REGISTRATION RIGHTS AGREEMENT
Exhibit 10.2
THIS REGISTRATION RIGHTS AGREEMENT (this
“Agreement”), dated as of
September 26, 2019 (the “Execution Date”), is
entered into by and between PREMIER
BIOMEDICAL, INC., a Nevada corporation (the
“Company”), and
GREEN COAST CAPITAL INTERNATIONAL
SA, a Panama
Corporation (together with its permitted assigns, the
“Buyer”). Capitalized
terms used herein and not otherwise defined herein shall have the
respective meanings set forth in that certain Equity Purchase
Agreement by and between the parties hereto, dated as of the
Execution Date (as amended, restated, supplemented or otherwise
modified from time to time, the “Purchase
Agreement”).
WHEREAS:
The
Company has agreed, upon the terms and subject to the conditions of
the Purchase Agreement, to sell to the Buyer up to Five Million
Dollars ($5,000,000.00) of Put Shares and to induce the Buyer to
enter into the Purchase Agreement, the Company has agreed to
provide certain registration rights under the Securities Act of
1933, as amended, and the rules and regulations thereunder, or any
similar successor statute (collectively, the “Securities Act”), and
applicable state securities laws.
NOW, THEREFORE, in consideration of the promises
and the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Buyer hereby agree as
follows:
1.
DEFINITIONS.
As used
in this Agreement, the following terms shall have the following
meanings:
a.
“Investor”
means the Buyer, any transferee or assignee thereof to whom the
Buyer assigns its rights under this Agreement in accordance
with Section 9
and who agrees to become bound by the
provisions of this Agreement, and any transferee or assignee
thereof to whom a transferee or assignee assigns its rights under
this Agreement in accordance with Section 9
and who agrees to become bound by the
provisions of this Agreement.
b.
“Person”
means any individual or entity including but not limited to any
corporation, a limited liability company, an association, a
partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental
agency.
c.
“Register,”
“Registered,”
and “Registration”
refer to a registration effected by preparing and filing one or
more registration statements of the Company in compliance with the
Securities Act and/or pursuant to Rule 415 under the Securities Act
or any successor rule providing for the offering securities on a
continuous basis (“Rule
415”), and the
declaration or ordering of effectiveness of such registration
statement(s) by the United States Securities and Exchange
Commission (the “SEC”).
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d.
“Registrable
Securities” means all of
the Commitment Shares and Put Shares which have been, or which may,
from time to time be issued, including without limitation all of
the shares of Common Stock which have been issued or will be issued
to the Investor under the Purchase Agreement (without regard to any
limitation or restriction on purchases), and any and all shares of
capital stock issued or issuable with respect to the Put Shares and
the Commitment Shares (as such terms are defined in the Purchase
Agreement) issued or issuable to the Investor, and shares of Common
Stock issued to the Investor with respect to the Put Shares,
Commitment Shares and the Purchase Agreement as a result of any
stock split, stock dividend, recapitalization, exchange or similar
event or otherwise, without regard to any limitation on purchases
under the Purchase Agreement.
e.
“Registration
Statement” means one or
more registration statements of the Company on Form S-1 covering
only the sale of the Registrable Securities.
2.
REGISTRATION.
a.
Mandatory
Registration. The Company
shall, by December 26, 2019, file with the SEC an initial
Registration Statement covering the maximum number of Registrable
Securities as shall be permitted to be included thereon (in such
amounts as to the specific Registrable Securities included therein
as identified by the Investor and its legal counsel) in accordance
with applicable SEC rules, regulations and interpretations so as to
permit the resale of such Registrable Securities by the Investor,
including but not limited to under Rule 415 under the Securities
Act at then prevailing market prices (and not fixed prices), as
mutually determined by both the Company and the Investor in
consultation with their respective legal counsel (the
“Initial Registration
Statement”). The Initial
Registration Statement shall register only the Registrable
Securities. The Company shall use its reasonable best efforts to
have the Initial Registration Statement and any amendment thereto
declared effective by the SEC at the earliest possible date (in any
event, within one hundred twenty (120) calendar days after the
Execution Date).
b.
Rule 424
Prospectus. In addition to the
Initial Registration Statement, the Company shall, as required by
applicable securities regulations, from time to time file with the
SEC, pursuant to Rule 424 promulgated under the Securities Act,
such prospectuses and prospectus supplements to be used in
connection with sales of the Registrable Securities under each
Registration Statement. The Investor and its counsel shall have a
reasonable opportunity to review and comment upon such prospectuses
prior to its filing with the SEC, and the Company shall give due
consideration to all such comments. The Investor shall use its
reasonable best efforts to comment upon any prospectus within two
(2) business days from the date the Investor receives the final
pre-filing version of such prospectus.
c.
