Document:

Exhibit 10.1

     

    

    June 19, 2019

    

    

    South Mountain Merger Corp.

    767 Fifth Avenue, 9th Floor

    New York, NY 10153

    

    

    Citigroup Global Markets Inc.

    388 Greenwich Street

    New York, New York 10013

    

    

    Re:          Initial Public Offering

    

    

    Ladies and Gentlemen:

    

    

    This letter (this “Letter Agreement”) is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”)

      to be entered into by and among South Mountain Merger Corp., a Delaware corporation (the “Company”) and Citigroup Global Markets Inc. (the “Underwriter”), relating to an underwritten initial public offering (the “Public Offering”),

      of 25,875,000 of the Company’s units (including up to 3,375,000 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 half of one redeemable warrant.  Each whole Warrant (each, a “Warrant”) entitles the holder thereof to purchase one share of Common Stock at a price of $11.50 per share, subject to adjustment.  The Units will be sold in
      the Public Offering pursuant to a registration statement on Form S-1 and prospectus (the “Prospectus”) filed by the Company with the U.S. Securities and Exchange Commission (the “Commission”) and the Company has applied to have the
      Units listed on the Nasdaq.  Certain capitalized terms used herein are defined in paragraph 11 hereof.

    

    

    In order to induce the Company and the Underwriter 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, South Mountain LLC (the “Sponsor”) and each of the undersigned individuals, each of whom is a member of the Company’s board of directors and/or
      management team (each, an “Insider” and collectively, the “Insiders”, which term, for the avoidance of doubt, shall not include the Sponsor or any members or managers of the Sponsor other than those members or managers who are also
      members of the Company’s board of directors and/or management team)), hereby severally (and not jointly and severally) 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.

    

    

    2.                   The Sponsor and each Insider hereby agrees that in the event that the Company fails to consummate a Business
      Combination within 24 months from the closing of the Public Offering, or such later period approved by the Company’s stockholders in accordance with the Company’s amended and restated certificate of incorporation (the “Charter”), 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,
      including interest (net of Permitted Withdrawals (as defined in the Prospectus) and net of up to $100,000 of interest to pay dissolution expenses)), divided by the number of then outstanding Offering Shares, which redemption will completely
      extinguish all Public Stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the
      approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and other requirements of
      applicable law.  The Sponsor and each Insider agree to not propose any amendment to the Charter that would modify the substance or timing of the Company’s obligation to provide for the redemption of its public shares in connection with a Business
      Combination or to redeem 100% of the Offering Shares if the Company does not complete a Business Combination within 24 months from the closing of the Public Offering, unless the Company provides its Public Stockholders with the opportunity to redeem
      their Offering Shares 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 (net of Permitted Withdrawals), divided by the number of then
      outstanding Offering Shares.

    
      
        

    

    
    

    

    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 waive, with respect to any shares of
      Common Stock held by it, him or her, if any, any redemption rights it, he or she may have in connection with the consummation of a Business Combination, including, without limitation, any such rights available in the context of a stockholder vote to
      approve (a) Business Combination, (b) an amendment to the Charter that would affect the substance or timing of the Company’s obligation to provide for the redemption of our public shares in connection with a Business Combination or to redeem 100% of
      the Class A Ordinary Shares if the Company has not consummated a Business Combination within 24 months from the closing of the IPO, (c) 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 24 months from the date of the
      closing of the Public Offering or in connection with a stockholder vote to approve an amendment to the Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the Offering Shares if the Company does not complete a
      Business Combination within 24 months from the closing of the Public Offering).

    
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    3.                   During the period commencing on the effective 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 Underwriter, (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, Warrants or any securities convertible into, or exercisable, or exchangeable for, shares of Common 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, Warrants or any securities convertible into, or exercisable, or exchangeable
      for, shares of Common 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 with respect to Insiders other than the Sponsor, 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 such 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 (i) the release or waiver is effected solely to permit a transfer of securities without consideration and (ii) 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, the Sponsor (which for purposes of clarification shall not
      extend to any other shareholders, members or managers of the Sponsor or any other Insider) 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, or any claim whatsoever) to which the Company may become subject as a result of any claim by (i) any
      third party (other than the Company’s independent accountants) for services rendered or products sold to the Company or (ii) any prospective target business with which the Company has entered into a letter of intent, confidentiality or other similar
      agreement for a Business Combination (a “Target”); provided, however, that such indemnification of the Company by the Sponsor (x) shall apply only to the extent necessary to ensure that such claims by a third party (other than
      the Company’s independent public accountants) 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 or (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) shall not apply to any claims by a third party (including a Target) that 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) shall not apply to any claims under the
      Company’s indemnity of the Underwriter against certain liabilities, including liabilities under the Securities Act of 1933, as amended.  In the event that any such executed waiver is deemed to be unenforceable against such third party, the Sponsor
      shall not be responsible to the extent of any liability for such third party claims.  The Sponsor 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 Sponsor, the Sponsor notifies the Company in writing that it shall undertake such defense.  For the avoidance of doubt, none of the Company’s officers or directors will indemnify the Company for claims by
      third parties, including, without limitation, claims by vendors and prospective target businesses.

