Exhibit 10.2


 


 


[_________], 2016


 


M III Acquisition Corp.


3 Columbus Circle, 15th Floor


New York, NY 10019


Attn: Mohsin Y. Meghji


 


Cantor Fitzgerald & Co.


499 Park Avenue


New York, New York 10022


 


	Re:	Initial Public Offering


 


Gentlemen:


 


This letter (this
“Letter Agreement”) is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting
Agreement”) proposed to be entered into by and between M III Acquisition Corp., a Delaware corporation (the “Company”),
and Cantor Fitzgerald & Co. as representative (the “Representative”) of the several underwriters
named therein (the “Underwriters”), relating to an underwritten initial public offering (the “Public
Offering”), of 17,500,000 of the Company’s units (the “Units”), each comprised of
one share of the Company’s Common Stock, par value $0.0001 per share (the “Common Stock”), and
one warrant (each, a “Warrant”). Each Warrant entitles the holder thereof to purchase one-half of one
share of Common Stock at a price of $5.75 per half share, subject to adjustment. The Units shall be sold in the Public Offering
pursuant to a registration statement on Form S-1 and prospectus (the “Prospectus”) filed by the Company
with the Securities and Exchange Commission (the “Commission”) and the Company shall apply to have the
Units listed on the Nasdaq Capital Market. Certain capitalized terms used herein are defined in Section 11 hereof.


 


In order to induce
the Company and the Underwriters to enter into the Underwriting Agreement and to proceed with the Public Offering and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, M III Sponsor I LLC and M III Sponsor
I LP (collectively, the “Sponsor”), the undersigned individuals, each of whom is a director or officer
to the Company (together with the Sponsor, each an “Insider” and collectively, the “Insiders”),
hereby agree with the Company as follows:


 


1. Each Insider agrees
that if the Company seeks stockholder approval of a proposed Business Combination, then in connection with such proposed Business
Combination, it, he or she shall (i) vote any shares of Common Stock owned by it, him or her in favor of such proposed Business
Combination and (ii) not redeem any shares of Common Stock owned by it, him or her in connection with such stockholder approval.
If the Company engages in a tender offer in connection with any proposed Business Combination, each Insider agrees that it, he
or she will not seek to sell its, his or her shares of Common Stock owned by it, him or her to the Company in connection with such
tender offer.


 


2. Each Insider agrees
that in the event that the Company fails to consummate a Business Combination (as defined in the Underwriting Agreement) within
the time period set forth in the Company’s amended and restated certificate of incorporation, as the same may be amended
from time to time, each Insider shall take all reasonable steps to cause the Company to (i) cease all operations except for
the purpose of winding up, (ii) as promptly as reasonably possible but not more than 10 business days thereafter redeem 100%
of the Common Stock sold as part of the Units in the Public Offering (the “Offering Shares”), at a per-share
price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest
shall be net of taxes payable and less up to $50,000 of interest to pay dissolution expenses), divided by the number of then outstanding
public shares, which redemption will completely extinguish Public Stockholders’ rights as stockholders (including the right
to receive further liquidation distributions, if any) and (iii) as promptly as reasonably possible following such redemption,
subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and
liquidate, subject in the cases of clauses (ii) and (iii) above to the Company’s obligations under Delaware law to provide
for claims of creditors and other requirements of applicable law. Each Insider agrees not to propose any amendment to the Company’s
amended and restated certificate of incorporation that would affect the substance or timing of the Company’s obligation to
redeem the Offering Shares in connection with a Business Combination or if the Company does not complete a Business Combination
within the time period then set forth in the Company’s amended and restated certificate of incorporation, unless the Company
provides its public stockholders with the opportunity to redeem their shares of Common Stock upon approval of any such amendment
at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest (which
interest shall be net of taxes payable), divided by the number of then outstanding public shares.


 




     


     


    

  


Each Insider acknowledges
that it, he or she has no right, title, interest or claim of any kind in or to any monies held in the Trust Account or any other
asset of the Company as a result of any liquidation of the Company and hereby waives any claim such Insider may have in the future
as a result of, or arising out of, any contracts or agreements with the Company and will not seek recourse against the Trust Fund
for any reason whatsoever except in each case with respect to the Insider’s right to a pro rata interest in the proceeds
held in the Trust Fund for any Offering Shares such Insider may hold.


