Document:

Exhibit
10.3

 

FORM OF
STOCK ESCROW AGREEMENT

 

THIS
STOCK ESCROW AGREEMENT, dated as of , 2013 (this “Agreement”), by and among Global Defense & National
Security Systems, Inc., a Delaware corporation (the “Company”), Global Defense & National Security Holdings
LLC (the “Sponsor”), and American Stock Transfer & Trust Company (the “Escrow Agent”).

 

WHEREAS,
the Sponsor has agreed to deposit its  2,003,225 shares of the Company’s common stock, par value $0.0001 per share (the
“Common Stock”), purchased on July 19, 2013 (the “Sponsor’s Shares”) in escrow as
hereinafter provided;

 

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

 

IT IS AGREED:

 

1.Appointment of Escrow
Agent. The Company and the Sponsor 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 Sponsor’s Shares. On or about the effective date of the Company’s Registration Statement on Form S-1
(File No. 333-) filed under the Securities Act of 1933, as amended (the “Registration Statement”), the Sponsor
shall deliver to the Escrow Agent the certificate representing the Sponsor’s Shares, which certificate shall remain in the
name of the Sponsor, to be held and disbursed subject to the terms and conditions of this Agreement. The Sponsor acknowledges that
the certificate representing the Sponsor’s Shares bears a legend to reflect the deposit of the Sponsor’s Shares under
this Agreement.

 

 

3.Disbursement
of the Sponsor’s Shares. Of the total Sponsor’s Shares, fifty percent (50%) of such shares will be
released from escrow six months after the consummation of a Business Combination (as defined in the Registration Statement), and
the remaining fifty percent (50%) of the Sponsor’s Shares will be released from escrow one year after the consummation of
a Business Combination (the “Escrow Period”); provided, however, that if the over-allotment option (as
described in the Registration Statement) is not exercised in full prior to the expiration of the over-allotment option, then the
Escrow Agent shall release to the Company such number of Sponsor’s Shares as directed in writing by the Company. The Company
shall promptly provide notice of the consummation of a Business Combination to the Escrow Agent. Upon the completion of the Escrow
Period, the Escrow Agent shall automatically disburse the Sponsor’s Shares to the Sponsor upon receipt of written request
therefor from the Company; provided, however, that if the Escrow Agent is notified by the Company pursuant to Section 6.6
hereof that the Company has been liquidated at any time during the Escrow Period, then the Escrow Agent shall promptly destroy
the certificates representing the Sponsor’s Shares. The Escrow Agent shall have no further duties hereunder with respect
to the Sponsor’s Shares after the disbursement or destruction of the Sponsor’s Shares in accordance with this Section
3.

 

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4.Rights of Sponsor in
Sponsor’s Shares.

 

		4.1.	Rights as a Security Holder. Subject to the
terms of its Insider Letter as described in Section 4.4 hereof and except as herein provided, the Sponsor shall retain all of
its rights as a stockholder of the Company during the Escrow Period, including without limitation, the right to vote Common Stock.
The Escrow Agent shall have no responsibility to determine or verify the contents or limitations of the Insider Letter and shall
be bound only by the terms of this Agreement.

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

 

		4.3.	Restrictions on Transfer and Redemption. During
the Escrow Period, no sale, transfer or other disposition (a “Transfer”) may be made of any or all of the Sponsor’s
Shares by the Sponsor except (i) to the Company’s officers, directors and employees, to the Sponsor’s affiliates or
its members upon its liquidation, (ii) by gift to a member of the Sponsor’s immediate family for estate planning purposes
or to a trust, the beneficiary of which is the Sponsor or a member of the Sponsor’s immediate family, (iii) if the Sponsor
is not a natural person, by gift to a member of the immediate family of the Sponsor’s controlling person for estate planning
purposes or to a trust, the beneficiary of which is the Sponsor’s controlling person or a member of the immediate family
of the Sponsor’s controlling person, (iv) by virtue of the laws of descent and distribution upon death, (v) pursuant to
a qualified domestic relations order, (vi) by certain pledges to secure obligations incurred in connection with purchases of our
securities or (vii) by private sales made at or prior to the consummation of our initial business combination at prices no greater
than the price at which the shares were originally purchased (each such transferee, a “Permitted Transferee”);
provided, however, that such permitted Transfers may be implemented only upon the respective Permitted Transferee’s
written agreement to be bound by the terms and conditions of this Agreement and of the Insider Letter signed by the Sponsor transferring
the Sponsor’s Shares and such other documents as the Company may reasonably require. During the Escrow Period, the Sponsor
shall not pledge or grant a security interest in the Sponsor’s Shares or grant a security interest in the Sponsor’s
rights under this Agreement.

 

		4.4.	Insider Letter.
The Sponsor has executed a letter agreement with the Company, which has been filed as an exhibit to the Registration Statement
(the “Insider Letter”), with respect to the rights and obligations of the Sponsor
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
be protected and shall not be liable for any action taken or omitted by it in good faith and in the exercise of its best judgment
(unless negligent), and may rely conclusively and may act upon any order, notice, demand, certificate, opinion or advice of counsel
(including counsel chosen by the Escrow Agent), statement, instrument, report or other document 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.

