Document:

Exhibit
4.4

 

RIGHTS
AGREEMENT

 

This
Rights Agreement (this “Agreement”) is made as of [  ], 2021 between Sagaliam Acquisition Corp., a Delaware corporation (the
“Company”), and Continental Stock Transfer & Trust Company, a New York corporation, with offices at 1 State Street, 30th
Floor, New York, New York 10004 (the “Rights Agent”).

 

WHEREAS,
the Company is engaged in a public offering (“Public Offering”) of units, each unit (“Unit”) comprised of one
share of Class A common stock with par value $0.0001 per share of the Company (“Common Stock”) and one right to receive one-eighth
of one share of Common Stock (each a “Right” and collectively, the “Rights”), subject to adjustment, upon
the happening of the triggering event described herein;

 

WHEREAS,
in connection with the Public Offering, the Company will issue and deliver up to 10,000,000 Rights (or up to 11,500,000 Rights if the
underwriters’ over-allotment option is exercised in full) to the public investors;

 

WHEREAS,
the Company’s sponsor (as defined in the Registration Statement) has agreed to purchase up to 370,000 Units (or
up to 400,000 Units if the underwriters’ over-allotment option is exercised in full), and in connection therewith, the Company
will issue and deliver up to an aggregate of 370,000 Rights (or up to 400,000 Rights if the underwriters’ over-allotment
option is exercised in full) as part of such Units upon consummation of such private placement;

 

WHEREAS,
the Company may issue up to 150,000 Units upon conversion of certain working capital loans made by the Company to the sponsor (as defined
in the Registration Statement) or an affiliate of the sponsor or certain of the Company’s officers and directors, and in connection
therewith, the Company will issue and deliver up to an aggregate of 150,000 Rights as part of such Units upon consummation of such conversion;

 

WHEREAS,
the Company has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-1, File
No. 333-256473 (“Registration Statement”), and related Prospectus (“Prospectus”) for the registration,
under the Securities Act of 1933, as amended (“Act”), of, among other securities, the Rights and the Common Stock issuable
to the holders of the Rights underlying the Units to be sold in the Public Offering;

 

WHEREAS,
the Company desires the Rights Agent to act on behalf of the Company, and the Rights Agent is willing to so act, in connection with the
issuance, registration, transfer and exchange of the Rights;

 

WHEREAS,
the Company desires to provide for the form and provisions of the Rights, the terms upon which they shall be issued, and the respective
rights, limitation of rights, and immunities of the Company, the Rights Agent, and the holders of the Rights; and

 

WHEREAS,
all acts and things have been done and performed which are necessary to make the Rights, when executed on behalf of the Company and countersigned
by or on behalf of the Rights Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize the
execution and delivery of this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows:

 

	1.	Appointment of Rights Agent. The Company hereby appoints
the Rights Agent to act as agent for the Company for the Rights, and the Rights Agent hereby accepts such appointment and agrees to perform
the same in accordance with the terms and conditions set forth in this Agreement.

 

	2.	Rights.

 

	 	2.1	Form of Right. Each Right shall be issued in book-entry
or certificated form. Any Rights issued in certificated form shall be in substantially the form of Exhibit A hereto, the provisions
of which are incorporated herein and shall be signed by, or bear the facsimile signature of, the Chairman of the Board, Chief Executive
Officer, or Chief Financial Officer of the Company . In the event the person whose facsimile signature has been placed upon any Right
shall have ceased to serve in the capacity in which such person signed the Right before such Right is issued, it may be issued with the
same effect as if he or she had not ceased to be such at the date of issuance.

 

	 	2.2	Effect of Countersignature. Unless and until countersigned
by the Rights Agent pursuant to this Agreement, a certificated Right shall be invalid and of no effect and may not be exchanged for Common
Stock.

 

    	 

     

    

 

	 	2.3	Registration.

 

	 	2.3.1.	Right Register. The Rights Agent shall maintain books
(“Right Register”) for the registration of original issuance and the registration of transfer of the Rights. Upon the initial
issuance of the Rights, the Rights Agent shall issue and register the Rights in the names of the respective holders thereof in such denominations
and otherwise in accordance with instructions delivered to the Rights Agent by the Company.

 

	 	2.3.2.	Registered Holder. Prior to due presentment for registration
of transfer of any Right, the Company and the Rights Agent may deem and treat the person in whose name such Right shall be registered
upon the Right Register (“registered holder”) as the absolute owner of such Right and of each Right represented thereby (notwithstanding
any notation of ownership or other writing on a Right Certificate made by anyone other than the Company or the Rights Agent), for the
purpose of the exchange thereof, and for all other purposes, and neither the Company nor the Rights Agent shall be affected by any notice
to the contrary.

 

	 	2.4	Detachability of
  Rights. The securities comprising the Units, including the Rights, will not be separately transferable until the earlier to
  occur of: (i) the 52nd day following the date of the Prospectus or (ii) the announcement by EF Hutton,  division of
  Benchmark Investments, LLC (the “Representative”) of its intention to allow separate earlier trading, except that in
  no event will the securities comprising the Units be separately tradeable until the Company files a Current Report on Form 8-K with
  the SEC which includes an audited balance sheet reflecting the receipt by the Company of the gross proceeds of the Public Offering
  including the proceeds received by the Company from the exercise of the over-allotment option, if the over-allotment option is
  exercised by the date thereof and the Company issues a press release and files a Current Report on Form 8-K with the SEC announcing
  when such separate trading shall begin.

