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LOCK-UP AGREEMENT
This Lock-Up
Agreement (this “Agreement”), dated as of July 9, 2009,
by and between Suspect Detection Systems Inc., a Delaware
corporation (the “Company”), and NG-The Northern Group
LP (the "Investor").
NOW, THEREFORE, for good and valuable
consideration, the sufficiency and receipt of which consideration
are hereby acknowledged, the Investor agrees as follows:
1.
Background . As a
condition to the exchange by the Investor of all its shares of
ordinary stock in Suspect Detection Systems, Ltd. for 3,199,891
shares of common stock of the Company (the “Shares”),
the Investor hereby agrees that the shares of the Common Stock of
the Company (“Common Stock”) received by the Investor
shall be subject to the terms and conditions of this
Agreement.
a. Investor
hereby agrees that during the period commencing on the date hereof
and continuing until the one (1) year anniversary of the date
hereof (the “Restriction Period”), Investor will not,
directly or indirectly, offer, sell, assign, gift, transfer, grant
a participation in, pledge, or otherwise dispose or encumber or
agree to dispose or encumber in any manner any share of Common
Stock. Any attempt by Investor to transfer or encumber
any of its Common Stock in violation of the terms of this Agreement
shall be void and ineffective. Investor 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 Investor in
violation of this Agreement.
b. Any
subsequent issuance to and/or acquisition of shares or the right to
acquire shares by Investor during the Restriction Period will be
subject to the provisions of this Agreement.
c. Notwithstanding
the foregoing restrict
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