Document:

Exhibit 10.7

 

EXECUTION VERSION

 

ESCROW AGREEMENT

 

THIS ESCROW AGREEMENT (this
“Escrow Agreement”) is entered into as of November 23, 2015, by and among Global Defense & National Security
Systems, Inc., a Delaware corporation, a Delaware corporation (the “Buyer”), each of the Persons set forth on
the signature page hereto as a Stockholder (each a “Stockholder” and collectively, the “Stockholders”),
who are stockholders of STG Group, Inc., a Delaware corporation (the “Company”), Simon Lee (the “Stockholders’
Representative”) and Branch Banking and Trust Company, a North Carolina banking corporation (the “Escrow Agent”).
Capitalized terms used herein but not defined shall have the meanings ascribed to them in the Purchase Agreement (as defined below).

 

WITNESSETH:

 

WHEREAS, the Buyer,
Global Defense & National Security Holdings LLC, a Delaware limited liability company, the Company, the Stockholders and the
Stockholders’ Representative, have entered into that certain Stock Purchase Agreement, dated as of June 8, 2015 (the “Purchase
Agreement”), a copy of which has been delivered to the Escrow Agent;

 

WHEREAS, the Buyer,
the Company, the Stockholders and the Stockholders’ Representative have agreed that at the Closing, pursuant to and subject
to the terms and conditions set forth in the Purchase Agreement and this Escrow Agreement, the Cash Escrow Deposit (as defined
below) and the Escrow Shares (as defined below) shall be delivered to the Escrow Agent to serve as partial security for the indemnification
obligations of the Stockholders set forth in Article IX of the Purchase Agreement; and

 

WHEREAS, the Escrow
Agent is willing to act as escrow agent on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE,
in consideration of the promises and agreements set forth herein, the undersigned hereby agree as follows:

 

ARTICLE I

TERMS AND CONDITIONS

 

1.1           Establishment
of Escrow.  The undersigned have caused or will cause to be deposited with the Escrow Agent (a) an amount in
cash equal to Three Million Three Hundred Ten Thousand Dollars ($3,310,000) (the “Cash Escrow Deposit”) and
(b) Three Hundred Thirteen Thousand Seven Hundred Forty-Four (313,744) unregistered shares of Buyer Common Stock with an aggregate
value equal to approximately Three Million Three Hundred Ten Thousand Dollars ($3,310,000) (the “Escrow Share Amount”),
or $10.55 per Buyer Share (the “Escrow Shares,” and together with the Cash Escrow Deposit, or the balance thereof
remaining from time to time, being referred to herein as the “Escrow Amount”).

 

     

     

    

 

1.2           Treatment
of Escrow Amount.  The Cash Escrow Deposit and the Escrow Shares shall be deposited by the Buyer with the Escrow
Agent in a segregated account pursuant to the terms of this Escrow Agreement. Such account shall be called the “Global Defense
Escrow.” The Escrow Amount shall not be subject to any lien, attachment or trustee process, or any other judicial process
by any creditor of any party to this Escrow Agreement. Absent any written investment direction, the Escrow Agent will invest the
Cash Escrow Deposit in the BB&T Business Investment Deposit Account, type 169.

 

1.3           Purpose
of the Escrow Amount. The purpose of the Escrow Amount is to, subject to the terms and conditions of the Purchase Agreement,
serve as partial security for the indemnification obligations of the Stockholders set forth in the Purchase Agreement.

 

1.4           Escrow
Procedure.

 

(a)          Indemnification
Claims. Subject to the procedures and requirements set forth in this Section 1.4, the Buyer shall be entitled to make indemnification
claims against the Escrow Amount for any and all Damages incurred by any Buyer Indemnified Party for which the Buyer Indemnified
Party may seek indemnification under Article IX of the Purchase Agreement, pursuant to and in accordance with the procedures set
forth in Article IX of the Purchase Agreement (subject always to the limitations and requirements set forth in the Purchase Agreement
and this Escrow Agreement) (such indemnification claims, the “Indemnification Claims”).

 

(b)          Claim
Notice. Any Indemnification Claim by the Buyer against the Escrow Amount shall be made by providing the Stockholders’
Representative with written notice (the “Claim Notice”) setting forth the following information: (i) that
a Buyer Indemnified Party seeks indemnification under the Purchase Agreement in an aggregate stated indemnifiable amount arising
from such Indemnification Claim (the “Claim Amount”), (ii) a brief description, in reasonable detail, of
the facts, circumstances or events giving rise to such Indemnification Claim by such Buyer Indemnified Party, and (iii) an estimate
of the portion of the Cash Escrow Deposit and/or the number of Escrow Shares to be released to the Buyer in order to satisfy such
Claim Amount, as calculated in Section 1.4(d) below.

 

(c)          Notice
of Contest. The Stockholders’ Representative may contest any Indemnification Claim by giving the Buyer written notice
of such contest (the “Contest Notice”) within ten (10) Business Days after delivery of such Claim Notice (the
“Contest Notice Period”). The Contest Notice shall include a statement of the grounds of such contest in reasonable
detail and shall state the amount of the Claim Amount that the Stockholders’ Representative does not dispute. The undisputed
portion of the Claim Amount, if any, stated in such Contest Notice shall be available for immediate release to the Buyer from the
Escrow Amount (as directed pursuant to the Claim Notice), and the Buyer and Stockholders’ Representative shall provide the
Escrow Agent with an executed Disbursement Request (as defined below) regarding the release of such undisputed portion of the Claim
Amount from the Escrow Amount. None of the Escrow Amount shall be released to the Buyer with respect to the disputed portion of
such Claim Amount unless and until such disputed portion is finally resolved either by a mutual agreement, in writing, between
the Buyer and the Stockholders’ Representative or by a court of competent jurisdiction in accordance with Section 13.9 of
the Purchase Agreement. Upon expiration of the Contest Notice Period, if no Contest Notice has been delivered to the Buyer during
such period, the Buyer and the Stockholders’ Representative shall provide the Escrow Agent with an executed Disbursement
Request to release a portion of the Escrow Amount with sufficient value to satisfy the Claim Amount, as calculated in Section 1.4(d)
herein.