 

	3.	Terms and Exchange of Rights

 

	 	3.1	Rights. Each Right
  shall entitle the holder thereof to receive one-eighth of one share of Common Stock upon the happening of an Exchange Event
  (defined below). No additional consideration shall be paid by a holder of Rights in order to receive his, her or its Common Stock upon
  an Exchange Event as the purchase price for such Common Stock has been included in the purchase price for the Units. In no event will
  the Company be required to net cash settle the Rights or issue fractional shares of Common Stock.

 

	 	3.2	Exchange Event. An “Exchange Event” shall
occur upon the Company’s consummation of an initial Business Combination (as described in the Company’s Amended and Restated
Certificate of Incorporation).

 

	 	3.3	Exchange of Rights.

 

	 	3.3.1.	Issuance of Certificates. As soon as practicable upon
the occurrence of an Exchange Event, (i) the Rights Agent shall automatically exchange all Rights held in book-entry form and issue to
the registered holder of such Rights the number of whole shares of Common stock to which he, she or it is entitled in such holder’s
name in book-entry form, and (ii) the Company shall direct holders of Rights held in certificated form to return their Rights Certificates
to the Rights Agent. Upon receipt of a valid Rights Certificate, the Company shall issue to the registered holder of such Right(s) the
number of whole shares of Common Stock to which he, she or it is entitled, registered in such name or names as may be directed by him,
her or it and issue to such registered holder(s) a certificate or book-entry position for such shares. Notwithstanding the foregoing,
or any provision contained in this Agreement to the contrary, in no event will the Company be required to net cash settle the Rights.
The Company shall not issue fractional shares upon exchange of Rights. At the time of the Exchange Event, the Company will instruct the
Right Agent to round down to the nearest whole share of Common Stock or otherwise inform it how fractional shares will be addressed in
accordance with Delaware law, including the issuance of time-limited script for any such fractional shares in accordance with Section
155 of the Delaware General Corporation Law; provided, however, that holders of Rights shall have not less than 1 year from the date
of the Exchange Event in order to exchange their Rights (or any script or warrant issued in lieu of fractional shares).

 

	 	3.3.2.	Valid Issuance. All shares of Common Stock issued upon
an Exchange Event in conformity with this Agreement shall be validly issued, fully paid and nonassessable.

 

	 	3.3.3.	Date of Issuance. Each person in whose name any such
certificate or book-entry position for shares of Common Stock is issued shall for all purposes be deemed to have become the holder of
record of such shares on the date of the Exchange Event, irrespective of the date of delivery of such certificate or entry of position.

 

    	2

     

    

 

	 	3.3.4.	Company Not Surviving
  Following Exchange Event. Upon an Exchange Event in which the Company does not continue as the publicly held reporting entity,
  the definitive agreement will provide for the holders of Rights to receive the same per share consideration the holders of the Common
  Stock will receive in such transaction, for the number of shares such holder is entitled to pursuant to Section 3.3.1 above. If the
  Company does not continue as the publicly held reporting entity upon an Exchange Event, each holder of a Right will be required to
  affirmatively convert his/her or its rights in order to receive the 1/8 share underlying each right (without paying any additional
  consideration) upon consummation of the Exchange Event. In such a case, each holder of a Right will be required to indicate his, her
  or its election to convert the Rights into underlying shares as well as to return the original certificates evidencing the Rights to
  the Company.

 

	 	3.4	Duration of Rights. The Rights shall expire and shall
be worthless on the 1 year anniversary of the Exchange Event. If an Exchange Event does not occur within the time period set forth in
the Company’s Amended and Restated Certificate of Incorporation, as the same may be amended from time to time, the Rights shall
expire and shall be worthless.

 

	4.	Transfer and Exchange of Rights.

 

	 	4.1	Registration of Transfer. The Rights Agent shall register
the transfer, from time to time, of any outstanding Right upon the Right Register, upon surrender of such Right for transfer, properly
endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new
Right representing an equal aggregate number of Rights shall be issued and the old Right shall be cancelled by the Rights Agent. The
Rights so cancelled shall be delivered by the Rights Agent to the Company from time to time upon request.

 

	 	4.2	Procedure for Surrender of Rights. Rights may be surrendered
to the Rights Agent, together with a written request for exchange or transfer, and thereupon the Rights Agent shall issue in exchange
therefor one or more new Rights as requested by the registered holder of the Rights so surrendered, representing an equal aggregate number
of Rights; provided, however, that in the event that a Right surrendered for transfer bears a restrictive legend and the new Rights to
be issued will not bear a restrictive legend, the Rights Agent shall not cancel such Right and issue new Rights in exchange therefor
until the Rights Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating no restrictive
legend is required.

 

	 	4.3	Fractional Rights. The Rights Agent shall not be required
to effect any registration of transfer or exchange which will result in the issuance of a Right Certificate for a fraction of a Right.

