Document:

INVESTMENT
MANAGEMENT TRUST AGREEMENT

 

This
Agreement is made as of , 2005 by and between Fortress America Acquisition
Corporation (the “Company”) and American Stock Transfer & Trust Company
(“Trustee”).

 

WHEREAS,
the Company’s Registration Statement on Form S-1, No. 333-123504
(“Registration Statement”), for its initial public offering of securities
(“IPO”) has been declared effective as of the date hereof by the Securities and
Exchange Commission (“Effective Date”); and

 

WHEREAS,
Sunrise Securities Corp. (“Sunrise”) is acting as the representative of the
underwriters in the IPO; and

 

WHEREAS,
as described in the Company’s Registration Statement, and in accordance with the
Company’s Certificate of Incorporation, $37,660,000 of the gross proceeds of the
IPO ($43,309,000 if the underwriters over-allotment option is exercised in full)
will be delivered to the Trustee to be deposited and held in a trust account for
the benefit of the Company and the holders of the Company’s common stock, par
value $.0001 per share, issued in the IPO as hereinafter provided and in the
event the Units are registered in Colorado, pursuant to
Section 11-51-302(6) of the Colorado Revised Statutes. A copy of the
Colorado Statute is attached hereto and made a part hereof (the amount to be
delivered to the Trustee will be referred to herein as the “Property”; the
stockholders for whose benefit the Trustee shall hold the Property will be
referred to as the “Public Stockholders,” and the Public Stockholders and the
Company will be referred to together as the “Beneficiaries”); and

 

WHEREAS,
the Company and the Trustee desire to enter into this Agreement to set forth the
terms and conditions pursuant to which the Trustee shall hold the
Property;

 

IT IS
AGREED:

 

1.  Agreements
and Covenants of Trustee. The
Trustee hereby agrees and covenants to:

 

(a)  Hold the
Property in trust for the Beneficiaries in accordance with the terms of this
Agreement, including the terms of Section 11-51-302(6) of the Colorado
Statute, in a segregated trust account (“Trust Account”) established by the
Trustee at a branch of JPMorgan Chase NY Bank selected by the
Trustee;

 

(b)  Manage,
supervise and administer the Trust Account subject to the terms and conditions
set forth herein;

 

(c)  In a
timely manner, upon the instruction of the Company, to invest and reinvest the
Property in any “Government Security.” As used herein, Government Security means
any Treasury Bill issued by the United States, having a maturity of one hundred
and eighty days or less;

 

(d)  Collect
and receive, when due, all principal and income arising from the Property, which
shall become part of the “Property,” as such term is used herein;

 

(e)  Notify
the Company of all communications received by it with respect to any Property
requiring action by the Company;

 

(f)  Supply
any necessary information or documents as may be requested by the Company in
connection with the Company’s preparation of the tax returns for the Trust
Account;

 

(g)  Participate
in any plan or proceeding for protecting or enforcing any right or interest
arising from the Property if, as and when instructed by the Company to do
so;

 

(h)  Render to
the Company and to Sunrise, and to such other person as the Company may
instruct, monthly written statements of the activities of and amounts in the
Trust Account reflecting all receipts and disbursements of the Trust Account;
and

 

(i)  Commence
liquidation of the Trust Account only after receipt of and only in accordance
with the terms of a letter (“Termination Letter”), in a form substantially
similar to that attached hereto as either Exhibit A or Exhibit B, signed on
behalf of the Company by its President or Chairman of the Board and Secretary,
and complete the liquidation of the Trust Account and distribute the Property in
the Trust Account only as directed in the Termination Letter and the other
documents referred to therein. The Trustee understands and agrees that
disbursements from the Trust Account shall be made only pursuant to a duly
executed Termination Letter, together with the other documents referenced
herein. In all cases, the Trustee shall provide Sunrise with a copy of any
Termination Letters and/or any other correspondence that it receives with
respect to any proposed withdrawal from the Trust Account promptly after it
receives same.

