Document:

EDWT Exhibit 10.5  5-29-08

INVESTOR LOCK-UP AGREEMENT

THIS AGREEMENT (this "Agreement") is dated as of May 29, 2008 by and among Edgewater Foods International, Inc., a Nevada corporation (the "Company"), and the shareholders of the Company listed on Schedule A attached hereto (collectively, the "Shareholders").

WHEREAS, to induce the Company and each of the investors (the “Investors”) to enter into the Series D Convertible Preferred Stock Purchase Agreement dated on or about the date hereof (the “Purchase Agreement”) by and among the Company and the Investors, the Shareholders have agreed not to sell any shares of the Company’s common stock, $0.001 par value per share (the "Common Stock"), issuable upon conversion of the shares of Series D Convertible Preferred Stock (the “Conversion Shares”) issued pursuant to the Purchase Agreement, except in accordance with the terms and conditions set forth herein.  Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Purchase Agreement.

NOW, THEREFORE, in consideration of the covenants and conditions hereinafter contained, the parties hereto agree as follows:

1.

Restriction on Transfer; Term.  The Shareholders hereby agree with the Company that the Shareholders will not offer, sell, contract to sell, assign, transfer, hypothecate, pledge or grant a security interest in, or otherwise dispose of, or enter into any transaction which is designed to, or might reasonably be expected to, result in the disposition of (whether by actual disposition or effective economic disposition due to cash settlement or otherwise by the Company or any affiliate of the Company or any person in privity with the Company or any affiliate of the Company), directly or indirectly, any of the Conversion Shares from the period commencing on the Closing Date and expiring on the date that is eighteen (18) months following the Closing Date (the “Period”); provided, however, that no Shareholder shall, during the twelve (12) months following the Period, sell more than one-twelfth (1/12th) of their total holdings of Conversion Shares during any one (1) month period.  

2.

Legend.  Notwithstanding the terms of this Agreement, during the Period herein described, each stock certificate evidencing the Conversion Shares held by the Shareholders shall be stamped or imprinted with a legend in substantially the following form:

THE SALE, ASSIGNMENT, TRANSFER OR DISPOSITION OF THESE SHARES OF COMMON STOCK ARE RESTRICTED BY, AND MAY ONLY BE SOLD, ASSIGNED, TRANSFERRED OR DISPOSED OF IN ACCORDANCE WITH, THE TERMS OF AN INVESTOR LOCK-UP AGREEMENT DATED AS OF MAY 29, 2008 AMONG EDGEWATER FOODS INTERNATIONAL, INC. AND THE SHAREHOLDERS NAMED THEREIN.

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The Company agrees that if a transferee in a sale, assignment, transfer, hypothecation, pledge or disposition of any Conversion Shares by a Shareholder does not agree in writing to be bound by the terms of this Agreement, such sale, assignment, hypothecation, pledge or disposition shall be null and void and invalidated by the Company.

3.

Ownership.

During the Period, the Shareholders shall retain all rights of ownership in the Conversion Shares, including, without limitation, voting rights and the right to receive any dividends, if any, that may be declared in respect thereof.

4.

Company and Transfer Agent.  The Company is hereby authorized to disclose the existence of this Agreement to its transfer agent.  The Company and its transfer agent are hereby authorized to decline to make any transfer of the Conversion Shares if such transfer would constitute a violation or breach of this Agreement and the Purchase Agreement. 

5.

Notices.  All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in writing and shall be deemed to be delivered and received by the intended recipient as follows:  (i) if personally delivered, on the business day of such delivery (as evidenced by the receipt of the personal delivery service), (ii) if mailed certified or registered mail return receipt requested, four (4) business days after being mailed, (iii) if delivered by overnight courier (with all charges having been prepaid), on the business day of such delivery (as evidenced by the receipt of the overnight courier service of recognized standing), or (iv) if delivered by facsimile transmission, on the business day of such delivery if sent by 6:00 p.m. in the time zone of the recipient, or if sent after that time, on the next succeeding business day (as evidenced by the printed confirmation of delivery generated by the sending party's telecopier machine).  If any notice, demand, consent, request, instruction or other communication cannot be delivered because of a changed address of which no notice was given (in accordance with this Section 5), or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second business day the notice is sent (as evidenced by a sworn affidavit of the sender).  All such notices, demands, consents, requests, instructions and other communications will be sent to the following addresses or facsimile numbers as applicable. 