 

	 	4.4	Service Charges. No service charge shall be made for
any exchange or registration of transfer of Rights.

 

	 	4.5	Right Execution and Countersignature. The Rights Agent
is hereby authorized to countersign and to deliver, in accordance with the terms of this Agreement, the Rights to be issued in certificated
form required to be issued pursuant to the provisions of this Section 4, and the Company, whenever required by the Rights Agent, will
supply the Rights Agent with Rights duly executed on behalf of the Company for such purpose.

 

	 	4.6	Adjustments to Conversion Ratios. The number of shares
of common stock that the holders of Rights are entitled to receive as a result of the occurrence of the Exchange Event shall be equitably
adjusted to reflect appropriately the effect of any share split, reverse share split, share dividend, reorganization, recapitalization,
reclassification, combination, exchange of shares or other like change with respect to the shares of common stock occurring on or after
the date hereof and prior to the Exchange Event.

 

	5.	Other Provisions Relating to Rights of Holders of Rights.

 

	 	5.1	No Rights as Shareholder. Until exchange of a Right
as provided for herein, a Right does not entitle the registered holder thereof to any of the rights of a shareholder of the Company,
including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights to vote or to consent
or to receive notice as shareholders in respect of the meetings of shareholders or the election of directors of the Company or any other
matter.

 

	 	5.2	Lost, Stolen, Mutilated, or Destroyed Rights. If any
Right certificate is lost, stolen, mutilated, or destroyed, the Company and the Rights Agent may on such terms as to indemnity or otherwise
as they may in their discretion impose (which shall, in the case of a mutilated Right certificate, include the surrender thereof), issue
a new Right certificate of like denomination, tenor, and date as the Right certificate so lost, stolen, mutilated, or destroyed. Any
such new Right certificate shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen,
mutilated, or destroyed Right certificate shall be at any time enforceable by anyone.

 

    	3

     

    

 

	 	5.3	Reservation of Shares. The Company shall at all times
reserve and keep available a number of its authorized but unissued shares of Common Stock that will be sufficient to permit the exchange
of all outstanding Rights issued pursuant to this Agreement.

 

	6.	Concerning the Rights Agent and Other Matters.

 

	 	6.1	Payment of Taxes. The Company will from time to time
promptly pay all taxes and charges that may be imposed upon the Company or the Rights Agent in respect of the issuance or delivery of
shares of Common Stock upon the exchange of Rights, but the Company shall not be obligated to pay any transfer taxes in respect of the
Rights or such shares of Common Stock.

 

	 	6.2	Resignation, Consolidation, or Merger of Rights Agent.

 

	 	6.2.1.	Appointment of Successor Rights Agent. The Rights Agent,
or any successor to it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities hereunder
after giving thirty (30) days’ notice in writing to the Company. If the office of the Rights Agent becomes vacant by resignation
or incapacity to act or otherwise, the Company shall appoint in writing a successor Rights Agent in place of the Rights Agent. If the
Company shall fail to make such appointment within a period of 30 days after it has been notified in writing of such resignation or incapacity
by the Rights Agent or by the holder of the Right (who shall, with such notice, submit his, her or its Right for inspection by the Company),
then the holder of any Right may apply to the Supreme Court of the State of New York for the County of New York for the appointment of
a successor Rights Agent at the Company’s cost. Any successor Rights Agent, whether appointed by the Company or by such court,
shall be a corporation organized and existing under the laws of the State of New York, in good standing and having its principal office
in the Borough of Manhattan, City and State of New York, and authorized under such laws to exercise corporate trust powers and subject
to supervision or examination by federal or state authority. After appointment, any successor Rights Agent shall be vested with all the
authority, powers, rights, immunities, duties, and obligations of its predecessor Rights Agent with like effect as if originally named
as Rights Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor
Rights Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Rights Agent all
the authority, powers, and rights of such predecessor Rights Agent hereunder; and upon request of any successor Rights Agent the Company
shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming
to such successor Rights Agent all such authority, powers, rights, immunities, duties, and obligations.

 

	 	6.2.2.	Notice of Successor Rights Agent. In the event a successor
Rights Agent shall be appointed, the Company shall give notice thereof to the predecessor Rights Agent and the transfer agent for the
shares of Common Stock not later than the effective date of any such appointment.

 

	 	6.2.3.	Merger or Consolidation of Rights Agent. Any corporation
or other form of entity into which the Rights Agent may be merged or with which it may be consolidated or any corporation resulting from
any merger or consolidation to which the Rights Agent shall be a party shall be the successor Rights Agent under this Agreement without
any further act.

 

	 	6.3	Fees and Expenses of Rights Agent.

 

	 	6.3.1.	Remuneration. The Company agrees to pay the Rights Agent
reasonable remuneration for its services as such Rights Agent hereunder and will reimburse the Rights Agent upon demand for all expenditures
that the Rights Agent may reasonably incur in the execution of its duties hereunder.

 

	 	6.3.2.	Further Assurances. The Company agrees to perform, execute,
acknowledge, and deliver or cause to be performed, executed, acknowledged, and delivered all such further and other acts, instruments,
and assurances as may reasonably be required by the Rights Agent for the carrying out or performing of the provisions of this Agreement.