 

2.  Agreements
and Covenants of the Company. The
Company hereby agrees and covenants to:

 

(a)  Give all
instructions to the Trustee hereunder in writing, signed by the Company’s
President or Chairman of the Board. In addition, except with respect to its
duties under paragraph 1(i) above, the Trustee shall be entitled to rely on, and
shall be protected in relying on, any verbal or telephonic advice or instruction
which it in good faith believes to be given by any one of the persons authorized
above to give written instructions, provided that the Company shall promptly
confirm such instructions in writing;

 

(b)  Hold the
Trustee harmless and indemnify the Trustee from and against, any and all
expenses, including reasonable counsel fees and disbursements, or loss suffered
by the Trustee in connection with any action, suit or other proceeding brought
against the Trustee involving any claim, or in connection with any claim or
demand which in any way arises out of or relates to this Agreement, the services
of the Trustee hereunder, or the Property or any income earned from investment
of the Property, except for expenses and losses resulting from the Trustee’s
gross negligence or willful misconduct. Promptly after the receipt by the
Trustee of notice of demand or claim or the commencement of any action, suit or
proceeding, pursuant to which the Trustee intends to seek indemnification under
this paragraph, it shall notify the Company in writing of such claim
(hereinafter referred to as the “Indemnified Claim”). The Trustee shall have the
right to conduct and manage the defense against such Indemnified Claim,
provided, that the Trustee shall obtain the consent of the Company with respect
to the selection of counsel, which consent shall not be unreasonably withheld.
The Company may participate in such action with its own counsel;
and

 

(c)  Pay the
Trustee an initial acceptance fee of $1,000 and an annual fee of $3,000 (it
being expressly understood that the Property shall not be used to pay such fee).
The Company shall pay the Trustee the initial acceptance fee and first year’s
fee at the consummation of the IPO and thereafter on the anniversary of the
Effective Date. The Trustee shall refund to the Company the fee (on a pro rata
basis) with respect to any period after the liquidation of the Trust Fund. The
Company shall not be responsible for any other fees or charges of the Trustee
except as may be provided in paragraph 2(b) hereof (it being expressly
understood that the Property shall not be used to make any payments to the
Trustee under such paragraph).

 

3.  Limitations
of Liability. The
Trustee shall have no responsibility or liability to:

 

(a)  Take any
action with respect to the Property, other than as directed in paragraph 1
hereof and the Trustee shall have no liability to any party except for liability
arising out of its own gross negligence or willful misconduct;

 

(b)  Institute
any proceeding for the collection of any principal and income arising from, or
institute, appear in or defend any proceeding of any kind with respect to, any
of the Property unless and until it shall have received instructions from the
Company given as provided herein to do so and the Company shall have advanced or
guaranteed to it funds sufficient to pay any expenses incident
thereto;

 

(c)  Change
the investment of any Property, other than in compliance with
paragraph 1(c);

 

(d)  Refund
any depreciation in principal of any Property;

 

2

(e)  Assume
that the authority of any person designated by the Company to give instructions
hereunder shall not be continuing unless provided otherwise in such designation,
or unless the Company shall have delivered a written revocation of such
authority to the Trustee;

 

(f)  The other
parties hereto or to anyone else for any action taken or omitted by it, or any
action suffered by it to be taken or omitted, in good faith and in the exercise
of its own best judgment, except for its gross negligence or willful misconduct.
The Trustee 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 Trustee), 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 Trustee, in good faith, to be
genuine and to be signed or presented by the proper person or persons. The
Trustee shall not be bound by any notice or demand, or any waiver, modification,
termination or rescission of this agreement or any of the terms hereof, unless
evidenced by a written instrument delivered to the Trustee signed by the proper
party or parties and, if the duties or rights of the Trustee are affected,
unless it shall give its prior written consent thereto;

 

(g)  Verify
the correctness of the information set forth in the Registration Statement or to
confirm or assure that any acquisition made by the Company or any other action
taken by it is as contemplated by the Registration Statement; and

 

(h)  Pay any
taxes on behalf of the Trust Account (it being expressly understood that the
Property shall not be used to pay any such taxes and that such taxes, if any,
shall be paid by the Company from funds not held in the Trust
Account).