    
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    5.                   To the extent that the Underwriter does not exercise its over-allotment option to purchase up to an additional
      3,375,000 Units 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 the product of 843,750 multiplied by a
      fraction, (i) the numerator of which is 3,375,000 minus the number of Units purchased by the Underwriter upon the exercise of its over-allotment option, and (ii) the denominator of which is 3,375,000.  The forfeiture will be adjusted to the extent
      that the over-allotment option is not exercised in full by the Underwriter 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.  To the extent that
      the size of the Public Offering is increased or decreased, the Company will effect a capitalization or share repurchase, redemption or stock split or other appropriate mechanism, as applicable, immediately prior to the consummation of the Public
      Offering in such amount as to maintain the ownership of the Capital Stock of the Initial Stockholders prior to the Public Offering at 20.0% of the Company’s issued and outstanding Capital Stock upon the consummation of the Public Offering.  In
      connection with such increase or decrease in the size of the Public Offering, (A) references to 3,375,000 in the numerator and denominator of the formula in the first sentence of this paragraph shall be changed to a number equal to 15% of the number
      of shares included in the Units issued in the Public Offering and (B) the reference to 843,750 in the formula set forth in the immediately preceding sentence shall be adjusted to such number of Founder Shares that the Sponsor would have to return to
      the Company in order to hold (with all of the Initial Stockholders) an aggregate of 20.0% of the Company’s issued and outstanding Capital Stock after the Public Offering.

    

    

    6.                   (a)          The Company’s
        officers and directors each hereby agree not to participate in the formation of, or become an officer or director of, any other special purpose acquisition company with a class of securities registered under the Exchange Act until the Company has
        entered into a definitive agreement regarding a Business Combination or the Company has failed to complete a Business Combination within the time period set forth in the Charter.

    

    

    (b)               The Sponsor and each Insider hereby agrees and acknowledges that: (i) the Underwriter 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, 6(a), 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.

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

    

    

    (b)               The Sponsor and each Insider agree that it, he or she shall not Transfer any Private Placement Warrants (or shares
      of Common Stock issued or issuable upon the exercise of the Private Placement Warrants) until 30 days after the completion of a Business Combination (the “Private Placement Warrants Lock-up Period”, together with the Founder Shares Lock-up
      Period, the “Lock-up Periods”).

    

    

    (c)                Notwithstanding the provisions set forth in paragraphs 3 and 7(a) and (b), Transfers of the Founder Shares, Private
      Placement Warrants and shares of Common Stock issued or issuable upon the exercise or conversion of the Private Placement Warrants or the Founder Shares and that are held by the Sponsor, any Insider or any of their permitted transferees (that have
      complied with this paragraph 7(c)), are permitted (a) to the Company’s officers or directors, any affiliates or family members of any of the Company’s officers or directors, any members of the Sponsor, any affiliates of the Sponsor, or any employees
      of such affiliates; (b) in the case of an individual, transfers by gift to a member of the individual’s immediate family, to a trust, the beneficiary of which is a member of the individual’s immediate family or an affiliate of such person, or to a
      charitable organization; (c) in the case of an individual, transfers by virtue of laws of descent and distribution upon death of the individual; (d) in the case of an individual, transfers pursuant to a qualified domestic relations order; (e)
      transfers by private sales or transfers made at prices no greater than the price at which the securities were originally purchased; (f) transfers in the event of the Company’s liquidation prior to the completion of an initial Business Combination;
      (g) transfers by virtue of the laws of the State of Delaware or the Sponsor’s limited liability company agreement upon dissolution of the Sponsor; (h) to a nominee or custodian of a person or entity to whom a disposition or transfer would be
      permissible under clauses (a) through (g) above; provided, however, that in the case of clauses (a) through (e) and (h), 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 represent and warrant 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.  The Sponsor and each Insider’s questionnaire furnished to the Company is true and
      accurate in all respects.  The Sponsor and 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.

    
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    9.                   Except as disclosed in the Prospectus, neither any Sponsor nor any Insider nor any affiliate of the Sponsor or
      any Insider, nor any director or officer of the Company, shall receive from the Company any finder’s fee, reimbursement, consulting fee, monies in respect of any repayment of a loan or other compensation prior to, or in connection with any services
      rendered in order to effectuate the consummation of the Company’s initial Business Combination (regardless of the type of transaction that it is), other than the following, none of which will be made from the proceeds held in the Trust Account prior
      to the completion of the initial Business Combination: repayment of a loan and advances of up to $300,000 made to the Company by the Sponsor to cover expenses related to the organization of the Company and the Public Offering; payment to an affiliate
      of the Sponsor for office space and/or support services for a total of $25,000 per month; reimbursement for any reasonable out-of-pocket expenses related to identifying, investigating and consummating an initial Business Combination, and repayment of
      loans, if any, and on such terms as to be determined by the Company from time to time, made by the Sponsor or certain of the Insiders to finance transaction costs in connection with an intended initial Business Combination, provided, that, if the
      Company does not consummate an initial Business Combination, a portion of the working capital held outside the Trust Account may be used by the Company to repay such loaned amounts so long as no proceeds from the Trust Account are used for such
      repayment. Up to $1,500,000 of such loans may be convertible into warrants of the post Business Combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants.

