EXHIBIT
10.3
VIRTUALSCOPICS, LLC
350 Linden Oaks
Rochester, New York 14625
September 27, 2005
To: [Insider
Group] Holders of VirtualScopics Securities (Common, Series A,
Series B and Series C, Stock Options and Warrants)
Re:
Lock-Up Agreement
Ladies and
Gentlemen:
VirtualScopics, LLC (“
VirtualScopics ” or the “ Company
”) plans to become a wholly-owned subsidiary of a
publicly-traded company through an exchange offer, concurrently
with a private offering of a minimum of $3,000,000 of Units, each
Unit consisting of one share of Series A Convertible Preferred
Stock and a warrant to purchase 200 shares of Common Stock (the
“ Funding Transactions ”). The Company plans to
use the proceeds of this transaction to increase its business
development efforts, further its research and development
activities and expand its operations to meet the growing demand of
its customers. The publicly-traded company, which is called “
Pubco ” for purposes of this lock-up agreement, will
then operate the business of VirtualScopics under the current
management of VirtualScopics. We currently expect to close these
Funding Transactions on or around October 31, 2005. Pubco is not
identified at this time due to securities regulations regarding
“insider” knowledge of upcoming transactions involving
publicly-traded securities.
You are a holder (a “ Holder
”) of (i) outstanding common units of VirtualScopics,
(ii) Series A, B or C preferred units of VirtualScopics
convertible into shares of common units and/or, (iii) warrants
or incentive stock options to purchase shares of common units of
VirtualScopics, which, if we are successful in closing the Funding
Transactions, will be exchanged for Common Stock of Pubco (or, in
the case of stock options and warrants, options or warrants to
purchase Pubco Common Stock) (the “ Pubco Shares
”) following the Funding Transactions.
It is essential to the success of the Funding
Transactions that the Company can give comfort to potential
investors that the “after market” for the Pubco Shares
will not be disrupted by a very substantial block of shares being
sold in a manner that may cause an adverse effect on then existing
Pubco shareholders. We will also be obtaining such comfort,
substantially in the form provided for below, from each of our
officers, directors and principal members.
By signing and returning this agreement in the
manner indicated below, the undersigned,
____________________________________ [Insert Your Name
Here ] hereby agrees not to,
directly or indirectly, publicly sell, contract to sell or
otherwise transfer any of the Pubco Shares beneficially owned by
you immediately after the closing of the Funding Transactions (your
“Initial Holdings”), except as follows:
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Beginning at
the date twelve (12) months after the Closing Date, and at 3-month
intervals thereafter, should the 30-day average trading
pric
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