Document:

Exhibit 10.4

 

STOCK ESCROW AGREEMENT

 

This STOCK ESCROW AGREEMENT, dated as of
July 15, 2014 (this “Agreement”), is made by and among 1347 CAPITAL CORP., a Delaware corporation (“Company”),
1347 INVESTORS LLC, a Delaware limited liability company (the “Initial Stockholder”), and CONTINENTAL STOCK TRANSFER
& TRUST COMPANY, a New York corporation (“Escrow Agent”).

 

WHEREAS, the Company has entered into an
Underwriting Agreement, dated as of July 15, 2014 (the “Underwriting Agreement”), with EarlyBirdCapital, Inc. (“EBC”)
acting as representative of the several underwriters (collectively, the “Underwriters”), pursuant to which, among other
matters, the Underwriters have agreed to purchase 4,000,000 units (“Units”) of the Company, plus an additional 600,000
Units if the Underwriters exercise their over-allotment option in full. Each Unit consists of one share of common stock of the
Company, par value $0.0001 per share (“Common Stock”), one right (a “Right”) to receive one-tenth of one
share of Common Stock upon the Company’s initial business combination and one warrant (a “Warrant”) to purchase
one-half of one share of Common Stock, all as more fully described in the Company’s final Prospectus, dated July 15, 2014
(the “Prospectus”), comprising part of the Company’s Registration Statement on Form S-1 (File No. 333-195695)
under the Securities Act of 1933, as amended (the “Registration Statement”), declared effective on July 15, 2014 (the
“Effective Date”);

 

WHEREAS, the Initial Stockholder has agreed
as a condition of the sale of the Units to deposit the 1,150,000 shares of Common Stock held by the Initial Stockholder prior to
the Company’s initial public offering as set forth opposite its name in Exhibit A attached hereto (the “Escrow Shares”)
in escrow as hereinafter provided; and

 

WHEREAS, the Company and the Initial Stockholder
desire that the Escrow Agent accept the Escrow Shares, in escrow, to be held and disbursed as hereinafter provided.

 

IT IS AGREED:

 

		1.	Appointment of Escrow Agent. The Company and the Initial Stockholder hereby appoint the Escrow Agent to act in accordance
with and subject to the terms of this Agreement and the Escrow Agent hereby accepts such appointment and agrees to act in accordance
with and subject to such terms.

 

		2.	Deposit of Escrow Shares. On or before the Effective Date, the Initial Stockholder shall deliver to the Escrow Agent
certificates representing the Escrow Shares, together with applicable stock powers, to be held and disbursed subject to the terms
and conditions of this Agreement. The Initial Stockholder acknowledges that the certificate representing the Escrow Shares is legended
to reflect the deposit of such Escrow Shares under this Agreement.

 

		3.	Disbursement of the Escrow Shares.

 

		3.1.	The Escrow Agent shall hold the Escrow Shares during the period (the “Escrow Period”) commencing on the date hereof
and (i) for 50% of the Escrow Shares, ending on the earlier of (x) one year after the date of the consummation of the Company’s
initial business combination (as described in the Registration Statement, hereinafter a “Business Combination”), (y)
the date on which the closing price of the Company’s Common Stock equals or exceeds $12.50 per share (as adjusted for stock
splits, stock dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing
after the Company’s Business Combination and (z) the date of consummation of a Sale Transaction, and (ii) for the remaining
50% of the Escrow Shares, ending on the earlier of (x) one year after the date of the consummation of a Business Combination and
(y) the date of consummation of a Sale Transaction. For purposes hereof, a “Sale Transaction” means a liquidation,
merger, stock exchange or other similar transaction subsequent to the Company’s initial Business Combination which results
in all of the stockholders of the Company or such other entity surviving the Business Combination having the right to exchange
their shares of Common Stock for cash, securities or other property. The Company shall promptly provide notice of the consummation
of a Business Combination or a Sale Transaction to the Escrow Agent. Upon completion of the Escrow Period, the Escrow Agent shall
disburse the applicable amount of the Initial Stockholder’s Escrow Shares (and any applicable stock power) to such Initial
Stockholder. In addition, if the Escrow Agent is notified by the Company pursuant to Section 6.7 hereof that the Company is being
liquidated at any time during the Escrow Period, then the Escrow Agent shall destroy the certificates representing the Escrow Shares.
The Escrow Agent shall have no further duties hereunder after the disbursement of the Escrow Shares in accordance with this Section
3.

