Document:

Unassociated Document

    STOCK
      ESCROW AGREEMENT

     

    STOCK
      ESCROW AGREEMENT, dated as of July 13, 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 CONTINENTAL STOCK TRANSFER & TRUST COMPANY, a New York
      corporation (“Escrow Agent”).

     

    WHEREAS,
      the Company has entered into an Underwriting Agreement, dated  July 13,
      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 July 13, 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 July 13, 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:

     

    Continental
      Stock Transfer & Trust Company

    17
      Battery Place

    New
      York,
      New York 10004

    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:

            	
               /s/
                C. Thomas McMillen

            	 
	 	 	
              C.
                Thomas McMillen, Chairman

            
	
               

            	
               

            
	
               

            	
               

            
	 	
              INITIAL
                STOCKHOLDERS:

            
	
               

            	
               

            
	
               

            	
              WASHINGTON
                CAPITAL ADVISORS, LLC

            
	 	 
	
               

            	
              /s/
                C. Thomas McMillen

            	
               

            
	 	
              By:
                C. Thomas McMillen

              Title:
                

            
	
               

            	
               

            
	
               

            	 
	
               

            	
              /s/
                Harvey L. Weiss

            	
               

            
	 	
              Harvey
                L. Weiss

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              /s/
                David J. Mitchell

            	
               

            
	 	
              David
                J. Mitchell

            
	 	 
	 	 
	 	
              /s/
                Asa Hutchinson

            	
               

            
	 	
              Asa
                Hutchinson

            	
               

            
	 	 
	 	 
	 	/s/
              Donald L.
              Nickles 
	 	
              Donald
                L. Nickles

            

    

     

    
      	 	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 
	 	 	 
	 	CONTINENTAL
              STOCK TRANSFER & TRUST COMPANY
	 	 	 
	 	By:  	/s/ Steven Nelson 
	 	 	Name: Steven Nelson 
	 	 	
              Title:
                Chairman 

            

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A

     

    
      	
              Name
                and Address of

              Initial
                Stockholder

            	
               

            	
              Number

              of
                Shares

            	
               

            	
              Stock

              Certificate
                Number

            	
               

            	
              Date
                of

              Insider
                Letter

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	 	 	 	 	 	 	 	
               

            
	
              Washington
                Capital Advisors, LLC

            	 	
              575,000

            	 	
              C-4

            	 	
              July
                7, 2005

            	
               

            
	 	 	 	 	 	 	 	
               

            
	
              Harvey
                L. Weiss

            	 	
              575,000

            	 	
              C-6

            	 	
              July
                7, 2005

            	
               

            
	 	 	 	 	 	 	 	
               

            
	
              David
                J. Mitchell

            	 	
              150,000

            	 	
              C-5

            	 	
              July
                7, 2005

            	
               

            
	 	 	 	 	 	 	 	
               

            
	
              Donald
                L. Nickles

            	 	
              200,000

            	 	
              C-7

            	 	
              July
                7, 2005

            	
               

            
	 	 	 	 	 	 	 	
               

            
	
              Asa
                Huthinson

            	 	
              200,000

            	 	
              C-8

            	 	
              July
                7, 2005

            	
               

            
	 	 	 	 	 	 	 	
               

            
	
              Paladin
                Homeland Security Fund, L.P.

            	 	
              24,765

            	 	
              C-9

            	 	
              July
                12, 2005

            	
               

            
	 	 	 	 	 	 	 	
               

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

            	 	
              15,926

            	 	
              C-10

            	 	
              July
                12, 2005

            	
               

            
	 	 	 	 	 	 	 	
               

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

            	 	
              5,553

            	 	
              C-11

            	 	
              July
                12, 2005

            	
               

            
	 	 	 	 	 	 	 	
               

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

            	 	
              3,756

            	 	
              C-12

            	 	
              July
                12, 2005Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT

     

    THIS
      REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered into as of the
      13th
      day of
      July, 2005, by and among: Fortress America Acquisition Corporation, a Delaware
      corporation (the “Company”); and the undersigned parties listed under Investors
      on the signature page hereto (each, an “Investor” and collectively, the
“Investors”).

     

    WHEREAS,
      the Investors currently hold all of the issued and outstanding securities of
      the
      Company;

     

    WHEREAS,
      the Investors and the Company desire to enter into this Agreement to provide
      the
      Investors with certain rights relating to the registration of shares of Common
      Stock held by them;

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements set forth
      herein, and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties hereto agree as
      follows:

     

    1.            
      DEFINITIONS. 
      The following capitalized terms used herein have the following
      meanings:

    

    “Agreement”
means
      this Agreement, as amended, restated, supplemented, or otherwise modified from
      time to time.

     

    “Commission”
means
      the Securities and Exchange Commission, or any other federal agency then
      administering the Securities Act or the Exchange Act.

     

    “Common
      Stock”
means
      the common stock, par value $0.0001 per share, of the Company.

     

    “Company”
is
      defined in the preamble to this Agreement.

     

    “Demand
      Registration”
is
      defined in Section 2.1.1.

     

    “Demanding
      Holder”
is
      defined in Section 2.1.1.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      of the Commission promulgated thereunder, all as the same shall be in effect
      at
      the time.

     

    “Form
      S-3”
is
      defined in Section 2.3.

     

    “Indemnified
      Party”
is
      defined in Section 4.3.

     

    “Indemnifying
      Party”
is
      defined in Section 4.3.

     

    “Investor”
is
      defined in the preamble to this Agreement.

     

    “Investor
      Indemnified Party”
is
      defined in Section 4.1.

     

    “Maximum
      Number of Shares”
is
      defined in Section 2.1.4.

     

    “Notices”
is
      defined in Section 6.3.

     

    “Piggy-Back
      Registration”
is
      defined in Section 2.2.1.

