Document:

Exhibit 10.1

 

 

 

 

 

 

 

ANDOVER NATIONAL
CORPORATION

 

A Delaware corporation

 

 

 

 

 

 

_________________________________

 

SUBSCRIPTION AGREEMENT

 

FOR

 

CLASS A COMMON STOCK

 

_________________________________

 

 

 

 

 

 

     

     

    

 

INSTRUCTIONS TO SUBSCRIBERS

 

ANDOVER NATIONAL CORPORATION

 

a Delaware corporation

 

Persons wishing to
subscribe for shares of Class A Common Stock, $0.001 par value (“Common Shares”) of ANDOVER NATIONAL CORPORATION,
a Delaware corporation (the “Company”) are required to complete the documents listed below as part of this Subscription
Agreement. PLEASE DO NOT REMOVE ANY OF THE DOCUMENTS.

 

1. Subscription
Agreement. Each subscriber must complete the Subscription Agreement in the following manner:

 

(a) Please read Section
A carefully; it contains representations and warranties to be made by the subscriber on which the Company will rely.

 

(b) Please read Sections
B, C, and D carefully; they contain important terms and conditions concerning your purchase and ownership of the Common Shares.

 

(c) Complete Sections
E and F by inserting the amount of your subscription and/or other information called for in those sections.

 

(d) Complete and sign
the attached signature page.

 

(e) Please read carefully
the risk factors enumerated in the reports filed by the Company under the Securities Act of 1933, as amended (the “Securities
Act”) and the Securities Exchange Act of 1934, as amended, including pursuant to Sections 12(b), 12(g), 13(a) or 15(d)
thereof (the “SEC Reports”) as well as the risks factors enumerated in Exhibit C, which contains certain
important risk factors concerning your proposed investment in the Common Shares.

 

2.       Investor
Questionnaire. Each subscriber must read carefully, complete and sign the Investor Questionnaire attached as Exhibit
A. For purposes of this offering, you must demonstrate that you meet the investor suitability standards set forth below:

 

Investor Suitability
Standards

 

Investment in the Company
involves certain risks and is suitable only for persons of adequate financial means who have no need for liquidity with respect
to this investment and who can afford the risk of a complete loss of their investment.

 

     

     

    

 

Each investor must
be, and must represent and warrant to the Company, that such investor is an Accredited Investor as defined in the Securities Act.
“Accredited Investors” as defined in the Securities Act are those who, at the time of the sale of the Common
Shares, fall within certain categories enumerated in Rule 501(a) of Regulation D promulgated under the Securities Act, including
any of the following:

 

		(a)	Any individual who had an individual income in excess of $200,000 (or joint income with his or
her spouse of $300,000) in the last two years and who reasonably expects an individual income in excess of $200,000 (or such joint
income in excess of $300,000) in the current year. For purposes of this offering, individual and joint income shall equal adjusted
gross income, as reported in the investor’s federal tax return (less, for individual income only, any income attributed to
a spouse or to property owned by a spouse) and increased by the following amounts (but not, for individual income only, any amounts
attributable to a spouse or to property owned by a spouse): (i) the amount of any tax exempt interest received; (ii) the amount
of losses claimed as a limited partner in a limited partnership; (iii) any deduction claimed for depletion; (iv) amounts contributed
to an IRA or Keogh retirement plan; (v) alimony paid; and (vi) any amount by which income for long-term capital gains has been
reduced in arriving at adjusted gross income pursuant to the provisions of Section 1202 of the Internal Revenue Code of 1986, as
amended (the “Code”);

 

		(b)	Any individual whose individual net worth, or joint net worth with that individual’s spouse,
exceeds $1,000,000 (excluding the value of their primary residence);

 

		(c)	Any bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association
or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;
any broker or dealer registered pursuant to Section 15 of the Securities Exchange defined in Section 2(13) of the Securities Act;
any investment company registered under the Investment Company Act of 1940, as amended, or a business development company as defined
in Section 2(a)(48) of the Securities Act; any Small Business Investment Company licensed by the U.S. Small Business Administration
under Section 301(c) or (d) of the Small Business Investment Act of 1958, as amended; any employee benefit plan within the meaning
of Title 1 of the Employee Retirement Income Security fiduciary, as defined in Section 3(21) of ERISA, that is either a bank, savings
and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in
excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

 

		(d)	Any private business development company as defined in Section 202(a)(22) of the Investment Advisers
Act of 1940;

 

		(e)	Any organization described in Section 501(c)(3) of the Code, a business trust, or partnership with
assets in excess of $5,000,000 not specifically formed for the purpose of investing in the Company;

 

		(f)	Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring
the securities offered, whose purchase is directed by a sophisticated person as described in Section 230.506(b)(2)(ii) of the Securities
Act; or

 

    ii

     

    

 

		(g)	Any entity, all of whose equity owners are accredited investors.

 

Each investor must
also make certain additional representations to the general effect that such investor:

 

		(a)	does not have an overall commitment to investments that are not readily marketable that is disproportionate
to his or her net worth, and that his or her investment in the Company will not cause such overall commitment to become excessive;

 

		(b)	has adequate net worth and means of providing for his or her current needs and personal contingencies
to sustain a complete loss of his or her investment in the Company at the time of investment, and has no need for liquidity in
his or her investment in the Company;

 

		(c)	is acquiring Common Shares for his or her own account, for investment only, and not with a view
toward resale or distribution;

 

		(d)	is aware that he, she, or it may not be able to liquidate his, her, or its investment in the event
of emergency or for any other reason because the transferability of Common Shares will be subject to restrictions on resales imposed
by the Securities Act and the securities laws of certain states; and

 

		(e)	understands that an investment in the Common Shares involves substantial risks and that he, she,
or it is fully cognizant of an understands all of the risk factors relating to a purchase of the Shares, including, without limitation,
those risks set forth in the SEC Reports and in Exhibit C attached hereto.