Sufficient Number of
Shares Registered. In the event
the number of shares available under the Initial Registration
Statement is insufficient to cover all of the Registrable
Securities, the Company shall amend the Initial Registration
Statement or file a new Registration Statement (a
“New Registration
Statement”), so as to
cover all of such Registrable Securities (subject to the
limitations set forth in Section
2(f)) as soon as practicable,
but in any event not later than ten (10) business days after the
necessity therefor arises, subject to any limits that may be
imposed by the SEC pursuant to Rule 415 under the Securities Act.
The Company shall use its reasonable best efforts to cause such
amendment and/or New Registration Statement to become effective as
soon as practicable following the filing
thereof.
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d.
Piggyback
Registration. In the event that
any of the Registrable Securities have not been included in the
Initial Registration Statement or a New Registration Statement, and
the Company initially files any other registration statement under
the Securities Act (other than on Form X-0, Xxxx X-0, or with
respect to other employee related plans or rights offerings) (an
“Other Registration
Statement”), then the
Company shall include in such Other Registration Statement first
all of the Commitment Shares, second all of such Put Shares that
have not been previously Registered, and third any other securities
the Company wishes to include in such Other Registration Statement.
The Company agrees that it shall not file any such Other
Registration Statement unless all of the Put Shares and Commitment
Shares have been included in such Other Registration Statement or
otherwise have been Registered for resale as described
above.
e.
Effectiveness.
The Investor and its counsel shall have a reasonable opportunity to
review and comment upon any Registration Statement and any
amendment or supplement to such Registration Statement and any
related prospectus prior to its filing with the SEC, and the
Company shall give due consideration to all reasonable comments.
The Investor shall furnish all information reasonably requested by
the Company for inclusion therein. The Company shall use reasonable
best efforts to keep all Registration Statements effective,
including but not limited to pursuant to Rule 415 promulgated under
the Securities Act and available for use by the Investor for the
resale of all of the Registrable Securities covered thereby at all
times until the earlier of (i) the date as of which the Investor
may sell all of the Registrable Securities without restriction
pursuant to Rule 144 promulgated under the Securities Act without
any restrictions (including any restrictions under Rule 144(c) or
Rule 144(i)) and (ii) the date on which the Investor shall have
sold all the Registrable Securities covered thereby and no Put
Shares remain issuable under the Purchase Agreement (the
“Registration
Period”). Each
Registration Statement (including any amendments or supplements
thereto and prospectuses contained therein) shall not contain any
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 in which they
were made, not misleading.
f.
Offering.
If the staff of the SEC (the “Staff”)
or the SEC seeks to characterize any offering pursuant to a
Registration Statement filed pursuant to this Agreement as
constituting an offering of securities that does not permit such
Registration Statement to become or remain effective and be used
for resales by the Investor under Rule 415 at then-prevailing
market prices (and not fixed prices) by comment letter or
otherwise, or if after the filing of the Initial Registration
Statement with the SEC pursuant to Section
2(a), the Company is otherwise
required by the Staff or the SEC to reduce the number of
Registrable Securities included in such initial Registration
Statement, then the Company shall reduce the number of Registrable
Securities to be included in such Initial Registration Statement
(with the prior consent, which shall not be unreasonably withheld,
of the Investor and its legal counsel as to the specific
Registrable Securities to be removed therefrom) until such time as
the Staff and the SEC shall so permit such Registration Statement
to become effective and be used as aforesaid. In the event of any
reduction in Registrable Securities pursuant to this paragraph, the
Company shall file one or more New Registration Statements in
accordance with Section 2(c)
until such time as all Registrable
Securities have been included in Registration Statements that have
been declared effective and the prospectus contained therein is
available for use by the Investor. Notwithstanding any provision
herein or in the Purchase Agreement to the contrary, the
Company’s obligations to register Registrable Securities (and
any related conditions to the Investor’s obligations) shall
be qualified as necessary to comport with any requirement of the
SEC or the Staff as addressed in this Section
2(f).
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3.
RELATED
OBLIGATIONS.
