with Target Business
(“Business Combination”) on or about [insert date]. The Company shall notify you at least [72 hours] in advance
of the actual date of the consummation of the Business Combination (“Consummation Date”). Capitalized terms used herein and
not otherwise defined shall have the meanings set forth in the Trust Agreement.

 

In accordance with the terms
of the Trust Agreement, we hereby authorize you to liquidate the Trust Account investments on [___] and to transfer the proceeds to the
above-referenced account at [______] to the effect that, on the Consummation Date, all of funds held in the Trust Account will be immediately
available for transfer to the account or accounts that the Company shall direct on the Consummation Date. It is acknowledged and agreed
that while the funds are on deposit in the trust account awaiting distribution, the Company will not earn any interest or dividends.

 

On the Consummation Date
(i) counsel for the Company shall deliver to you written notification that the Business Combination has been consummated, and (ii) the
Company shall deliver to you (a) [an affidavit] [a certificate] of [______], which verifies the vote of the Company’s shareholders
in connection with the Business Combination if a vote is held and (b) joint written instructions from the Company and Network 1
Financial Securities, Inc. with respect to the transfer of the funds held in the Trust Account, which must provide for the disbursement
of no less than $10.00 per share plus the amount per share deposited in the Trust Account per Extension Letter to redeeming Public Shareholders
(“Instruction Letter”). You are hereby directed and authorized to transfer the funds held in the Trust Account immediately
upon your receipt of the counsel’s letter and the Instruction Letter, in accordance with the terms of the Instruction Letter. In
the event that certain deposits held in the Trust Account may not be liquidated by the Consummation Date without penalty, you will notify
the Company of the same and the Company shall direct you as to whether such funds should remain in the Trust Account and distributed
after the Consummation Date to the Company. Upon the distribution of all the funds in the Trust Account pursuant to the terms hereof,
the Trust Agreement shall be terminated.

 

In the event that the Business
Combination is not consummated on the Consummation Date described in the notice thereof and we have not notified you on or before the
original Consummation Date of a new Consummation Date, then upon receipt by the Trustee of written instructions from the Company, the
funds held in the Trust Account shall be reinvested as provided in the Trust Agreement on the business day immediately following the
Consummation Date as set forth in the notice.

 

	 	Very truly yours,
	 	 
	 	MOUNTAIN CREST ACQUISITION CORP. IV
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	Secretary/Assistant Secretary

 

Acknowledged and Agreed:

Network 1 Financial Securities, Inc.

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    A-1

     

    

 

EXHIBIT B

 

[Letterhead of Company]

 

[Insert date]

 

Continental Stock Transfer & Trust Company

1 State Street

New York, New York 10004

Attention: [Francis Wolf]

 

	 	Re:	Trust Account
    No. [       ] - Termination Letter

 

___________:

 

Pursuant to paragraph 1(i) of
the Investment Management Trust Agreement between Mountain Crest Acquisition Corp. IV (“Company”) and Continental Stock Transfer &
Trust Company (“Trustee”), dated as of [*], 2021 (“Trust Agreement”), this is to advise you that the Company
has been unable to effect a Business Combination with a Target Company within the time frame specified in the Company’s Amended
and Restated Certificate of Incorporation, as described in the Company’s prospectus relating to its IPO. Capitalized terms used
herein and not otherwise defined shall have the meanings set forth in the Trust Agreement.

 

In accordance with the terms
of the Trust Agreement, we hereby authorize you to liquidate all the Trust Account investments on [____] and to transfer the total proceeds
to the Trust Checking Account at [_____] to await distribution to the Public Shareholders. The Company has selected [___, 20 ] as the
record date for the purpose of determining the Public Shareholders entitled to receive their share of the liquidation proceeds. It is
acknowledged that no interest will be earned by the Company on the liquidation proceeds while on deposit in the Trust Checking Account.
You agree to be the Paying Agent of record and in your separate capacity as Paying Agent, to distribute said funds directly to the Public
Shareholders in accordance with the terms of the Trust Agreement and the Amended and Restated Certificate of Incorporation of the Company.
Upon the distribution of all the funds in the Trust Account, your obligations under the Trust Agreement shall be terminated.

 

	 	Very truly yours,
	 	 
	 	MOUNTAIN CREST ACQUISITION CORP. IV
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	Secretary/Assistant Secretary

 

	 	cc:	Network 1 Financial Securities, Inc.

 

    B-1

     

    

 

EXHIBIT C

 

[Letterhead of Company]

 

[Insert date]

 

Continental Stock Transfer & Trust Company

1 State Street

New York, New York 10004

Attention: [Francis Wolf]

 

	 	Re:	Trust Account
    No. [       ]

 

___________:

 

Pursuant to paragraph 2(a) of
the Investment Management Trust Agreement between Mountain Crest Acquisition Corp. IV (“Company”) and Continental Stock Transfer &
Trust Company, LLC (“Trustee”), dated as of [*], 2021 (“Trust Agreement”), the Company hereby requests that you
deliver to the Company [$       ] of the interest income earned on the Property as of the date
hereof. The Company needs such funds to pay for its tax obligations. In accordance with the terms of the Trust Agreement, you are hereby
directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt of this letter to the Company’s operating
account at:

 

[WIRE INSTRUCTION INFORMATION]

 

	 	MOUNTAIN CREST ACQUISITION CORP. IV
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	cc:	Network 1 Financial Securities, Inc.

