LOCKUP AGREEMENT
Exhibit
10.7
This
AGREEMENT (the “Agreement”) is made as of the 18th day of December, 2007, by
Xxxxxxx Xxxxxxx (“Holder”), in connection with his ownership of shares of
VoIP,
Inc.,
a Texas
corporation
(the “Company”).
NOW,
THEREFORE, for good and valuable consideration, the sufficiency and receipt
of
which consideration are hereby acknowledged, Holder agrees as
follows:
1. Background.
a.
Holder
is
the beneficial owner of the amount of shares of the Common Stock, $.001 par
value, of the Company (“Common Stock”) designated on the signature page
hereto.
x. Xxxxxx
acknowledges that the Company has entered into or will enter into at or about
the date hereof agreements with subscribers to for the subscriber to purchase
the Company’s Notes (“Notes”) and Preferred Stock, both of which are convertible
into the Company’s common stock. Holder understands that, as a condition to
proceeding with the Offering, the Company has agreed to obtain on behalf of
the
Subscribers an agreement from the Holder to refrain from selling any securities
of the Company from the date of the Subscription Agreement until the earlier
of
(i) all the Notes are completely satisfied, or (ii) the Company achieves one
profitable and cash flow positive quarter as reported in a form 10Q filed with
the Securities exchange Commission and four consecutive months in which the
Company is profitable and cash flow positive. For purposes of this Lockup
Agreement , cash flow positive shall be determine as contemplated and in
accordance with the Subscription Agreement dated the date hereof pursuant to
which the Notes where sold.
2. Share
Restriction.
a. Holder
hereby agrees that during the Restriction Period, the Holder will not sell
or
otherwise dispose of any shares of Common Stock or any options, warrants or
other rights to purchase shares of Common Stock or any other security of the
Company which Holder owns or has a right to acquire as of the date hereof,
other
than in connection with an offer made to all shareholders of the Company in
connection with merger, consolidation or similar transaction involving the
Company. Holder further agrees that the Company is authorized to and the Company
agrees to place "stop orders" on its books to prevent any transfer of shares
of
Common Stock or other securities of the Company held by Holder in violation
of
this Agreement. The Company agrees not to allow to occur any transaction
inconsistent with this Agreement.
b. Any
subsequent issuance to and/or acquisition by Holder of Common Stock or options
or instruments convertible into Common Stock will be subject to the provisions
of this Agreement.
c. Notwithstanding
the foregoing restrictions on transfer, the Holder may, at any time and from
time to time during the Restriction Period, transfer the Common Stock (i) as
bona fide gifts or transfers by will or intestacy, (ii) to any trust for the
direct or indirect benefit of the undersigned or the immediate family of the
Holder, provided that any such transfer shall not involve a disposition for
value, (iii) to a partnership which is the general partner of a partnership
of
which the Holder is a general partner, provided, that, in the case of any gift
or transfer described in clauses (i), (ii) or (iii), each donee or transferee
agrees in writing to be bound by the terms and conditions contained herein
in
the same manner as such terms and conditions apply to the undersigned. For
purposes hereof, "immediate family" means any relationship by blood, marriage
or
adoption, not more remote than first cousin.
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3. Miscellaneous.
a. At
any
time, and from time to time, after the signing of this Agreement Holder will
execute such additional instruments and take such action as may be reasonably
requested by the Subscribers to carry out the intent and purposes of this
Agreement.
b. This
Agreement shall be governed by and construed in accordance with the laws of
the
State of New York without regard to principles of conflicts of laws. Any action
brought by either party against the other concerning the transactions
contemplated by this Agreement shall be brought only in the state courts or
federal courts located in the state and county of New York. The parties to
this
Agreement hereby irrevocably waive any objection to jurisdiction and venue
of
any action instituted hereunder and shall not assert any defense based on lack
of jurisdiction or venue or based upon forum
non conveniens.
The
parties executing this Agreement and other agreements referred to herein or
delivered in connection herewith agree to submit to the in personam jurisdiction
of such courts and hereby irrevocably waive trial by jury.
The
prevailing party shall be entitled to recover from the other party its
reasonable attorney's fees and costs. In the event that any provision of this
Agreement or any other agreement delivered in connection herewith is invalid
or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of any
agreement.
c. The
restrictions on transfer described in this Agreement are in addition to and
cumulative with any other restrictions on transfer otherwise agreed to by the
Holder or to which the Holder is subject to by applicable law.
d. This
Agreement shall be binding upon Holder, its legal representatives, successors
and assigns.
e. This
Agreement may be signed and delivered by facsimile and such facsimile signed
and
delivered shall be enforceable.
f. The
Company agrees not to take any action or allow any act to be taken which would
be inconsistent with this Agreement.
g. The
Holder acknowledges that this Lockup Agreement is being entered into for the
benefit of the Subscribers identified in the Subscription Agreement dated
December 18, 2007, between the Company and the Subscribers, may be enforced
by
the Subscribers and may not be amended without the consent of the Subscriber,
which may be withheld for any reason.
IN
WITNESS WHEREOF, and intending to be legally bound hereby, Holder has executed
this Agreement as of the day and year first above written.
| HOLDER: |
COMPANY:
VoIP, INC.
|
||
| Xxxxxxx Xxxxxxx | /s/ Xxxxxx Xxxxxx | ||
|
(Print Name of Holder) |
By: Xxxxxx Xxxxxx |
||
| Its: Chief Accounting Officer |
500,000
Number
of
Shares of Common Stock
Beneficially
Owned
| /s/ Xxxxxxx Xxxxxxx | |||
|
|
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