REGISTRATION RIGHTS AGREEMENT
EXHIBIT A
This Registration Rights Agreement (this “Agreement”) is made and entered into
as of January __, 2015, among MineralRite Corporation, a Nevada corporation (the “Company”)
and River North Equity, Inc. (the “Buyer”).
This Agreement is made pursuant to the Securities Purchase Agreement, dated as
of the date hereof between the Company and the Buyer (the “Purchase Agreement”).
The Company and Buyer hereby agree as follows:
1.
Definitions. Capitalized terms used and not otherwise defined herein that are
defined in the Purchase Agreement shall have the meanings given such terms in the Purchase
Agreement. As used in this Agreement, the following terms shall have the following meanings:
“Advice” shall have the meaning set forth in Section 6(d).
“Effectiveness Date” means, with respect to the initial Registration Statement
required to be filed hereunder, the 120th calendar day following the date hereof.
“Effectiveness Period” shall have the meaning set forth in Section 2(a).
“Filing Date” means, with respect to the initial Registration Statement required
hereunder, the 45th calendar day following the date hereof.
“Holder” or "Holders" means the holder or holders, as the case may be, from time
to time of Registrable Securities. Holder may refer to Holders where appropriate.
“Indemnified Party” shall have the meaning set forth in Section 5(c).
“Indemnifying Party” shall have the meaning set forth in Section 5(c).
“Losses” shall have the meaning set forth in Section 5(a).
“Prospectus” means the prospectus included in a Registration Statement
(including, without limitation, a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or supplemented by
any prospectus supplement, with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all material
incorporated by reference or deemed to be incorporated by reference in such Prospectus.
“Registrable Securities” means all of (i) the Draw Down Shares issuable as per
the Securities Purchase Agreement, (ii) the Shares as per the Securities Purchase
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Agreement, and (iii) any shares of Common Stock issued or issuable upon any stock
split, dividend or other distribution, recapitalization or similar event with respect to the
foregoing.
“Registration Statement” means the initial Registration Statement required to be
filed hereunder and any additional registration statements filed pursuant to the Securities
Purchase Agreement, including (in each case) the Prospectus, amendments and
supplements to such registration statement or Prospectus, including pre- and post-
effective amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement.
“Rule 415” means Rule 415 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.
“Rule 424” means Rule 424 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.
2.
Shelf Registration.
(a)
On or prior to the Filing Date, the Company shall prepare and file with the
Commission a “Shelf” Registration Statement covering the resale of the Registrable
Securities for an offering to be made by the Holder(s) on a continuous basis pursuant to
Rule 415; provided, however, that if 100% of the Registrable Securities hereunder shall
equal or exceed 33% of the issued and outstanding Common Stock less any such shares
held by Affiliates of the Company on the actual filing date of the initial Registration
Statement (“Registration Cap”), the initial Registration Statement shall register a number
of shares of Common Stock which is equal to the Registration Cap; provided, further, that
if any Registration Statement is subject to a Registration Cap, the shares issued to the
Buyer at the Initial Closing shall have priority in such Registration Statement over the
Draw Down Shares if such shares are not then registered and that the Additional Shares
to be issued to the Buyer as per Section 2.3 of the Purchase Agreement shall be taken
down from an effective Registration Statement. Subject to the terms of this Agreement,
the Company shall use its commercially reasonable efforts to cause any Registration
Statement to be declared effective under the Securities Act as promptly as possible after
the filing thereof, and with respect to the initial Registration Statement in any event prior
to the applicable Effectiveness Date, and shall use its commercially reasonable efforts to
keep such Registration Statement continuously effective under the Securities Act until all
Registrable Securities covered by such Registration Statement have been sold; provided,
however, that Company shall not be required to have unissued Draw Down Shares
covered by such Registration Statement after the expiration of the Commitment Period as
such term is described in the Securities Purchase Agreement (the “Effectiveness
Period”). The Company shall promptly notify the Holders via facsimile of the
effectiveness of a Registration Statement on the same Trading Day that the Company
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telephonically confirms effectiveness with the Commission. The Company shall file a
final Prospectus with the Commission as required by Rule 424.