 

    C-1

     

    

 

EXHIBIT D

 

[Letterhead of Company]

 

[Insert date]

 

Continental Stock Transfer & Trust Company

1 State Street

New York, New York 10004

Attention: Francis Wolf

 

	 	Re:	Trust Account
    No. [       ] Extension Letter

 

Gentlemen:

 

Pursuant to Section 1(l) of
the Investment Management Trust Agreement between Mountain Crest Acquisition Corp. IV (“Company”) and Continental Stock Transfer &
Trust Company, dated as of [*], 2021 (“Trust Agreement”), this is to advise you that the Company is extending the time available
in order to consummate a Business Combination with the Target Businesses for an additional [three (3) months], from ______________
to ____________ (the “Extension”).

 

This Extension Letter shall
serve as the notice required with respect to Extension prior to the Applicable Deadline. Capitalized words used herein and not otherwise
defined shall have the meanings ascribed to them in the Trust Agreement.

 

[In accordance with the terms
of the Trust Agreement, we hereby authorize you to deposit [$500,000] [(or $575,000 if the underwriters’ over-allotment option
was exercised in full)], which will be wired to you, into the Trust Account investments upon receipt.][Pursuant to our amended and restated
certificate of incorporation, we have entered into a definitive agreement for a Business combination within 12 months of the closing
of our IPO and our time to complete a Business Combination, as evidenced by the press release attached hereto that the Company released
on _________, 20___.]

 

	 	Very truly yours,
	 	 
	 	MOUNTAIN CREST ACQUISITION CORP. IV
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	cc:	Network 1 Financial
    Securities, Inc.

 

    D-1

     

    

 

EXHIBIT E

 

 

[Letterhead of Company]

 

[Insert date]

 

Continental Stock Transfer & Trust Company

1 State Street

New York, New York 10004

Attention: Francis Wolf

 

	 	Re:	Trust Account
    No. [       ] Extension Letter

 

___________:

 

Reference is made to that
certain Investment Management Trust Agreement between Mountain Crest Acquisition Corp. IV (“Company”) and Continental Stock
Transfer & Trust Company, dated as of [*], 2021 (“Trust Agreement”). Capitalized words used herein and not otherwise
defined shall have the meanings ascribed to them in the Trust Agreement.

 

Pursuant to Section 1(k) of
the Trust Agreement, this is to advise you that the Company has sought an Amendment. Accordingly, in accordance with the terms of the
Trust Agreement, we hereby authorize you to liquidate a sufficient portion of the Trust Account and to transfer $           of
the proceeds of the Trust to the account at [              ] for distribution
to the stockholders that have requested conversion of their shares in connection with such Amendment. The remaining funds shall be reinvested
by you as previously instructed.

 

	 	MOUNTAIN CREST ACQUISITION CORP. IV
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	cc:	 Network
    1 Financial Securities, Inc.

 

    E-1Exhibit 10.3

 

STOCK ESCROW AGREEMENT

 

This STOCK ESCROW AGREEMENT,
dated as of June 29, 2021 (“Agreement”), by and among MOUNTAIN CREST ACQUISITION CORP. IV, a Delaware corporation (“Company”),
and the initial shareholders listed on the signature pages hereto (collectively, the “Initial Shareholders”) CONTINENTAL
STOCK TRANSFER & TRUST COMPANY, a limited purpose trust company (“Escrow Agent”).

 

WHEREAS, the Company has
entered into an Underwriting Agreement, dated as of June 29, 2021 (“Underwriting Agreement”), with Network 1 Financial Securities, Inc.
(“Network 1”) acting as representative of the several underwriters (collectively, the “Underwriters”), pursuant
to which, among other matters, the Underwriters have agreed to purchase 5,000,000 units (“Units”) of the Company, plus an
additional 750,000 Units if the Underwriters exercise their over-allotment option in full. Each Unit consists of one share of common
stock of the Company, par value $0.0001 per share (the “Common Stock”) and one right to receive one-tenth (1/10) of a share
of common stock upon the consummation of an initial business combination, all as more fully described in the Company’s final Prospectus,
dated July 1, 2021 (“Prospectus”), comprising part of the Company’s Registration Statement on Form S-1 (File No. 333-256449)
under the Securities Act of 1933, as amended (“Registration Statement”), declared effective on June 29, 2021 (“Effective
Date”).

 

WHEREAS, the Initial Shareholders
have agreed as a condition of the sale of the Units to deposit their Insider Shares (as defined in the Prospectus), as set forth opposite
their respective names on Exhibit A attached hereto (collectively “Escrow Shares”), in escrow as hereinafter
provided.

 

WHEREAS, the Company and
the Initial Shareholders desire that the Escrow Agent accept the Escrow Shares, in escrow, to be held and disbursed as hereinafter provided.

 

IT IS AGREED:

 

1. Appointment of
Escrow Agent. The Company and the Initial Shareholders hereby appoint the Escrow Agent to act in accordance with and subject
to the terms of this Agreement and the Escrow Agent hereby accepts such appointment and agrees to act in accordance with and subject
to such terms.

 

2. Deposit of Escrow
Shares. On or prior to the date hereof, each of the Initial Shareholders delivered to the Escrow Agent certificates representing
such Initial Shareholder’s respective Escrow Shares, together with applicable share powers, to be held and disbursed subject to
the terms and conditions of this Agreement. Each of the Initial Shareholders acknowledges that the certificate representing such
Initial Shareholder’s Escrow Shares is legended to reflect the deposit of such Escrow Shares under this Agreement.