 

In addition, an investment
in the Company must not exceed ten percent (10%) of an investor’s net worth.

 

The Company, in its
sole discretion, reserves the right to reject subscriptions from those who meet the suitability requirements or to accept subscriptions
from subscribers who do not meet all of the above suitability standards but who are otherwise qualified to purchase Common Shares.

 

Please follow the
instructions to the Investor Questionnaire. If you have questions concerning any of the information called for, you may ask
your lawyer, accountant or the Company for assistance.

 

3. “Bad
Actor” Questionnaire. If applicable, subscribers must read carefully, complete and sign the “Bad Actor”
Questionnaire attached as Exhibit B.

 

Rule 506 of Regulation
D promulgated under the Securities Act, provides an exemption from the registration requirements of the Securities Act for offerings
made to “Accredited Investors.” That exemption, however, is not available where any person participating in the offering
is disqualified due to specified past misconduct. The “Bad Actor” Questionnaire aims to determine whether any person
responsible for the Offering (as defined in the Subscription Agreement) described is so disqualified. The Company and its counsel
will rely on your answers in determining whether an exemption is available for the Offering.

 

    iii

     

    

 

Please follow the
instructions to the “Bad Actor” Questionnaire. If you have questions concerning any of the information called for,
you may ask your lawyer, accountant, or the Company for assistance.

 

4. Wire
Transfer. Please wire transfer the funds to the following account:

 

	Bank Name	 	
	Routing Instructions	 	 
	SWIFT Code:	 	 
	Account Information	 	 
	Reference Information	 	 

 

    iv

     

    

 

SUBSCRIPTION AGREEMENT

 

 

 

ANDOVER NATIONAL CORPORATION

 

Andover National Corporation

333 Avenue of Americas,
Suite 2000

Miami, Florida 33131-2185

 

Ladies and Gentlemen:

 

The undersigned hereby
applies to acquire shares of Class A Common Stock, $0.001 par value (“Common Shares”), of ANDOVER NATIONAL CORPORATION,
a Delaware corporation (the “Company”), in accordance with the terms of this Subscription Agreement, with respect
to the offering by the Company (the “Offering”) of up to 2,272,727 Common Shares at a price of $11.00 per share,
for an aggregate offering of up to $25,000,000.

 

Subject to the terms
and conditions of this Subscription Agreement, the undersigned (i) hereby subscribes for the Common Shares indicated on the signature
page hereof for the dollar amount indicated thereon; and (ii) hereby tenders an executed Subscription Agreement together with the
undersigned’s completed Investor Questionnaire attached hereto as Exhibit A and, if applicable, the undersigned’s
completed “Bad Actor” Questionnaire attached hereto as Exhibit B.

 

This subscription
is irrevocable (except as may otherwise be provided herein) but may be rejected by the Company in its sole discretion.

 

INSTRUCTIONS

 

Please complete the
Subscription Agreement in the following manner:

 

1. Please read Section
A carefully; it contains representations and warranties to be made by the subscriber on which the Company will rely.

 

2. Please read Sections
B, C, and D carefully; they contain important terms and conditions concerning your purchase and ownership of the Common Shares.

 

3. Complete Sections
E and F by inserting the amount of your subscription and/or other information called for in those sections.

 

4. Complete and sign
the signature page.

 

5. Please read carefully
the risk factors enumerated in the reports filed by the Company under the Securities Act of 1933, as amended (the “Securities
Act”) and the Securities Exchange Act of 1934, as amended, including pursuant to Sections 12(b), 12(g), 13(a) or 15(d)
thereof (the “SEC Reports”) as well as the risks factors enumerated in Exhibit C, which contains certain
important risk factors concerning your proposed investment in the Common Shares.

 

     

     

    

 

A. Representations
and Warranties of the Investor. The undersigned investor acknowledges, represents, warrants and agrees as follows:

 

1. The undersigned
has received, thoroughly read, and understands this Subscription Agreement. The undersigned acknowledges that all documents, records,
and books pertaining to this investment have been made available for inspection by the undersigned, his, her, or its attorney and/or
his, her, or its accountant. The undersigned and/or his, her, or its advisor(s) have had a reasonable opportunity to ask questions
of and receive answers from the Company or a person or persons acting on its behalf, concerning the terms and conditions of the
Offering, and to obtain additional information, to the extent possessed or obtainable without unreasonable effort or expense. All
such questions have been answered to the full satisfaction of the undersigned. No oral representations have been made or oral information
furnished to the undersigned or his, her, or its advisor(s) upon which the undersigned has relied in connection with the Offering.

 

2. The undersigned
(a) is qualified by his, her or its knowledge and experience in financial and business matters to evaluate the merits and risks
of an investment in the Common Shares and to make an informed decision relating thereto, (b) has adequate means of providing for
his, her or its current needs and possible personal contingencies, (c) has no need for liquidity in this investment, (d) is able
to bear the substantial economic risks of an investment in the Company for an indefinite period, (e) at the present time, can afford
a complete loss of such investment, and (f) does not have an overall commitment to investments that are not readily marketable
that is disproportionate to the undersigned’s net worth, and the undersigned’s investment in the Company will not cause
such overall commitment to become excessive.

 

3. The undersigned
is an “accredited investor” (as set forth in the Investor Questionnaire accompanying this Subscription Agreement) and
the undersigned’s total investment in the Company does not exceed ten percent (10%) of the undersigned’s net worth
or joint net worth with the undersigned’s spouse.

 

4. The undersigned
understands that the investment in the Company involves substantial risks and acknowledges that he, she, or it is fully cognizant
of and understands all of the risk factors relating to the purchase of the Common Shares, including, without limitation, those
risks set forth in the SEC Reports and in Exhibit C attached hereto.