 

    	 

    	 

    

 

		3.2.	Notwithstanding Section 3.1, if the Underwriters do not exercise in full their over-allotment option to purchase an additional
600,000 Units of the Company within 45 days of the date of the Prospectus (as described in the Underwriting Agreement), the Initial
Stockholder agrees that the Escrow Agent shall return to the Company for cancellation, at no cost, the number of Escrow Shares
held by such holder determined by multiplying 150,000 by a fraction, (i) the numerator of which is 600,000 minus the number of
shares of Common Stock purchased by the Underwriters upon the exercise of their over-allotment option, and (ii) the denominator
of which is 600,000. The Company shall promptly provide notice to the Escrow Agent of the expiration or termination of the Underwriters’
over-allotment option and the number of Units, if any, purchased by the Underwriters in connection with their exercise thereof.

 

		4.	Rights of Initial Stockholder in Escrow Shares.

 

		4.1.	Voting Rights as a Stockholder. Subject to the terms of the Insider Letter described in Section 4.4 hereof and except
as herein provided, the Initial Stockholder shall retain all of its rights as a stockholder of the Company during the Escrow Period,
including, without limitation, the right to vote such shares.

 

		4.2.	Dividends and Other Distributions in Respect of the Escrow Shares. During the Escrow Period, all dividends payable in
cash with respect to the Escrow Shares shall be paid to the Initial Stockholder, but all dividends payable in stock or other non-cash
property (“Non-Cash Dividends”) shall be delivered to the Escrow Agent to hold in accordance with the terms hereof.
As used herein, the term “Escrow Shares” shall be deemed to include the Non-Cash Dividends distributed thereon, if
any.

 

		4.3.	Restrictions on Transfer. During the Escrow Period, the only permitted transfers of the Escrow Shares will be (i) to
the Company’s officers, directors, advisors and employees, (ii) as a distribution to partners, members or stockholders of
the Initial Stockholder upon the liquidation and dissolution of the Initial Stockholder, (iii) by bona fide gift to a member of
the Initial Stockholder’s immediate family or to a trust, the beneficiary of which is the Initial Stockholder or a member
of the Initial Stockholder’s immediate family for estate planning purposes, (iv) by virtue of the laws of descent and distribution
upon death, (v) pursuant to a qualified domestic relations order, (vi) by private sales at prices no greater than the price at
which the Escrow Shares were originally purchased or (vii) to the Company for cancellation as set forth in Section 3.2 hereof or
in connection with the consummation of a Business Combination, in each case, except for clause (vii), on the condition that such
transfers may be implemented only upon the respective transferee’s written agreement to be bound by the terms and conditions
of this Agreement and of the Insider Letter (as defined below) signed by the Initial Stockholder transferring the Escrow Shares.

 

		4.4.	Insider Letters. The Initial Stockholder has executed a letter agreement with the Company, dated as indicated on Exhibit
A hereto, and the form of which is filed as an exhibit to the Registration Statement (the “Insider Letter”), respecting
the rights and obligations of such Initial Stockholder in certain events, including but not limited to the liquidation of the Company.

 

		5.	Concerning the Escrow Agent.

 

		5.1.	Good Faith Reliance. The Escrow Agent shall not be liable for any action taken or omitted by it in good faith and in
the exercise of its own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand,
certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report or other
paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth
and acceptability of any information therein contained) which is believed by the Escrow Agent to be genuine and to be signed or
presented by the proper person or persons. The Escrow Agent shall not be bound by any notice or demand, or any waiver, modification,
termination or rescission of this Agreement unless evidenced by a writing delivered to the Escrow Agent signed by the proper party
or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall have given its prior written consent
thereto.