 

4.  Termination. This
Agreement shall terminate as follows:

 

(a)  If the
Trustee gives written notice to the Company that it desires to resign under this
Agreement, the Company shall use its reasonable efforts to locate a successor
trustee. At such time that the Company notifies the Trustee that a successor
trustee has been appointed by the Company and has agreed to become subject to
the terms of this Agreement, the Trustee shall transfer the management of the
Trust Account to the successor trustee, including but not limited to the
transfer of copies of the reports and statements relating to the Trust Account,
whereupon this Agreement shall terminate; provided, however, that, in the event
that the Company does not locate a successor trustee within ninety days of
receipt of the resignation notice from the Trustee, the Trustee may submit an
application to have the Property deposited with the United States District Court
for the Southern District of New York and upon such deposit, the Trustee shall
be immune from any liability whatsoever;

 

(b)  At such
time that the Trustee has completed the liquidation of the Trust Account in
accordance with the provisions of paragraph 1(i) hereof, and distributed the
Property in accordance with the provisions of the Termination Letter, this
Agreement shall terminate except with respect to Paragraph 2(b); or

 

(c)  On such
date after , 2006 when the Trustee deposits the Property with the United States
District Court for the Southern District of New York in the event that, prior to
such date, the Trustee has not received a Termination Letter from the Company
pursuant to paragraph 1(i).

 

5.  Miscellaneous.

 

(a)  The
Company and the Trustee each acknowledge that the Trustee will follow the
security procedures set forth below with respect to funds transferred from the
Trust Account. Upon receipt of written instructions, the Trustee will confirm
such instructions with an Authorized Individual at an Authorized Telephone
Number listed on the attached Exhibit C.  The Company and the Trustee
will each restrict access to confidential information relating to such security
procedures to authorized persons. Each party must notify the other party
immediately if it has reason to believe unauthorized persons may have obtained
access to such information, or of any change in its authorized personnel. In
executing funds transfers, the Trustee will rely upon account numbers or other
identifying numbers of a beneficiary, beneficiary’s bank or intermediary bank,
rather than names. The Trustee shall not be liable for any loss, liability or
expense resulting from any error in an account number or other identifying
number, provided it has accurately transmitted the numbers
provided.

 

3

(b)  This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of New York, without giving effect to conflict of laws. It may
be executed in several counterparts, each one of which shall constitute an
original, and together shall constitute but one instrument.

 

(c)  This
Agreement contains the entire agreement and understanding of the parties hereto
with respect to the subject matter hereof. This Agreement or any provision
hereof may only be changed, amended or modified by a writing signed by each of
the parties hereto; provided, however, that no such change, amendment or
modification may be made without the prior written consent of Sunrise. As to any
claim, cross-claim or counterclaim in any way relating to this Agreement, each
party waives the right to trial by jury.

 

(d)  The
parties hereto consent to the jurisdiction and venue of any state or federal
court located in the City of New York for purposes of resolving any disputes
hereunder.

 

(e)  Any
notice, consent or request to be given in connection with any of the terms or
provisions of this Agreement shall be in writing and shall be sent by express
mail or similar private courier service, by certified mail (return receipt
requested), by hand delivery or by facsimile transmission:

 

If to the Trustee, to:

	 	 
	 	 American Stock Transfer
	 	 & Trust Company
	 	 6201 15th Avenue
	 	 Brooklyn, NY 11219
	 	 Attn: President
	 	 Fax No.: 
	 	 

If to the
Company, to:

 

	 	Fortress America Acquisition
      Corporation
	 	3 Bethesda Metro Center
	 	Suite 700
	 	Bethesda, MD 20814
	 	Attn: C. Thomas McMillen,
  Chairman
	 	Fax No.:
	 	 

in either
case with a copy to:

 

	 	Sunrise Securities Corp.
	 	641 Lexington Avenue, 25th
      Floor
	 	New York, New York 10022
	 	Attn: Nathan Low, President
	 	Fax No.: (212) 750-7277
	 	 

(f)  This
Agreement may not be assigned by the Trustee without the prior consent of the
Company.

 

(g)  Each of
the Trustee and the Company hereby represents that it has the full right and
power and has been duly authorized to enter into this Agreement and to perform
its respective obligations as contemplated hereunder. The Trustee acknowledges
and agrees that it shall not make any claims or proceed against the Trust
Account, including by way of set-off, and shall not be entitled to any funds in
the Trust Account under any circumstance.