 

5. The undersigned
understands that the Common Shares are “restricted securities” and have not been registered under the Securities Act
or any applicable state securities law and is acquiring the Common Shares as principal for its own account and not with a view
to or for distributing or reselling such Common Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, has no present intention of distributing any of such Common Shares in violation of the Securities Act or
any applicable state securities law, and has no direct or indirect arrangement or understandings with any other persons to distribute
or regarding the distribution of such Common Shares in violation of the Securities Act or any applicable state securities law.
The undersigned is acquiring the Common Shares hereunder in the ordinary course of his, her or its business.

 

6. The undersigned
understands that the Common Shares have not been registered with or reviewed by the United States Securities and Exchange Commission
(“SEC”) and have not been filed with or reviewed by any state securities administrators because of the private
or limited nature of the Offering.

 

    2

     

    

 

7. The undersigned
understands that neither the Offering nor the sale of the Common Shares has been registered under the Securities Act in reliance
upon an exemption therefrom. The undersigned understands that the Common Shares must be held indefinitely unless the sale or other
transfer thereof is subsequently registered under the Securities Act or an exemption from such registration is available. The undersigned
further understands that the Company is under no obligation to register the Common Shares on his, her or its behalf or to assist
him, her, or it in complying with any exemption from registration.

 

8. All information
that the undersigned has provided to the Company in the Investor Questionnaire and “Bad Actor” Questionnaire or otherwise
concerning himself, herself or itself, his, her, or its residency, investor status, financial position and knowledge and experience
in financial, tax, and business matters is correct and complete as of the date set forth at the end hereof, and if there should
be any adverse change in such information prior to acceptance of his, her or its subscription, the undersigned will immediately
provide the Company with such information.

 

9. The undersigned,
if a corporation, partnership, limited liability company, trust, or other entity, is authorized and otherwise duly qualified to
purchase and hold the Common Shares; such entity has its principal place of business as set forth on the signature page hereof;
and, such entity has not been formed for the specific purpose of acquiring Common Shares.

 

10. The execution and
performance hereof violates no order, judgment, injunction, agreement, or controlling document to which the undersigned is bound.
If an entity, (i) the undersigned is duly organized, validly existing, and in good standing under the laws of the jurisdiction
in which it has been formed; (ii) the undersigned has the right and power under its organizational documents to execute, deliver,
and perform its obligations hereunder; (iii) this Subscription Agreement has been duly authorized by all necessary action on the
part of all officers, directors, partners, stockholders, and trustees, and will not violate any agreement to which the undersigned
is a party; and (iv) the individual executing and delivering this Subscription Agreement has the requisite right, power, capacity,
and authority to do so on behalf of its organization.

 

11. The undersigned
represents and warrants that: (i) the undersigned has a prior substantial pre-existing relationship with the Company, the undersigned
is not investing in the Offering in connection with or as a result of any registration statement on Form S-1, filed with the SEC
by the Company, and (ii) no Securities were offered or sold to it by means of any form of general solicitation or general advertising,
and in connection therewith, the undersigned did not (A) receive or review any advertisement, article, notice, or other communication
published in a newspaper or magazine or similar media or broadcast over television or radio, whether closed circuit, or generally
available; or (B) attend any seminar meeting or industry investor conference whose attendees were invited by any general solicitation
or general advertising; or (C) observe any website or filing of the Company with the SEC in which any offering of securities by
the Company was described and as a result learned of any offering of securities by the Company.

 

    3

     

    

 

12. The undersigned
understands and agrees that the Company, in its sole discretion, reserves the right to accept or reject this or any other subscription
for Common Shares, in whole or in part.

 

B. Representations
and Warranties of the Company.

 

1. The Company is a
corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. The Company has the
requisite corporate power and authority to own and operate its properties and assets, to carry on its business as presently conducted,
to execute and deliver this Subscription Agreement, to issue and sell the Common Shares, and to perform its obligations pursuant
to this Subscription Agreement and the Company’s certificate of incorporation, as amended to date (the “Certificate
of Incorporation”). The Company is presently qualified to do business as a foreign corporation in each jurisdiction where
the failure to be so qualified could reasonably be expected to have a material adverse effect on the Company’s financial
condition or business as now conducted (a “Material Adverse Effect”).

 

2. The Common Shares,
when issued and delivered and paid for in compliance with the provisions of this Subscription Agreement, will be validly issued,
fully paid, and nonassessable. The Common Shares will be free of any liens or encumbrances, other than any liens or encumbrances
created by or imposed upon the investors; provided, however, that the Common Shares are subject to restrictions on
transfer under federal and/or state securities laws and as set forth herein.

 

3. All corporate action
on the part of the Company and its directors, officers, and stockholders necessary for the authorization, execution, and delivery
of the Subscription Agreement by the Company, the authorization, sale, issuance, and delivery of the Common Shares, and the performance
of all of the Company’s obligations under the Subscription Agreement has been taken or will be taken prior to the issuance
of the Common Shares. This Subscription Agreement, when executed and delivered by the Company, shall constitute valid and binding
obligations of the Company, enforceable in accordance with their terms, except (i) as limited by laws of general application relating
to bankruptcy, insolvency, and the relief of debtors and (ii) as limited by rules of law governing specific performance, injunctive
relief, or other equitable remedies and by general principles of equity.

 

4. The Company has
good and marketable title to its properties and assets, and has good title to all its leasehold interests, in each case subject
to no material mortgage, pledge, lien, lease, encumbrance, or charge, other than (i) liens for current taxes not yet due and payable,
(ii) liens imposed by law and incurred in the ordinary course of business for obligations not past due, (iii) liens in respect
of pledges or deposits under workers’ compensation laws or similar legislation, and (iv) liens, encumbrances, and defects
in title which do not in any case materially detract from the value of the property subject thereto or have a Material Adverse
Effect, and which have not arisen otherwise than in the ordinary course of business.