With
respect to a Registration Statement and whenever any Registrable
Securities are to be Registered pursuant to Section 2, including on any
Other Registration Statement, the Company shall use its reasonable
best efforts to effect the registration of the Registrable
Securities in accordance with the intended method of disposition
thereof and, pursuant thereto, the Company shall have the following
obligations:
a.
The
Company shall prepare and file with the SEC such amendments
(including post-effective amendments on Form S-1) and supplements
to any registration statement and the prospectus used in connection
with such registration statement, which prospectus is to be filed
pursuant to Rule 424 promulgated under the Securities Act, as may
be necessary to keep the Registration Statement or any Other
Registration Statement effective at all times during the
Registration Period, and, during such period, comply with the
provisions of the Securities Act with respect to the disposition of
all Registrable Securities of the Company covered by the
Registration Statement or any Other Registration Statement until
such time as all of such Registrable Securities shall have been
disposed of in accordance with the intended methods of disposition
by the seller or sellers thereof as set forth in such registration
statement.
b.
The
Company shall permit the Investor to review and comment upon each
Registration Statement or any Other Registration Statement and all
amendments and supplements thereto at least two (2) business days
prior to their filing with the SEC, and not file any document in a
form to which Investor reasonably objects. The Investor shall use
its reasonable best efforts to comment upon the Registration
Statement or any Other Registration Statement and any amendments or
supplements thereto within two (2) business days from the date the
Investor receives the final version thereof. The Company shall
furnish to the Investor, without charge, and within one (1)
business day, any comments and/or any other correspondence from the
SEC or the Staff to the Company or its representatives relating to
the Registration Statement or any Other Registration Statement. The
Company shall respond to the SEC or the Staff, as applicable,
regarding the resolution of any such comments and/or correspondence
as promptly as practicable and in any event within two weeks upon
receipt thereof.
c.
Upon
request of the Investor, the Company shall furnish to the Investor,
(i) promptly after the same is prepared and filed with the SEC, at
least one copy of such registration statement and any amendment(s)
thereto, including financial statements and schedules, all
documents incorporated therein by reference and all exhibits, (ii)
upon the effectiveness of any registration statement, a copy of the
prospectus included in such registration statement and all
amendments and supplements thereto (or such other number of copies
as the Investor may reasonably request) and (iii) such other
documents, including copies of any preliminary or final prospectus,
as the Investor may reasonably request from time to time in order
to facilitate the disposition of the Registrable Securities owned
by the Investor. For the avoidance of doubt, any filing available
to the Investor via the SEC’s live XXXXX system shall be
deemed “furnished to the Investor”
hereunder.
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d.
The Company shall use reasonable best efforts to
(i) register and qualify the Registrable Securities covered by a
registration statement under such other securities or “blue
sky” laws of Florida and such other jurisdictions in the
United States as the Investor reasonably requests, (ii) prepare and
file in those jurisdictions, such amendments (including
post-effective amendments) and supplements to any such
registrations and qualifications as may be necessary to maintain
the effectiveness thereof during the Registration Period, (iii)
take such other actions as may be necessary to maintain such
registrations and qualifications (including all Registration
Statements) in effect at all times during the Registration Period,
and (iv) take all other actions reasonably necessary or advisable
to qualify the Registrable Securities for sale in such
jurisdictions; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to (x)
qualify to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section
3(d), (y) subject itself to
general taxation in any such jurisdiction, or (z) file a general
consent to service of process in any such jurisdiction. The Company
shall promptly notify the Investor who holds Registrable Securities
of the receipt by the Company of any notification with respect to
the suspension of the registration or qualification of any of the
Registrable Securities for sale under the securities or “blue
sky” laws of any jurisdiction in the United States or its
receipt of actual notice of the initiation or threatening of any
proceeding for such purpose.
e.
The
Company shall, as promptly as practicable, notify the Investor in
writing of the happening of any event or existence of such facts as
a result of which the prospectus included in any registration
statement, as then in effect, includes an untrue statement of a
material fact or omits 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, and promptly prepare a supplement or amendment to such
registration statement to correct such untrue statement or
omission, and deliver a copy of such supplement or amendment to the
Investor (or such other number of copies as the Investor may
reasonably request). The Company shall also promptly notify the
Investor in writing (i) when a prospectus or any prospectus
supplement or post-effective amendment has been filed, and when a
registration statement or any post-effective amendment has become
effective (notification of such effectiveness shall be delivered to
the Investor by email or facsimile on the same day of such
effectiveness and by overnight mail), (ii) of any request by the
SEC for amendments or supplements to any registration statement or
related prospectus or related information, and (iii) of the
Company’s reasonable determination that a post-effective
amendment to a registration statement would be
appropriate.
f.
