Form of Lock-Up Agreement
Exhibit
10.13
Form
of Lock-Up Agreement
July __,
2010
Xxxxx
Xxxxxx, Carret & Co., LLC
000 Xxxxxxxxx
Xxxxxx
Xxx Xxxx,
XX 00000
Ladies
and Gentlemen:
The
undersigned understands that Xxxxx Xxxxxx, Carret & Co., LLC, as
representative for the underwriters (“Xxxxx Xxxxxx”) proposes to
enter into an Underwriting Agreement (the “Underwriting Agreement”) with
China SLP Filtration Technology, Inc., a Delaware corporation (the “Company”), providing for the
public offering (the “Offering”) by the Company of
shares of common stock, par value $0.001 per share, of the Company (the “Common Stock”).
In
consideration of the foregoing, and in order to induce you and other
underwriters to act as underwriters in the Offering, the undersigned hereby
irrevocably agrees that it will not, without the prior written consent of Xxxxx
Xxxxxx for a period of __ days from the date that the Registration Statement
becomes effective (the “Lock-Up
Period”), directly or indirectly, (i) offer, sell (including “short”
selling), assign, transfer, encumber, pledge, register, contract to sell, grant
an option, right or warrant to purchase, establish an open “put equivalent
position” within the meaning of Rule 16a-1(h) under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), announce the
intention to sell, sell any option or contract to purchase, purchase any option
or contract to sell, or otherwise dispose of any shares of Common Stock or
securities, options or rights convertible or exchangeable into, or exercisable
for, Common Stock held of record or beneficially owned (within the meaning of
Rule 13d-3 under the Exchange Act); or (ii) enter any swap or other arrangement
that transfers all or a portion of the economic consequences associated with the
ownership of any Common Stock; provided, however, that if (1) during the last 17
days of the initial Lock-Up Period, the Company releases earnings results or
material news or a material event relating to the Company occurs or (2) prior to
the expiration of the initial Lock-Up Period, the Company announces that it will
release earnings results during the 16-day period beginning on the last day of
the initial Lock-Up Period, then in either case, the Lock-Up Period will be
extended until the expiration of the 18-day period beginning on the date of
release of the earnings results or the occurrence of the material news or
material event, as applicable, unless Xxxxx Xxxxxx waives, in writing, such
extension.
The
undersigned agrees that, prior to engaging in any transaction or taking any
other action that is subject to the terms of this agreement during the period
from and including the date that the Registration Statement becomes effective
through and including the 34th day following the expiration of the 90-day
period, the undersigned will give prior notice thereof to the Company and will
not consummate any such transaction or take any such action unless it has
received written confirmation from the Company that the Lock-Up Period (as the
same may have been extended pursuant to the previous paragraph) has
expired.
The
undersigned further agrees that it will not, during the Lock-Up Period, make any
demand or request for or exercise any right with respect to the registration of
any shares of Common Stock or any securities convertible into or exercisable or
exchangeable for Common Stock. Notwithstanding anything to the
contrary contained herein Xxxxx Xxxxxx acknowledges and agrees that the shares
set forth in Exhibit A are being registered for resale pursuant to the
Registration Statement.
Notwithstanding
the foregoing, the undersigned may transfer any shares of Common Stock or
securities convertible into or exchangeable or exercisable for the Company’s
Common Stock either during his or her lifetime or on death by will or intestacy
to his or her immediate family or to a trust the beneficiaries of which are
exclusively the undersigned and/or a member or members of his or her immediate
family, or if the undersigned is a corporation, company, business trust,
association, limited liability company, partnership, limited liability
partnership, limited liability limited partnership or other entity
(collectively, the “Entities” or, individually,
the “Entity”), the
undersigned may transfer shares of Common Stock to any Entity which is directly
or indirectly controlled by the undersigned; provided, however, that, prior
to any such transfer, each transferee shall execute an agreement, satisfactory
to Xxxxx Xxxxxx pursuant to which each transferee shall agree to receive and
hold such shares of Common Stock, or securities convertible into or exchangeable
or exercisable for the Common Stock, subject to the provisions hereof, and there
shall be no further transfer except in accordance with the provisions
hereof. For the purposes of this paragraph, “immediate family” shall mean
spouse, lineal descendant, father, mother, brother or sister of the
transferor. In addition, for the avoidance of doubt, nothing in this
agreement shall restrict the ability of the undersigned to purchase shares of
Common Stock on the open market or exercise any option to purchase shares of
Common Stock granted under any benefit plan of the Company.
The
undersigned hereby waives any rights of the undersigned to sell shares of Common
Stock or any other security issued by the Company pursuant to the Registration
Statement. The undersigned also hereby waives any notice requirement
concerning the Company’s intention to file the Registration Statement and sell
shares of Common Stock thereunder.
The
undersigned agrees and consents to the entry of stop transfer instructions with
the Company’s transfer agent against the transfer of Common Stock, or securities
convertible into or exchangeable or exercisable for the Common Stock, held by
the undersigned except in compliance with this agreement.