 


3.   Subject
to the provisions set forth in paragraphs 7(a) and (b) below, during the period commencing on the effective date of the Underwriting
Agreement and ending 180 days after such date, the Sponsor and each Insider shall not (i) sell, offer to sell, contract or agree
to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly,
file (or participate in the filing of) a registration statement with the Commission or establish or increase a put equivalent position
or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder, with respect to any Units, shares of Common Stock,
Warrants or any securities convertible into, or exercisable, or exchangeable for, shares of Common Stock owned by it, if any, (ii)
enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
of any Units, shares of Common Stock, Warrants or any securities convertible into, or exercisable, or exchangeable for, shares
of Common Stock owned by it, if any, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise,
or (iii) publicly announce any intention to effect any transaction specified in clause (i) or (ii). The foregoing sentence shall
not apply to the registration of the offer and sale of Units contemplated by the Underwriting Agreement and the sale of the Units
to the Underwriters. The Sponsor and each of the Insiders acknowledges and agrees that, prior to the effective date of any release
or waiver, of the restrictions set forth in this paragraph 3 or paragraph 7 below, the Company shall announce the impending release
or waiver by press release through a major news service at least two business days before the effective date of the release or
waiver. Any release or waiver granted shall only be effective two business days after the publication date of such press release.
The provisions of this paragraph will not apply if (i) the release or waiver is effected solely to permit a transfer of securities
that is not for consideration and (ii) the transferee has agreed in writing to be bound by the same terms described in this Letter
Agreement to the extent and for the duration that such terms remain in effect at the time of the transfer.


 


4.  In the event
of the liquidation of the Trust Account, Mohsin Y. Meghji (the “Indemnitor”) agrees to indemnify and
hold harmless the Company against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited
to, any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, whether
pending or threatened, or any claim whatsoever) to which the Company may become subject as a result of any claim by (i) any
third party for services rendered or products sold to the Company or (ii) a prospective target business with which the Company
has entered into an acquisition agreement (a “Target”); provided, however, that
such indemnification of the Company by the Indemnitor shall apply only to the extent necessary to ensure that such claims by a
third party for services rendered (other than the Company’s independent public accountants) or products sold to the Company
or a Target do not reduce the amount of funds in the Trust Account to below (i) $10.00 per Offering Share or (ii) such lesser
amount per Offering Share held in the Trust Account due to reductions in the value of the trust assets as of the date of the liquidation
of the Trust Account, in each case, net of the amount of interest earned on the property in the Trust Account which may be withdrawn
to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust
Account and except as to any claims under the Company’s indemnity of the Underwriters against certain liabilities, including
liabilities under the Securities Act of 1933, as amended. In the event that any such executed waiver is deemed to be unenforceable
against such third party, the Indemnitor shall not be responsible to the extent of any liability for such third party claim. The
Indemnitor shall have the right to defend against any such claim with counsel of its choice reasonably satisfactory to the Company
if, within 15 days following written receipt of notice of the claim to the Indemnitor, the Indemnitor notifies the Company in writing
that it shall undertake such defense.


 




     


     


    

  


5. To the extent that
the Underwriters do not exercise their over-allotment option in full to purchase an additional 2,625,000 Units within 45 days from
the date of the Prospectus (and as further described in the Prospectus), the Sponsor agrees that it shall forfeit, at no cost,
a number of Founder Shares in the aggregate equal to 656,250 multiplied by a fraction, (i) the numerator of which is 2,625,000
minus the number of Units, if any, purchased by the Underwriters upon the exercise of their over-allotment option, and (ii) the
denominator of which is 2,625,000. The forfeiture will be adjusted to the extent that the over-allotment option is not exercised
in full by the Underwriters so that the stockholders prior to the Public Offering will own an aggregate of 20.0% of the Company’s
issued and outstanding shares of Common Stock after the Public Offering. The Sponsor further agrees that to the extent that the
size of the Public Offering is increased or decreased, the Company will purchase or sell shares of Common Stock or effect a stock
dividend or share contribution back to capital, as applicable, immediately prior to the consummation of the Public Offering in
such amount as to maintain the ownership of the stockholders prior to the Public Offering at 20.0% of its issued and outstanding
shares of Common Stock upon the consummation of the Public Offering. In connection with such increase or decrease in the size of
the Public Offering, then (A) the references to 2,625,000 in the numerator and denominator of the formula in the first sentence
of this paragraph shall be changed to a number equal to 15% of the number of shares included in the Units issued in the Public
Offering and (B) the reference to 656,250 in the formula set forth in the first sentence of this paragraph shall be adjusted to
such number of shares of the Common Stock that the Sponsor would have to return to the Company in order to hold (together with
all of the pre-Public Offering stockholders) an aggregate of 20.0% of the Company’s issued and outstanding shares after the
Public Offering.