 

		5.2.	Indemnification. The Escrow Agent shall be
indemnified and held harmless by the Company from and against any expenses, including reasonable counsel fees and disbursements,
or losses 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 Sponsor’s
Shares held by it hereunder, other than expenses or losses arising from the 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 Sponsor’s Shares or it may deposit the Sponsor’s Shares with the clerk of any appropriate court
or it may retain the Sponsor’s 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 Sponsor’s Shares are to be disbursed and delivered.
The provisions of Sections 5.2 and 5.7 shall survive in the event the Escrow Agent resigns or is discharged pursuant to Sections
5.5 or 5.6 below and in the event of termination under 6.10 below.

 

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		5.3.	Compensation. The Escrow Agent shall be entitled
to compensation from the Company in accordance with Schedule I hereto for all services rendered by it hereunder.

 

		5.4.	Further Assurances. From time to time on and
after the date hereof, the Company and the Sponsor 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 at such time that the Escrow Agent shall turn over to a successor escrow agent appointed
by the Company the Sponsor’s Shares held hereunder. If no successor escrow agent is so appointed within the sixty (60) day
period following the giving of such notice of resignation, the Escrow Agent may submit an application to deposit the Sponsor’s
Shares with the United States District Court for the Southern District of New York, provided the Escrow Agent provides
notice of such deposit to the Company and the Sponsor in accordance with Section 6.6 hereof.

 

		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. Upon such discharge, all obligations under this Agreement to the Escrow Agent
shall terminate.

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

 

 

		5.8.	Waiver. The Escrow Agent hereby waives any
and all right, title, interest or claim of any kind (each, a “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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		5.9.	Standard of Care. The Escrow Agent shall be
obligated only to perform the duties specifically set forth in this Escrow Agreement, which shall be deemed purely ministerial
in nature, and the Escrow Agent shall under no circumstances be deemed to be a fiduciary to any party hereto or any other person.
The parties hereto agree that the Escrow Agent shall not assume any responsibility for the failure of the parties hereto to perform
in accordance with this Escrow Agreement or any other agreement or document. This Escrow Agreement sets forth all matters pertinent
to the escrow contemplated hereunder, and no additional obligations of the Escrow Agent shall be inferred from the terms of this
Escrow Agreement or any other agreement or document. In no event shall the escrow agent
be liable, directly or indirectly, for any damages or expenses arising out of the services provided hereunder, other than damages
which result from the escrow agent’s negligence or willful misconduct.

 

6.Miscellaneous.

		6.1.	Governing Law and Consent to Jurisdiction.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts
executed in and to be performed in that State. The parties hereto agree that any action, proceeding or claim against it arising
out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United
States District Court for the Southern District of New York, and the parties hereto irrevocably submit to such jurisdiction, which
jurisdiction shall be exclusive. The parties hereto hereby waive any objection to such exclusive jurisdiction and that such courts
represent an inconvenient forum.

 

		6.2.	Waiver of Trial by Jury. Each party hereto
hereby irrevocably and unconditionally waives the right to a trial by jury in any action, suit, counterclaim or other proceeding
(whether based on contract, tort or otherwise) arising out of, connected with or relating to this Agreement, the transactions
contemplated hereby, or the actions of the parties in the negotiation, administration, performance or enforcement hereof.

 

		6.3.	Entire Agreement. This Agreement and the Insider
Letter as referenced herein contain the entire agreement of the Company and the Sponsor with respect to the subject matter hereof,
and this Agreement contains the entire agreement as it pertains to the Escrow Agent and the other parties hereto and, except as
expressly provided herein, may not be changed or modified except by an instrument in writing signed by all parties to this Agreement.
This Agreement may be executed in several original or facsimile counterparts, each one of which shall constitute an original,
and together shall constitute but one instrument.

 

 

		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 hereof.

 

		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 permitted assigns.
Any corporation or association into which the Escrow Agent may be converted or merged, or with which it may be consolidated, or
to which it may sell or transfer all or substantially all of its corporate trust business and assets as a whole or substantially
as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation or transfer to which
the Escrow Agent is a party, shall be and become the successor escrow agent under this Escrow Agreement and shall have and succeed
to the rights, powers, duties, obligations, immunities and privileges of the Escrow Agent, without the execution or filing of
any instrument or paper or the performance of any further act.

 

		6.6.	Notices. Any notice or other communication
required or which may be given hereunder shall be in writing and shall be sent by certified mail, by private national courier
service (return receipt requested, postage prepaid), by personal delivery or by facsimile transmission. Such notice or communication
shall be deemed given (a) if mailed, two days after the date of mailing, (b) if sent by national courier service, one business
day after being sent, (c) if delivered personally, when so delivered, or (d) if sent by facsimile transmission, on the second
business day after such facsimile is transmitted, in each case as follows:

 

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If to the Company, to:

 

		Global Defense & National Security Systems, Inc.