The
undersigned understands that the agreements of the undersigned are irrevocable
and shall be binding upon the undersigned’s heirs, legal representatives,
successors and assigns.
The
undersigned understands and agrees that Xxxxx Xxxxxx shall have the right to
specifically enforce all of the obligations of the undersigned under this
agreement (without posting a bond or other security), in addition to recovering
damages by reason of any breach of any provision of this agreement and to
exercise all other rights granted by law. Furthermore, the
undersigned recognizes that if it fails to perform, observe, or discharge any of
its obligations under this agreement, any remedy at law may prove to be
inadequate relief to Xxxxx Xxxxxx. Therefore, the undersigned agrees
that Xxxxx Xxxxxx shall be entitled to seek temporary and permanent injunctive
relief in any such case without the necessity of proving actual damages and
without posting a bond or other security.
The
undersigned understands that the undersigned shall be released from all
obligations under this agreement if (i) the Company or the Underwriters
inform the other in writing that it does not intend to proceed with the
Offering, (ii) the underwriting agreement providing for the offering (the
“Underwriting
Agreement”) does not become effective before December 31, 2010, (iii) the
Underwriting Agreement (other than the provisions thereof which survive
termination) is terminated prior to payment for and delivery of the Common Stock
to be sold thereunder, or (iv) the Offering is not completed by December
31, 2010.
The
undersigned agrees that if any provision of this agreement is held to be invalid
or unenforceable for any reason, such provision will be conformed to prevailing
law rather than voided, if possible, in order to achieve the intent of the
parties and, in any event, the remaining provisions of this agreement shall
remain in full force and effect and shall be binding upon the
undersigned.
The
undersigned agrees that the terms and provisions of this agreement shall be
construed in accordance with the laws of the State of New York and the federal
laws of the United States of America applicable therein.
Very
truly yours,
|
(Name):
|
(Address)
|
EXHIBIT
A
Name of Selling
Stockholder
|
Number of Shares
of Common Stock
Beneficially Owned
Prior to the
Offering (1) (2)
|
Percentage
|
Maximum
Number
of Shares
to be Sold in
Offering
|
Number of
Shares
Beneficially
Owned
after
Offering
|
Percentage
|
|||||||||||||||
Newise
Holdings Limited
PO
Box 957 Offshore
Incorporations
Center,
Road
Town, Tortola,
British
Virgin Islands
|
||||||||||||||||||||
United
Best, Room 601,
Albion
Plaza, 0-0 Xxxxxxxxx Xxxx,
Xxxx
Xxx Xxxx, Xxxxxxx, Xxxx Xxxx
|
||||||||||||||||||||
Primary
Capital LLC,
00
Xxxx Xxxxxx,
0xx
Xxxxx,
Xxx
Xxxx XX 00000
|
||||||||||||||||||||
Xxxx
Xxx
00
Xxxxxxx Xxxxxx 0xx Xxxxx,
Xxxxx
Xxxxxxxx, Xxxxxx Xxxxx
|
100,000 | * | 100,000 | 0 | - | |||||||||||||||
Xxxxxx
Xxxxxxx
000
Xxxxx 000 Xxxx, Xxxxxxxx, XX 00000
|
||||||||||||||||||||
Ist
Orion Corp
0000
Xxxxxxx Xxxxx, Xxxx Xxxxxx, XX 00000
|
32,167 | * | 32,167 | 0 | - | |||||||||||||||
Lorikeet,
Inc
000
Xxxxx 000 Xxxx, Xxxxxxxx, XX 00000
|
1,000 | * | 1,000 | 0 | - | |||||||||||||||
Jayhawk
Private Equity Fund II, LP
000
Xxxxx Xxxx 000-000
XxxxxxxXxxxxxx,
XX 00000
|
||||||||||||||||||||
Blue
Earth Fund LP
0000
Xxxxx Xxxxxx XxxxxXxxxxx, XX 00000
|
||||||||||||||||||||
Lumen
Capital LP
000
Xxxx Xxxxx
Xxxxxxxx,
XX 00000
|
||||||||||||||||||||
Trading Systems
LLC
00
Xxx Xxxx Xxxxx, Xxxxxxxxx Xxxxx XX 00000
|
||||||||||||||||||||
Xxxxx
X. Little
0000
Xxxxxxx Xxx., Xxxxx 000, Xxxxxx Xxxx, XX 00000
|
||||||||||||||||||||
Xxxxxxx
Xxxxxxxx
00
Xxxxxxxx Xx.
Xxx
Xxxx XX 00000
|
||||||||||||||||||||
Xxxxx
Xxxx
0000
Xxxx Xxx
Xxx
Xxxx, XX 00000
|
||||||||||||||||||||
Xxxxxxx
X’Xxxxxxx
000
Xxxxx Xx. Xxx.0X, Xxxxxxxx, XX 00000
|
||||||||||||||||||||
Sik
Wing Sung
00
Xxxxxxxx Xxxxxx, Xxxxxx Xxxxxx, XX 00000
|