Document:

Unassociated Document

 Exhibit 10.3 

 

  

 

 KORTH    NOTE    FOR  PURPOSES  OF  SECTIONS  1272,  1273  AND  1275  OF  THE  INTERNAL  REVENUE  CODE  OF  1986,  AS  AMENDED,  THIS  NOTE  IS  BEING  ISSUED  WITH  ORIGINAL  ISSUE DISCOUNT  BECAUSE  PAYMENTS  ON  THE  NOTE  ARE  DEPENDENT  ON  PAYMENTS ON  THE  CORRESPONDING  LOAN.  THE  ISSUE  PRICE  OF  THE  NOTE  IS  THE  STATED PRINCIPAL  AMOUNT  OF  THIS  NOTE,  AND  THE  ISSUE  DATE  IS  THE  ORIGINAL  ISSUE DATE.  UPON  REQUEST,  THE  COMPANY  WILL  PROMPTLY  MAKE  AVAILABLE  TO THE  HOLDER  THE  AMOUNT  OF  OID  AND  YIELD  TO  MATURITY  OF  THIS  NOTE.  A HOLDER  SHOULD  CONTACT  J.  W.  KORTH  AT  800  454  1628  FOR  ANY  TRANSFER,  PLEDGE  OR  OTHER  USE  OF  THIS  NOTE  FOR  VALUE  OR  OTHERWISE  BY  OR  TO  ANY PERSON  IS  WRONGFUL  UNLESS  (1)  SUCH  TRANSFER  IS  EFFECTED  ON  A  TRADING SYSTEM  THAT  IS  RECOGNIZED  BY  THE  COMPANY,  AND  (2)  THIS  NOTE  HAS  BEEN PRESENTED  BY  THE  REGISTERED  HOLDER  (AS  DEFINED  BELOW)  TO  THE  COMPANY  OR  ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER.   MORTGAGE  SECURED  NOTE  SERIES  NO.  KDM2018-N001PP  "Little  River"  KORTH  DIRECT  MORTGAGE  LLC    No.  001 CUSIP None HOLDER:  Korth  Family  Foundation  CORRESPONDING  LOAN:  KDM2018-L001  STATED  PRINCIPAL  AMOUNT  OF  THIS  NOTE:  U.S.  $  $1,850,000 AGGREGATE  PRINCIPAL  AMOUNT  OF  THIS  SERIES  OF  NOTES: U.S. $1,850,000  INTEREST  RATE:  6.50%  SERVICE  CHARGE:  0%  OF  ALL  LOAN  NET  INTEREST  PAYMENTS. ORIGINAL  ISSUE  DATE:  March  13,  2018  MATURITY  DATE:  April  1,  2023   EXTENSION  OF  MATURITY  DATE:  Each  Note  will  mature  on  the  Initial  Maturity  Date, unless  the  maturity  of  the  Note  is  extended  to  the  Final  Maturity  Date  subject  to  conditions described  below.  In  no  event  will  the  maturity  of  the  Notes  be  extended  beyond  the  Final Maturity  Date.   PAYMENT  DATES:  Subject  to  the  limitations  on  payment  described  below,  the  Company  will make  payments  of  principal  and  interest  on  or  before  the  fourth  Business  Day  following  receipt 

 

 