     

    “Register,”
      “registered”
and
      “registration”
mean
      a
      registration effected by preparing and filing a registration statement or
      similar document in compliance with the requirements of the Securities Act,
      and
      the applicable rules and regulations promulgated thereunder, and such
      registration statement becoming effective.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Registrable
      Securities”
mean
      all of the shares of Common Stock owned or held by Investors.  Registrable
      Securities include any warrants, shares of capital stock or other securities
      of
      the Company issued as a dividend or other distribution with respect to or in
      exchange for or in replacement of such shares of Common Stock.  As to any
      particular Registrable Securities, such securities shall cease to be Registrable
      Securities when:  (a) a Registration Statement with respect to the
      sale of such securities shall have become effective under the Securities Act
      and
      such securities shall have been sold, transferred, disposed of or exchanged
      in
      accordance with such Registration Statement; (b) such securities shall have
      been otherwise transferred, new certificates for them not bearing a legend
      restricting further transfer shall have been delivered by the Company and
      subsequent public distribution of them shall not require registration under
      the
      Securities Act; (c) such securities shall have ceased to be outstanding, or
      (d) the Securities and Exchange Commission makes a definitive determination
      to
      the Company that the Registrable Securities are salable under Rule
      144(k).

     

    “Registration
      Statement”
means
      a
      registration statement filed by the Company with the Commission in compliance
      with the Securities Act and the rules and regulations promulgated thereunder
      for
      a public offering and sale of Common Stock (other than a registration statement
      on Form S-4 or Form S-8, or their successors, or any registration
      statement covering only securities proposed to be issued in exchange for
      securities or assets of another entity).

     

    “Release
      Date”
means
      the date on which shares of Common Stock are disbursed from escrow pursuant
      to
      Section 3 of that certain Stock Escrow Agreement dated as of July 12, 2005
      by and among the parties hereto and Continental Stock Transfer & Trust
      Company.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations of the
      Commission promulgated thereunder, all as the same shall be in effect at the
      time.

     

    “Underwriter”
means
      a
      securities dealer who purchases any Registrable Securities as principal in
      an
      underwritten offering and not as part of such dealer’s market-making
      activities.

     

    2.            
      REGISTRATION RIGHTS.

    

    2.1          
      Demand Registration.

    

     2.1.1.      
      Request for Registration. 
      At any time and from time to time on or after the Release Date, the holders
      of a
      majority-in-interest of the Registrable Securities held by the Investors or
      the
      transferees of the Investors, may make a written demand for registration under
      the Securities Act of all or part of their Registrable Securities (a
“Demand
      Registration”). 
      Any demand for a Demand Registration shall specify the number of shares of
      Registrable Securities proposed to be sold and the intended method(s) of
      distribution thereof.  The Company will notify all holders of Registrable
      Securities of the demand, and each holder of Registrable Securities who wishes
      to include all or a portion of such holder’s Registrable Securities in the
      Demand Registration (each such holder including shares of Registrable Securities
      in such registration, a “Demanding
      Holder”)
      shall
      so notify the Company within fifteen (15) days after the receipt by the holder
      of the notice from the Company.  Upon any such request, the Demanding
      Holders shall be entitled to have their Registrable Securities included in
      the
      Demand Registration, subject to Section 2.1.4 and the provisos set forth in
      Section 3.1.1.  The Company shall not be obligated to effect more than
      an aggregate of two (2) Demand Registrations under this Section 2.1.1 in
      respect of Registrable Securities.

    

    2.1.2.      
      Effective Registration. 
A
      registration will not count as a Demand Registration until the Registration
      Statement filed with the Commission with respect to such Demand Registration
      has
      been declared effective and the Company has complied with all of its obligations
      under this Agreement with respect thereto;
      provided,
      however,
      that
      if, after such Registration Statement has been declared effective, the offering
      of Registrable Securities pursuant to a Demand Registration is interfered with
      by any stop order or injunction of the Commission or any other governmental
      agency or court, the Registration Statement with respect to such Demand
      Registration will be deemed not to have been declared effective, unless and
      until, (i) such stop order or injunction is removed, rescinded or otherwise
      terminated, and (ii) a majority-in-interest of the Demanding Holders thereafter
      elect to continue the offering;
      provided,
      further,
      that
      the Company shall not be obligated to file a second Registration Statement
      until
      a Registration Statement that has been filed is counted as a Demand Registration
      or is terminated.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.1.3.      
      Underwritten Offering. 
      If a majority-in-interest of the Demanding Holders so elect and such holders
      so
      advise the Company as part of their written demand for a Demand Registration,
      the offering of such Registrable Securities pursuant to such Demand Registration
      shall be in the form of an underwritten offering. In such event, the right
      of
      any holder to include its Registrable Securities in such registration shall
      be
      conditioned upon such holder’s participation in such underwriting and the
      inclusion of such holder’s Registrable Securities in the underwriting to the
      extent provided herein.  All Demanding Holders proposing to distribute
      their securities through such underwriting shall enter into an underwriting
      agreement in customary form with the Underwriter or Underwriters selected for
      such underwriting by a majority-in-interest of the holders initiating the Demand
      Registration.

    

    2.1.4.      
      Reduction of Offering. 
      If the managing Underwriter or Underwriters for a Demand Registration that
      is to
      be an underwritten offering advises the Company and the Demanding Holders in
      writing that the dollar amount or number of shares of Registrable Securities
      which the Demanding Holders desire to sell, taken together with all other shares
      of Common Stock or other securities which the Company desires to sell and the
      shares of Common Stock, if any, as to which registration has been requested
      pursuant to written contractual piggy-back registration rights held by other
      shareholders of the Company who desire to sell, exceeds the maximum dollar
      amount or maximum number of shares that can be sold in such offering without
      adversely affecting the proposed offering price, the timing, the distribution
      method, or the probability of success of such offering (such maximum dollar
      amount or maximum number of shares, as applicable, the “Maximum
      Number of Shares”),
      then
      the Company shall include in such registration:  (i) first, the Registrable
      Securities as to which Demand Registration has been requested by the Demanding
      Holders (pro
      rata
      in
      accordance with the number of shares of Registrable Securities which such
      Demanding Holder has requested be included in such registration, regardless
      of
      the number of shares of Registrable Securities held by each Demanding Holder)
      that can be sold without exceeding the Maximum Number of Shares; (ii) second,
      to
      the extent that the Maximum Number of Shares has not been reached under the
      foregoing clause (i), the shares of Common Stock or other securities that the
      Company desires to sell that can be sold without exceeding the Maximum Number
      of
      Shares; (iii) third, to the extent that the Maximum Number of Shares has not
      been reached under the foregoing clauses (i) and (ii), the shares of Common
      Stock for the account of other persons that the Company is obligated to register
      pursuant to written contractual arrangements with such persons and that can
      be
      sold without exceeding the Maximum Number of Shares; and (v) fourth, to the
      extent that the Maximum Number of Shares have not been reached under the
      foregoing clauses (i), (ii), and (iii), the shares of Common Stock that other
      shareholders desire to sell that can be sold without exceeding the Maximum
      Number of Shares.