 

    4

     

    

 

5. The Company is not
in violation of any material term of its Certificate of Incorporation or bylaws, as amended to date (the “Bylaws”),
or, to the Company’s knowledge, in any material respect of any term or provision of any material indebtedness, contract or
agreement to which it is party which would have a Material Adverse Effect. To the Company’s knowledge, the Company is not
in violation of any federal or state statute, rule, or regulation applicable to the Company the violation of which would have a
Material Adverse Effect. The execution and delivery of this Subscription Agreement by the Company, the performance by the Company
of its obligations pursuant to this Subscription Agreement, and the issuance of the Common Shares, will not result in any material
violation of, or materially conflict with, or constitute a material default under each of the Certificate of Incorporation or Bylaws.

 

The foregoing representations
and warranties are true and accurate as of the date hereof and shall be true and accurate as of the date of the Company’s
execution of the signature page hereof. If those representations and warranties shall not be true and accurate in all material
respects prior to the Company’s execution of the signature page hereof, the Company shall immediately give written notice
to the undersigned specifying which representation and warranties are not so true and accurate in all material respects and the
reason therefor.

 

C. Restrictions on
Transfer and Additional Agreements.

 

1. Securities Laws.
The Common Shares have not been registered under the Securities Act nor under any state securities laws and unless so registered
may not be transferred, sold, pledged, hypothecated, or otherwise disposed of unless an exemption from such registration is available.
Such transfer may be made only, if requested by the Company, upon receipt by the Company of an opinion of counsel to the undersigned,
reasonably acceptable to the Company, to the effect that the proposed transfer will not violate the provisions of the Securities
Act, or the rules and regulations promulgated under such act.

 

2. Indemnity.
The undersigned acknowledges that the undersigned understands the meaning and legal consequences of this Section C, and the undersigned
hereby agrees to indemnify and hold harmless the Company, its representatives, and each officer and director thereof from and against
any and all loss, damage, or liability (including all attorneys’ fees and costs incurred in enforcing this indemnity provision)
due to or arising out of (a) the inaccuracy of any representation or the breach of any warranty of the undersigned contained in,
or any other breach of, this Subscription Agreement, (b) any transfer of the Common Shares in violation of the Securities Act or
the securities or “blue sky” laws of any state or other jurisdiction, or the rules and regulations promulgated under
such act or laws, (c) any transfer of the Common Shares not in accordance with this Subscription Agreement, or (d) any untrue statement
or omission to state any material fact in connection with the representations and warranties of the investor or with respect to
the facts and representations supplied by the undersigned to counsel to the Company upon which its opinion as to a proposed transfer
shall have been based.

 

3. Legend and Stop
Transfer Orders. Unless the Common Shares have been registered under the Securities Act, upon the issuance of the Common Shares,
the Company shall instruct its transfer agent to enter stop transfer orders with respect to such Common Shares and all certificates
representing the Common Shares shall bear on the face thereof substantially the following legend, and any other legend deemed appropriate
by counsel to the Company:

 

“The Shares
represented by this certificate have not been registered under the Securities Act of 1933, as amended, or under any state law and,
except pursuant to an effective registration statement under such Act and other laws, may not be offered, sold, transferred, or
otherwise disposed of without an opinion of counsel, satisfactory to the Company, that such disposition may be made without such
registration.”

 

    5

     

    

 

D. Miscellaneous.

 

1. The undersigned
agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder’s
or broker’s fee arising out of this Offering (and the costs and expenses of defending against such liability or asserted
liability) for which the undersigned or any of its representatives is responsible.

 

2. The undersigned
agrees not to transfer or assign this Subscription Agreement, or any of the undersigned’s interest herein, and further agrees
that the transfer or assignment of the Common Shares acquired pursuant hereto shall be made only in accordance with the conditions
and restrictions contained herein, and in all applicable laws and regulations.

 

3. All statements,
representations, warranties, covenants, and agreements in this Subscription Agreement shall be binding on the parties hereto and
shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Subscription
Agreement shall be construed to create any rights or obligations except among the parties hereto, and no person or entity shall
be regarded as a third-party beneficiary of this Subscription Agreement.

 

4. The undersigned
agrees that the undersigned may not cancel, terminate, or revoke this Subscription Agreement or any agreement of the undersigned
made hereunder, except as otherwise specifically provided herein, and that this Subscription Agreement shall survive the death
or disability of the undersigned and shall be binding upon the undersigned’s heirs, executors, administrators, successors,
and assigns.

 

5. Any of the representations,
warranties, acknowledgments, or agreements made herein by the undersigned notwithstanding, the undersigned does not hereby or in
any other manner waive any rights granted to the undersigned under federal or state securities laws.

 

6. This Subscription
Agreement constitutes the entire agreement between the Company and the undersigned with respect to the subject matter hereof and
may be amended only by a writing executed by the Company and the undersigned.

 

7. This Subscription
Agreement shall be enforced, governed, and construed in all respects in accordance with the laws of the State of Delaware, without
regard to conflict of laws provisions that would require the application of the laws of another jurisdiction, and the securities
laws of the United States of America.

 

8. Within ten (10)
business days after receipt of a written request from the Company, the undersigned agrees to provide such information and to execute
and deliver such documents as reasonably may be necessary to comply with any and all laws, rules, and regulations to which the
Company is subject.

 

    6

     

    

 

9. The representations
and warranties of the undersigned set forth herein shall survive the sale of the Common Shares pursuant to this Subscription Agreement.

 

10. Any notice or other
communication given hereunder shall be in writing and sent (a) by email (receipt confirmed), (b) by a recognized overnight delivery
service (charges prepaid), or (c) by messenger, addressed to ANDOVER NATIONAL CORPORATION, 333 Avenue of the Americas, Suite 2000,
Miami, Florida 33131-2185, Attention: Investor Relations, Email: IR@andovernational.com, with a copy to Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C., 666 Third Avenue, New York, New York 10017, Attention: Kenneth R. Koch, Esq and Daniel A. Bagliebter,
Esq., Email: krkoch@mintz.com and dabagliebter@mintz.com. Notices shall be deemed given only when received.