    

    

    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 a director on the board of directors of the Company and hereby consents to being named in the Prospectus as an officer and/or a director of the Company. In the event of the removal or resignation of the Insider as a
        director or officer (as applicable), the Insider agrees that he or she will not, prior to the consummation of the Business Combination, without the prior express written consent of the Company, (i) use for the benefit of the Insider or to the
        detriment of the Company or (ii) disclose to any third party (unless required by law or governmental authority), any information regarding a potential target of the Company that is not generally known by persons outside of the Company, the Sponsor,
        or their respective affiliates.

    
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    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 the 6,468,750 shares of the Company’s Class B common stock, par value $0.0001 per share, (or 5,625,000 shares if the over-allotment option is not
        exercised by the Underwriter) initially held by the Sponsor; (iv) “Initial Stockholders” shall mean the Sponsor and any other holder of Founder Shares immediately prior to the Public Offering; (v) “Private Placement Warrants” shall
        mean the warrants to purchase up to 6,454,500 shares of Common Stock of the Company (or 7,129,500 shares of Common Stock if the over-allotment option is exercised in full) that the Sponsor has agreed to purchase for an aggregate purchase price of
        $6,454,500 in the aggregate (or $7,129,500 if the over-allotment option is exercised in full), or $1.00 per warrant, in a private placement that shall occur simultaneously with the consummation of the Public Offering; (vi) “Public Stockholders”
        shall mean the holders of securities issued in the Public Offering; (vii) “Trust Account” shall mean the trust fund into which a portion of the net proceeds of the Public Offering and the sale of the Private Placement Warrants shall be
        deposited; and (viii) “Transfer” shall mean the (a) sale or assignment 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.          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.

    

    

    13.          Except as otherwise provided herein, 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.

    
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    14.          Nothing in this Letter Agreement shall
        be construed to confer upon, or give to, any person or entity 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.

    

    

    15.          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.

    

    

    16.          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.

    

    

    17.          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.

    

    

    18.          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.

    

    

    19.          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, 2019; provided further that paragraph 4 of this Letter Agreement shall survive such liquidation for a period of six years.

    

    

    [Signature Page Follows]

    
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            Sincerely,

          
	 	 	 
	 	
            SOUTH MOUNTAIN MERGER CORP.

          
	 	 	 
	 	
            By:

          	/s/ Charles B. Bernicker
	 	
            Name:

          	
            Charles B. Bernicker

          
	 	
            Title:

          	
            Chief Executive Officer

          

    
      
        

    

    

    

    Acknowledged and Agreed:

    

    

    AGREED TO AND ACCEPTED BY:

    

    

    SOUTH MOUNTAIN LLC

    

    

    By: Harbour Reach Holdings LLC, its managing member

    

    

    By: Netherton Investments Limited, its managing member

    

    

    	 	
            By: /s/ Robert Heaselgrave

          	 
	 	
            Name: Robert Heaselgrave

          	 
	 	
            Title:   Director

          	 

    

    

    DIRECTORS AND MANAGEMENT TEAM OF SOUTH MOUNTAIN MERGER CORP.

    

    

    	/s/ Charles B. Bernicker	 
	
            Charles B. Bernicker

          	 
	
            Chief Executive Officer

          	 
	 	 
	/s/ Nicholas Dermatas	 
	
            Nicholas Dermatas

          	 
	
            Chief Financial Officer and Secretary

          	 
	 	 
	/s/ Robert L. Metzger	 
	
            Robert L. Metzger

          	 
	
            Director

          	 
	 	 
	/s/ Douglas J. Pauls	 
	
            Douglas J. Pauls

          	 
	
            Director

          	 

    

    

    

    

    [Signature Page to Letter Agreement]Exhibit 10.2

  

  

  EXECUTION VERSION

  

  

  INVESTMENT MANAGEMENT TRUST AGREEMENT

  

  

  This Investment Management Trust Agreement (this “Agreement”) is made effective as of June 19, 2019 by and between South Mountain Merger Corp., a Delaware corporation (the “Company”), and
    Continental Stock Transfer & Trust Company, a New York corporation (the “Trustee”).

  

  

  WHEREAS, the Company’s registration statement on Form S-1, File No. 333- 231881 (the “Registration Statement”) and prospectus (the “Prospectus”) for the initial public offering of the
    Company’s units (the “Units”), each of which consists of one share of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”), and one half of one redeemable warrant, each whole warrant entitling the holder
    thereof to purchase one share of Common Stock (such initial public offering hereinafter referred to as the “Offering”), has been declared effective as of the date hereof by the U.S.Securities and Exchange Commission; and

  

  

  WHEREAS, the Company has entered into an Underwriting Agreement (the “Underwriting Agreement”) with Citigroup Global Markets Inc. (the “Representative”); and

  

  

  WHEREAS, as described in the Prospectus, $225,000,000 of the gross proceeds of the Offering and sale of the Private Placement Warrants (as defined in the Underwriting Agreement) (or $258,750,000 if the
    Representative’s 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 Common Stock included in the Units issued in the Offering as hereinafter provided (the amount to be delivered to the Trustee (and any interest subsequently earned thereon) is referred to herein as the “Property,” the stockholders for whose benefit the Trustee shall hold the Property will be referred to as the “Public Stockholders,” and the Public Stockholders 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 $7,095,375 or $8,276,625 if the Representative’s over-allotment option is exercised in full, is attributable to
    deferred underwriting discounts and commissions that will be payable by the Company to the Representative upon and concurrently with the consummation of the Business Combination (as defined below) (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.