If to the Company:

Edgewater Foods International, Inc.

400 Professional Drive, Suite 310 

Gaithersburg, Maryland 20879

Attention: Michael Boswell

Tel. No.: (240) 864-0449

Fax No.:  (240) 864-0450

With copies to:  

Hodgson Russ LLP 

1540 Broadway, 24th Floor 

New York, New York 10036-4039

Attention:  Stephen A. Weiss, Esq. 

Tel. No.:  (646) 218-7606

Fax No.:  (212) 751-0928

and to:

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas 

New York, New York 10036

Attention: Christopher S. Auguste, Esq.

Tel No.: (212) 715-9100

Fax No.: (212) 715-8000

If to any of the Shareholders, addressed to such Shareholder a the address set forth in the Purchase Agreement.

With copies to:  

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas 

New York, New York 10036

Attention: Christopher S. Auguste, Esq.

Tel No.: (212) 715-9100

Fax No.: (212) 715-8000

or to such other address as any party may specify by notice given to the other party in accordance with this Section 5.

6.

Entire Agreement.  This Agreement contain the entire understanding and agreement of the parties relating to the subject matter hereof and supersedes all prior and/or contemporaneous understandings and agreements of any kind and nature (whether written or oral) among the parties with respect to such subject matter, all of which are merged herein.

7.

Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made and to be performed in that state, without regard to any of its principles of conflicts of laws or other laws which would result in the application of the laws of another jurisdiction.  This Agreement shall 

be construed and interpreted without regard to any presumption against the party causing this Agreement to be drafted.  

8.

Waiver of Jury Trial.  EACH OF THE PARTIES HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH OF THE PARTIES UNCONDITIONALLY AND IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY AND THE FEDERAL DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, AND EACH OF THE PARTIES HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY OBJECTION TO VENUE IN NEW YORK COUNTY OR SUCH DISTRICT, AND AGREES THAT SERVICE OF ANY SUMMONS, COMPLAINT, NOTICE OR OTHER PROCESS RELATING TO SUCH SUIT, ACTION OR OTHER PROCEEDING MAY BE EFFECTED IN THE MANNER PROVIDED IN SECTION 5.  

9.

Severability.  The parties agree that if any provision of this Agreement be held to be invalid, illegal or unenforceable in any jurisdiction, that holding shall be effective only to the extent of such invalidity, illegally or unenforceability without invalidating or rendering illegal or unenforceable the remaining provisions hereof, and any such invalidity, illegally or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  It is the intent of the parties that this Agreement be fully enforced to the fullest extent permitted by applicable law.

10.

Binding Effect; Assignment.  This Agreement and the rights and obligations hereunder may not be assigned by any party hereto without the prior written consent of the other parties hereby.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.

11.

Headings.  The section headings contained in this Agreement (including, without limitation, section headings and headings in the exhibits and schedules) are inserted for reference purposes only and shall not affect in any way the meaning, construction or interpretation of this Agreement.  Any reference to the masculine, feminine, or neuter gender shall be a reference to such other gender as is appropriate.  References to the singular shall include the plural and vice versa.

12.

Counterparts.  This Agreement may be executed in two or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, and all of which, when taken together, shall constitute one and the 

same document.  This Agreement shall become effective when one or more counterparts, taken together, shall have been executed and delivered by all of the parties.

13.

Third Party Beneficiaries.  Each of the Shareholders and the Company hereby acknowledges that the Investors are third party beneficiaries of this Agreement and this Agreement may not be modified or changed without the prior written consent of the Investors and the Company.  

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the parties have executed this Investor Lock-Up Agreement as of the date first written above herein.

EDGEWATER FOODS INTERNATIONAL, INC.