 

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		5.2.	Indemnification. The Escrow Agent shall be indemnified and held harmless by the Company from and against any expenses,
including counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or other proceeding
involving any claim which in any way, directly or indirectly, arises out of or relates to this Agreement, the services of the Escrow
Agent hereunder, or the Escrow Shares held by it hereunder, other than expenses or losses arising from the gross negligence or
willful misconduct of the Escrow Agent. Promptly after the receipt by the Escrow Agent of notice of any demand or claim or the
commencement of any action, suit or proceeding, the Escrow Agent shall notify the other parties hereto in writing. In the event
of the receipt of such notice, the Escrow Agent, in its sole discretion, may commence an action in the nature of interpleader in
an appropriate court to determine ownership or disposition of the Escrow Shares or it may deposit the Escrow Shares with the clerk
of any appropriate court or it may retain the Escrow Shares pending receipt of a final, non-appealable order of a court having
jurisdiction over all of the parties hereto directing to whom and under what circumstances the Escrow Shares are to be disbursed
and delivered. The provisions of this Section 5.2 shall survive in the event the Escrow Agent resigns or is discharged pursuant
to Sections 5.5 or 5.6 below.

 

		5.3.	Compensation. The Escrow Agent shall be entitled to compensation from the Company for all services rendered by it hereunder
as set forth in Exhibit B. The Escrow Agent shall also be entitled to reimbursement from the Company for all reasonable expenses
paid or incurred by it in the administration of its duties hereunder including, but not limited to, all counsel, advisors’
and agents’ fees and disbursements and all taxes or other governmental charges.

 

		5.4.	Further Assurances. From time to time on and after the date hereof, the Company and the Initial Stockholder shall deliver
or cause to be delivered to the Escrow Agent such further documents and instruments and shall do or cause to be done such further
acts as the Escrow Agent shall reasonably request to carry out more effectively the provisions and purposes of this Agreement,
to evidence compliance herewith or to assure itself that it is protected in acting hereunder.

 

		5.5.	Resignation. The Escrow Agent may resign at any time and be discharged from its duties as escrow agent hereunder by
its giving the other parties hereto written notice, and such resignation shall become effective as hereinafter provided. Such resignation
shall become effective at such time that the Escrow Agent shall turn over, to a successor escrow agent appointed by the Company,
the Escrow Shares held hereunder. If no new escrow agent is so appointed within the 60-day period following the giving of such
notice of resignation, the Escrow Agent may deposit the Escrow Shares with any court it reasonably deems appropriate.

 

		5.6.	Discharge of Escrow Agent. The Escrow Agent shall resign and be discharged from its duties as escrow agent hereunder
if so requested in writing at any time by the other parties hereto, jointly, provided, however, that such resignation shall become
effective only upon acceptance of appointment by a successor escrow agent as provided in Section 5.5.

 

		5.7.	Liability. Notwithstanding anything herein to the contrary, the Escrow Agent shall not be relieved from liability hereunder
for its own gross negligence or its own willful misconduct.

 

		5.8.	Waiver. The Escrow Agent hereby waives any right of set-off or any other right, title, interest or claim of any kind
(“Claim”) in, or to any distribution of, the Trust Account (as defined in that certain Investment Management Trust
Agreement, dated as of the date hereof, by and between the Company and the Escrow Agent as trustee thereunder) and hereby agrees
not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever.

 

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		6.	Miscellaneous.

 

		6.1.	Governing Law. This Agreement shall for all purposes be deemed to be made under and shall be construed in accordance
with the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application
of the substantive laws of another jurisdiction.

