Document:

Exhibit 10.3

 

STOCK ESCROW AGREEMENT

 

STOCK ESCROW AGREEMENT, dated as of
[_____], 2015 (“Agreement”), by and among CAPITOL ACQUISITION CORP. III, a Delaware corporation
(“Company”), CAPITOL ACQUISITION MANAGEMENT 3 LLC, CAPITOL ACQUISITION FOUNDER 3 LLC, RICHARD C. DONALDSON,
PIYUSH SODHA and LAWRENCE CALCANO (collectively the “Sponsors”) and CONTINENTAL STOCK TRANSFER &
TRUST COMPANY, a New York corporation (“Escrow Agent”).

 

WHEREAS, the Company has entered into
an Underwriting Agreement, dated [_____], 2015 (“Underwriting Agreement”), with Citigroup Global Markets Inc. (the
“Representative”) acting as representative of the several underwriters (collectively, the “Underwriters”),
pursuant to which, among other matters, the Underwriters have agreed to purchase 35,000,000 units (“Units”) of the
Company, plus an additional 5,250,000 Units if the Underwriters exercise their over-allotment option in full. Each Unit consists
of one share of the Company’s common stock, par value $.0001 per share (“Common Stock”), and one half of one
Warrant, each whole Warrant to purchase one share of Common Stock, all as more fully described in the Company’s final Prospectus,
dated [_____], 2015 (“Prospectus”) comprising part of the Company’s Registration Statement on Form S-1 (File
No. 333-206693) under the Securities Act of 1933, as amended (“Registration Statement”), declared effective on [_____],
2015 (“Effective Date”) (the “IPO”).

 

WHEREAS, the Sponsors have agreed as a
condition of the sale of the Units to deposit their shares of Common Stock of the Company, as set forth opposite their respective
names in Exhibit A attached hereto, in escrow as hereinafter provided.

 

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

 

IT IS AGREED:

 

1.     Appointment of Escrow Agent. The Company
and the Sponsors 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 Shares. On or before the Effective
Date, each of the Sponsors shall have delivered to the Escrow Agent certificates representing such Sponsor’s respective shares,
to be held and disbursed subject to the terms and conditions of this Agreement. Each Sponsor acknowledges that the certificate
representing such Sponsor’s shares is legended to reflect the deposit of such shares under this Agreement.

 

    	 		 

     

    

 

3.     Disbursement of the Escrow Shares.

 

3.1     If the Underwriters do not exercise their over-allotment
option to purchase all or a portion of the additional 5,250,000 Units of the Company within 30 days of the date of the Prospectus
(as described in the Underwriting Agreement), the Sponsors agree that the Escrow Agent shall return to the Company for cancellation,
at no cost, the number of shares held by each Sponsor determined by multiplying (a) the product of (i) 1,312,500, multiplied by
(ii) a fraction, (x) the numerator of which is the number of shares held by each Sponsor, and (y) the denominator of which is the
total number of shares, by (b) a fraction, (i) the numerator of which is 5,250,000 minus the number of shares of Common Stock purchased
by the Underwriters upon the exercise of their over-allotment option, and (ii) the denominator of which is 5,250,000. The Company
shall promptly provide notice to the Escrow Agent of the expiration or termination of the Underwriters’ over-allotment option
and the number of Units, if any, purchased by the Underwriters in connection with their exercise thereof.

 

