REGISTRATION RIGHTS AGREEMENT
This
Registration Rights Agreement (this “Agreement”) is made and entered into as of
November 6, 2007, by and among Plastinum Polymer Technologies Corp., a Delaware
corporation (the “Company”), on the one hand, and the purchasers signatory
hereto (each such purchaser, a “Purchaser” and collectively, the Purchasers”)
and those shareholders of the Company listed on Exhibit A (the “Shareholders”),
on the other hand.
This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of
the
date hereof among the Company and the Purchasers (the “Purchase Agreement”)
pursuant to which the Company is issuing to Purchasers shares of the Company’s
Series B-1 Preferred Stock and other sub-series of the Company’s Series B
Preferred Stock from time to time (collectively, the “Series B Preferred Stock”)
which are convertible into shares of the Company’s Common Stock (the “Conversion
Shares”) and warrants to purchase shares of the Company’s Common Stock (the
“Warrant Shares”).
The
Company, and the Purchasers 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:
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Agreement
“Closing”
means the closing of the transactions contemplated by the Purchase
“Dividend
Shares” means shares of the Company’s Common Stock which may be issued by the
Company as dividends in respect of the Series B Preferred Stock.
“Effectiveness
Date” means, with respect to the Registration Statement required to be filed
hereunder, the earlier of (a) the 120th calendar day following the date of
the
filing the Registration Statement, and (b) the fifth Trading Day following
the
date on which the Company is notified by the Commission that the Registration
Statement will not be reviewed or is no longer subject to further review and
comments.
“Effectiveness
Period” shall have the meaning set forth in Section 2.
“Filing
Date” means, with respect to the Registration Statement required to be filed
hereunder, the 90th calendar day following the date of the date of the
Closing.
“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time,
of Registrable Securities.
“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).
“Plan
of
Distribution” shall have the meaning set forth in Section 2.
“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition),
whether commenced or threatened.
“Prospectus”
means the prospectus included in the 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 the
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, as to this Agreement only, (a) all of the Conversion Shares,
(b) all of the Warrant Shares, and (c) all of the Dividend Shares together,
with
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 registration statements required to be filed hereunder,
including (in each case) the Prospectus, amendments and supplements to the
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 the 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.
“Selling
Shareholder Questionnaire” shall have the meaning set forth in
Section
2. Registration
On
or
prior to the Filing Date, the Company shall use commercially reasonable efforts
to prepare and file with the Commission the Registration Statement covering
the
resale of all of the Registrable Securities for an offering to be made on a
continuous basis pursuant to Rule 415. The Registration Statement required
hereunder shall contain (except if otherwise directed by the Holders)
substantially the “Plan of Distribution” attached hereto as Annex A. Subject to
the terms of this Agreement, the Company shall use commercially reasonable
efforts to cause the Registration Statement to be declared effective under
the
Securities Act as promptly as possible after the filing thereof, but in any
event not later than the Effectiveness Date, and shall use its best efforts
to
keep the Registration Statement continuously effective under the Securities
Act
until the date when all Registrable Securities covered by the Registration
Statement have been sold or may be sold without volume restrictions pursuant
to
Rule 144(k) as determined by the counsel to the Company pursuant to a written
opinion letter to such effect, addressed and acceptable to the Company’s
transfer agent and the affected Holders (the “Effectiveness Period”). In the
event that the Company is unable to have the Registration Statement declared
effective by the Effectiveness Date due to limitations imposed by the Securities
and Exchange Commission on the registration of shares for resale on behalf
of
selling security holders, such inability shall not be considered a breach of
the
Company’s obligations under this Agreement.
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 the Registration
Statement or any related Prospectus or any amendment or supplement
thereto, the Company shall, (i) furnish to the Holders copies of
any
disclosure relating to the Holders, including but not limited to
the
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entire
Selling Stockholder and Plan of Distribution sections which sections shall
be
subject to the review of such Holders, 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 conduct a reasonable investigation within the meaning of the
Securities Act. The Company shall not file the Registration Statement or any
such prospectus or any amendments or supplements thereto to which the Holders
of
a majority of the Registrable Securities shall reasonably object in good faith,
provided that the Company is notified of such objection in writing no later
than
two Trading Days after the Holders have been so furnished copies of such
documents. Prior to any filing relating to the Registration Statement, each
Holder agrees to furnish to the Company a completed Questionnaire in the form
attached to this Agreement as Annex B (a “Selling Shareholder Questionnaire”)
within five Trading Days of written request by the Company.