 

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(d)          Calculation
of Values. In calculating the values of the Escrow Shares for purposes of satisfying any Indemnification Claim, each Escrow
Share shall be valued at the average closing market price at which shares of Buyer Common Stock traded on Nasdaq over the last
ten (10) trading days immediately prior to the date such claim is satisfied (the “Share Value”), and Indemnification
Claims that are paid under this Agreement may be satisfied, in whole or in part, as specified in the Disbursement Request, and
without duplication: (i) by transferring to the Buyer Indemnified Party the number of Escrow Shares that is equal to the Claim
Amount (or part thereof) based on the Share Value per Escrow Share (rounded down to the nearest whole share), and/or (ii) by
a cash disbursement from the Cash Escrow Deposit equal to the Claim Amount (or part thereof), and/or (iii) by pursuing any
other remedies available to the Buyer under the terms of the Purchase Agreement.

 

(e)          Disbursement
Request. Upon receipt by the Escrow Agent of a disbursement request, as set forth in Exhibit A hereto (the “Disbursement
Request”), executed by the Buyer and the Stockholders’ Representative, the Escrow Agent is hereby authorized and
directed to deliver the portion of the Escrow Amount in accordance with the joint written instructions of the Buyer and the Stockholders’
Representative in such Disbursement Request, within two (2) Business Days following receipt of such Disbursement Request. Claims
against the Escrow Amount shall first, be paid from the amount of the Cash Escrow Deposit in the Escrow Amount, and second, once
the total amount of the Cash Escrow Deposit has been disbursed, be paid as a transfer to the Buyer Indemnified Party the number
of Escrow Shares that is equal to the claim amount (or remaining portion thereof), divided by the Share Value per Escrow
Share, rounded down to the nearest whole share. Notwithstanding the foregoing; if Escrow Shares otherwise would be disbursed to
the Buyer Indemnified Party against an Indemnification Claim pursuant to this Agreement, but the Stockholders’ Representative
notifies the Buyer in writing that, in the Stockholders’ Representative reasonable opinion, the effect of such disbursement,
if made, would cause the Transaction to fail to satisfy the Control Requirement, the Stockholders’ Representative may cause
all or part of such Indemnification Claim to be satisfied by a cash payment directly to the Buyer Indemnified Party, and the Disbursement
Request shall instead direct that the number of Escrow Shares that is equal to the amount of cash paid directly to the Buyer Indemnified
Party, based on the Share Value per Escrow Share (rounded down to the nearest whole share), be disbursed to the Stockholders
pro rata based upon their Per Share Portion.

 

(f)          Notice
Requirements. Any notice pursuant to this Section 1.4 setting forth, claiming, containing, objecting to or in any way related
to the distribution of the Escrow Amount, must be in writing or set forth in a Portable Document Format (“PDF”),
executed by the appropriate party or parties hereto, as evidenced by the signatures of the Person or Persons signing this Escrow
Agreement, and such notice shall be deemed delivered and effective only if the receiving or delivering party, as applicable, shall
have actually delivered or received, as applicable, it on a business day by confirmed facsimile or as a PDF attached to an email
only at the fax number or email address set forth in Section 3.3 below.

 

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1.5           Release
of Escrow Amount.  

 

(a)          The
date that is eighteen (18) months after the Closing Date is the “Release Date.” If there are no pending Claim
Notices on the Release Date, the Buyer and the Stockholders’ Representative shall jointly provide the Escrow Agent with an
executed Disbursement Request instructing the Escrow Agent to disburse the Escrow Amount (including any amount of Additional Cash
Escrow, if any) to the Stockholders, pro rata based upon their Per Share Portion. In the event there are any pending Claim
Notices on the Release Date, the Buyer and the Stockholders’ Representative shall jointly instruct the Escrow Agent, and
the Escrow Agent shall follow such joint instructions, to retain only the Pending Claim Amount (as defined below) and release to
the Stockholders all of the Escrow Amount in excess of the Pending Claim Amount as set forth in the joint instructions. For purposes
of this Escrow Agreement, “Pending Claim Amount” shall mean that portion of the Cash Escrow Deposit and/or that
number of the Escrow Shares equal to the disputed amount in any pending Claim Notice based on the Share Value.

 

(b)          Any
portion of the Escrow Amount retained after the Release Date in respect of any pending Indemnification Claim shall not be subject
to or retained in respect of any Indemnification Claim other than such Indemnification Claim so pending after such date and shall
be released (in whole or in part) by the Escrow Agent to the Buyer and/or to the Stockholders, as the case may be, only pursuant
to Section 1.4 hereof or upon receipt by the Escrow Agent of either: (i) a copy of a written settlement agreement executed by the
Buyer and the Stockholders’ Representative resolving such pending Indemnification Claim with joint instructions of the Buyer
and the Stockholders’ Representative that all or part of the Escrow Amount be released to the Buyer and/or the Stockholders;
or (ii) a copy of a final order or judgment by the courts of the Eastern District of Virginia or any Virginia state court with
jurisdiction over Fairfax County, Virginia instructing the Escrow Agent to release all or part of the Escrow Amount to the Buyer
and/or the Stockholders. Any such portion of the Escrow Amount to be released to the Stockholders shall be released by the Escrow
Agent to the Stockholders pro rata based upon their Per Share Portion. The Escrow Agent shall continue to hold the remaining
Escrow Amount until otherwise permitted to release such remaining amount in accordance with the terms of this Section 1.5.

 

(c)          If,
on any date that a number of Escrow Shares is to be disbursed pursuant to the terms hereof, (i) the aggregate value of the
Escrow Shares remaining in the Escrow Amount, based on the Share Value per Escrow Share, is less than the amount requested in the
Disbursement Request and (ii) the aggregate value of the Escrow Shares disbursed as of such date is less the Escrow Share
Amount, the Stockholders jointly and severally agree to promptly (and in any event within two (2) Business Days following notice
from the Escrow Agent) provide to the Stockholders’ Representative for deposit with the Escrow Agent (within two (2) Business
Days following receipt from the Stockholders) an amount in cash, by wire transfer of immediately available funds, equal to the
difference between (x) the Escrow Share Amount and (y) the aggregate value of the Escrow Shares disbursed as of such
date (such difference, the “Additional Cash Escrow”). The Additional Cash Escrow shall be added to the Escrow
Amount, and the Escrow Agent shall then transfer to the Buyer Indemnified Party the Escrow Shares remaining in the Escrow Amount,
plus a portion of the Additional Cash Escrow necessary to satisfy the Disbursement Request. Thereafter, any subsequent Disbursement
Request shall be satisfied from the Additional Cash Escrow.