	 	11921 Freedom Drive, Suite 55

                                                       Two Fountain Square
 Reston, Virginia 20190
 Attn: Dale R. Davis

	 	Fax:

 

If to the Sponsor, to:

 

	
	Global Defense & National Security Holdings LLC

	 	11921 Freedom Drive, Suite
550
 Two Fountain Square

                                                            Reston, Virginia 20190
 Attn: Frederic Cassis

	 	Fax:

 

If to the Escrow Agent, to:

 

		American Stock Transfer & Trust Company

	 	6201 15th Avenue

Brooklyn, New York 11219

Attn: John Baker

	 	Fax:

 

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

 

		Skadden, Arps, Slate, Meagher & Flom LLP

		525 University Avenue

		Suite 1100

		Palo Alto, California 94301

	 	Attn:Gregg A. Noel, Esq.

		Fax:

 

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 Registration Statement.

 

		6.8.	Disputes. If any disagreement or dispute arises
among the Company and the Sponsor concerning the meaning or validity of any provision hereunder or concerning any other matter
relating to this Escrow Agreement, the Escrow Agent shall be under no obligation to act, except (i) with joint written instruction
of the Company and the Sponsor, or (ii) under process or order of court, and shall sustain no liability for its failure to act
pending such process or court order.

 

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		6.9.	Authorized Signatures. Concurrent with the
execution of this Agreement, the Company will provide a completed certificate of parties authorized to sign on its behalf, in
the form attached hereto as Schedule II.

 

		6.10.	Termination. This Agreement shall terminate
on the final distribution or destruction of all of the Sponsor’s Shares in accordance with the terms of this Agreement.

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IN WITNESS
WHEREOF, the parties have duly executed this Stock Escrow Agreement as of the date first written above.

 

 

	 	GLOBAL DEFENSE & NATIONAL SECURITY SYSTEMS, INC.
	 	 
	 	By: 	
	 	 	Name:
Title:

 

	 	SPONSOR:
	 	
	 	GLOBAL DEFENSE &
NATIONAL SECURITY HOLDINGS LLC
	 	By: 	
	 	 	Name:
Title:

 

    	 

    	 

    

 

 

	 	AMERICAN STOCK TRANSFER & TRUST COMPANY,

                    AS ESCROW AGENT

	 	 
	 	By: 	
	 	 	Name:
Title:

  

 

    	 

    	 

    

 

Schedule I – Escrow
Agent Fees For Escrow Services

 

, to be paid
by the Company to the Escrow Agent upon the consummation of the Company’s initial public offering of securities.

 

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Schedule II – Authorized
Signatories

	Individual’s Name	
         

        Title
	
         

        SignatureExhibit 10.4

 

PROMISSORY NOTE

 

	Borrower:                                          	Global Defense & National Security Systems, Inc.

	 	c/o Skardel, LLC

	 	920 N. Market Street, One Rodney Square

	 	Wilmington, Delaware 19801

 

	Lender:                                              	Global Defense & National Security Holdings LLC

 

	Principal Amount:	$50,000.00

 

1. FOR VALUE RECEIVED, Global Defense & National Security
Systems, Inc. (the “Company”) promises to pay to Global Defense & National Security Holdings LLC, at such
address as may be provided in writing to the Company, the principal sum of fifty thousand ($50,000.00) USD or such lesser amount,
as the case may be, equal to the funds advanced by Global Defense & National Security Holdings LLC to or on behalf of the Company,
on a non-interest bearing basis. Documentation to substantiate all amounts advanced to or on behalf of the Company pursuant to
this promissory note (this “Note”) shall be attached hereto as such funds are so advanced.

 

2. This Note will be repaid in full on the earlier of (1) June
30, 2014, (2) the date on which we consummate our initial public offering and (3) the date on which we determine to not proceed
with our initial public offering.

 

3. At any time, the Company may pay the outstanding balance
then owing under this Note to Global Defense & National Security Holdings LLC without further bonus or penalty.

 

4. This Note will be construed in accordance with and governed
by the laws of the State of Delaware.

 

5. If any term, covenant, condition or provision of this Note
is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties’ intent that such provision
be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable
and the remainder of the provisions of this Note will in no way be affected, impaired or invalidated as a result.

 

6. All costs, expenses and expenditures including, and without
limitation, the reasonable legal costs incurred by Global Defense & National Security Holdings LLC in enforcing this Note as
a result of any default by the Company, will be added to the principal then outstanding and will immediately be paid by the Company.

 

7. This Note will inure to the benefit of and be binding upon
the respective heirs, executors, administrators, successors and assigns of the Company and Global Defense & National Security
Holdings LLC. The Company waives presentment for payment, notice of non-payment, protest and notice of protest.

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the Company has duly affixed its signature
by a duly authorized officer under seal on this 18th day of July, 2013.

 

SIGNED, SEALED, AND DELIVERED

this 18th day of July, 2013.

 

 

	 	GLOBAL DEFENSE & NATIONAL SECURITY

                    SYSTEMS, INC.

	 	 
	 	By: 	/s/ Dale R. Davis
	 	 	Name: Dale R. Davis
Title: Chief Executive
Officer, President and Director

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