(b) |
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(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;
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(ii) |
cause
the related Prospectus to be amended or supplemented by any required
Prospectus supplement, and as so supplemented or amended to be filed
pursuant to Rule 424;
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(iii) |
respond
as promptly as reasonably practicable to any comments received from
the
Commission with respect to the Registration Statement or any amendment
thereto and, as promptly as reasonably practicable, upon request,
provide
the Holders upon request true and complete copies of all correspondence
from and to the Commission relating to the Registration Statement;
and
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(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 the Registration Statement during the applicable period
in
accordance with the intended methods of disposition by the Holders
thereof
set forth in the Registration Statement as so amended or in such
Prospectus as so supplemented.
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(c) |
Notify
the Holders of Registrable Securities to be sold as promptly as reasonably
practicable and (if requested by any such Person) confirm such notice
in
writing promptly following the day
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(i) |
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(A) |
when
a Prospectus or any Prospectus supplement or post- effective amendment
to
the Registration Statement is proposed to be filed;
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(B) |
when
the Commission notifies the Company whether there will be a “review” of
the Registration Statement and whenever the Commission comments in
writing
on the Registration Statement (the Company shall upon request provide
true
and complete copies thereof and all written responses thereto to
each of
the Holders); and
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(C) |
with
respect to the Registration Statement or any post-effective amendment,
when the same has become effective;
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(ii) |
of
any request by the Commission or any other Federal or state governmental
authority during the period of effectiveness of
the
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Registration
Statement for amendments or supplements to the 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 the
Registration Statement covering any or all of the Registrable Securities
or the initiation of any Proceedings for that purpose;
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(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; and
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(v) |
of
the occurrence of any event or passage of time that makes the financial
statements included in the Registration Statement ineligible for
inclusion
therein or any statement made in the 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
the Registration Statement, Prospectus or other documents so that,
in the
case of the 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.
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(d) |
Use
commercially reasonable efforts to avoid the issuance of, or, if
issued,
obtain the withdrawal of
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(i) |
any
order suspending the effectiveness of the Registration Statement,
or
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(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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(e)
|
Furnish
to each Holder, without charge and upon request, at least one conformed
copy of the 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.
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(f)
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Promptly
deliver to each Holder, without charge and upon request, as many
copies of
the Prospectus or Prospectuses (including each form of prospectus)
and
each amendment or supplement thereto as such Persons may reasonably
request in connection with resales by the Holder of Registrable
Securities. Subject to the terms of this Agreement, the Company hereby
consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders 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 on any notice
pursuant to Section 3(c).
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(g)
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Prior
to any resale of Registrable Securities by a Holder, use its commercially
reasonable efforts to register or qualify or cooperate with the selling
Holders 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 any Holder reasonably requests
in writing, to keep the 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
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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 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.
(h)
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If
requested by the Holders, cooperate with the Holders 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 any such Holders may
request.
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(i)
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Upon
the occurrence of any event contemplated by Section 3(c)(v), as promptly
as reasonably possible, 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 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 Holders in
accordance with clauses (ii) through (v) of Section 3(c) above to
suspend
the use of any Prospectus until the requisite changes to such Prospectus
have been made, then the Holders 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. The Company shall be
entitled to exercise its right under this Section 3(i) to suspend
the
availability of a Registration Statement and Prospectus, subject
to the
payment of partial liquidated damages pursuant to Section 2(b), for
a
period not to exceed 60 days (which need not be consecutive days)
in any
12 month period.
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(j) |
Comply
with all applicable rules and regulations of the
Commission.
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(k)
|
The
Company may require each selling Holder to furnish to the Company
a
certified statement as to the number of shares of Common Stock
beneficially owned by such Holder and, if required by the Commission,
the
person thereof that has voting and dispositive control over the Shares.