 

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(d)          In
no event shall the aggregate value disbursed from the Escrow Amount exceed the sum of the Cash Escrow Deposit and the Escrow Share
Amount. Once an amount equal to the sum of the Cash Escrow Deposit and the Escrow Share Amount has been disbursed from the Escrow
Amount, any remaining shares of Buyer Common Stock in the Escrow Amount shall be distributed to the Stockholders pro rata
based upon their Per Share Portion.

 

(e)          Notwithstanding
anything to the contrary herein, the Escrow Agent shall make distributions of the Escrow Amount any time and from time to time
upon, and in accordance with, joint written instructions from only the Buyer and the Stockholders’ Representative.

 

(f)          If,
on any date that Escrow Shares are to be released pursuant to the terms hereof, the Escrow Agent holds a stock certificate or other
evidence representing more Escrow Shares than are to be released, the Escrow Agent shall be instructed to deliver such stock certificate
to the Buyer, and the Buyer shall promptly cancel, or cause the registrar for the Buyer Common Stock to promptly cancel, such stock
certificate and the number of Escrow Shares to be so released, and shall deliver to the Escrow Agent a stock certificate representing
the remaining portion thereof to be held pursuant to the terms and conditions of this Escrow Agreement.

 

1.6           Termination.
Unless terminated earlier with the joint written consent of the Buyer and the Stockholders’ Representative, this Escrow Agreement
shall remain in full force and effect until all of the Escrow Amount shall have been released in accordance with the terms hereof.

 

1.7           Tax
Matters.

 

(a)          All
items of income, gains and losses with respect to the Cash Escrow Deposit will be reported for income tax purposes as items attributable
to the Buyer to the same extent as if the Buyer were the owner of the Escrow Amount during the period that the Escrow Amount is
held by the Escrow Agent; provided that such reporting position shall be controlling only for purposes of determining the party
required to pay income tax on such income. The parties hereto also agree to treat all disbursements out of the Escrow Amount to
the Stockholders as additional consideration paid by the Buyer on behalf of the Buyer pursuant to the Purchase Agreement in exchange
for the Shares at the time such amount is disbursed from the Escrow Amount for purposes of section 453 of the Code, and to treat
each such payment as composed of a principal amount and an interest amount pursuant to section 483 or 1272 of the Code, the interest
amount being equal to the amount of interest that would have accrued on the principal amount from the Closing Date at the applicable
Federal rate (as determined pursuant to Section 1274(d) of the Code).

 

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(b)          Escrow
Shares held by the Escrow Agent shall be treated at all times as owned by the Stockholders pro rata based upon their Per
Share Portion, and all transactions affecting such Escrow Shares shall be reported consistently for all tax purposes. During the
retention of the Escrow Shares by the Escrow Agent, (i) all cash dividends received on such Escrow Shares shall be promptly
distributed to the Stockholders pro rata based on their Per Share Portion, and (ii) the Stockholders shall be entitled
to exercise all voting powers associated with their Per Share Portion of such Escrow Shares.

 

(c)          To
the extent required by applicable Law, the Escrow Agent shall issue to the Buyer and the Stockholders appropriate Treasury Forms
1099 reflecting earnings on the Cash Escrow Deposit and the Escrow Shares for each calendar year consistently with Section 1.7(a)
and (b) above. The Buyer and the Stockholders’ Representative agree to provide in a timely manner to the Escrow Agent all
necessary and appropriate tax information and documentation required by the Escrow Agent to facilitate proper tax reporting hereunder.
Upon execution of this Escrow Agreement, the parties hereto shall furnish the Escrow Agent with the Taxpayer Identification Number
of the Buyer, the Stockholders and the Stockholders’ Representative on IRS Form W-9 (or Form W-8, if applicable).

 

ARTICLE II

PROVISIONS AS TO ESCROW AGENT

 

2.1           Limitation
of Escrow Agent’s Capacity.

 

(a)          This
Escrow Agreement expressly and exclusively sets forth the duties of the Escrow Agent with respect to any and all matters pertinent
hereto, and no implied duties or obligations shall be read into this Escrow Agreement against the Escrow Agent. This Escrow Agreement
constitutes the entire agreement between the Escrow Agent and the other parties hereto in connection with the subject matter of
this escrow, and no other agreement entered into between the parties, or any of them, shall be considered as adopted or binding,
in whole or in part, upon the Escrow Agent notwithstanding that any such other agreement may be referred to herein or deposited
with the Escrow Agent or the Escrow Agent may have knowledge thereof, and the Escrow Agent’s rights and responsibilities
shall be governed solely by this Escrow Agreement.

 

(b)          The
Escrow Agent acts hereunder as a depository only and is not responsible or liable in any manner whatsoever for the sufficiency,
correctness, genuineness or validity of the subject matter of this Escrow Agreement or any part thereof, or for the form of execution
thereof, or for the identity or authority of any Person executing or depositing such subject matter. The Escrow Agent shall be
under no duty to investigate or inquire as to the validity or accuracy of any document, agreement, instruction or request furnished
to it hereunder believed by it to be genuine, and the Escrow Agent may rely and act upon, and shall not be liable for acting or
not acting upon, any such document, agreement, instruction or request. The Escrow Agent shall in no way be responsible for notifying,
nor shall it be its duty to notify, any party hereto or any other party interested in this Escrow Agreement of any payment required
or maturity occurring under this Escrow Agreement or under the terms of any instrument deposited herewith.

 

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2.2           Authority
to Act.

 

(a)          The
Escrow Agent is hereby authorized and directed by the undersigned to deliver the subject matter of this Escrow Agreement only in
accordance with the provisions of Article I of this Escrow Agreement.

 

(b)          The
Escrow Agent shall be protected in acting upon any written notice, request, waiver, consent, certificate, receipt, authorization,
power of attorney or other paper or document which the Escrow Agent in good faith believes to be genuine and what it purports to
be, including, but not limited to, items directing investment or non-investment of funds, items requesting or authorizing release,
disbursement or retainage of the subject matter of this Escrow Agreement and items amending the terms of this Escrow Agreement.

