Item 1.01 Entry Into A Material
Definitive Agreement.
Business Combination Agreement
On March 3, 2022, Provident Acquisition Corp., an exempted company
incorporated with limited liability under the laws of Cayman Islands (“Provident”) entered into an Agreement and Plan of Merger
(the “Business Combination Agreement”) with Perfect Corp., an exempted company incorporated with limited liability under the
laws of Cayman Islands (“Perfect”), Beauty Corp., an exempted company incorporated with limited liability under the laws of
Cayman Islands and a wholly-owned subsidiary of Perfect (“Merger Sub 1”) and Fashion Corp., an exempted company incorporated
with limited liability under the laws of Cayman Islands and a wholly-owned subsidiary of Perfect (“Merger Sub 2”), pursuant
to which, among other transactions, on the terms and subject to the conditions set forth therein, (i) Merger Sub 1 will merge with
and into Provident (the “First Merger”), with Provident surviving the First Merger as a wholly-owned subsidiary of Perfect,
and (ii) immediately after the consummation of the First Merger, Provident (as the surviving company of the First Merger) will merge
with and into Merger Sub 2 (the “Second Merger” and together with the First Merger, collectively, the “Mergers”),
with Merger Sub 2 surviving the Second Merger as a wholly-owned subsidiary of Perfect (the “Business Combination”).
The Business Combination
Pursuant to the Business Combination Agreement and subject to the approval
of the Provident shareholders, among other things, (i) immediately prior to the effective time of the First Merger (the “First
Merger Effective Time”), each Class B ordinary share of Provident, par value $0.0001 per share (“Provident Class B
Ordinary Shares”), outstanding immediately prior to the First Merger Effective Time will be automatically converted into a number
of Class A ordinary shares of Provident, par value $0.0001 per share (“Provident Class A Ordinary Shares”) in accordance
with the articles of association of Provident then effective, and, after giving effect to such automatic conversion, at the First Merger
Effective Time and as a result of the First Merger, (a) each issued and outstanding Provident Class A Ordinary Share (other
than the Provident Dissenting Shares (as defined below)) will be cancelled in exchange for the right to receive one Class A ordinary
share of Perfect, par value $0.10 per share (“Perfect Class A Ordinary Share”) after giving effect to the Recapitalization
(as defined below), and (b) each issued and outstanding Provident Class A Ordinary Share that is held by any person who has
validly exercised and not effectively withdrawn or lost their right to dissent from the First Merger in accordance with Section 238
of the Companies Act (As Revised) of the Cayman Islands (“Provident Dissenting Share”) will be cancelled and carry no right
other than the right to receive the payment of the fair value of such Provident Dissenting Share determined in accordance with Section 238
of the Companies Act (As Revised) of the Cayman Islands, and (ii) each issued and outstanding warrant of Provident sold to the public
and to Provident Acquisition Holdings Ltd., a Cayman Islands exempted company with limited liability (“Sponsor”), in a private
placement in connection with Provident’s initial public offering (“Provident Warrants”) will be converted into a corresponding
warrant exercisable for Perfect Class A Ordinary Shares (“Perfect Warrants”).
Immediately prior to the First Merger Effective Time, (i) the
amended and restated memorandum and articles of association of Perfect (“Listing A&R AoA”) will be adopted and become
effective, and (ii) Perfect will effect a share combination such that each common share of Perfect, par value $0.10 per share, and
each preferred share of Perfect, par value $0.10 per share (collectively, the “Pre-Recapitalization Perfect Shares”) (whether
issued and outstanding or authorized but unissued) immediately prior to the First Merger Effective Time, will be consolidated into a number
of shares equal to the Combination Factor (as defined below), and upon such share combination, (a) each resulting share held by any
person other than DVDonet.com. Inc., Golden Edge Co., Ltd., World Speed Company Limited and Alice H. Chang (collectively, the “Founder
Parties”) will be repurchased and cancelled by Perfect in exchange for the issuance of one Perfect Class A Ordinary Share,
and (b) each resulting share that is held by the Founder Parties will be repurchased and cancelled by Perfect in exchange for the
issuance of one Class B ordinary share of Perfect, par value $0.10 per share (“Perfect Class B Ordinary Share”,
and together with Perfect Class A Ordinary Shares, the “Perfect Ordinary Shares”) (items (i) through (ii), the “Recapitalization”).
Pursuant to the Listing A&R AoA, each Perfect Class A Ordinary Share will have one vote and each Perfect Class B Ordinary
Share will have ten votes.