  of  any  Loan  Net  Payments  by  the  Company  in  accordance  with  the  payment  schedule  for  this  Note,  which  is  available  on  the  Holder's  account  page  at  www.lendingclub.com,  subject  to  prepayment  at  any  time  without  penalty.  Korth  Direct  Mortgage  LLC,  a  corporation  duly  organized  and  existing  under  the  laws  of  the  Florida  (herein  called  the  "Company"),  for  value  received,  hereby  promises  to  pay  to  the  person  identified  as  the  "Holder"  above  (the  "Holder"),  principal  and  interest  on  this  Note  in  U.S.  dollars  in  an  amount  equal  to  the  Holder's  equal  and  ratable  share  of  the  Loan  Net  Payments  on  each  Payment  Date  (in  accordance  with  the  payment  schedule  for  this  Note),  which  is  available  on  www.KDMinvestor.com  and  subject  to  prepayment)  until  the  Maturity  Date  or  such  later  date  if  Loan  Payments  are  collected  after  a  default  on  the  Loan  by  the  borrower.  For the  avoidance  of  doubt,  (1)  no  payments  of  principal  and  interest  on  this  Note  shall  be  payable unless  the  Company  has  received  Loan  Payments,  and  then  only  to  the  extent  of  Loan  Net  Payments  in  respect  of  those  Loan  Payments  related  to  the  Corresponding  Loan  identified  above  that  have  been  received  by  the  Company,  and  (2)  no  Holder  of  the  Note  shall  have  any recourse  against  the  Company  unless,  and  then  only  to  the  extent  that,  the  Company  has  failed  to pay  such  Holder  the  Loan  Net  Payments  or  otherwise  breached  a  covenant  in  the  Indenture  described  below  that  is  applicable  to  the  series  of  Notes  of  which  this  Note  forms  a  part.  Subject to  certain  exceptions  provided  in  the  Indenture  referred  to  below,  the  principal  and  interest  payable  on  any  Payment  Date  will  be  paid  to  the  person  in  whose  name  this  Note  is  registered  at the  close  of  business  on  the  Record  Date  next  preceding  such  Payment  Date  or  maturity  date.   "Record  Date"  shall  mean  the  second  Business  Day  immediately  preceding  each  Interest Payment  Date.  "Business  Day"  shall  mean  each  Monday,  Tuesday,  Wednesday,  Thursday  and  Friday  that is  not  a  day  on  which  the  Automated  Clearing  House  system  operated  by  the  U.S.  Federal  Reserve  Bank  (the  "ACH  System")  is  closed  and  (2)  not  a  day  on  which  banking  institutions  are authorized  or  obligated  by  law  or  executive  order  to  close  in  San  Francisco,  California  or  New York,  New  York.  If,  on  the  Maturity  Date,  any  principal  or  interest  payments  in  respect  of  the  Corresponding Loan  remain  due  and  payable  to  the  Company,  the  maturity  date  of  this  Note  will  be  extended  to the  date  we  receive  final  payment  on  the  Corresponding  Loan  identified  above.  If,  on  the  Maturity  Date,  no  principal  or  interest  payments  in  respect  of  the  Corresponding Loan  remain  due  and  payable  to  the  Company,  the  Note  will  mature  on  the  Maturity  Date  and  no Consumer  Loan  Net  Payments  that  the  Company  receives  in  respect  of  the  Corresponding  Consumer  Loan  after  such  Initial  Maturity  Date  shall  be  required  to  be  paid  to  the  Holder  of  the Note.  All  payments  of  principal  and  interest  on  this  Note  due  to  the  Holder  hereof  shall  be  made in  U.S.  dollars,  in  immediately  available  funds,  by  intra-institution  book  entry  transfer  to  the Holder's  designated  sub-account  in  the  trust  account  maintained  by  the  Company  at  JP  Morgan Chase,  or  such  alternate  account  of  the  Holder  designated  by  the  Trustee  in  accordance  with  the Indenture.   All  U.S.  dollar  amounts  used  in  or  resulting  from  the  calculation  of  amounts  due  in respect  of  this  Note  shall  be  rounded  to  the  nearest  cent  (with  one-half  cent  being  rounded upward).     2 

 