 

4

IN
WITNESS WHEREOF, the parties have duly executed this Investment Management Trust
Agreement as of the date first written above.

 

 

 

 

 

  

	 	 	 
	 	
      AMERICAN STOCK
      TRANSFER

      & TRUST COMPANY, as Trustee

	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

      Name: 
	 	Title: 

 

	 	 	 
	 	FORTRESS
      AMERICA  ACQUISITION CORPORATION
	 
 	 
 	 
 
	Date: 	By:  	/s/ 
	 	
      

      Name: C. Thomas McMillen 
	 	Title:
Chairman

 

5

EXHIBIT
A

 

[Letterhead
of Company]

 

[Insert
date]

 

American
Stock Transfer

&
Trust Company

6201 15th
Avenue

Brooklyn,
NY 11219

Attn:
President

 

	
      Re:
	
      Trust
      Account No. Termination Letter

 

Gentlemen:

 

Pursuant
to paragraph 1(i) of the Investment Management Trust Agreement between Fortress
America Acquisition Corporation (“Company”) and American Stock Transfer &
Trust Company (“Trustee”), dated as of , 2005 (“Trust Agreement”), this is to
advise you that the Company has entered into an agreement (“Business Agreement”)
with (“Target Business”) to consummate a business combination with Target
Business (“Business Combination”) on or about
[insert date]. The
Company shall notify you at least 48 hours in advance of the actual date of the
consummation of the Business Combination (“Consummation Date”).

 

In
accordance with the terms of the Trust Agreement, we hereby authorize you to
commence liquidation of the Trust Account to the effect that, on the
Consummation Date, all of funds held in the Trust Account will be immediately
available for transfer to the account or accounts that the Company shall direct
on the Consummation Date.

 

On the
Consummation Date (i) counsel for the Company shall deliver to you written
notification that (a) the Business Combination has been consummated and (b) if
applicable, the provisions of Section 11-51-302(6) and Rule 51-3.4 of the
Colorado Statute have been met, and (ii) the Company shall deliver to you
written instructions with respect to the transfer of the funds held in the Trust
Account (“Instruction Letter”). You are hereby directed and authorized to
transfer the funds held in the Trust Account immediately upon your receipt of
the counsel’s letter and the Instruction Letter, in accordance with the terms of
the Instruction Letter. In the event that certain deposits held in the Trust
Account may not be liquidated by the Consummation Date without penalty, you will
notify the Company of the same and the Company shall direct you as to whether
such funds should remain in the Trust Account and distributed after the
Consummation Date to the Company. Upon the distribution of all the funds in the
Trust Account pursuant to the terms hereof, the Trust Agreement shall be
terminated.

 

In the
event that the Business Combination is not consummated on the Consummation Date
described in the notice thereof and we have not notified you on or before the
original Consummation Date of a new Consummation Date, then the funds held in
the Trust Account shall be reinvested as provided in the Trust Agreement on the
business day immediately following the Consummation Date as set forth in the
notice.

 

 

	 	Very truly yours, 
	 	 
	 	FORTRESS AMERICA ACQUISITION
      CORPORATION 
	 	 
	 	By:  
	 	 
	 	By:   
	 	 

 

A-1

EXHIBIT
B

 

[Letterhead
of Company]

 

[Insert
date]

 

American
Stock Transfer

&
Trust Company

6201 15th
Avenue

Brooklyn,
NY 11219

Attn:
President

 

	
      Re:
	
      Trust
      Account No. Termination Letter

 

Gentlemen:

 

Pursuant
to paragraph 1(i) of the Investment Management Trust Agreement between Fortress
America Acquisition Corporation (“Company”) and American Stock Transfer &
Trust Company (“Trustee”), dated as of ________, 2005 (“Trust Agreement”), this
is to advise you that the Board of Directors of the Company has voted to
dissolve and liquidate the Trust Account. Attached hereto is a copy of the
minutes of the meeting of the Board of Directors of the Company relating
thereto, certified by the Secretary of the Company as true and correct and in
full force and effect.