The “Combination Factor” is a number
resulting from dividing the Per Share Perfect Equity Value by $10.00. The “Per Share Perfect Equity Value” is obtained by
dividing (i) the equity value of Perfect (being $1,010,000,000) by (ii) the aggregate number of Pre-Recapitalization Perfect
Shares that are issued and outstanding immediately prior to the Recapitalization. Upon the Recapitalization, each Perfect Ordinary Share
will have a value of $10.00.
The Business Combination has been approved by
the boards of directors of both Provident and Perfect.
Conditions to Closing
The consummation of the Business Combination is conditioned upon, among
other things: (i) receipt of the required approval by the Provident shareholders; (ii) receipt of the required approval by the
Perfect shareholders; (iii) after giving effect to the exercise of the redemption rights of the Provident shareholders (the “Provident
Shareholder Redemption”), Merger Sub 2 (as the surviving company of the Mergers) having at least $5,000,001 of net tangible assets
immediately after the consummation of the Business Combination; (iv) the absence of any law or governmental order enjoining, prohibiting
or making illegal the consummation of the Business Combination; (v) the approval for listing of Perfect Class A Ordinary Shares
and Perfect Warrants to be issued in connection with the Business Combination on the Nasdaq Stock Market (“Nasdaq”) immediately
following the Closing (as defined in the Business Combination Agreement); (vi) effectiveness of the Registration Statement (as defined
below) in accordance with the Securities Act of 1933, as amended (the “Securities Act”) and the absence of any stop order
issued by the U.S. Securities and Exchange Commission (the “SEC”) with respect to the Registration Statement; and (vii) completion
of the Recapitalization in accordance with the terms of the Business Combination Agreement.
The obligations of Perfect, Merger Sub 1 and Merger Sub 2 to consummate
the Business Combination are also conditioned upon, among other things: (i) the accuracy of the representations and warranties of
Provident (subject to certain materiality standards set forth in the Business Combination Agreement); (ii) material compliance by
Provident with its pre-closing covenants; (iii) the funds contained in Provident’s trust account (after giving effect to the
Provident Shareholder Redemption), together with the aggregate amount of proceeds from the PIPE Financing (as defined below) and from
the transactions pursuant to the forward purchase agreements that were entered into in connection with Provident’s initial public
offering (the “Forward Purchase Agreements”), equaling or exceeding $125,000,000; and (iv) the absence of any event since
the date of the Business Combination Agreement that has had, or would reasonably be expected to have, individually or in the aggregate,
a material adverse effect on the ability of Provident to timely consummate the Business Combination.
The obligations of Provident to consummate the Business Combination
is also conditioned upon, among other things: (i) the accuracy of the representations and warranties of Perfect (subject to certain
materiality standards set forth in the Business Combination Agreement); (ii) material compliance by Perfect with its pre-closing
covenants; and (iii) the absence of any event since the date of the Business Combination Agreement that has had, or would reasonably
be expected to have, a material adverse effect on the business, results of operations or financial condition of Perfect and its subsidiaries,
taken as a whole (subject to certain exceptions set forth in the Business Combination Agreement).
Covenants
The Business Combination Agreement includes customary
covenants of the parties thereto with respect to operation of their respective businesses prior to consummation of the Business Combination
and efforts to satisfy conditions for the consummation of the Business Combination. The Business Combination Agreement also contains additional
covenants of the parties, including, among others, (i) a covenant providing for Provident and Perfect to cooperate in the preparation
of the Registration Statement on Form F-4 required to be prepared in connection with the Business Combination (the “Registration
Statement”), (ii) covenants requiring Provident to call, convene and hold an extraordinary general meeting of the Provident
shareholders (the “Provident Extraordinary General Meeting”) to consider and vote upon the Business Combination and to provide
the Provident shareholders with the opportunity to effect a Provident Shareholder Redemption in connection therewith as promptly as reasonably
practicable following the date that the Registration Statement is declared effective by the SEC under the Securities Act, (iii) covenants
requiring Perfect to obtain the approval of the Business Combination by the Perfect shareholders as expeditiously as possible after the
effectiveness of the Registration Statement, and (iv) covenants prohibiting Provident and Perfect from, among other things, soliciting
or negotiating with third parties regarding alternative transactions and agreeing to certain related restrictions.