  If  an  Event  of  Default  described  in  Section  5.1(3)  or  (4)  of  the  Indenture  occurs  and  is  continuing,  the  unpaid  stated  principal  amount  hereof  will  become  and  be  immediately  due  and payable  in  the  manner,  with  the  effect  and  subject  to  the  conditions  provided  in  the  Indenture.   The  Indenture  contains  provisions  permitting  the  Company  and  the  Trustee,  with  the  consent of  the  holders  of  not  less  than  a  majority  in  aggregate  principal  amount  of  each  series  of  Notes affected  thereby,  at  the  time  Outstanding,  evidenced  as  provided  in  the  Indenture,  to  execute supplemental  indentures  adding  any  provisions  to  or  changing  in  any  manner  or  eliminating  any of  the  provisions  of  the  Indenture  or  of  any  indenture  supplemental  thereto  or  modifying  in  any  manner  the  rights  of  the  holders  of  this  Note;  provided,  however,  that  no  such supplemental  indenture  shall  (1)  change  the  Stated  Maturity  of  the  principal  of,  or  any  installment  of  principal  or  interest  on,  any  Note,  or  reduce  the  principal  amount  thereof  or  the rate  of  interest  thereon  that  would  be  due  and  payable  upon  a  declaration  of  acceleration  of  maturity  thereof  or  change  the  place  of  payment  where,  or  change  the  coin  or  currency  in  which, any  installment  of  principal  and  interest  on  any  such  Note  is  payable  or  impair  the  right  to  institute  suit  for  the  enforcement  of  any  such  payment  on  or  after  the  Stated  Maturity  thereof,  (2)  reduce  the  percentage  in  principal  amount  of  the  Outstanding  Notes,  the  consent  of  whose  Holders  is  required  for  any  such  amendment  or  supplemental  indenture,  or  the  consent  of  whose Holders  is  required  for  any  waiver  (of  compliance  with  certain  provisions  of  the  Indenture  or certain  defaults  thereunder  and  their  consequences)  with  respect  to  the  Notes,  or  (3)  modify  any of  the  provisions  of  Section  8.2,  Section  5.4  (clauses  (1)  and  (2))  or  Section  5.7  of  the  Indenture, except  to  increase  the  percentage  of  Outstanding  Notes  required  for  such  actions  to  provide  that certain  other  provisions  of  the  Indenture  cannot  be  modified  or  waived  without  the  consent  of  the Holder  of  each  Outstanding  Note  affected  thereby.  The  Indenture  also  contains  provisions  permitting  the  holders  of  a  majority  in  aggregate  principal  amount  of  the  Notes  of  all  affected series  at  the  time  outstanding,  on  behalf  of  the  holders  of  all  the  Notes  of  such  series,  to  waive, insofar  as  those  series  are  concerned,  compliance  by  the  Company  with  certain  provisions  of  the Indenture  and  certain  past  defaults  under  the  Indenture  and  their  consequences.  Any  such  consent by  the  Holder  of  this  Note  (unless  revoked  as  provided  in  the  Indenture)  shall  be  conclusive  and binding  upon  such  Holder  and  upon  all  future  holders  and  owners  of  this  Note  and  any  Notes which  may  be  issued  upon  the  registration  of  transfer  hereof  or,  irrespective  of  whether  or  not any  notation  thereof  is  made  upon  this  Note  or  other  such  Notes.  This  Note  is  not  entitled  to  any  sinking  fund.  This  Note  is  not  redeemable  at  the  option  of  the Holder.  The  Notes  are  in  registered  form  without  coupons  in  denominations  of  $1000  and  integral multiples  of  $1000  in  excess  thereof.  Upon  due  presentment  for  registration  of  transfer  of  this Note  at  the  office  or  agency  of  the  Company  in  Miami,  Florida  a  new  Note  or  Notes  in  authorized  denominations  in  Dollars  for  an  equal  aggregate  principal  amount  and  like  interest rate  and  maturity  will  be  issued  to  the  transferee  in  exchange  therefor,  subject  to  the  limitations provided  in  the  Indenture,  without  charge  except  for  (1)  any  stamp  tax  or  other  governmental charge  imposed  in  connection  therewith.  The  Company,  the  Trustee,  and  any  paying  agent  may  deem  and  treat  the  registered  Holder hereof  as  the  absolute  owner  of  this  Note  at  the  Holder's  address  as  it  appears  on  the  register books  of  the  Company  as  kept  by  the  Company  or  duly  authorized  agent  of  the  Company  (whether  or  not  this  Note  shall  be  overdue),  for  the  purpose  of  receiving  payment  of  or  on account  hereof  and  for  all  other  purposes,  and  neither  the  Company  nor  the  Trustee  nor  any paying  agent  shall  be  affected  by  any  notice  to  the  contrary.  All  payments  made  to  or  upon  the   3 

 

 

 