 

		6.2.	Third Party Beneficiaries. The Initial Stockholder hereby acknowledges that the Underwriters are third party beneficiaries
of this Agreement and that this Agreement may not be modified or changed without the prior written consent of EBC.

 

		6.3.	Entire Agreement. This Agreement contains the entire agreement of the parties hereto with respect to the subject matter
hereof and, except as expressly provided herein, may not be changed or modified except by an instrument in writing signed by the
party to the charged.

 

		6.4.	Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation thereof.

 

		6.5.	Binding Effect. This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their
legal representatives, successors and assigns.

 

		6.6.	Notices. Any notice or other communication required or which may be given hereunder shall be in writing and either be
delivered personally or be mailed, certified or registered mail, or by private national courier service, return receipt requested,
postage prepaid, and shall be deemed given when so delivered personally or, if mailed, two days after the date of mailing, as follows:

 

If to the Company, to:

 

1347 Capital Corp.

150 Pierce Road, 6th Floor

Itasca, IL 60143

Attn: Hassan R. Baqar, Chief Financial Officer and
Secretary

 

If to the Initial Stockholder, to its address set
forth on Exhibit A.

 

and if to the Escrow Agent, to:

 

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn: Chairman

 

A copy of any notice sent hereunder shall be sent
to:

 

EarlyBirdCapital, Inc.

275 Madison Avenue, 27th Floor

New York, New York 10016

Attn: Michael Powell, Managing Director

 

and:

 

McDermott Will & Emery LLP

340 Madison Avenue

New York, New York 10173

Attn: Joel L. Rubinstein

 

and:

 

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Graubard Miller

The Chrysler Building

405 Lexington Avenue

New York, New York 10174

Attn: David Alan Miller, Esq.

 

The parties may change the persons and addresses
to which the notices or other communications are to be sent by giving written notice to any such change in the manner provided
herein for giving notice.

 

		6.7.	Liquidation of the Company. The Company shall give the Escrow Agent written notification of the liquidation and dissolution
of the Company in the event that the Company fails to consummate a Business Combination within the time period specified in the
Prospectus.

 

[Signature Page Follows]

 

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WITNESS the execution of this Agreement
as of the date first above written.

 

	 	COMPANY:	 
	 	 	 
	 	1347 CAPITAL CORP.    	 
	 	 	 
	 	By: 	/s/ Gordon G. Pratt	 
	 	Name: 	Gordon G. Pratt	 
	 	Title: 	President, Chief Executive Officer and Director    
	 	 	 
	 	 	 
	 	INITIAL STOCKHOLDER:	 
	 	 	 
	 	1347 INVESTORS LLC	 
	 	 	 
	 	By: 	/s/ Hassan R. Baqar	 
	 	Name:	 Hassan R. Baqar	 
	 	Title: 	President	 
	 	 	 
	 	 	 
	 	ESCROW AGENT:  	 
	 	 	 
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY	 
	 	 	 
	 	By: 	/s/ Monty Harry	 
	 	Name: 	Monty Harry	 
	 	Title: 	Vice President	 

 

[Signature Page to Stock Escrow Agreement]

 

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EXHIBIT A

 

	
        Name and Address of

        Initial Stockholder
	
        Number

        of Shares
	
        Stock

        Certificate Number
	
        Date of

        Insider Letter

	
        1347 Investors LLC

        150 Pierce Road, 6th Floor

        Itasca, IL 60143
	1,150,000	1	July 15, 2014

 

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EXHIBIT B

 

ESCROW AGENT FEES

 

$200 escrow agent fee per month.

 

    	8Exhibit 10.5

 

PRIVATE UNITS PURCHASE AGREEMENT

 

THIS PRIVATE UNITS
PURCHASE AGREEMENT, dated as of July 15, 2014 (as it may from time to time be amended and including all exhibits referenced herein,
this “Agreement”), is entered into by and between 1347 Capital Corp., a Delaware corporation (the “Company”),
and 1347 Investors LLC, a Delaware limited liability company (the “Purchaser”).