 

	 	6.4	Liability of Rights Agent.

 

	 	6.4.1.	Reliance on Company Statement. Whenever in the performance
of its duties under this Agreement, the Rights Agent shall deem it necessary or desirable that any fact or matter be proved or established
by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein
specifically prescribed) may be deemed to be conclusively proved and established by a statement signed by the Chief Executive Officer
or Chief Financial Officer and delivered to the Rights Agent. The Rights Agent may rely upon such statement for any action taken or suffered
in good faith by it pursuant to the provisions of this Agreement.

 

    	4

     

    

 

	 	6.4.2.	Indemnity. The Rights Agent shall be liable hereunder
only for its own gross negligence, willful misconduct or bad faith. Subject to Section 6.6 below, the Company agrees to indemnify the
Rights Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable counsel fees, for anything
done or omitted by the Rights Agent in the execution of this Agreement except as a result of the Rights Agent’s gross negligence,
willful misconduct, or bad faith.

 

	 	6.4.3.	Exclusions. The Rights Agent shall have no responsibility
with respect to the validity of this Agreement or with respect to the validity or execution of any Right (except its countersignature
thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any
Right; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any
shares of Common Stock to be issued pursuant to this Agreement or any Right or as to whether any shares of Common Stock will when issued
be valid and fully paid and nonassessable.

 

	 	6.5	Acceptance of Agency. The Rights Agent hereby accepts
the agency established by this Agreement and agrees to perform the same upon the terms and conditions herein set forth.

 

	 	6.6	Waiver. The Rights 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 Rights
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.

 

	7.	Miscellaneous Provisions.

 

	 	7.1	Successors. All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors
and assigns.

 

	 	7.2	Notices. Any notice, statement or demand authorized
by this Agreement to be given or made by the Rights Agent or by the holder of any Right to or on the Company shall be sufficiently given
when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five days after deposit
of such notice, postage prepaid, addressed (until another address is filed in writing by the Company with the Rights Agent), as follows:

 

Sagaliam
Acquisition Corp.

1800
Avenue of the Stars, Suite 1475

Los
Angeles, CA 90067

Attn:
Barry Kostiner, Chairman and Chief Executive Officer

 

Any
notice, statement or demand authorized by this Agreement to be given or made by the holder of any Right or by the Company to or on the
Rights Agent shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier
service within five days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Rights
Agent with the Company), as follows:

 

Continental
Stock Transfer & Trust Company

1
State Street, 30th Floor

New
York, New York 10004

Attn:
Account Administration 

 

with
a copy to:

 

 Mayer
Brown  LLP

 1221
 Avenue of the Americas

New
York, NY 10020 

Attn:
Thomas Kollar, Esq. and Brian Hirshberg, Esq.

 

    	5

     

    

 

and

 

 Loeb & Loeb LLP 

 345
Park  Avenue

New
York, NY 10154 

 

 Attn: Mitchell S. Nussbaum, Esq. and
David J. Levine, Esq. 

   

 and 

 EF Hutton 

 division of Benchmark Investments, LLC 

 590 Madison Avenue, 39th
Floor 

 New York, NY 10022 

Attn.:
Edward Tsuker, Head of Capital Markets 

 

	 	7.3	Applicable Law and
  Exclusive Forum.  The validity, interpretation, and performance of this Agreement
  and of the Rights shall be governed in all respects by the laws of the State of New York. Subject to applicable law, the Company
  hereby agrees that any action, proceeding or claim against it arising out of or relating in any way to this Agreement shall be brought
  and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York, and
  irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive forum for any such action, proceeding or claim. The
  Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Notwithstanding
  the foregoing, the provisions of this paragraph will not apply to suits brought to enforce any liability or duty created by the Exchange
  Act or any other claim for which the federal district courts of the United States of America are the sole and exclusive forum. Any
  person or entity purchasing or otherwise acquiring any interest in the Rights shall be deemed to have notice of and to have consented
  to the forum provisions in this Section 7.3. If any action is filed in a court other than a court located within the State of New
  York or the United States District Court for the Southern District of New York (a “foreign action”) in the name of any
  right holder, such right holder shall be deemed to have consented to: (x) the personal jurisdiction of the state and federal courts
  located within the State of New York or the United States District Court for the Southern District of New York in connection with any
  action brought in any such court to enforce the forum provisions (an “enforcement action”), and (y) having service of process
  made upon such right holder in any such enforcement action by service upon such right holder’s counsel in the foreign action
  as agent for such right holder.

 

	 	7.4	Persons Having Rights under this Agreement. Nothing
in this Agreement expressed and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to
confer upon, or give to, any person or corporation other than the parties hereto and the registered holders of the Rights and, for the
purposes of Sections 7.4 and 7.8 hereof, the Representative, any right, remedy, or claim under or by reason of this Agreement or of any
covenant, condition, stipulation, promise, or agreement hereof. The Representative shall be deemed to be a third-party beneficiary of
this Agreement with respect to Sections 7.4 and 7.8 hereof. All covenants, conditions, stipulations, promises, and agreements contained
in this Agreement shall be for the sole and exclusive benefit of the parties hereto (and the Representative with respect to the Sections
7.4 and 7.8 hereof) and their successors and assigns and of the registered holders of the Rights. The provisions of this Section 7.4
may not be modified, amended or deleted without the prior written consent of the Representative.

