Document:

Exhibit 10.7

 

May 17, 2021

 

Mountain Crest Acquisition Corp. III

311 West 43rd Street, 12th Floor

New York, NY 10036

 

Ladies and Gentlemen:

 

Mountain Crest Acquisition Corp.
III (the “Company”), a blank check company formed for the purpose of acquiring one or more businesses or entities (a “Business
Combination”), intends to register its securities under the Securities Act of 1933, as amended (“Securities Act”), in
connection with its initial public offering (“IPO”), pursuant to a registration statement on Form S-1 (“Registration
Statement”).

 

The undersigned hereby commits
that it will purchase 75,000 units of the Company (“Placement Units”), each Placement Unit consisting of one share of common
stock of the Company, $0.0001 par value (the “Common Stock”) and one right to receive one-tenth of one share of common stock
upon the consummation of an initial Business Combination, at $10.00 per Placement Unit, for a purchase price of $750,000 (the “Placement
Unit Purchase Price”).

 

The undersigned hereby agrees
that it will purchase an additional amount of units of the Company (“Over-Allotment Units”), up to a maximum of 11,250 Over-Allotment
Units, or a maximum purchase price of $112,500 (“Over-Allotment Unit Purchase Price”, together with the Placement Unit Purchase
Price, the “Purchase Price”), purchased by Chardan Capital Markets, LLC (the “Underwriter”) so that at least $10,00
per share sold to the public in the IPO is held in the trust account (as described in the Registration Statement, the “Trust Account”)
regardless of whether the over-allotment option is exercised in full or in part.

 

The consummation of the purchase
and issuance of the Placement Units shall occur simultaneously with the consummation of the IPO and the consummation of the purchase and
issuance of the Over-Allotment Units shall occur simultaneously with the closing of any exercise of the over-allotment option related
to the IPO. Simultaneously with or prior to the consummation of the IPO, the undersigned shall deposit the Placement Unit Purchase Price
into the Trust Account.

 

The Placement Units and Over-Allotment
Units will be identical to the units to be sold by the Company in the IPO. Additionally, the undersigned agrees:

 

	 	●	to vote the shares of Common Stock included in the Placement Units and Over-Allotment Units in favor of any proposed Business Combination;

 

	 	●	not to propose, or vote in favor of, an amendment to the Company’s Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) that would affect the substance or timing of the Company’s obligation to redeem 100% of the Company’s shares of Common Stock sold in the IPO if the Company does not complete an initial Business Combination within 12 months from the closing of the IPO (or up to 18 months, as applicable), unless the Company provides the holders of shares of Common Stock underlying the units sold in the IPO 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 of the Trust Account, including interest earned on Trust Account and not previously released to the Company to pay the Company’s franchise and income taxes, divided by the number of then outstanding shares of Common Stock underlying the units sold in the IPO;

 

    

     

    

 

	 	●	not to convert any shares of Common Stock included in the Placement Units and Over-Allotment Units into the right to receive cash from the Trust Account in connection with a shareholder vote to approve either a Business Combination or an amendment to the provisions of the Certificate of Incorporation, and not to tender any shares of Common Stock included in the Placement Units and Over-Allotment Units in connection with a tender offer conducted prior to the closing of a Business Combination;

 

	 	●	that the undersigned will not participate in any liquidation distribution with respect to the Placement Units and Over-Allotment Units or any underlying securities (but will participate in liquidation distributions with respect to any units or shares of Common Stock purchased by the undersigned in the IPO or in the open market) if the Company fails to consummate a Business Combination;

 

	 	●	that the Placement Units, Over-Allotment Units and underlying securities will not be transferable until after the consummation of a Business Combination except (i) to the Company’s pre-IPO shareholders, or to the Company’s officers, directors, advisors and employees, (ii) transfers to the undersigned’s affiliates or its members upon its liquidation, (iii) to relatives and trusts for estate planning purposes, (iv) by virtue of the laws of descent and distribution upon death, (v) pursuant to a qualified domestic relations order, (vi) by private sales made in connection with the consummation of a Business Combination at prices no greater than the price at which the Placement Units were originally purchased or (vii) to the Company for cancellation in connection with the consummation of a Business Combination, in each case (except for clause vii) where the transferee agrees to the terms of the transfer restrictions; and

 

	 	●	the Placement Units and Over-Allotment Units will include any additional terms or restrictions as is customary in other similarly structured blank check company offerings or as may be reasonably required by the underwriters in the IPO in order to consummate the IPO, each of which will be set forth in the Registration Statement.

 

The undersigned acknowledges
and agrees that the purchaser of the Placement Units and Over-Allotment Units will execute agreements in form and substance typical for
transactions of this nature necessary to effectuate the foregoing agreements and obligations prior to the consummation of the IPO as are
reasonably acceptable to the undersigned, including but not limited to an insider letter.