During any periods that the Company is unable to meet its obligations
hereunder with respect to the registration of the Registrable Securities
solely because any Holder fails to furnish such information within
three
Trading Days of the Company’s request, any liquidated damages that are
accruing at such time as to such Holder only shall be tolled and
any Event
that may otherwise occur solely because of such delay shall be suspended
as to such Holder only, until such information is delivered to the
Company.
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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 with respect to filings required to be made with the Trading
Market on which the Common Stock is then listed for trading, (ii) printing
expenses (including, without limitation, expenses of printing certificates
for
Registrable Securities and of printing prospectuses if the printing of
prospectuses is reasonably requested by the holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for
the
Company, (v) Securities Act liability
-5-
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 or, except
to
the extent provided for in the Transaction Documents, any legal fees or other
costs of the Holders.
5. Indemnification
(a)
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Indemnification
by the Company. The Company shall, notwithstanding any termination
of this
Agreement, indemnify and hold harmless each Holder, the officers,
directors, agents and employees of each of them, each Person who
controls
any such Holder (within the meaning of Section 15 of the Securities
Act or
Section 20 of the Exchange Act) and the officers, directors, agents
and
employees 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 any untrue or alleged untrue statement of a material
fact
contained in the 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, except to the extent, but only
to
the extent, that
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(i) |
such
untrue statements or omissions are based solely upon information
regarding
such Holder furnished in writing to the Company by such Holder expressly
for use therein, or to the extent that such information relates to
such
Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by
such
Holder expressly for use in the 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
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(ii) |
in
the case of an occurrence of an event of the type specified in Section
3(c)(ii)-(v), the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing
that the
Prospectus is outdated or defective. The Company shall notify the
Holders
promptly of the institution, threat or assertion of any Proceeding
of
which the Company is aware in connection with the transactions
contemplated by this Agreement.
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(b)
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Indemnification
by Holders. Each 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)
such
Holder’s failure to comply with the prospectus delivery requirements of
the Securities 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
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-6-
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 such Holder to the Company specifically for inclusion in the
Registration Statement or such Prospectus or (ii) to the extent that
(1) |
such
untrue statements or omissions are based solely upon information
regarding
such Holder furnished in writing to the Company by such Holder expressly
for use therein, or to the extent that such information relates to
such
Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by
such
Holder expressly for use in the Registration Statement (it being
understood that the Holder has approved Annex A hereto for this purpose),
such Prospectus or such form of Prospectus or in any amendment or
supplement thereto or
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(2) |
in
the case of an occurrence of an event of the type specified in Section
3(c)(ii)-(v), the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing
that the
Prospectus is outdated or defective. In no event shall the liability
of
any selling Holder hereunder be greater in amount than the dollar
amount
of the net proceeds received by such Holder upon the sale of the
Registrable Securities giving rise to such indemnification
obligation.
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(c)
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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.
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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;
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(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
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(3) |
The
named parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and
such
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 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 consent shall
not
be unreasonably withheld. No Indemnifying Party
shall,
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-7-
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 not entitled
to
indemnification hereunder, determined based upon the relative faults of the
parties.
(d) |
Contribution.
If a claim for indemnification under Section 5(a) or 5(b) is unavailable
to an Indemnified Party (by reason of public policy or otherwise),
then
each Indemnifying Party, in lieu of indemnifying such Indemnified
Party,
shall contribute to the amount paid or payable by such Indemnified
Party
as a result of such Losses, 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 reasonable 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.
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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), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which
the
proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that
such
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
such Holder.
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 a Holder, of any of
their
obligations under this Agreement, each 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 each Holder agree that monetary damages would not provide
adequate compensation for any losses incurred by reason of a breach
by it
of any of
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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 waive the
defense that a remedy at law would be adequate.
(b) |
Compliance.
Each 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 the
Registration Statement.