 

11. The terms and provisions
of this Subscription Agreement may be waived, or consent for the departure therefrom granted, only by written document executed
by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute
a waiver or consent with respect to any other terms or provisions of this Subscription Agreement, whether or not similar. Each
such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not
constitute a continuing waiver or consent.

 

12. The parties hereto
acknowledge and agree that: (i) each party has had the opportunity to have counsel review the terms and provisions of this Subscription
Agreement; (ii) the rule of construction to the effect that any ambiguities are resolved against the drafting party shall not be
employed in the interpretation of this Subscription Agreement; and (iii) the terms and provisions of this Subscription Agreement
shall be construed fairly as to the parties hereto and not in favor of or against any party, regardless of which party was generally
responsible for the preparation of this Subscription Agreement. Whenever used herein, the singular number shall include the plural,
the plural shall include the singular, the use of any gender shall include all persons.

 

13. The headings and
captions of the various subdivisions of this Subscription Agreement are for convenience of reference only and shall in no way modify
or affect the meaning or construction of any of the terms or provisions hereof.

 

14. Each of the parties
hereto shall pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers, or others engaged by
such party) in connection with this Subscription Agreement and the transactions contemplated hereby whether or not the transactions
contemplated hereby are consummated.

 

15. This Subscription
Agreement may be executed in counterparts. Upon the execution and delivery of this Subscription Agreement by the undersigned, this
Subscription Agreement shall become an irrevocable binding obligation of the undersigned with respect to the purchase of Common
Shares as herein provided, except as may otherwise be provided herein, subject, however, to the right hereby reserved to the Company
to enter into the same agreements with other investors.

 

[Remainder of page intentionally
left blank]

 

    7

     

    

 

E. Subscription.

 

The undersigned hereby
subscribes for _________________ Common Shares in the Company for an aggregate purchase price of $_________________ ($11.00 per
share) in accordance with the terms of the Subscription Agreement.

 

F. Form of Ownership.
Please indicate the form of ownership you desire.

 

	_______	 	Individual or entity or trust (one signature required, unless otherwise required by organization documents)
	 	 	 
	_______	 	Joint Tenants with right of survivorship (both parties must sign) Tenants-in-Common (all parties must sign)
	 	 	 
	_______	 	Community Property (one signature required if Common Shares held in one name, i.e., ranging spouse; two signatures required if Common Shares are held in both names)

 

__________________________________________________

Please PRINT here the
exact name(s) in which you wish the Common Shares registered.

 

__________________________________________________

 

	 	ACCEPTED
	 	 
	 	ANDOVER NATIONAL CORPORATION
	 	 
	 	By:	                                   
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:	 

 

Dated: ______________________,
2019

 

    8

     

    

 

SIGNATURE PAGE TO SUBSCRIPTION
AGREEMENT

 

FOR INDIVIDUALS

 

If the Common Shares
are to be owned by joint tenants or tenants-in-common, all tenants must sign. If the Common Shares are to be owned as community
property, one signature is required if they are to be held in one name and two signatures are required if they are to be held in
both names.

 

	Investor #1	 	Investor #2
	 	 	 
	 	 	 
	Signature	 	Signature
	 	 	 
	 	 	 
	Social Security Number	 	Social Security Number
	 	 	 
	 	 	 
	Print Name	 	Print Name
	 	 	 
	 	 	 
	E-mail Address	 	E-mail Address
	 	 	 
	Residence Address:	 	Residence Address:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Executed at:	 	Executed at:
	 	 	 
	 	 	 
	City	 	City
	 	 	 
	This ___ day of ______________, 2019	 	This ___ day of ______________, 2019

 

Mailing Address

(if different from residence
address):

 

	 	 
	 	 
	 	 

 

    9

     

    

 

SIGNATURE PAGE TO SUBSCRIPTION
AGREEMENT

 

FOR CORPORATE INVESTORS

 

Note: An
officer duly authorized to bind the corporation must sign and include copies of the corporation’s articles or certificate
of organization or incorporation and bylaws (and any amendments) and corporate resolutions or other documents authorizing the officer
to sign on behalf of the corporation, which copies must be certified by the corporate secretary or clerk as true and correct.

 

______________________________________

Exact Name of Corporation
(please print or type)

 

	By:  	 	 
	 	Signature of Authorized Officer	 

 

______________________________________

Signing Officer’s
Name and Title (please print or type)

 

	Taxpayer Identification No.:  	 	 
	 	 	 
	E-mail Address:	 	 
	 	 	 
	Address of Principal	 	 
	Corporate Offices:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Mailing Address:	 	 
	(if different):	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Attention:_________________	 

 

Executed at _______________________,
____________________

City                                        State

 

This ______ day of _____________,
2019.

 

    10

     

    

 

SIGNATURE PAGE TO SUBSCRIPTION
AGREEMENT

 

FOR PARTNERSHIP/LIMITED
LIABILITY COMPANY INVESTORS

 

Note: A partner,
manager or member duly authorized to bind the partnership or limited liability company must sign.

 

______________________________________

Exact Name of Corporation
(please print or type)

 

	By:		
	 	Signature of Authorized General Partner/Manager/Member	 

 

__________________________________________________________________

Name and Title of Signing
General Partner/Manager/Member (please print or type)

 

	Taxpayer Identification No.:  	 	 
	 	 	 
	E-mail Address:	 	 
	 	 	 
	Principal Business Offices:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Mailing Address:	 	 
	(if different):	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Attention:__________________	 

 

Executed at _______________________,
____________________

City                                        State

 

This ______ day of _____________,
2019.