    

    2.1.5.      
      Withdrawal.
      If a
      majority-in-interest of the Demanding Holders disapprove of the terms of any
      underwriting or are not entitled to include all of their Registrable Securities
      in any offering, such majority-in-interest of the Demanding Holders may elect
      to
      withdraw from such offering by giving written notice to the Company and the
      Underwriter or Underwriters of their request to withdraw prior to the
      effectiveness of the Registration Statement filed with the Commission with
      respect to such Demand Registration.  If the majority-in-interest of the
      Demanding Holders withdraws from a proposed offering relating to a Demand
      Registration, then such registration shall not count as a Demand Registration
      provided for in Section 2.1.1.

     

    2.2          
      Piggy-Back Registration.

    

    2.2.1.      
      Piggy-Back Rights. 
      If at any time on or after the Release Date the Company proposes to file a
      Registration Statement under the Securities Act with respect to an offering
      of
      equity securities, or securities or other obligations exercisable or
      exchangeable for, or convertible into, equity securities, by the Company for
      its
      own account or for shareholders of the Company for their account (or by the
      Company and by shareholders of the Company including, without limitation,
      pursuant to Section 2.1), other than a Registration Statement (i) filed in
      connection with any employee stock option or other benefit plan, (ii) for an
      exchange offer or offering of securities solely to the Company’s existing
      shareholders, (iii) for an offering of debt that is convertible into equity
      securities of the Company or (iv) for a dividend reinvestment plan, then
      the Company shall (x) give written notice of such proposed filing to the holders
      of Registrable Securities as soon as practicable but in no event less than
      ten
      (10) days before the anticipated filing date, which notice shall describe the
      amount and type of securities to be included in such offering, the intended
      method(s) of distribution, and the name of the proposed managing Underwriter
      or
      Underwriters, if any, of the offering, and (y) offer to the holders of
      Registrable Securities in such notice the opportunity to register the sale
      of
      such number of shares of Registrable Securities as such holders may request
      in
      writing within fifteen (15) days following receipt of such notice (a
“Piggy-Back
      Registration”). 
      The Company shall cause such Registrable Securities to be included in such
      registration and shall use its best efforts to cause the managing Underwriter
      or
      Underwriters of a proposed underwritten offering to permit the Registrable
      Securities requested to be included in a Piggy-Back Registration to be included
      on the same terms and conditions as any similar securities of the Company and
      to
      permit the sale or other disposition of such Registrable Securities in
      accordance with the intended method(s) of distribution thereof.  All
      holders of Registrable Securities proposing to distribute their securities
      through a Piggy-Back Registration that involves an Underwriter or Underwriters
      shall enter into an underwriting agreement in customary form with the
      Underwriter or Underwriters selected for such Piggy-Back
      Registration.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.2.2.      
      Reduction of Offering. 
      If the managing Underwriter or Underwriters for a Piggy-Back Registration that
      is to be an underwritten offering advises the Company and the holders of
      Registrable Securities in writing that the dollar amount or number of shares
      of
      Common Stock which the Company desires to sell, taken together with shares
      of
      Common Stock, if any, as to which registration has been demanded pursuant to
      written contractual arrangements with persons other than the holders of
      Registrable Securities hereunder, the Registrable Securities as to which
      registration has been requested under this Section 2.2, and the shares of
      Common Stock, if any, as to which registration has been requested pursuant
      to
      the written contractual piggy-back registration rights of other shareholders
      of
      the Company, exceeds the Maximum Number of Shares, then the Company shall
      include in any such registration:

    

        (i)           
      If the
      registration is undertaken for the Company’s account: (A) first, the shares of
      Common Stock or other securities that the Company desires to sell that can
      be
      sold without exceeding the Maximum Number of Shares; (B) second, to the extent
      that the Maximum Number of Shares has not been reached under the foregoing
      clause (A), the shares of Common Stock, if any, including the Registrable
      Securities, as to which registration has been requested pursuant to written
      contractual piggy-back registration rights of security holders (pro rata in
      accordance with the number of shares of Common Stock which each such person
      has
      actually requested to be included in such registration, regardless of the number
      of shares of Common Stock with respect to which such persons have the right
      to
      request such inclusion) that can be sold without exceeding the Maximum Number
      of
      Shares; and

    

    (ii)          
      If the
      registration is a “demand” registration undertaken at the demand of persons
      other than the holders of Registrable Securities pursuant to written contractual
      arrangements with such persons, (A) first, the shares of Common Stock for the
      account of the demanding persons that can be sold without exceeding the Maximum
      Number of Shares; (B) second, to the extent that the Maximum Number of Shares
      has not been reached under the foregoing clause (A), the shares of Common Stock
      or other securities that the Company desires to sell that can be sold without
      exceeding the Maximum Number of Shares; and (C) third, to the extent that the
      Maximum Number of Shares has not been reached under the foregoing clauses (A)
      and (B), the Registrable Securities as to which registration has been requested
      under this Section 2.2 (pro
      rata
      in
      accordance with the number of shares of Registrable Securities held by each
      such
      holder); and (D) fourth, to the extent that the Maximum Number of Shares
      has not been reached under the foregoing clauses (A), (B) and (C), the
      shares of Common Stock, if any, as to which registration has been requested
      pursuant to written contractual piggy-back
      registration rights which other shareholders desire to sell that can be sold
      without exceeding the Maximum Number of Shares.