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(c) |
Discontinued
Disposition. Each Holder agrees by its acquisition of such Registrable
Securities that, upon receipt of a notice from the Company of the
occurrence of any event of the kind described in Section 3(c), such
Holder
will forthwith discontinue disposition of such Registrable Securities
under the Registration Statement until such Holder’s receipt of the copies
of the supplemented Prospectus and/or amended Registration Statement
or
until it is advised in writing (the “Advice”) by the Company that the use
of the applicable Prospectus may be resumed, and, in either case,
has
received copies of any additional or supplemental filings that are
incorporated or deemed to be incorporated by reference in such Prospectus
or Registration Statement. The Company will use its best efforts
to ensure
that the use of the Prospectus may be resumed as promptly as it
practicable. The Company agrees and acknowledges that any periods
during
which the Holder is required to discontinue the disposition of the
Registrable Securities hereunder shall be subject to the provisions
of
Section 2(b).
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(d) |
Piggy-Back
Registrations. If at any time during the Effectiveness Period there
is not
an effective Registration Statement covering all of the Registrable
Securities and the Company shall determine to prepare and file with
the
Commission a registration statement relating to an offering for its
own
account 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 send to each Holder
a
written notice of such determination and, if within fifteen days
after the
date of such notice, any such Holder shall so request in writing,
the
Company shall include in such registration statement all or any part
of
such Registrable Securities such Holder requests to be registered,
subject
to customary underwriter cutbacks applicable to all holders of
registration rights.
|
(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
Holders
of at least 66% of the then outstanding Registrable
Securities.
|
(f) |
Notices.
Any and all notices or other communications or deliveries required
or
permitted to be provided hereunder shall be made in accordance with
the
provisions of the Purchase
Agreement.
|
(g) |
Successors
and Assigns. This Agreement shall inure to the benefit of and be
binding
upon the successors and permitted assigns of each of the parties
and shall
inure to the benefit of each Holder. Each Holder may assign their
respective rights hereunder in the manner and to the Persons as permitted
under the Purchase Agreement.
|
(h) |
Execution
and Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be
an
original and, all of which taken together shall constitute one and
the
same Agreement. In the event that
any
|
-9-
signature
is delivered by facsimile transmission, such signature shall create a valid
binding obligation of the party executing (or on whose behalf such signature
is
executed) the same with the same force and effect as if such facsimile signature
were the original thereof.
(i) |
Governing
Law. All questions concerning the construction, validity, enforcement
and
interpretation
of this Agreement shall be determined with the provisions of the
Purchase
Agreement.
|
(j) |
Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive
of
any remedies provided by law.
|
(k) |
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.
|
(l) |
Headings.
The headings in this Agreement are for convenience of reference only
and
shall not limit or otherwise affect the meaning
hereof.
|
(m)
|
Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder
hereunder are several and not joint with the obligations of any other
Holder hereunder, and no Holder shall be responsible in any way for
the
performance of the obligations of any other Holder hereunder. Nothing
contained herein or in any other agreement or document delivered
at any
closing, and no action taken by any Holder pursuant hereto or thereto,
shall be deemed to constitute the Holders as a partnership, an
association, a joint venture or any other kind of entity, or create
a
presumption that the Holders are in any way acting in concert with
respect
to such obligations or the transactions contemplated by this Agreement.
Each Holder shall be entitled to protect and enforce its rights,
including
without limitation the rights arising out of this Agreement, and
it shall
not be necessary for any other Holder to be joined as an additional
party
in any proceeding for such purpose.
|
[SIGNATURE
PAGES FOLLOW]
-10-
IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
as
of the date first written above.