   order  of  such  registered  Holder  shall,  to  the  extent  of  the  sum  or  sums  paid,  effectively  satisfy and  discharge  liability  for  moneys  payable  on  this  Note.  No  recourse  under  or  upon  any  obligation,  covenant  or  agreement  contained  in  the  Indenture or  any  indenture  supplemental  thereto  or  in  any  Note,  or  because  of  any  indebtedness  evidenced thereby,  shall  be  had  against  any  incorporator,  or  against  any  past,  present  or  future  shareholder, officer  or  director,  as  such,  of  the  Company,  either  directly  or  through  the  Company,  under  any rule  of  law,  statute  or  constitutional  provision  or  by  the  enforcement  of  any  assessment  or  penalty  or  otherwise,  all  such  personal  liability  of  every  such  incorporator,  shareholder,  officer and  director,  as  such,  being  expressly  waived  and  released  by  the  acceptance  hereof  and  as  a condition  of  and  as  part  of  the  consideration  for  the  issuance  of  this  Note.   Unless  otherwise  defined  herein,  terms  used  herein  which  are  defined  in  the  Indenture  shall have  the  respective  meanings  assigned  thereto  in  the  Indenture.  To  the  extent  that  provisions contained  in  this  Note  are  inconsistent  with  the  provisions  set  forth  in  the  Indenture,  the  provisions  contained  herein  will  apply.  This  Note  shall  be  governed  by  and  construed  in  accordance  with  the  laws  of  the  State  of  New York  without  regard  to  any  principle  of  conflict  of  laws  that  would  require  or  permit  the  application  of  the  laws  of  any  other  jurisdiction.  This  Note  shall  not  be  valid  or  become  obligatory  for  any  purpose  until  the  Certificate  of Authentication  hereon  shall  have  been  signed  by  an  authorized  officer  of  the  Company  or  its duly  authorized  agent  under  the  Indenture  referred  to  above.  IN  WITNESS  WHEREOF,  KORTH  DIRECT  MORTGAGE  has  caused  this  instrument to  be  signed  by  its  duly  authorized  officers.   Dated:  KORTH  DIRECT MORTGAGE  LLC   By:  ame. Title: CERTIFICATE  OF  AUTHENTICATION  Dated:      'J  /,?_-• O  `P  ce)   o 0   This  is  one  of  the  Notes  of  the  series  of  Notes  designated  therein  referred  to  in  the  within- mentioned  Indenture.   KORTH  D  C  as  Authe ticatin   B  : ame: Title:  MORTGAGE  LLC, Agent  Pkc 0/2.-X4   4Exhibit 10.5

 

Twelve
Seas Investment Company

25/28
Old Burlington Street

Mayfair,
London W1S 3AN

United
Kingdom

 

December
11, 2017

 

Twelve
Seas Sponsors I LLC

25/28 Old Burlington Street

Mayfair,
London W1S 3AN

United
Kingdom

 

RE:         Securities
Subscription Agreement

 

Ladies
and Gentlemen:

 

Twelve
Seas Investment Company, a Cayman Islands exempted company (the “Company”), is pleased to accept the offer
Twelve Seas Sponsors I LLC, a Delaware limited liability company, (the “Subscriber” or “you”)
has made to subscribe for and purchase 4,312,500 of the Company’s ordinary shares (the “Shares”), $0.0001
par value per share (the “Ordinary Shares”), up to 562,500 of which are subject to complete or partial forfeiture
by you if the underwriters of the Company’s initial public offering (“IPO”) of units (“Units”)
do not fully exercise their over-allotment option (the “Over-allotment Option”).    The terms (this
“Agreement”) on which the Company is willing to sell the Shares to the Subscriber, and the Company and the
Subscriber’s agreements regarding such Shares, are as follows:

 

1.            Purchase
of Shares.

 

For
the sum of $25,000 (the “Purchase Price”), which the Company acknowledges receiving in cash, the Company hereby
sells and issues the Shares to the Subscriber, and the Subscriber hereby purchases and subscribes for the Shares from the Company,
subject to forfeiture, on the terms and subject to the conditions set forth in this Agreement.  Concurrently with the Subscriber’s
execution of this Agreement, the Company shall, at its option, deliver to the Subscriber a certificate registered in the Subscriber’s
name representing the Shares (the “Original Certificate”) or effect such delivery in book-entry form. 
All references in this Agreement to shares of the Company being forfeited shall take effect as surrenders for no consideration
of such shares as a matter of Cayman Islands law.

 

2.            Representations,
Warranties and Agreements.

 

2.1          Subscriber’s
Representations, Warranties and Agreements.  To induce the Company to issue the Shares to the Subscriber, the Subscriber
hereby represents and warrants to the Company and agrees with the Company as follows:

 

2.1.1       No
Government Recommendation or Approval.  The Subscriber understands that no federal or state agency has passed upon or
made any recommendation or endorsement of the offering of the Shares.

 

2.1.2       No
Conflicts.  The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (i) the formation and governing documents
of the Subscriber, (ii) any agreement, indenture or instrument to which the Subscriber is a party or (iii) any law,
statute, rule or regulation to which the Subscriber is subject, or any agreement, order, judgment or decree to which the
Subscriber is subject.

