Document:

ex101.htm

    LOCK-UP
      AND LEAK-OUT AGREEMENT

    

    THIS
      LOCK-UP AND LEAK-OUT
      AGREEMENT (the “Agreement”) is entered into and
      effective as of August 24, 2007 (the “Effective Date”) by and between
      AudioStocks, Inc., a Nevada corporation (the “Company”) and BCGU, LLC, a
      shareholder of the Company (the “Shareholder”).

    

    RECITALS

    

    WHEREAS,
      the Shareholder owns
      15,284,749 shares of the Company’s common stock (the “Common
      Stock”).

    

    WHEREAS,
      the Shareholder understands
      that the Company may be seeking additional funding and believes that the lock-up
      and leak-out restrictions and provisions, as further described herein, on the
      transfer and sale of the Common Stock the Shareholder currently owns will
      improve the Company’s prospects for obtaining additional financing and thus
      improving the overall financial condition of the Company.

    

    WHEREAS,
      for valuable consideration
      consisting of $100, the receipt and sufficiency of which is hereby acknowledged,
      the Shareholder has agreed to enter into this Agreement.

    

    AGREEMENT

    

    NOW,
      THEREFORE, in consideration of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration, the receipt of which is hereby
      acknowledged it is hereby agreed as follows:

    

    1.           Lock-Up
      Provisions.    Subject to the terms of this Agreement,
      the Shareholder agrees that for a period of six (6) months from the Effective
      Date of this Agreement (the “Lock-Up Period”), the Shareholder shall not,
      directly or indirectly, sell, offer to sell, contract to sell, assign, pledge,
      hypothecate, encumber or otherwise transfer, or enter into any contract, option
      or other arrangement or understanding with respect to the sale, assignment,
      pledge or other disposition of (collectively, a “Transfer”) any
      beneficial rights with respect to the Common Stock

    

    2.           Leak-Out
      Provisions.    Subject to the terms of this
      Agreement, the Shareholder agrees that for a period beginning upon the end
      of
      the Lock-Up Period and ending twenty four (24) months from the Effective Date
      of
      this Agreement (the “Leak-Out Period”), the Shareholder shall not
      Transfer, in any given ninety (90) day period, more than one percent (1%) of
      the
      Float1.

    
       

      1           The
        “Float” shall mean the number of issued and outstanding shares of Common
        Stock held by Non-Affiliates (as defined in Rule 144 of the Securities Act
        of
        1933) of the Company

    3.           Consideration.   For
      and in consideration of the Shareholder entering into this Agreement, the
      Shareholder shall receive from the Company consideration consisting of $100
      (the
“Consideration”).

     

    4.           Transfer
      Agent Instructions.    The Shareholder agrees and
      consents to the entry of stop transfer instructions (the “Stop Transfer
      Instructions”) with the Company’s transfer agent against the Transfer of
      Common Stock held by the Shareholder except in compliance with the terms and
      conditions of this Agreement. After the twelve (12) month period following
      the
      Effective Date of this Agreement has lapsed, the Company shall direct the
      transfer agent to release Stop Transfer Instructions.

    

    5.           Representations,
      Warranties and Covenants of the Shareholder.

    

    The
      Shareholder represents, warrants
      and agrees with, the Company that:

    

    (a)           this
      Agreement has been duly executed and delivered by the Shareholder and
      constitutes a valid and binding obligation of the Shareholder enforceable in
      accordance with its terms;

    

    (b)           neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby will result in any breach or violation of,
      be
      in conflict with, or constitute a default under, any agreement or instrument
      to
      which the Shareholder is a party or by which the Shareholder may be affected
      or
      is bound;

    

    (c)           The
      Shareholder is not subject to or obligated under any provisions of any law,
      regulation, order, judgment or decree which would be breached or violated by
      the
      execution, delivery and performance of this Agreement by the Shareholder and
      the
      consummation of the transactions contemplated hereby; and

    

    6.           Miscellaneous.

    

    (a)           Notices.    All
      notices or other communications required or permitted by this Agreement or
      by
      law to be served on or given to either party to this Agreement by the other
      party shall be in writing and shall be deemed duly served when personally
      delivered to the party at an address agreed upon by both parties.

    

    (b)           Assignment.  This
      Agreement and all the provisions hereof will be binding upon and inure to the
      benefit of the parties hereto and their respective successors and permitted
      assigns.