By:
Name:
Title:
[SIGNATURE
PAGES OF PURCHASERS FOLLOW]
-11-
PURCHASER’S
SIGNATURE PAGE TO PLASTINUM POLYMER TECHNOLOGIES CORP. REGISTRATION RIGHTS
AGREEMENT
(Name
of
Entity)
By:
Name:
Title:
[SIGNATURE
PAGES CONTINUE]
-12-
ANNEX
A
PLAN
OF DISTRIBUTION
The
Selling Stockholders (the “Selling Stockholders”) of the common stock (“Common
Stock”) of Plastinum Polymer Technologies Corp., a Delaware corporation(the
“Company”) and any of their pledgees, assignees and successors-in-interest may,
from time to time, sell any or all of their shares of Common Stock on any stock
exchange, market or trading facility on which the shares are traded or in
private transactions. These sales may be at fixed or negotiated prices. The
Selling Stockholders may use any one or more of the following methods when
selling shares:
• |
Ordinary
brokerage transactions and transactions in which the broker-dealer
solicits purchasers;
|
• |
Block
trades in which the broker-dealer will attempt to sell the shares
as agent
but may position and resell a portion of the block as principal to
facilitate the transaction;
|
• |
Purchases
by a broker-dealer as principal and resale by the broker-dealer for
its
account;
|
• |
An
exchange distribution in accordance with the rules of the applicable
exchange;
|
• |
Privately
negotiated transactions;
|
• |
Broker-dealers
may agree with the Selling Stockholders to sell a specified number
of such
shares at a stipulated price per
share;
|
• |
A
combination of any such methods of
sale;
|
• |
Through
the writing or settlement of options or other hedging transactions,
whether through an options exchange or otherwise;
or
|
• |
Any
other method permitted pursuant to applicable
law.
|
The
Selling Stockholders may also sell shares under Rule 144 under the Securities
Act of 1933, as amended (the “Securities Act”), if available, rather than under
this prospectus.
Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers- dealers
to
participate in sales. Broker-dealers may receive commissions or discounts from
the Selling Stockholders (or, if any broker-dealer acts as agent for the
purchaser of shares, from the purchaser) in amounts to be negotiated. Each
Selling Stockholder does not expect these commissions and discounts relating
to
its sales of shares to
exceed
what is customary in the types of transactions involved.
The
Selling Stockholders may loan or pledge the common stock to broker-dealers
that
in turn may sell these securities. The Selling Stockholders may also enter
into
option or other transactions with broker-dealers or other financial institutions
or the creation of one or more derivative securities which require the delivery
to such broker- dealer or other financial institution of shares offered by
this
prospectus, which shares such broker-dealer or other financial institution
may
resell pursuant to this prospectus (as supplemented or amended to reflect such
transaction).
The
Selling Stockholders and any broker-dealers or agents that are involved in
selling the shares may be deemed to be “underwriters” within the meaning of the
Securities Act in connection with such sales. In such event, any commissions
received by such broker-dealers or agents and any profit on the resale of
the
-13-
shares
purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed the Company
that
it does not have any agreement or understanding,
directly or indirectly, with any person to distribute the Common
Stock.
The
Company is required to pay certain fees and expenses incurred by the Company
incident to the registration of the shares. The Company has agreed to indemnify
the Selling Stockholders against certain losses, claims, damages and
liabilities, including liabilities under the Securities Act.
Because
Selling Stockholders may be deemed to be “underwriters” within the meaning of
the Securities Act, they will be subject to the prospectus delivery requirements
of the Securities Act. In addition, any securities covered by this prospectus
which qualify for sale pursuant to Rule 144 under the Securities Act may be
sold
under Rule 144 rather than under this prospectus. Each Selling Stockholder
has
advised us that they have not entered into any agreements, understandings or
arrangements with any underwriter or broker-dealer regarding the sale of the
resale shares. There is no underwriter or coordinating broker acting in
connection with the proposed sale of the resale shares by the Selling
Stockholders.
We
agreed
to keep this prospectus effective until the earlier of
(i) |
the
date on which the shares may be resold by the Selling Stockholders
without
registration and without regard to any volume limitations by reason
of
Rule 144(k) under the Securities Act or any other rule of similar
effect
or
|
(ii) |
all
of the shares have been sold pursuant to the prospectus or Rule 144
under
the Securities Act or any other rule of similar effect. The resale
shares
will be sold only through registered or licensed brokers or dealers
if
required under applicable state securities laws. In addition, in
certain
states, the resale shares may not be sold unless they have been registered
or qualified for sale in the applicable state or an exemption from
the
registration or qualification requirement is available and is complied
with.
|
Under
applicable rules and regulations under the Exchange Act, any person engaged
in
the distribution of the resale shares may not simultaneously engage in market
making activities with respect to our common stock for a period of two business
days prior to the commencement of the distribution. In addition, the Selling
Stockholders will be subject to applicable provisions of the Exchange Act and
the rules and regulations thereunder, including Regulation M, which may limit
the timing of purchases and sales of shares of our common stock by the Selling
Stockholders or any other person. We will make copies of this prospectus
available to the Selling Stockholders and have informed them of the need to
deliver a copy of this prospectus to each purchaser at or prior to the time
of
the sale.