 

3. Disbursement of
the Escrow Shares.

 

3.1 The Escrow Agent shall
hold the Escrow Shares during the period (the “Escrow Period”) commencing on the date hereof and (i) for 50% of the
Escrow Shares, ending on the earlier of (x) six months after the date of the consummation of the Company’s initial business
combination (as described in the Registration Statement, hereinafter a “Business Combination”) and (y) the date on which
the closing price of the Common Stock equals or exceeds $12.50 per share (as adjusted for stock splits, stock dividends, reorganizations
and recapitalizations) for any 20 trading days within any 30-trading day period commencing after the Company’s initial Business
Combination and (ii) for the remaining 50% of the Escrow Shares, ending six months after the date of the consummation of an initial
Business Combination. The Company shall promptly provide notice of the consummation of a Business Combination to the Escrow Agent. Upon
completion of the Escrow Period, the Escrow Agent shall disburse such amount of each Initial Shareholder’s Escrow Shares (and any
applicable share power) to such Initial Shareholder; provided, however, that if the Escrow Agent is notified by the Company pursuant
to Section 6.7 hereof that the Company is being liquidated at any time during the Escrow Period, then the Escrow Agent shall promptly
destroy the certificates representing the Escrow Shares; provided further, however, that if, within six months after the Company consummates
an initial Business Combination, the Company (or the surviving entity) subsequently consummates a liquidation, merger, stock exchange
or other similar transaction which results in all of the shareholders of such entity having the right to exchange their shares of Common
Stock for cash, securities or other property, then the Escrow Agent will, upon receipt of a notice executed by the Chairman of the Board,
Chief Executive Officer or other authorized officer of the Company, in form reasonably acceptable to the Escrow Agent, certifying that
such transaction is then being consummated or such conditions have been achieved, as applicable, release the Escrow Shares to the Initial
Shareholders. The Escrow Agent shall have no further duties hereunder after the disbursement or destruction of the Escrow Shares
in accordance with this Section 3.1.

  

    

     

    

 

3.2 Notwithstanding Section 3.1,
if the Underwriters do not exercise their over-allotment option to purchase an additional 750,000 Units of the Company in full within
45 days of the date of the Prospectus (as described in the Underwriting Agreement), the Initial Shareholders agree that the Escrow Agent
shall return to the Company for cancellation, at no cost, the number of Escrow Shares held by the Initial Shareholders listed on Exhibit B determined
by multiplying (a) the product of (i) 187,500 multiplied by (ii) a fraction, (x) the numerator of which is the number
of Escrow Shares held by each such holder, and (y) the denominator of which is the total number of Escrow Shares, by (b) a
fraction, (i) the numerator of which is 750,000 minus the number of shares of Common Stock purchased by the Underwriters upon the
exercise of their over-allotment option, and (ii) the denominator of which is 750,000. The Company shall promptly provide notice
to the Escrow Agent of the expiration or termination of the Underwriters’ over-allotment option and the number of Units, if any,
purchased by the Underwriters in connection with their exercise thereof.

 

4. Rights of Initial
Shareholders in Escrow Shares.

 

4.1 Voting Rights as
a Shareholder. Subject to the terms of the Insider Letters described in Section 4.4 hereof and except as herein provided,
the Initial Shareholders shall retain all of their rights as shareholders of the Company during the Escrow Period, including, without
limitation, the right to vote such shares.

 

4.2 Dividends and Other
Distributions in Respect of the Escrow Shares. During the Escrow Period, all dividends payable in cash with respect to the Escrow
Shares shall be paid to the Initial Shareholders, but all dividends payable in stock or other non-cash property (“Non-Cash Dividends”)
shall be delivered to the Escrow Agent to hold in accordance with the terms hereof. As used herein, the term “Escrow Shares”
shall be deemed to include the Non-Cash Dividends distributed thereon, if any.

 

4.3 Restrictions on
Transfer. During the Escrow Period, the only permitted transfers of the Escrow Shares will be (1) to the Company’s
pre-IPO stockholders or their respective affiliates, or to the Company’s offices, directors, advisors and employees, (2) if
the Initial Shareholder is an entity, as a distribution to its, partners, stockholders or members upon its liquidation, (3) by bona
fide gift to a member of the Initial Shareholder’s immediate family or to a trust, the beneficiary of which is the Initial Shareholder
or a member of the Initial Shareholder’s immediate family for estate planning purposes, (4) by virtue of the laws of descent
and distribution upon death of the Initial Shareholder, (5) pursuant to a qualified domestic relations order, (6) by certain
pledges to secure obligations incurred in connection with purchases of the Company’s securities, (7) by private sales at prices
no greater than the price at which the Insider Shares were originally purchased or (8) for the cancellation of up to 187,500 shares
of Common Stock subject to forfeiture to the extent that the Underwriters’ over-allotment is not exercised in full or in part or
in connection with the consummation of our initial Business Combination, in each case (except for clause 8 or with our prior consent)
on the condition that such transfers may be implemented only upon the respective transferee’s written agreement to be bound
by the terms and conditions of this Agreement and of the Insider Letter (as defined below) signed by the Initial Shareholder transferring
the Escrow Shares.

 

4.4 Insider Letters. Each
of the Initial Shareholders has executed a letter agreement with Network 1 and the Company, dated as indicated on Exhibit C hereto,
and the form of which is filed as an exhibit to the Registration Statement (“Insider Letter”), respecting the rights and
obligations of such Initial Shareholder in certain events, including but not limited to the liquidation of the Company.