    

    (c)           Governing
      Law.   The internal law, without regard for conflicts of law
      principals, of the State of Delaware will govern all questions concerning the
      construction, validity and interpretation of this Agreement and the performance
      of the obligations imposed by this Agreement.

    

    (d)           Jury
      Trial Waiver.   To the fullest extent permitted by law, each
      of the parties hereto hereby knowingly, voluntarily and intentionally waives
      its
      respective rights to a jury trial of any claim or cause of action based upon
      or
      arising out of this Agreement or any other document or any dealings between
      them
      relating to the subject matter of this Agreement and other
      documents.

     

    (e)           Counterparts.  This
      Agreement may be executed in one or more counterparts, any one of which need
      not
      contain the signatures of more than one party, but all such counterparts taken
      together shall constitute one and the same instrument.

    

    (f)           Severability.  Whenever
      possible, each provision of this Agreement will be interpreted in such manner
      as
      to be effective and valid under applicable law, but if any provision of this
      Agreement is held to be prohibited by or invalid under applicable law, such
      provision will be ineffective only to the extent of such provision or
      invalidity, without invalidating the remainder of such provision or the
      remaining provisions of this Agreement.

    

    (g)           Amendment;
      Waiver.   The Board of Directors may amend the terms of the
      Agreement if it determines it is in the best interest of the Company and its
      shareholders. In the event either party wishes to amend this Agreement, the
      Agreement may only be amended or waived in a writing executed by the both
      parties.

    

    (h)           Complete
      Agreement.  This Agreement contains the complete agreement between
      the parties hereto and supersedes any prior understandings, agreements or
      representations by or between the parties, written or oral, which may have
      related to the subject matter hereof in any way.

    

     

    IN
      WITNESS WHEREOF, the parties hereby
      have executed this Agreement as of the date first written above.

    

    

    
      	
              COMPANY:

               

              AUDIOSTOCKS,
                INC.

               

              /s/
                Luis J. Leung

              _____________________________

              By:
                Luis J. Leung

              Its:
                President

            	
              SHAREHOLDER:

               

              BCGU,
                LLC

               

              /s/
                Mark L. Baum, Esq.

              _____________________________

              By:
                Mark L. Baum, Esq.

              Its:
                Managing Memberex102.htm

    LOCK-UP
      AND LEAK-OUT AGREEMENT

    

    THIS
      LOCK-UP AND LEAK-OUT
      AGREEMENT (the “Agreement”) is entered into and
      effective as of August 24, 2007 (the “Effective Date”) by and between
      AudioStocks, Inc., a Nevada corporation (the “Company”) and Luis J.
      Leung, a shareholder of the Company (the “Shareholder”).

    

    RECITALS

    

    WHEREAS,
      the Shareholder owns 420,308
      shares of the Company’s common stock (the “Common Stock”).

    

    WHEREAS,
      the Shareholder understands
      that the Company may be seeking additional funding and believes that the lock-up
      and leak-out restrictions and provisions, as further described herein, on the
      transfer and sale of the Common Stock the Shareholder currently owns will
      improve the Company’s prospects for obtaining additional financing and thus
      improving the overall financial condition of the Company.

    

    WHEREAS,
      for valuable consideration
      consisting of $100, the receipt and sufficiency of which is hereby acknowledged,
      the Shareholder has agreed to enter into this Agreement.

    

    AGREEMENT

    

    NOW,
      THEREFORE, in consideration of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration, the receipt of which is hereby
      acknowledged it is hereby agreed as follows:

    

    1.           Lock-Up
      Provisions.    Subject to the terms of this Agreement,
      the Shareholder agrees that for a period of six (6) months from the Effective
      Date of this Agreement (the “Lock-Up Period”), the Shareholder shall not,
      directly or indirectly, sell, offer to sell, contract to sell, assign, pledge,
      hypothecate, encumber or otherwise transfer, or enter into any contract, option
      or other arrangement or understanding with respect to the sale, assignment,
      pledge or other disposition of (collectively, a “Transfer”) any
      beneficial rights with respect to the Common Stock

    

    2.           Leak-Out
      Provisions.    Subject to the terms of this
      Agreement, the Shareholder agrees that for a period beginning upon the end
      of
      the Lock-Up Period and ending twenty four (24) months from the Effective Date
      of
      this Agreement (the “Leak-Out Period”), the Shareholder shall not
      Transfer, in any given ninety (90) day period, more than one percent (1%) of
      the
      Float1.