 

(c)          The
Escrow Agent may consult with legal counsel at the joint and several cost and expense of the undersigned (other than the Escrow
Agent) in the event of any dispute or question as to the construction of any of the provisions hereof or its duties hereunder,
and it shall incur no liability and shall be fully protected in acting in accordance with the advice of such counsel.

 

(d)          In
the event of any disagreement between any of the parties to this Escrow Agreement, or between any of them and any other Person,
resulting in adverse claims or demands being made in connection with the matters covered by this Escrow Agreement, or in the event
that the Escrow Agent, in good faith, is in doubt as to what action it should take hereunder, the Escrow Agent may, at its option,
refuse to comply with any claims or demands on it, or refuse to take any other action hereunder, so long as such disagreement continues
or such doubt exists, and in any such event, the Escrow Agent shall not be or become liable in any way or to any Person for its
failure or refusal to act, and the Escrow Agent shall be entitled to continue so to refrain from acting until (i) the rights
of all interested parties shall have been fully and finally adjudicated by a court of competent jurisdiction, or (ii) all
differences shall have been adjudged and all doubt resolved by agreement among all of the interested Persons, and the Escrow Agent
shall have been notified thereof in writing signed by all such Persons. Notwithstanding the foregoing, the Escrow Agent may in
its discretion obey the order, judgment, decree or levy of any court, whether with or without jurisdiction, or of any agency of
the United States or any political subdivision thereof, or of any agency of the Commonwealth of Virginia or of any political subdivision
thereof, and the Escrow Agent is hereby authorized in its sole discretion, to comply with and obey any such orders, judgments,
decrees or levies. The right of the Escrow Agent under this sub-paragraph are cumulative of all other rights which it may have
by law or otherwise.

 

(e)          In
the event that any controversy should arise among the parties hereto with respect to the Escrow Agreement, or should the Escrow
Agent resign and the parties hereto fail to select another Escrow Agent to act in its stead, the Escrow Agent shall have the right
to institute a bill of interpleader in any court of competent jurisdiction to determine the rights of the parties hereto.

 

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2.3           Compensation/Indemnification.

 

(a)          The
Escrow Agent shall be entitled to reasonable compensation as well as reimbursement for its reasonable costs and expenses incurred
in connection with the performance by it of service under this Escrow Agreement (including reasonable fees and expenses of the
Escrow Agent’s counsel). The Stockholders’ Representative and the Buyer each agree to so pay the Escrow Agent fifty
percent (50%) of such reasonable compensation and, further, to reimburse Escrow Agent fifty percent (50%) for such reasonable costs
and expenses. The Stockholders’ Representative and the Buyer shall each pay fifty percent (50%) of the escrow fees due herein
in the amount of Two Thousand Five Hundred Dollars ($2,500). 

 

(b)          The
Stockholders and the Buyer each hereby severally agree to indemnify and hold the Escrow Agent, its affiliates and their officers,
employees, successors, assigns, attorneys and agents (each an “Escrow Agent Indemnified Party”) harmless from
fifty percent (50%) of all losses, costs, claims, demands, expenses, damages, penalties and attorney’s fees suffered or incurred
by any Escrow Agent Indemnified Party or the Escrow Agent as a result of anything which it may do or refrain from doing in connection
with this Escrow Agreement or any litigation or cause of action arising from or in conjunction with this Escrow Agreement or involving
the Cash Escrow Deposit or the Escrow Shares deposited hereunder or for any interest upon any such monies, including, without limitation,
arising out of the negligence of Escrow Agent; provided that the foregoing indemnification shall not extend to the gross negligence
or willful misconduct of the Escrow Agent. This indemnity shall include, but not be limited to, all costs incurred in conjunction
with any interpleader which the Escrow Agent may enter into regarding this Escrow Agreement. Each of the Stockholders, jointly
and severally, is liable for all costs and expenses that the Stockholders are obligated to pay pursuant to this Escrow Agreement.

 

2.4           Miscellaneous.

 

(a)          The
Escrow Agent shall make no disbursement, investment or other use of the Cash Escrow Deposit or the Escrow Shares until and unless
it has collected the Cash Escrow Deposit and the Escrow Shares. The Escrow Agent shall not be liable for collection items until
the Cash Escrow Deposit and the Escrow Shares have been received.

 

(b)          The
Escrow Agent agrees that the Buyer and the Stockholders’ Representative may at any time, in a writing signed by both the
Buyer and the Stockholders’ Representative, remove it as Escrow Agent hereunder and substitute an individual or a bank or
trust company for it, in which event the Escrow Agent, upon receipt of written notice thereof, shall account for and deliver to
such substituted escrow agent all funds and obligations held by it, less any amounts then due and unpaid to it for fees
and expenses as herein provided, and the Escrow Agent shall thereafter be discharged from all liability hereunder.

 

(c)          The
Escrow Agent may resign at any time by giving written notice to the parties hereto, whereupon the parties hereto will immediately
appoint a successor Escrow Agent. Until a successor Escrow Agent has been named and accepts its appointment or until another disposition
of the subject matter of this Escrow Agreement has been agreed upon by all parties hereto, the Escrow Agent shall be discharged
of all of its duties hereunder save to keep the subject matter whole.

 

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(d)          All
representations, covenants, and indemnifications contained in this Article II shall survive the termination of this Escrow Agreement.

 

ARTICLE III

GENERAL PROVISIONS

 

3.1           Discharge
of Escrow Agent.  Upon the delivery of all of the Cash Escrow Deposit and the Escrow Shares pursuant to the terms
of this Escrow Agreement, the duties of the Escrow Agent shall terminate, and the Escrow Agent shall be discharged from any further
obligation hereunder.

 

3.2           Escrow
Instructions.  Where directions or instructions from more than one of the undersigned are required, such directions
or instructions may be given by separate instruments of similar tenor. Any of the undersigned may act hereunder through an agent
or attorney-in-fact; provided that satisfactory written evidence of authority is first furnished to any party hereto relying
on such authority.