 

In
accordance with the terms of the Trust Agreement, we hereby (a) certify to you
that, if applicable, the provisions of Section 11-51-302(6) and Rule 51-3.4
of the Colorado Statute have been met and (b) authorize you, to commence
liquidation of the Trust Account. You will notify the Company and JPMorgan Chase
NY Bank (“Designated Paying Agent”) in writing as to when all of the funds in
the Trust Account will be available for immediate transfer (“Transfer Date”).
The Designated Paying Agent shall thereafter notify you as to the account or
accounts of the Designated Paying Agent that the funds in the Trust Account
should be transferred to on the Transfer Date so that the Designated Paying
Agent may commence distribution of such funds in accordance with the Company’s
instructions. You shall have no obligation to oversee the Designated Paying
Agent’s distribution of the funds. Upon the payment to the Designated Paying
Agent of all the funds in the Trust Account, the Trust Agreement shall be
terminated.

 

	 	Very truly yours,
	 	 
	 	FORTRESS AMERICA ACQUISITION
      CORPORATION
	 	 
	 	By: 
	 	 
	 	By:   

B-1

EXHIBIT
C

 

	
      AUTHORIZED
      INDIVIDUAL(S)
	 	
      AUTHORIZED

	
      FOR
      TELEPHONE CALL BACK
	 	
      TELEPHONE
      NUMBER(S)

	
       
	
       
	
       

	
      Company:
	
       
	
       

	
       
	
       
	
       

	
      Fortress
      America Acquisition Corporation
	
       
	
       

	
      3
      Bethesda Metro Center

      Suite
      700

      Bethesda,
      MD 20814
	
       
	
       

	
      Attn:
      C. Thomas McMillen or Harvey Weiss
	
       
	
      [Telephone]

	
       
	
       
	
       

	
      Trustee:
	
       
	
       

	
       
	
       
	
       

	
      American
      Stock Transfer
	
       
	
       

	
      &
      Trust Company
	
       
	
       

	
      6201
      15th Avenue
	
       
	
       

	
      Brooklyn,
      NY 11219
	
       
	
       

	
      Attn:
      Steven G. Nelson, Chairman
	
       
	
      [Telephone]

 

C-1STOCK
ESCROW AGREEMENT

 

STOCK
ESCROW AGREEMENT, dated as of
                  ,
2005 (“Agreement”), by and among FORTRESS AMERICA ACQUISITION CORPORATION, a
Delaware corporation (“Company”), WASHINGTON CAPITAL ADVISORS, LLC, HARVEY L.
WEISS, DAVID J. MITCHELL, DONALD L. NICKLES, ASA HUTCHINSON, PALADIN HOMELAND
SECURITY FUND, L.P., PALADIN HOMELAND SECURITY FUND (NY CITY), L.P., PALADIN
HOMELAND SECURITY FUND (CA), L.P. and PALADIN HOMELAND SECURITY FUND (CAYMAN
ISLANDS), L.P. (collectively “Initial Stockholders”) and AMERICAN STOCK TRANSFER
& TRUST COMPANY, a New York corporation (“Escrow Agent”).

 

WHEREAS,
the Company has entered into an Underwriting Agreement, dated
         , 2005 (“Underwriting
Agreement”), with Sunrise Securities Corp. (“Sunrise”) acting as representative
of the several underwriters (collectively, the “Underwriters”), pursuant to
which, among other matters, the Underwriters have agreed to purchase 7,000,000
units (“Units”) of the Company.  Each Unit consists of one share of the
Company’s Common Stock, par value $.0001 per share, and two Warrants, each
Warrant to purchase one share of Common Stock, all as more fully described in
the Company’s final Prospectus, dated
           , 2005
(“Prospectus”) comprising part of the Company’s Registration Statement on Form
S-1 (File No. 333-123504) under the Securities Act of 1933, as amended
(“Registration Statement”), declared effective on
                    ,
2005 (“Effective Date”).

 

WHEREAS,
the Initial Stockholders 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 (collectively “Escrow Shares”), in
escrow as hereinafter provided.