 

The Company intends
to consummate an initial public offering (the “Public Offering”) of the Company’s units (the “Public Units”),
each Public Unit consisting of one share of the Company’s common stock, par value $0.0001 per share (a “Share”),
one right to receive one-tenth (1/10) of a Share automatically on the consummation of an initial business combination and one warrant
(a “Public Warrant”). Each Public Warrant entitles the holder thereof to purchase one-half of one Share. The Company
will not issue fractional Shares. As a result, holders of Public Warrants must exercise Public Warrants in multiples of two Public
Warrants, at a price of $11.50 per full Share, subject to adjustment as described in the prospectus associated with the Public
Offering, to validly exercise Public Warrants. The Purchaser has agreed to purchase an aggregate of 180,000 units (or 198,000 units
if the underwriters’ over-allotment option in connection with the Public Offering is exercised in full) (the “Private
Units”), each Private Unit consisting of one share of the Company’s common stock (a “Private Share”), one
right to receive one-tenth (1/10) of a Share automatically on the consummation of an initial business combination (a “Private
Right”) and one warrant (a “Private Warrant” and, together with the Private Units, Private Shares, Private Rights
and the Shares underlying the Private Warrants and Private Rights, the “Securities”). The Private Units are identical
to the Public Units, except that the Private Units may not be transferred, assigned or sold (except to certain permitted transferees,
provided the transferees agree to certain terms and restrictions, as described herein) until the completion of the Company’s
initial business combination. On the Closing Date, the Purchase Price (as defined below) for the Private Units will be deposited
in the trust account that will hold the proceeds of the Public Offering (the “Trust Account”).

 

NOW THEREFORE, in consideration
of the mutual promises contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Agreement hereby, intending legally to be bound, agree as follows:

 

AGREEMENT

 

Section 1. Authorization,
Purchase and Sale; Terms of the Private Units.

 

A. Authorization
of the Private Units. The Company has duly authorized the issuance and sale of the Private Units to the Purchaser.

 

B. Purchase and
Sale of the Private Units. On the date that the Public Offering is consummated or at such earlier time and date as may be mutually
agreed by the Purchaser and the Company (the “Closing Date”), the Company shall issue and sell to the Purchaser, and
the Purchaser shall purchase from the Company, the Private Units at a price of $10.00 per unit for an aggregate purchase price
of $1,800,000 (or $1,980,000 if the underwriters’ over-allotment option in connection with the Public Offering is exercised
in full) (the “Purchase Price”), which shall be paid by wire transfer of immediately available funds to Continental
Stock Transfer & Trust Company, acting as escrow agent in connection with the sale of the Private Units, at least 24 hours
prior to the date of the prospectus relating to the Public Offering, to hold in a non-interest bearing account until the Public
Offering is consummated. On the Closing Date, upon the deposit of the Purchase Price into the Trust Account by Continental Stock
Transfer & Trust Company, the Company shall deliver a certificate evidencing the Private Units duly registered in the Purchaser’s
name to the Purchaser.

 

    	 

    	 

    

 

C. Terms of the
Private Units.

 

(i) Each Private Unit
shall consist of one Private Share, one Private Right and one Private Warrant.

 

(ii) Each Private Warrant
shall have the terms set forth in a Warrant Agreement to be entered into by the Company and a warrant agent, in connection with
the Public Offering (the “Warrant Agreement”).

 

(iii) At the time
of the closing of the Public Offering, the Company and the Purchaser shall enter into a registration rights agreement (the “Registration
Rights Agreement”) pursuant to which the Company will grant certain registration rights to the Purchaser relating to the
Securities.