3.2     Except as otherwise set forth herein, the Escrow
Agent shall hold the shares remaining after any cancellation required pursuant to Section 3.1 above (such remaining shares to be
referred to herein as the “Escrow Shares”) until one year after the Company consummates a business combination (as
such term is described in the Registration Statement, a “Business Combination”) (the “Escrow Period”).
The Company shall promptly provide notice of the consummation of a Business Combination to the Escrow Agent. Upon completion of
the Escrow Period, the Escrow Agent shall disburse such amount of each Sponsor’s Escrow Shares to such Sponsor; provided,
however, that if the Escrow Agent is notified by the Company pursuant to Section 6.7 hereof that the Company is being liquidated
at any time during the Escrow Period, then the Escrow Agent shall promptly destroy the certificates representing the Escrow Shares;
provided further, however, that if, within one year after the Company consummates a Business Combination, (i) the Company (or the
surviving entity) subsequently consummates a liquidation, merger, stock exchange or other similar transaction which results in
all of the stockholders of such entity having the right to exchange their shares of Common Stock for cash, securities or other
property, or (ii) the last sales price of the Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock
dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing at least
150 days after such Business Combination, then the Escrow Agent will, upon receipt of a notice executed by the Chairman of the
Board of Directors, Chief Executive Officer or other authorized officer of the Company, in form reasonably acceptable to the Escrow
Agent, certifying that such transaction is then being consummated or such conditions have been achieved, as applicable, release
all the Escrow Shares to the Sponsors. The Escrow Agent shall have no further duties hereunder after the disbursement or destruction
of the Escrow Shares in accordance with this Section 3.

 

4.     Rights of Sponsors in Escrow Shares.

 

4.1     Voting Rights as a Stockholder. Subject
to the terms of the Insider Letters described in Section 4.4 hereof and except as herein provided, the Sponsors shall retain all
of their rights as stockholders of the Company as long as any shares are held in escrow pursuant to this Agreement, including,
without limitation, the right to vote such shares.

 

4.2     Dividends and Other Distributions in Respect
of the Escrow Shares. For as long as any shares are held in escrow pursuant to this Agreement, all dividends payable in cash
with respect to the Escrow Shares shall be paid to the Sponsors, but all dividends payable in stock or other non-cash property
(“Non-Cash Dividends”) shall be delivered to the Escrow Agent to hold in accordance with the terms hereof. As used
herein, the term “Escrow Shares” shall be deemed to include the Non-Cash Dividends distributed thereon, if any.

 

    	 	2	 

     

    

 

4.3     Restrictions on Transfer. During the Escrow
Period, the only permitted transfers of the Escrow Shares will be (A) private sales of the shares made at or prior to the consummation
of a Business Combination at prices no greater than the price at which the shares were originally purchased or (B) transfers (i)
to an entity’s members upon its liquidation, (ii) by bona fide gift to a member of an Sponsor’s immediate family or
to a trust, the beneficiary of which is an Sponsor or a member of an Sponsor’s immediate family for estate planning purposes,
(iii) by virtue of the laws of descent and distribution upon death of any Sponsor, (iv) pursuant to a qualified domestic relations
order or (v) to the Company for cancellation in connection with the consummation of a Business Combination; provided, however,
that except for clause (B)(v), such permissive transfers may be implemented only upon the respective transferee’s written
agreement to be bound by the terms and conditions of this Agreement and of the Insider Letter signed by the Sponsor transferring
the shares.

 

4.4     Insider Letters. Each of the Sponsors has
executed a letter agreement with the Company and the Representatives, dated as indicated on Exhibit A hereto, and which is filed
as an exhibit to the Registration Statement (“Insider Letter”), respecting the rights and obligations of such 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
not be liable for any action taken or omitted by it in good faith and in the exercise of its own best judgment, and may rely conclusively
and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen
by the Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity
and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is
believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons. The Escrow Agent shall
not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement unless evidenced
by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent
are affected, unless it shall have given its prior written consent thereto.

 

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

 

    	 	3	 

     

    

 

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

 

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

 

5.5     Resignation. The Escrow Agent may resign
at any time and be discharged from its duties as escrow agent hereunder by its giving the other parties hereto written notice and
such resignation shall become effective as hereinafter provided. Such resignation shall become effective at such time that the
Escrow Agent shall turn over to a successor escrow agent appointed by the Company and approved by the Representatives, which approval
will not be unreasonably withheld, conditioned or delayed, the Escrow Shares held hereunder. If no new escrow agent is so appointed
within the 60-day period following the giving of such notice of resignation, the Escrow Agent may deposit the Escrow Shares with
any court it reasonably deems appropriate in the State of New York.