Representations and Warranties
The Business Combination Agreement contains representations and warranties
of Perfect, relating, among other things, to corporate organization; the authorization, performance and enforceability against Perfect
of the Business Combination Agreement; required consents and filings; absence of conflicts; Perfect’s subsidiaries; capitalization
of Perfect and its subsidiaries; financial statements; absence of undisclosed liabilities; absence of changes; litigation; compliance
with laws; material contracts; intellectual property; data privacy and security; employee benefits; labor matters; tax matters; insurance;
real property; environmental matters; related party transactions; vendors; customers; anti-corruption; information supplied for inclusion
in the Registration Statement; and broker’s fees.
The Business Combination Agreement contains representations and warranties
of Provident, relating to, among other things, corporate organization; the authorization, performance and enforceability against Provident
of the Business Combination Agreement; required consents and filings; absence of conflicts; litigation; capitalization; undisclosed liabilities;
reports filed with the SEC, financial statements and internal controls; listing and compliance with Nasdaq rules; information supplied
for inclusion in the Registration Statement and Proxy Statement; trust account; absence of changes; compliance with laws; material contracts;
employees and employee benefits plans; properties; related party transactions; tax matters; PIPE Financing; anti-corruption; independent
investigation; and broker’s fees.
The representations and warranties made in the Business Combination
Agreement will not survive the consummation of the Mergers.
Perfect Shareholder Earnout
The Business Combination Agreement provides that, from and after the
Closing Date (as defined in the Business Combination Agreement) until the fifth anniversary of the Closing Date (the “Earnout Period”),
promptly (but in any event within fifteen (15) Business Days) after the occurrence of any Shareholder Earnout Event (as defined below).
Perfect will issue up to an aggregate of 10,000,000 Perfect Class A and Perfect Class B Ordinary Shares (the “Shareholder
Earnout Shares”) to certain persons who are Perfect’s shareholders immediately prior to the First Merger Effective Time (the
“Shareholder Earnout Participants”) in accordance with each such Shareholder Earnout Participant’s Pro Rata Portion
(as defined below). Subject to the terms and conditions contemplated by the Business Combination Agreement, 3,000,000, 3,000,000 and 4,000,000
of the Shareholder Earnout Shares are issuable if over any twenty (20) trading days within any thirty (30) trading day period during the
Earnout Period the daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $11.50,
$13.00 and $14.50, respectively (each, a “Shareholder Earnout Event”), provided that such Shareholder Earnout Participant
holds more than 1% of Perfect’s fully diluted share capital at the time of the applicable Shareholder Earnout Event. “Pro
Rata Portion” means, with respect to each Shareholder Earnout Participant entitled to Shareholder Earnout Shares in connection with
a Shareholder Earnout Event, a number of Perfect Ordinary Shares equal to the quotient obtained by dividing (i) the aggregate number
of Perfect Ordinary Shares held by such Shareholder Earnout Participant at the time of such Shareholder Earnout Event by (ii) the
aggregate number of Perfect Ordinary Shares held by all Shareholder Earnout Participants entitled to Shareholder Earnout Shares in connection
with such Shareholder Earnout Event at the time of the occurrence of such Shareholder Earnout Event.
In the event that, during the Earnout Period, there is a Change of
Control (as defined in the Business Combination Agreement) (or a definitive agreement providing for a Change of Control has been entered
into prior to the expiration of the Earnout Period and such Change of Control is ultimately consummated) or any liquidation, bankruptcy
or similar proceeding of Perfect, then any Shareholder Earnout Shares that have not been previously issued by Perfect (whether or not
previously earned) will be deemed earned and will be issued by Perfect to the Shareholder Earnout Participants upon the occurrence of
such event, unless, in the case of a Change of Control, the value of the consideration to be received by the holders of Perfect Ordinary
Shares in such transaction is less than the share price threshold applicable to the applicable Shareholder Earnout Event.
Equity Incentive Plan
The board of directors of Perfect adopted the
Perfect Corp. 2021 Stock Compensation Plan (the “Perfect Equity Incentive Plan”) on December 13, 2021, which will remain
in effect after the consummation of the Business Combination, subject to appropriate adjustment in connection with the Recapitalization.