    

    2.2.3.      
      Withdrawal. 
      Any holder of Registrable Securities may elect to withdraw such holder’s request
      for inclusion of Registrable Securities in any Piggy-Back Registration by giving
      written notice to the Company of such request to withdraw prior to the
      effectiveness of the Registration Statement.  The Company may also elect to
      withdraw a registration statement at any time prior to the effectiveness of
      the
      Registration Statement.  Notwithstanding any such withdrawal, the Company
      shall pay all expenses incurred by the holders of Registrable Securities in
      connection with such Piggy-Back Registration as provided in
      Section 3.3.

    

    2.3          
      Registrations on Form S-3. 
      The holders of Registrable Securities may at any time and from time to time,
      request in writing that the Company register the resale of any or all of such
      Registrable Securities on Form S-3 or any similar short-form registration which
      may be available at such time (“Form
      S-3”);
      provided,
      however,
      that
      the Company shall not be obligated to effect such request through an
      underwritten offering.  Upon receipt of such written request, the Company
      will promptly give written notice of the proposed registration to all other
      holders of Registrable Securities, and, as soon as practicable thereafter,
      effect the registration of all or such portion of such holder’s or holders’
Registrable Securities as are specified in such request, together with all
      or
      such portion of the Registrable Securities of any other holder or holders
      joining in such request as are specified in a written request given within
      fifteen (15) days after receipt of such written notice from the
      Company;
      provided,
      however,
      that
      the Company shall not be obligated to effect any such registration pursuant
      to
      this Section 2.3: (i) if Form S-3 is not available for such offering; or
      (ii) if the holders of the Registrable Securities, together with the holders
      of
      any other securities of the Company entitled to inclusion in such registration,
      propose to sell Registrable Securities and such other securities (if any) at
      any
      aggregate price to the public of less than $500,000. Registrations effected
      pursuant to this Section 2.3 shall not be counted as Demand Registrations
      effected pursuant to Section 2.1.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.            
      REGISTRATION PROCEDURES.

    

    3.1          
      Filings; Information. 
      Whenever the Company is required to effect the registration of any Registrable
      Securities pursuant to Section 2, the Company shall use its best efforts to
      effect the registration and sale of such Registrable Securities in accordance
      with the intended method(s) of distribution thereof as expeditiously as
      practicable, and in connection with any such request:

    

       3.1.1.      
      Filing Registration Statement. 
      The Company shall, as expeditiously as possible and in any event within sixty
      (60) days after receipt of a request for a Demand Registration pursuant to
      Section 2.1, prepare and file with the Commission a Registration Statement
      on any form for which the Company then qualifies or which counsel for the
      Company shall deem appropriate and which form shall be available for the sale
      of
      all Registrable Securities to be registered thereunder in accordance with the
      intended method(s) of distribution thereof, and shall use its best efforts
      to
      cause such Registration Statement to become and remain effective for the period
      required by Section 3.1.3;
      provided,
      however,
      that
      the Company shall have the right to defer any Demand Registration for up to
      thirty (30) days, and
      any
      Piggy-Back Registration for such period as may be applicable to deferment of
      any
      demand registration to which such Piggy-Back Registration relates, in each
      case
      if the Company shall furnish to the holders a certificate signed by the Chief
      Executive Officer of the Company stating that, in the good faith judgment of
      the
      Board of Directors of the Company, it would be materially detrimental to the
      Company and its shareholders for such Registration Statement to be effected
      at
      such time;
      provided further,
      however,
      that
      the Company shall not have the right to exercise the right set forth in the
      immediately preceding proviso more than once in any 365-day period in respect
      of
      a Demand Registration hereunder.

    

    3.1.2.      
      Copies. 
      The Company shall, prior to filing a Registration Statement or prospectus,
      or
      any amendment or supplement thereto, furnish without charge to the holders
      of
      Registrable Securities included in such registration, and such holders’ legal
      counsel, copies of such Registration Statement as proposed to be filed, each
      amendment and supplement to such Registration Statement (in each case including
      all exhibits thereto and documents incorporated by reference therein), the
      prospectus included in such Registration Statement (including each preliminary
      prospectus), and such other documents as the holders of Registrable Securities
      included in such registration or legal counsel for any such holders may request
      in order to facilitate the disposition of the Registrable Securities owned
      by
      such holders.

    

       3.1.3.      
      Amendments and Supplements. 
      The Company shall prepare and file with the Commission such amendments,
      including post-effective amendments, and supplements to such Registration
      Statement and the prospectus used in connection therewith as may be necessary
      to
      keep such Registration Statement effective and in compliance with the provisions
      of the Securities Act until all Registrable Securities and other securities
      covered by such Registration Statement have been disposed of in accordance
      with
      the intended method(s) of distribution set forth in such Registration Statement
      (which period shall not exceed the sum of one hundred eighty (180) days plus
      any
      period during which any such disposition is interfered with by any stop order
      or
      injunction of the Commission or any governmental agency or court) or such
      securities have been withdrawn.

    

    3.1.4.      
      Notification. 
      After the filing of a Registration Statement, the Company shall promptly, and
      in
      no event more than two (2) business days after such filing, notify the holders
      of Registrable Securities included in such Registration Statement of such
      filing, and shall further notify such holders promptly and confirm such advice
      in writing in all events within two (2) business days of the occurrence of
      any
      of the following:  (i) when such Registration Statement becomes
      effective; (ii) when any post-effective amendment to such Registration
      Statement becomes effective; (iii) the issuance or threatened issuance by
      the Commission of any stop order (and the Company shall take all actions
      required to prevent the entry of such stop order or to remove it if entered);
      and (iv) any request by the Commission for any amendment or supplement to
      such Registration Statement or any prospectus relating thereto or for additional
      information or of the occurrence of an event requiring the preparation of a
      supplement or amendment to such prospectus so that, as thereafter delivered
      to
      the purchasers of the securities covered by such Registration Statement, such
      prospectus will not contain an untrue statement of a material fact or omit
      to
      state any material fact required to be stated therein or necessary to make
      the
      statements therein not misleading, and promptly make available to the holders
      of
      Registrable Securities included in such Registration Statement any such
      supplement or amendment; except that before filing with the Commission a
      Registration Statement or
      prospectus or any amendment or supplement thereto, including documents
      incorporated by reference, the Company shall furnish to the holders of
      Registrable Securities included in such Registration Statement and to the legal
      counsel for any such holders, copies of all such documents proposed to be filed
      sufficiently in advance of filing to provide such holders and legal counsel
      with
      a reasonable opportunity to review such documents and comment thereon, and
      the
      Company shall not file any Registration Statement or prospectus or amendment
      or
      supplement thereto, including documents incorporated by reference, to which
      such
      holders or their legal counsel shall object.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.1.5.      
      State
      Securities Laws Compliance. 
      The Company shall use its best efforts to (i) register or qualify the
      Registrable Securities covered by the Registration Statement under such
      securities or “blue sky” laws of such jurisdictions in the United States as the
      holders of Registrable Securities included in such Registration Statement (in
      light of their intended plan of distribution) may request and (ii) take
      such action necessary to cause such Registrable Securities covered by the
      Registration Statement to be registered with or approved by such other
      Governmental Authorities as may be necessary by virtue of the business and
      operations of the Company and do any and all other acts and things that may
      be
      necessary or advisable to enable the holders of Registrable Securities included
      in such Registration Statement to consummate the disposition of such Registrable
      Securities in such jurisdictions;
      provided,
      however,
      that
      the Company shall not be required to qualify generally to do business in any
      jurisdiction where it would not otherwise be required to qualify but for this
      paragraph (e) or subject itself to taxation in any such
      jurisdiction.