 

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

 

IT IS
AGREED:

 

1.            
Appointment of Escrow Agent. 
The Company and the Initial Stockholders 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 Escrow Shares. 
On or before the Effective Date, each of the Initial Stockholders shall deliver
to the Escrow Agent certificates representing his respective Escrow Shares, to
be held and disbursed subject to the terms and conditions of this
Agreement.  Each Initial Stockholder acknowledges that the certificate
representing his Escrow Shares is legended to reflect the deposit of such Escrow
Shares under this Agreement.

 

3.            
Disbursement of the Escrow Shares. 
The Escrow Agent shall hold the Escrow Shares until the third anniversary of the
Effective Date (“Escrow Period”), on which date it shall, upon written
instructions from each Initial Stockholder, disburse each of the Initial
Stockholder’s Escrow Shares to such Initial Stockholder; 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, after the
Company consummates a Business Combination (as such term is defined in the
Registration Statement), it (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, then the Escrow
Agent will, upon receipt of a certificate, executed by the Chief Executive
Officer or Chief Financial Officer of the Company, in form reasonably acceptable
to the Escrow Agent, that such transaction is then being consummated, release
the Escrow Shares to the Initial Stockholders upon consummation of the
transaction so that they can similarly participate.  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 Initial Stockholders in Escrow Shares.

 

4.1          
Voting Rights as a Stockholder. 
Subject to the terms of the Insider Letter described in Section 4.4 hereof
and except as herein provided, the Initial Stockholders shall retain all of
their rights as stockholders of the Company during the Escrow Period, including,
without limitation, the right to vote such shares.

 

4.2          
Dividends and Other Distributions in Respect of the Escrow
Shares. 
During the Escrow Period, all dividends payable in cash with respect to the
Escrow Shares shall be paid to the Initial Stockholders, 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.

 

4.3          
Restrictions on Transfer. 
During the Escrow Period, no sale, transfer or other disposition may be made of
any or all of the Escrow Shares except (i) by gift to a member of Initial
Stockholder’s immediate family or to a trust, the beneficiary of which is an
Initial Stockholder or a member of an Initial Stockholder’s immediate family,
(ii) by virtue of the laws of descent and distribution upon death of any Initial
Stockholder, (iii) pursuant to a qualified domestic relations order, or (iv) to
any partner, member or affiliate of any Initial Stockholder organized as an
entity;
provided,
however, that
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 Initial Stockholder
transferring the Escrow Shares.  During the Escrow Period, the Initial
Stockholders shall not pledge or grant a security interest in the Escrow Shares
or grant a security interest in their rights under this Agreement.

 

4.4          
Insider Letters. 
Each of the Initial Stockholders has executed a letter agreement with Sunrise
and the Company, 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 Initial Stockholder 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 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.

 

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 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 Initial
Stockholders 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, 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.

 

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 Company and a majority
of the Initial Stockholders, 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 or its own
willful misconduct.

 

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.

 

6.2           Third
Party Beneficiaries. 
Each of the Initial Stockholders hereby acknowledges that the Underwriters are
third party beneficiaries of this Agreement and this Agreement may not be
modified or changed without the prior written consent of Sunrise.

 

6.3          
Entire Agreement. 
This Agreement contains 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, two days after the date of mailing, as
follows:

 

If to the
Company, to:

 

Fortress
America Acquisition Corporation

3
Bethesda Metro Center

Suite
700

Bethesda,
MD 20814

Attn:  
Chairman

 

If to a
Stockholder, to his address set forth in Exhibit A.

 

and if to
the Escrow Agent, to:

 

American
Stock Transfer & Trust Company

6201
15th
Avenue

Brooklyn,
New York 11219

Attn:  
President

 

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

 

Squire,
Sanders & Dempsey L.L.P.

8000
Towers Crescent Drive, 14th 

Tysons
Corner, VA 22182

Attn:
James J. Maiwurm, Esq. 

and:

 

Sunrise
Securities Corp.

641
Lexington Avenue

25th
Floor

New York,
New York 10022

Attn:       Nathan
Low, President

 

and:

 

Mintz
Levin Cohn Ferris Glovsky and Popeo, P.C.

666 Third
Avenue

25th
Floor

New York,
New York 10017

Attn:       Kenneth
R. Koch, 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 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(s) specified in the
Prospectus.

