EXHIBIT
      10.5

    
 

    _____________
      ___, 2008

    


    


    Staccato
      Acquisition Corp.

    825
      Third
      Avenue, 40th
      Floor

    New
      York,
      New York 10022

    


    EarlyBirdCapital,
      Inc.

    275
      Madison Avenue, 27th
      Floor

    New
      York,
      New York 10016

    


    
      	 	 	
              Re:

            	
              Initial
                Public Offering

            


    

    


    Gentlemen:

    


    The
      undersigned stockholder of Staccato Acquisition Corp. (“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 13
      hereof):

     

    1.  If
      the
      Company solicits approval of its stockholders of a Business Combination, the
      undersigned will vote all Insider Shares beneficially owned by him in accordance
      with the majority of the shares of common stock voted by the holders of the
      IPO
      Shares. If the Company seeks stockholder approval for its dissolution and plan
      of distribution prior the consummation of a Business Combination, the
      undersigned agrees to vote all Insider Shares in favor of such dissolution
      and
      plan of distribution.

     

    2.  The
      undersigned hereby waives any and all right, title, interest or claim of any
      kind in or to any distribution of the Trust Fund and any remaining net assets
      of
      the Company as a result of such liquidation with respect to his 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.  The
      undersigned acknowledges and agrees that the Company will not: (i)
      acquire an entity with which the Insiders, through their other business
      activities, had acquisition or investment discussions in the past; (ii)
      consummate an initial Business Combination with an entity which is, or has
      been
      within the past five years, affiliated with any of the Insiders or their
      affiliates, including an entity that is either a portfolio company of, or has
      otherwise received a material financial investment from, any private equity
      fund
      or investment company (or an affiliate thereof) that is affiliated with such
      individuals; or (iii) enter into a Business Combination where the Company
      acquires less than 100% of a target business and any Insider acquires the
      remaining portion of such target business, unless, in any of such cases, 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 unaffiliated stockholders from a financial point of view.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    5.  Neither
      the undersigned, any member of the family of the undersigned, nor any Affiliate
      of the undersigned will be entitled to receive or accept a finder’s fee,
      consulting 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. 

     

    6.  The
      undersigned will escrow all of the Insider Units, subject to the terms of a
      Securities Escrow Agreement which the Company will enter into with the
      undersigned and an escrow agent acceptable to the Company. The undersigned
      further agrees that he will not sell, transfer or assign (except to permitted
      transferees) any Insider Warrants until after the consummation by the Company
      of
      a Business Combination.

     

    7.  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.

     

    8.  The
      undersigned has full right and power, without violating any agreement by which
      he is bound, to enter into this letter agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.  The
      undersigned hereby waives his right to exercise conversion rights with respect
      to any shares of the Company’s common stock owned or to be owned by the
      undersigned, directly or indirectly, and agrees that he will not seek conversion
      with respect to such shares in connection with any vote to approve a Business
      Combination.

     

    10.  The
      undersigned hereby agrees to not propose, or vote in favor of, an amendment
      to
      the Company’s Certificate of Incorporation to extend the period of time in which
      the Company must consummate a Business Combination prior to its liquidation.
      Should such a proposal be put before stockholders other than through actions
      by
      the undersigned, the undersigned hereby agrees to vote against such proposal.
      This paragraph may not be modified or amended under any circumstances. The
      undersigned further agrees not to enter into any type of transaction, the
      purpose of which is to induce a public stockholder to vote for approval of
      the
      Company’s initial Business Combination (including payments of money, transfers
      of securities or purchases of securities).

     

    11.  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.
      The
      undersigned hereby (i) agrees that any action, proceeding or claim against
      him
      arising out of or relating in any way to this letter agreement (a “Proceeding”)
      shall be brought and enforced in the courts of the State of New York of the
      United States of America for the Southern District of New York, and irrevocably
      submits to such jurisdiction, which jurisdiction shall be exclusive, and (ii)
      waives any objection to such exclusive jurisdiction and that such courts
      represent an inconvenient forum. If for any reason such agent is unable to
      act
      as such, the undersigned will promptly notify the Company and EBC and appoint
      a
      substitute agent acceptable to EBC within 30 days and nothing in this letter
      will affect the right of either party to serve process in any other manner
      permitted by law.

     

    12.  This
      letter agreement shall be governed by and construed and enforced in accor-dance
      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.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13.  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; (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 included in the
      Insider Units; (iv) “Insider Units” shall mean all of the units of the Company
      acquired by the Insiders prior to the IPO (including the underlying Insider
      Shares and warrants (and shares reserved for issuance upon exercise of such
      warrants)); (v) “Insider Warrants” shall mean the warrants being purchased by
      the Insiders in a private placement transaction simultaneously with the
      consummation of the IPO; and (vi) “IPO Shares” shall mean the shares of Common
      Stock issued in the Company’s IPO.

     

     

    Gregory
      R. Monahan

    Print
      name

    


    


    __________________________

    Signature