 

The undersigned further acknowledges
and agrees that the Placement Units and their component parts and the related registration rights will be deemed compensation by the Financial
Industry Regulatory Authority (“FINRA”) and will therefore, pursuant to Rule 5110(g) of the FINRA Manual, be subject
to lock-up for a period of 180 days immediately following the date of effectiveness or commencement of sales in the IPO, subject to FINRA
Rule 5110(g)(1). Additionally, the Placement Units and their component parts and the related registration rights may not be sold,
transferred, assigned, pledged or hypothecated during the foregoing 180 day period following the effective date of the Registration Statement
except to any underwriter or selected dealer participating in the IPO and the bona fide officers or partners of the undersigned and any
such participating underwriter or selected dealer. Additionally, the Placement Units and their component parts and the related registration
rights will not be the subject of any hedging, short sale, derivative, put or call transaction that would result in the economic disposition
of such securities by any person for a period of 180 days immediately following the date of effectiveness or commencement of sales in
the IPO. Additionally, the undersigned may not exercise demand or piggyback rights with respect to the Placement Units and their components
parts after five (5) and seven (7) years, respectively, from the effective date of the Registration Statement and may not exercise
demand rights on more than one occasion.

 

    2 

     

    

 

The undersigned hereby represents
and warrants that:

 

	 	(a)	it has been advised that the Placement Units and Over-Allotment Units have not been registered under the Securities Act;

 

	 	(b)	it will be acquiring the Placement Units and Over-Allotment Units for its account for investment purposes only;

 

	 	(c)	it has no present intention of selling or otherwise disposing of the Placement Units and Over-Allotment Units in violation of the securities laws of the United States;

 

	 	(d)	it is an “accredited investor” as defined by Rule 501 of Regulation D promulgated under the Securities Act;

 

	 	(e)	it has had both the opportunity to ask questions and receive answers from the officers and directors of the Company and all persons acting on its behalf concerning the terms and conditions of the offer made hereunder;

 

	 	(f)	it is familiar with the proposed business, management, financial condition and affairs of the Company;

 

	 	(g)	it has full power, authority and legal capacity to execute and deliver this letter and any documents contemplated herein or needed to consummate the transactions contemplated in this letter; and

 

	 	(h)	this letter constitutes its legal, valid and binding obligation, and is enforceable against it.

 

    3 

     

    

 

 

This letter agreement constitutes
the entire agreement between the undersigned and the Company with respect to the purchase of the Placement Units and Over-Allotment Units,
and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect
to the same.

 

	 	 	Very truly yours,
	 	 	 
	 	 	CHARDAN CAPITAL MARKETS, LLC
	 	 	 
	 	 	By:	/s/ Shai Gerson                                                      
	 	 	Name:	Shai Gerson  
	 	 	Title:	Managing Director

 

	Accepted and Agreed:	 	 
	 	 	 
	MOUNTAIN CREST ACQUISITION CORP. III	 	 
	 	 	 
	By:	/s/ Suying Liu	 	 
		Name:	Suying Liu 	 	 
		Title:	Chief Executive Officer	 	 

 

    4Exhibit 10.8

 

MOUNTAIN CREST ACQUISITION CORP. III

311 West 43rd Street, 12th Floor

New York, NY 10036

 

May 17, 2021

 

Mountain Crest Holdings III LLC

311 West 43rd Street, 12th Floor

New York, NY 10036

 

Ladies and Gentlemen:

 

This letter will confirm our
agreement that, commencing on the effective date (the “Effective Date”) of the registration statement (the “Registration
Statement”) for the initial public offering (the “IPO”) of the securities of Mountain Crest Acquisition
Corp. III (the “Company”) and continuing until the earlier of (i) the consummation by the Company of an initial
business combination or (ii) the Company’s liquidation (in each case as described in the Registration Statement) (such earlier date
hereinafter referred to as the “Termination Date”), Mountain Crest Holdings III LLC (“Sponsor”)
shall make available to the Company certain office space, secretarial and administrative services as may be required by the Company from
time to time, situated at 311 West 43rd Street, 12th Floor, New York, NY 10036 (or any successor location). In exchange therefore, the
Company shall pay Sponsor a sum not to exceed $10,000 per month, respectively, on the Effective Date and continuing monthly thereafter
until the Termination Date. Sponsor hereby agrees that it does not have any right, title, interest or claim of any kind in or to any monies
that may be set aside in a trust account (the “Trust Account”) that may be established by the Company for the
benefit of the Company’s public stockholders upon the consummation of the IPO as described in the Registration Statement (“Claim”)
and hereby waives any Claim it may have in the future as a result of, or arising out of, any negotiations, contracts or agreements with
the Company and will not seek recourse against the Trust Account for any reason whatsoever.

 

	 	Very truly yours,
	 	 
	 	MOUNTAIN CREST ACQUISITION CORP. III
	 	 
	 	By:	/s/ Suying Liu 
	 	Name:	Suying Liu
	 	Title:	Chief Executive Officer

  

	AGREED TO AND ACCEPTED BY:	 
	 	 
	MOUNTAIN CREST HOLDINGS III LLC	 
	 	 
	By: 	/s/ Suying Liu 	 
	Name:	Suying Liu	 
	Title:	Member

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