 

3.3           Notice.  Any
payment, notice, request for consent, report or any other communication required or permitted in this Escrow Agreement shall be
in writing or set forth in a PDF attached to an email and shall be deemed to have been delivered in accordance with the terms of
this Escrow Agreement by facsimile, email or overnight courier only to the appropriate fax number, email address, or notice address
set forth for each party hereto as follows:

 

If to the Escrow Agent:

 

Branch Banking and Trust Company

223 West Nash Street

Wilson, NC 27893

Fax No.: (252) 246-4303

Email: mrhart@bbandt.com

Attn: Corporate Trust Services

 

If to the Buyer:

 

Global Defense & National Security Systems,
Inc.

11921 Freedom Drive, Suite 550

Two Fountain Square

Reston, Virginia 20190

Attention: Dale Davis

Tel No.: (202) 800-4333

 

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With copies to:

 

Morrison & Foerster LLP

1650 Tysons Boulevard, Suite 400

McLean, VA 22102

Attention: Lawrence T. Yanowitch, Esq.

Charles W. Katz, Esq.

Tel No.: (703) 760-7318

Fax No.: (703) 760-7777

 

If to the Stockholders or the Stockholders’
Representative:

 

Simon Lee

11091 Sunset Hills Road, Suite 200

Reston, Virginia 20190

Tel No.: (703) 691-2480

Fax No.: (703) 691-3467

 

With copies to:

 

Holland & Knight LLP

1600 Tysons Boulevard, Suite 700

McLean, Virginia 22102

Attention: William J. Mutryn

Jonathan F. Wolcott

Tel No.: (703) 720-8069

Fax No.: (703) 720-8610

 

Any party hereto may unilaterally
designate a different address by giving notice of each such change in the manner specified above to each other party hereto. Notwithstanding
the foregoing, no notice to the Escrow Agent shall be deemed given to or received by the Escrow Agent unless actually delivered
to an officer of the Escrow Agent having responsibility under this Escrow Agreement.

 

3.4           Governing
Law.  This Escrow Agreement is being made in and is intended to be construed according to the Laws of the Commonwealth
of Virginia. It shall inure to and be binding upon the parties hereto and their respective successors, heirs and assigns.

 

3.5           Construction.  Words
used in the singular number may include the plural, and the plural may include the singular. The section headings appearing in
this instrument have been inserted for convenience only and shall be given no substantive meaning or significance whatsoever in
construing the terms and conditions of this Escrow Agreement.

 

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3.6           Amendment.  The
terms of this Escrow Agreement may be altered, amended, modified or revoked only by an instrument in writing signed by the undersigned
and the Escrow Agent.

 

3.7           Force
Majeure. The Escrow Agent shall not be liable to the undersigned for any loss or damage arising out of any acts of God, strikes,
equipment or transmission failure, war, terrorism, or any other act or circumstance beyond the reasonable control of the Escrow
Agent.

 

3.8           Written
Agreement. This Escrow Agreement represents the final agreement among the parties hereto and may not be contradicted by evidence
of prior, contemporaneous or subsequent oral agreements of the parties hereto. There are no unwritten oral agreements among the
parties hereto.

 

3.9           Counterparts.
This Escrow Agreement may be executed in separate counterparts (whether transmitted by facsimile or other electronic means), none
of which need contain the signatures of all parties hereto, each of which shall be deemed to be an original, and all of which taken
together constitute one and the same instrument. It shall not be necessary in making proof of this Escrow Agreement to produce
or account for more than the number of counterparts containing the respective signatures of, or on behalf of, all of the parties
hereto.

 

3.10         Electronic
Delivery. This Escrow Agreement and any signed agreement or instrument entered into in connection with this Escrow Agreement,
and any amendments hereto or thereto, to the extent delivered by means of a facsimile machine or electronic mail (any such delivery,
an “Electronic Delivery”), shall be treated in all manner and respects as an original agreement or instrument
and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.
At the request of any party hereto or to any such agreement or instrument, each other party hereto or thereto shall re-execute
original forms thereof and deliver them to all other parties. No party hereto or to any such agreement or instrument shall raise
the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted
or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever
waives any such defense, except to the extent such defense related to lack of authenticity.

 

3.11         Severability.
If any part of any provision of this Escrow Agreement shall be invalid or unenforceable under applicable Law, such part shall be
ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of such
provisions or the remaining provisions hereof or of such agreement, document or writing.

 

[Signature Page(s) to Follow]

 

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

 

	 	GLOBAL DEFENSE & NATIONAL SECURITY

SYSTEMS, INC.
	 	 
	 	By:	/s/ Damian Perl
	 	 	Name:  Damian Perl
	 	 	Title:  Chairman of the Board of Directors
	 	 
	 	STOCKHOLDERS’ REPRESENTATIVE
	 	 
	 	/s/ Simon Lee
	 	Simon Lee
	 	 
	 	STOCKHOLDERS
	 	 
	 	SIMON S. LEE MANAGEMENT TRUST
	 	 
	 	By:	/s/ Simon Lee
	 	 	Name: Simon Lee
	 	 	Title: Trustee
	 	 
	 	SIMON S. LEE FAMILY TRUST
	 	 
	 	By:	/s/ Julie Lee
	 	 	Name: Julie Lee
	 	 	Title: Trustee
	 	 
	 	AHL DESCENDANTS TRUST
	 	 
	 	By:	/s/ Julie Lee
	 	 	Name: Julie Lee
	 	 	Title: Trustee

 

[Signature Page to Escrow Agreement]

 

     

     

    

 

	 	STOCKHOLDERS, cont.
	 	 
	 	JSL DESCENDANTS TRUST
	 	 	 
	 	By:	/s/ Simon Lee
	 	 	Name: Simon Lee
	 	 	Title: Trustee
	 	 	 
	 	BRIAN LEE FAMILY TRUST
	 	 	 
	 	By:	/s/ Simon Lee
	 	 	Name: Simon Lee
	 	 	Title: Trustee

 

[Signature Page to Escrow Agreement]

 

     

     

    

 

Branch Banking and Trust
Company, as Escrow Agent, hereby accepts its appointment as Escrow Agent as described in the foregoing Escrow Agreement, subject
to the terms and conditions set forth therein.

