EXHIBIT 10.3








                                                     October 4, 2004


Millstream II Acquisition Corporation
435 Devon Park Drive
Building 400
Wayne, Pennsylvania 19087

EarlyBirdCapital, Inc.
600 Third Avenue
33rd Floor
New York, New York 10016

                  Re:      Initial Public Offering

Gentlemen:

                  The undersigned stockholder and director of Millstream II
Acquisition Corporation ("Company"), in consideration of EarlyBirdCapital, Inc.
("EBC") entering into a letter of intent ("Letter of Intent") to underwrite an
initial public offering of the securities of the Company ("IPO") and embarking
on the IPO process, hereby agrees as follows (certain capitalized terms used
herein are defined in paragraph 11 hereof):

                  1. If the Company solicits approval of its stockholders of a
Business Combination, the undersigned will vote all Insider Shares owned by him
in accordance with the majority of the votes cast by the holders of the IPO
Shares.

                  2. In the event that the Company fails to consummate a
Business Combination within 18 months from the effective date ("Effective Date")
of the registration statement relating to the IPO (or 24 months under the
circumstances described in the prospectus relating to the IPO), the undersigned
will take all reasonable actions within his power to cause the Trust Fund (as
defined in the Letter of Intent) to be liquidated and distributed to the holders
of the IPO Shares as soon as reasonably practicable. The undersigned hereby
waives any and all right, title, interest or claim of any kind in or to any
distribution the Trust Fund as a result of such liquidation with



Millstream II Acquisition Corporation
EarlyBirdCapital, Inc.
October 4, 2004
Page 2

respect to the undersigned's Insider Shares ("Claim") and hereby waives any
Claim the undersigned may have in the future as a result of, or arising out of,
any contracts or agreements with the Company and will not seek recourse against
the Trust Fund for any reason whatsoever.

                  3. In order to minimize potential conflicts of interest which
may arise from multiple affiliations, the undersigned agrees to present to the
Company for its consideration, prior to presentation to any other person or
entity, any suitable opportunity to acquire an operating business, until the
earlier of the consummation by the Company of a Business Combination, the
distribution of the Trust Fund or until such time as the undersigned ceases to
be an officer or director of the Company, subject to any pre-existing fiduciary
obligations the undersigned might have.

                  4. The undersigned acknowledges and agrees that the Company
will not consummate any Business Combination which involves a company which is
affiliated with any of the Insiders unless the Company obtains an opinion from
an independent investment banking firm reasonably acceptable to EBC that the
business combination is fair to the Company's stockholders from a financial
perspective.

                  5. Neither the undersigned, any member of the family of the
undersigned, nor any Affiliate of the undersigned will be entitled to receive
and will not accept any compensation for services rendered to the Company prior
to the consummation of the Business Combination; provided that the undersigned
shall be entitled to reimbursement from the Company for their out-of-pocket
expenses incurred in connection with seeking and consummating a Business
Combination.

                  6. Neither the undersigned, any member of the family of the
undersigned, or any Affiliate of the undersigned will be entitled to receive or
accept a finder's fee or any other compensation in the event the undersigned,
any member of the family of the undersigned or any Affiliate of the undersigned
originates a Business Combination.

                  7. The undersigned will escrow his Insider Shares for the
three year period commencing on the Effective Date subject to the terms of a
Stock Escrow Agreement which the Company will enter into with the undersigned
and an escrow agent acceptable to the Company.

                  8. The undersigned agrees to be a member of the Board of
Directors of the Company until the earlier of the consummation by the Company of
a Business Combination or the distribution of the Trust Fund. The undersigned's
biographical



Millstream II Acquisition Corporation
EarlyBirdCapital, Inc.
October 4, 2004
Page 3

information furnished to the Company and EBC and attached hereto as
Exhibit A is true and accurate in all respects, does not omit any material
information with respect to the undersigned's background and contains all of the
information required to be disclosed pursuant to Section 401 of Regulation S-K,
promulgated under the Securities Act of 1933. The undersigned's Questionnaire
furnished to the Company and EBC and annexed as Exhibit B hereto is true and
accurate in all respects. The undersigned represents and warrants that:

              (a) he is not subject to or a respondent in any legal action for,
any injunction, cease-and-desist order or order or stipulation to desist or
refrain from any act or practice relating to the offering of securities in any
jurisdiction;

              (b) he has never been convicted of or pleaded guilty to any crime
(i) involving any fraud or (ii) relating to any financial transaction or
handling of funds of another person, or (iii) pertaining to any dealings in any
securities and he is not currently a defendant in any such criminal proceeding;
and

              (c) he has never been suspended or expelled from membership in any
securities or commodities exchange or association or had a securities or
commodities license or registration denied, suspended or revoked.

                  9. The undersigned has full right and power, without violating
any agreement by which he is bound, to enter into this letter agreement and to
serve as a member of the Board of Directors of the Company.

                  10. The undersigned authorizes any employer, financial
institution, or consumer credit reporting agency to release to EBC and its legal
representatives or agents (including any investigative search firm retained by
EBC) any information they may have about the undersigned's background and
finances ("Information"). Neither EBC nor its agents shall be violating the
undersigned's right of privacy in any manner in requesting and obtaining the
Information and the undersigned hereby releases them from liability for any
damage whatsoever in that connection.

                  11. As used herein, (i) a "Business Combination" shall mean an
acquisition by merger, capital stock exchange, asset or stock acquisition,
reorganization or otherwise, of an operating business selected by the Company;
(ii) "Insiders" shall mean all officers, directors and stockholders of the
Company immediately prior to the IPO; (iii) "Insider Shares" shall mean all of
the shares of Common Stock of the Company owned by an Insider prior to the IPO;
and (iv) "IPO Shares" shall mean the shares of Common Stock issued in the
Company's IPO.



Millstream II Acquisition Corporation
EarlyBirdCapital, Inc.
October 4, 2004
Page 4


                                                  Dr. Heinz C. Schimmelbusch
                                                  --------------------------
                                                  Print Name of Insider


                                                  /s/ Dr. Heinz C. Schimmelbusch
                                                  ------------------------------
                                                  Signature





EXHIBIT A

     DR. HEINZ C. SCHIMMELBUSCH has been a member of our board of directors
since our inception. Since January 1997, he has served as managing director of
the general partner and of the management company of Safeguard International.
Since April 2003, Dr. Schimmelbusch has served as chairman of the board and
chief executive officer of Timminco Limited, a publicly held Canadian company
that manufactures and supplies magnesium products. Since July 1998, Dr.
Schimmelbusch has served as chairman of the board and a director of Metallurg,
Inc. and has served as its chief executive officer since November 2002. He has
also served as president, chief executive officer and a director of Metallurg
Holdings, Inc. since July 1998. Dr. Schimmelbusch has also been chairman and
chief executive officer of Allied Resource Corporation, a global technology
based industrial services company, since January 1994. Since June 2003, Dr.
Schimmelbusch has served as a member of the board of directors of MMC Norilsk
Nickel, a producer of nickel, copper, cobalt, palladium, platinum and other
precious metals (gold, silver), selenium, tellurium, technical sulfur, hard coal
and other materials for industrial needs with its securities listed on the
London, Moscow and Berlin Stock Exchanges and the Over The Counter Bulletin
Board. Dr. Schimmelbusch also served as a member of the board of directors of
NationsHealth, Inc. from August 2003 until August 2004. Dr. Schimmelbusch also
served as a member of the Presidency of the German Industry Association in
Cologne, Germany from January 1992 to January 1993 and chairman of its
Environmental Committee and the vice president and member of the Executive
Committee of the International Chamber of Commerce (ICC) in Paris, France from
January 1992 to January 1993. He also chaired the International Advisory
Committee of the Austrian Chancellor for which he was awarded the Golden Cross
of Honor for services to the Republic of Austria. Dr. Schimmelbusch received a
graduate degree and Ph.D. in economics from the University of Tubingen, Germany.