 

    2

     

    

 

5. Concerning the
Escrow Agent.

 

5.1 Good Faith Reliance. The
Escrow Agent shall not be liable for any action taken or omitted by it in good faith and in the exercise of its own best judgment, and
may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including
counsel chosen by the Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the
validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which
is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons. The Escrow Agent shall
not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement unless evidenced by a
writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected,
unless it shall have given its prior written consent thereto.

 

5.2 Indemnification. The
Escrow Agent shall be indemnified and held harmless by the Company from and against any expenses, including counsel fees and disbursements,
or loss suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim which in any way, directly
or indirectly, arises out of or relates to this Agreement, the services of the Escrow Agent hereunder, or the Escrow Shares held by it
hereunder, other than expenses or losses arising from the gross negligence or willful misconduct of the Escrow Agent. Promptly after
the receipt by the Escrow Agent of notice of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent
shall notify the other parties hereto in writing. In the event of the receipt of such notice, the Escrow Agent, in its sole discretion,
may commence an action in the nature of interpleader in an appropriate court to determine ownership or disposition of the Escrow Shares
or it may deposit the Escrow Shares with the clerk of any appropriate court or it may retain the Escrow Shares pending receipt of a final,
non-appealable order of a court having jurisdiction over all of the parties hereto directing to whom and under what circumstances the
Escrow Shares are to be disbursed and delivered. The provisions of this Section 5.2 shall survive in the event the Escrow Agent
resigns or is discharged pursuant to Sections 5.5 or 5.6 below.

 

5.3 Compensation. The
Escrow Agent shall be entitled to reasonable compensation from the Company for all services rendered by it hereunder. The Escrow Agent
shall also be entitled to reimbursement from the Company for all expenses paid or incurred by it in the administration of its duties
hereunder including, but not limited to, all counsel, advisors’ and agents’ fees and disbursements and all taxes or other
governmental charges.

 

5.4 Further Assurances. From
time to time on and after the date hereof, the Company and the Initial Shareholders shall deliver or cause to be delivered to the Escrow
Agent such further documents and instruments and shall do or cause to be done such further acts as the Escrow Agent shall reasonably
request to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to assure itself
that it is protected in acting hereunder.

 

5.5 Resignation. The
Escrow Agent may resign at any time and be discharged from its duties as escrow agent hereunder by its giving the other parties hereto
written notice and such resignation shall become effective as hereinafter provided. Such resignation shall become effective at such time
that the Escrow Agent shall turn over, to a successor escrow agent appointed by the Company, the Escrow Shares held hereunder. If no
new escrow agent is so appointed within the 60-day period following the giving of such notice of resignation, the Escrow Agent may deposit
the Escrow Shares with any court it reasonably deems appropriate.

 

5.6 Discharge of Escrow
Agent. The Escrow Agent shall resign and be discharged from its duties as escrow agent hereunder if so requested in writing
at any time by the other parties hereto, jointly, provided, however, that such resignation shall become effective only upon acceptance
of appointment by a successor escrow agent as provided in Section 5.5.

 

5.7 Liability. Notwithstanding
anything herein to the contrary, the Escrow Agent shall not be relieved from liability hereunder for its own gross negligence or its
own willful misconduct.

 

5.8 Waiver. The
Escrow Agent hereby waives any right of set-off or any other right, title, interest or claim of any kind (“Claim”) in, or
to any distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof,
by and between the Company and the Escrow Agent as trustee thereunder) and hereby agrees not to seek recourse, reimbursement, payment
or satisfaction for any Claim against the Trust Account for any reason whatsoever.

 

    3

     

    

 

6. Miscellaneous.

 

6.1 Governing Law. This
Agreement shall for all purposes be deemed to be made under and shall be construed 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.

 

6.2 Third Party Beneficiaries. Each
of the Initial Shareholders hereby acknowledges that Network 1 is a third-party beneficiary of this Agreement and this Agreement may
not be modified or changed without the prior written consent of Network 1.

 

6.3 Entire Agreement. This
Agreement contains the entire agreement of the parties hereto with respect to the subject matter hereof and, except as expressly provided
herein, may not be changed or modified except by an instrument in writing signed by the party to the charged.

 

6.4 Headings. The
headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation thereof.

 

6.5 Binding Effect. This
Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives, successors
and assigns.

 

6.6 Notices. Any
notice or other communication required or which may be given hereunder shall be in writing and either be delivered personally or be mailed,
certified or registered mail, or by private national courier service, return receipt requested, postage prepaid, and shall be deemed
given when so delivered personally or, if mailed, two days after the date of mailing, as follows:

 

	 	If to the Company,
    to:	Mountain Crest
    Acquisition Corp. IV
	 	 	311 West 43rd Street, 12th
    Floor
	 	 	New York, NY 10036
	 	 	Attn: Suying Liu, Chief
    Executive Officer

 

If to a Shareholder, to his
address set forth in Exhibit A.

