RE: Lock-Up Letter Agreement

To the Investors (as defined below)

RE: Lock-Up Letter Agreement

Ladies and Gentlemen:

This Lock-Up Letter Agreement is being delivered to you in connection with the Securities Purchase Agreement (the “Purchase Agreement”), dated as of December 22, 2005 by and among Cape Coastal Trading Company (the “Company”), uBid, Inc. and the investors party thereto (the “Investors”), with respect to the issuance of Common Stock, par value $0.001 per share, of the Company (the “Common Stock”) and warrants to acquire additional shares of Common Stock. Terms not defined herein have the meaning given them in the Purchase Agreement.

In order to induce you to enter into the Purchase Agreement, the undersigned agrees that for a period (the “Base Period”) of 365 days beginning on the First Closing Date (as defined in the Purchase Agreement), the undersigned will not, without your prior written consent, (i) other than with respect to redemptions by the Company required by the Merger Agreement, sell, offer to sell, contract or agree to sell, transfer, hypothecate, hedge, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, any shares of Common Stock or warrants or other rights to purchase shares of Common Stock, or cause the Company to file or cause to be declared effective a registration statement with the Securities and Exchange Commission (the “Commission”) relating to the offer and sale of any shares of Common Stock (other than the Registration Statement contemplated under Article VI of the Purchase Agreement or the Merger Agreement), or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any shares of Common Stock, or warrants or other rights to purchase shares of Common Stock, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, owned directly by the undersigned (including holding as a custodian) or with respect to which the undersigned has beneficial ownership within the rules and regulations of the Commission (collectively, the "Undersigned Shares"); provided that if the Registration Statement is not declared effective by the SEC on or prior to the Required Effectiveness Date, the number of days between the actual Effective Date and the Required Effectiveness Date will be added to the Base Period (the Base Period, s