Upon the consummation of the Recapitalization, each option that is outstanding and unexercised immediately prior to the Recapitalization
to purchase Pre-Recapitalization Perfect Shares granted under the Perfect Equity Incentive Plan prior to the First Merger Effective Time
(each, a “Perfect Option”), whether or not vested or unvested, will be adjusted into an option to purchase Perfect Class A
Ordinary Shares (in the case the holder thereof is not a Founder Party) or Perfect Class B Ordinary Shares (in the case the holder
thereof is a Founder Party). Each such adjusted option will be exercisable for that number of Perfect Class A Ordinary Shares or
Perfect Class B Ordinary Shares, as applicable, determined by multiplying the number of Pre-Recapitalization Perfect Shares subject
to such Perfect Option immediately prior to the Recapitalization by the Combination Factor, which product will be rounded down to the
nearest whole number of shares, at a per share exercise price determined by dividing the per share exercise price of such Perfect Option
immediately prior to the Recapitalization by the Combination Factor, which quotient will be rounded up to the nearest whole cent.
Termination
The Business Combination Agreement may be terminated under certain
customary and limited circumstances prior to Closing, including: (i) by written consent of all parties to the Business Combination
Agreement ; (ii) by either Provident or Perfect if the consummation of the Mergers is permanently enjoined, prohibited, deemed illegal
or prevented by a final, non-appealable governmental order; (iii) by either Provident or Perfect if the Closing has not occurred
on or before December 31, 2022 (the “Termination Date”); (iv) by either Provident or Perfect upon a breach of any
representation, warranty, covenant or agreement set forth in the Business Combination Agreement by the other party if such breach gives
rise to a failure of certain closing conditions to be satisfied and cannot be or has not been cured within thirty days following the receipt
of notice from the non-breaching party (or any shorter period of the time that remains between the delivery of such notice and the Termination
Date); or (v) by either Provident or Perfect if the Provident shareholder approval is not obtained at the Provident Extraordinary
General Meeting (subject to any permitted adjournment or postponement).
The foregoing description of the Business Combination Agreement does
not purport to be complete and is qualified in its entirety by the terms and conditions of the Business Combination Agreement, a copy
of which is filed with this Current Report on Form 8-K (the “Current Report”) as Exhibit 2.1 and the terms of which
are incorporated by reference herein.
The Business Combination Agreement contains representations,
warranties and covenants that the respective parties made to each other as of the date of such agreement or other specific dates. The
assertions embodied in those representations, warranties and covenants were made for purposes of the contract among the respective parties
and are subject to important qualifications and limitations agreed to by the parties in connection with negotiating the Business Combination
Agreement. The Business Combination Agreement has been included to provide investors with information regarding its terms. It is not intended
to provide any other factual information about the parties to the Business Combination Agreement. In particular, the representations,
warranties, covenants and agreements contained in the Business Combination Agreement, which were made only for purposes of the Business
Combination Agreement and as of specific dates, were solely for the benefit of the parties to the Business Combination Agreement, may
be subject to limitations agreed upon by the contracting parties (including being qualified by confidential disclosures made for the purposes
of allocating contractual risk between the parties to the Business Combination Agreement instead of establishing these matters as facts)
and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors and
reports and documents filed with the SEC. Investors should not rely on the representations, warranties, covenants and agreements, or any
descriptions thereof, as characterizations of the actual state of facts or condition of any party to the Business Combination Agreement.
In addition, the representations, warranties, covenants and agreements and other terms of the Business Combination Agreement may be subject
to subsequent waiver or modification. Moreover, information concerning the subject matter of the representations and warranties and other
terms may change after the date of the Business Combination Agreement, which subsequent information may or may not be fully reflected
in Provident’s public disclosures.
PIPE Financing
Concurrently with the execution of the Business Combination Agreement,
certain investors (the “PIPE Investors”) entered into certain share subscription agreements (each, a “PIPE Subscription
Agreement”) pursuant to which the PIPE Investors have committed to subscribe for and purchase Provident Class A Ordinary Shares
at $10.00 per share for an aggregate purchase price of $50,000,000 (the “PIPE Financing”). Under the PIPE Subscription Agreements,
the obligations of the parties to consummate the PIPE Financing are subject to the satisfaction or waiver of certain customary closing
conditions of the respective parties, including, among others, (i) the absence of a legal prohibition on consummating the PIPE Financing,
(ii) all conditions precedent under the Business Combination Agreement having been satisfied or waived, (iii) the accuracy of
representations and warranties in all material respects and (iv) material compliance with covenants.
At the First Merger Effective Time, each Provident Class A Ordinary
Share issued in the PIPE Financing will be treated the same as the other issued and outstanding Provident Class A Ordinary Shares
and be cancelled in exchange for the right to receive one Perfect Class A Ordinary Share. Perfect has agreed to register the resale
of such Perfect Class A Ordinary Shares pursuant to a registration statement that must be filed on or prior to the Closing Date (but
not prior to the date when the Registration Statement is declared effective).