    

       3.1.6.      
      Agreements for Disposition. 
      The Company shall enter into customary agreements (including, if applicable,
      an
      underwriting agreement in customary form) and take such other actions as are
      reasonably required in order to expedite or facilitate the disposition of such
      Registrable Securities.  The representations, warranties and covenants of
      the Company in any underwriting agreement which are made to or for the benefit
      of any Underwriters, to the extent applicable, shall also be made to and for
      the
      benefit of the holders of Registrable Securities included in such registration
      statement.  No holder of Registrable Securities included in such
      registration statement shall be required to make any representations or
      warranties in the underwriting agreement except, if applicable, with respect
      to
      such holder’s organization, good standing, authority, title to Registrable
      Securities, lack of conflict of such sale with such holder’s material agreements
      and organizational documents, and with respect to written information relating
      to such holder that such holder has furnished in writing expressly for inclusion
      in such Registration Statement.

    

       3.1.7.      
      Cooperation. 
      The principal executive officer of the Company, the principal financial officer
      of the Company, the principal accounting officer of the Company and all other
      officers and members of the management of the Company shall cooperate fully
      in
      any offering of Registrable Securities hereunder, which cooperation shall
      include, without limitation, the preparation of the Registration Statement
      with
      respect to such offering and all other offering materials and related documents,
      and participation in meetings with Underwriters, attorneys, accountants and
      potential investors.

    

    3.1.8.      
      Records. 
      The Company shall make available for inspection by the holders of Registrable
      Securities included in such Registration Statement, any Underwriter
      participating in any disposition pursuant to such registration statement and
      any
      attorney, accountant or other professional retained by any holder of Registrable
      Securities included in such Registration Statement or any Underwriter, all
      financial and other records, pertinent corporate documents and properties of
      the
      Company, as shall be necessary to enable them to exercise their due diligence
      responsibility, and cause the Company’s officers, directors and employees to
      supply all information requested by any of them in connection with such
      Registration Statement.

    

       3.1.9.      
      Opinions and Comfort Letters. 
      The Company shall furnish to each holder of Registrable Securities included
      in
      any Registration Statement a signed counterpart, addressed to such holder,
      of
      (i) any opinion of counsel to the Company delivered to any Underwriter and
      (ii) any comfort letter from the Company’s independent public accountants
      delivered to any Underwriter.  In the event no legal opinion is delivered
      to any Underwriter, the Company shall furnish to each holder of Registrable
      Securities included in such Registration Statement, at any time that such holder
      elects to use a prospectus, an opinion of counsel to the Company to the effect
      that the Registration Statement containing such prospectus has been declared
      effective and that no stop order is in effect.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

       3.1.10.    
      Earnings Statement. 
      The Company shall comply with all applicable rules and regulations of the
      Commission and the Securities Act, and make available to its shareholders,
      as
      soon as practicable, an earnings statement covering a period of twelve (12)
      months, beginning within three (3) months after the effective date of the
      registration statement, which earnings statement shall satisfy the provisions
      of
      Section 11(a) of the Securities Act and Rule 158
      thereunder.

     

       3.1.11.    
      Listing. 
      The Company shall use its best efforts to cause all Registrable Securities
      included in any registration to be listed on such exchanges or otherwise
      designated for trading in the same manner as similar securities issued by the
      Company are then listed or designated or, if no such similar securities are
      then
      listed or designated, in a manner satisfactory to the holders of a majority
      of
      the Registrable Securities included in such registration.

    

    3.2          
      Obligation to Suspend Distribution. 
      Upon receipt of any notice from the Company of the happening of any event of
      the
      kind described in Section 3.1.4(iv), or, in the case of a resale
      registration on Form S-3 pursuant to Section 2.3 hereof, upon any
      suspension by the Company, pursuant to a written insider trading compliance
      program adopted by the Company’s Board of Directors, of the ability of all
“insiders” covered by such program to transact in the Company’s securities
      because of the existence of material non-public information and holder would
      be
      deemed an “insider” under such program, each holder of Registrable Securities
      included in any registration shall immediately discontinue disposition of such
      Registrable Securities pursuant to the Registration Statement covering such
      Registrable Securities until such holder receives the supplemented or amended
      prospectus contemplated by Section 3.1.4(iv) or the restriction on the
      ability of “insiders” to transact in the Company’s securities is removed or is
      inapplicable to such holder, as applicable, and, if so directed by the Company,
      each such holder will deliver to the Company all copies, other than permanent
      file copies then in such holder’s possession, of the most recent prospectus
      covering such Registrable Securities at the time of receipt of such
      notice.