 

2.1.3       Organization
and Authority.  The Subscriber is a Delaware limited liability company, validly existing and in good standing under the
laws of Delaware and possesses all requisite power and authority necessary to carry out the transactions contemplated by this
Agreement.  Upon execution and delivery by you, this Agreement is a legal, valid and binding agreement of Subscriber, enforceable
against Subscriber in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally and subject to general principles
of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

    	 	1	 

    

    

 

2.1.4       Experience,
Financial Capability and Suitability.  Subscriber is:  (i) sophisticated in financial matters and is able to
evaluate the risks and benefits of the investment in the Shares and (ii) able to bear the economic risk of its investment
in the Shares for an indefinite period of time because the Shares have not been registered under the Securities Act (as defined
below) and therefore cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration
is available.  Subscriber is capable of evaluating the merits and risks of its investment in the Company and has the capacity
to protect its own interests.  Subscriber must bear the economic risk of this investment until the Shares are sold pursuant
to:  (i) an effective registration statement under the Securities Act or (ii) an exemption from registration available
with respect to such sale.  Subscriber is able to bear the economic risks of an investment in the Shares and to afford a
complete loss of Subscriber’s investment in the Shares.

 

2.1.5       Access
to Information; Independent Investigation.  Prior to the execution of this Agreement, the Subscriber has had the opportunity
to ask questions of and receive answers from representatives of the Company concerning an investment in the Company, as well as
the finances, operations, business and prospects of the Company, and the opportunity to obtain additional information to verify
the accuracy of all information so obtained.  In determining whether to make this investment, Subscriber has relied solely
on Subscriber’s own knowledge and understanding of the Company and its business based upon Subscriber’s own due diligence
investigation and the information furnished pursuant to this paragraph.  Subscriber understands that no person has been authorized
to give any information or to make any representations which were not furnished pursuant to this Section 2 and Subscriber
has not relied on any other representations or information in making its investment decision, whether written or oral, relating
to the Company, its operations and/or its prospects.

 

2.1.6       Regulation
D Offering.  Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of
Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) and acknowledges the sale
contemplated hereby is being made in reliance on a private placement exemption to “accredited investors” within the
meaning of Section 501(a) of Regulation D under the Securities Act or similar exemptions under state law.

 

2.1.7       Investment
Purposes.  The Subscriber is purchasing the Shares solely for investment purposes, for the Subscriber’s own account
and not for the account or benefit of any other person, and not with a view towards the distribution or dissemination thereof. 
The Subscriber did not decide to enter into this Agreement as a result of any general solicitation or general advertising within
the meaning of Rule 502 under the Securities Act.

 

2.1.8       Restrictions
on Transfer; Shell Company.  Subscriber understands the Shares are being offered in a transaction not involving a public
offering within the meaning of the Securities Act. Subscriber understands the Shares will be “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act and Subscriber understands that the certificates or book-entries
representing the Shares will contain a legend in respect of such restrictions.  If in the future the Subscriber decides to
offer, resell, pledge or otherwise transfer the Shares, such Shares may be offered, resold, pledged or otherwise transferred only
pursuant to:  (i) registration under the Securities Act, or (ii) an available exemption from registration. 
Subscriber agrees that if any transfer of its Shares or any interest therein is proposed to be made, as a condition precedent
to any such transfer, Subscriber may be required to deliver to the Company an opinion of counsel satisfactory to the Company. 
Absent registration or an exemption, the Subscriber agrees not to resell the Shares.  Subscriber further acknowledges that
because the Company is a shell company, Rule 144 may not be available to the Subscriber for the resale of the Shares until
one year following consummation of the initial business combination of the Company, despite technical compliance with the requirements
of Rule 144 and the release or waiver of any contractual transfer restrictions.

 

2.1.9       No
Governmental Consents.  No governmental, administrative or other third party consents or approvals are required, necessary
or appropriate on the part of Subscriber in connection with the transactions contemplated by this Agreement.

 

    	 	2	 

    

    

 

2.2          Company’s
Representations, Warranties and Agreements.  To induce the Subscriber to purchase the Shares, the Company hereby represents
and warrants to the Subscriber and agrees with the Subscriber as follows:

 

2.2.1       Incorporation
and Corporate Power.  The Company is a Cayman Islands exempted company and is qualified to do business in every jurisdiction
in which the failure to so qualify would reasonably be expected to have a material adverse effect on the financial condition,
operating results or assets of the Company.  The Company possesses all requisite corporate power and authority necessary
to carry out the transactions contemplated by this Agreement.

