Document:

bancroft8k113007ex10-9.htm

    
      

      

    

    Exhibit 10.9

     

    FORM
      OF
      LOCK-UP AGREEMENT

    

    November
      30, 2007

    

    Each
      Purchaser referenced below:

    

    
      	
               

            	
              Re:

            	
              Securities
                Purchase Agreement, dated as of November 30, 2007 (the “Purchase
                Agreement”), between Bancroft Uranium Inc., a Nevada corporation
                (the “Company”) and the purchasers signatory thereto (each, a
                “Purchaser” and, collectively, the
                “Purchasers”)

            

    

     

    Ladies
      and Gentlemen:

     

    Defined
      terms not otherwise defined in this letter agreement (the “Letter
      Agreement”) shall have the meanings set forth in the Purchase
      Agreement.  Pursuant to Section 2.2(a) of the Purchase Agreement and
      in satisfaction of a condition of the Company’s obligations under the Purchase
      Agreement, the undersigned irrevocably agrees with the Company that, from the
      date hereof until the 12 month anniversary of the Effective Date (such period,
      the “Restriction Period”), the undersigned will not offer,
      sell,  contract to sell, hypothecate, pledge or otherwise dispose of
      (or enter into any transaction which is designed to, or might reasonably be
      expected to, result in the disposition (whether by actual disposition or
      effective economic disposition due to cash settlement or otherwise) by the
      undersigned or any Affiliate of the undersigned or any person in privity with
      the undersigned or any Affiliate of the undersigned), directly or indirectly,
      including the filing (or participation in the filing) of a registration
      statement with the Commission in respect of, or establish or increase a put
      equivalent position or liquidate or decrease a call equivalent position within
      the meaning of Section 16 of the Exchange Act (each, a “Transfer”) with
      respect to, any shares of Common Stock or Common Stock Equivalents beneficially
      owned, held or hereafter acquired by the undersigned (the
“Securities”).  Beneficial ownership shall be calculated in
      accordance with Section 13(d) of the Exchange Act.  In order to
      enforce this covenant, the Company shall impose irrevocable stop-transfer
      instructions preventing the Transfer Agent from effecting any actions in
      violation of this Letter Agreement.

    

    Notwithstanding
      the foregoing, the undersigned shall be permitted to make Transfers of the
      shares of the Company’s Common Stock held by the undersigned during the
      Restriction Period expressly in accordance with the following (collectively,
      the
“Sale Allowances”):

     

    1.           The
      undersigned shall be permitted to make Transfers of the shares of the Company’s
      Common Stock held by the undersigned in an amount equal to up to 50,000 shares
      of Common Stock, subject to adjustment for reverse and forward stock splits,
      stock dividends, stock combinations and other similar transactions of the Common
      Stock that occur after the date of this Letter Agreement, during any 45 calendar
      day period commencing with the first 45 calendar days following the date hereof
      (the undersigned acknowledges and agrees that the foregoing limits on Transfers
      are non-cumulative and may not be carried over from one 45 day period to the
      next).

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    2.           Public,
      open-market sales of the Common Stock at a price greater than $2.00 per share
      (subject to adjustment for reverse and forward stock splits, stock dividends,
      stock combinations and other similar transactions of the Common Stock that
      occur
      after the date of this Letter Agreement).

     

    The
      undersigned acknowledges that the execution, delivery and performance of this
      Letter Agreement is a material inducement to each Purchaser to complete the
      transactions contemplated by the Purchase Agreement and that each Purchaser
      (which shall be a third party beneficiary of this Letter Agreement) and the
      Company shall be entitled to specific performance of the undersigned’s
      obligations hereunder.  The undersigned hereby represents that the
      undersigned has the power and authority to execute, deliver and perform this
      Letter Agreement, that the undersigned has received adequate consideration
      therefor and that the undersigned will indirectly benefit from the closing
      of
      the transactions contemplated by the Purchase Agreement.

    