 

	 	 	 	BRANCH BANKING AND TRUST COMPANY
	 	 	 	 
	Date:	November 23, 2015	 	By:	/s/
    Maura S. Pope
	 	 	 	Name:	Maura
    S. Pope
	 	 	 	Title:	Vice
    PresidentExhibit 10.8

 

EXECUTION VERSION

 

SECOND AMENDED AND RESTATED BACKSTOP COMMON
STOCK PURCHASE AGREEMENT

 

This Second Amended and
Restated Backstop Common Stock Purchase Agreement (this “Agreement”), is entered into as of November 23,
2015, by and between Global Defense & National Security Systems, Inc., a Delaware corporation (the “Company”),
and Global Defense & National Security Holdings LLC, a Delaware limited liability company (the “Purchaser”).
Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Stock Purchase
Agreement (as defined below).

 

WHEREAS, the Company
is a party to (i) that certain Stock Purchase Agreement, dated as of June 8, 2015 (the “Stock Purchase Agreement”),
among the Company, the Purchaser, STG Group, Inc. (“STG”), the Stockholders named therein and Simon Lee, as
Stockholders’ Representative thereunder, with respect to a proposed transaction involving the Company and STG as described
therein (the “Transaction”), and (ii) that certain Amended and Restated Backstop Common Stock Purchase
Agreement, dated as of October 17, 2015 (the “First Amended and Restated Backstop Agreement”), by and between
the Company and the Purchaser;

 

WHEREAS, the Purchaser
desires to purchase, and the Company desires to sell to the Purchaser, shares of the common stock of the Company, par value $0.0001
per share (“Common Stock”), pursuant to the terms and conditions set forth herein; and

 

WHEREAS, the Company
and the Purchaser wish to amend and restate the First Amended and Restated Backstop Agreement in its entirety as set forth herein.

 

NOW, THEREFORE,
in consideration of the premises, representations, warranties and the mutual covenants contained in this Agreement, and for other
good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties hereto agree
as follows:

 

1.                
Backstop Purchases. Subject to the terms and conditions contained in this Agreement, the Company grants the
Purchaser the right to purchase (the “Backstop Purchase”) 1,030,103 shares of Common Stock from the Company,
at a purchase price of $10.63 per share (the “Per Share Purchase Price”), payable by the Purchaser by wire transfer
of immediately available funds at the closing of the Transaction (the “Closing”). The purchase right provided
in this Agreement can only be exercised only in the event, and to the extent, that the Company determines that it will not meet
the Threshold Cash Amount (as defined below). The term “Threshold Cash Amount” means Twenty Million Dollars ($20,000,000)
in cash available to the Company from (1) the Trust Fund, following the payment in full to the Company’s stockholders who
have requested to be redeemed in connection with the Closing, and (2) the payment of any aggregate purchase price for the Backstop
Purchase. For the avoidance of doubt, any purchase of shares of Common Stock pursuant to this Section shall be at the Purchaser’s
sole discretion.

 

2.                 
Closing.

 

(a)        
Purchase Price. At the Closing, the Purchaser shall deliver to the Company the Per Share Purchase Price for all of the shares
being purchased by the Purchaser.

 

(b)        
Certificates. At the Closing, the Company shall deliver to the Purchaser the shares purchased by the Purchaser pursuant
to the Backstop Purchase (the “Shares”).

 

(c)        
Legend. Each certificate evidencing the Shares and each certificate issued in exchange for or upon the transfer of any Shares
shall be stamped or otherwise imprinted with a legend in substantially the following form:

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR
UNLESS SUCH REGISTRATION IS NOT REQUIRED IN THE OPINION OF COUNSEL FOR THE COMPANY.”

 

     

     

    

 

(d)        
Registration Rights.  At the Closing, the Company and the Purchaser shall enter into an amendment to that certain Registration
Rights Agreement, dated as of October 23, 2013, by and between the Company and the Purchaser, to provide that the Shares shall
be considered “Registrable Securities” as defined therein.

 

(e)          Mutual
Closing Conditions. The obligations of each party hereto to purchase shares of Common Stock under this Agreement shall be subject
to the fulfillment, at or prior to the Closing, of each of the following conditions:

 

(i)           The
Transaction shall be consummated concurrently with or immediately following the purchase of the Shares.

 

(ii)          The
representations and warranties of the other party in this Agreement shall have been true and correct as of the date hereof and
shall be true and correct as of the Closing with the same effect as though such representations and warranties had been made on
and as of such date (other than any such representation or warranty that is made by its terms as of a specified date, which shall
be true and correct as of such specified date).

 

(iii)         No
order, writ, judgment, injunction, decree, determination, or award shall have been entered by or with any governmental, regulatory,
or administrative authority or any court, tribunal, or judicial, or arbitral body, and no other legal restraint or prohibition
shall be in effect, preventing the purchase of the Shares.

 

3.                 
Representations and Warranties of the Purchaser.  The Purchaser represents and warrants to the Company as follows:

 

(a)          Organization
and Good Standing. The Purchaser is a limited liability company duly organized, validly existing, and in good standing under
the laws of the State of Delaware.

 

(b)          Power
and Authority; Enforceability. This Agreement constitutes the legal, valid, and binding obligation of the Purchaser, enforceable
against the Purchaser in accordance with its terms. The Purchaser has full entity power and authority to execute and deliver this
Agreement and to perform its obligations hereunder. The Purchaser has taken all actions necessary to authorize the execution and
delivery of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated
hereby. This Agreement has been duly authorized, executed and delivered by the Purchaser.

 

(c)          Investment
Representations.

 

(i)           The
Purchaser is an “accredited investor” as defined in Rule 501 of Regulation D under the Securities Act of
1933, as amended (the “Securities Act”).

 

(ii)          The
Purchaser has received, has thoroughly read, is familiar with and understands the contents of this Agreement.

 

(iii)         The
Purchaser hereby acknowledges that an investment in the Shares involves certain significant risks. The Purchaser acknowledges that
there is a substantial risk that it will lose all or a portion of its investment and that it is financially capable of bearing
the risk of such investment for an indefinite period of time. The Purchaser has no need for liquidity in its investment in the
Shares for the foreseeable future and is able to bear the risk of that investment for an indefinite period. The Purchaser’s
present financial condition is such that the Purchaser is under no present or contemplated future need to dispose of any portion
of the Shares purchased hereby to satisfy any existing or contemplated undertaking, need or indebtedness. The Purchaser’s
overall commitment to investments which are not readily marketable is not disproportionate to its net worth and the investment
in the Company will not cause such overall commitment to become excessive.

