Document:

Unassociated Document

     

    July
      7,
      2005

     

    Fortress
      America Acquisition Corporation

    3
      Bethesda Metro Center

    Suite
      700

    Bethesda,
      MD 20814

    

    Sunrise
      Securities Corp.

    641
      Lexington Avenue

    25th
      Floor

    New
      York,
      New York 10022

     

    Re:         
      Initial Public Offering

     

    Gentlemen:

     

    The
      undersigned stockholder and director of Fortress America Acquisition Corporation
      (“Company”), in consideration of Sunrise Securities Corp. (“Sunrise”) 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 12
      months from the effective date (“Effective Date”) of the registration statement
      relating to the IPO (or 18 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. The undersigned hereby waives any and all right, title, interest or
      claim of any kind in or to any distribution of the Trust Fund as a result of
      such distribution 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.            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 a director of
      the
      Company, subject to any pre-existing fiduciary or contractual 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 Sunrise 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 his 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, nor 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 information
      furnished to the Company and Sunrise 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 questionnaires furnished to the Company and
      Sunrise are 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 Sunrise and its legal representatives or agents
      (including any investigative search firm retained by Sunrise) any information
      they may have about the undersigned’s background and finances
      (“Information”).  Neither Sunrise 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 in the homeland security industry 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.

     

    

    
      	 	
                        Donald
                L.
                Nickles                               

              Print
                Name of Insider

            
	 	 
	 	
                               /s/
                Donald L.
                Nickles                   

              SignatureUnassociated Document

    AGREEMENT

    

    

    THIS
      AGREEMENT is made as of this ___ day of July 2005, by and among FORTRESS AMERICA
      ACQUISITION CORPORATION, a Delaware corporation (the “Company”), SUNRISE
      SECURITIES CORP., a Delaware corporation (“Sunrise”), and PALADIN
      HOMELAND SECURITY FUND, L.P.,
      a
      Delaware limited partnership, PALADIN HOMELAND SECURITY FUND (NY CITY), L.P.,
      a
      Delaware limited partnership, PALADIN HOMELAND SECURITY FUND (CA), L.P., a
      Delaware limited partnership, and PALADIN HOMELAND SECURITY FUND (CAYMAN
      ISLANDS), L.P., a limited partnership formed under the laws of the Cayman
      Islands (individually, “Stockholder,” and collectively,
“Stockholders”).

    

    A.
      Sunrise entered into a Letter of Intent (the “Letter of Intent”) with the
      Company to underwrite an initial public offering of the securities of the
      Company (“IPO”) and embark on the IPO process.

    

    B.
      As a
      condition and in consideration for Sunrise underwriting the IPO, Sunrise, the
      Company and the Stockholders must agree to certain terms and conditions as
      more
      fully described in this Agreement.

    

    C.
      Capitalized terms used in this Agreement, unless defined elsewhere, shall have
      the meaning ascribed to them in Section 10 hereof.

    

    NOW,
      THEREFORE, for good and valuation consideration, the parties hereto hereby
      agree
      as follows:

    

    1. If
      the
      Company solicits approval of its stockholders of a Business Combination,
      Stockholders will vote all Insider Shares owned by them 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 12
      months from the effective date (“Effective Date”) of the registration statement
      relating to the IPO (or 18 months under the circumstances described in the
      prospectus relating to the IPO), Stockholders will take all reasonable actions
      within their 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. Each
      Stockholder hereby waives any and all right, title, interest or claim of any
      kind in or to any distribution of the Trust Fund as a result of such
      distribution with respect to such Insider Shares (“Claim”) and hereby waives any
      Claim Stockholder 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 (including in connection with enforcement
      of the Company’s indemnification obligations under paragraph 9
      hereof).

    

    3. Stockholders
      acknowledge and agree 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 Sunrise that the Business Combination
      is
      fair to the Company’s stockholders from a financial perspective.

    

    4. Stockholders
      will not 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 Stockholders shall be entitled to reimbursement
      from
      the Company for their out-of-pocket expenses incurred on behalf of the
      Company.