By:________________________________

      Name: Michael Boswell

      Title:   Acting Chief Financial Officer 

  

SHAREHOLDER:

By:_________________________________

       Name: 

       Title: 

  

Schedule AEDWT Exhibit 10.6 5-29-08

ESCROW AGREEMENT

THIS ESCROW AGREEMENT (this “Agreement”) is made as of May
29, 2008, by and among Edgewater Foods International, Inc., a Nevada corporation
(the “Company”), Vision Opportunity Master Fund, Ltd. (“Vision”)
and the other purchasers signatory hereto
(collectively with Vision, the “Purchasers”), and Kramer Levin Naftalis
& Frankel LLP, with an address at 1177 Avenue of the Americas, New York, New
York 10036 (the “Escrow Agent”).  Capitalized terms used but not
defined herein shall have the meanings set forth in the Purchase Agreement (as
defined below).

W I T N E S S E T H:

WHEREAS, the Purchasers will be purchasing from the Company shares
of Series D convertible preferred stock (the “Preferred Shares”),
convertible into shares of the Company’s common stock, par value $0.001 per
share, pursuant to a Series D Convertible Preferred Stock Purchase Agreement
dated as of the date hereof by and among the Company and the Purchasers (the
“Purchase Agreement”); 

WHEREAS, the Company and the Purchasers have requested that the
Escrow Agent hold the subscription amounts with respect to the purchase of the
Preferred Shares in escrow until the Escrow Agent has received all closing
documents and deliveries required under Article IV of the Purchase Agreement
with respect to the Closing; and

NOW, THEREFORE, in consideration of the covenants and mutual
promises contained herein and other good and valuable consideration, the receipt
and legal sufficiency of which are hereby acknowledged and intending to be
legally bound hereby, the parties agree as follows:

ARTICLE I
TERMS OF THE ESCROW

1.1.

  The parties hereby agree to establish an escrow
account with the Escrow Agent whereby the Escrow Agent shall hold the funds for
the purchase of the Preferred Shares  as contemplated by the
Purchase Agreement.

1.2.

Upon the Escrow Agent’s receipt of the aggregate subscription
amounts into its master escrow account, together with copies of counterpart
signature pages of the Transaction Documents from each Purchaser and the Company
and all other closing documents and deliveries required under Article IV of the
Purchase Agreement, it shall advise the Company and Vision, or their designated
attorney or agent, of the amount of funds it has received into its master escrow
account.

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1.3.

Wire transfers to the Escrow Agent shall be made as follows:

Bank:

  

  

  ABA
No.:

  Account
Name: Account No.:

  Reference:

 

1.4.

The Company and Vision, promptly after being advised by the Escrow
Agent that it has received the subscription amounts for the Closing, copies of
counterpart signature pages of the Transaction Documents from each Purchaser and
the Company and all other closing documents and deliveries required under
Article IV of the Purchase Agreement, shall deliver to the Escrow Agent a
Release Notice, in the form attached hereto as Exhibit A (the “Release
Notice”).

1.5.

Once the Escrow Agent receives the Release Notice executed by the
Company and Vision, the Escrow Agent shall wire the subscription proceeds per
the written instructions of the Company and Vision, net of fees, expenses and
any other disbursements as set forth in the Release Notice.

1.6.

Wire transfers to the Company shall be made pursuant to written
instructions from the Company provided to the Escrow Agent.

1.7.

Upon the written request from a Purchaser to the Escrow Agent, the
Escrow Agent shall promptly return the subscription proceeds to each Purchaser
pursuant to written wire instructions to be delivered by such Purchaser to the
Escrow Agent.

ARTICLE II
MISCELLANEOUS

2.1.

  No waiver or any breach of any covenant or provision
herein contained shall be deemed a waiver of any preceding or succeeding breach
thereof, or of any other covenant or provision herein contained.  No
extension of time for performance of any obligation or act shall be deemed an
extension of the time for performance of any other obligation or act.

2.2.

All notices or other communications required or permitted
hereunder shall be in writing, and shall be sent as set forth in the Purchase
Agreement.

2.3.