 

D. Restrictions
on Transfer. During the period commencing on the date of the closing of the Public Offering and ending on the date on which
the Company’ completes an initial business combination, the only permitted transfers of the Securities will be (i) to the
Company’s officers, directors, advisors and employees, (ii) as a distribution to partners, members or stockholders of the
Purchaser upon the liquidation and dissolution of the Purchaser, (iii) by bona fide gift to a member of the Purchaser’s immediate
family or to a trust, the beneficiary of which is the Purchaser or a member of the Purchaser’s immediate family for estate
planning purposes, (iv) by virtue of the laws of descent and distribution upon death of the Purchaser, (v) pursuant to a qualified
domestic relations order, (vi) by private sales at prices no greater than the price at which the Private Units were originally
purchased or (vii) to the Company for cancellation in connection with the consummation of the Company’s initial business
combination, in each case, except for clause (vii), on the condition that such transfers may be implemented only upon the respective
transferee’s written agreement to be bound by the terms and conditions of this Agreement and of the letter agreement between
the Purchaser and the Company signed by the Purchaser in connection with the Public Offering.

 

Section 2. Representations
and Warranties of the Company. As a material inducement to the Purchaser to enter into this Agreement and purchase the Private
Units, the Company hereby represents and warrants to the Purchaser (which representations and warranties shall survive the Closing
Date) that:

 

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A. Organization
and Corporate Power. The Company is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware 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 and
the Warrant Agreement.

 

B. Authorization;
No Breach.

 

(i) The execution,
delivery and performance of this Agreement and the Securities have been duly authorized by the Company as of the Closing Date.
This Agreement constitutes the valid and binding obligation of the Company, enforceable in accordance with its terms. Upon issuance
in accordance with, and payment pursuant to, the terms of the Warrant Agreement and this Agreement, the Securities will constitute
valid and binding obligations of the Company, enforceable in accordance with their terms as of the Closing Date.

 

(ii) The execution
and delivery by the Company of this Agreement and the Securities, the issuance and sale of the Securities and the fulfillment of
and compliance with the respective terms hereof and thereof by the Company, do not and will not as of the Closing Date (a) conflict
with or result in a breach of the terms, conditions or provisions of, (b) constitute a default under, (c) result in the creation
of any lien, security interest, charge or encumbrance upon the Company’s capital stock or assets under, (d) result in a violation
of, or (e) require any authorization, consent, approval, exemption or other action by or notice or declaration to, or filing with,
any court or administrative or governmental body or agency pursuant to the Certificate of Incorporation of the Company or the Bylaws
of the Company (in effect on the date hereof or as may be amended or adopted prior to completion of the contemplated Public Offering),
or any material law, statute, rule or regulation to which the Company is subject, or any agreement, order, judgment or decree to
which the Company is subject, except for any filings required after the date hereof under federal or state securities laws.

 

C. Title to Securities.
Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Warrant Agreement, the Securities will be duly
and validly issued, fully paid and nonassessable. Upon issuance in accordance with, and payment pursuant to, the terms hereof and
the Warrant Agreement, the Purchaser will have good title to the Securities, free and clear of all liens, claims and encumbrances
of any kind, other than (i) transfer restrictions hereunder and under the other agreements contemplated hereby, (ii) transfer restrictions
under federal and state securities laws, and (iii) liens, claims or encumbrances imposed due to the actions of the Purchaser.

 

D. Regulation D
Qualification. Neither the Company nor, to its knowledge, any of its affiliates, members, officers, directors or beneficial
shareholders of 20% or more of its outstanding securities, has experienced a disqualifying event as enumerated pursuant to Rule
506(d) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”).

 

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E. Governmental
Consents. No permit, consent, approval or authorization of, or declaration to or filing with, any governmental authority is
required in connection with the execution, delivery and performance by the Company of this Agreement or the consummation by the
Company of any other transactions contemplated hereby.

 

Section 3. Representations
and Warranties of the Purchaser. As a material inducement to the Company to enter into this Agreement and issue and sell the
Private Units to the Purchaser, the Purchaser hereby represents and warrants to the Company (which representations and warranties
shall survive the Closing Date) that:

 

A. Organization
and Requisite Authority. The Purchaser possesses all requisite power and authority necessary to carry out the transactions
contemplated by this Agreement.

