FORM OF LOCK-UP AGREEMENT
FORM
OF LOCK-UP AGREEMENT
______
__, 2007
Ladies
and Gentlemen:
Reference
is made to those discussions among Clear Skies Group, Inc., a New York
corporation (“Clear
Skies”)
and
Clear Skies Holdings, Inc., a Delaware corporation (the “Company”),
relating to a proposed business combination between Clear Skies and the Company
and a related private placement financing (the “Transactions”).
In
connection with the Transactions, the Company and Clear Skies contemplate
entering into a proposed Merger Agreement (the “Merger
Agreement”)
pursuant to which Clear Skies’s stockholders shall receive common stock, par
value $0.001 per share, of the Company (the “Common
Stock”)
in
consideration for shares of Clear Skies held by them at the effective time
of
the merger. In consideration of the Company and Clear Skies entering into the
Transactions, the undersigned hereby agrees as follows:
1. The
undersigned hereby covenants and agrees, except as provided herein, not to
(1)
offer, sell, contract to sell,
grant
any option to purchase, hypothecate, pledge,
or
otherwise dispose of or
(2)
transfer title to (a “Prohibited
Sale”)
any of
the shares (the “Acquired
Shares”)
of
Common Stock acquired by the undersigned pursuant to or in connection with
the
Merger Agreement, during the period commencing on the Closing Date (as that
term
will be defined in the Merger Agreement) and ending on the 15-month anniversary
of the Closing Date (the “Lockup
Period”),
without the prior written consent of the Placement Agent.
2. Notwithstanding
the foregoing, the undersigned shall be permitted during the Lockup Period,
without the consent of the Placement Agent or any other party, (i) to engage
in
transactions in connection with the undersigned’s participation in the Company’s
stock option plans, (ii) to transfer all or any part of the Acquired Shares
to
any family member, for estate planning purposes,
or to an
affiliate thereof (as such term is defined in Rule 405 under the Securities
Exchange Act of 1934, as amended), provided that such transferee agrees
in
writing with
the
Company to be bound hereby, (iii) to participate in a registered direct offering
by the Company in which the undersigned participates as a selling
stockholder,
(iv) to
participate
in any
transaction in which holders of the Common Stock of the Company participate
or
have the opportunity to participate pro rata, including, without limitation,
an
underwritten offering of Common Stock, a merger, consolidation or binding share
exchange involving the Company, a disposition of the Common Stock in connection
with the exercise of any rights, warrants or other securities distributed to
the
Company’s stockholders, or a tender or exchange offer for the Common Stock or
(v) to transfer all or any part of the Acquired Shares in
privately negotiated transactions to which the so-called “Section 4(1½)”
exemption applies,
provided that the transferee in any such transaction agrees in
writing with
the
Company to be bound hereby, and no transaction contemplated by the foregoing
clauses (i),
(ii),
(iii),
(iv)
and (v) shall be deemed a Prohibited Sale for purposes of this Letter
Agreement.
3. This
Letter Agreement shall be governed by and construed in accordance with the
laws
of the State of Delaware.
4. This
Letter Agreement will become a binding agreement among the undersigned as of
the
Closing Date. In the event that no closing occurs under the Merger Agreement,
this letter agreement shall be null and void. This Letter Agreement (and the
agreements reflected herein) may be terminated by the mutual agreement of the
Company and the undersigned with the consent of the Placement Agent, and if
not
sooner terminated, will terminate upon the expiration date of the Lockup Period.
This Letter Agreement may be duly executed by facsimile and in any number of
counterparts, each of which shall be deemed an original, and all of which
together shall be deemed to constitute one and the same instrument. Signature
pages from separate identical counterparts may be combined with the same effect
as if the parties signing such signature page had signed the same counterpart.
This Letter Agreement may be modified or waived only by a separate writing
signed by each of the parties hereto expressly so modifying or waiving such
agreement.
Very
truly yours,
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_____________________________________________ | ||||||
Print
Name:
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Address:_____________________________________
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Number
of shares of Common Stock owned: __________
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Certificate
Numbers: _____________________________
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Accepted
and Agreed to:
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By:
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