    

     3.3          
      Registration Expenses. 
      The Company shall bear all costs and expenses incurred in connection with any
      Demand Registration pursuant to Section 2.1, any Piggy-Back Registration
      pursuant to Section 2.2, and any registration on Form S-3 effected pursuant
      to Section 2.3, and all expenses incurred in performing or complying with
      its other obligations under this Agreement, whether or not the Registration
      Statement becomes effective, including, without limitation: (i) all
      registration and filing fees; (ii) fees and expenses of compliance with
      securities or “blue sky” laws (including fees and disbursements of counsel in
      connection with blue sky qualifications of the Registrable Securities);
      (iii) printing expenses; (iv) the Company’s internal expenses
      (including, without limitation, all salaries and expenses of its officers and
      employees); (v) the fees and expenses incurred in connection with the
      listing of the Registrable Securities as required by Section 3.1.11;
      (vi) National Association of Securities Dealers, Inc. fees; (vii) fees
      and disbursements of counsel for the Company and fees and expenses for
      independent certified public accountants retained by the Company (including
      the
      expenses or costs associated with the delivery of any opinions or comfort
      letters requested pursuant to Section 3.1.9); (viii) the fees and
      expenses of any special experts retained by the Company in connection with
      such
      registration and (ix)  the fees and expenses of one legal counsel
      selected by the holders of a majority-in-interest of the Registrable Securities
      included in such registration.  The Company shall have no obligation to pay
      any underwriting discounts or selling commissions or transfer taxes, if any,
      attributable to the Registrable Securities being sold by the holders thereof,
      which underwriting discounts or selling commissions or transfer taxes, if any,
      shall be borne by such holders.  Additionally, in an underwritten offering,
      all selling shareholders and the Company shall bear the expenses of the
      underwriter pro rata in proportion to the respective amount of shares each
      is
      selling in such offering.

    

    3.4          
      Information. 
      The holders of Registrable Securities shall provide such information as may
      reasonably be requested by the Company, or the managing Underwriter, if any,
      in
      connection with the preparation of any Registration Statement, including
      amendments and supplements thereto, in order to effect the registration of
      any
      Registrable Securities under the Securities Act pursuant to Section 2 and
      in connection with the Company’s obligation to comply with federal and
      applicable state securities laws.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.            
      INDEMNIFICATION AND CONTRIBUTION.

    

     4.1          
      Indemnification by the Company. 
      The Company agrees to indemnify and hold harmless each Investor and each other
      holder of Registrable Securities, and each of their respective officers,
      employees, affiliates, directors, partners, members and agents, and each person,
      if any, who controls an Investor and each other holder of Registrable Securities
      (within the meaning of Section 15 of the Securities Act or Section 20
      of the Exchange Act) (each, an “Investor
      Indemnified Party”),
      from
      and against any expenses, losses, judgments, claims, damages or liabilities,
      whether joint or several, arising out of or based upon any untrue statement
      (or
      allegedly untrue statement) of a material fact contained in any Registration
      Statement under which the sale of such Registrable Securities was registered
      under the Securities Act, any preliminary prospectus, final prospectus or
      summary prospectus contained in the Registration Statement, or any amendment
      or
      supplement to such Registration Statement, 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 or any rule or regulation
      promulgated thereunder
      applicable to the Company and relating to action or inaction required of the
      Company in connection with any such registration; and the Company shall promptly
      reimburse the Investor Indemnified Party for any legal and any other expenses
      reasonably incurred by such Investor Indemnified Party in connection with
      investigating and defending any such expense, loss, judgment, claim, damage,
      liability or action;
      provided,
      however,
      that
      the Company will 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 such Registration Statement, preliminary prospectus, final prospectus,
      or summary prospectus, or any such amendment or supplement, in reliance upon
      and
      in conformity with information furnished to the Company, in writing, by such
      selling holder expressly for use therein.  The Company also shall indemnify
      any Underwriter of the Registrable Securities, their officers, affiliates,
      directors, partners, members and agents and each person who controls such
      Underwriter on substantially the same basis as that of the indemnification
      provided above in this Section 4.1.

    

    4.2          
      Indemnification by Holders of Registrable Securities. 
      Each selling holder of Registrable Securities will, in the event that any
      registration is being effected under the Securities Act pursuant to this
      Agreement of any Registrable Securities held by such selling holder, indemnify
      and hold harmless the Company, each of its directors and officers and each
      underwriter (if any), and each other person, if any, who controls such selling
      holder or such underwriter within the meaning of the Securities Act, against
      any
      losses, claims, judgments, damages or liabilities, whether joint or several,
      insofar as such losses, claims, judgments, damages or liabilities (or actions
      in
      respect thereof) arise out of or are based upon any untrue statement or
      allegedly untrue statement of a material fact contained in any Registration
      Statement under which the sale of such Registrable Securities was registered
      under the Securities Act, any preliminary prospectus, final prospectus or
      summary prospectus contained in the Registration Statement, or any amendment
      or
      supplement to the Registration Statement, or arise out of or are based upon
      any
      omission or the alleged omission to state a material fact required to be stated
      therein or necessary to make the statement therein not misleading, if the
      statement or omission was made in reliance upon and in conformity with
      information furnished in writing to the Company by such selling holder expressly
      for use therein, and shall reimburse the Company, its directors and officers,
      and each such controlling person for any legal or other expenses reasonably
      incurred by any of them in connection with investigation or defending any such
      loss, claim, damage, liability or action.  Each selling holder’s
      indemnification obligations hereunder shall be several and not joint and shall
      be limited to the amount of any net proceeds (after payment of all underwriting
      fees, discounts, commissions and taxes) actually received by such selling holder
      from the sale of Registrable Securities which gave rise to such indemnification
      obligation.