 

    	 	2	 

     

    

 

(iv)         The
Purchaser acknowledges that the Shares have not been registered under the Securities Act, or any state securities act, and are
being sold on the basis of exemptions from registration under the Securities Act and applicable state securities acts. Reliance
on such exemptions, where applicable, is predicated in part on the accuracy of the Purchaser’s representations and warranties
set forth herein. The Purchaser acknowledges and hereby agrees that the Shares will not be transferable under any circumstances
unless the Shares are registered in accordance with federal and state securities laws or the Purchaser finds and complies with
an available exemption under such laws. Accordingly, the Purchaser hereby acknowledges that there can be no assurance that it will
be able to liquidate its investment in the Company.

 

(v)          There
are substantial risk factors pertaining to an investment in the Company. The Purchaser acknowledges that it has read the information
set forth above regarding certain of such risks and is familiar with the nature and scope of all such risks, including, without
limitation, risks arising from the fact that the Company is an entity with limited operating history and financial resources; and
the Purchaser is fully able to bear the economic risks of such investment for an indefinite period, and can afford a complete loss
thereof.

 

(vi)         The
Purchaser has been given the opportunity to (i) ask questions of and receive answers from the Company and its designated representatives
concerning the terms and conditions of the purchase of the Shares, the Company and the business and financial condition of the
Company and (ii) obtain any additional information that the Company possesses or can acquire without unreasonable effort or
expense that is necessary to assist the Purchaser in evaluating the advisability of the purchase of the Shares and an investment
in the Company. The Purchaser further represents and warrants that, prior to signing this Agreement, it has asked such questions,
received such answers and obtained such information as it has deemed necessary or advisable to evaluate the merits and risks of
the purchase of the Shares and an investment in the Company. The Purchaser is not relying on any oral representation made by any
person as to the Company or its operations, financial condition or prospects.

 

(vii)        The
Purchaser understands that no federal, state or other governmental authority has made any recommendation, findings or determination
relating to the merits of an investment in the Company.

 

(viii)       The
Purchaser acknowledges that neither the Company, nor any of its officers, directors, employees, agents or affiliates has made any
representation or warranty, express or implied, regarding the Company, the Shares or otherwise, other than the representations
and warranties set forth herein.

 

(ix)          The
Purchaser acknowledges its obligations under the Securities Act, and the rules and regulations promulgated thereunder, with respect
to the treatment of non-public information relating to the Company.

 

4.                
Representations and Warranties of the Company. The Company represents and warrants to the Purchaser as follows:

 

(a)          Organization.
The Company is a corporation duly organized and validly existing under the laws of the State of Delaware.

 

(b)          Power and Authority; Enforceability. This Agreement constitutes the legal, valid, and binding
obligation of the Company, enforceable against the Company in accordance with its terms. The Company has full power and
authority to execute and deliver this Agreement and to perform its obligations hereunder. The Company has taken all actions
necessary to authorize the execution and delivery of this Agreement, the performance of its obligations hereunder, and the
consummation of the transactions contemplated hereby. This Agreement has been duly authorized, executed, and delivered by the
Company.

 

    	 	3	 

     

    

 

(c)          No
Violation; Necessary Approvals. Neither the execution and delivery of this Agreement by the Company, nor the consummation or
performance by the Company of any of the transactions contemplated hereby, will: (i) with or without notice or lapse of time,
constitute, create or result in a breach or violation of, default under, loss of benefit or right under, termination, cancellation,
suspension or modification of, or acceleration of performance of any obligation required under any (A) law (statutory, common or
otherwise), constitution, ordinance, rule, regulation, executive order or other similar authority enacted, adopted, promulgated
or applied by any legislature, agency, bureau, branch, department, division, commission, court, tribunal or other similar recognized
organization or body of any federal, state, county, municipal, local or foreign government or other similar recognized organization
or body exercising similar powers or authority (collectively, “Law”), (B) order, ruling, decision, award, judgment,
injunction or other similar determination or finding by, before or under the supervision of any governmental authority or arbitrator
(collectively, “Order”), (C) contract or agreement, (D) permit, license, certificate, waiver, filing, notice
or authorization (collectively, “Permit”) to which the Company is a party or by which it is bound or any of
its assets are subject, or (E) any provision of the Company’s organizational documents as in effect at the Closing, (ii) result
in the imposition of any lien, claim or encumbrance upon any assets owned by the Company; (iii) require any consent, approval,
notification, waiver, or other similar action under any contract or agreement or organizational document to which the Company is
a party or by which it is bound (other than receipt of the Restated Certificate Approval); or (iv) require any Permit under
any Law or Order other than (A) required filings, if any, with the Securities and Exchange Commission and (B) notifications
or other filings with state or federal regulatory agencies after the Closing that are necessary or convenient and do not require
approval of the agency as a condition to the validity of the transactions contemplated hereunder; or (v) trigger any rights
of first refusal, preemptive or preferential purchase or similar rights with respect to any of the Shares.

  

(d)          Authorization
of the Shares. The Shares have been duly authorized, and when issued in accordance with this Agreement, will be duly and validly
issued, fully paid and non-assessable and will be free and clear of all liens, claims or encumbrances, other than (A) transfer
restrictions hereunder, (B) transfer restrictions under federal and state securities laws, and (C) liens, claims or encumbrances
imposed due to the actions of the Purchaser.

 

5.                 
Termination.

 

This Agreement may be terminated at any time
prior to the Closing:

 

(a)           by
mutual written consent of the Company and the Purchaser; or

 

(b)           automatically
upon any termination of the Stock Purchase Agreement.

 

In the event of any termination
of this Agreement pursuant to this Section 5, this Agreement shall forthwith become null and void and have no effect, without
any liability on the part of the Purchaser or the Company and their respective directors, officers, employees, partners, managers,
members, or stockholders and all rights and obligations of each party shall cease; provided, however, that nothing contained in
this Section 5 shall relieve either party from liabilities or damages arising out of any fraud or willful breach by such
party of any of its representations, warranties, covenants or agreements contained in this Agreement.

 

6.                 
General Provisions.

 

(a)          Survival
of Representations and Warranties.  All of the representations and warranties contained herein shall survive the Closing.