 

2.2.2       No
Conflicts.  The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (i) the Memorandum and Articles of Association
of the Company, (ii) any agreement, indenture or instrument to which the Company is a party or (iii) any law, statute,
rule or regulation to which the Company is subject, or any agreement, order, judgment or decree to which the Company is subject.

 

2.2.3       Title
to Shares.  Upon issuance in accordance with, and payment pursuant to, the terms hereof, and registration on the register
of members of the Company, the Shares will be duly and validly issued, fully paid and nonassessable.  Upon issuance in accordance
with, and payment pursuant to, the terms hereof the Subscriber will have or receive good title to the Shares, free and clear of
all liens, claims and encumbrances of any kind, other than (a) transfer restrictions hereunder and under the other agreements
to which the Shares may be subject, (b) transfer restrictions under federal and state securities laws, and (c) liens,
claims or encumbrances imposed due to the actions of the Subscriber.

 

2.2.4       No
Adverse Actions.  There are no actions, suits, investigations or proceedings pending, threatened against or affecting
the Company which:  (i) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated
by this Agreement or (ii) question the validity or legality of any transactions or seeks to recover damages or to obtain
other relief in connection with any transactions.

 

3.            Forfeiture
of Shares.

 

3.1          Partial
or No Exercise of the Over-allotment Option.  In the event the Over-allotment Option granted to the underwriters of the
IPO is not exercised in full, the Subscriber acknowledges and agrees that it (and, if applicable, any transferee of Shares) shall
forfeit any and all rights to such number of Shares (up to an aggregate of 562,500 Shares and pro rata based upon the percentage
of the Over-allotment Option exercised) such that immediately following such forfeiture, the Subscriber (and any such transferees)
will own an aggregate number of Shares (not including Ordinary Shares issuable upon exercise of any warrants or any securities
purchased by Subscriber in the IPO or in the aftermarket) equal to 20% of the issued and outstanding Ordinary Shares immediately
following the IPO.

 

3.2          Termination
of Rights as Shareholder.  If any of the Shares are forfeited in accordance with this Section 3, then after such
time the Subscriber (or successor in interest), shall no longer have any rights as a holder of such forfeited Shares, and the
Company shall take such action as is appropriate to cancel such forfeited Shares.

 

3.3          Share
Certificates.  In the event an adjustment to the Original Certificate, if any, is required pursuant to this Section 3,
then the Subscriber shall return such Original Certificate to the Company or its designated agent as soon as practicable upon
its receipt of notice from the Company advising Subscriber of such adjustment, following which a new certificate (the “New
Certificate”), if any, shall be issued in such amount representing the adjusted number of Shares held by the Subscriber. 
The New Certificate, if any, shall be returned to the Subscriber as soon as practicable.  Any such adjustment for any uncertificated
securities held by the Subscriber shall be made in book-entry form.

 

4.            Waiver
of Liquidation Distributions; Redemption Rights.

 

In
connection with the Shares purchased pursuant to this Agreement, the Subscriber hereby waives any and all right, title, interest
or claim of any kind in or to any distributions by the Company from the trust account which will be established for the benefit
of the Company’s public shareholders and into which substantially all of the proceeds of the IPO will be deposited (the
“Trust Account”), in the event of a liquidation of the Company upon the Company’s failure to timely complete
an initial business combination.  For purposes of clarity, in the event the Subscriber purchases securities in the IPO or
in the aftermarket, any Ordinary Shares so purchased shall be eligible to receive any liquidating distributions by the Company. 
However, in no event will the Subscriber have the right to redeem any Ordinary Shares held by it into funds held in the Trust
Account upon the successful completion of an initial business combination.

 

    	 	3	 

    

    

 

5.            Restrictions
on Transfer.

 

5.1          Securities
Law Restrictions.  In addition to any restrictions to be contained in that certain letter agreement (commonly known as
an “Insider Letter”) dated on or prior to the closing of the IPO by and between Subscriber and the Company,
Subscriber agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Shares unless, prior
thereto (a) a registration statement on the appropriate form under the Securities Act and applicable state securities laws
with respect to the Shares proposed to be transferred shall then be effective or (b) the Company has received an opinion
from counsel reasonably satisfactory to the Company, that such registration is not required because such transaction is exempt
from registration under the Securities Act and the rules promulgated by the Securities and Exchange Commission thereunder
and with all applicable state securities laws.