 

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

 

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

 

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

 

    	 	4	 

     

    

  

6.     Miscellaneous.

 

6.1     Governing Law. This Agreement shall for
all purposes be deemed to be made under and shall be construed in accordance with the laws of the State of New York, without giving
effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. Each
of the parties hereby agrees 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 irrevocably submits to such personal jurisdiction, which jurisdiction shall be exclusive. Each of the parties
hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.

 

6.2     Third Party Beneficiaries. Each of the
Sponsors hereby acknowledges that the Underwriters are third party beneficiaries of this Agreement.

 

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

 

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

 

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

 

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

 

If to the Company, to:

 

Capitol Acquisition Corp. III

509 7th Street, N.W.

Washington, D.C.

Attn: Mark D. Ein, Chief Executive
Officer

 

    	 	5	 

     

    

 

If to a Sponsor, to his/it address set
forth in Exhibit A.

 

and if to the Escrow Agent, to:

 

Continental Stock Transfer & Trust
Company

17 Battery Place

New York, New York 10004

Attn: Chairman

 

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

 

Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

Attn: General Counsel

Fax.: (212) 816-7912

 

with a copy to:

 

Graubard Miller

The Chrysler Building

405 Lexington Avenue

New York, New York 10174

Attn: David Alan Miller, Esq.

 

and:

 

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, New York 10017

Attn: Deanna L. Kirkpatrick,
Esq.

 

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

 

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

 

6.8     Counterparts. This Agreement may be executed
in several counterparts, each one of which shall constitute an original and may be delivered by facsimile transmission and together
shall constitute one instrument.

 

    	 	6	 

     

    

 

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

 

	 	 	CAPITOL
    ACQUISITION CORP. III
	 	 	 
	 	By:	 
	 	 	 
	 	 	SPONSORS:
	 	 	 
	 	 	CAPITOL ACQUISITION
    MANAGEMENT 3 LLC
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	CAPITOL ACQUISITION
    FOUNDER 3 LLC
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	
	 	 	Richard C. Donaldson
	 	 	 
	 	 	
	 	 	Piyush Sodha
	 	 	 
	 	 	
	 	 	Lawrence Calcano
	 	 	 
	 	 	CONTINENTAL
                                         STOCK TRANSFER & TRUST COMPANY

	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

 

    	 	7	 

     

    

 

EXHIBIT A

 

	

Name
and Address of 

Sponsor
	 	

Number
of Shares
	 	Stock
                                         

Certificate
Number

	 	

Date
of 

Insider
Letter

	 	 	 	 	 	 	 
	Capitol
                                         Acquisition Management 3 LLC

        509
        7th Street, N.W.

        Washington,
        D.C. 20004
	 	7,434,375	 	1	 	[_____],
    2015
	 	 	 	 	 	 	 
	Capitol
                                         Acquisition Founder 3 LLC

        509
        7th Street, N.W.

        Washington,
        D.C. 20004
	 	2,478,125	 	2	 	[_____],
    2015
	 	 	 	 	 	 	 
	Richard
                                         C. Donaldson

        509
        7th Street, N.W.

        Washington,
        D.C. 20004
	 	50,000	 	3	 	[_____],
    2015
	 	 	 	 	 	 	 
	Piyush
                                         Sodha

        509
        7th Street, N.W.

        Washington,
        D.C. 20004
	 	50,000	 	4	 	[_____],
    2015
	 	 	 	 	 	 	 
	Lawrence
Calcano

        509
        7th Street, N.W.

        Washington,
        D.C. 20004
	 	50,000	 	5	 	[_____],
    2015

 

 

 

8Exhibit 10.4

 

PROMISSORY NOTE

 

	$200,000.00	As of July 14, 2015

 

Capitol Acquisition Corp.
II (“Maker”) promises to pay to the order of Leland Investments Inc. (“Payee”) the principal sum of Two
Hundred Thousand Dollars and No Cents ($200,000.00) in lawful money of the United States of America, on the terms and conditions
described below. This Note supersedes and replaces all outstanding notes from Maker to Payee.