 

	 	and if to the
    Escrow Agent, to:	Continental
    Stock Transfer & Trust Company
	 	 	30th floor, 1 State Street
	 	 	New York, New York 10004
	 	 	Attention: Francis Wolf

 

A copy (which copy shall
not constitute notice) sent hereunder shall be sent to:

 

	 	 	Network
    1 Financial Securities, Inc.
	 	 	2
    Bridge Ave #241
	 	 	Red
    Bank, NJ 07701
	 	 	Attn:
    Karen (Huiyun) Mu
	 	 	Fax: (732) 758-6671

 

	 	and:	Ortoli
    Rosenstadt LLP
	 	 	366
    Madison Ave 3rd floor
	 	 	New
    York, NY 10017
	 	 	Attn:
    Yarona L. Yieh
	 	 	Fax
    No.: (212) 588-0022

 

	 	and:	Loeb &
    Loeb LLP
	 	 	345 Park Avenue
	 	 	New York, New York 10154
	 	 	Attn: Mitchell S. Nussbaum, Esq.
    and Giovanni Caruso, Esq.
	 	 	Fax: (212) 407-4990

 

	 	 and:	Continental
    Stock Transfer & Trust Company
	 	 	30th floor, 1 State Street
	 	 	New York, New York 10004
	 	 	Attention: Francis Wolf

 

    4

     

    

 

The parties may change the
persons and addresses to which the notices or other communications are to be sent by giving written notice to any such change in the
manner provided herein for giving notice.

 

6.7 Liquidation of
the Company. The Company shall give the Escrow Agent written notification of the liquidation and dissolution of the Company
in the event that the Company fails to consummate a Business Combination within the time period specified in the Prospectus.

 

[Signature Page Follows]

 

    5

     

    

 

WITNESS the execution of
this Agreement as of the date first above written.

 

	 	COMPANY:
	 	 
	 	MOUNTAIN
    CREST ACQUISITION CORP. IV
	 	 	 
	 	By:	/s/ Suying
    Liu    
	 	 	Name: 	Suying
    Liu                          
	 	 	Title:	Chief
    Executive Officer

 

	 	INITIAL SHAREHOLDERS:

     

    MOUNTAIN CREST HOLDINGS IV LLC

	 	 
	 	 	/s/ Suying
    Liu  
	 	 	Name: 	Suying
    Liu                      
	 	 	Title:	Member

 

	 	 	/s/ Nelson
    Haight   
	 	 	Name: 	    Nelson
    Haight        

 

	 	 	/s/ Todd Milbourn               
	 	 	Name: 	 Todd
    Milbourn               

 

	 	 	/s/ Wenhua
    Zhang   
	 	 	Name: 	Wenhua
    Zhang                

 

	 	ESCROW AGENT:
	 	 
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	 	By:	/s/ Francis Wolf
	 	 	Administrative Department

 

[Signature Page to
Stock Escrow Agreement]

 

    6

     

    

 

EXHIBIT A

 

Initial Shareholders

 

	Name of Initial
    Shareholder	 	 	Number
                                            of Shares	 	 	Date of Insider
    Letter
	Mountain Crest Holdings IV LLC	 	 	 1,431,500	 	 	June 29, 2021
	 Nelson Haight	 	 	 2,000	 	 	June 29, 2021
	 Todd Milbourn	 	 	 2,000	 	 	June 29, 2021
	 Wenhua Zhang	 	 	 2,000	 	 	June 29, 2021

 

    A-1

     

    

  

EXHIBIT B

 

Escrow Shares

  

	Name
    of Initial Shareholder	 	Number
    of Shares	 	Date
    of Insider Letter
	Mountain
    Crest Holdings IV LLC	 	 1,431,500	 	June 29,
    2021

 

    B-1

     

    

 

EXHIBIT C

 

Insider Letter

 June 29, 2021

 

Mountain Crest Acquisition Corp. IV

311 West 43rd Street, 12th Floor

New York, NY 10036

 

Network 1 Financial Securities, Inc.

2 Bridge Ave #241

Red Bank, NJ 07701

 

	 	Re:	Initial
    Public Offering

 

Gentlemen:

 

This letter is being delivered
to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”) entered into by and between
Mountain Crest Acquisition Corp. IV, a Delaware corporation (the “Company”), and Network 1 Financial Securities, Inc.,
as Representative (the “Representative”) of the several underwriters named on Schedule A thereto (the “Underwriters”),
relating to an underwritten initial public offering (the “IPO”) of the Company’s units (the “Units”),
each comprised of one share of common stock of the Company, $0.0001 par value (the “Common Stock”) and one
right to receive one-tenth (1/10) of one share of Common Stock (the “Rights”). Certain capitalized terms used
herein are defined in paragraph 16 hereof.

 

In order to induce the Company
and the Underwriters to enter into the Underwriting Agreement and to proceed with the IPO, and in recognition of the benefit that such
IPO will confer upon the undersigned as a shareholder of the Company, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned hereby agrees with the Company as follows:

 

1. If the Company solicits
approval of its shareholders of a Business Combination, the undersigned will vote all shares of Common Stock beneficially owned by him,
her or it, whether acquired before, in or after the IPO, in favor of such Business Combination.

 

2. (a) Unless the Company’s
shareholders are previously given the option to redeem their shares in connection with amending applicable documents to extend the time
that the Company has to complete a Business Combination and the Company fails to consummate a Business Combination within 12 months from
the closing of the Company’s IPO (or, in the event that the Company extended the period of time to consummate a business combination
up to 18 months from the closing of the Company’s IPO, as specified in the Company’s amended and restated certificate of
incorporation), the undersigned shall take all reasonable steps to (i) cause the Trust Fund to be liquidated and distributed to
the holders of the IPO Shares and (ii) cause the Company to liquidate as soon as reasonably practicable.