3.
Registration Procedures
In connection with the Company’s registration obligations hereunder, the
Company shall:
(a)
Not less than five Trading Days prior to the filing of a Registration
Statement and not less than 1 Trading Day prior to the filing of any related Prospectus or
any amendment or supplement thereto (including any document that would be
incorporated or deemed to be incorporated therein by reference), the Company shall, (i)
furnish to Holder copies of all such documents proposed to be filed, which documents
(other than those incorporated or deemed to be incorporated by reference) will be subject
to the review of Holder, and (ii) cause its officers and directors, counsel and independent
certified public accountants to respond to such inquiries as shall be necessary, in the
reasonable opinion of respective counsel to Holder to conduct a reasonable investigation
within the meaning of the Securities Act. The Company shall not file a Registration
Statement or any such Prospectus or any amendments or supplements thereto to which
the Holder shall reasonably object in good faith, provided that, the Company is notified
of such objection in writing no later than 5 Trading Days after the Holder has been so
furnished copies of a Registration Statement or 1 Trading Day after the Holder has been
so furnished copies of any related Prospectus or amendment or supplement thereto and
provided that such failure to file shall not constitute a default under any of the
Transaction Documents provided that the Company use commercially reasonable effort
to address such objections promptly.
(b)
(i) Prepare and file with the Commission such amendments, including
post-effective amendments, to the Registration Statement and the Prospectus used in
connection therewith as may be necessary to keep the Registration Statement
continuously effective as to the applicable Registrable Securities for the Effectiveness
Period and prepare and file with the Commission such additional Registration Statements
in order to register for resale under the Securities Act all of the Registrable Securities; (ii)
cause the related Prospectus to be amended or supplemented by any required Prospectus
supplement (subject to the terms of this Agreement), and as so supplemented or amended
to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any
comments received from the Commission with respect to the Registration Statement or
any amendment thereto and as promptly as reasonably possible provide the Holder true
and complete copies of all correspondence from and to the Commission relating to the
Registration Statement (provided that the Company may excise any information
contained therein which would constitute material non-public information as to Holder);
and (iv) comply in all material respects with the provisions of the Securities Act and the
Exchange Act with respect to the disposition of all Registrable Securities covered by a
Registration Statement during the applicable period in accordance (subject to the terms of
this Agreement) with the intended methods of disposition by the Holder set forth in such
Registration Statement as so amended or in such Prospectus as so supplemented.
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(c)
If during the Effectiveness Period, the number of Registrable Securities at
any time exceeds 100% of the number of shares of Common Stock then registered in a
Registration Statement, then the Company shall file as soon as reasonably practicable an
additional Registration Statement covering the resale by the Holder of not less than 100%
of the number of such Registrable Securities.
(d)
Notify the Holder of Registrable Securities to be sold (which notice shall,
pursuant to clauses (iii) through (vi) hereof, be accompanied by an instruction to suspend
the use of the Prospectus until the requisite changes have been made) as promptly as
reasonably possible (and, in the case of (i)(A) below, not less than 1 Trading Day prior to
such filing) and (if requested by any such Person) confirm such notice in writing no later
than one Trading Day following the day (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to a Registration Statement is proposed to be
filed; (B) when the Commission notifies the Company whether there will be a “review”
of such Registration Statement and whenever the Commission comments in writing on
such Registration Statement; and (C) with respect to a Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any request by the
Commission or any other Federal or state governmental authority for amendments or
supplements to a Registration Statement or Prospectus or for additional information; (iii)
of the issuance by the Commission or any other federal or state governmental authority of
any stop order suspending the effectiveness of a Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv)
of the receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable Securities for sale
in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; (v)
of the occurrence of any event or passage of time that makes the financial statements
included in a Registration Statement ineligible for inclusion therein or any statement
made in a Registration Statement or Prospectus or any document incorporated or deemed
to be incorporated therein by reference untrue in any material respect or that requires any
revisions to a Registration Statement, Prospectus or other documents so that, in the case
of a Registration Statement or the Prospectus, as the case may be, it will not contain any
untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading; and (vi) the occurrence or existence of any
pending corporate development with respect to the Company that the Company believes
may be material and that, in the determination of the Company, makes it not in the best
interest of the Company to allow continued availability of a Registration Statement or
Prospectus; provided that any and all of such information shall remain confidential to
Holder until such information otherwise becomes public, unless disclosure by Holder is
required by law; provided, further, notwithstanding Holder’s agreement to keep such
information confidential, the Holder makes no acknowledgement that any such
information is material, non-public information.