    This
      Letter Agreement may not be amended or otherwise modified in any respect without
      the written consent of each of the Company, each Purchaser and the
      undersigned.  This Letter Agreement shall be construed and enforced in
      accordance with the laws of the State of New York without regard to the
      principles of conflict of laws. The undersigned hereby irrevocably submits to
      the
      exclusive jurisdiction of the United States District Court sitting in the
      Southern District of New York and the courts of the State of New York located
      in
      Manhattan, for the purposes of any suit, action or proceeding arising out of
      or
      relating to this Letter Agreement, and hereby waives, and agrees not to assert
      in any such suit, action or proceeding, any claim that (i) it is not personally
      subject to the jurisdiction of such court, (ii) the suit, action or proceeding
      is brought in an inconvenient forum, or (iii) the venue of the suit, action
      or
      proceeding is improper. The undersigned hereby irrevocably waives
      personal service of process and consents to process being served in any such
      suit, action or proceeding by receiving a copy thereof sent to the Company
      at
      the address in effect for notices to it under the Purchase Agreement and agrees
      that such service shall constitute good and sufficient service of process and
      notice thereof.  The undersigned hereby waives any right to a trial by
      jury.  Nothing contained herein shall be deemed to limit in any way
      any right to serve process in any manner permitted by law.  The
      undersigned agrees and understands that this Letter Agreement does not intend
      to
      create any relationship between the undersigned and each Purchaser and that
      each
      Purchaser is not entitled to cast any votes on the matters herein contemplated
      and that no issuance or sale of the Securities is created or intended by virtue
      of this Letter Agreement.

    

    By
      its
      signature below, the Company’s Transfer Agent hereby acknowledges and agrees
      that, reflecting this Letter Agreement, it has placed an irrevocable stop
      transfer instruction on all Securities beneficially owned by the undersigned
      until the end of the Restriction Period.  This Letter Agreement shall
      be binding on successors and assigns of the undersigned with respect to the
      Securities and any such successor or assign shall enter into a similar agreement
      for the benefit of the Purchasers.

    

    

    ***
      SIGNATURE PAGE FOLLOWS***

    

    

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    

    This
      Letter Agreement may be executed in two or more counterparts, all of which
      when
      taken together may be considered one and the same agreement.

    

    

    __________________________

    Signature

     

    __________________________

    Print
      Name

     

    __________________________

    Position
      in Company

    

    Address
      for Notice:

     

    __________________________

     

    __________________________

     

    __________________________
Number
      of
      shares of Common Stock

    

    _____________________________________________________________________________

    Number
      of
      shares of Common Stock underlying subject to warrants, options, debentures
      or
      other convertible securities

     

    By
      signing below, the Company agrees to enforce the restrictions on transfer set
      forth in this Letter Agreement.

    

    Bancroft
      Uranium Inc.

    

    By:
      _________________________________

    Name:

    Title:

    

    

    Acknowledged
      and agreed to

    as
      of the
      date set forth above:

    

    [insert
      name of transfer agent]

    

    
      By:
        _________________________________
Name:

    Title:

     

     

     

    3fonixs8121007ex4a.htm

    
      

      

    

    
      Exhibit
        4

      A
G
R
E
E
M
E
N
T

      

      This
        Agreement is made this
        4h
        day of December, 2007, by and between
        Thomas N. Mahoney, whose address is 11995 El Camino Real, Suite 301, San
        Diego,
        Calif., hereinafter referred to as the "Consultant",
        and  Fonix Corporation, a
        Delaware corporation, whose principal place of business is located at 9350
        South
        150 East Suite 700, Sandy, UT 84070 , hereinafter referred to as "Company"
        or “Fonix.”

      

      W
        I T N E
        S E T H:

      

      WHEREAS,
        the Company desires to engage the
        services of the Consultant to perform for the Company consulting services
        as an
        independent contractor and not as an employee; and

      

      WHEREAS,
        Consultant desires to consult with the
        Board of Directors, the officers of the Company, and the administrative staff,
        and to undertake for the Company consultation as to the direction of certain
        functions of the Company as described herein.

      

      NOW,
        THEREFORE, it is
        agreed as follows:

      

      1.
Term.
        The respective duties and obligations
        of the contracting parties shall be for a period of four (4) months commencing
        on the 4th
        day of December, 2007, and may be
        terminated by either party after giving thirty (30) days' written notice
        to the
        other party at the addresses stated above or at an address chosen subsequent
        to
        the execution of this Agreement and duly communicated to the party giving
        notice.

      

      2.
Consultations.
        Consultant shall be available to
        consult with the Board of Directors, the officers of the Company, and the
        heads
        of the administrative staff, at reasonable times, concerning matters pertaining
        to the organization of the administrative staff, the fiscal policies of the
        Company, the relationship of the Company with its employees or with any
        organization representing its employees, and, in general, the important problems
        of concern in the business affairs of the Company. Consultant shall not
        represent the Company, its Board of Directors, its officers or any other
        members
        of the Company in any transactions or communications nor shall Consultant
        make
        claim to do so.