 

B. Authorization;
No Breach.

 

(i) This Agreement
constitutes a valid and binding obligation of the Purchaser, enforceable in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other laws of general applicability relating to or affecting creditors’
rights and to general equitable principles (whether considered in a proceeding in equity or law).

 

(ii) The execution
and delivery by the Purchaser of this Agreement and the fulfillment of and compliance with the terms hereof by the Purchaser does
not and shall not as of the Closing Date conflict with or result in a breach by the Purchaser of the terms, conditions or provisions
of any agreement, instrument, order, judgment or decree to which the Purchaser is subject.

 

C. Investment Representations.

 

(i) The Purchaser is
acquiring the Securities for the Purchaser’s own account, for investment purposes only and not with a view towards, or for
resale in connection with, any public sale or distribution thereof.

 

(ii) The Purchaser
is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D under the Securities Act, and the
Purchaser has not experienced a disqualifying event as enumerated pursuant to Rule 506(d) of Regulation D under the Securities
Act.

 

(iii) The Purchaser
understands that the Securities are being offered and will be sold to it in reliance on specific exemptions from the registration
requirements of the United States federal and state securities laws and that the Company is relying upon the truth and accuracy
of, and the Purchaser’s compliance with, the representations and warranties of the Purchaser set forth herein in order to
determine the availability of such exemptions and the eligibility of the Purchaser to acquire such Securities.

 

(iv) The Purchaser
did not decide to enter into this Agreement as a result of any general solicitation or general advertising within the meaning of
Rule 502(c) under the Securities Act.

 

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(v) The Purchaser has
been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the
offer and sale of the Securities which have been requested by the Purchaser. The Purchaser has been afforded the opportunity to
ask questions of the executive officers and directors of the Company. The Purchaser understands that its investment in the Securities
involves a high degree of risk and it has sought such accounting, legal and tax advice as it has considered necessary to make an
informed investment decision with respect to the acquisition of the Securities.

 

(vi) The Purchaser
understands that no United States federal or state agency or any other government or governmental agency has passed on or made
any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities by the Purchaser
nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(vii) The Purchaser
understands that: (a) the Securities have not been and are not being registered under the Securities Act or any state securities
laws, and may not be offered for sale, sold, assigned or transferred unless (1) subsequently registered thereunder or (2) sold
in reliance on an exemption therefrom; and (b) except as specifically set forth in the Registration Rights Agreement, neither the
Company nor any other person is under any obligation to register the Securities under the Securities Act or any state securities
laws or to comply with the terms and conditions of any exemption thereunder. In this regard, the Purchaser understands that the
Securities and Exchange Commission (the “SEC”) has taken the position that promoters or affiliates of a blank check
company and their transferees, both before and after a business combination, are deemed to be “underwriters” under
the Securities Act when reselling the securities of a blank check company. Based on that position, Rule 144 adopted pursuant to
the Securities Act would not be available for resale transactions of the Securities, despite technical compliance with the requirements
of such Rule, and the Securities can be resold only through a registered offering or in reliance upon another exemption from the
registration requirements of the Securities Act.

 

(viii) The Purchaser
has such knowledge and experience in financial and business matters, knows of the high degree of risk associated with investments
in the securities of companies in the development stage such as the Company, is capable of evaluating the merits and risks of an
investment in the Securities and is able to bear the economic risk of an investment in the Securities in the amount contemplated
hereunder for an indefinite period of time. The Purchaser has adequate means of providing for its current financial needs and contingencies
and will have no current or anticipated future needs for liquidity which would be jeopardized by the investment in the Securities.
The Purchaser can afford a complete loss of its investment in the Securities.