 

	 	7.5	Examination of the Right Agreement. A copy of this Agreement
shall be available at all reasonable times at the office of the Rights Agent in the Borough of Manhattan, City and State of New York,
for inspection by the registered holder of any Right. The Rights Agent may require any such holder to submit his, her or its Right for
inspection by it.

 

	 	7.6	Counterparts. This Agreement may be executed in any
number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute but one and the same instrument.

 

	 	7.7	Effect of Headings. The Section headings herein are
for convenience only and are not part of this Agreement and shall not affect the interpretation thereof.

 

	 	7.8	Amendments. This Agreement may be amended by the parties
hereto without the consent of any registered holder for the purpose of curing any ambiguity, or of curing, correcting or supplementing
any defective provision contained herein or adding or changing any other provisions with respect to matters or questions arising under
this Agreement as the parties may deem necessary or desirable and that the parties deem shall not adversely affect the interest of the
registered holders. All other modifications or amendments shall require the written consent or vote of the registered holders of a majority
of the then outstanding Rights. The provisions of this Section 7.8 may not be modified, amended or deleted without the prior written
consent of the Representative.

 

	 	7.9	Severability. This Agreement shall be deemed severable,
and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement
or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto
intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision
as may be possible and be valid and enforceable.

 

[Signature
Page Follows]

 

    	6

     

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and year first above written.

 

	 	 	SAGALIAM
    ACQUISITION CORP.:
	 	 	 
	 	 	By:	 
	 	 	Name:
    	Barry
    Kostiner
	 	 	Title:	Chairman
and Chief Executive Officer

 

	 	 	CONTINENTAL
    STOCK TRANSFER & TRUST COMPANY:
	 	 	 	 
	 	 	By:	 
	 	 	Name:
    	 
	 	 	Title:	Vice
    President

 

[Signature
Page to Right Agreement]

 

    	7Exhibit
10.1

 

[   ], 2021

Sagaliam
Acquisition Corp.

1800
Avenue of the Stars, Suite 1475

Los
Angeles, CA 90067

 

Re:
Initial Public Offering

 

Ladies
and Gentlemen:

 

This
letter (this “Letter Agreement”) is being delivered to you in accordance with the Underwriting Agreement (the
“Underwriting AgreementI”) entered into by and among Sagaliam Acquisition Corp., a Delaware corporation
(the “Company”), and EF Hutton, division of Benchmark Investments, LLC, as representative (the “Representative”)
of the several underwriters (each, an “Underwriter” and collectively, the “Underwriters”),
relating to an underwritten initial public offering (the “Public Offering”), of 11,500,000 of the Company’s
units (including up to 1,500,000 units that may be purchased to cover over-allotments, if any) (the “Units”),
each comprised of one share of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”),
and one right (the “Right”). Each Right entitles the holder thereof to receive one-eighth (1/8) of one
share of Common Stock upon consummation of the initial business combination, subject to adjustment. The Units will be sold in the Public
Offering pursuant to a registration statement and prospectus (the “Prospectus”) filed by the Company with the
U.S. Securities and Exchange Commission (the “Commission”) and the Company has applied to have the Units listed
on The Nasdaq Capital Market. Certain capitalized terms used herein are defined in paragraph 11 hereof.

 

In
order to induce the Company and the Underwriters to enter into the Underwriting Agreement and to proceed with the Public Offering and
for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of Sagaliam Sponsor LLC
(the “Sponsor”) and the undersigned individuals, each of whom is a member of the Company’s board of directors
and/or management team or an advisor of the Company (each, an “Insider” and collectively, the “Insiders”),
hereby agrees with the Company as follows:

 

	1.	The Sponsor and each Insider agrees that if the Company seeks
stockholder approval of a proposed Business Combination, then in connection with such proposed Business Combination, it, he or she shall
(i) vote any shares of Capital Stock owned by it, him or her in favor of any proposed Business Combination and (ii) not redeem any shares
of Common Stock owned by it, him or her in connection with such stockholder approval. If the Company engages in a tender offer in connection
with any proposed Business Combination, the Sponsor and each Insider agrees that it, he or she will not seek to sell its, his or her
shares of Capital Stock to the Company in connection with such tender offer.

 