This Escrow Agreement shall be binding upon and shall inure to the
benefit of the permitted successors and permitted assigns of the parties
hereto.

2.4.

This Escrow Agreement is the final expression of, and contains the
entire agreement between, the parties with respect to the subject matter hereof
and supersedes all prior 

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understandings with respect thereto.  This Escrow Agreement
may not be modified, changed, supplemented or terminated, nor may any
obligations hereunder be waived, except by written instrument signed by the
parties to be charged or by its agent duly authorized in writing or as otherwise
expressly permitted herein.

2.5.

Whenever required by the context of this Escrow Agreement, the
singular shall include the plural and masculine shall include the feminine.
 This Escrow Agreement shall not be construed as if it had been prepared by
one of the parties, but rather as if both parties had prepared the same.
 Unless otherwise indicated, all references to Articles are to this Escrow
Agreement.

2.6.

The parties hereto expressly agree that this Escrow Agreement
shall be governed by, interpreted under and construed and enforced in accordance
with the laws of the State of New York, without regard to conflicts of law
principles that would result in the application of the substantive laws of
another jurisdiction.  Any action to enforce, arising out of, or relating
in any way to, any provisions of this Escrow Agreement shall only be brought in
a state or Federal court sitting in New York City, Borough of Manhattan.

2.7.

The Escrow Agent’s duties hereunder may be altered, amended,
modified or revoked only by a writing signed by the Company, each Purchaser and
the Escrow Agent.

2.8.

The Escrow Agent shall be obligated only for the performance of
such duties as are specifically set forth herein and may rely and shall be
protected in relying or refraining from acting on any instrument reasonably
believed by the Escrow Agent to be genuine and to have been signed or presented
by the proper party or parties.  The Escrow Agent shall not be personally
liable for any act the Escrow Agent may do or omit to do hereunder as the Escrow
Agent while acting in good faith and in the absence of gross negligence, fraud
and willful misconduct, and any act done or omitted by the Escrow Agent pursuant
to the advice of the Escrow Agent’s attorneys-at-law shall be conclusive
evidence of such good faith, in the absence of gross negligence, fraud and
willful misconduct.

2.9.

The Escrow Agent is hereby expressly authorized to disregard any
and all warnings given by any of the parties hereto or by any other person or
corporation, excepting only orders or process of courts of law and is hereby
expressly authorized to comply with and obey orders, judgments or decrees of any
court.  In case the Escrow Agent obeys or complies with any such order,
judgment or decree, the Escrow Agent shall not be liable to any of the parties
hereto or to any other person, firm or corporation by reason of such decree
being subsequently reversed, modified, annulled, set aside, vacated or found to
have been entered without jurisdiction.

2.10.

The Escrow Agent shall not be liable in any respect on account of
the identity, authorization or rights of the parties executing or delivering or
purporting to execute or deliver the Purchase Agreement or any documents or
papers deposited or called for thereunder in the absence of gross negligence,
fraud and willful misconduct.

2.11.

The Escrow Agent shall be entitled to employ such legal counsel
and other experts as the Escrow Agent may deem necessary properly to advise the
Escrow Agent in connection with the Escrow Agent’s duties hereunder, may rely
upon the advice of such counsel, 

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and may pay such counsel reasonable compensation therefor which
shall be paid by the Escrow Agreement unless otherwise provided for in Section
2.14.  The Escrow Agent has acted as legal counsel for Vision and may
continue to act as legal counsel for Vision from time to time, notwithstanding
its duties as the Escrow Agent hereunder.  The Company and the Purchasers
consent to the Escrow Agent in such capacity as legal counsel for Vision and
waives any claim that such representation represents a conflict of interest on
the part of the Escrow Agent.  The Company and the Purchasers understand
that the Escrow Agent is relying explicitly on the foregoing provision in
entering into this Escrow Agreement.

2.12.

The Escrow Agent’s responsibilities as escrow agent hereunder
shall terminate if the Escrow Agent shall resign by giving written notice to the
Company and the Purchasers.  In the event of any such resignation, the
Purchasers and the Company shall appoint a successor Escrow Agent and the Escrow
Agent shall deliver to such successor Escrow Agent any escrow funds and other
documents held by the Escrow Agent.