 


6.   
Each officer of the Company agrees not to participate in the formation of, or become an officer or director of, any other blank
check company until the Company has entered into a definitive agreement with respect to a Business Combination or the Company has
failed to complete a Business Combination within the time period set forth in the Company’s amended and restated certificate
of incorporation, as the same may be amended from time to time.


  


7.   (a) Each
Insider (if such Insider owns any Founder Shares) agrees that it, he or she shall not Transfer (as defined below) any Founder Shares
until the earlier of (i) one year after the completion of a Business Combination or (ii) on such earlier date as provided in clauses
(x) or (y) below if, subsequent to a Business Combination, (x) the last sale price of the Common Stock equals or exceeds $12.00
per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days
within any 30-trading day period commencing at least 150 days after a Business Combination or (y) the date following the completion
of a Business Combination on which the Company completes a liquidation, merger, stock exchange or other similar transaction that
results in all of the Company’s stockholders having the right to exchange their shares of Common Stock for cash, securities
or other property (the “Founder Shares Lock-up Period”).


 


(b) The Sponsor agrees
that it shall not effectuate any Transfer of Private Placement Shares, Private Placement Warrants or Common Stock issued or issuable
upon the exercise of the Private Placement Warrants, until 30 days after the completion of a Business Combination (the “Private
Placement Lock-up Period”, together with the Founder Shares Lock-up Period, the “Lock-up Periods”).


 


(c) Notwithstanding
the provisions set forth in Sections 7(a) and (b), Transfers of the Founder Shares, Private Placement Shares, Private Placement
Warrants and shares of Common Stock issued or issuable upon the exercise of the Private Placement Warrants are permitted to (a)
to the Company’s officers or directors, any affiliates or family members of any of the Company’s officers or directors,
any members of the Sponsor, or any affiliates of the Sponsor or any of its members; (b) in the case of an individual, by gift to
one of the members of the individual’s immediate family or to a trust, the beneficiary of which is a member of one of the
individual’s immediate family, an affiliate of such person or to a charitable organization; (c) in the case of an individual,
by virtue of laws of descent and distribution upon death of the individual; (d) in the case of an individual, pursuant to a qualified
domestic relations order; (e) by private sales or transfers made in connection with the consummation of a Business Combination
at prices no greater than the price at which the securities were originally purchased; (f) in the event of a Company liquidation
prior to a completion of a Business Combination; (g) to the Company for no value for cancellation; or (h) by virtue of the laws
of Delaware or either of the Sponsor’s operating agreement; provided, however, that in the case of clauses (a) through (e)
these permitted transferees must enter into a written agreement agreeing to be bound by these transfer restrictions. Any Transfer
made in contravention of this Letter Agreement shall be null and void.


 




     


     


    

  


8. Each Insider represents
and warrants that it, he or she has never been suspended or expelled from membership in any securities or commodities exchange
or association or had a securities or commodities license or registration denied, suspended or revoked. As applicable, each Insider’s
biographical information furnished to the Company is true and accurate in all material respects and does not omit any material
information with respect to the undersigned’s background. Each Insider’s questionnaire furnished to the Company is
true and accurate in all material respects. As applicable, each Insider represents and warrants (severally, and not jointly with
the other Insiders) that: the undersigned is not subject to or a respondent in any legal action for, any injunction, cease-and-desist
order or order or stipulation to desist or refrain from any act or practice relating to the offering of securities in any jurisdiction;
the undersigned has never been convicted of, or pleaded guilty to, any crime (i) involving fraud, (ii) relating to any
financial transaction or handling of funds of another person, or (iii) pertaining to any dealings in any securities; and the
undersigned is not currently a defendant in any such criminal proceeding.


 


9. (a) Except as disclosed
in the Prospectus, neither the Insiders nor any of their respective affiliates shall receive from the Company any finder’s
fee, reimbursement or cash payments for any services rendered to the Company prior to or in connection with the consummation of
an initial Business Combination. 


 


(b) Commencing on
the effective date of the Prospectus for the Offering and continuing until the earlier of (i) the consummation by the Company of
a Business Combination or (ii) the Company’s liquidation as described in the Prospectus, M-III Partners, LLC shall make available
to the Company, at no charge, certain office space and administrative and support services as may be required by the Company from
time to time, situated at 3 Columbus Circle, 15th Floor, New York, NY 10019 (or any successor locations). 


  


10. Each Insider has
full right and power, without violating any agreement to which it, he or she is bound (including, without limitation, any non-competition
or non-solicitation agreement with any employer or former employer), to enter into this Letter Agreement and, as applicable, to
serve as an officer or a director on the board of directors of the Company and hereby consents to being named in the Prospectus
as an officer or a director or director nominee of the Company.


