Document:

Unassociated Document

    INVESTMENT
      MANAGEMENT TRUST AGREEMENT

     

    This
      Agreement is made as of _____________, 2006 by and between Fortissimo
      Acquisition Corp. (the “Company”) and American Stock Transfer & Trust
      Company (“Trustee”).

    

    WHEREAS,
      the Company’s registration statement on Form S-1, No. 333-_______
      (“Registration Statement”), for its initial public offering of securities
      (“IPO”) has been declared effective as of the date hereof (“Effective Date”) by
      the Securities and Exchange Commission (capitalized terms used herein and not
      otherwise defined shall have the meanings set forth in the Registration
      Statement); and 

    

    WHEREAS,
      EarlyBirdCapital, Inc. (“EBC”) is acting as the underwriter in the IPO;
      and

    

    WHEREAS,
      as described in the Registration Statement, and in accordance with the Company’s
      Certificate of Incorporation, $23,160,000 of the gross proceeds of the IPO
      and
      sale of the Insider Units (as defined in the Registration Statement)
      ($26,634,000 if the underwriter’s 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; 

    

    (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 United States “government securities” within the meaning of Section
      2(a)(16) of the Investment Company Act of 1940 having a maturity of 180 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 its returns;

    

    (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 EBC, 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 and promptly 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 hereto, signed on behalf of the Company by its Chairman of the
      Board or Vice President and Secretary or Assistant Secretary and affirmed by
      counsel for the Company, 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; provided,
      however,
      that in
      the event that a Termination Letter has not been received by the Trustee by
      the
      18-month anniversary of the closing (“Closing”) of the IPO (“First Date”), or
      the 24-month anniversary of the Closing (“Last Date”) in the event that a letter
      of intent, agreement in principle or definitive agreement for a Business
      Combination has been executed on or prior to the First Date but the Business
      Combination has not been consummated by the First Date, the Trust Account shall
      be liquidated in accordance with the procedures set forth in the Termination
      Letter attached as Exhibit B hereto to the stockholders of record on the Last
      Date. In all cases, the Trustee shall provide EBC 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
      Chairman of the Board, Chief Executive Officer or Vice President. 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;

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (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 Trustee may not agree to settle any Indemnified Claim without the prior
      written consent of the Company unless such settlement includes a full release
      of
      the Company with respect to such Indemnified Claim. The Company may participate
      in such action with its own counsel; 

    

    (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);

    

    (d) Provide
      to the Trustee any letter of intent, agreement in principle or definitive
      agreement for a Business Combination that is executed on or prior to the First
      Date; and

    

    (e) In
      connection with any vote of the Company’s stockholders regarding a Business
      Combination, provide to the Trustee an affidavit or certificate of a firm
      regularly engaged in the business of soliciting proxies and/or tabulating
      stockholder votes (which firm may be the Trustee) verifying the vote of the
      Company’s stockholders regarding such Business Combination.

    

    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);

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

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

    

    (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, except with respect to Paragraph
      2(b);
      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; or 

    

    (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).

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    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.

    

    (b) This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of Delaware, without giving effect to conflicts of law
      principles that would result in the application of the substantive laws of
      another jurisdiction. It may be executed in several original or facsimile
      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 EBC. 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, Borough of Manhattan, 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

    59
      Maiden
      Lane

                                                   
      Plaza
      Level

    New
      York,
      New York 10038

    Attn: Herb
      Lemmer

    Fax
      No.:
      (718) 331-1852

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    if
      to the
      Company, to:

     

    Fortissimo
      Acquisition Corp.

    14
      Hamelacha Street 

    Park
      Afek, Rosh Ha’ayin 48091 

    Israel

    
      	 	 	 	
              Attn:

            	
              Yuval
                Cohen

            

    

    Fax
      No.:
(___)
      ___-____

    

    in
      either
      case with a copy to:

    

    Proskauer
      Rose LLP

    1585
      Broadway

    New
      York,
      New York 10036-8299

    Attn:
       Brian
      B.
      Margolis, Esq.

    Fax
      No.:
      (212) 969-2900

    

    EarlyBirdCapital,
      Inc. 

    275
      Madison Avenue, Suite 1203

    New
      York,
      New York 10016

    Attn: David
      M.
      Nussbaum

    Fax
      No.:
      (212) 269-3796

    

    (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.

    

    (h) Each
      of
      the Company and the Trustee hereby acknowledge that EBC is a third party
      beneficiary of this Agreement.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    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:  	 
	 	
                
Name:

	 	Title:
                

      

      
        	 	 	 
	 	FORTISSIMO
                ACQUISITION CORP.
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
                Yuval Cohen
	 	Title:
                 Chief
                Executive Officer

      

    

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    EXHIBIT
      A

    

    [Letterhead
      of Company]

    

    [Insert
      date]

    

    American
      Stock Transfer 

    &
      Trust Company

    
      59
        Maiden
Lane
        

      Plaza
        Level

      New
        York,
        New York 10038
Attn:
      

    

    Re: Trust
      Account No. 530- Termination Letter

    

    Gentlemen:

    