The form of the PIPE Subscription Agreements is attached hereto as
Exhibit 10.1, and is incorporated herein by reference, and the foregoing description of the PIPE Financing and the PIPE Subscription
Agreements is qualified in its entirety by reference thereto.
Certain Related Agreements
The Business Combination Agreement contemplates the execution of various
additional agreements and instruments, on or before the Closing, including, among others, the following:
Sponsor Letter Agreement
Concurrently with the execution of the Business Combination Agreement,
Perfect, Provident and Sponsor entered into a letter agreement (the “Sponsor Letter Agreement”), pursuant to which Sponsor
agreed to, among other things, (i) attend the Provident Extraordinary General Meeting to establish a quorum for the purpose of approving
the Business Combination, and (ii) vote the Provident Class B Ordinary Shares, and any other Provident securities acquired by
Sponsor in favor of approving the transactions contemplated by the Business Combination Agreement.
Under the Sponsor Letter Agreement, Sponsor, in its capacity as the
holder of at least a majority of the Provident Class B Ordinary Shares in issue, has agreed to waive any anti-dilution adjustment
to the conversion ratio between Provident Class B Ordinary Shares and Provident Class A Ordinary Shares set forth in Article 17.3
of Amended and Restated Memorandum and Articles of Association of Provident, adopted by special resolution dated January 5, 2021
and effective on and from January 7, 2021 (the “Provident Governing Document”) that may result from the issuance of Provident
Class A Ordinary Shares in connection with the PIPE Financing. However, such waiver does not cover any adjustment to the conversion
ratio that may result from the closing of purchase of Provident Class A Ordinary Shares and Provident Warrants pursuant to the Forward
Purchase Agreements (the “Forward Purchase Financing”). In addition, to the extent that, after giving effect to the adjustment
to the conversion ratio under the Provident Governing Document as described in the foregoing sentences, the adjusted conversion ratio
is less than the sum of (i) one plus (ii) the quotient of (a) the aggregate number of Provident Class A Ordinary Shares
issued in the Forward Purchase Financing divided by (b) 23,000,000 (such sum, the “Target Conversion Ratio”), Perfect
will issue, immediately prior to the First Merger Effective Time but after the Recapitalization, to each holder of Provident Class B
Ordinary Shares as of immediately prior to the First Merger Effective Time such number of Perfect Class A Ordinary Shares that would
make the total number of Perfect Class A Ordinary Shares held by such holder immediately after the First Merger Effective Time equal
to an amount that such holder would hold if the Provident Class B Ordinary Shares had been converted into Provident Class A
Ordinary Shares at the Target Conversion Ratio immediately prior to the First Merger Effective Time.
The Sponsor Letter Agreement also provides that 25.90333% of the Perfect
Class A Ordinary Shares held by Sponsor as of immediately after the First Merger Effective Time (the “Forfeited Shares”)
will be forfeited and cancelled for no consideration immediately after, and contingent upon, the Closing. Subject to the terms and conditions
contemplated by the Sponsor Letter Agreement, upon the occurrence of a Sponsor Earnout Event (as defined below) during the Earnout Period,
Perfect will issue Perfect Class A Ordinary Shares of up to an aggregate number equal to 68.74994% of the amount of the Forfeited
Shares (the “Sponsor Earnout Shares”) to Sponsor, with (i) 50% of the Sponsor Earnout Shares issuable if over any twenty
(20) trading days within any thirty (30) trading day period during the Earnout Period the daily volume-weighted average price of the Perfect
Class A Ordinary Shares is greater than or equal to $11.50, and (ii) 50% of the Sponsor Earnout Shares issuable if over any
twenty (20) trading days within any thirty (30) trading day period during the Earnout Period the daily volume-weighted average price of
the Perfect Class A Ordinary Shares is greater than or equal to $13.00 (each, an “Sponsor Earnout Event”). In the event
that, during the Earnout Period, there is a Change of Control (as defined in the Sponsor Letter Agreement) (or a definitive agreement
providing for a Change of Control has been entered into prior to the expiration of the Earnout Period and such Change of Control is ultimately
consummated) or any liquidation, bankruptcy or similar proceeding of Perfect, then any Sponsor Earnout Shares that have not been previously
issued by Perfect (whether or not previously earned) will be deemed earned and will be issued by Perfect to Sponsor upon such event, unless
in the case of a Change of Control, the value of the consideration to be received by the holders of Perfect Ordinary Shares in such transaction
is less than the share price threshold applicable to the applicable Sponsor Earnout Event.