	2.	The Sponsor and each Insider hereby agrees that in the event
that the Company fails to consummate a Business Combination within the timeframe set forth in the Company’s amended and restated
certificate of incorporation, as it may be amended from time to time (the “Charter”), the Sponsor and each
Insider shall take all reasonable steps to cause the Company to (i) cease all operations except for the purpose of winding up, (ii) as
promptly as reasonably possible but not more than 10 business days thereafter, subject to lawfully available funds therefor, redeem 100%
of the Common Stock sold as part of the Units in the Public Offering (the “Offering Shares”), at a per-share
price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account (as defined below), including interest earned
on the funds held in the Trust Account and not previously released to the Company to pay its taxes (less up to $150,000 of interest to
pay dissolution expenses), divided by the number of then outstanding Offering Shares, which redemption will completely extinguish all
Public Stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), subject
to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s
remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in the case of clauses (ii) and (iii)
to the Company’s obligations under Delaware law to provide for claims of creditors and other requirements of applicable law. The
Sponsor and each Insider agrees not to propose any amendment to the Charter to modify (i) the substance or timing of the ability of holders
of Offering Shares to seek redemption in connection with a Business Combination or amendments to the Charter prior thereto or (ii) (A)
the Company’s obligation to redeem 100% of the Offering Shares if the Company does not complete a Business Combination within such
time set forth in the Charter or (B) any other provisions relating to stockholders’ rights or pre-initial Business Combination
activity, unless the Company provides its public stockholders with the opportunity to redeem their shares of Common Stock upon approval
of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including
interest earned on the funds held in the Trust Account and not previously released to the Company to pay its taxes, divided by the number
of then outstanding Offering Shares.

 

    	1

     

    

 

		The Sponsor and each
  Insider acknowledges that it, he or she has no right, title, interest or claim of any kind in or to any monies held in the Trust
  Account or any other asset of the Company as a result of any liquidation of the Company with respect to the Founder Shares held by
  it, him or her. The Sponsor and each Insider hereby further waives, with respect to any shares of Common Stock held by it, him or
  her, if any, whether acquired now or hereafter, any redemption rights it, he or she may have in connection with the consummation of
  a Business Combination or amendments to the Charter prior thereto, including, without limitation, any such rights available in the
  context of a stockholder vote to approve such Business Combination or a stockholder vote to approve an amendment to the Charter to
  modify (i) (A) the substance or timing of the Company’s obligation to redeem 100% of the Offering Shares if the Company has
  not consummated a Business Combination within the time period set forth in the Charter or (B) any other provisions relating to
  stockholders’ rights or pre-initial Business Combination activity or (ii) in the context of a tender offer made by the Company
  to purchase shares of Common Stock (although the Sponsor, the Insiders and their respective affiliates shall be entitled to
  redemption and liquidation rights with respect to any Offering Shares it or they hold if the Company fails to consummate a Business
  Combination within the time period set forth in the Charter).

 

	3.	During the period commencing on the date of the Underwriting
Agreement and ending 180 days after such date, the Sponsor and each Insider shall not, without the prior written consent of the Representative,
(i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree
to dispose of, directly or indirectly, or establish or increase a put equivalent position or liquidate or decrease a call equivalent
position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and the rules and regulations of the Commission promulgated thereunder, with respect to any Units, shares of Capital Stock, Rights or
any securities convertible into, or exercisable, or exchangeable for, shares of Capital Stock owned by it, him or her, (ii) enter into
any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any Units,
shares of Capital Stock, Rights or any securities convertible into, or exercisable, or exchangeable for, shares of Capital Stock owned
by it, him or her, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (iii) publicly
announce any intention to effect any transaction specified in clause (i) or (ii). Each of the Insiders and the Sponsor acknowledges and
agrees that, prior to the effective date of any release or waiver, of the restrictions set forth in this paragraph 3 or paragraph 7 below,
the Company shall announce the impending release or waiver by press release through a major news service at least two business days before
the effective date of the release or waiver. Any release or waiver granted shall only be effective two business days after the publication
date of such press release. The provisions of this paragraph will not apply if the release or waiver is effected solely to permit a transfer
not for consideration and the transferee has agreed in writing to be bound by the same terms described in this Letter Agreement to the
extent and for the duration that such terms remain in effect at the time of the transfer.

 

	4.	In the event of the liquidation of the Trust Account upon the
failure of the Company to consummate its initial Business Combination within the time period set forth in the Charter, the Sponsor (which
for purposes of clarification shall not extend to any other shareholders, members or managers of the Sponsor ) (the “Indemnitor”),
agrees to indemnify and hold harmless the Company against any and all loss, liability, claim, 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) to which the Company may become subject as a result of any claim by (i) any third party for services rendered
(other than the Company’s independent public accountants) or products sold to the Company or (ii) any prospective target business
with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or Business Combination
agreement (a “Target”); provided, however, that such indemnification of the Company by the Indemnitor shall
(x) apply only to the extent necessary to ensure that such claims by a third party or a Target do not reduce the amount of funds in the
Trust Account to below the lesser of (i) $10.00 per Offering Share and (ii) the actual amount per Offering Share held in the Trust Account
as of the date of the liquidation of the Trust Account, if less than $10.00 per Offering Share is then held in the Trust Account due
to reductions in the value of the trust assets, less interest earned on the Trust Account which may be withdrawn to pay taxes, (y) not
apply to any claims by a third party or a Target which executed a waiver of any and all rights to the monies held in the Trust Account
(whether or not such waiver is enforceable) and (z) not apply to any claims under the Company’s indemnity of the Underwriters against
certain liabilities, including liabilities under the Securities Act of 1933, as amended. The Indemnitor shall have the right to defend
against any such claim with counsel of its choice reasonably satisfactory to the Company if, within 15 days following written receipt
of notice of the claim to the Indemnitor, the Indemnitor notifies the Company in writing that it shall undertake such defense.