     

    
      1           The
        “Float” shall mean the number of issued and outstanding shares of Common
        Stock held by Non-Affiliates (as defined in Rule 144 of the Securities Act
        of
        1933) of the Company

    

     

    3.           Consideration.   For
      and in consideration of the Shareholder entering into this Agreement, the
      Shareholder shall receive from the Company consideration consisting of $100
      (the
“Consideration”).

     

    4.           Transfer
      Agent Instructions.      The Shareholder
      agrees and consents to the entry of stop transfer instructions (the “Stop
      Transfer Instructions”) with the Company’s transfer agent against the
      Transfer of Common Stock held by the Shareholder except in compliance with
      the
      terms and conditions of this Agreement. After the twelve (12) month period
      following the Effective Date of this Agreement has lapsed, the Company shall
      direct the transfer agent to release Stop Transfer Instructions.

    

    5.           Representations,
      Warranties and Covenants of the Shareholder.

    

    The
      Shareholder represents, warrants
      and agrees with, the Company that:

    

    (a)           this
      Agreement has been duly executed and delivered by the Shareholder and
      constitutes a valid and binding obligation of the Shareholder enforceable in
      accordance with its terms;

    

    (b)           neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby will result in any breach or violation of,
      be
      in conflict with, or constitute a default under, any agreement or instrument
      to
      which the Shareholder is a party or by which the Shareholder may be affected
      or
      is bound;

    

    (c)           The
      Shareholder is not subject to or obligated under any provisions of any law,
      regulation, order, judgment or decree which would be breached or violated by
      the
      execution, delivery and performance of this Agreement by the Shareholder and
      the
      consummation of the transactions contemplated hereby; and

    

    6.           Miscellaneous.

    

    (a)           Notices.    All
      notices or other communications required or permitted by this Agreement or
      by
      law to be served on or given to either party to this Agreement by the other
      party shall be in writing and shall be deemed duly served when personally
      delivered to the party at an address agreed upon by both parties.

    

    (b)           Assignment.  This
      Agreement and all the provisions hereof will be binding upon and inure to the
      benefit of the parties hereto and their respective successors and permitted
      assigns.

    

    (c)           Governing
      Law.   The internal law, without regard for conflicts of law
      principals, of the State of Delaware will govern all questions concerning the
      construction, validity and interpretation of this Agreement and the performance
      of the obligations imposed by this Agreement.

    

    (d)           Jury
      Trial Waiver.   To the fullest extent permitted by law, each
      of the parties hereto hereby knowingly, voluntarily and intentionally waives
      its
      respective rights to a jury trial of any claim or cause of action based upon
      or
      arising out of this Agreement or any other document or any dealings between
      them
      relating to the subject matter of this Agreement and other
      documents.

     

    (e)           Counterparts.  This
      Agreement may be executed in one or more counterparts, any one of which need
      not
      contain the signatures of more than one party, but all such counterparts taken
      together shall constitute one and the same instrument.

    

    (f)           Severability.  Whenever
      possible, each provision of this Agreement will be interpreted in such manner
      as
      to be effective and valid under applicable law, but if any provision of this
      Agreement is held to be prohibited by or invalid under applicable law, such
      provision will be ineffective only to the extent of such provision or
      invalidity, without invalidating the remainder of such provision or the
      remaining provisions of this Agreement.

    

    (g)           Amendment;
      Waiver.   The Board of Directors may amend the terms of the
      Agreement if it determines it is in the best interest of the Company and its
      shareholders. In the event either party wishes to amend this Agreement, the
      Agreement may only be amended or waived in a writing executed by the both
      parties.

    

    (h)           Complete
      Agreement.  This Agreement contains the complete agreement between
      the parties hereto and supersedes any prior understandings, agreements or
      representations by or between the parties, written or oral, which may have
      related to the subject matter hereof in any way.

    

    

    IN
      WITNESS WHEREOF, the parties hereby
      have executed this Agreement as of the date first written above.

    

    

    
      	
              COMPANY:

               

              AUDIOSTOCKS,
                INC.

               

              /s/
                Luis J. Leung

              _____________________________

              By:
                Luis J. Leung

              Its:
                President

            	
              SHAREHOLDER:

               

              LUIS
                J. LEUNG

               

              /s/
                Luis J. Leung

              _____________________________

              By:
                Luis J. Leung

              An
                individual

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