-14-
ANNEX
B
SELLING
SECURITYHOLDER NOTICE AND QUESTIONNAIRE
The
undersigned beneficial owner of common stock, (the “Common Stock”), of Plastinum
Polymer Technologies Corp., a Delaware corporation(the “Company”), (the
“Registrable Securities”) understands that the Company has filed or intends to
file with the Securities and Exchange Commission (the “Commission”) a
registration statement (the “Registration Statement”) for the registration and
resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Registrable Securities, in accordance with the terms of the
Registration Rights Agreement, dated as of November 6, 2007 (the “Registration
Rights Agreement”), among the Company and the Purchasers named therein. A copy
of the Registration Rights Agreement is available from the Company upon request
at the address set forth below. All capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Registration Rights
Agreement.
Certain
legal consequences arise from being named as a selling securityholder in the
Registration Statement and the related prospectus. Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Registration Statement and the related
prospectus.
NOTICE
The
undersigned beneficial owner (the “Selling Securityholder”) of Registrable
Securities hereby elects to include the Registrable Securities owned by it
and
listed below in Item 3 (unless otherwise specified under such Item 3) in the
Registration Statement.
QUESTIONNAIRE
-15-
The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate:
1. Name.
(a)
|
Full
Legal Name of Selling
Securityholder
|
(b)
|
Full
Legal Name of Registered Holder (if not the same as (a) above) through
which Registrable Securities Listed in Item 3 below are
held:
|
(c)
|
Full
Legal Name of Natural Control Person (which means a natural person
who
directly you indirectly alone or with others has power to vote or
dispose
of the securities covered by the
questionnaire):
|
2. Address
for Notices to Selling Securityholder:
Telephone:
Fax:
Contact
Person:
3. Beneficial
Ownership of Registrable Securities:
(a) Type
and
Number of Registrable Securities beneficially owned:
4. Broker-Dealer
Status:
(a) Are
you a
broker-dealer? Yes … No …
Note: If
yes,
the Commission’s staff has indicated that you should be identified as an
underwriter in the Registration Statement.
-16-
(b) Are
you
an affiliate of a broker-dealer? Yes … No …
(c) |
If
you are an affiliate of a broker-dealer, do you certify that you
bought
the Registrable Securities in the ordinary course of business, and
at the
time of the purchase of the Registrable Securities to be resold,
you had
no agreements or understandings, directly or indirectly, with any
person
to distribute the Registrable
Securities?
|
Yes … No …
5. Beneficial
Ownership of Other Securities of the Company Owned by the Selling
Securityholder.
Except
as
set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable
Securities listed above in Item 3.
(a) Type
and
Amount of Other Securities beneficially owned by the Selling
Securityholder:
6. Relationship
with the Company:
Except
as
set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity
securities of the undersigned) has held any position or office or has had any
other material relationship with the Company (or its predecessors or affiliates)
during the past three years.
State
any
exceptions here:
The
undersigned agrees to promptly notify the Company of any inaccuracies or changes
in the information provided herein that may occur subsequent to the date hereof
at any time while the Registration Statement remains effective.
-17-
By
signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to Items 1 through 6 and the inclusion of such
information in the Registration Statement and the related prospectus. The
undersigned understands that such information will be relied upon by the Company
in connection with the preparation or amendment of the Registration Statement
and the related prospectus.
IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
and Questionnaire to be executed and delivered either in person or by its duly
authorized agent.
Dated:
________________ Beneficial
Owner:
By:
Name:
Title:
PLEASE
FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND
RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:
000
Xxxx
Xxxxxx, 00xx
Xxxxx
Xxx
Xxxx,
XX 00000
XXX
Tel:
+ 0
000 000 00 00
Cell:
+
00 00 000 00 00
Fax:
+ 00
00 000 00 00
-18-