 

    	2

     

    

 

	5.	To the extent that the Underwriters do not exercise their over-allotment
option to purchase up to an additional 1,500,000 Units in full within 45 days from the date of the Prospectus (and as further described
in the Prospectus), the Sponsor agrees to forfeit, at no cost, a number of Founder Shares in the aggregate equal to 375,000 multiplied
by a fraction, (i) the numerator of which is 1,500,000 minus the number of Units purchased by the Underwriters upon the exercise of their
over-allotment option, and (ii) the denominator of which is 1,500,000. The Sponsor will be required to forfeit only that number
of Founder Shares as is necessary so that the Initial Stockholders will own an aggregate of 20.0% of the Company’s issued and outstanding
shares of Capital Stock after the Public Offering.

 

	6.	The Sponsor and each Insider hereby agrees and acknowledges
that: (i) the Underwriters and the Company would be irreparably injured in the event of a breach by such Sponsor or an Insider of its,
his or her obligations under paragraphs 1, 2, 3, 4, 5, 7(a), 7(b), and 9, as applicable, of this Letter Agreement (ii) monetary damages
may not be an adequate remedy for such breach and (iii) the non-breaching party shall be entitled to injunctive relief, in addition to
any other remedy that such party may have in law or in equity, in the event of such breach.

 

	7.	(a)	 The Sponsor and each Insider agrees that it, he or she
shall not Transfer any Founder Shares (or shares of Common Stock issuable upon conversion thereof) until the earlier of (A) one year
after the completion of the Company’s initial Business Combination or (B) subsequent to the Business Combination, (x) if the last
sale price of the Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations
and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Company’s initial
Business Combination or (y) the date on which the Company completes a liquidation, merger, capital stock exchange, reorganization or
other similar transaction that results in all of the Company’s stockholders having the right to exchange their shares of Common
Stock for cash, securities or other property (the “Founder Shares Lock-up Period”).

 

	 	(b)	The Sponsor and each Insider agrees that it, he or she shall
not Transfer any Private Placement Units (including the underlying Rights), until 30 days after the completion of a Business Combination
(the “Private Placement Lock-up Period”, together with the Founder Shares Lock-up Period, the “Lock-up
Periods”).

 

	 	(c)	Notwithstanding the provisions set forth in paragraphs 7(a)
and (b), Transfers of the Founder Shares and Private Placement Units (including the Private Shares and Private Rights), are permitted
(a) to the Company’s officers or directors, any affiliate or family member of any of the Company’s officers or directors
or any affiliate of the Sponsor or to any member(s) of the Sponsor; (b) in the case of an individual, by gift to a member of such individual’s
immediate family or to a trust, the beneficiary of which is a member of such individual’s immediate family, an affiliate of such
individual or to a charitable organization; (c) in the case of an individual, by virtue of laws of descent and distribution upon death
of such individual; (d) in the case of an individual, pursuant to a qualified domestic relations order; (e) by private sales or transfers
made in connection with the consummation of an initial Business Combination at prices no greater than the price at which the securities
were originally purchased; (f) in the event of the Company’s liquidation prior to the completion of an initial Business Combination;
(g) by virtue of the laws of the State of Delaware or the Sponsor’s limited liability company agreement upon dissolution of the
Sponsor, or (h) in the event of the Company’s liquidation, merger, capital stock exchange, reorganization or other similar transaction
which results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities
or other property subsequent to the completion of the Company’s initial Business Combination; provided, however,
that in the case of clauses (a) through (e) or (g), these permitted transferees must enter into a written agreement with the Company
agreeing to be bound by the transfer restrictions herein.

 

	8.	The Sponsor and each Insider represents and warrants that it,
he or she has never been suspended or expelled from membership in any securities or commodities exchange or association or had a securities
or commodities license or registration denied, suspended or revoked. Each Insider’s biographical information furnished to the Company
(including any such information included in the Prospectus) is true and accurate in all respects and does not omit any material information
with respect to the Insider’s background. Each Insider’s questionnaire furnished to the Company is true and accurate in all
respects. Each Insider represents and warrants that: it, he or she is not subject to or a respondent in any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from any act or practice relating to the offering of securities in
any jurisdiction; it, he or she has never been convicted of, or pleaded guilty to, any crime (i) involving fraud, (ii) relating to any
financial transaction or handling of funds of another person, or (iii) pertaining to any dealings in any securities and it, he or she
is not currently a defendant in any such criminal proceeding.

 

    	3

     

    

 

	9.	Except as disclosed in the Prospectus, neither the Sponsor
nor any officer, director, advisor or affiliate of the Sponsor, nor any officer, director or advisor of the Company, shall receive from
the Company any finder’s fee, reimbursement, consulting fee, monies in respect of any repayment of a loan or other compensation
prior to, or in connection with any services rendered in order to effectuate, the consummation of the Company’s initial Business
Combination (regardless of the type of transaction that it is).

 

	10.	The Sponsor and each Insider has full right and power, without
violating any agreement to which it is bound (including, without limitation, any non-competition or non-solicitation agreement with any
employer or former employer), to enter into this Letter Agreement and, as applicable, to serve as an officer and/or director on the board
of directors or an advisor of the Company and hereby consents to being named in the Prospectus as an officer and/or director of the Company
or an advisor of the Company.