The
Company shall use its reasonable best efforts to prevent the
issuance of any stop order or other suspension of effectiveness of
any registration statement, or the suspension of the qualification
of any Registrable Securities for sale in any jurisdiction and, if
such an order or suspension is issued, to obtain the withdrawal of
such order or suspension at the earliest possible moment and to
notify the Investor of the issuance of such order and the
resolution thereof or its receipt of actual notice of the
initiation or threat of any proceeding for such purpose. In
addition, if the Company shall receive any comment letter from the
SEC relating to any Registration Statement under which Registrable
Securities are Registered, Company shall notify the Investor of the
issuance of such order and use its reasonable best efforts to
address such comments in a manner satisfactory to the
SEC.
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g.
The
Company shall (i) cause all the Registrable Securities to be listed
on each securities exchange on which securities of the same class
or series issued by the Company are then listed, if any, if the
listing of such Registrable Securities is then permitted under the
rules of such exchange, or (ii) secure designation and quotation of
all the Registrable Securities on the Principal Market. The Company
shall pay all fees and expenses in connection with satisfying its
obligation under this Section.
h.
To the extent that the Company’s securities
are eligible to be treated as DWAC Shares at the time of the
Execution Date, the Company shall cooperate with the Investor to
facilitate the timely preparation and delivery of DWAC Shares
representing the Registrable Securities to be offered pursuant to
any Registration Statement. “DWAC
Shares” means shares of
Common Stock that are (i) issued in electronic form, (ii) freely
tradable and transferable and without restriction on resale and
(iii) timely credited by the Company to the Investor’s or its
designee’s specified DWAC account with The Depository Trust
Company (“DTC”) under the DTC/FAST Program, or any
similar program hereafter adopted by DTC performing substantially
the same function.
i.
The
Company shall at all times maintain the services of its Transfer
Agent and registrar with respect to its Common Stock.
j.
If
reasonably requested by the Investor, the Company shall (i)
immediately incorporate in a prospectus supplement or
post-effective amendment such information as the Investor believes
should be included therein relating to the sale and distribution of
Registrable Securities, including, without limitation, information
with respect to the number of Registrable Securities being sold,
the purchase price being paid therefor and any other terms of the
offering of the Registrable Securities; (ii) make all required
filings of such prospectus supplement or post-effective amendment
as soon as practicable upon notification of the matters to be
incorporated in such prospectus supplement or post-effective
amendment; and (iii) supplement or make amendments to any
Registration Statement.
k.
The
Company shall use its reasonable best efforts to cause the
Registrable Securities covered by any Registration Statement to be
Registered with or approved by such other governmental agencies or
authorities as may be necessary to consummate the disposition of
such Registrable Securities.
l.
Within one (1) business day after any Registration
Statement which includes Registrable Securities is ordered
effective by the SEC, or any prospectus supplement or
post-effective amendment including Registrable Securities is filed
with the SEC, the Company shall deliver, and shall cause legal
counsel for the Company to deliver, to the Transfer Agent for such
Registrable Securities (with copies to the Investor) confirmation
that such Registration Statement has been declared effective by the
SEC in the form attached hereto as Exhibit
A. Thereafter, if requested by
the Investor at any time, the Company shall require its counsel to
deliver to the Investor a written confirmation whether or not (i)
the effectiveness of such Registration Statement has lapsed at any
time for any reason (including, without limitation, the issuance of
a stop order), (ii) any comment letter has been issued by the SEC,
and (iii) whether or not the Registration Statement is current and
available to the Investor for sale of all of the Registrable
Securities.
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m.
The
Company shall take all other reasonable actions necessary to
expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to any Registration Statement.
4.
OBLIGATIONS OF THE
INVESTOR.
a.
The
Company shall notify the Investor in writing of the information the
Company reasonably requires from the Investor in connection with
any Registration Statement hereunder. The Investor shall furnish to
the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the
Registrable Securities held by it as shall be reasonably required
to effect the Registration of such Registrable Securities and shall
execute such documents in connection with such Registration as the
Company may reasonably request. Notwithstanding the foregoing, the
Registration Statement shall contain the “Selling
Stockholder” and “Plan of Distribution” sections
in substantially the form provided to the Company by the
Investor.
b.
