Document:

Exhibit
10.1 

 

[●],
2021

 

Mountain
Crest Acquisition Corp. II

311
West 43rd Street, 12th Floor

New
York, NY 10036

 

Chardan
Capital Markets, LLC

17
State Street, Suite 1600

New
York, NY 10004

 

		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. II, a Delaware corporation (the “Company”),
and Chardan Capital Markets, LLC, 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 9 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 15 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, the undersigned 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.]1

 

 

 

		1	Mountain
Crest Capital LLC only.

 

     

     

    

 

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, the undersigned agrees to advance
such funds necessary to complete such liquidation and agrees not to seek recourse for such expenses.]2

 

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.
       [The undersigned agrees to be a [director/officer] 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 undersigned’s FINRA
Questionnaire previously furnished to the Company and the Representative is true and accurate in all material respects.
The undersigned represents and warrants that:

 

 

 

		2	Mountain
Crest Capital LLC only.

		3	Directors
and Officers only.

 

    2

     

    

 

	 	(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;

 

	 	(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].

 

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:

 

Chardan
Capital Markets, LLC

17
State Street, Suite 1600

New
York, NY 10004

Attn:
Shai Gerson

Facsimile:
(646) 465-9039

 

    5

     

    

 

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

 

Reed
Smith LLP

599
Lexington Avenue

New
York, New York 10022

Attn:
Ari Edelman

Fax
No.: (212) 521-5450

 

If
to the Company:

 

Mountain
Crest Acquisition Corp. II

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,	 
	 	 
	By:	 	 
	 	Name of Insider:	 

 

 

[SIGNATURE
PAGE TO LETTER AGREEMENT]

 

    7Exhibit
10.2

 

INVESTMENT
MANAGEMENT TRUST AGREEMENT

 

This
Investment Management Trust Agreement (this “Agreement”) is made as of [●], 2021 by and between Mountain
Crest Acquisition Corp. II (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. 333-251557 (“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,
Chardan Capital Markets, LLC (“Chardan”) is acting as the representative of the underwriters in the IPO; and

 

WHEREAS, simultaneously
with the IPO, Mountain Crest Capital LLC and Chardan will be purchasing up to 185,000 private units (“Private Placement
Units”) at $10.00 per private unit, of which 135,000 private units will be purchased by Mountain Crest Capital LLC and 50,000
Private Units will be purchased by Chardan (for a total purchase price of $1,850,000). Mountain Crest Capital LLC and Chardan
have also agreed that if the over-allotment option is exercised by the underwriters, they will purchase from us up to a maximum
of an additional 15,000 private units at a price of $10.00 per private unit, of which up to 7,500 private units will be purchased
by Mountain Crest Capital LLC and up to 7,500 private units will be purchased by Chardan.

 

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 Chardan, 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 9-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 15
months from the closing of the IPO but has not completed the Business Combination within such 15-month period, the 15 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 Article [●] of 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.

 

(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.

 

    3

     

    

 

(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;

 

(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.

 

    4

     

    

 

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.

 

(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.

 

    5

     

    

 

(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. II

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:

 

Chardan
Capital Markets, LLC

17 State Street, Suite 1600

New York, NY 10004

Attn: Shai Gerson

Facsimile: (646) 465-9039

 

and:

 

Loeb
& Loeb LLP

345 Park Avenue

New York, NY 10154

Attn: Giovanni Caruso

Fax No.: (212) 937-3943

 

and:

 

Reed
Smith LLP

599
Lexington Avenue

New
York, New York 10022

Attn:
Ari Edelman

Fax
No.: (212) 521-5450

 

(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.

 

    6

     

    

 

(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:	
			Name:	 [Francis E. Wolf, Jr.]
			Title: 	[Vice President]

 

		MOUNTAIN CREST ACQUISITION CORP.
    II
	 	 
		By:	
			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. II (“Company”)
and Continental Stock Transfer & Trust Company (“Trustee”), dated as of [*], 2020 (“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 Chardan Capital Markets, LLC 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.
    II
	 	 
		By:	
			Name:	 
			Title:	 

 

 

		By:	
			Name:	 
			Title: 	Secretary/Assistant Secretary

 

Acknowledged
and Agreed:

Chardan
Capital Markets, LLC

 

	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. II (“Company”)
and Continental Stock Transfer & Trust Company (“Trustee”), dated as of [*], 2020 (“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.
    II
	 	 
		By:	
			Name:	 
			Title:	 

 

 

		By:	
			Name:	 
			Title: 	Secretary/Assistant Secretary

 

		cc:	Chardan
Capital Markets, LLC

 

    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. II (“Company”)
and Continental Stock Transfer & Trust Company, LLC (“Trustee”), dated as of [*], 2020 (“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.
    II
	 	 
		By:	
			Name:
			Title:

 

		cc:	Chardan
Capital Markets, LLC

 

    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. II (“Company”) and Continental
Stock Transfer & Trust Company, dated as of [*], 2020 (“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 9 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.
    II
	 	 
		By:	
			Name:
			Title:

 

		cc:	Chardan
Capital Markets, LLC

 

    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 (“Company”)
and Continental Stock Transfer & Trust Company, dated as of [*], 2020 (“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.
    II
	 	 
		By:	
			Name:
			Title:

 

	cc:	Chardan
    Capital Markets, LLC

 

    E-1

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