 


11. As used herein,
(i) “Business Combination” shall mean a merger, capital stock exchange, asset acquisition, stock
purchase, reorganization or similar initial business combination, involving the Company and one or more businesses or entities;
(ii) “Founder Shares” shall mean the 5,031,250 shares (up to 656,250 of which are subject to forfeiture,
if the underwriters’ over-allotment option is not exercised in full) of Common Stock of the Company (giving effect to the
cancellation of certain shares on December 31, 2015) initially acquired by the Sponsor for an aggregate purchase price of $25,000,
prior to the consummation of the Public Offering; (iii) “Private Placement Shares” and “Private
Placement Warrants” shall mean the shares of Common Stock and Warrants, underlying the 430,000 Units that will be
purchased by the Sponsor for an aggregate purchase price of $4,300,000 or $10.00 per Unit, in a private placement that shall occur
simultaneously with the consummation of the Public Offering; (iv) “Public Stockholders” shall mean
the holders of securities issued in the Public Offering; (v) “Trust Account” shall mean the trust
fund into which a portion of the net proceeds of the Public Offering shall be deposited; and (vi) “Transfer”
shall mean the (a) sale of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to purchase
or otherwise dispose of or agreement to dispose of, directly or indirectly, or establishment or increase of a put equivalent position
or liquidation with respect to or decrease of a call equivalent position within the meaning of Section 16 of the Exchange
Act and the rules and regulations of the Commission promulgated thereunder with respect to, any security, (b) entry into any
swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any
security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (c) public
announcement of any intention to effect any transaction specified in clause (a) or (b).


 


12. (a) This Letter
Agreement constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and
supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent
they relate in any way to the subject matter hereof or the transactions contemplated hereby. This Letter Agreement may not be changed,
amended, modified or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument
executed by all parties hereto.


 


(b) Each Insider agrees
and acknowledges that: (i) each of the Underwriters and the Company would be irreparably injured in the event of a breach
by such Insider of his, her or its obligations (as applicable) under Sections 1, 2, 3, 4, 5, 6, 7(a), 7(b), and 9 of this Letter
Agreement, (ii) monetary damages may not be an adequate remedy for such breach and (iii) the non-breaching party shall
be entitled to seek injunctive relief, in addition to any other remedy that such party may have in law or in equity, in the event
of such breach.


  




     


     


    

  


13. No party hereto
may assign either this Letter Agreement or any of its rights, interests, or obligations hereunder without the prior written consent
of the other parties. Any purported assignment in violation of this Section shall be void and ineffectual and shall not operate
to transfer or assign any interest or title to the purported assignee. This Letter Agreement shall be binding on the Insiders and
their respective successors and permitted assigns.


  


14. This Letter Agreement
shall be governed by and construed and enforced 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. The parties hereto
(i) all agree that any action, proceeding, claim or dispute arising out of, or relating in any way to, this Letter Agreement
shall be brought and enforced in the courts of New York City, in the State of New York, and irrevocably submits to such jurisdiction
and venue, which jurisdiction and venue shall be exclusive and (ii) waives any objection to such exclusive jurisdiction and
venue or that such courts represent an inconvenient forum. 


  


15. Any notice, consent
or request to be given in connection with any of the terms or provisions of this Letter Agreement shall be in writing and shall
be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery or facsimile
transmission.


 


16. This Letter Agreement
shall terminate on the earlier of (i) the expiration of the Lock-up Periods or (ii) the liquidation of the Company; provided, however,
that the last paragraph of Section 2 and Section 4 of this Letter Agreement shall survive such liquidation.


 


[Signature page follows]


 




     


     


    

  


Sincerely,


 


M III SPONSOR I, LLC


 


By: M III ACQUISITION PARTNERS I, LLC, its managing
member


 


	By:	 	 
	 	Name: Mohsin Y. Meghji	 
	 	Title: Managing Member	 


 


M III SPONSOR I, LP


 


By: M III ACQUISITION PARTNERS I CORP., its general
partner


 


	By:	 	 
	 	Name: Mohsin Y. Meghji	 
	 	Title: Chief Executive Officer	 


 


	 	 
	Mohsin Y. Meghji	 
	 	 
	Suleman E. Lunat	 
	 	 
	Brian Griffith	 
	 	 
	Andrew L. Farkas	 
	 	 
	Osbert Hood	 
	 	 
	Philip Marber	 


 


[Signature Page to Insider Letter Agreement]