Contract
Exhibit
10.28
GOFISH
CORPORATION
December
3, 2008
To
the Investors listed on
Schedule
A hereto
Ladies
and Gentlemen:
Reference
is hereby made to the Securities Purchase Agreement, dated as of December 3,
2008 (the “Securities Purchase Agreement”), by and among GoFish Corporation, a
Nevada corporation (the “Company”), and the investors listed on Schedule A
hereto (the “Investors”), pursuant to which the Company is offering (the
“Offering”) up to 8,002,749 shares of the Company’s Series A Preferred Stock
(the “Preferred Shares”), initially convertible into 160,054,980 shares (the
“Conversion Shares”) of the Company’s Common Stock (the “Common Stock”), and
warrants (the “Warrants”) to purchase up to 64,021,992 shares of Common Stock
(the “Warrant Shares” and, together with the Shares, Conversion Shares and
Warrants, the “Securities”).
In
consideration of the Investors purchasing the Shares and the Warrants under the
Securities Purchase Agreement, and pursuant to Section 4.16 of the
Securities Purchase Agreement, the undersigned hereby agrees that, without the
prior written consent of the Investors holding a majority of the Conversion
Shares issuable or issued upon conversion of the Preferred Shares purchased
under the Securities Purchase Agreement, it will not, during the period
commencing on the date hereof and ending on the Termination Date (as defined
below and as such date may be extended as described below), (1) offer, sell,
assign, transfer, pledge, contract to sell, or otherwise dispose of, directly or
indirectly, any shares of Common Stock or securities convertible into or
exercisable or exchangeable for Common Stock owned by the undersigned on the
date hereof or acquired hereafter, including, without limitation, shares of
Common Stock or any such securities which may be deemed to be beneficially owned
by the undersigned as of the date hereof as defined in Rule 13d-3 under the
Securities Exchange Act of 1934, as the same may be amended or supplemented from
time to time (such shares or securities, the “Beneficially Owned Shares”), (2)
enter into any swap, hedge or other agreement or arrangement that transfers in
whole or in part, the economic risk of ownership of any Beneficially Owned
Shares, Common Stock or securities convertible into or exercisable or
exchangeable for Common Stock, or (3) engage in any short selling of any
Beneficially Owned Shares, Common Stock or securities convertible into or
exercisable or exchangeable for Common Stock, whether any such transaction
described in clause (1), (2) or (3) above is to be settled by delivery of Common
Stock or such other securities, in cash or otherwise. The foregoing sentence
shall not apply to (a) any Securities issued pursuant to the Securities Purchase
Agreement or (b) the transfer of Common Stock or any security convertible into
or exercisable or exchangeable for Common Stock (i) acquired in open market
transactions after the completion of the Offering, (ii) as a bona fide gift or
gifts for no consideration, (iii) to any trust, family limited partnership or
other person or entity for estate or tax planning purposes for the benefit of
the undersigned or the undersigned’s immediate family, in each case for no
consideration or (iv) by will or intestacy to the undersigned’s legal
representative, heir or legatee, provided that any permitted donee, transferee
or distributee in the case of (ii), (iii), or (iv) shall execute and deliver to
the Investors, prior to such transfer or other transaction, a duplicate form of
this letter and such other documents as the Investors may reasonably
request. For purposes of this Lock-Up Agreement, the term “immediate
family” shall mean any relationship by blood, marriage or adoption, not more
remote than first cousin. For purposes of this Lock-Up Agreement, the
term “Termination Date” shall mean the earlier of (x) the date on which all of
the Warrant Shares and Conversion Shares may be resold on a continuous basis
under Rule 415 of the Securities Act of 1933, as amended (or any successor, rule
or regulation) pursuant to one or more effective registration statements filed
with the Securities and Exchange Commission (each a “Registration Statement”)
and (y) the date on which all of the Warrant Shares and Conversion Shares may be
resold by the Investors under Rule 144 of the Securities Act of 1933, as amended
(“Rule 144”), in a ninety (90) day period without volume limitations; provided,
however, that if after the Termination Date one or more Registration Statements
cease for any reason to remain continuously effective as to all Warrant Shares
and Conversion Shares or the holders of the Warrant Shares and Conversion Shares
are not permitted to utilize the prospectus associated with the applicable
Registration Statement to resell such Warrant Shares or Conversion Shares (any
such event or circumstance being referred to as an “Event”),
then, notwithstanding anything herein to the contrary, the Termination Date as
defined herein shall not apply and the undersigned shall again be immediately,
as of the occurrence of such Event, subject to the restrictions set forth in
this Lock-Up Agreement with respect to any Beneficially Owned Securities held as
of the date of such Event, including, without limitation, sub-clauses (1), (2)
and (3) above, until a Termination Date thereafter reoccurs.