Pursuant to the Sponsor Letter Agreement, Sponsor also agreed not to
transfer, during a period of twelve (12) months from and after the Closing Date, any Perfect Class A Ordinary Shares and Perfect
Warrants held by it immediately after the First Merger Effective Time, any Perfect Class A Ordinary Shares acquired by Sponsor upon
the exercise of such Perfect Warrants, or any Sponsor Earnout Shares issued pursuant to the Sponsor Letter Agreement subject to customary
exceptions. The lock-up requirements will cease to apply after the later of (i) the date on which the daily volume-weighted average
price of the Perfect Class A Ordinary Shares equals or exceeds $12.00 per share for any twenty (20) trading days within any consecutive
thirty (30) trading day period after the Closing Date and (ii) the date that is one hundred and eighty (180) days after the Closing
Date.
The foregoing description of the Sponsor Letter
Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the Sponsor Letter Agreement,
a copy of which is filed with this Current Report as Exhibit 10.2 and the terms of which are incorporated by reference herein.
Perfect Shareholder Voting Agreement
Concurrently with the execution of the Business
Combination Agreement, Perfect, Provident and certain shareholders of Perfect (the “Perfect Voting Shareholders”) entered
into a voting agreement (the “Perfect Shareholder Voting Agreement”), pursuant to which each Perfect Voting Shareholder agreed
to, among other things, (i) attend any Perfect shareholder meeting to establish a quorum for the purpose of approving the Business
Combination, and (ii) vote the Pre-Recapitalization Perfect Shares and any other Perfect securities acquired by such Perfect Voting
Shareholder in favor of approving the transactions contemplated by the Business Combination Agreement.
The foregoing description of the Perfect Shareholder
Voting Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the Perfect Shareholder
Voting Agreement, a copy of which is attached hereto as Exhibit 10.3 and is incorporated herein by reference.
Perfect Shareholder Lock-Up Agreement
At the Closing, Perfect, Provident and certain Perfect shareholders
(the “Perfect Lock-Up Shareholders”) will enter into a Lock-Up Agreement (the “Perfect Shareholder Lock-Up Agreement”),
pursuant to which each Perfect Lock-Up Shareholder will agree not to transfer (i) any Perfect Ordinary Shares held by such Perfect
Lock-Up Shareholder immediately after the effective time of the Second Merger (the “Second Merger Effective Time”), (ii) any
Perfect Ordinary Shares issuable upon the exercise of options or warrants to purchase Perfect Ordinary Shares held by such Perfect Lock-Up
Shareholder immediately after the Second Merger Effective Time (along with such options or warrants themselves), (iii) any Perfect
Ordinary Shares acquirable upon the conversion, exercise or exchange of any securities convertible into or exercisable or exchangeable
for Perfect Ordinary Shares held by such Perfect Lock-Up Shareholder immediately after the Second Merger Effective Time (along with such
securities themselves) and (iv) any Shareholder Earnout Shares to the extent issued pursuant to the Business Combination Agreement
((i) through (iv) collectively, the “Perfect Shareholder Locked-Up Shares”) during the applicable lock-up period,
subject to customary exceptions. For each Perfect Lock-Up Shareholder who is not CyberLink International Technology Corp., DVDonet.com.
Inc., Golden Edge Co., Ltd., World Speed Company Limited, Alice H. Chang, Louis Chen or Johnny Tseng, the applicable lock-up period
will be six (6) months from and after the Closing Date. For each of Cyberlink International Technology Corp., Alice H. Chang, Louis
Chen and Johnny Tseng, the applicable lock-up period will be twelve (12) months from and after the Closing Date.
The foregoing description of the Perfect Shareholder Lock-Up Agreement
does not purport to be complete and is qualified in its entirety by the terms and conditions of the Perfect Shareholder Lock-Up Agreement,
the form of which is attached hereto as Exhibit 10.4 and is incorporated herein by reference.
Registration Rights Agreement
At the Closing, Perfect, Sponsor and certain shareholders of Perfect
will enter into a Registration Rights Agreement (the “Registration Rights Agreement”) containing customary registration rights
for Sponsor and the shareholders of Perfect who are parties thereto.
The foregoing description of the Registration Rights Agreement does
not purport to be complete and is qualified in its entirety by the terms and conditions of the Registration Rights Agreement, the form
of which is attached hereto as Exhibit 10.5 and is incorporated herein by reference.