Lock-Up Agreement
EXHIBIT
10.2
July 10,
0000
XxxxXxxxx
Xxxxxxxxxxx
000 Xxxxx
Xxxxxx, Xxxxxxx, XX 00000
Re:
WindTamer
Corporation –
Lock-Up Agreement
Dear
Sirs:
In
connection with the establishment of a public market trading of shares of common
stock (the “Common Stock”) of WindTamer Corporation and any successor (by merger
or otherwise) thereto (the “Company”), the undersigned agrees that, commencing
on the date that the Common Stock begins trading on any of the OTC Bulletin
Board Market, an over-the-counter market, any national securities exchange or
quotation service or otherwise (the “Effective Date”), and during the period
specified below (the “Lock-Up Period”), the undersigned will not, directly or
indirectly, offer, sell, contract to sell, pledge, grant any option to purchase,
make any short sale or otherwise dispose of any shares of Common Stock, or
securities convertible into or exchangeable or exercisable for any shares of
Common Stock, whether any such aforementioned transaction is to be settled by
delivery of Common Stock or such other securities, in cash or otherwise, owned
directly or indirectly by the undersigned (including holding as a custodian) or
with respect to which the undersigned has beneficial ownership within the rules
and regulations of the Securities and Exchange Commission (collectively the
“Undersigned’s Shares”).
The
foregoing restriction is expressly agreed to preclude, without limitation, the
undersigned from engaging in any hedging, swap or other arrangement or
transaction which is designed to or which reasonably could be expected to lead
to, result in or have the same effect of a sale, transfer or disposition of any
of the Undersigned’s Shares even if such Shares would be disposed of by someone
other than the undersigned. Such prohibited hedging or other transactions would
include, without limitation, any short sale or any purchase, sale or grant of
any right (including without limitation any put or call option) with respect to
any of the Undersigned’s Shares or with respect to any security that includes,
relates to, or derives any significant part of its value from such
Shares.
The
undersigned agrees not to publicly disclose during the Lock-Up Period the
intention to make or enter into any such transaction regarding the Undersigned’s
Shares described in the above paragraphs.
The
Lock-Up Period will commence on the date hereof and continue until the 18-month
anniversary of the Effective Date.
Notwithstanding
the foregoing, the undersigned may transfer the Undersigned’s Shares (i) as a
bona fide gift or gifts
to a member of members of the immediate family of the undersigned, provided that
the donee or donees thereof agree to be bound in writing by the restrictions set
forth herein or (ii) to any trust for the direct or indirect benefit of the
undersigned or members of the immediate family of the undersigned, provided that
the trustee of the trust agrees to be bound in writing by the restrictions set
forth herein, and provided further that any such transfer shall not involve a
disposition for value. For purposes of this Lock-Up Agreement, “immediate
family” shall mean any relationship by blood, marriage or adoption, not more
remote than first cousin.
The
undersigned represents and warrants that he now has, and, except as contemplated
by clauses (i) and (ii) in the above paragraph, for the duration of this Lock-Up
Agreement will have, good and marketable title to the Undersigned’s Shares, free
and clear of all liens, encumbrances, and claims whatsoever.
The
undersigned also agrees and consents to the entry of stop transfer instructions
with the Company’s transfer agent and registrar against the transfer of the
Undersigned’s Shares except in compliance with the foregoing restrictions. The
Company and its transfer agent and registrar are hereby authorized to decline to
make any transfer of shares of Common Stock if such transfer would constitute a
violation or breach of this Lock-Up Agreement.
In
addition, the undersigned agrees that, he will not, during the Lock-Up Period,
make any demand for or exercise any right with respect to, the registration of
any Securities or any security convertible into or exercisable or exchangeable
for the Securities.
The
undersigned understands and agrees that this Lock-Up Agreement is irrevocable
and shall be binding upon the undersigned’s heirs, legal representatives,
successors, and assigns.
This
Lock-Up Agreement may be executed in two counterparts, each of which shall be
deemed an original but both of which shall be considered one and the same
instrument.
This
Lock-Up Agreement will be governed by and construed in accordance with the laws
of the State of New York, without giving effect to any choice of law or
conflicting provision or rule (whether of the State of New York or any other
jurisdiction) that would cause the laws of any jurisdiction other than the State
of New York to be applied. In furtherance of the foregoing, the internal laws of
the State of New York will control the interpretation and construction of this
Lock-Up Agreement, even if under such jurisdiction’s choice of law or conflict
of law analysis, the substantive law of some other jurisdiction would ordinarily
apply.
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Very
truly yours,
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Xxxxxx
X. Xxxxx
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Exact
Name of Shareholder
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/s/
Xxxxxx X. Xxxxx
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Authorized
Signature
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Chief
Executive Officer
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Title
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Agreed
to and Acknowledged:
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WINDTAMER
CORPORATION
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By:
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/s/ Xxxx Xxxxxxxx | |||
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Name:
Xxxx Xxxxxxxx
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Title:
Chief Operating Officer
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