The
Investor agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and
filing of any Registration Statement hereunder.
c.
The Investor agrees that, upon receipt of any
notice from the Company of the happening of any event or existence
of facts of the kind described in Section 3(f)
or the first sentence of
3(e), the Investor will
immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering such Registrable
Securities until withdrawal of a stop order contemplated by
Section
3(f) or the Investor’s
receipt of the copies of the supplemented or amended prospectus
contemplated by Section
3(e). Notwithstanding anything
to the contrary, the Company shall cause its Transfer Agent to
promptly issue DWAC Shares in accordance with the terms of the
Purchase Agreement in connection with any sale of Registrable
Securities with respect to which an Investor has entered into a
contract for sale prior to the Investor’s receipt of a notice
from the Company of the happening of any event of the kind
described in Section 3(f)
or the first sentence of
Section
3(e) and for which the Investor
has not yet settled.
5.
EXPENSES OF
REGISTRATION.
All
reasonable expenses, other than sales or brokerage commissions,
incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without
limitation, all registration, listing and qualifications fees,
printers and accounting fees, and fees and disbursements of counsel
for the Company, shall be paid by the The Investor up to
$25,000.00.
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6.
INDEMNIFICATION.
a.
To the fullest extent permitted by law, the
Company will, and hereby does, indemnify, hold harmless and defend
the Investor, each Person, if any, who controls or is under common
control with the Investor, the members, the directors, officers,
partners, employees, agents, representatives of the Investor and
each Person, if any, who is an “affiliate” of the
Investor within the meaning of the Securities Act or the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”) (each, an
“Indemnified
Person”), against any
losses, claims, damages, liabilities, judgments, fines, penalties,
charges, costs, attorneys’ fees, amounts paid in settlement
or expenses, joint or several, (collectively,
“Claims”),
incurred in investigating, preparing or defending any action,
claim, suit, inquiry, proceeding, investigation or appeal taken
from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether
pending or threatened, whether or not an Indemnified Person is or
may be a party thereto (“Indemnified
Damages”), to which any
of them may become subject insofar as such Claims (or actions or
proceedings, whether commenced or threatened, in respect thereof)
arise out of or are based upon: (i) any untrue statement or alleged
untrue statement of a material fact in a Registration Statement,
any Other Registration Statement or any post-effective amendment
thereto or in any filing made in connection with the qualification
of the offering under the securities or other “blue
sky” laws of any jurisdiction in which Registrable Securities
are offered (“Blue Sky
Filing”), or the omission
or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading,
(ii) any untrue statement or alleged untrue statement of a material
fact contained in the final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto
with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in
light of the circumstances under which the statements therein were
made, not misleading, (iii) any violation or alleged violation by
the Company of the Securities Act, the Exchange Act, any other law,
including, without limitation, any state securities law, or any
rule or regulation thereunder relating to the offer or sale of the
Registrable Securities pursuant to a Registration Statement or any
Other Registration Statement or (iv) any material violation by the
Company of this Agreement (the matters in the foregoing clauses (i)
through (iv) being, collectively, “Violations”).
The Company shall reimburse each Indemnified Person promptly as
such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them
in connection with investigating or defending any such Claim.
Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section
6(a): (i) shall not apply to a
Claim by an Indemnified Person arising out of or based upon a
Violation which occurs in reliance upon and in conformity with
information about the Investor furnished in writing to the Company
by such Indemnified Person expressly for use in connection with the
preparation of a Registration Statement, any Other Registration
Statement or any such amendment thereof or supplement thereto, if
such prospectus was timely made available by the Company pursuant
to Section 3(c)
or Section
3(e); (ii) with respect to any
superseded prospectus, shall not inure to the benefit of any such
person from whom the person asserting any such Claim purchased the
Registrable Securities that are the subject thereof (or to the
benefit of any person controlling such person) if the untrue
statement or omission of material fact contained in the superseded
prospectus was corrected in the revised prospectus, as then amended
or supplemented, if such revised prospectus was timely made
available by the Company pursuant to Section 3(c)
or Section
3(e), and the Indemnified
Person was promptly advised in writing not to use the incorrect
prospectus prior to the use giving rise to a violation and such
Indemnified Person, notwithstanding such advice, used it; (iii)
shall not be available to the extent such Claim is based on a
failure of the Investor to deliver or to cause to be delivered the
prospectus made available by the Company, if such prospectus was
timely made available by the Company pursuant to
Section
3(c) or Section
3(e); and (iv) shall not apply
to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of the Company, which
consent shall not be unreasonably withheld. Such indemnity shall
remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive
the transfer of the Registrable Securities by the Investor pursuant
to Section
9.