 

(b) The undersigned hereby
waives any and all right, title, interest or claim of any kind in or to any distribution of the Trust Fund and any remaining net assets
of the Company as a result of such liquidation with respect to his, her or its Insider Shares including any shares underlying the Private
Units (“Claim”) and hereby waives any Claim the undersigned may have in the future as a result of, or arising
out of, any contracts or agreements with the Company and will not seek recourse against the Trust Fund for any reason whatsoever. The
undersigned acknowledges and agrees that there will be no distribution from the Trust Fund with respect to any Rights underlying the
Private Units, all of which will terminate on the Company’s liquidation.

 

3. In the event of the liquidation
of the Trust Fund, Mountain Crest Holdings IV LLC agrees to indemnify and hold harmless the Company against any and all loss, liability,
claims, damage and expense whatsoever (including, but not limited to, any and all legal or other expenses reasonably incurred in investigating,
preparing or defending against any litigation, whether pending or threatened, or any claim whatsoever) which the Company may become subject
as a result of any claim by any target business or vendor or other person who is owed money by the Company for services rendered or products
sold or contracted for, but only to the extent necessary to ensure that such loss, liability, claim, damage or expense does not reduce
the amount of funds in the Trust Fund; provided that such indemnity shall not apply if such target business, vendor
or other person has executed an agreement waiving any claims against the Trust Fund.

 

    

     

    

 

4. In the event that the Company
does not consummate a Business Combination and must liquidate and its remaining net assets are insufficient to complete such liquidation,
Mountain Crest Holdings IV LLC agrees to advance such funds necessary to complete such liquidation and agrees not to seek recourse for
such expenses.

 

5. The undersigned will escrow
all of his, her or its Insider Shares pursuant to the terms of a Stock Escrow Agreement, which the Company will enter into with the undersigned
and an escrow agent acceptable to the Company. After the underwriter exercises its over-allotment option in full, the remaining portion
of the underwriter’s over-allotment option is canceled, or the underwriter’s over-allotment option terminates, the undersigned
agrees to cancel a portion of the undersigned’s Insider Shares such that the total number of Insider Shares equals (i) .25
multiplied by (ii) the number of Units sold in the IPO.

 

6. The undersigned agrees that
until the Company consummates a Business Combination, the undersigned’s Private Units will be subject to the transfer restrictions
described in the Subscription Agreement relating to the undersigned’s Private Units.

 

7. In order to minimize potential
conflicts of interest which may arise from multiple affiliations, the undersigned agrees to present to the Company for its consideration,
prior to presentation to any other person or entity, any suitable opportunity to acquire a target business, until the earlier of the
consummation by the Company of a Business Combination or the liquidation of the Company, subject to any pre-existing fiduciary and contractual
obligations the undersigned might have.

 

8. The undersigned acknowledges
and agrees that prior to entering into a Business Combination with a target business that is affiliated with any Insiders of the Company
or their affiliates, including any company that is a portfolio company of, or otherwise affiliated with, or has received financial investment
from, an entity with which any Insider or their affiliates is affiliated, such transaction must be approved by a majority of the Company’s
disinterested independent directors and the Company must obtain an opinion from an independent investment banking firm that such Business
Combination is fair to the Company’s unaffiliated shareholders from a financial point of view.

 

9. Neither the undersigned,
any member of the family of the undersigned, nor any affiliate of the undersigned will be entitled to receive and will not accept any
compensation or other cash payment prior to, or for services rendered in connection with, the consummation of the Business Combination; provided that
the Company shall be allowed to repay working capital loans made by the undersigned to the Company in cash upon consummation of the Business
Combination. Notwithstanding the foregoing, the undersigned and any affiliate of the undersigned shall be entitled to reimbursement from
the Company for their out-of-pocket expenses incurred in connection with identifying, investigating and consummating a Business Combination.

 

10. Neither the undersigned,
any member of the family of the undersigned, nor any affiliate of the undersigned will be entitled to receive or accept a finder’s
fee or any other compensation in the event the undersigned, any member of the family of the undersigned or any affiliate of the undersigned
originates a Business Combination.

 

11. Each of the undersigned
officers and directors agrees to be a director or officer, as applicable of the Company until the earlier of the consummation by the
Company of a Business Combination or the liquidation of the Company. The undersigned’s biographical information previously furnished
to the Company and the Representative is true and accurate in all material respects, does not omit any material information with respect
to the undersigned’s biography and contains all of the information required to be disclosed pursuant to Item 401 of Regulation
S-K, promulgated under the Securities Act of 1933.]3 The FINRA Questionnaire of each of the undersigned officers and
directors previously furnished to the Company and the Representative is true and accurate in all material respects. Each of the undersigned
represents and warrants that:

 

	 	(a)	He, she or
    it has never had a petition under the federal bankruptcy laws or any state insolvency law been filed by or against (i) him,
    her or it, or any partnership in which he or she was a general partner at or within two years before the time of filing; or (ii) any
    corporation or business association of which he or she was an executive officer at or within two years before the time of such filing;

 

    2

     

    

 

	 	(b)	He, she or
    it has never had a receiver, fiscal agent or similar officer been appointed by a court for his business or property, or any such
    partnership;

 

	 	(c)	He, she or
    it has never been convicted of fraud in a civil or criminal proceeding;

 

	 	(d)	He, she or
    it has never been convicted in a criminal proceeding or named the subject of a pending criminal proceeding (excluding traffic violations
    and minor offenses);