  

  

  NOW THEREFORE, IT IS AGREED:

  
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  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 the Trust Account established by the Trustee in the United States at Citibank, N.A. 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 written instruction of the Company, invest and reinvest the Property in United States government securities within the meaning of Section 2(a)(16) of the
    Investment Company Act of 1940, as amended, having a maturity of 185 days or less, or in money market funds meeting the conditions of paragraphs (d)(1), (d)(2), (d)(3) and (d)(4) of Rule 2a-7 promulgated under the Investment Company Act of 1940, as
    amended (or any successor rule), which invest only in direct U.S. government treasury obligations, as determined by the Company; the Trustee may not invest in any other securities or assets, it being understood that the Trust Account will earn no
    interest while account funds are uninvested awaiting the Company’s instructions hereunder and the Trustee may earn bank credit or other consideration;

  

  

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

  

  

  (e)          As soon as practicable notify the Company and the Representative of all communications received by the Trustee with respect to any Property requiring action by the
    Company;

  

  

  (f)          Supply any necessary information or documents as may be requested by the Company (or its authorized agents) in connection with the Company’s preparation of the tax returns relating to
    assets held in the Trust Account;

  

  

  (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;

  

  

  (i)          Commence liquidation of the Trust Account only after and promptly after (x) receipt of, and only in accordance with, the terms of a letter from the Company (“Termination Letter”) in
    a form substantially similar to that attached hereto as either Exhibit A or Exhibit B, as applicable, signed on behalf of the Company by its Chief Executive Officer, President, Chief Financial Officer, Secretary or Chairman of the
    board of directors of the Company (the “Board”) or other authorized officer of the Company, and complete the liquidation of the Trust Account and distribute the Property in the Trust Account, including interest earned on funds held in the Trust
    Account (net of amounts withdrawn in accordance with this Agreement and less up to $100,000 of interest that may be released to the Company to pay dissolution expenses), only as directed in the Termination Letter and the other documents referred to
    therein, or (y) upon the date which is the later of (i) 24 months after the closing of the Offering and (ii) such later date as may be approved by the Company’s stockholders in accordance with the Company’s amended and restated Certificate of
    Incorporation, if a Termination Letter has not been received by the Trustee prior to such date, in which case the Trust Account shall be liquidated in accordance with the procedures set forth in the Termination Letter attached as Exhibit B and
    the Property in the Trust Account, including interest earned on funds held in the Trust Account (net of amounts withdrawn in accordance with this Agreement and less up to $100,000 of interest that may be released to the Company to pay dissolution
    expenses) shall be distributed to the Public Stockholders of record as of such date; provided, however, that in the event the Trustee receives a Termination Letter in a form substantially similar to Exhibit B hereto, or if the
    Trustee begins to liquidate the Property because it has received no such Termination Letter by the date specified in clause (y) of this Section 1(i), the Trustee shall keep the Trust Account open until twelve (12) months following the date the Property
    has been distributed to the Public Stockholders;

  
    2

    
      

  

  

  

  

  

  (j)          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 (a “Tax Payment Withdrawal
      Instruction”), withdraw from the Trust Account and distribute to the Company the amount of interest earned on the Property requested by the Company to cover any tax obligation owed by the Company as a result of assets of the Company or interest
    or other income earned on the Property, which such payment the Company shall forward to the relevant taxing authority; provided, however, that to the extent there is not sufficient cash in the Trust Account to pay such tax obligation,
    the Trustee shall liquidate such assets held in the Trust Account as shall be designated by the Company in writing to make such distribution, so long as there is no reduction in the principal amount initially deposited in the Trust account; provided,
    further, that if the tax to be paid is a franchise tax, the written request by the Company to make such distribution shall be accompanied by a copy of the franchise tax bill from the relevant taxing authority for the Company. The written request
    of the Company referenced above shall constitute presumptive evidence that the Company is entitled to said funds, and the Trustee shall have no responsibility to look beyond said request;

  

  

  (k)          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 D (a “Regulatory Withdrawal Instruction”),
      withdraw from the Trust Account and distribute to the Company the amount of interest earned on the Property requested by the Company to fund regulatory
      compliance requirements and costs related thereto (a “Regulatory Withdrawal”), which amount shall be delivered directly to the Company; provided, however, that to the extent there is not sufficient cash in the Trust Account to fund such Regulatory Withdrawal, the Trustee shall liquidate such assets held in the Trust Account as shall be
      designated by the Company in writing to make such distribution, so long as there is no reduction in the principal amount initially deposited in the Trust account. The written request of the Company
      referenced above shall constitute presumptive evidence that the Company is entitled to said funds, and the Trustee shall have no responsibility to look
      beyond said request;

  
    3

    
      

  

  

  

