FORM OF LOCK-UP AGREEMENT
EXHIBIT
10.7
EXHIBIT B
FORM OF LOCK-UP AGREEMENT
December 30, 2009
Each Holder referenced below:
Re: | Exchange Agreement, dated as of December 30, 2009 (the “Exchange Agreement”), between T3 Motion, Inc., a Delaware corporation (the “Company”) and the holders signatory thereto (each, a “Holder” and, collectively, the “Holders”) |
Ladies and Gentlemen:
Defined terms not otherwise defined in this letter agreement (the “Letter Agreement”)
shall have the meanings set forth in the Exchange Agreement. Pursuant to Section
3(d) of the Exchange Agreement and in satisfaction of a condition of the Company’s
obligations under the Exchange Agreement, the undersigned irrevocably agrees with the
Company that, from the date hereof until August 27, 2010 (such period, the “Lock-Up
Period”), the undersigned will not offer, sell, contract to sell, hypothecate, pledge or
otherwise dispose of (or enter into any transaction which is designed to, or might reasonably be
expected to, result in the disposition (whether by actual disposition or effective economic
disposition due to cash settlement or otherwise) by the undersigned or any Affiliate of the
undersigned or any person in privity with the undersigned or any Affiliate of the undersigned),
directly or indirectly, including the filing (or participation in the filing) of a registration
statement with the Commission in respect of, or establish or increase a put equivalent position or
liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange
Act with respect to, any shares of Common Stock or Common Stock Equivalents beneficially owned,
held or hereafter acquired by the undersigned (the “Securities”). Commencing on the end of
the Lock-Up Period, the undersigned shall have the right to sell an amount of Securities equal up
to 1/24th of the Securities in each calendar month through the end of the 6 month period
following the Lock-Up Period (such 6 month period, together with the Lock-Up Period, shall be
referred to as the “Restriction Period”). Beneficial ownership shall be calculated in accordance
with Section 13(d) of the Exchange Act. In order to enforce this covenant, the Company shall
impose irrevocable stop-transfer instructions preventing the Transfer Agent from effecting any
actions in violation of this Letter Agreement.
The undersigned acknowledges that the execution, delivery and performance of this Letter
Agreement is a material inducement to each Holder to complete the transactions contemplated
by the Exchange Agreement and that each Holder (which shall be a third party
beneficiary of this Letter Agreement) and the Company shall be entitled to specific performance of
the undersigned’s obligations hereunder. The undersigned hereby represents that the undersigned
has the power and authority to execute, deliver and perform this Letter Agreement, that the
undersigned has received adequate consideration therefor and that the undersigned will indirectly
benefit from the closing of the transactions contemplated by the Exchange Agreement.
This Letter Agreement may not be amended or otherwise modified in any respect without the
written consent of each of the Company, each Holder and the undersigned. This Letter
Agreement shall be construed and enforced in accordance with the laws of the State of New York
without regard to the principles of conflict of laws. The undersigned hereby irrevocably submits to
the exclusive jurisdiction of the United States District Court sitting in the Southern District of
New York and the courts of the State of New York located in Manhattan, for the purposes of any
suit, action or proceeding arising out of or relating to this Letter Agreement, and hereby waives,
and agrees not to assert in any such suit, action or proceeding, any claim that (i) it is not
personally subject to the jurisdiction of such court, (ii) the suit, action or proceeding is
brought in an inconvenient forum, or (iii) the venue of the suit, action or proceeding is improper.
The undersigned hereby irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by receiving a copy thereof sent to the Company at
the address in effect for notices to it under the Exchange Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. The
undersigned hereby waives any right to a trial by jury. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. The undersigned
agrees and understands that this Letter Agreement does not intend to create any relationship
between the undersigned and each Holder and that each Holder is not entitled to
cast any votes on the matters herein contemplated and that no issuance or sale of the Securities is
created or intended by virtue of this Letter Agreement.
This Letter Agreement may be executed in multiple counterparts, all of which when taken
together shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party, it being understood
that all parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall
create a valid and binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “.pdf” signature page were an
original thereof.
By its signature below, the Transfer Agent hereby acknowledges and agrees that, reflecting
this Letter Agreement, it has placed an irrevocable stop transfer instruction on all Securities
beneficially owned by the undersigned until the end of the Restriction Period. This Letter
Agreement shall be binding on successors and assigns of the undersigned with respect to the
Securities and any such successor or assign shall enter into a similar agreement for the benefit of
the Holders.
*** SIGNATURE PAGE FOLLOWS***
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This Letter Agreement may be executed in two or more counterparts, all of which when taken
together may be considered one and the same agreement.
/s/
Ki Nam
Signature
Ki Y. Nam
Print Name
Print Name
CEO
Position in Company
Position in Company
Address for Notice:
00 Xxxxx Xxxx Xxxxx
Xxxxxxx Xxxxx, XX 00000
27,155,230
Number of shares of Common Stock
Number of shares of Common Stock
1,000,000
Number of shares of Common Stock underlying subject to warrants, options, debentures or other convertible securities
Number of shares of Common Stock underlying subject to warrants, options, debentures or other convertible securities
976,865 — Series A Preferred Shares
1,953,730 — Series G Warrants
274,774 — Series E Warrants
By signing below, the Company agrees to enforce the restrictions on transfer set forth in this
Letter Agreement.
By:
/s/ Xxxxx Xxxxxxxx
|
Name: Xxxxx Xxxxxxxx |
Title: CFO |
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Acknowledged and agreed to
as of the date set forth above:
as of the date set forth above:
Securities Transfer Corporation
By:
Name:
Title:
Title:
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