    Pursuant
      to paragraph 1(i) of the Investment Management Trust Agreement between
      Fortissimo Acquisition Corp. (“Company”) and American Stock Transfer & Trust
      Company (“Trustee”), dated as of __________, 2006 (“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)
      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 (a) [an affidavit] [a
      certificate] of __________________, which verifies the vote of the Company’s
      stockholders in connection with the Business Combination and (b) 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.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	Very truly yours,
	 	 
	 	FORTISSIMO
              ACQUISITION CORP.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Yuval
              Cohen, Chairman of the
              Board

    

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Eli
              Blatt, Secretary

    

     

    cc:
      EarlyBirdCapital, Inc.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    

    [Letterhead
      of Company]

    

    [Insert
      date]

     

    American
      Stock Transfer 

    &
      Trust Company

    
      59
        Maiden
        Lane 

      Plaza
        Level

      New
        York,
        New York 10038
Attn:
      

    

    

    Re: Trust
      Account No. 530- Termination Letter

    

    Gentlemen:

    

    Pursuant
      to paragraph 1(i) of the Investment Management Trust Agreement between
      Fortissimo Acquisition Corp. (“Company”) and American Stock Transfer & Trust
      Company (“Trustee”), dated as of ___________, 2006 (“Trust Agreement”),
this
      is
      to advise you that the Company has been unable to effect a Business Combination
      with a Target Company within the time frame specified in the Company’s
      Certificate of Incorporation, as described in the Company’s prospectus relating
      to its IPO.

    

    In
      accordance with the terms of the Trust Agreement, we hereby (a) certify to
      you
      that 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 as promptly as practicable to the stockholders of record on the
      Last Date (as defined in the Trust Agreement). You will notify the Company
      in
      writing as to when all of the funds in the Trust Account will be available
      for
      immediate transfer (“Transfer Date”) in accordance with the terms of the Trust
      Agreement and the Certificate of Incorporation of the Company. You shall
      commence distribution of such funds in accordance with the terms of the Trust
      Agreement and the Certificate of Incorporation of the Company and you shall
      oversee the distribution of the funds. Upon the distribution of all the funds
      in
      the Trust Account, your obligations under the Trust Agreement shall be
      terminated.

    
       

      
        	 	 	 
	 	Very truly yours,
	 	 
	 	FORTISSIMO
                ACQUISITION CORP.
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Yuval
                Cohen, Chairman of the
                Board

      

      
        	 	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Eli
                Blatt,
                Secretary

      

cc:
      EarlyBirdCapital, Inc.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    

    

    
      	
              AUTHORIZED
                INDIVIDUAL(S) 

              FOR
                TELEPHONE CALL BACK

            	
              AUTHORIZED

              TELEPHONE
                NUMBER(S)

            
	 	 
	
              Company:

              

              Fortissimo
                Acquisition Corp.

              14
                Hamelacha Street

              Park
                Afek, Rosh Ha’ayin 48091

              Israel

              Attn: Yuval
                Cohen

            	011-972-3-915-7400
	 	 
	
              Trustee:

              

              American
                Stock Transfer 

              &
                Trust Company

              
                59
                  Maiden Lane

                Plaza
                  Level

                New
                  York, New York 10038.
Attn:

            	(212)
              936-5100

    

    

        

     

    
      
        
        

      

      
        11Fortissimo
      Capital Fund GP, L.P.

    14
      Hamelacha Street 

    Park
      Afek, Rosh Ha’ayin 48091 Israel 

    

    

    AGREEMENT
      TO FUND DISSOLUTION EXPENSES

    

    

    August
      7,
      2006

    

    

    To
      the
      Board of Directors of

    Fortissimo
      Acquisition Corp.

    

    Gentlemen:

    

    The
      undersigned, Fortissimo Capital Fund GP, L.P., hereby agrees as follows with
      respect to the dissolution and liquidation of Fortissimo Acquisition Corp.
      (the
“Corporation”) in the event that the Corporation does not complete a business
      combination within 18 months after the consummation of the Corporation’s initial
      public offering of securities (“IPO”) (or within 24 months after the
      consummation of the IPO if a letter of intent, agreement in principle or
      definitive agreement has been executed within 18 months after consummation
      of
      the IPO and the business combination has not yet been consummated within such
      18
      month period).

    

    In
      the
      event that the Corporation’s remaining net assets following the distribution of
      the trust account to its public stockholders (whether they purchased shares
      in
      the IPO or in the aftermarket) are insufficient to pay for the costs associated
      with the implementation and completion of the Corporation’s plan of dissolution
      , FCF will advance to the Corporation the funds necessary to complete such
      dissolution (currently anticipated to be no more than approximately $50,000)
      and
      has agreed not to seek repayment for such expenses.

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY BLANK. SIGNATURE PAGE FOLLOWS]

     

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      To
        the
        Board of Directors of

      Fortissimo
        Acquisition Corp.

      August
        7,
        2006

      Page
        2

      

      

    Very
      truly yours,

    

    FORTISSIMO
      CAPITAL FUND GP, L.P.

    

    

    By:
      /s/
      Yuval
      Cohen               
  

    Name:
      Yuval Cohen

    Title:
      Managing Partner

    

    

    

    Agreed
      To
      and Accepted By:

    

    FORTISSIMO
      ACQUISITION CORP.

    

    

    By:
      /s/
      Yuval
      Cohen                  

    Name:
      Yuval Cohen

    Title:
      Chairman of the Board and Chief
      Executive Officer

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