 

	11.	As used herein, (i) “Business Combination”
shall mean a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination, involving
the Company and one or more businesses; (ii) “Capital Stock” shall mean, collectively, the Common Stock and
the Founder Shares; (iii) “Founder Shares” shall mean (a) the 2,875,000 shares of the Company’s Class
B common stock, par value $0.0001 per share, initially issued to the Sponsor (up to 375,000 Shares of which are subject to complete or
partial forfeiture by the Sponsor if the over-allotment option is not exercised by the Underwriters) for an aggregate purchase price
of $25,000, or $0.009 per share, prior to the consummation of the Public Offering; (iv) “Initial Stockholders”
shall mean the Sponsor and any Insider that holds Founder Shares; (v) “Private Placement Units” shall mean
370,000 units (or 400,000 units if the over-allotment option is exercised in full) that the Sponsor has agreed to purchase
for an aggregate purchase price of $3,000,000 (or $4,000,000 if the over-allotment option is exercised in full) in the
aggregate, or $10.00 per Unit, in a private placement that shall occur simultaneously with the consummation of the Public Offering; (vi)
“Private Rights” shall mean the rights underlying the Private Units, (vi) “Private Common Stock”
shall mean the Ordinary Shares underlying the Private Units, (vii) “Public Stockholders” shall mean the holders
of securities issued in the Public Offering; (viii) “Trust Account” shall mean the trust fund into which a
portion of the net proceeds of the Public Offering shall be deposited; and (ix) “Transfer” shall mean the (a)
sale of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to purchase or otherwise dispose of or
agreement to dispose of, directly or indirectly, or establishment or increase of a put equivalent position or liquidation with respect
to or decrease of a call equivalent position within the meaning of Section 16 of the Exchange Act, and the rules and regulations of the
Commission promulgated thereunder with respect to, any security, (b) entry into any swap or other arrangement that transfers to another,
in whole or in part, any of the economic consequences of ownership of any security, whether any such transaction is to be settled by
delivery of such securities, in cash or otherwise, or (c) public announcement of any intention to effect any transaction specified in
clause (a) or (b).

 

	12.	The Company will maintain an insurance policy or policies providing
directors’ and officers’ liability insurance, and each director of the Company shall be covered by such policy or policies,
in accordance with its or their terms, to the maximum extent of the coverage available for any of the Company’s directors or officers.

 

	13.	This Letter Agreement constitutes the entire agreement and
understanding of the parties hereto in respect of the subject matter hereof and supersedes all prior understandings, agreements, or representations
by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions
contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived (other than to correct a typographical error)
as to any particular provision, except by a written instrument executed by all parties hereto.

 

	14.	No party hereto may assign either this Letter Agreement or
any of its rights, interests, or obligations hereunder without the prior written consent of the other parties. Any purported assignment
in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the
purported assignee. This Letter Agreement shall be binding on the Sponsor and each Insider and their respective successors, heirs and
assigns and permitted transferees.

 

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

 

    	4

     

    

 

	16.	This Letter Agreement may be executed in any number of original
or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts
shall together constitute but one and the same instrument.

 

	17.	This Letter Agreement shall be deemed severable, and the invalidity
or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Letter Agreement or of any
other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend
that there shall be added as a part of this Letter Agreement a provision as similar in terms to such invalid or unenforceable provision
as may be possible and be valid and enforceable.

 

	18.	This Letter Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of New York, without giving effect to conflicts of law principles that would result
in the application of the substantive laws of another jurisdiction. The parties hereto (i) all agree that any action, proceeding, claim
or dispute arising out of, or relating in any way to, this Letter Agreement shall be brought and enforced in the courts of New York City,
in the State of New York, and irrevocably submit to such jurisdiction and venue, which jurisdiction and venue shall be exclusive and
(ii) waive any objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient forum.

 

	19.	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.

 

	20.	This Letter Agreement shall terminate on the earlier of (i)
the expiration of the Lock-up Periods or (ii) the liquidation of the Company; provided, however, that this Letter Agreement shall earlier
terminate in the event that the Public Offering is not consummated and closed by December 31, 2021; provided further that paragraph 4
of this Letter Agreement shall survive such liquidation.

 

    	5

     

    

 

	 	Sincerely,
    
	 	 	 
	 	SAGALIAM
    SPONSOR LLC
	 	 	 
	 	By:	 
	 	Name:	Barry
    Kostiner
	 	Title:	Managing
    Member

 

	 	 	 
	 	Name:	Barry
    Kostiner

 

	 	 	 
	 	Name:	Thomas
    Neukranz

 

	 	 	 
	 	Name:	Jane
    Liu

 

	 	 	 
	 	Name:	George
    Caruolo

 

	 	 	 
	 	Name:	Gabriel
    Del Virginia

 

	 	 	 
	 	Name:	Glauco
    Lolli-Ghetti

 

	Acknowledged
    and Agreed:	 
	 	 
	SAGALIAM
    ACQUISITION CORP.	 
	 	 	 
	By:	 	 
	Name:	Barry
    Kostiner	 
	Title:	Chief
    Executive Officer	 

 

[Signature
Page to Letter Agreement]

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