 

	 	(e)	He, she or
    it has never been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of
    competent jurisdiction, permanently or temporarily enjoining or otherwise limiting him, her or it from (i) acting as a futures
    commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant,
    any other person regulated by the Commodity Futures Trading Commission (“CFTC”) or an associated person of any of the
    foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee
    of any investment company, bank, savings and loan association or insurance company, or from engaging in or continuing any conduct
    or practice in connection with any such activity; or (ii) engaging in any type of business practice; or (iii) engaging
    in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal
    or state securities or federal commodities laws;

 

	 	(f)	He, she, or
    it has never been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or
    state authority barring, suspending or otherwise limiting for more than 60 days his, her or its right to engage in any activity described
    in 11(e)(i) above, or to be associated with persons engaged in any such activity;

 

	 	(g)	He, she, or
    it has never been found by a court of competent jurisdiction in a civil action or by the SEC to have violated any federal or state
    securities law, where the judgment in such civil action or finding by the SEC has not been subsequently reversed, suspended or vacated;

 

	 	(h)	He, she, or
    it has never been found by a court of competent jurisdiction in a civil action or by the CFTC to have violated any federal commodities
    law, where the judgment in such civil action or finding by the CFTC has not been subsequently reversed, suspended or vacated;

 

	 	(i)	He, she, or
    it has never been the subject of, or a party to, any Federal, State or foreign judicial or administrative order, judgment, decree
    or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of (i) any Federal, State or foreign
    securities or commodities law or regulation, (ii) any law or regulation respecting financial institutions or insurance companies
    including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or
    temporary or permanent cease-and desist order, or removal or prohibition order or (iii) any law or regulation prohibiting mail
    or wire fraud or fraud in connection with any business entity;

 

	 	(j)	He, she or
    it has never been the subject of, or party to, any sanction or order, not subsequently reversed, suspended or vacated, or any self-regulatory
    organization, any registered entity, or any equivalent exchange, association, entity or organization that has disciplinary authority
    over its members or persons associated with a member;

 

    3

     

    

 

	 	(k)	He, she or
    it has never been convicted of any felony or misdemeanor: (i) in connection with the purchase or sale of any security; (ii) involving
    the making of any false filing with the SEC; or (iii) arising out of the conduct of the business of an underwriter, broker,
    dealer, municipal securities dealer, investment advisor or paid solicitor of purchasers of securities;

 

	 	(l)	He, she or
    it was never subject to a final order of a state or foreign securities commission (or an agency of officer of a state performing
    like functions); a state or foreign authority that supervises or examines banks, savings associations, or credit unions; a state
    or foreign insurance commission (or an agency or officer of a state performing like functions); an appropriate federal or foreign
    banking agency; the CFTC; or the National Credit Union Administration that is based on a violation of any law or regulation that
    prohibits fraudulent, manipulative, or deceptive conduct;

 

	 	(m)	He, she or
    it has never been subject to any order, judgment or decree of any court of competent jurisdiction, that, at the time of the sale
    of the Units, restrained or enjoined him, her or it from engaging or continuing to engage in any conduct or practice: (i) in
    connection with the purchase or sale of any security; (ii) involving the making of any false filing with the SEC or any foreign
    regulatory agency with similar functions; or (iii) arising out of the conduct of the business of an underwriter, broker, dealer,
    municipal securities dealer, investment adviser or paid solicitor of purchasers of securities;

 

	 	(n)	He, she or
    it has never been subject to any order of the SEC or any foreign regulatory agency with similar functions that orders him, her or
    it to cease and desist from committing or causing a future violation of: (i) any scienter-based anti-fraud provision of the
    federal securities laws, including, but not limited to, Section 17(a)(1) of the Securities Act, Section 10(b) of
    the Exchange Act and Rule 10b-5 thereunder, Section 15(c) and Section 206(1) of the Advisers Act or any
    other rule or regulation thereunder; or (ii) Section 5 of the Securities Act;

 

	 	(o)	He, she or
    it has never filed (as a registrant or issuer), or been named as an underwriter in any registration statement or Regulation A offering
    statement filed with the SEC that was the subject of a refusal order, stop order, or order suspending the Regulation A exemption,
    or is, currently, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued;

 

	 	(p)	He, she or
    it has never been subject to a United States Postal Service false representation order, or is currently subject to a temporary restraining
    order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device
    for obtaining money or property through the mail by means of false representations;

 

	 	(q)	He, she or
    it is not subject to a final order of a state securities commission (or an agency of officer of a state performing like functions);
    a state authority that supervises or examines banks, savings associations, or credit unions; a state insurance commission (or an
    agency or officer of a state performing like functions); an appropriate federal banking agency; the CFTC; or the National Credit
    Union Administration that bars the undersigned from: (i) association with an entity regulated by such commission, authority,
    agency or officer; (ii) engaging in the business of securities, insurance or banking; or (iii) engaging in savings association
    or credit union activities;

 

	 	(r)	He, she or
    it is not subject to an order of the SEC entered pursuant to section 15(b) or 15B(c) of the Securities Exchange Act of
    1934 (the “Exchange Act”) or section 203(e) or 203(f) of the Investment Advisers Act of 1940 (the “Advisers
    Act”) that: (i) suspends or revokes the undersigned’s registration as a broker, dealer, municipal securities dealer
    or investment adviser; (ii) places limitations on the activities, functions or operations of, or imposes civil money penalties
    on, such person; or (iii) bars the undersigned from being associated with any entity or from participating in the offering of
    any penny stock; and

 

	 	(s)	He, she or
    it has never been suspended or expelled from membership in, or suspended or barred from association with a member of, a securities
    self-regulatory organization (e.g., a registered national securities exchange or a registered national or affiliated securities association)
    for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade.