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b.
Promptly after receipt by an Indemnified Person
under this Section 6
of notice of the commencement of any
action or proceeding (including any governmental action or
proceeding) involving a Claim, such Indemnified Person shall, if a
Claim in respect thereof is to be made against the Company under
this Section
6, deliver to the Company a
written notice of the commencement thereof, and the Company shall
have the right to participate in, and, to the extent the Company so
desires, to assume control of the defense thereof with counsel
mutually satisfactory to the Company and the Indemnified Person;
provided, however, that an Indemnified Person shall have the right
to retain its own counsel with the fees and expenses to be paid by
the Company, if, in the reasonable opinion of counsel retained by
the Company, the representation by such counsel of the Indemnified
Person and the Company would be inappropriate due to actual or
potential differing interests between such Indemnified Person and
any other party represented by such counsel in such proceeding. The
Indemnified Person shall cooperate fully with the Company in
connection with any negotiation or defense of any such action or
Claim by the Company and shall furnish to the Company all
information reasonably available to the Indemnified Person which
relates to such action or Claim. The indemnifying party shall keep
the Indemnified Person fully apprised at all times as to the status
of the defense or any settlement negotiations with respect thereto.
The Company shall not be liable for any settlement of any action,
Claim or proceeding effectuated without its written consent,
provided, however, that the Company shall not unreasonably
withhold, delay or condition its consent. The Company shall not,
without the consent of the Indemnified Person, consent to entry of
any judgment or enter into any settlement or other compromise which
does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Person of a release from
all liability in respect to such Claim or litigation. Following
indemnification as provided for hereunder, the Company shall be
subrogated to all rights of the Indemnified Person with respect to
all third parties, firms or corporations relating to the matter for
which indemnification has been made. The failure to deliver written
notice to the Company within a reasonable time of the commencement
of any such action shall not relieve the Company of any liability
to the Indemnified Person under this Section
6, except to the extent that
the Company is prejudiced in its ability to defend such
action.
c.
The indemnification required by this
Section
6 shall be made by periodic
payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or
Indemnified Damages are incurred.
d.
The
indemnity agreements contained herein shall be in addition to (i)
any cause of action or similar right of the Indemnified Person
against the Company or others, and (ii) any liabilities the Company
may be subject to pursuant to the law.
7.
CONTRIBUTION.
To the
extent any indemnification by the Company is prohibited or limited
by law, the Company agrees to make the maximum contribution with
respect to any amounts for which it would otherwise be liable under
Section 6 to the
fullest extent permitted by law; provided, however, that: (i) no
seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any seller
of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of
Registrable Securities shall be limited in amount to the net amount
of proceeds received by such seller from the sale of such
Registrable Securities.
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8.
REPORTS AND DISCLOSURE
UNDER THE SECURITIES ACTS.
With a
view to making available to the Investor the benefits of Rule 144
promulgated under the Securities Act or any other similar rule or
regulation of the SEC that may at any time permit the Investor to
sell securities of the Company to the public without registration
(“Rule
144”), the Company agrees, at the Company’s sole
expense, to:
a.
make
and keep “current public information” available, as
such term is understood and defined in Rule 144;
b.
file
with the SEC in a timely manner all reports and other documents
required of the Company under the Securities Act and the Exchange
Act;
c.
furnish
to the Investor so long as the Investor owns Registrable
Securities, promptly upon request, (i) a written statement by the
Company that it has complied with the reporting and or disclosure
provisions of Rule 144, the Securities Act and the Exchange Act,
(ii) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the
Company, and (iii) such other information as may be reasonably
requested to permit the Investor to sell such securities pursuant
to Rule 144 without registration; and
d.
take
such additional action as is requested by the Investor to enable
the Investor to sell the Registrable Securities pursuant to Rule
144, including, without limitation, delivering all such legal
opinions, consents, certificates, resolutions and instructions to
the Company’s Transfer Agent as may be requested from time to
time by the Investor at the Company’s expense and otherwise
fully cooperate with Investor and Investor’s broker to effect
such sale of securities pursuant to Rule 144.