  (l)          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 E to the Public Stockholders of
    record as of such date (a “Stockholder Redemption Withdrawal Instruction”), the Trustee shall distribute on behalf of the Company the amount requested by the Company to be used to redeem shares of Common Stock from Public Stockholders properly
    submitted in connection with a stockholder vote to approve an amendment to the Company’s amended and restated Certificate of Incorporation (i) to modify the substance or timing of the Company’s obligation to redeem 100% of its public shares of Common
    Stock if the Company has not consummated an initial Business Combination within such time as is described in the Company’s amended and restated Certificate of Incorporation or (ii) with respect to any provisions relating to the rights of holders of
    Common Stock. The written request of the Company referenced above shall constitute presumptive evidence that the Company is entitled to distribute said funds, and the Trustee shall have no responsibility to look beyond said request; and

  

  

  (m)          Not make any withdrawals or distributions from the Trust Account other than pursuant to Section 1(i), (j), (k)or (l) above.

  

  

  2.          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, President, Chief Executive Officer, Chief Financial Officer or Secretary. In
    addition, except with respect to its duties under Sections 1(i), 1(j), 1(k) and 1(l) hereof, 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 and with
    reasonable care, 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 Section 4 hereof, hold the Trustee harmless and indemnify the Trustee from and against any and all expenses, including reasonable counsel fees and disbursements, or
    losses suffered by the Trustee in connection with any action taken by it hereunder and in connection with any action, suit or other proceeding brought against the Trustee involving any claim, or in connection with any claim or demand, which arises out
    of or relates to this Agreement, the services of the Trustee hereunder, or the Property or any interest earned on the Property, except for expenses and losses resulting from the Trustee’s, or its representatives’, gross negligence, fraud 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 Section 2(b), it shall notify
    the Company in writing of such claim (hereinafter referred to as the “Indemnified Claim”). 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; provided, further that the Company may conduct and manage the defense against any Indemnified Claim if the Trustee does not promptly take reasonable steps to mount such a
    defense. The Trustee may not agree to settle any Indemnified Claim without the prior written consent of the Company.  The Company may participate in any such action with its own counsel;

  
    4

    
      

  

  

  

  

  

  (c)          Pay the Trustee the fees set forth on Schedule A hereto, including an initial set-up fee, annual administration fee, and transaction processing fee 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 unless and until it is distributed to the Company pursuant to Sections 1(i) through 1(k) hereof. The
    Company shall pay the Trustee the initial set-up fee and the first annual administration fee at the consummation of the Offering.  The Company shall not be responsible for any other fees or charges of the Trustee except as set forth in this Section
      2(c), Schedule A and as may be provided in Section 2(b) hereof;

  

  

  (d)          In connection with any vote of the Company’s stockholders regarding a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination
    involving the Company and one or more businesses (the “Business Combination”), provide to the Trustee an affidavit or certificate of the inspector of elections for the stockholder meeting verifying the vote of such stockholders regarding such
    Business Combination;

  

  

  (e)          Provide the Representative with a copy of any Termination Letter(s) and/or any other correspondence that is sent to the Trustee with respect to any proposed withdrawal from the Trust
    Account promptly after it issues the same;

  

  

  (f)          Unless otherwise agreed between the Company and the Representative, ensure that any Instruction Letter delivered in connection with a Termination Letter in the form of Exhibit A expressly

    provides that the Deferred Discount is paid directly to the accounts as directed by the Representative prior to any transfer of the funds held in the Trust Account to the Company or any other person;

  

  

  (g)          Instruct the Trustee to make only those distributions that are permitted under this Agreement, and refrain from instructing the Trustee to make any distributions that are not permitted
    under this Agreement; and

  

  

  (h)          Within four (4) business days after the Representative exercises the over-allotment option (or any unexercised portion thereof) or such over-allotment expires, provide the Trustee with a
    notice in writing of the total amount of the Deferred Discount, which shall in no event be less than $7,095,375, or $8,276,625 if the underwriters’ overallotment option is exercised in full.

  

  

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

  
    5

    
      

  

  

  

              

  (a)     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;
  

  

           (b)          Take

  any action with respect to the Property, other than as directed in Section 1 hereof, and the Trustee shall have no liability to any party except for liability arising out of the Trustee’s, or its representatives’, gross negligence, fraud, or
  willful misconduct;
  

  

  (c)          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 reasonably incurred expenses incident thereto;

  

  

  (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 Trustee’s best judgment, except
    for the Trustee’s, or its representatives’, gross negligence, fraud, 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, which counsel may be the Company’s counsel), 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 the Trustee believes, in good faith and with reasonable care, 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 accuracy of the information contained in the Registration Statement;

  

  

  (h)          Provide any assurance that any Business Combination entered into by the Company or any other action taken by the Company is as contemplated by the Registration Statement;

  
    6

    
      

  

  

  

  (i)          File information returns with respect to the Trust Account with any local, state or federal taxing authority or provide periodic written statements to the Company documenting the taxes
    payable by the Company, if any, relating to any interest income earned on the Property;

  

  

  (j)          Prepare, execute and file tax reports, income or other tax returns and pay any taxes with respect to any income generated by, and activities relating to, the Trust Account, regardless of
    whether such tax is payable by the Trust Account or the Company, including, but not limited to, franchise and income tax obligations, except pursuant to Section 1(j) hereof; or

  

  

  (k)          Verify calculations, qualify or otherwise approve the Company’s written requests for distributions pursuant to Sections 1(i), 1(j), 1(k) and 1(k) hereof.