 

    11

     

    

 

EXHIBIT A

 

INVESTOR QUESTIONNAIRE

 

    A-1

     

    

 

EXHIBIT B

 

“BAD ACTOR”
QUESTIONNAIRE

 

    B-1

     

    

 

EXHIBIT C

 

RISK FACTORS

 

 

C-1Exhibit

Exhibit 10.1
FIRST AMENDMENT TO LETTER OF CREDIT FACILITY AGREEMENT
This First Amendment to Letter of Credit Facility Agreement (this “Amendment”) is entered into as of December 9, 2019 by and among CAVELLO BAY REINSURANCE LIMITED as Borrower, ENSTAR GROUP LIMITED, KENMARE HOLDINGS LTD., ENSTAR (US ASIA-PAC) HOLDINGS LIMITED and ENSTAR HOLDINGS (US) LLC as Guarantors, the LENDERS party hereto, NATIONAL AUSTRALIA BANK LIMITED, LONDON BRANCH as Administrative Agent, and NATIONAL AUSTRALIA BANK LIMITED as Several L/C Issuing Bank.
RECITALS
A.    The Borrowers, the Guarantors, the Existing Lenders, the Administrative Agent and the Several L/C Issuing Bank are parties to that certain Letter of Credit Facility Agreement, dated as of August 5, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”, and as amended by this Amendment, the “Credit Agreement”), pursuant to which the Existing Lenders have agreed to issue syndicated Letters of Credit through the Several L/C Issuing Bank at the request of the Borrower. Each capitalized term used herein, that is not defined herein, shall have the meaning ascribed thereto in the Credit Agreement.
B.    The Credit Parties have notified the Several L/C Issuing Bank, the Administrative Agent and the Existing Lenders of their request to amend the Existing Credit Agreement as set forth below, but otherwise have the Existing Credit Agreement remain in full force and effect.
C.    In accordance with Section 10.02(b) of the Existing Credit Agreement, the Credit Parties, the Several L/C Issuing Bank, the Administrative Agent and the Required Lenders have agreed to amend the Existing Credit Agreement, in accordance with the terms, and subject to the conditions, set forth herein.
AGREEMENT
The parties to this Amendment, intending to be legally bound, hereby agree as follows:
1.    Definitions. As used in this Amendment: “Existing Lender” means each Lender who is a party to the Existing Credit Agreement; “Increasing Lender” means each Existing Lender whose Commitment shown on Schedule 2.01 attached hereto is greater than its Commitment set forth in Schedule 2.01 attached to the Existing Credit Agreement on the Closing Date; and “New Lender” means each institution named on Schedule 2.01 attached hereto as a Lender that is not an Existing Lender.
2.    Commitment Increase; Amended Schedule 2.01.
a.    Commitment Increase. Subject to satisfaction of the conditions precedent set forth in Section 6 below: (a) Schedule 2.01 attached to the Existing Credit Agreement shall be amended to read as set forth on Schedule 2.01 attached hereto, (b) each Increasing Lender agrees that its Commitment shall increase to the amount set forth opposite its name on Schedule 2.01 attached hereto, and (c) each New Lender agrees that it shall be a “Lender” under and as defined in the Credit Agreement and shall have a Commitment in the amount set forth opposite its name on the Schedule 2.01 attached hereto, in each case effective as of the Effective Date. 
b.    New Lenders. Each New Lender represents and agrees as follows: (i) it has received a copy of the Existing Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Amendment, (ii) it has, independently and without reliance upon the Administrative Agent, the Several L/C Issuing Bank, any other agent, any Lender or any arranger, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Amendment, (iii) it will perform in accordance with their terms all of the obligations which by the terms of the Credit Documents are required to be performed by it as a Lender, and (iv) it acknowledges that the Administrative Agent, the Several L/C Issuing Bank, and the Lenders assume no responsibility with respect to (a) any statements, warranties or representations made in or in connection with the Credit Agreement 

1

or any other Credit Document , (b) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Documents, (c) the financial condition of the Borrower, the Guarantors, any of their Subsidiaries or Affiliates or any other Person obligated in respect of any Credit Document, or (d) the performance or observance by the Borrower, the Guarantors, any of their Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Credit Document
3.    Amendments to Credit Agreement. Subject to satisfaction of the conditions precedent set forth in Section 6 below:
a.    The cover page of the Existing Credit Agreement is hereby amended by replacing “$600,000,000” with “$760,000,000”. 
b.    Section 1.01 of the Existing Credit Agreement is hereby amended by inserting the following definitions therein in proper alphabetical order:
“First Amendment” means that certain First Amendment to Letter of Credit Facility Agreement, dated as of the First Amendment Effective Date, by and among the Borrower, the Guarantors, the Lenders party thereto, the Administrative Agent and the Several L/C Issuing Bank.
“First Amendment Effective Date” means December 9, 2019. 
c.    The last sentence of the definition of “Commitment” in Section 1.01 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:
“The Commitments as of the First Amendment Effective Date are listed in Schedule 2.01.”
d.    The definition of “Arrangers' Fee Letters” in Section 1.01 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows: 
“Arrangers' Fee Letters” means the fee letters dated on or around the First Amendment Effective Date between the Parent and each Arranger.
e.    The definition of “Upfront Fee Letter” in Section 1.01 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows: 
“Upfront Fee Letter” means the Upfront Fee Letter dated the First Amendment Effective Date between the Administrative Agent and the Parent.
f.    Section 2.01(b) of the Existing Credit Agreement is hereby amended by replacing “Loan Document” with “Credit Document”.
g.    Section 2.14 of the Existing Credit Agreement is hereby amended by replacing “$75,000,000” with “$40,000,000” and “$25,000,000” with “$20,000,000”:
4.    Representations and Warranties. Each Credit Party hereby represents and warrants, as of the date of this Amendment, that:
a.    The representations and warranties in each Credit Document to which it is a party are true and correct in all material respects with the same effect as though made on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects on and as of such earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality or Material Adverse Effect in the text thereof;
b.    The execution and delivery of this Amendment has been duly authorized by all necessary organizational action of such Credit Party; this Amendment has been duly executed and delivered by such Credit Party and is a legal, valid and binding obligation of such Credit Party, enforceable in accordance with its terms, subject 