      

      3.
 Independent
        Contractor.  Consultant acknowledges that Consultant’s
        retention does not confer upon Consultant any ownership interest in or personal
        claim upon any license, right or product of the Company, nor does this Agreement
        confer any employment right on Consultant.  Consultant agrees that in
        performing his duties under this Agreement, he shall be operating as an
        independent contractor as that term is defined in United States Treasury
        Department regulations and United States Internal Revenue Service rulings
        and
        interpretations.  Nothing contained herein shall in any way constitute
        any association, partnership, employer/employee relationship, or joint venture
        between the parties hereto, or be construed to be evidence of the intention
        of
        the parties to establish any such relationship.  Neither party shall
        have any right, power or authority to make any representation nor to assume
        or
        create any obligation, whether express or implied, on behalf of the other,
        or to
        bind the other party in any manner whatsoever.  Both of the parties
        agree, respectively, that they shall not hold themselves out in any manner
        that
        would be contrary to the terms of this Section 3.

      

      4.  Confidentiality
        and Non-Disclosure.  Consultant acknowledges that in
        performance of services under this Agreement, he may acquire confidential
        information concerning Fonix technology, know-how, product development and
        marketing plans, business concepts, financial matters and other information
        which are valuable, special and unique assets of Fonix (herein
“Information”).  Consultant will not, during or after the term
        of this Agreement, disclose any Information, no matter how acquired, to any
        person or entity for any reason or purpose outside of Consultant’s usual
        business activities as defined hereunder, and will not in any manner directly
        or
        indirectly aid or be a party to any acts, the effects of which would tend
        to
        divert, diminish or prejudice the technology, good will, business or business
        opportunities of Fonix.  In the event of a threatened breach of
        Consultant of the provisions of this paragraph, Fonix shall be entitled to
        an
        injunction restraining Consultant from disclosing any such information or
        from
        rendering any services to any person or entity to whom any such information
        has
        been disclosed or threatened to be disclosed.  Nothing herein shall be
        construed as prohibiting Fonix from pursuing any other remedies available
        to
        Fonix for actual breach of the provision of this paragraph, including the
        recovery of damages from Consultant.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (a)           In
        exchange for Fonix executing this Agreement and agreeing to the retention
        of
        Consultant’s services by Fonix, Consultant does hereby enter into the covenant
        of confidentiality set forth in this Section 4 (the “Confidentiality
        Covenant”) and acknowledges the adequacy of the consideration to support the
        Confidentiality Covenant.

      

      (b)           The
        Confidentiality Covenant shall survive the expiration or termination of this
        Agreement.

      

      5.
Liability.
        With regard to the services to be
        performed by the Consultant pursuant to the terms of this agreement, the
        Consultant shall not be liable to the Company, or to anyone who may claim
        any
        right due to any relationship with the Corporation, for any acts or omissions
        in
        the performance of services on the part of the Consultant or on the part
        of the
        agents or employees of the Consultant, except when said acts or omissions
        of the
        Consultant are due to willful misconduct or gross negligence. The Company
        shall
        hold the Consultant free and harmless from any obligations, costs, claims,
        judgments, attorneys' fees, and attachments arising from or growing out of
        the
        services rendered to the Company pursuant to the terms of this agreement
        or in
        any way connected with the rendering of services, except when the same shall
        arise due to the willful misconduct or gross negligence of the Consultant
        and
        the Consultant is adjudged to be guilty of willful misconduct or gross
        negligence by a court of competent jurisdiction.

      

      6.  Indemnification.  Consultant
        will indemnify and hold harmless Fonix and its directors, officers, and each
        person, if any, who controls Fonix within the meaning of the Securities Act,
        of
        1933 (the “Act”), as amended, from and against any and all losses,
        claims, damages, expenses, liabilities or actions to which any of them may
        become subject under applicable law (including, without limitation, the Act)
        and
        will reimburse them or any legal or other expenses incurred by them in
        connection with investigating or defending any claims or actions, whether
        or not
        resulting in liability, insofar as such losses, claims, damages, expenses,
        liabilities or actions arise out of or are based upon Consultant’s willful
        misconduct or gross negligence.  The indemnification agreement
        contained in this paragraph shall remain in full force or effect, regardless
        of
        any investigation made by or on behalf of Consultant, and shall survive the
        consummation of the transactions contemplated by and termination of this
        Agreement.

      

      7.
Compensation.
        The Consultant shall receive from the
        Company for the performance of the services rendered to the Company pursuant
        to
        the terms of the agreement two hundred
        million
        shares of free
        trading FNIX stock (the “Compensation Shares”).
        These terms are more thoroughly
        referenced in Schedule A-1, attached herein to this
        document.  Any offer or issuance of the Compensation Shares
        under this Agreement shall be subject to the filing and effectiveness, at
        or
        prior to the time this Agreement is executed by Fonix, of a registration
        statement under the Act on Form S-8, covering the Compensation
        Shares.