  

  

  4.          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 2(b) or

    Section 2(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.

  

  

  5.          Termination and Replacement of Trustee. 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, pending which
    the Trustee shall continue to act in accordance with this Agreement. At such time that the Company notifies the Trustee that a successor trustee has been appointed 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 and any other reasonable transfer requests that the Company may make, whereupon this Agreement
    shall terminate; provided, however, that in the event that the Company does not locate a successor trustee within ninety (90) 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 and its obligations in accordance with the provisions of Section 1(i) hereof and distributed the
    Property in accordance with the provisions of the Termination Letter, this Agreement shall terminate except with respect to Section 2(b).

  
    7

    
      

  

  

  

  
    
      	

            	6.	
              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 confidential information, or of any change in its authorized personnel. In executing funds transfers, the Trustee shall 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. Except for any liability arising out of the Trustee’s, or its representatives’, gross negligence, fraud, or willful misconduct, the Trustee shall not be liable
    for any loss, liability or expense resulting from any error in the information or transmission of the funds.

  

  

  (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.  This Agreement 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. This Agreement or any provision hereof may only be changed,
    amended or modified (other than to correct a typographical error) by a writing signed by each of the parties hereto.

  

  

  (d)          Sections 1(i) and 1(k) hereof may only be changed, amended or modified pursuant to Section 6(c) hereof with the Consent of the Stockholders, it being the specific
    intention of the parties hereto that each of the Company’s stockholders is, and shall be, a third party beneficiary of this Section 6(d) with the same right and power to enforce this Section 6(d) as the other parties hereto. For
    purposes of this Section 6(d), the “Consent of the Stockholders” means receipt by the Trustee of a certificate from the inspector of elections of the stockholder meeting certifying that either (i) the Company’s stockholders of record as
    of a record date established in accordance with Section 213(a) of the Delaware General Corporation Law, as amended (“DGCL”) (or any successor rule), who hold sixty-five percent (65%) or more of all then outstanding shares of the Common Stock and
    Class B common stock, par value $0.0001 per share, of the Company voting together as a single class, have voted in favor of such change, amendment or modification, or (ii) the Company’s stockholders of record as of the record date who hold sixty-five
    percent (65%) or more of all then outstanding shares of the Common Stock and Class B common stock, par value $0.0001 per share, of the Company voting together as a single class, have delivered to such entity a signed writing approving such change,
    amendment or modification. No such amendment will affect any Public Stockholder who has otherwise indicated his election to redeem his share of Common Stock in connection with a stockholder vote sought to amend the Certificate of Incorporation. Except
    for any liability arising out of the Trustee’s, or its representatives’, gross negligence, fraud, or willful misconduct, the Trustee may rely conclusively on the certification from the inspector or elections referenced above and shall be relieved of
    all liability to any party for executing the proposed amendment in reliance thereon.

  
    8

    
      

  

  

  

  (e)          The parties hereto consent to the jurisdiction and venue of any state or federal court located in the City of New York, County of New York, State of New York, for purposes of resolving any
    disputes hereunder. AS TO ANY CLAIM, CROSS-CLAIM OR COUNTERCLAIM IN ANY WAY RELATING TO THIS AGREEMENT, EACH PARTY WAIVES THE RIGHT TO TRIAL BY JURY.

  

  

  (f)          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, 30th Floor

  New York, NY 10004

  Attn: Francis Wolf and Celeste Gonzalez

  Email: fwolf@continentalstock.com

   cgonzalez@continentalstock.com

  

  

  if to the Company, to:

  

  

  South Mountain Merger Corp.

  767 Fifth Avenue, 9th Floor

  New York, NY 10153

  Attn: Charles Bernicker

  

  

  in each case, with copies to:

  

  

  Paul, Weiss, Rifkind, Wharton & Garrison LLP

  1285 Avenue of the Americas

  New York, New York 10019

  Attn: Raphael M. Russo

  Fax No.: (212) 757-3990

  

  

  and

  

  

  Citigroup Global Markets Inc.

  388 Greenwich Street

  New York, NY 10013

  Attn: Pavan Bellur

  
    9

    
      

  

  

  

  in each case, with copies to:

  

  

  Kirkland & Ellis LLP

  601 Lexington Avenue

  New York, NY 10022

  Attn.: Christian Nagler

  Fax No.: (212) 446-4900

  

  

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

  

  

  (h)          Each of the Company and the Trustee hereby acknowledges and agrees that the Representative is a third party beneficiary of this Agreement.

  

  

  (i)          The Trustee shall perform its duties under this Agreement in compliance with all applicable laws and keep confidential all information relating to this Agreement and, except as required by
    applicable law, shall not use such information for any purpose other than the performance of the Trustee’s obligations under this Agreement.