(e)
Use its best efforts to avoid the issuance of, or, if issued, obtain the
withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or
(ii) any suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.
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(f)
Furnish to Holder, without charge, at least one conformed copy of each
such Registration Statement and each amendment thereto, including financial statements
and schedules, all documents incorporated or deemed to be incorporated therein by
reference to the extent requested by such Person, and all exhibits to the extent requested
by such Person (including those previously furnished or incorporated by reference)
promptly after the filing of such documents with the Commission.
(g)
Subject to the terms of this Agreement, the Company hereby consents to
the use of such Prospectus and each amendment or supplement thereto by the Holder in
connection with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto, except after the giving of any
notice pursuant to Section 3(d).
(h)
Should any broker-dealer be required to make a filing or have the
Company make a filing with any regulatory authority prior to executing a sale by Holder,
the Company shall (i) make an issuer filing with such authority or authorities, (ii) respond
within five Trading Days to any comments received in connection therewith, and (iii) pay
the filing fees required in connection therewith.
(i)
Prior to any resale of Registrable Securities by Holder, use its
commercially reasonable efforts to register or qualify or cooperate with the Holder in
connection with the registration or qualification (or exemption from the Registration or
qualification) of such Registrable Securities for the resale by the Holder under the
securities or Blue Sky laws of such jurisdictions within the United States as Holder
reasonably requests in writing, to keep each registration or qualification (or exemption
therefrom) effective during the Effectiveness Period and to do any and all other acts or
things reasonably necessary to enable the disposition in such jurisdictions of the
Registrable Securities covered by the Registration Statement; provided, that the Company
shall not be required to qualify generally to do business in any jurisdiction where it is not
then so qualified, subject the Company to any material tax in any such jurisdiction where
it is not then so subject or file a general consent to service of process in any such
jurisdiction.
(j)
If requested by the Holder, cooperate with the Holder to facilitate the
timely preparation and delivery of certificates representing Registrable Securities to be
delivered to a transferee pursuant to the Registration Statement, which certificates shall
be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and
to enable such Registrable Securities to be in such denominations and registered in such
names as Holder may request.
(k)
Upon the occurrence of any event contemplated by this Section 3, as
promptly as reasonably possible under the circumstances taking into account the
Company’s good faith assessment of any adverse consequences to the Company and its
stockholders of the premature disclosure of such event, prepare a supplement or
amendment, including a post-effective amendment, to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to be
incorporated therein by reference, and file any other required document so that, as
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thereafter delivered, neither the Registration Statement nor such Prospectus will contain
an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. If the Company notifies the Holder in accordance
with clauses (iii) through (vi) of Section 3(d) above to suspend the use of any Prospectus
until the requisite changes to such Prospectus have been made, then the Holder shall
suspend use of such Prospectus. The Company will use its best efforts to ensure that the
use of the Prospectus may be resumed as promptly as is practicable.
(l)
Comply with all applicable rules and regulations of the Commission.
(m)
The Company may require the Holder to furnish to the Company a
certified statement as to the number of shares of Common Stock beneficially owned by
the Holder and, if required by the Commission, the natural persons thereof that have
voting and dispositive control over the Shares. The Holder acknowledges that it will be
named as an “underwriter” of the Registrable Securities in the Prospectus, as required by
Commission policies.
4.