      

      8.  Representations
        and Warranties.  Consultant hereby makes the following
        representations and warranties to and in favor of the Company;

      

      (a)           Consultant
        is an "Accredited Investor" as defined in Regulation D under the
        Act.

      

      (b)           Consultant
        confirms that all
        documentation regarding the Company requested by Consultant have been made
        available by the Company for inspection and copying and that Consultant has
        been
        supplied with all additional information that has been
        required.

      

      (c)           
        Consultant has such knowledge and experience in finance, securities, investments
        and other business matters so as to be able to protect his interests in
        connection with this transaction, and his investment in the Company hereunder
        is
        not material when compared to his total financial capacity.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (d)           Consultant
        will acquire the Compensation Shares for investment and not with a view to
        the
        sale or distribution thereof.

       

      (e)           Consultant
        acknowledges that the representations, warranties and agreements made by
        him
        herein shall survive the execution and delivery of this Agreement and the
        performance of services hereunder.

      

      9.
Arbitration.
        Any controversy or claim arising out of
        or relating to this contract, or the breach thereof, shall be settled by
        arbitration in accordance of the rules of the American Arbitration Association,
        and judgment upon the award rendered by the arbitrator(s) shall be entered
        in
        any court having jurisdiction thereof. For that purpose, the parties hereto
        consent to the jurisdiction and venue of an appropriate court located in
        County
        of San Diego, State of California. In the event that litigation results from
        or
        arises out of this Agreement or the performance thereof, the parties agree
        to
        reimburse the prevailing party's reasonable attorney's fees, court costs,
        and
        all other expenses, whether or not taxable by the court as costs, in addition
        to
        any other relief to which the prevailing party may be entitled. In such event,
        no action shall be entertained by said court or any court of competent
        jurisdiction if filed more than one year subsequent to the date the cause(s)
        of
        action actually accrued regardless of whether damages were otherwise as of
        said
        time calculable.

      

      10.  Assignment.  The
        Consultant’s rights and duties pursuant to this Agreement are not assignable
        without the express written agreement of Fonix, which may be withheld for
        any
        reason or no reason.  Fonix may assign any of its rights or
        obligations hereunder.

      

      11.  Governing
        Law.  This Agreement shall be governed by and construed in
        accordance with the laws of the State of Delaware of the United States of
        America.

      

      12.  Amendment.  This
        Agreement may be amended only by the written consent of the
        parties.

      

      13.  Waiver.  No
        waiver of any breach or default of this Agreement by either party hereto
        shall
        be considered to be a waiver of any other breach of default of this
        Agreement.

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the day
        and year first written above.

      

      

      

      

      

      

      
        	
                THOMAS
                  N. MAHONEY - CONSULTANT

              
	 	 	 
	 	 	 
	
                By:

              	
                /s/
                  Thomas N.
                  Mahoney                                
                  

              	
                Date:    
                  11/26/2007     
                  

              
	 	
                Thomas
                  N. Mahoney,

              	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                Fonix
                  Corp.

              
	 	 	 
	 	 	 
	
                By:

              	
                /s/
                  Roger D.
                  Dudley                                       
                  

              	
                Date:
                  ______________

              
	 	
                Roger
                  D. Dudley,

              	 
	 	
                Chief
                  Financial Officer

              	 

      

      

      

      

      

      

      

      ____________________________________________

      END

      

      

      

      

      

      

      

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
        A-1

      

      

      

      

      For
        the
        services to be rendered and performed by Thomas N. Mahoney, Consultant, during
        the term of this Agreement, Fonix Corp. shall, upon acceptance of this
        Agreement, Pay to Consultant:

      

      Two
        hundred million (200,000,000) shares of free trading FNIX stock due upon
        the
        execution of the Agreement.

      

      

      

      
        

        
          	
                  THOMAS
                    N. MAHONEY - CONSULTANT

                
	 	 	 
	 	 	 
	
                  By:

                	
                  /s/
                    Thomas N.
                    Mahoney                                
                    

                	
                  
                    Date:    
                      11/26/2007     
                      

                  

                
	 	
                  Thomas
                    N. Mahoney,

                	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                  Fonix
                    Corp.

                
	 	 	 
	 	 	 
	
                  By:

                	
                  /s/
                    Roger D.
                    Dudley                                       
                    

                	
                  Date:
                    ______________

                
	 	
                  Roger
                    D. Dudley,

                	 
	 	
                  Chief
                    Financial Officer

                	 

        

         

      

      

      

      

      

      

      ____________________________________________

      END

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