  

  

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

  

  

  (k)          This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same
    Agreement. Only one counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

  

  

  [Signature Page Follows]

  
    10

    
      

  

  

  

  

  

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

  

  

  	 	
          Continental Stock Transfer & Trust Company, as Trustee

        
	 	 	 
	 	
          By:

        	/s/ Francis Wolf
	 	 	
          Name: Francis Wolf

        
	 	 	
          Title: Vice President

        
	 	 	 
	 	
          South Mountain Merger Corp.

        
	 	 	 
	 	
          By:

        	/s/ Charles B. Bernicker
	 	 	
          Name: Charles B. Bernicker

        
	 	 	
          Title:   Chief Executive Officer

        

  

  

  [Signature Page to Investment Management Trust Agreement]

  
    11

    
      

  

  

  

  SCHEDULE A

  

  

  

  

  	
          Fee Item

        	
          Time and method of payment

        	
          Amount

        
	
          Initial set-up fee.

        	
          Initial closing of Offering by wire transfer.

        	
          $  3,500.00  

          

        
	
          Trustee administration fee

        	
          Payable annually. First year fee payable at initial closing of Offering by wire transfer; thereafter, payable by wire transfer or check.

        	
          $10,000.00  

          

        
	
          Transaction processing fee for disbursements to Company under Sections 1(i), 1(j), 1(k) and 1(l)

        	
          Deduction by Trustee from accumulated income following disbursement made to Company under Section 1

        	
          $          250.00  

          

        
	
          Paying Agent services as required pursuant to Section 1(i)

           

           

        	
          Billed to Company upon delivery of service pursuant to Section 1(i)

        	
          Prevailing rates  

          

        

  

  

  

  

  
    12

    
      

  

  

  

  EXHIBIT A

  

  

  [Letterhead of Company]

  [Insert date]

  

  

    Continental Stock Transfer & Trust Company

    1 State Street, 30th Floor

    New York, NY 10004

    Attn: Francis Wolf and Celeste Gonzalez

  

  

   Re: Trust Account No. ___ Termination Letter

  

  

   Ladies and Gentlemen:

  

  

  Pursuant to Section 1(i) of the Investment Management Trust Agreement between South Mountain Merger Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”),

    dated as of June ___, 2019 (the “Trust Agreement”), this is to advise you that the Company has entered into an agreement with [insert name] (the “Target Business”) to consummate a business combination with Target Business (the “Business

      Combination”) on or about [insert date]. The Company shall notify you at least forty- eight (48) hours in advance of the actual date of the consummation of the Business Combination (the “Consummation Date”). Capitalized terms used but not
    defined herein shall have the meanings set forth in the Trust Agreement.

  

  

  In accordance with the terms of the Trust Agreement, we hereby authorize you to commence to liquidate all of the assets of the Trust Account on [insert date], and to transfer the proceeds into the
    trust operating account at ________________________ to the effect that, on the Consummation Date, all of the 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 (including as directed to it by the Representative) (with respect to the Deferred Discount). It is acknowledged and agreed that while the funds are on deposit in the trust operating account at ________________________ 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, or will be consummated concurrently with your transfer
    of funds to the accounts as directed by the Company (the “Notification”) and (ii) the Company shall deliver to you (a) [an affidavit] [a certificate] of the Chief Executive Officer of the Company, which verifies that the Business Combination has
    been approved by a vote of the Company’s stockholders, if a vote is held and (b) a joint written instruction signed by the Company and the Representative with respect to the transfer of the funds held in the Trust Account, including payment of amounts
    owed to public stockholders who have properly exercised their redemptions rights and payment of amounts of the Deferred Discount to the Representative from the Trust Account (the “Instruction Letter”). You are hereby directed and authorized to
    transfer the funds held in the Trust Account immediately upon your receipt of the Notification 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 in writing of the same and the Company shall direct you as to whether such funds should remain in the Trust Account and be distributed after the Consummation Date to the
    Company. Upon the distribution of all the funds, net of any payments necessary for reasonable unreimbursed expenses related to liquidating the Trust Account, your obligations under the Trust Agreement shall be terminated.

  
    13

    
      

  

  

  

  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 Section 1(c) of the Trust Agreement on the business day immediately following the
    Consummation Date as set forth in such written instruction as soon thereafter as possible.

  

  

  	 	
          Very truly yours,

        
	 	 	 
	 	
          South Mountain Merger Corp.

        
	 	 	 
	 	
          By:

        	

        
	 	 	
          Name: Charles B. Bernicker

        
	 	 	
          Title: Chief Executive Officer

        
	 	 	 

  

  

  cc:          Citigroup Global Markets Inc.