Registration Expenses. All fees and expenses incident to the performance of or
compliance with this Agreement by the Company shall be borne by the Company whether or not
any Registrable Securities are sold pursuant to the Registration Statement. The fees and
expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration
and filing fees (including, without limitation, fees and expenses (A) with respect to filings
required to be made with any Trading Market on which the Common Stock is then listed for
trading, (B) in compliance with applicable state securities or Blue Sky laws reasonably agreed to
by the Company in writing (including, without limitation, fees and disbursements of counsel for
the Company in connection with Blue Sky qualifications or exemptions of the Registrable
Securities) and (C) if not previously paid by the Company in connection with an issuer filing,
with respect to any filing that may be required to be made by any broker through which a Holder
intends to make sales of Registrable Securities, so long as the broker is receiving no more than a
customary brokerage commission in connection with such sale, (ii) printing expenses (including,
without limitation, expenses of printing certificates for Registrable Securities, (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v)
Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and
expenses of all other Persons retained by the Company in connection with the consummation of
the transactions contemplated by this Agreement. In addition, the Company shall be responsible
for all of its internal expenses incurred in connection with the consummation of the transactions
contemplated by this Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of any annual audit
and the fees and expenses incurred in connection with the listing of the Registrable Securities on
any securities exchange as required hereunder. In no event shall the Company be responsible for
any broker or similar commissions of Holder or, except to the extent provided for in the
Transaction Documents, any legal fees or other costs of the Holder.
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5.
Indemnification
(a)
Indemnification by the Company. The Company shall, notwithstanding
any termination of this Agreement, indemnify and hold harmless Holder, the officers,
directors, members, partners, agents, brokers (including brokers who offer and sell
Registrable Securities as principal as a result of a pledge or any failure to perform under a
margin call of Common Stock), investment advisors and employees (and any other
Persons with a functionally equivalent role of a Person holding such titles,
notwithstanding a lack of such title or any other title) of Holder, each Person who
controls Holder (within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act) and the officers, directors, members, shareholders, partners, agents
and employees (and any other Persons with a functionally equivalent role of a Person
holding such titles, notwithstanding a lack of such title or any other title)of each such
controlling Person, to the fullest extent permitted by applicable law, from and against any
and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable
attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or
relating to (1) any untrue or alleged untrue statement of a material fact contained in a
Registration Statement, any Prospectus or any form of prospectus or in any amendment
or supplement thereto or in any preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made) not
misleading, or (2) any violation or alleged violation by the Company of the Securities
Act, Exchange Act or any state securities law, or any rule or regulation thereunder, in
connection with the performance of its obligations under this Agreement, except to the
extent, but only to the extent, that (i) such untrue statements or omissions are based solely
upon information regarding Holder furnished in writing to the Company by Holder
expressly for use therein, or to the extent that such information relates to Holder or
Holder’s proposed method of distribution of Registrable Securities and was reviewed and
expressly approved in writing by Holder expressly for use in a Registration Statement,
such Prospectus or such form of Prospectus or in any amendment or supplement thereto
(it being understood that the Holder has approved Annex A hereto for this purpose) or (ii)
in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the
use by Holder of an outdated or defective Prospectus after the Company has notified
Holder in writing that the Prospectus is outdated or defective and prior to the receipt by
Holder of the Advice contemplated in Section 6(d). The Company shall notify the
Holder promptly of the institution, threat or assertion of any Proceeding arising from or
in connection with the transactions contemplated by this Agreement of which the
Company is aware.
(b)
Indemnification by Holder. Holder shall, severally and not jointly,
indemnify and hold harmless the Company, its directors, officers, agents and employees,
each Person who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or
employees of such controlling Persons, to the fullest extent permitted by applicable law,
from and against all Losses, as incurred, to the extent arising out of or based solely upon:
(x) Holder’s failure to comply with the prospectus delivery requirements of the Securities
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Act or (y) any untrue or alleged untrue statement of a material fact contained in any
Registration Statement, any Prospectus, or any form of prospectus, or in any amendment
or supplement thereto or in any preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading (i) to the extent, but only to the extent, that
such untrue statement or omission is contained in any information so furnished in writing
by Holder to the Company specifically for inclusion in such Registration Statement or
such Prospectus or (ii) to the extent that such information relates to Holder’s proposed
method of distribution of Registrable Securities and was reviewed and expressly
approved in writing by Holder expressly for use in a Registration Statement , such
Prospectus or such form of Prospectus or in any amendment or supplement thereto or (iii)
in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the
use by Holder of an outdated or defective Prospectus after the Company has notified
Holder in writing that the Prospectus is outdated or defective and prior to the receipt by
Holder of the Advice contemplated in Section 6(d). In no event shall the liability of
Holder hereunder be greater in amount than the dollar amount of the net proceeds
received by Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.