2.13.

If the Escrow Agent reasonably requires other or further
instruments in connection with this Escrow Agreement or obligations in respect
hereto, the necessary parties hereto shall join in furnishing such
instruments.

2.14.

It is understood and agreed that should any dispute arise with
respect to the delivery and/or ownership or right of possession of the documents
or the escrow funds held by the Escrow Agent hereunder, the Escrow Agent is
authorized and directed in the Escrow Agent’s sole discretion (1) to retain in
the Escrow Agent’s possession without liability to anyone all or any part of
said documents or the escrow funds until such disputes shall have been settled
either by mutual written agreement of the parties concerned by a final order,
decree or judgment or a court of competent jurisdiction after the time for
appeal has expired and no appeal has been perfected, but the Escrow Agent shall
be under no duty whatsoever to institute or defend any such proceedings or (2)
to deliver the escrow funds and any other property and documents held by the
Escrow Agent hereunder to a state or Federal court having competent subject
matter jurisdiction and located in the City of New York, Borough of Manhattan,
in accordance with the applicable procedure therefor.

2.15.

The Company and each Purchaser agree jointly and severally to
indemnify and hold harmless the Escrow Agent and its partners, employees, agents
and representatives from any and all claims, liabilities, costs or expenses in
any way arising from or relating to the duties or performance of the Escrow
Agent hereunder or the transactions contemplated hereby or by the Purchase
Agreement other than any such claim, liability, cost or expense to the extent
the same shall have been determined by final, unappealable judgment of a court
of competent jurisdiction to have resulted from the gross negligence, fraud or
willful misconduct of the Escrow Agent.

[SIGNATURE PAGE FOLLOWS]

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[SIGNATURE PAGE TO ESCROW AGREEMENT]

IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of this 29th day of May, 2008.

		
	
Edgewater
Foods International, Inc. 

By:__________________________________________

     Name:

     Title:
  
	

	
ESCROW
AGENT:
	
 

	
Kramer Levin
Naftalis & Frankel LLP
	
 

	

By:__________________________________________

     Name:

     Title:
	
 

[PURCHASERS’ SIGNATURE PAGE FOLLOWS]

5

[PURCHASER’S SIGNATURE PAGE TO ESCROW AGREEMENT]

Name of
Investing Entity: __________________________

Signature of Authorized Signatory of Investing Entity:
__________________________

Name of
Authorized Signatory: _________________________

Title
of Authorized Signatory: __________________________

6

Exhibit A to
Escrow Agreement

RELEASE NOTICE

The UNDERSIGNED, pursuant to the Escrow Agreement dated as of May
29, 2008 among Edgewater Foods International, Inc. (the ”Company”), the
Purchasers signatory thereto and Kramer Levin Naftalis & Frankel LLP, as
Escrow Agent (the “Escrow Agreement”), hereby notify the Escrow Agent
that each of the conditions precedent to the purchase and sale of the Preferred
Shares have been satisfied or waived in accordance with Article IV of the
Purchase Agreement.  The Company hereby confirms that all of its respective
representations and warranties contained in the Purchase Agreement remain true
and correct and authorize the release by the Escrow Agent of the funds to be
released as described in the Escrow Agreement and as set forth below.  This
Release Notice shall not be effective until executed by the Company and Vision.
 

Capitalized terms used herein and not defined shall have the
meaning ascribed to such terms in the Escrow Agreement.

This Release Notice may be signed in one or more counterparts,
each of which shall be deemed an original.

Please release the $____________ that has been deposited in
the escrow account pursuant to the Escrow Agreement according to the following
instructions:

[to be completed]

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IN WITNESS WHEREOF, the undersigned have caused this Release
Notice to be duly executed and delivered as of this ___ day of ________,
2008.

	
	
Edgewater
Foods International, Inc. 

By:____________________________

      Name:

      Title:
  

	
	
Vision
Opportunity Master Fund, Ltd. 

By:__________________________________________

     Name:

     Title:

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