Exhibit 10.16
LOCK-UP AGREEMENT
THIS AGREEMENT (this " Agreement ") is
dated as of December 28, 2007, by and among Dentalserv.com, a
Nevada corporation (the " Company "), and shareholders of
the Company listed on Schedule A attached hereto (the "
Shareholders ").
WHEREAS, to induce the Company and the investors
(the “ Investors ”) to enter into the Series A
Convertible Preferred Stock Purchase Agreement dated as of the date
hereof (the “ Purchase Agreement ”) by and among
the Company and the Investors, the Shareholders have agreed not to
sell any shares of the Company’s common stock, $0.01 par
value per share (the " Common Stock "), that such
Shareholders presently own or may have acquired after the date
hereof, except in accordance with the terms and conditions set
forth therein. Capitalized terms used herein without
definition shall have the meanings assigned to such terms in the
Purchase Agreement.
NOW, THEREFORE, in consideration of the
covenants and conditions hereinafter contained, the parties hereto
agree as follows:
1.
Restriction on Transfer; Term . The Shareholder
hereby agrees with the Company that the Shareholder will not offer,
sell, contract to sell, assign, transfer, hypothecate, pledge or
grant a security interest in, or otherwise dispose of, or enter
into any transaction which is designed to, or might reasonably be
expected to, result in the disposition of (whether by actual
disposition or effective economic disposition due to cash
settlement or otherwise by the Company or any affiliate of the
Company or any person in privity with the Company or any affiliate
of the Company), directly or indirectly, any of the shares of
Common Stock from the period commencing on the Closing Date and
expiring on the date that is six (6) months following the effective
date of the registration statement filed by the Company with the
Securities and Exchange Commission providing for the resale of the
shares of Common Stock issuable upon conversion of the Preferred
Shares and exercise of the Warrants issued pursuant to the Purchase
Agreement (the “ Period
”). Notwithstanding the foregoing, subject to
applicable securities laws and the restrictions contained in the
Company’s certificate of incorporation, the undersigned may
transfer any securities of the Company (including, without
limitation, common stock) as follows: (i) pursuant to the exercise
and issuance of options; (ii) as a bona fide gift or gifts,
provided that the donee or donees thereof agree to be bound in
writing by the restrictions set forth herein; (iii) to any trust
for the direct or indirect benefit of the undersigned or 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; (iv) as a distribution to stockholders, partners or
members of the undersigned, provided that such stockholders,
partners or members agree to be bound in writing by the
restrictions set forth herein; (v) any transfer required under any
benefit plans or the Company’s amended and restated bylaws;
(vi) as collateral for any loan, provided that the lender agrees in
writing to be bound by the restrictions set forth herein; (vii)
with respect to sales of securities acquired after the Closing Time
in the open market; or (viii) to any of the Company’s current
stockholders, or members or stockholders of the Company’s
current stockholders, so long as the purchaser of those shares has
agreed, or agrees, to be bound by a lock-up agreement in
substantially the same form of this Lock-Up
Agreement. For purposes of this agreement,
“immediate family” shall mean any relationship by
blood, marriage or adoption, not more remote than first
cousin.
2.
Ownership
. During
the Period, the Shareholders shall retain all rights of ownership
in the Common Stock, including, without limitation, voting rights
and the right to receive any dividends, if any, that may be
declared in respect thereof.
3.
Company and Transfer Agent . The Company is
hereby authorized to disclose the existence of this Agreement to
its transfer agent. The Company and its transfer agent
are hereby authorized to decline to make any transfer of the Common
Stock if such transfer would constitute a violation or breach of
this Agreement and the Purchase Agreement.
4.
Notices . All notices, demands, consents,
requests, instructions and other communications to be given or
del
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