The
Company agrees that damages may be an inadequate remedy for any
breach of the terms and provisions of this Section 8 and that Investor
shall, whether or not it is pursuing any remedies at law, be
entitled to equitable relief in the form of a preliminary or
permanent injunctions, without having to post any bond or other
security, upon any breach or threatened breach of any such terms or
provisions.
9.
ASSIGNMENT OF
REGISTRATION RIGHTS.
The
Company shall not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the
Buyer, or any Investor as assignee pursuant to this Section 9. The Buyer, or any
Investor, may not assign its rights under this Agreement without
the written consent of the Company other than to an affiliate of
such Investor.
10.
AMENDMENT OF
REGISTRATION RIGHTS.
No
provision of this Agreement may be amended or waived by the parties
from and after the date that is one Business Day immediately
preceding the initial filing of the Initial Registration Statement
with the SEC. Subject to the immediately preceding sentence, no
provision of this Agreement may be (i) amended other than by a
written instrument signed by both parties hereto or (ii) waived
other than in a written instrument signed by the party against whom
enforcement of such waiver is sought. Failure of any party to
exercise any right or remedy under this Agreement or otherwise, or
delay by a party in exercising such right or remedy, shall not
operate as a waiver thereof.
10
11.
MISCELLANEOUS.
a.
A
Person is deemed to be a holder of Registrable Securities whenever
such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions,
notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis
of instructions, notice or election received from the registered
owner of such Registrable Securities.
b.
Any
notices, consents, waivers or other communications required or
permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by
email (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party) if
delivered on a business day during normal business hours where such
notice is to be received, or the first business day following such
delivery (if delivered other than on a business day during normal
business hours where such notice is to be received); or (iii) one
(1) business day after timely deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses for such communications
shall be:
If to
the Company:
Premier
Biomedical, Inc.
X.X.
Xxx 00
Xxxxxxx
Xxxxxx, XX 00000
Email:
xxxx@xxxxxxxxxxxxxxxxx.xxx
Attention: Xxxxxxx
Xxxxxxx, President, Chief Executive Officer
with a
copy to:
Xxxxx
Xxxx & Sessions, PC
000 X.
Xxxx Xxxxxx, Xxxxx 0000
Xxxx
Xxxx Xxxx, XX 00000
Email:
xxx@xxxxxxxxx.xxx
Attn:
Xxxxx X. Xxxxxxxx
If to
the Investor:
Green
Coast Capital International SA
Plaza
2000 10th
fl, 50th
st
Panama
City, Rep of Panama
E-mail:
xxxxxxxxxxx@xxxxxxxxxx-xxxxxxx.xxx
Attention: Xxxxx
Xxxxxx, President
or at
such other address and/or email address and/or to the attention of
such other person as the recipient party has specified by written
notice given to each other party three (3) business days prior to
the effectiveness of such change. Written confirmation of receipt
(A) given by the recipient of such notice, consent, waiver or other
communication, (B) mechanically or electronically generated by the
sender’s email account containing the time, date, recipient
email address, as applicable, and an image of the first page of
such transmission or (C) provided by a nationally recognized
overnight delivery service, shall be rebuttable evidence of
personal service, receipt by email or receipt from a nationally
recognized overnight delivery service in accordance with clause
(i), (ii) or (iii) above, respectively.
11
c.
All
questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by the internal
laws of the State of Nevada, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State of
Nevada or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of
Nevada.
d.
Any disputes, Claims, or controversies
hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein shall be referred to and
resolved solely and exclusively by binding arbitration to be
conducted before the Judicial Arbitration and Mediation Service
(“JAMS”),
or its successor pursuant the expedited procedures set forth in the
JAMS Comprehensive Arbitration Rules and Procedures (the
“Rules”),
including Rules 16.1 and 16.2 of those Rules. The arbitration shall
be held in New York, New York, before a tribunal consisting of
three (3) arbitrators each of whom will be selected in accordance
with the “strike and rank” methodology set forth in
Rule 15. Either party to this Agreement may, without waiving any
remedy under this Agreement, seek from any federal or state court
sitting in the State of Nevada any interim or provisional relief
that is necessary to protect the rights or property of that party,
pending the establishment of the arbitral tribunal. The costs and
expenses of such arbitration shall be paid by and be the sole
responsibility of the Company, including but not limited to the
Investor’s attorneys’ fees and each arbitrator’s
fees. The arbitrators' decision must set forth a reasoned basis for
any award of damages or finding of liability. The arbitrators'
decision and award will be made and delivered as soon as reasonably
possibly and in any case within sixty (60) days' following the
conclusion of the arbitration hearing and shall be final and
binding on the parties and may be entered by any court having
jurisdiction thereof.
e.