 

5.2          Lock-up. 
Subscriber acknowledges that the Shares will be placed into an escrow account maintained in New York, New York by Continental
Stock Transfer & Trust Company (“CST”), acting as escrow agent, and shall be subject to lock-up provisions (the
“Lock-up”) contained in that certain stock escrow agreement (the “Escrow Agreement”) to
be entered into as of, or prior to, the closing of the IPO by and between Subscriber and CST.  Pursuant to the Escrow Agreement,
Subscriber will agree not to sell, transfer, pledge, hypothecate or otherwise dispose of, except as permitted pursuant to the
Escrow Agreement (i) all or any part of 50% of the Shares until the earlier to occur of:  (A) one year after the completion
of the Company’s initial business combination or (B) the date on which the last sale price of the Ordinary Shares equals
or exceeds $12.50 per share (as adjusted for share splits, share capitalizations, reorganizations and recapitalizations) for any
20 trading days within any 30 trading day period commencing after the Company’s initial business combination, and (ii) all
or any part of the remaining 50% of the Shares until one year after the completion of the Company’s initial business combination. 
Notwithstanding the foregoing, if the Company consummates a subsequent liquidation, merger, stock exchange or other similar transaction
after its initial business combination that results in all of its shareholders having the right to exchange their Ordinary Shares
for cash, securities or other property, the foregoing restrictions will immediately expire so that the Subscriber may participate
in such transaction.

 

5.3          Restrictive
Legends.  All certificates representing the Shares shall have endorsed thereon legends substantially as follows:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS
AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND
SUCH LAWS WHICH, IN THE OPINION OF COUNSEL, IS AVAILABLE.”

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN ESCROW AGREEMENT AND MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF THE LOCKUP.”

 

5.4          Additional
Shares or Substituted Securities.  In the event of the declaration of a share dividend, the declaration of an extraordinary
dividend payable in a form other than Shares, a spin-off, a share split, an adjustment in conversion ratio, a recapitalization
or a similar transaction affecting the Company’s outstanding Ordinary Shares without receipt of consideration, any new,
substituted or additional securities or other property which are by reason of such transaction distributed with respect to any
Shares subject to this Section 5 or into which such Shares thereby become convertible shall immediately be subject to this
Section 5 and Section 3.  Appropriate adjustments to reflect the distribution of such securities or property shall
be made to the number and/or class of Ordinary Shares subject to this Section 5 and Section 3.

 

    	 	4	 

    

    

 

5.5          Registration
Rights.  Subscriber acknowledges that the Shares are being purchased pursuant to an exemption from the registration requirements
of the Securities Act and will become freely tradable only after certain conditions are met or they are registered pursuant to
a registration rights agreement to be entered into with the Company prior to the closing of the IPO (the “Registration Rights
Agreement”).

 

6.            Other
Agreements.

 

6.1          Further
Assurances.  Subscriber agrees to execute such further instruments and to take such further action as may reasonably
be necessary to carry out the intent of this Agreement.

 

6.2          Notices. 
All notices, statements or other documents which are required or contemplated by this Agreement shall be:  (i) in writing
and delivered personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic
transmission to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or
such other address or fax number as may be designated in writing by such party and (iii) by electronic mail, to the electronic
mail address most recently provided to such party or such other electronic mail address as may be designated in writing by such
party.  Any notice or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered
personally, on the business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one
(1) business day after delivery to an overnight courier service or five (5) days after mailing if sent by mail.

 

6.3          Entire
Agreement.  This Agreement, together with that certain Insider Letter to be entered into between Subscriber and the Company
and the Registration Rights Agreement, each substantially in the form to be filed as an exhibit to the Registration Statement,
embodies the entire agreement and understanding between the Subscriber and the Company with respect to the subject matter hereof
and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation,
warranty, covenant or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change
or restrict, the express terms and provisions of this Agreement.

 

6.4          Modifications
and Amendments.  The terms and provisions of this Agreement may be modified or amended only by written agreement executed
by all parties hereto.

 

6.5          Waivers
and Consents.  The terms and provisions of this 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 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.