In
addition, notwithstanding anything herein to the contrary, beginning on the one
year anniversary of the date hereof, a portion of the Beneficially Owned Shares
subject to this Lock-Up Agreement shall be automatically released from the
restrictions contained herein in an amount equal to the total number of
Beneficially Owned Shares multiplied by a fraction, (i) the numerator of which
shall be the Warrant Shares and Conversion Shares registered for resale on a
Registration Statement at such time, and (ii) the denominator of which shall be
the total number of Warrant Shares and Conversion Shares then outstanding (and
which may not be resold under Rule 144 in a ninety (90) day period without
volume limitations). The Beneficially Owned Shares shall be
automatically released from the restrictions contained herein pursuant to this
paragraph from time to time as additional Warrant Shares and/or Conversion
Shares are registered for resale on a Registration Statement. Any
Beneficially Owned Shares that are automatically released from the restrictions
contained herein pursuant to this paragraph shall consist of those securities
selected by the undersigned in writing at or about the time such Beneficially
Owned Shares are so released. Any Beneficially Owned Shares that are
automatically released from the restrictions contained herein pursuant to this
paragraph shall again be subject to the restrictions contained herein upon the
occurrence of an Event, as described in the immediately preceding paragraph, but
only to the extent such Beneficially Owned Shares were previously automatically
released from the restrictions contained herein as a result of the registration
of Warrant Shares and Conversion Shares on the Registration Statement that has
ceased to be continuously effective as a result of such Event (or on the
Registration Statement relating to the prospectus that may no longer be utilized
as a result of such Event).
From
time to time, the Board of Directors of the Company (or an authorized committee
thereof) may expressly approve a waiver of all or any portion of the
restrictions set forth in this Lock-Up Agreement with respect to the shares of
Common Stock or the securities convertible into or exercisable or exchangeable
for Common Stock held by the undersigned. Any such waiver approval
shall include the approval and determination by at least a majority of the
Investor Directors (as such term is defined in the Investors Rights Agreement by
and among the Company and certain investors in the Company, dated on or about of
even date herewith).
2
This
Lock-Up Agreement is not intended to restrict the mere receipt, by the
undersigned, of securities awarded to the undersigned pursuant to the Company’s
employee benefit plans existing on the date hereof or hereafter and is not
intended to restrict the mere conversion or exchange by the undersigned of
options, warrants or other convertible or exchangeable securities.
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 of Common Stock except in compliance with the foregoing
restrictions.
The
undersigned hereby agrees that, to the extent that the terms of this Lock-Up
Agreement conflict with or are in any way inconsistent with any other agreement
to which the undersigned and the Company may be a party, this Lock-Up Agreement
supersedes such agreement.
The
undersigned hereby represents and warrants that the undersigned has full power
and authority to enter into this Lock-Up Agreement. All authority
herein conferred or agreed to be conferred shall survive the death or incapacity
of the undersigned and any obligations of the undersigned shall be binding upon
the heirs, personal representatives, successors and assigns of the
undersigned.
[Signature
page follows]
3
Very truly yours, | |||
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By:
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(Signature) | |||
Name: | |||
Address: |
Schedule
A
Investors
Panorama
Capital, L.P.
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Rustic
Canyon Ventures III, L.P.
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Rembrandt
Venture Partners Fund Two, L.P.
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