 

 

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

 

 

	 	
      FORTRESS
      AMERICA ACQUISITION CORPORATION

	
       
	
       

	
       
	
       

	 	
      By:
	 	 
	 	 	
      C.
      Thomas McMillen, Chairman

	
       
	
       

	
       
	
       

	 	
      INITIAL
      STOCKHOLDERS:

	
       
	
       

	
       
	
       WASHINGTON
      CAPITAL ADVISORS, LLC

	
       
	
       
	
       

	 	
      By:
      C. Thomas McMillen

      Title:

	
       
	
       

	
       
	
       

	
       
	
       
	
       

	 	
      Harvey
      L. Weiss

	
       
	
       

	
       
	
       

	
       
	
       
	
       

	 	
      David
      J. Mitchell

	 	 
	 	
       

      ________________________________________________
	
       

	 	
      Asa
      Hutchinson
	
       

	 	
       

       

      ________________________________________________

      Donald
      L. Nickles

       

PALADIN
HOMELAND SECURITY FUND, L.P.

	 	
      By:
	
      PALADIN
      HOMELAND SECURITY HOLDINGS, LLC, its General
Partner

	 	 	 

	 	 	By:

	 	 	 Michael R. Steed, Authorized
Signatory

		 	 

PALADIN
HOMELAND SECURITY FUND (NY CITY), L.P.

	 	
      By:
	
      PALADIN
      HOMELAND SECURITY HOLDINGS, LLC, its General
Partner

	 	 	 

	 	 	By: 

	 	 	Michael R. Steed, Authorized
Signatory

 

PALADIN
HOMELAND SECURITY FUND (CA), L.P.

	 	
      By:
	
      PALADIN
      HOMELAND SECURITY HOLDINGS, LLC, its General
Partner

	 	 	 

	 	 	By:

	 	 	Michael R. Steed, Authorized
Signatory

 

PALADIN
HOMELAND SECURITY FUND (CAYMAN ISLANDS), L.P.

	 	
      By:
	
      PALADIN
      HOMELAND SECURITY HOLDINGS (CAYMAN ISLANDS), LTD., its General
      Partner

	 	 	 

	 	 	By: 

	 	 	Michael R. Steed, Authorized
Signatory 

 

	 	 	 
	 	
      AMERICAN
      STOCK TRANSFER

      & TRUST COMPANY

	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

      Name:
	 	Title:

 

EXHIBIT
A

 

	
      Name
      and Address of

      Initial
      Stockholder
	
       
	
      Number

      of
      Shares
	
       
	
      Stock

      Certificate
      Number
	
       
	
      Date
      of

      Insider
      Letter
	
       

	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	 	 	 	 	 	 	 	
       

	
      Washington
      Capital Advisors, LLC

      [Address]
	 	
      575,000
	 	 	 	 	
       

	 	 	 	 	 	 	 	
       

	
      Harvey
      L. Weiss

      [Address]
	 	
      575,000
	 	 	 	 	
       

	 	 	 	 	 	 	 	
       

	
      David
      J. Mitchell

      [Address]
	 	
      150,000
	 	 	 	 	
       

	 	 	 	 	 	 	 	
       

	
      Donald
      L. Nickles

      [Address]
	 	
      200,000
	 	 	 	 	
       

	 	 	 	 	 	 	 	
       

	
      Asa
      Huthinson

      [Address]
	 	
      200,000
	 	 	 	 	
       

	 	 	 	 	 	 	 	
       

	
      Paladin
      Homeland Security Fund, L.P.

      [Address]
	 	
      24,765
	 	 	 	 	
       

	 	 	 	 	 	 	 	
       

	
      Paladin
      Homeland Security Fund (NY City), L.P.

      [Address]
	 	
      15,926
	 	 	 	 	
       

	 	 	 	 	 	 	 	
       

	
      Paladin
      Homeland Security Fund (CA), L.P.

      [Address]
	 	
      5,553
	 	 	 	 	
       

	 	 	 	 	 	 	 	
       

	
      Paladin
      Homeland Security Fund (Cayman Islands), L.P.

      [Address]
	 	
      3,756

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]