(c)
Conduct of Indemnification Proceedings. If any Proceeding shall be
brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified
Party”), such Indemnified Party shall promptly notify the Person from whom indemnity
is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have
the right to assume the defense thereof, including the employment of counsel reasonably
satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof; provided, that the failure of any Indemnified Party to
give such notice shall not relieve the Indemnifying Party of its obligations or liabilities
pursuant to this Agreement, except (and only) to the extent that it shall be finally
determined by a court of competent jurisdiction (which determination is not subject to
appeal or further review) that such failure shall have prejudiced the Indemnifying Party.
An Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the
Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the
Indemnifying Party shall have failed promptly to assume the defense of such Proceeding
and to employ counsel reasonably satisfactory to such Indemnified Party in any such
Proceeding; or (3) the named parties to any such Proceeding (including any impleaded
parties) include both such Indemnified Party and the Indemnifying Party, and counsel to
the Indemnified Party shall reasonably believe that a material conflict of interest is likely
to exist if the same counsel were to represent such Indemnified Party and the
Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying
Party in writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense
thereof and the reasonable fees and expenses of no more than one separate counsel shall
be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable
for any settlement of any such Proceeding effected without its written consent, which
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consent shall not be unreasonably withheld or delayed. No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless such
settlement includes an unconditional release of such Indemnified Party from all liability
on claims that are the subject matter of such Proceeding.
Subject to the terms of this Agreement, all reasonable fees and expenses of the
Indemnified Party (including reasonable fees and expenses to the extent incurred in
connection with investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within
ten Trading Days of written notice thereof to the Indemnifying Party; provided, that the
Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of
such fees and expenses applicable to such actions for which such Indemnified Party is
judicially determined to be not entitled to indemnification hereunder.
(d)
Contribution. If the indemnification under Section 5(a) or 5(b) is
unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless
for any Losses, then each Indemnifying Party shall contribute to the amount paid or
payable by such Indemnified Party, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any other relevant
equitable considerations. The relative fault of such Indemnifying Party and Indemnified
Party shall be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission. The amount paid or payable by a party as a result of
any Losses shall be deemed to include, subject to the limitations set forth in this
Agreement, any reasonable attorneys’ or other fees or expenses incurred by such party in
connection with any Proceeding to the extent such party would have been indemnified for
such fees or expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms.
The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 5(d) were determined by pro rata allocation or by any other
method of allocation that does not take into account the equitable considerations referred
to in the immediately preceding paragraph. Notwithstanding the provisions of this
Section 5(d), Holder shall not be required to contribute, in the aggregate, any amount in
excess of the amount by which the net proceeds actually received by Holder from the sale
of the Registrable Securities subject to the Proceeding exceeds the amount of any
damages that Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission, except in the case of fraud by
Holder.
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The indemnity and contribution agreements contained in this Section are in
addition to any liability that the Indemnifying Parties may have to the Indemnified
Parties.
6.
Miscellaneous
(a)
Remedies. In the event of a breach by the Company or by the Holder, of
any of their respective obligations under this Agreement, Holder or the Company, as the
case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, will be entitled to specific performance
of its rights under this Agreement. The Company and Holder agree that monetary
damages would not provide adequate compensation for any losses incurred by reason of a
breach by it of any of the provisions of this Agreement and hereby further agrees that, in
the event of any action for specific performance in respect of such breach, it shall not
assert or shall waive the defense that a remedy at law would be adequate.