 

    4

     

    

 

12. The undersigned has full
right and power, without violating any agreement by which he, she or it is bound, to enter into this letter agreement and to serve as
a Director and/or officer of the Company, as applicable.

 

13. The undersigned hereby
waives his, her or its right to exercise redemption rights with respect to any shares of Common Stock owned or to be owned by the undersigned,
directly or indirectly, whether purchased by the undersigned prior to the IPO, in the IPO or in the aftermarket, and agrees that he,
she or it will not seek redemption with respect to or otherwise sell, such shares in connection with any vote to approve a Business Combination
with respect thereto, a vote to amend the provisions of the Company’s Amended and Restated Certificate of Incorporation, or a tender
offer by the Company prior to a Business Combination.

 

14. The undersigned hereby
agrees to not propose, or vote in favor of, an amendment to the Company’s Amended and Restated Certificate of Incorporation with
respect to the Company’s pre-Business Combination activities prior to the consummation of a Business Combination unless the Company
offers holders of IPO Shares the right to receive their pro rata portion of the funds then held in the Trust Fund.

 

15. In connection with Section 5-1401
of the General Obligations Law of the State of New York, this letter agreement shall be governed by, and construed in accordance with,
the laws of the State of New York without regard to principles of conflicts of law that would result in the application of the substantive
law of another jurisdiction. The parties hereto agree that any action, proceeding or claim arising out of or relating in any way to this
letter agreement shall be resolved through final and binding arbitration in accordance with the International Arbitration Rules of
the American Arbitration Association (“AAA”). The arbitration shall be brought before the AAA International Center for Dispute
Resolution’s offices in New York City, New York, will be conducted in English and will be decided by a panel of three arbitrators
selected from the AAA Commercial Disputes Panel and that the arbitrator panel’s decision shall be final and enforceable by any
court having jurisdiction over the party from whom enforcement is sought. The cost of such arbitrators and arbitration services, together
with the prevailing party’s legal fees and expenses, shall be borne by the non-prevailing party or as otherwise directed by the
arbitrators.

 

16. As used herein, (i) a
“Business Combination” shall mean a merger, share exchange, asset acquisition, contractual arrangement,
share purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities; (ii) “Insiders”
shall mean all officers, directors and shareholders of the Company immediately prior to the IPO; (iii) “Insider Shares”
shall mean all of the shares of Common Stock of the Company acquired by an Insider prior to the IPO and any shares of Common Stock underlying
the Private Units; (iv) “IPO Shares” shall mean the shares of Common Stock issued in the Company’s
IPO; (v) “Private Units” shall mean (x) the Units purchased in the private placement taking place
simultaneously with the consummation of the Company’s IPO and (y) the additional Units that may be purchased in connection
with the exercise of the over-allotment option by the underwriters in the IPO as described in the Registration Statement; (vi) “Registration
Statement” means the registration statement on Form S-1 filed by the Company with respect to the IPO; and (vii) “Trust
Fund” shall mean the trust fund into which a portion of the net proceeds of the Company’s IPO will be deposited.

 

17. 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.

 

If to the Representative:

 

Network 1 Financial Securities, Inc.

2 Bridge Ave #241

Red Bank, NJ 07701

Attn: Karen (Huiyun) Mu

Facsimile: (732) 758-6671

 

    5

     

    

 

with a copy (which copy shall not constitute
notice) to:

 

Ortoli Rosenstadt
LLP

366 Madison
Ave 3rd floor

New York, NY
10017

Attn: Yarona
L. Yieh

Fax No.: (212)
588-0022

 

If to the Company:

 

Mountain Crest
Acquisition Corp. IV

311 West 43rd
Street, 12 Floor

New York, NY
10036

Attn: Suying
Liu, Chief Executive Officer

 

with a copy (which copy shall not constitute
notice) to:

 

Loeb &
Loeb LLP 

345 Park Avenue

New York, NY
10154

Attn: Giovanni
Caruso, Esq.

Facsimile: (212)
407-4990

 

18. 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
party. 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 the parties hereto and any successors and
assigns thereof.

 

19. The undersigned acknowledges
and understands that the Underwriters and the Company will rely upon the agreements, representations and warranties set forth herein
in proceeding with the IPO.

 

[Signature Page Follows]

 

    6

     

    

 

	Sincerely,	 

 

	 	

    Mountain Crest Holdings IV LLC
	 	 	 
	 	By:	/s/
    Suying Liu
	 	 	Name: Suying Liu
	 	 	Title: Chairman, Chief
    Executive Officer and Chief Financial Officer
	 	 	 
	 	DIRECTORS
    AND OFFICERS
	 	 	 
	 	By: 	/s/
    Suying Liu
	 	 	Suying Liu
	 	 	 
	 	By:	/s/
    Nelson Haight
	 	 	Nelson Haight
	 	 	 
	 	By:	/s/
    Todd Milbourn
	 	 	Todd Milbourn
	 	 	 
	 	By:	/s/
    Wenhua Zhang
	 	 	Wenhua Zhang

 

[SIGNATURE PAGE TO LETTER
AGREEMENT]

 

    7

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