    

    5. Stockholders
      will not be entitled to receive, or accept, a finder’s fee or any other
      compensation in the event Stockholders, any member of a family of a Stockholder
      or any Affiliate of Stockholders originates a Business Combination.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    6. Stockholders
      will escrow their Insider Shares for the three-year period commencing on the
      Effective Date, subject to the terms of a stock escrow agreement substantially
      in the form attached hereto as Exhibit A which the Company will enter into
      with
      Stockholders and an escrow agent acceptable to the Company.

     

    7. The
      Company and Stockholders agree to enter into a registration rights agreement
      substantially in the form attached hereto as Exhibit B.

    

    8. Stockholders
      hereby represent and warrant that the information furnished in writing to the
      Company and to Sunrise marked expressly for inclusion in the Registration
      Statement on Form S-1 (the “Registration Statement”) is true and accurate in all
      respects, does not omit any material information with respect to any Stockholder
      that would otherwise be required to be disclosed under the Securities Act of
      1933, as amended, or any rule or regulation promulgated thereunder.

    

    9. The
      Company agrees to indemnify and hold harmless Stockholders, and each of their
      respective officers, employees, affiliates, directors, and partners (each,
      an
“Indemnified Party”), from and against any expenses, losses, judgments, claims,
      damages or liabilities arising out of or based upon any untrue statement (or
      allegedly untrue statement) of a material fact contained in the Registration
      Statement, preliminary prospectus or final prospectus (or any amendment or
      supplement thereto), or arising out of or based upon any omission (or alleged
      omission) to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, or any violation by the Company
      of
      the Securities Act of 1933, as amended, or any rule or regulation promulgated
      thereunder applicable to the Company and relating to action or inaction required
      of the Company in connection with the registration; and the Company shall
      promptly reimburse the Indemnified Party for any legal and any other expenses
      reasonably incurred by such Indemnified Party in connection with investigating
      and defending any such expense, loss, judgment, claim, damage or liability;
      provided however, that the Company shall not be liable in any such case to
      the
      extent that any such expense, loss, claim, damage or liability arises out of
      or
      is based upon any untrue statement or allegedly untrue statement or omission
      or
      alleged omission made in the Registration Statement, preliminary prospectus,
      or
      final prospectus (or any amendment or supplement thereto) in reliance upon
      and
      in conformity with information furnished to the Company, in writing, by any
      Stockholder expressly for use therein. Each Stockholder hereby waives any and
      all right, title, interest or claim of any kind in or to the Trust Fund or
      any
      distribution from the Trust Fund in respect of any claim or rights Stockholder
      may have in the future against the Company as a result of, or arising out of,
      the Company’s indemnification obligations in this paragraph 9 and will not seek
      recourse against the Trust Fund for any reason whatsoever.

    

    10. 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 in the homeland security industry 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.

    

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

     

    
      	 	FORTRESS AMERICA ACQUISITION
              CORPORATION 
	 	 	 
	 	By: 	/s/ Harvey L. Weiss
	 	 	Harvey L. Weiss, President and Chief
              Executive Officer 
	 	 	 
	 	SUNRISE SECURITIES
              CORP.
	 	 	 
	 	By: 	Nathan Low 
	 	Its:  	President 
	 	 	 
	 	PALADIN HOMELAND SECURITY
              FUND,
              L.P.
	 	 	 
	 	
              By:

            	
              PALADIN
                HOMELAND SECURITY HOLDINGS, LLC, its General
                Partner
 
	 	 	 
	 	By: 	/s/ Michael R.
              Steed 
	 	 	Michael R. Steed, Authorized
              Signatory 
	 	 	 
	 	PALADIN HOMELAND SECURITY
              FUND (NY
              CITY), L.P. 
	 	 	 
	 	
              By:

            	
              PALADIN
                HOMELAND SECURITY HOLDINGS, LLC, its General
                Partner 

            
	 	 	 
	 	By: 	/s/ Michael R.
              Steed 
	 	 	Michael R. Steed, Authorized
              Signatory 
	 	 	 
	 	PALADIN HOMELAND SECURITY
              FUND
              (CA), L.P.
	 	 	 
	 	
              By:
 	
              PALADIN
                HOMELAND SECURITY HOLDINGS, LLC, its General
                Partner 

            
	 	 	 
	 	By: 	/s/ Michael R.
              Steed 
	 	 	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:  	/s/ Michael R.
              Steed 
	 	 	Michael R. Steed, Authorized
              Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]