 

Section 4. Conditions
of the Purchaser’s Obligations. The obligation of the Purchaser to purchase and pay for the Private Units is subject
to the fulfillment, on or before the Closing Date, of each of the following conditions:

 

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A. Representations
and Warranties. The representations and warranties of the Company contained in Section 2 shall be true and correct at and as
of the Closing Date as though then made.

 

B. Performance.
The Company shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before the Closing Date.

 

C. No Injunction.
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby, which prohibits the consummation of any of the transactions contemplated by this Agreement
or the Warrant Agreement.

 

D. Warrant Agreement.
The Company shall have entered into a Warrant Agreement with a warrant agent on terms satisfactory to the Purchaser.

 

Section 5. Conditions
of the Company’s Obligations. The obligations of the Company to the Purchaser under this Agreement are subject to the
fulfillment, on or before the Closing Date, of each of the following conditions:

 

A. Representations
and Warranties. The representations and warranties of the Purchaser contained in Section 3 shall be true and correct at and
as of the Closing Date as though then made.

 

B. Performance.
The Purchaser shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by the Purchaser on or before the Closing Date.

 

C. Corporate Consents.
The Company shall have obtained the consent of its Board of Directors authorizing the execution, delivery and performance of this
Agreement and the Warrant Agreement and the issuance and sale of the Private Units.

 

D. No Injunction.
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby, which prohibits the consummation of any of the transactions contemplated by this Agreement
or the Warrant Agreement.

 

E. Warrant Agreement.
The Company shall have entered into a Warrant Agreement with a warrant agent on terms satisfactory to the Purchaser.

 

Section 6. Termination.
This Agreement may be terminated at any time after November 1, 2014 upon the election by either the Company or the Purchaser upon
written notice to the other party if the closing of the Public Offering does not occur prior to such date.

 

    	6

    	 

    

 

Section 7. Survival
of Representations and Warranties. All of the representations and warranties contained herein shall survive the Closing Date.

 

Section 8. Definitions.
Terms used but not otherwise defined in this Agreement shall have the meaning assigned to such terms in the Registration Statement
on Form S-1 (File No. 333-195695) that the Company filed with the SEC on May 5, 2014, as amended.

 

Section 9. Miscellaneous.

 

A. Successors and
Assigns. Except as otherwise expressly provided herein, all covenants and agreements contained in this Agreement by or on behalf
of any of the parties hereto shall bind and inure to the benefit of the respective successors of the parties hereto whether so
expressed or not. Notwithstanding the foregoing or anything to the contrary herein, the parties may not assign this Agreement,
other than assignments by the Purchaser to affiliates thereof (including, without limitation, one or more of its members).

 

B. Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.

 

C. Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, none of which need contain the signatures of more than
one party, but all such counterparts taken together shall constitute one and the same agreement.

 

D. Descriptive Headings;
Interpretation. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a substantive
part of this Agreement. The use of the word “including” in this Agreement shall be by way of example rather than by
limitation.

 

E. Governing Law.
This Agreement shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be construed
in accordance with the internal laws of the State of Delaware.

 

F. Amendments.
This Agreement may not be amended, modified or waived as to any particular provision, except by a written instrument executed by
all parties hereto.

 

[Signature page follows]

 

 

    	7

    	 

    

 

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement to be effective as of the date first set forth above.

 

	 	COMPANY:
	 	 	 
	 	 	 
	 	
        1347 CAPITAL CORP. 

	 	 	 
	 	 	 
	 	 	 
	 	By: 	 /s/ Gordon Pratt
	 	Name: Gordon Pratt
	 	Title: President, Chief Executive Officer and Director
	 	 	 
	 	 	 
	 	PURCHASER:
	 	 
	 	 	 
	 	1347 INVESTORS LLC
	 	 	 
	 	 	 
	 	 	 
	 	
        

        By:
	
        /s/ Hassan R. Baqar

	 	Name: Hassan R. Baqar 
	
         
	Title: President
	

 

 

 

 

 

 

 

[Signature Page to Private Units Purchase Agreement]

 

    	8

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