    

    4.3          
      Conduct of Indemnification Proceedings. 
      Promptly after receipt by any person of any notice of any loss, claim, damage
      or
      liability or any action in respect of which indemnity may be sought pursuant
      to
      Section 4.1 or 4.2, such person (the “Indemnified
      Party”)
      shall,
      if a claim in respect thereof is to be made against any other person for
      indemnification hereunder, notify such other person (the “Indemnifying
      Party”)
      in
      writing of the loss, claim, judgment, damage, liability or action;
      provided,
      however,
      that
      the failure by the Indemnified Party to notify the Indemnifying Party shall
      not
      relieve the Indemnifying Party from any liability which the Indemnifying Party
      may have to such Indemnified Party hereunder, except and solely to the extent
      the Indemnifying Party is actually prejudiced by such failure.  If the
      Indemnified Party is seeking indemnification with respect to any claim or action
      brought against the
      Indemnified Party, then the Indemnifying Party shall be entitled to participate
      in such claim or action, and, to the extent that it wishes, jointly with all
      other Indemnifying Parties, to assume control of the defense thereof with
      counsel reasonably satisfactory to the Indemnified Party.  After notice
      from the Indemnifying Party to the Indemnified Party of its election to assume
      control of the defense of such claim or action, the Indemnifying Party shall
      not
      be liable to the Indemnified Party for any legal or other expenses subsequently
      incurred by the Indemnified Party in connection with the defense thereof other
      than reasonable costs of investigation;
      provided,
      however,
      that in
      any action in which both the Indemnified Party and the Indemnifying Party are
      named as defendants, the Indemnified Party shall have the right to employ
      separate counsel (but no more than one such separate counsel) to represent
      the
      Indemnified Party and its controlling persons who may be subject to liability
      arising out of any claim in respect of which indemnity may be sought by the
      Indemnified Party against the Indemnifying Party, with the fees and expenses
      of
      such counsel to be paid by such Indemnifying Party if, based upon the written
      opinion of counsel of such Indemnified Party, representation of both parties
      by
      the same counsel would be inappropriate due to actual or potential differing
      interests between them.  No Indemnifying Party shall, without the prior
      written consent of the Indemnified Party, consent to entry of judgment or effect
      any settlement of any claim or pending or threatened proceeding in respect
      of
      which the Indemnified Party is or could have been a party and indemnity could
      have been sought hereunder by such Indemnified Party, unless such judgment
      or
      settlement includes an unconditional release of such Indemnified Party from
      all
      liability arising out of such claim or proceeding.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.4          
      Contribution.

    

    4.4.1.      
      If the
      indemnification provided for in the foregoing Sections 4.1, 4.2 and 4.3 is
      unavailable to any Indemnified Party in respect of any loss, claim, damage,
      liability or action referred to herein, then each such Indemnifying Party,
      in
      lieu of indemnifying such Indemnified Party, shall contribute to the amount
      paid
      or payable by such Indemnified Party as a result of such loss, claim, damage,
      liability or action in such proportion as is appropriate to reflect the relative
      fault of the Indemnified Parties and the Indemnifying Parties in connection
      with
      the actions or omissions which resulted in such loss, claim, damage, liability
      or action, as well as any other relevant equitable considerations.  The
      relative fault of any Indemnified Party and any Indemnifying Party shall be
      determined by reference to, among other things, whether the untrue or alleged
      untrue statement of a material fact or the omission or alleged omission to
      state
      a material fact relates to information supplied by such Indemnified Party or
      such Indemnifying Party and the parties’ relative intent, knowledge, access to
      information and opportunity to correct or prevent such statement or
      omission.

    

    4.4.2.      
      The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 4.4 were determined by
      pro
      rata
      allocation or by any other method of allocation which does not take account
      of
      the equitable considerations referred to in the immediately preceding
      Section 4.4.1.  The amount paid or payable by an Indemnified Party as
      a result of any loss, claim, damage, liability or action referred to in the
      immediately preceding paragraph shall be deemed to include, subject to the
      limitations set forth above, any legal or other expenses incurred by such
      Indemnified Party in connection with investigating or defending any such action
      or claim.  Notwithstanding the provisions of this Section 4.4, no
      holder of Registrable Securities shall be required to contribute any amount
      in
      excess of the dollar amount
      of the
      net proceeds (after payment of all underwriting fees, discounts, commissions
      and
      taxes) actually received by such holder from the sale of Registrable Securities
      which gave rise to such contribution obligation.  No person guilty of
      fraudulent misrepresentation (within the meaning of Section 11(f) of
      the Securities Act) shall be entitled to contribution from any person who was
      not guilty of such fraudulent misrepresentation.

     

    5.            
      UNDERWRITING AND DISTRIBUTION.

    

    5.1          
      Rule 144. 
      The Company covenants that it shall file any reports required to be filed by
      it
      under the Securities Act and the Exchange Act and shall take such further action
      as the holders of Registrable Securities may reasonably request, all to the
      extent required from time to time to enable such holders to sell Registrable
      Securities without registration under the Securities Act within the limitation
      of the exemptions provided by Rule 144 under the Securities Act, as such
      Rules may be amended from time to time, or any similar Rule or regulation
      hereafter adopted by the Commission.

    

    6.            
      MISCELLANEOUS.

    

    6.1          
      Other
      Registration Rights. 
      The Company represents and warrants that no person, other than a holder of
      the
      Registrable Securities, has any right to require the Company to register any
      shares of the Company’s capital stock for sale or to include shares of the
      Company’s capital stock in any registration filed by the Company for the sale of
      shares of capital stock for its own account or for the account of any other
      person.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.2          
      Assignment; No Third Party Beneficiaries. 
      This Agreement and the rights, duties and obligations of the Company hereunder
      may not be assigned or delegated by the Company in whole or in part.  This
      Agreement and the rights, duties and obligations of the holders of Registrable
      Securities hereunder may be freely assigned or delegated by such holder of
      Registrable Securities in conjunction with and to the extent of any transfer
      of
      Registrable Securities by any such holder.  This Agreement and the
      provisions hereof shall be binding upon and shall inure to the benefit of each
      of the parties and their respective successors and the permitted assigns of
      the
      Investor or holder of Registrable Securities or of any assignee of the Investor
      or holder of Registrable Securities.  This Agreement is not intended to
      confer any rights or benefits on any persons that are not party hereto other
      than as expressly set forth in Article 4 and this
      Section 6.2. 

    

    6.3          
      Notices.
      All
      notices, demands, requests, consents, approvals or other communications
      (collectively, “Notices”)
      required or permitted to be given hereunder or which are given with respect
      to
      this Agreement shall be in writing and shall be personally served, delivered
      by
      reputable air courier service with charges prepaid, or transmitted by hand
      delivery, telegram, telex or facsimile, addressed as set forth below, or to
      such
      other address as such party shall have specified most recently by written
      notice.  Notice shall be deemed given on the date of service or
      transmission if personally served or transmitted by telegram, telex or
      facsimile;
      provided,
      that if
      such service or transmission is not on a business day or is after normal
      business hours, then such notice shall be deemed given on the next business
      day.  Notice otherwise sent as provided herein shall be deemed given on the
      next business day following timely delivery of such notice to a reputable air
      courier service with an order for next-day delivery.