 

1.             Principal.
The principal balance of this Note shall be repayable on the earlier of (i) August 1, 2016, (ii) the date on which Maker consummates
an initial public offering of its securities (“IPO”) or (iii) the date on which Maker determines to not proceed with
such IPO.

 

2.             Interest.
No interest shall accrue on the unpaid principal balance of this Note.

 

3.             Application of
Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under
this Note, including (without limitation) reasonable attorneys’ fees, then to the payment in full of any late charges and
finally to the reduction of the unpaid principal balance of this Note.

 

4.             Events of Default.
The following shall constitute Events of Default:

 

(a)              Failure to
Make Required Payments. Failure by Maker to pay the principal of this Note within five (5) business days following the date
when due.

 

(b)              Voluntary Bankruptcy,
Etc. The commencement by Maker of a voluntary case under the Federal Bankruptcy Code, as now constituted or hereafter amended,
or any other applicable federal or state bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the consent
by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of Maker or for any substantial part of its property, or the making by it of any assignment for the benefit of
creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate action by Maker
in furtherance of any of the foregoing.

 

(c)              Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of maker
in an involuntary case under the Federal Bankruptcy Code, as now or hereafter constituted, or any other applicable federal or state
bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or
similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation of its affairs,
and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days.

 

     

     

    

 

5.             Remedies.

 

(a)              Upon the occurrence
of an Event of Default specified in Section 4(a), Payee may, by written notice to Maker, declare this Note to be due and payable,
whereupon the principal amount of this Note, and all other amounts payable thereunder, shall become immediately due and payable
without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything contained
herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)              Upon the occurrence
of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of, and all other sums payable with regard
to, this Note shall automatically and immediately become due and payable, in all cases without any action on the part of Payee.

 

6.             Waivers. Maker
and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest,
and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under
the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property,
real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution,
or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any
real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may
be sold upon any such writ in whole or in part in any order desired by Payee.

 

7.             Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other
party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or
consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted
by Payee with respect to the payment or other provisions of this Note, and agree that additional makers, endorsers, guarantors,
or sureties may become parties hereto without notice to them or affecting their liability hereunder.

 

8.             Notices. Any
notice called for hereunder shall be deemed properly given if (i) sent by certified mail, return receipt requested, (ii) personally
delivered, (iii) dispatched by any form of private or governmental express mail or delivery service providing receipted delivery,
(iv) sent by telefacsimile or (v) sent by e-mail, to the following addresses or to such other address as either party may designate
by notice in accordance with this Section:

 

If to Maker:

 

Capitol
Acquisition Corp. III

509
7th Street, N.W.

Washington,
D.C. 20004

 

If to Payee:

 

Leland Investments Inc.

509 7th Street, N.W.

Washington, D.C. 20004

Attn: Mark D. Ein

 

    2

     

    

 

Notice shall be deemed given
on the earlier of (i) actual receipt by the receiving party, (ii) the date shown on a telefacsimile transmission confirmation,
(iii) the date on which an e-mail transmission was received by the receiving party’s on-line access provider (iv) the date
reflected on a signed delivery receipt, or (vi) two (2) Business Days following tender of delivery or dispatch by express mail
or delivery service.

 

9.             Construction.
This Note shall be construed and enforced in accordance with the domestic, internal law, but not the law of conflict of laws, of
the State of New York.

 

10.            Severability.
Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

 

IN WITNESS WHEREOF, Maker,
intending to be legally bound hereby, has caused this Note to be duly executed by its Chief Financial Officer the day and year
first above written.

 

	 	CAPITOL ACQUISITION CORP. III
	 	 	 
	 	By:	/s/ L. Dyson Dryden
	 	 	Name:  L. Dyson Dryden
	 	 	Title: Chief Financial Officer

 

 

3

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