 

6.6          Assignment. 
The rights and obligations under this Agreement may not be assigned by either party hereto without the prior written consent of
the other party.

 

6.7          Benefit. 
All statements, representations, warranties, covenants and agreements in this 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
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 Agreement.

 

6.8          Governing
Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and
governed by the laws of New York applicable to contracts wholly performed within the borders of such state, without giving effect
to the conflict of law principles thereof.

 

6.9          Severability. 
In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof, contained in
this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited to the extent
that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect.  In the event
that such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions of this Agreement
shall nevertheless remain in full force and effect.

 

    	 	5	 

    

    

 

6.10        No
Waiver of Rights, Powers and Remedies.  No failure or delay by a party hereto in exercising any right, power or remedy
under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power
or remedy of such party.  No single or partial exercise of any right, power or remedy under this Agreement by a party hereto,
nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any
other or further exercise thereof or the exercise of any other right, power or remedy hereunder.  The election of any remedy
by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies.  No notice
to or demand on a party not expressly required under this Agreement shall entitle the party receiving such notice or demand to
any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party giving
such notice or demand to any other or further action in any circumstances without such notice or demand.

 

6.11        Survival
of Representations and Warranties.  All representations and warranties made by the parties hereto in this Agreement or
in any other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution and delivery
hereof and any investigations made by or on behalf of the parties.

 

6.12        No
Broker or Finder.  Each of the parties hereto represents and warrants to the other that no broker, finder or other financial
consultant has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such a way as
to create any liability on the other.  Each of the parties hereto agrees to indemnify and save the other harmless from any
claim or demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming to
have been employed by or on behalf of such party and to bear the cost of legal expenses incurred in defending against any such
claim.

 

6.13        Headings
and Captions.  The headings and captions of the various subdivisions of this 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.

 

6.14        Counterparts. 
This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile
transmission or any other form of electronic delivery, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an
original thereof.

 

6.15        Construction. 
The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  If an ambiguity or question
of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption
or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision of this Agreement. 
The words “include,” “includes,” and “including” will be deemed to be
followed by “without limitation.”  Pronouns in masculine, feminine, and neuter genders will be construed
to include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the
context otherwise requires.  The words “this Agreement,” “herein,” “hereof,”
“hereby,” “hereunder,” and words of similar import refer to this Agreement as a whole and
not to any particular subdivision unless expressly so limited.  The parties hereto intend that each representation, warranty,
and covenant contained herein will have independent significance.  If any party hereto has breached any representation, warranty,
or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating
to the same subject matter (regardless of the relative levels of specificity) which such party hereto has not breached will not
detract from or mitigate the fact that such party hereto is in breach of the first representation, warranty, or covenant.

 

6.16        Mutual
Drafting.  This Agreement is the joint product of the Subscriber and the Company and each provision hereof has been subject
to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against any party hereto.

 

    	 	6	 

    

    

 

7.            Voting
and Tender of Shares.

 

Subscriber
agrees to vote the Shares in favor of an initial business combination that the Company negotiates and submits for approval to
the Company’s shareholders and shall not seek redemption with respect to any of the Shares.  Additionally, the Subscriber
agrees not to tender any Shares in connection with a tender offer presented to the Company’s shareholders in connection
with an initial business combination negotiated by the Company.

 

8.            Indemnification.

 

Each
party shall indemnify the other against any loss, cost or damages (including reasonable attorney’s fees and expenses) incurred
as a result of such party’s breach of any representation, warranty, covenant or agreement in this Agreement.

 

[Signature
Page Follows]

 

    	 	7	 

    

    

 

If
the foregoing accurately sets forth our understanding and agreement, please sign the enclosed copy of the Agreement and return
it to us.

 

	 	Very
    truly yours,
	 	 
	 	Twelve
    Seas Investment Company
	 	 	 
	 	By:	/s/
    Dimitri Elkin
	 	 	Name:
    Dimitri Elkin
	 	 	Title:
    Chief Executive Officer
	 	 	 
	 	Accepted
    and agreed, December 11, 2017
	 	 
	 	Twelve
    Seas Sponsors I LLC
	 	 	 
	 	By:	/s/
    Dimitri Elkin
	 	 	Name:
    Dimitri Elkin
	 	 	Title:
    Managing Member

 

[Signature
page to Subscription Agreement]

 

 

8

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