2

to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and to general principles of equity;
c.    The transactions contemplated by this Amendment (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect, (b) will not violate any Law applicable to such Credit Party, (c) will not violate or result in a default under any other material Contractual Obligation binding upon such Credit Party or affecting its assets, and (d) will not result in the creation or imposition of any Lien on any asset of such Credit Party; and
d.    No Default has occurred and is continuing or would result after giving effect to this Amendment.
5.    Ratification and Confirmation of Credit Documents.
a.    Except as expressly set forth herein, the execution, delivery and performance of this Amendment shall not alter, modify, amend, or in any way affect any of the terms, conditions, obligations, covenants, guarantees or agreements contained in the Existing Credit Agreement or any other Credit Document, and shall not operate as a waiver of any right, power, or remedy of the Administrative Agent, the Several L/C Issuing Bank or any Lender under the Existing Credit Agreement or any other Credit Document.
b.    Each Credit Party hereby acknowledges that it has read this Amendment and consents to the terms hereof, and hereby confirms and agrees that notwithstanding the effectiveness of this Amendment, the obligations of such Credit Party under the Credit Documents to which it is a party, including all guarantees thereunder, shall not be impaired or affected and such Credit Documents, including all guarantees thereunder, and all promissory notes and all other instruments, documents and agreements entered into by such Credit Party in connection with such Credit Documents are, and shall continue to be, in full force and effect and are hereby confirmed and ratified in all respects.
c.    Each Credit Party further agrees that nothing in the Credit Agreement, this Amendment or any other Credit Document shall be deemed to require the consent of such Credit Party to any future amendment to the Credit Agreement, except to the extent that the consent of such Credit Party to such amendment is expressly required under the Credit Agreement.
d.    Upon the effectiveness of this Amendment, each Existing Lender shall continue to be a party to the Credit Agreement as a Lender and each New Lender shall be a party to the Credit Agreement as a Lender.
6.    Effectiveness. This Amendment shall become effective on the date first written above (the “Effective Date”) only upon satisfaction of the following conditions precedent on or prior to such date unless otherwise waived in writing by the Required Lenders and the Administrative Agent:
a.    Amendment. The Administrative Agent shall have acknowledged receipt of a counterpart of this Amendment signed on behalf of each Credit Party and the Required Lenders.
b.    Upfront Fee Letter. The Administrative Agent shall have acknowledged receipt from each party thereto of a counterpart signed on behalf of such party of the Upfront Fee Letter.
c.    Supplement to Approved Beneficiary Side Letter. The Administrative Agent shall have acknowledged receipt from each party thereto of a counterpart signed on behalf of such party of a supplement to the Approved Beneficiary Side Letter in form and substance satisfactory to the Administrative Agent, the Several L/C Issuing Bank and each Lender.
d.    Arrangers' Fee Letters. Each Arranger shall have acknowledged receipt from each party thereto of a counterpart signed on behalf of such party of an Arrangers' Fee Letter in form and substance satisfactory to such Arranger. 
e.    Certificates.  The Administrative Agent shall have received such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Credit Party as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment (including provision of 

3

specimen signatures for all authorized signatories who will sign this Amendment or related documents on behalf of any Credit Party)
f.    Corporate Documents.  The Administrative Agent shall have received such other documents and certificates (including Organizational Documents, good standing certificates or their equivalent in each applicable jurisdiction and the Group Structure Chart) as the Administrative Agent may reasonably request relating to the organization, existence and good standing of each Credit Party and any other legal matters relating to each Credit Party, this Amendment or the transactions contemplated hereby.
g.    Opinions of Counsel.  The Administrative Agent shall have received an opinion of (i) Drinker Biddle & Reath LLP, New York and Delaware counsel to the Credit Parties, (ii) Carey Olsen Bermuda Limited, Bermuda counsel to the Administrative Agent, and (iii) Ashurst LLP, English counsel to the Administrative Agent, each addressed to the Finance Parties and dated the Effective Date, in form and substance satisfactory to the Administrative Agent (and the Administrative Agent hereby instructs such counsel to deliver such opinion to such Persons).
h.    Fees and Expenses.  Each Credit Party shall have paid all fees, costs and expenses (including all reasonable and documented legal fees and expenses) agreed in writing to be paid by it to the Finance Parties in connection herewith (including pursuant to the Fee Letters) to the extent due (and, in the case of expenses (including legal fees and expenses), to the extent that statements for such expenses shall have been delivered to the Borrower on or prior to the Effective Date).
i.    KYC Information.  Each Credit Party shall have provided to the Finance Parties such documentation and other information that the Finance Parties may reasonably require connection with applicable "know your customer" and anti-money-laundering rules and regulations, including the PATRIOT Act, and, in respect of any Credit Party that qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, a Beneficial Ownership Certificate in relation to such Credit Party.
j.    Government Approvals.  The Credit Parties shall have obtained all necessary authorizations from Governmental Authorities in connection with the entry into and performance of the transactions contemplated by this Amendment (and for the validity or enforceability of this Amendment).
k.    Officer's Certificate.  The Administrative Agent shall have received a certificate, dated the Effective Date and signed by a Responsible Officer of the Parent, confirming (x) satisfaction of the conditions set forth in this Section 6, (y) that the representations and warranties of each Credit Party set forth in this Amendment and in any other Credit Document are true and correct in all material respects (or, in the case of any such representation or warranty already qualified by materiality, in all respects) on and as of the Effective Date (or, in the case of any such representation or warranty expressly stated to have been made as of a specific date, as of such specific date) and (z) that no Default has occurred and is continuing.
l.    Amendments and Waivers.  The Administrative Agent shall have received evidence of amendments and/or waivers from the existing lenders and agents under the Revolving Credit Facility Documents, the Term Loan Credit Documents and the LC Credit Documents as may be necessary, in the opinion of the Administrative Agent, to permit the terms of this Amendment under such agreements.
m.    Other Documents.  The Administrative Agent shall have received such other authorizations or documents as the Administrative Agent or any Lender (through the Administrative Agent) may reasonably request in connection with the entry into and performance of the transactions contemplated by this Amendment or for the validity and enforceability of this Amendment.
7.    Miscellaneous. 
a.    The Credit Parties acknowledge and agree that the representations and warranties set forth herein are material inducements to the Administrative Agent and the Lenders to deliver this Amendment.
b.    This Amendment shall be binding upon and inure to the benefit of and be enforceable by the parties hereto, and their respective permitted successors and assigns.
c.    This Amendment is a Credit Document. Henceforth, this Amendment and the Credit Agreement shall be read together as one document and the Existing Credit Agreement shall be modified accordingly. No course 