(b)
No Piggyback on Registrations. Neither the Company nor any of its
security holders (other than the Holder in such capacity pursuant hereto) may include
securities of the Company in the Registration Statement other than the Registrable
Securities. In addition, from the date hereof until the end of the Commitment Period and
so long as the Company shall have any obligation under the Convertible Note Purchase
Agreement and the Convertible Promissory Note issued to the Buyer pursuant thereto
dated January __, 2015, other than Registration Statement(s) required to be filed
hereunder, the Company shall not file any other registration statements with the
Commission seeking to register shares issuable pursuant to an equity line of credit or
similar transaction based on a floating issuance or conversion price.
(c)
Compliance. Holder covenants and agrees that it will comply with the
prospectus delivery requirements of the Securities Act as applicable to it in connection
with sales of Registrable Securities pursuant to a Registration Statement.
(d)
Discontinued Disposition. Holder agrees by its acquisition of Registrable
Securities that, upon receipt of a notice from the Company of the occurrence of any event
of the kind described in Section 3(d), Holder will forthwith discontinue disposition of
such Registrable Securities under a Registration Statement until it is advised in writing
(the “Advice”) by the Company that the use of the applicable Prospectus (as it may have
been supplemented or amended) may be resumed. The Company will use its best efforts
to ensure that the use of the Prospectus may be resumed as promptly as it practicable.
(e)
Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given, unless the
same shall be in writing and signed by the Company and each Holder of the then
outstanding Registrable Securities. Notwithstanding the foregoing, a waiver or consent
to depart from the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders and that does not directly or indirectly affect the rights of other Holders
may be given by Holders of all of the Registrable Securities to which such waiver or
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consent relates; provided, however, that the provisions of this sentence may not be
amended, modified, or supplemented except in accordance with the provisions of the
immediately preceding sentence.
(f)
Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be delivered as set forth in the
Purchase Agreement.
(g)
Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties and their successors. Neither party may assign this
Agreement or any rights or obligations hereunder (other than by merger).
(h)
Piggy Back Registration Rights. If at any time during the Effectiveness
Period there is no effective Registration Statement covering all of the Shares then issued
and outstanding and the Company shall determine to prepare and file with the
Commission a registration statement relating to an offering for its own account or the
account of others under the Securities Act of any of its equity securities, other than on
Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then
equivalents relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in connection with the
stock option or other employee benefit plans, then the Company shall include in such
registration statement all of such Shares. For clarity, the provisions of this Section 6(h)
shall require that the Company include the Shares and the Additional Shares to be issued
pursuant to Section 2.2 and 2.3, respectively, of the Securities Purchase Agreement on
the first registration statement it files following the date hereof.
(i)
No Inconsistent Agreements. Neither the Company nor any of its
Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its
Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect
to its securities, that would have the effect of impairing the rights granted to the Holder in
this Agreement or otherwise conflicts with the provisions hereof. Except as set forth on
Schedule 6(i), neither the Company nor any of its subsidiaries has previously entered into
any agreement granting any registration rights with respect to any of its securities to any
Person that have not been satisfied in full.
(j)
Execution and Counterparts. This Agreement may be executed in two or
more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party
and delivered to the other party, it being understood that both parties need not sign the
same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed)
with the same force and effect as if such facsimile or “.pdf” signature page were an
original thereof.
11
(k)
Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be determined in accordance with
the provisions of the Securities Purchase Agreement.
(l)
Cumulative Remedies. The remedies provided herein are cumulative and
not exclusive of any other remedies provided by law.
(m)
Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected, impaired or
invalidated, and the parties hereto shall use their commercially reasonable efforts to find
and employ an alternative means to achieve the same or substantially the same result as
that contemplated by such term, provision, covenant or restriction. It is hereby stipulated
and declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of such
that may be hereafter declared invalid, illegal, void or unenforceable.
(n)
Headings. The headings in this Agreement are for convenience only, do
not constitute a part of this Agreement, and shall not be deemed to limit or affect any of
the provisions hereof.
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IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.
MINERALRITE CORPORATION
By: ____________________________
Name: _________________________
Title: ________________________
RIVER NORTH EQUITY, INC.
By: ________________________
Name: Xxxxxx X. Xxxxxxx
Title: President