EXHIBIT 10.7
LOCK-UP AGREEMENT
This LOCK-UP AGREEMENT (the “
Agreement ”) is made as of the ___ day of _____, 2009,
by _______________ (the “ Holder ”), maintaining
an address at __________________________, in connection with his or
its ownership of shares of CrowdGather, Inc., a Nevada corporation
(the “ Company ”).
WHEREAS, the Company requires substantial
additional funds to effectuate its business plan; expand its online
reach and presence; develop and enhance its technological
capabilities; file, prosecute, defend, and enforce its intellectual
property rights; and hire and retain key employees;
WHEREAS, the Company has negotiated certain
terms with one or more investors, who require the execution of this
Agreement as a condition precedent to their providing funds to the
Company;
WHEREAS, the holder is willing to enter into
this Agreement in connection with such investment on the terms
provided herein;
NOW, THEREFORE, in consideration of these
presents and for such other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, The
Holder agrees as follows:
a. The
Holder is the beneficial owner of the amount of shares of the
Common Stock, $.001 par value, of the Company (the “
Common Stock ”) designated on the signature page
hereto.
b. The
Holder acknowledges that the Company has entered into or will enter
into at or about the date hereof (the “ Offering
”) one or more agreements including one or more Subscription
Agreements with one or more subscribers (collectively, the “
Subscribers ”), effective as of the date hereof for
shares of the Company’s Series A Preferred Stock (the
“Series A Preferred”). The Holder
understands that, as a condition to closing the Offering, the
Subscribers have required, and the Company has agreed to obtain on
behalf of the Subscribers, an agreement from the Holder to refrain
from selling any securities of the Company from the initial Closing
Date1 (as that term is defined in the Subscription Agreements)
until the first anniversary thereof. The Holder has
entered into this Agreement in order to induce the Subscribers to
close the transactions contemplated by such Subscription
Agreements.
a. The
Holder hereby agrees that during the Restriction Period, without
the consent of the Required Holders (as that term is defined in the
Subscription Agreements), the Holder will not sell, transfer, or
otherwise dispose of any shares of Common Stock that the Holder
owns or has a right to acquire as of the date hereof or during the
Restriction Period, other than in connection with an offer made to
all stockholders of the Company in connection with merger,
consolidation, or similar transaction involving the
Company. The Holder further agrees that the Company is
authorized to and the Company agrees to place “stop
orders” on its books to prevent any transfer of shares of
Common Stock or other securities of the Company held by the Holder
in violation of this Agreement. The Company agrees to
use commercially reasonable efforts not to allow any transaction
inconsistent with this Agreement.
1 The
initial Closing Date shall be the date that not less than
$1,000,000 of gross subscription proceeds are transmitted by wire
transfer or otherwise credited to or for the benefit of the Company
and each such Subscriber shall have purchased, and the Company
shall have sold to each such Subscriber, that number of shares of
Series A Preferred as are set forth next to each such
Subscriber’s name on its respective Subscription Agreement at
a per-share purchase price $.35.
b. Notwithstanding
the foregoing restrictions on transfer, the Holder may, at any time
and from time to time during the Restriction Period, transfer all
or a portion of the shares of Common Stock (i) as bona fide gifts
or transfers by will or intestacy and (ii) to any trust for the
direct or indirect benefit of the undersigned or the immediate
family of the Holder, provided that any such transfer shall not
involve a disposition for value; provided, that, in the case of any
gift or transfer described in clauses (i) and (ii), each donee or
transferee agrees in writing to be bound by the terms and
conditions contained herein in the same manner as such terms and
conditions apply to the undersigned.
a. At
any time, and from time to time, after the signing of this
Agreement, the Holder will execute such additional instruments and
take such action as may be reasonably requested by the Subscribers
to carry out the intent and purposes of this Agreement.
b. This
Agreement shall be governed by and construed in accordance with the
laws of the State of Nevada without regard to principles of
conflicts of laws. Any action brought by either party
against the other concerning the transactions contemplated
by