4

of dealing on the part of the Administrative Agent, the Lenders or any of their respective officers, nor any failure or delay in the exercise of any right by the Administrative Agent or the Lenders, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right. The failure at any time to require strict performance by the Credit Parties of any provision of the Credit Documents shall not affect any right of the Administrative Agent or the Lenders thereafter to demand strict compliance and performance. Any suspension or waiver of a right must be in writing signed by an officer of the Administrative Agent and/or the Lenders, as applicable, pursuant to and in accordance with the Credit Documents, including, without limitation, Section 10.02 of the Credit Agreement. No other person or entity, other than the Administrative Agent and the Lenders, shall be entitled to claim any right or benefit hereunder, including, without limitation, the status of a third party beneficiary hereunder.
d.    This Amendment shall be governed by and construed in accordance with the laws of the State of New York without reference to conflicts of law rules. The provisions of Section 10.09 and Section 10.10 of the Credit Agreement apply to this Amendment mutatis mutandis as if they were incorporated herein.
e.    If any provision of this Amendment or any of the other Credit Documents shall be determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed therefrom, and the remaining parts shall remain in full force as though the invalid, illegal or unenforceable portion had never been a part thereof.
f.    This Amendment may be executed in any number of counterparts, including by electronic or facsimile transmission, each of which when so delivered shall be deemed an original, but all such counterparts taken together shall constitute but one and the same instrument.
[Remainder of page intentionally left blank.]

5

IN WITNESS WHEREOF, the Credit Parties, the Administrative Agent, the Several L/C Issuing Bank and the Required Lenders have caused this Amendment to be executed as of the date first written above.

CAVELLO BAY REINSURANCE LIMITED
as Borrower 

By _/s/ Duncan Scott____________________
Name: Duncan Scott
Title: Director

ENSTAR GROUP LIMITED
as a Guarantor

By _/s/ Guy Bowker_____________________
Name: Guy Bowker
Title: CFO

KENMARE HOLDINGS LTD.
as a Guarantor

By _/s/ Duncan Scott____________________
Name: Duncan Scott
Title: Director

ENSTAR (US ASIA-PAC) HOLDINGS LIMITED
as a Guarantor

By _/s/ Siobhan Hextall__________________
Name: Siobhan Hextall
Title: Director

ENSTAR HOLDINGS (US) LLC
as a Guarantor

By _/s/ Paul Brockman___________________
Name: Paul Brockman
Title: President and Chief Executive Officer

NATIONAL AUSTRALIA BANK LIMITED, LONDON BRANCH (ABN 12 004 044 937),
as Administrative Agent

By _/s/ Melisha Hughes__________________
Name: Melisha Hughes
Title: Head of Agency Services, Northern Hemisphere

NATIONAL AUSTRALIA BANK LIMITED (ABN 12 004 044 937),
as Several L/C Issuing Bank

By _/s/ Melisha Hughes__________________
Name: Melisha Hughes
Title: Head of Agency Services, Northern Hemisphere

NATIONAL AUSTRALIA BANK LIMITED
(ABN 12 004 044 937),
as a Lender

By _/s/ Carole Palmer____________________
Name: Carole Palmer
Title: Associate Director

THE BANK OF NOVA SCOTIA,
as a Lender 

By _/s/ Sunny Yang_____________________
Name: Sunny Yang
Title: Director

COMMONWEALTH BANK OF AUSTRALIA 
(ABN 48 123 123 124),
as a Lender 

By _/s/ Richard Braham__________________
Name: Richard Braham
Title: Director

BMO HARRIS BANK N.A.,
as a Lender 

By _/s/ Benjamin Mlot___________________
Name: Benjamin Mlot
Title: Director

COMMERZBANK AG NEW YORK BRANCH,
as a Lender 

By _/s/ Michael McCarthy_______________
Name: Michael McCarthy
Title: Managing Director

By _/s/ Barry S. Feigenbaum_____________
Name: Barry S. Feigenbaum
Title: Managing Director

ING BANK N.V., LONDON BRANCH,
as a Lender 

By _/s/ Nick Marchant___________________
Name: Nick Marchant
Title: Director

By _/s/ Carolyn Rajaratnam_______________
Name: Carolyn Rajaratnam
Title: Director

LANDESBANK BADEN-WÜRTTEMBERG, NEW YORK BRANCH,
as a Lender 

By _/s/ Julian Kamba____________________
Name: Julian Kamba
Title: Director

By _/s/ Leonard J. Crann_________________
Name: Leonard J. Crann
Title: General Manager

JPMORGAN CHASE BANK, N.A.,
as a Lender 

By _/s/ Hector J Varona________________________
Name: Hector J. Varona
Title: Executive Director

Schedule 2.01
Commitments and Lenders

	
		
	Name of Lender
	Commitment

	National Australia Bank Limited, London Branch
	$155,000,000

	The Bank of Nova Scotia
	$155,000,000

	Commonwealth Bank of Australia
	$100,000,000

	BMO Harris Bank N.A.
	$75,000,000

	Commerzbank AG New York Branch
	$75,000,000

	ING Bank N.V., London Branch
	$75,000,000

	Landesbank Baden-Württemberg, New York Branch
	$75,000,000

	JPMorgan Chase Bank, N.A.
	$50,000,000

	TOTAL
	$760,000,000

Eligible Affiliates

None.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}]]