 

(b)          Entire
Agreement.  This Agreement, together with any documents, instruments and writings that are delivered pursuant hereto or
referenced herein, constitutes the entire agreement and understanding of the parties hereto in respect of its subject matter 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.

 

(c)          Successors. 
All of the terms, agreements, covenants, representations, warranties, and conditions of this Agreement are binding upon, and inure
to the benefit of and are enforceable by, the parties hereto and their respective successors.

 

(d)          Assignments.
Neither party hereto may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior
written approval of the other party.

 

(e)          Counterparts.
This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together
will constitute one and the same instrument.

 

    	 	4	 

     

    

 

(f)           Headings.
The section headings contained in this Agreement are inserted for convenience only and will not affect in any way the meaning or
interpretation of this Agreement.

 

(g)          Governing
Law. This Agreement, the entire relationship of the parties hereto, and any litigation between the parties (whether grounded
in contract, tort, statute, law or equity) shall be governed by, construed in accordance with, and interpreted pursuant to the
laws of the State of Delaware, without giving effect to its choice of laws principles.

 

(h)          Waiver
of Jury Trial.  The parties hereto hereby waive any right to a jury trial in connection with any litigation pursuant to
this Agreement and the transactions contemplated hereby.

 

(i)           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.

 

(j)           Severability.
The provisions of this Agreement will be deemed severable and the invalidity or unenforceability of any provision will not affect
the validity or enforceability of the other provisions hereof; provided that if any provision of this Agreement, as applied to
either party hereto or to any circumstance, is adjudged by a governmental authority, arbitrator, or mediator not to be enforceable
in accordance with its terms, the parties hereto agree that the governmental authority, arbitrator, or mediator making such determination
will have the power to modify the provision in a manner consistent with its objectives such that it is enforceable, and/or to delete
specific words or phrases, and in its reduced form, such provision will then be enforceable and will be enforced.

 

(k)          Expenses.
Except as otherwise expressly provided in this Agreement or in the definitive documents for the Transaction, each party hereto
will bear its own costs and expenses incurred in connection with the preparation, execution and performance of this Agreement and
the consummation of the transactions contemplated hereby.

 

(m)         Waiver.
No waiver by either party hereto of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional
or not, may be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder
or affect in any way any rights arising because of any prior or subsequent occurrence.

 

(n)          Further
Assurances. The parties hereto shall execute and deliver such additional documents and take such additional actions as either
party reasonably may deem to be practical and necessary in order to consummate the purchase and sale of Common Stock as contemplated
by this Agreement.

 

    	 	5	 

     

    

 

(o)          Trust
Fund Waiver. Reference is made to the final prospectus of the Company dated October 24, 2013 (File No. 333-191195) (the “Prospectus”).
The Purchaser warrants and represents that it has read the Prospectus and understands that Company has established the Trust Fund
containing the proceeds of the IPO initially in the amount of at least Seventy-Two Million Seven Hundred Ninety-Five Thousand
Dollars ($72,795,000) for the benefit of the Company’s public stockholders and certain other parties (including the underwriters
of the IPO) and that the Company may disburse monies from the Trust Fund, including any proceeds therefrom, only as provided in
the Prospectus. For and in consideration of the Company agreeing to enter into this Agreement, the Purchaser agrees that, notwithstanding
any provisions contained in this Agreement, the Purchaser does not now have, and shall not at any time prior to the Closing have,
any claim to, or make any claim against, the Trust Fund, any asset contained therein or any Additional Person, regardless of whether
such claim arises as a result of, in connection with or relating in any way to, the business relationship between STG or any of
its Subsidiaries, on the one hand, and the Company, on the other hand, this Agreement or any other agreement or any other matter,
and regardless of whether such claim arises based on contract, tort, equity or any other theory of legal liability. The Purchaser
(for itself and on behalf of its Affiliates and direct and indirect subsidiaries and stockholders, and its and their respective
successors and assigns, and any Person claiming by or through the Purchaser) hereby irrevocably waives any and all rights, titles,
interests and claims of any kind that the Purchaser may have, now or in the future (in each case, however, prior to the consummation
of a business combination), and shall not take any action or suit, make any claim or demand or seek recovery of any Liability
or recourse against, the Trust Fund or any Additional Person for any reason whatsoever in respect thereof. The Purchaser agrees
and acknowledges that such irrevocable waiver is material to this Agreement and specifically relied upon by the Company to induce
it to enter into this Agreement. The Purchaser further intends and understands such waiver to be valid, binding and enforceable
under applicable Law. To the extent that the Purchaser commences any action or Proceeding based upon, in connection with, relating
to or arising out of any matter relating to the Company or any Additional Person, which Proceeding seeks, in whole or in part,
monetary relief against the Company or any Additional Person, the Purchaser hereby acknowledges and agrees that the Purchaser’s
sole remedy shall be against the Company’s funds held outside of the Trust Fund and that such claim shall not permit the
Purchaser (or any party claiming on the Purchaser’s behalf or in lieu of the Purchaser) to have any claim against any Additional
Person or the Trust Fund or any amounts contained therein. In the event that the Purchaser commences any action or Proceeding
based upon, in connection with, relating to or arising out of any matter relating to the Company or any Additional Person, which
Proceeding seeks, in whole or in part, relief against the Trust Fund, the Company’s public stockholders or any Additional
Person, whether in the form of money damages or injunctive relief, the Company shall be entitled to recover from the Purchaser
the associated legal fees and costs in connection with any such action, in the event the Company prevails in such action or Proceeding.

 

[Signature page follows] 

 

    	 	6	 

     

    

 

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

 

	 	COMPANY:
	 	 	 
	 	GLOBAL DEFENSE & NATIONAL SECURITY SYSTEMS, INC.
	 	 	 
	 		By:	/s/ Frederic Cassis
	 	 	Name: Frederic Cassis
	 	 	Title:  Secretary

 

	 	 	PURCHASER:
	 	 	 
	 	GLOBAL DEFENSE & NATIONAL SECURITY HOLDINGS LLC
	 	 	 
	 	 	By: Black Marlin Ltd, its Manager
	 	 	 
	 	 	By: 	/s/ Damian Perl
	 	 	Name: Damian Perl
	 	 	Title:  Manager

 

[Signature Page to Second Amended & Restated
Backstop Common Stock Purchase Agreement]

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