    

    
      	
               To
                the Company:

            
	
               

            
	
              Fortress
                America Acquisition Corporation

            
	
              3
                Bethesda Metro Center

              Suite
                700

            
	
              Bethesda,
                MD 20814

            
	
              Attention: 
                Chairman

            
	
               

            
	
              with
                a copy to:

            
	
               

            
	
              Squire,
                Sanders & Dempsey L.L.P.

            
	
              8000
                Towers Crescent Drive, 14th
                Floor

            
	
              Tysons
                Corner, VA 22182

            
	
              Attn:
                James J. Maiwurm, Esq.; and

            
	
               

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

            
	
              666
                Third Avenue

            
	
              New
                York, NY 10017

            
	
              Attention:
                Kenneth R. Koch, Esq.

            
	
               

            
	
              To
                an Investor, to:

            
	
               

            
	
              the
                addresses listed on Exhibit A hereto

            	 
	
               

            

    

     

    6.4
      Severability. 
      This Agreement shall be deemed severable, and the invalidity or unenforceability
      of any term or provision hereof shall not affect the validity or enforceability
      of this Agreement or of any other term or provision hereof.  Furthermore,
      in lieu of any such invalid or unenforceable term or provision, the parties
      hereto intend that there shall be added as a part of this Agreement a provision
      as similar in terms to such invalid or unenforceable provision as may be
      possible and be valid and enforceable.

     

    6.5
      Counterparts. 
      This Agreement may be executed in multiple counterparts, each of which shall
      be
      deemed an original, and all of which taken together shall constitute one and
      the
      same instrument.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.6
      Entire Agreement. 
      This Agreement (including all agreements entered into pursuant hereto and all
      certificates and instruments delivered pursuant hereto and thereto) constitute
      the entire agreement of the parties with respect to the subject matter hereof
      and supersede all prior and contemporaneous agreements, representations,
      understandings, negotiations and discussions between the parties, whether oral
      or written.

     

    6.7
      Modifications and Amendments. 
      No amendment, modification or termination of this Agreement shall be binding
      upon any party unless executed in writing by such party.

     

    6.8
      Titles and Headings. 
      Titles and headings of sections of this Agreement are for convenience only
      and
      shall not affect the construction of any provision of this
      Agreement.

     

    6.9
      Waivers and Extensions. 
      Any party to this Agreement may waive any right, breach or default which such
      party has the right to waive,
      provided
      that
      such waiver will not be effective against the waiving party unless it is in
      writing, is signed by such party, and specifically refers to this
      Agreement.  Waivers may be made in advance or after the right waived has
      arisen or the breach or default waived has occurred.  Any waiver may be
      conditional.  No waiver of any breach of any agreement or provision herein
      contained shall be deemed a waiver of any preceding or succeeding breach thereof
      nor of any other agreement or provision herein contained.  No waiver or
      extension of time for performance of any obligations or acts shall be deemed
      a
      waiver or extension of the time for performance of any other obligations or
      acts.

     

    6.10
      Remedies Cumulative. 
      In the event that the Company fails to observe or perform any covenant or
      agreement to be observed or performed under this Agreement, the Investor or
      any
      other holder of Registrable Securities may proceed to protect and enforce its
      rights by suit in equity or action at law, whether for specific performance
      of
      any term contained in this Agreement or for an injunction against the breach
      of
      any such term or in aid of the exercise of any power granted in this Agreement
      or to enforce any other legal or equitable right, or to take any one or more
      of
      such actions, without being required to post a bond.  None of the rights,
      powers or remedies conferred under this Agreement shall be mutually exclusive,
      and each such right, power or remedy shall be cumulative and in addition to
      any
      other right, power or remedy, whether conferred by this Agreement or now or
      hereafter available at law, in equity, by statute or otherwise.

     

    6.11
      Governing Law.
      This
      Agreement shall be governed by, interpreted under, and construed in accordance
      with the internal laws of the State of Delaware applicable to agreements made
      and to be performed within the State of Delaware, without giving effect to
      any
      choice-of-law provisions thereof that would compel the application of the
      substantive laws of any other jurisdiction. 

     

    6.12
      Waiver of Trial by Jury. 
      Each party hereby irrevocably and unconditionally waives the right to a trial
      by
      jury in any action, suit, counterclaim or other proceeding (whether based on
      contract, tort or otherwise) arising out of, connected with or relating to
      this
      Agreement, the transactions contemplated hereby, or the actions of the Investor
      in the negotiation, administration, performance or enforcement
      hereof.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Registration Rights Agreement
      to
      be executed and delivered by their duly authorized representatives as of the
      date first written above.

     

     

    
      	 	
              FORTRESS
                AMERICA ACQUISITION CORPORATION

            
	 	
              A
                Delaware corporation

            
	
               

            	
               

            
	
               

            	
              By:   
                /s/
                Harvey L.
                Weiss                                                     
                

            
	
               

            	
               Name:
                Harvey L. Weiss

              Title:
                President and Chief Executive Officer

            
	 	 
	 	
              INVESTORS:

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              WASHINGTON
                CAPITAL ADVISORS, LLC

            
	 	 	 
	
               

            	
               /s/
                C. Thomas
                McMillen                                                      
                 

            	
               

            
	 	
              By:
                C. Thomas McMillen

              Title:
                

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               /s/
                Harvey L.
                Weiss                                                             

            
	 	
              Harvey
                L. Weiss

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               /s/
                David J.
                Mitchell                                                               
                

            	
               

            
	 	
              David
                J. Mitchell

            
	 	 
	 	
               /s/
                Asa
                Hutchinson                                                                

            	
               

            
	 	
              Asa
                Hutchinson

            
	 	 
	 	
               /s/
                Donald L.
                Nickles                                                              
                

            	
               

            
	 	
              Donald
                L. Nickles

               

            

    

     

    
      
        	 	
                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

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