EXHIBIT 10.24
SELLING STOCKHOLDER AGREEMENT
This AGREEMENT (this "Agreement") is made as of December 1, 2005 by and
among BigString Corporation (the "Company"), a Delaware corporation, with
offices located at 0 Xxxxxxx Xxxx, Xxxxx X, Xxx Xxxx, Xxx Xxxxxx 00000, and each
of the Company's stockholders and warrant holder listed on the signature pages
hereto (collectively, the "Selling Stockholders").
WHEREAS, the Company is obligated under existing registration rights
agreements to register under applicable federal securities laws shares of its
common stock, par value $.0001 per share ("Common Stock"), held by certain of
its stockholders;
WHEREAS, to comply with its obligation to register shares of Common Stock
for certain of its stockholders, the Company has filed a registration statement
on Form SB-2 (the "Registration Statement") with the Securities and Exchange
Commission (the "SEC");
WHEREAS, in addition to the stockholders who have entered into
registration rights agreements with the Company, the Company has allowed certain
other investors to include for registration in the Registration Statement
certain of their shares of Common Stock;
WHEREAS, there is currently no public market for the Company's Common
Stock, and, therefore, no established per share market price; and
WHEREAS, to facilitate the registration and sale of the shares of Common
Stock by the Selling Stockholders (the "Offering"), each of the Selling
Stockholders agrees to establish a per share offering price to remain in effect
for the specified period provided herein;
NOW, THEREFORE, in consideration of the mutual promises set forth herein
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto do hereby agree as follows:
1. Per Share Price. The shares of Common Stock included in the
Registration Statement filed by the Company with the SEC and to be offered for
sale in the Offering, shall be offered by the Selling Stockholders and/or their
registered representatives at a per share price of $0.48 unless and until the
Common Stock is included for quotation on the NASDAQ Over-the-Counter Bulletin
Board Trading System or a market for our Common Stock otherwise develops.
Thereafter, shares of Common Stock may be offered by the Selling Stockholders
from time to time at prevailing market prices.
2. Representations and Warranties. Each of the Selling Shareholders
represents and warrants that the following are true and correct to the best of
his, her or its knowledge on the date hereof.
(a) Selling Shareholder is the owner of, or will be the owner of
upon the proper exercise of the applicable warrants, the shares of Common Stock
set forth next to his, her or its name.
(b) Selling Shareholder has the full right and authority to execute
this Agreement.
(c) There are no actions, suits or proceedings pending, or
threatened, against the Selling Shareholder which may adversely affect the
shares of Common Stock being registered under the Registration Statement for the
benefit of the Selling Shareholder, at law or in equity.
(d) There are no attachments, executions, assignments for the
benefit of creditors or voluntary or involuntary proceedings in bankruptcy
pending, contemplated or threatened against the Selling Shareholder.
(e) There are no existing or pending contracts of sale, options to
purchase or rights of first refusal with respect to the shares of Common Stock
being registered under the Registration Statement for the benefit of the Selling
Shareholder.
3. Remedies. In the event that any Selling Stockholder shall at any time
attempt to sell his, her or its shares of Common Stock included in the
Registration Statement in violation of the terms of this Agreement, then the
Company shall, in addition to all available rights and remedies at law and in
equity, be entitled to (a) a decree or restraining order, preventing the Selling
Stockholder from transferring the Common Stock, and (b) repurchase the shares of
Common Stock to be transferred in violation of this Agreement for $0.48 per
share; it being hereby acknowledged and agreed that damages at law will be an
inadequate remedy for a breach or threatened breach of the provisions set forth
in this Agreement.
4. Termination. This Agreement and all restrictions on the Common Stock
held by the Selling Stockholders created hereunder shall terminate with respect
to each Selling Stockholder upon the first to occur of the following: (a) the
bankruptcy or dissolution of the Company; (b) at such time as the Selling
Stockholder ceases to hold any shares of Common Stock subject to this Agreement,
or (c) one year from the date of the prospectus included as part of the
Registration Statement.
5. Miscellaneous.
(a) Governing Law and Venue. This Agreement is to be construed and
interpreted in accordance with the laws of the State of New Jersey, without
regard to its provisions concerning conflict of laws. Any dispute or controversy
concerning or relating to this Agreement shall be exclusively resolved in the
courts of the State of New Jersey located in Monmouth County, New Jersey, and in
the federal courts of the United States of America located in the State of New
Jersey. Each of the parties hereby irrevocably submits to the exclusive
jurisdiction of the courts of the State of New Jersey located in Monmouth
County, New Jersey and the federal courts of the United States of America
located in the State of New Jersey.