  
    14

    
      

  

  

  

  EXHIBIT B

  

  

  [Letterhead of Company]

  [Insert date]

  

  

    Continental Stock Transfer & Trust Company

    1 State Street, 30th Floor 

  

    New York, NY 10004

    Attn: Francis Wolf and Celeste Gonzalez

  

  

  Re:          Trust Account No. __ Termination Letter

  

  

  Ladies and Gentlemen:

  

  

  Pursuant to Section 1(i) of the Investment Management Trust Agreement between South Mountain Merger Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”),

    dated as of June ___, 2019 (the “Trust Agreement”), this is to advise you that the Company has been unable to effect a business combination with a Target Business within the time frame specified in the Company’s amended and restated Certificate
    of Incorporation, as described in the Company’s Prospectus relating to the Offering.  Capitalized terms used but not defined herein 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 of the assets in the Trust Account and to transfer the total proceeds into a segregated account held by you
    on behalf of the Beneficiaries to await distribution to the Public Stockholders. The Company has selected [insert completion deadline] as the effective date for the purpose of determining when the Public Stockholders will be entitled to receive their
    share of the liquidation proceeds. You agree to be the Paying Agent of record and, in your separate capacity as Paying Agent, agree to distribute said funds directly to the Public Stockholders 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, net of any payments necessary for reasonable unreimbursed expenses related to liquidating the Trust Account, your obligations under the Trust
    Agreement shall be terminated, except to the extent otherwise provided in Section 1(i) of the Trust Agreement.

  

  

  	 	
          Very truly yours,

        
	 	 	 
	 	
          South Mountain Merger Corp.

        
	 	 	 
	 	
          By:

        	

        
	 	 	
          Name: Charles B. Bernicker

        
	 	 	
          Title:  Chief Executive Officer

        

  

  

  cc:          Citigroup Global Markets Inc.
  
    15

    
      

  

  EXHIBIT C

  

  

  [Letterhead of Company]

  [Insert date]

  

  

    Continental Stock Transfer & Trust Company

    1 State Street, 30th Floor

    New York, NY 10004

    Attn: Francis Wolf and Celeste Gonzalez

  

  

  Re:          Trust Account No. __ Tax Payment Withdrawal Instruction

  

  

  Ladies and Gentlemen:

  

  

  Pursuant to Section 1(j) of the Investment Management Trust Agreement between South Mountain Merger Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”),

    dated as of June __, 2019 (the “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. Capitalized terms used but not defined herein shall
    have the meanings set forth in the Trust Agreement.

  

  

  The Company needs such funds [to pay for the tax obligations as set forth on the attached tax return or tax statement]. 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]

  

  

  	 	
          Very truly yours,

        
	 	 	 
	 	
          South Mountain Merger Corp.

        
	 	 	 
	 	
          By:

        	

        
	 	 	
          Name: Charles B. Bernicker

        
	 	 	
          Title:

        

  

  

  cc:          Citigroup Global Markets Inc.

  
    16

    
      

  

  EXHIBIT D

  

  

  [Letterhead of Company]

  [Insert date]

  

  

    Continental Stock Transfer & Trust Company

    1 State Street, 30th Floor

    New York, NY 10004

    Attn: Francis Wolf and Celeste Gonzalez

  

  

  Re:          Trust Account No. __ Regulatory Withdrawal Instruction

  

  

  Ladies and Gentlemen:

  

  

  Pursuant to Section 1(k) of the Investment Management Trust Agreement between South Mountain Merger Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”),

    dated as of June __, 2019 (the “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. Capitalized terms used but not defined herein shall
    have the meanings set forth in the Trust Agreement.

  

  

  The Company needs such funds to fund its regulatory compliance requirements and costs related thereto. 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]

  

  

  	 	
          Very truly yours,

        
	 	 	 
	 	
          South Mountain Merger Corp.

        
	 	 	 
	 	
          By:

        	 
	 	 	
          Name:

        
	 	 	
          Title:

        

  

  

  cc:          Citigroup Global Markets Inc.

  
    17

    
      

  

  EXHIBIT E

  

  

  [Letterhead of Company]

  [Insert date]

  

  

  Continental Stock Transfer & Trust Company

  1 State Street, 30th Floor

  New York, New York 10004

  Attn: Francis Wolf and Celeste Gonzalez

  

  

  Re:          Trust Account No. ___ Stockholder Redemption Withdrawal Instruction

  

  

  Ladies and Gentlemen:

  

  

  Pursuant to Section 1(k) of the Investment Management Trust Agreement between South Mountain Merger Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”),

    dated as of June __, 2019 (the “Trust Agreement”), the Company hereby requests that you deliver to the redeeming Public Stockholders of the Company $__________ of the principal and interest income earned on the Property as of the date hereof
    into a segregated account held by you on behalf of the Beneficiaries. Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.

  

  

  The Company needs such funds to pay its Public Stockholders who have properly elected to have their shares of Common Stock redeemed by the Company in connection with a stockholder vote to approve an
    amendment to the Company’s amended and restated Certificate of Incorporation to (i) modify the substance or timing of the Company’s obligation to redeem 100% of its public shares of Common Stock if the Company has not consummated an initial Business
    Combination within such time as is described in the Company’s amended and restated Certificate of Incorporation, or (ii) with respect to any provisions relating to the rights of holders of Common Stock. As such, you are hereby directed and authorized
    to transfer (via wire transfer) such funds promptly upon your receipt of this letter into a segregated account held by you on behalf of the Beneficiaries.

  

  

  	 	
          South Mountain Merger Corp.

        
	 	 	 
	 	
          By:

        	

        
	 	 	
          Name: Charles B. Bernicker

        
	 	 	
          Title:

        

  

  

  cc:          Citigroup Global Markets Inc.

  

  

  18

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