If
any provision of this Agreement shall be invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this
Agreement in that jurisdiction or the validity or enforceability of
any provision of this Agreement in any other
jurisdiction.
f.
EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.
g.
This
Agreement and the Purchase Agreement constitute the entire
agreement among the parties hereto with respect to the subject
matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred
to herein and therein. This Agreement and the Purchase Agreement
supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and
thereof.
h.
Subject to the requirements of Section
9, this Agreement shall inure
to the benefit of and be binding upon the successors and permitted
assigns of each of the parties hereto.
12
i.
The
headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning
hereof.
j.
This
Agreement may be executed in identical counterparts, each of which
shall be deemed an original but all of which shall constitute one
and the same agreement. This Agreement, once executed by a party,
may be delivered to the other party hereto by facsimile
transmission or by e-mail in a “.pdf” format data file
of a copy of this Agreement bearing the signature of the party so
delivering this Agreement.
k.
Each
party shall do and perform, or cause to be done and performed, all
such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as
the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.
l.
The
language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any
party.
m.
This
Agreement is intended for the benefit of the parties hereto and
their respective successors and permitted assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any
other Person.
* * * * * *
13
IN WITNESS WHEREOF, the parties have
caused this Agreement to be duly executed as of the Execution
Date.
THE COMPANY:
Premier
Biomedical, Inc.
By:
Name:
Xxxxxxx Xxxxxxx
Title:
President, Chief Executive Officer
BUYER:
Green
Coast Capital International SA
By:
Name:
Xxxxx Xxxxxx
Title:
President
14
EXHIBIT A
FORM OF NOTICE OF EFFECTIVENESS
OF REGISTRATION STATEMENT
______,
2019
Direct
Transfer LLC
000
Xxxxxxxxx Xxxx Xxxxx Xxxxx X
Xxxxxxxxxxx,
XX 00000
Re:
EFFECTIVENESS OF
REGISTRATION STATEMENT
Ladies
and Gentlemen:
We are
counsel to Premier Biomedical,
Inc., a Nevada corporation (the “Company”), and have
represented the Company in connection with that certain Equity
Purchase Agreement, dated as of September 26, 2019 (the
“Purchase
Agreement”), entered into by and between the Company
and Green Coast Capital International SA (the “Buyer”) pursuant to which
the Company has agreed to issue to the Buyer shares of the
Company’s Common Stock, $0.00001 par value (the
“Common
Stock”), in an amount up to Five Million Dollars
($5,000,000.00) (the “Put Shares”), in
accordance with the terms of the Purchase Agreement. In connection
with the transactions contemplated by the Purchase Agreement, the
Company has registered with the U.S. Securities & Exchange
Commission the following shares of Common Stock:
(1)
Put
Shares to be issued to the Buyer upon purchase from the Company by
the Buyer from time to time in accordance with the Purchase
Agreement; and
(2)
Commitment
Shares which were issued to the Buyer pursuant to the Purchase
Agreement.
Pursuant to the
Purchase Agreement, the Company also has entered into a
Registration Rights Agreement, of even date with the Purchase
Agreement with the Buyer (the “Registration Rights
Agreement”) pursuant to which the Company agreed,
among other things, to register the Put Shares and Commitment
Shares under the Securities Act of 1933, as amended (the
“Securities
Act”). In connection with the Company’s
obligations under the Purchase Agreement and the Registration
Rights Agreement, on [], 2019, the Company filed a
Registration Statement (File No. 333-[]) (the “Registration Statement”)
with the Securities and Exchange Commission (the
“SEC”)
relating to the resale of the Put Shares and/or the Commitment
Shares.
In
connection with the foregoing, we advise you that a member of the
SEC’s staff has advised us by telephone that the SEC has
entered an order declaring the Registration Statement effective
under the Securities Act at [ ] [A.M./P.M.] on [], 2019 and we have no
knowledge, after telephonic inquiry of a member of the SEC’s
staff, that any stop order suspending its effectiveness has been
issued or that any proceedings for that purpose are pending before,
or threatened by, the SEC and the Put Shares and Commitment Shares
are available for resale under the Securities Act pursuant to the
Registration Statement and may be issued without any restrictive
legend.
Very
truly yours,
[Company
Counsel]
By:
cc:
Green Coast Capital
International SA
15