(b) Captions and Headings. Captions and headings used herein are for
reference only and are in no way to be deemed to define, limit, explain or
amplify any provisions hereof.
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(c) Entire Agreement. This Agreement represents the entire agreement
and understanding between the parties hereto and no oral or written
representations or promises have been made with respect thereto.
(d) No Oral Changes. This Agreement may not be altered or modified
orally, but only by a written agreement executed by the parties hereto.
(e) Construction. When the context of this Agreement so requires,
nouns appearing in the singular are to have the same effect as if used in the
plural and vice versa, and the proper gender is to be attributed to all
pronouns.
(f) Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be considered an original and all of which
shall constitute one and the same instrument, notwithstanding that all parties
are not signatories to the same counterpart.
(g) Binding. This Agreement is binding upon the parties hereto and
their respective heirs, executors, administrators, successors and assigns.
(h) Waiver. No waiver by any party or any failure of, or refusal by,
the other parties to comply with their obligations under this Agreement are to
be deemed a waiver of any other or subsequent failure or refusal to so comply.
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement on
the date first above written.
BIGSTRING CORPORATION
By: /s/ Xxxxx X. Xxxxx
-------------------------------------
Name: Xxxxx X. Xxxxx
Title: President and Chief Executive Officer
Number of Shares of
Signatures Common Stock Being Registered
---------- -----------------------------
/s/ Xxxxx Ribosky 430,313
--------------------------------------------------- -------
Xxxxx Ribosky, Managing Member of AJW New
Millennium Offshore, Ltd.
(shares held by AJW New Millennium Offshore, Ltd.)
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Number of Shares of
Signatures Common Stock Being Registered
---------- -----------------------------
/s/ Xxxxx Ribosky 299,531
--------------------------------------------------- -------
Xxxxx Ribosky, Managing Member of AJW Qualified
Partners, LLC
(shares held by AJW Qualified Partners, LLC)
/s/ Xxxxx Ribosky 101,250
--------------------------------------------------- -------
Xxxxx Ribosky, Managing Member of AJW Partners,
LLC
(shares held by AJW Partners, LLC)
/s/ Xxxxx X. Xxxxxxx 125,000
--------------------------------------------------- -------
Xxxxx X. Xxxxxxx
/s/ Xxxxx X. Xxxxxxx 1,250,000
--------------------------------------------------- ---------
Xxxxx X. Xxxxxxx
/s/ Xxxxx Xxxxx 600,000
--------------------------------------------------- -------
Xxxxx Xxxxx
/s/ Xxxxxxx X. Xxxxxx /s/ XxXxx Xxxxxx 312,500
--------------------------------------------------- -------
Xxxxxxx X. Xxxxxx XxXxx Xxxxxx
/s/ Xxxxxxxx Xxxxxxxxx 375,000
--------------------------------------------------- -------
Xxxxxxxx Xxxxxxxxx
/s/ Xxxxxxxx Xxxxxxxxx 375,000
--------------------------------------------------- -------
Xxxxxxxx Xxxxxxxxx
(shares held in XXX)
/s/ Xxxxxxxx Xxxxxxxxx 750,000
--------------------------------------------------- -------
Xxxxxxxx Xxxxxxxxx, Trustee of the Xxxxxxxxx
Foundation
(shares held by Xxxxxxxxx Foundation)
/s/ Xxx X. Xxxxxxx 1,250,000
--------------------------------------------------- ---------
Xxx X. Xxxxxxx
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Number of Shares of
Signatures Common Stock Being Registered
---------- -----------------------------
/s/ Xxxx X. Xxxxxxxx 312,500
---------------------------------------------------- -------
Xxxx X. Xxxxxxxx
/s/ Xxxxxxx Xxxxxxxx 125,000
---------------------------------------------------- -------
Xxxxxxx Xxxxxxxx
/s/ Xxxx Xxxxxx 120,000
---------------------------------------------------- -------
Xxxx Xxxxxx
/s/ Xxxxxxxx Xxxxxx, Xx. 581,250
---------------------------------------------------- -------
Xxxxxxxx Xxxxxx, Xx.
