Common use of Deferred Equity Clause in Contracts

Deferred Equity. The Company agrees to issue to Chardan (and/or its designee(s)) such number of shares of Common Stock equal to three-quarters of one percent (0.75%) of the number of Units sold (45,000 shares if the Over-allotment Option is not exercised, and up to 51,750 shares if the Over-allotment Option is exercised in full) (the “Deferred Equity”). Delivery of the Deferred Equity shall be made upon the consummation of the Business Combination. The Company shall deliver to the Representative (and/or its designee(s)) upon the consummation of the Business Combination, certificates for the Deferred Equity in the name or names and in such authorized denominations as the Representative may request. Pursuant to Rule 5110(e)(1) of FINRA’s rules, the Deferred Equity is subject to a lock-up for a period of one hundred eighty (180) days immediately following the commencement of sales in the offering during which the securities may not be sold, transferred, assigned, pledged or hypothecated, or be subject of any hedging, short sale, derivative or put or call transaction that would result in the economic disposition of the securities.