/s/ Xxxxxx Xxxxxx 40,000
---------------------------------------------------- -------
Xxxxxx Xxxxxx
/s/ Xxxxxx X. Xxxxxxxx 80,000
---------------------------------------------------- -------
Xxxxxx X. Xxxxxxxx
/s/ Xxxxxxx X. Xxxxxxxxx 312,500
---------------------------------------------------- -------
Xxxxxxx X. Xxxxxxxxx
/s/ Xxxxxx X. Xxxx /s/ Xxxxx X. Xxxx 15,625
---------------------------------------------------- -------
Xxxxxx X. Xxxx Xxxxx X. Xxxx
(shares held in JTWROS)
/s/ Xxxxx X. Xxxx 31,250
---------------------------------------------------- -------
Xxxxx X. Xxxx, President of Herd Family Partnership
(shares held by Herd Family Partnership)
/s/ Xxxxxx X. Xxxx /s/ Xxxxxxx Xxxx 38,750
---------------------------------------------------- -------
Xxxxxx X. Xxxx Xxxxxxx Xxxx
/s/ Xxxxxx Xxxxxxx 55,000
---------------------------------------------------- -------
Xxxxxx Xxxxxxx
5
Number of Shares of
Signatures Common Stock Being Registered
---------- -----------------------------
/s/ Xxxxx X. Xxxxxxx /s/ Xxxxxxx Xxxxxxx 312,500
------------------------------------------------------- -------
Xxxxx X. Xxxxxxx Xxxxxxx Xxxxxxx
/s/ Xxxxxxx Xxx /s/ Xxxx Xxx 72,000
------------------------------------------------------- -------
Xxxxxxx Xxx Xxxx Xxx
(shares held in JTWROS)
/s/ Xxxxxx Xxxxxx 300,000
------------------------------------------------------- -------
Xxxxxx Xxxxxx
/s/ Xxxx X. Xxxxx 40,000
------------------------------------------------------- -------
Xxxx X. Xxxxx, Trustee of Xxxx X. Xxxxx PSP
(shares held by Xxxx X. Xxxxx PSP)
/s/ Xxxx Xxxxxx 312,500
------------------------------------------------------- -------
Xxxx Xxxxxx
/s/ Xxxxxxx X. Xxxxx /s/ Xxxxxx X. Xxxxx 205,000
------------------------------------------------------- -------
Xxxxxxx X. Xxxxx Xxxxxx X. Xxxxx
(shares held in JTWROS)
/s/ Xxxxx Xxxxx 850,000
------------------------------------------------------- -------
Xxxxx Xxxxx
/s/ Xxxxx Ribosky 12,656
------------------------------------------------------- -------
Xxxxx Ribosky, Managing Member of New
Millennium Capital Partners II, LLC
(shares held by New Millennium Capital Partners II,
LLC)
/s/ Xxxxxx Xxxxxxxxxx 850,000
------------------------------------------------------- -------
Xxxxxx Xxxxxxxxxx
/s/ Xxxx X. Xxxxxxxxxxx 31,250
------------------------------------------------------- -------
Xxxx X. Xxxxxxxxxxx
6
Number of Shares of
Signatures Common Stock Being Registered
---------- -----------------------------
/s/ Xxxxxxx X. Xxxxxxx /s/ Xxxxxx Xxxxxxx 62,500
------------------------------------------------------- -------
Xxxxxxx X. Xxxxxxx Xxxxxx Xxxxxxx
/s/ Xxxxx Xxxxx /s/ Xxx Xxxxx 312,500
------------------------------------------------------- -------
Xxxxx Xxxxx Xxx Xxxxx
(shares held in JTWROS)
/s/ Xxx Xxxxxxxxx 40,000
------------------------------------------------------- -------
Xxx Xxxxxxxxx
/s/ Xxxx X. Xxxx 125,000
------------------------------------------------------- -------
Xxxx X. Xxxx
/s/ Xxxx Xxxxxxxx 62,500
------------------------------------------------------- -------
Xxxx Xxxxxxxx
/s/ Xxxx Xxxxxxxx 40,000
------------------------------------------------------- -------
Xxxx Xxxxxxxx
/s/ H. Xxxxxx Xxxxx 114,000
------------------------------------------------------- -------
H. Xxxxxx Xxxxx
/s/ Xxxx Xxxxxx 625,000
------------------------------------------------------- -------
Xxxx Xxxxxx, Partner of Xxxxxx Family LP
(shares held by Xxxxxx Family LP)
/s/ Xxxxxx Xxxxxxx 625,000
------------------------------------------------------- -------
Xxxxxx Xxxxxxx
/s/ Xxxx Yuko 156,250
------------------------------------------------------- -------
Xxxx Yuko
/s/ Xxxxxxx Xxxxxxxx 40,000
------------------------------------------------------- -------
Xxxxxxx Xxxxxxxx
0
Number of Shares of
Signatures Common Stock Being Registered
---------- -----------------------------
/s/ Xxxx Xxxxxx 2,558,545*
------------------------------------------------------- ---------
Xxxx Xxxxxx, President of Xxxxxx Associates, Inc.
(shares held by Xxxxxx Associates, Inc.)
*All 2,558,545 shares are subject to warrants.
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