REGISTRATION RIGHTS AGREEMENT
Registration Rights Agreement (the “Agreement”), dated as of April 22, 2014, by and
between RADTEK, INC, a corporation organized under the laws of Nevada, USA (the
“Company”), and Dutchess Opportunity Fund, II, LP, a Delaware Limited Partnership (the
“Investor”).
Whereas, in connection with the Investment Agreement by and between the Company
and the Investor of this date (the “Investment Agreement”), the Company has agreed to issue
and sell to the Investor up to 40,000,000 shares of the Company’s Common Stock, $0.001 par
value per share (the “Common Stock”), to be purchased pursuant to the terms and subject to
the conditions set forth in the Investment Agreement; and
Whereas, to induce the Investor to execute and deliver the Investment 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 “1933 Act”), and applicable state securities laws, with respect to the shares of
Common Stock issuable pursuant to the Investment Agreement.
Now therefore, in consideration of the foregoing promises and the mutual covenants
contained hereinafter and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and the Investor hereby agree as follows:
Section 1.
DEFINITIONS.
As used in this Agreement, the following terms shall have the following meanings:
“Execution Date” means the date of this Agreement set forth above.
“Person” means a 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.
“Principal Market” shall mean Nasdaq Capital Market, the NYSE Amex, the New York
Stock Exchange, the Nasdaq Global Market, the Nasdaq Global Select Market, OTC Bulletin
Board or OTCQB, whichever is the principal market on which the Common Stock of the
Company is listed.
“Register,” “Registered,” and “Registration” refer to the Registration effected by
preparing and filing one (1) or more Registration Statements in compliance with the 1933 Act
and pursuant to Rule 415 under the 1933 Act or any successor rule providing for 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”).
“Registrable Securities” means (i) the shares of Common Stock issued or issuable
pursuant to the Investment Agreement, and (ii) any shares of capital stock issued or issuable
with respect to such shares of Common Stock, if any, as a result of any stock split, stock
dividend, recapitalization, exchange or similar event or otherwise, which have not been (x)
included in the Registration Statement that has been declared effective by the SEC, or (y) sold
under circumstances meeting all of the applicable conditions of Rule 144 (or any similar
provision then in force) under the 1933 Act.
“Registration Statement” means the registration statement or statements of the
Company filed under the 1933 Act covering the Registrable Securities.
All capitalized terms used in this Agreement and not otherwise defined herein shall have
the same meaning ascribed to them as in the Investment Agreement.
Section 2.
REGISTRATION.
(a)
Subject to Section 3(g), the Company shall, within twenty-one (21) days after the
date of this Agreement, file with the SEC the Registration Statement or Registration Statements
(as is necessary) on Form S-1 (or, if such form is unavailable for such a registration, on such
other form as is available for such registration), covering the resale of all of the Registrable
Securities, which Registration Statement(s) shall state that, in accordance with Rule 416
promulgated under the 1933 Act, such Registration Statement also covers such indeterminate
number of additional shares of Common Stock as may become issuable upon stock splits, stock
dividends or similar transactions. The Company shall initially register for resale up to
40,000,000 shares of Common Stock, except to the extent that the SEC requires the share
amount to be reduced as a condition of effectiveness.
(b)
Intentionally Omitted.
(c)
The Company agrees not to include any other securities in the Registration
Statement covering the Registrable Securities without the Investor’s prior written consent which
the Investor may withhold in its sole discretion. Furthermore, the Company agrees that it will not
file any other Registration Statement for other securities, until thirty calendar days after the
Registration Statement for the Registrable Securities is declared effective by the SEC.
Section 3.
RELATED OBLIGATIONS.
At such time as the Company is obligated to prepare and file the Registration Statement
with the SEC pursuant to Section 2(a), the Company shall have the following obligations with
respect to the Registration Statement:
(a)
The Company shall use all commercially reasonable efforts to cause such
Registration Statement relating to the Registrable Securities to become effective within ninety
(90) days after the date that the Registration Statement is filed and shall keep such Registration
Statement effective until the earlier to occur of the date on which (A) the Investor shall have
sold all the Registrable Securities; or (B) the Company has no right to sell any additional shares
of Common Stock under the Investment Agreement (the “Registration Period”).
The
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. The Company shall use all
commercially reasonable efforts to respond to all SEC comments within ten (10) business days
from receipt of such comments by the Company. The Company shall use all commercially
reasonable efforts to cause the Registration Statement relating to the Registrable Securities to
become effective no later than five (5) business days after notice from the SEC that the
Registration Statement may be declared effective. The Investor agrees to provide all
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information which it is required by law to provide to the Company, including the intended method
of disposition of the Registrable Securities, and the Company’s obligations set forth above shall
be conditioned on the receipt of such information.
(b)
The Company shall prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to the 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 1933 Act, as may be necessary to keep such Registration
Statement effective during the Registration Period, and, during such period, comply with the
provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the
Company covered by such 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 Investor thereof as set forth in such Registration Statement. In the event the number of
shares of Common Stock covered by the Registration Statement filed pursuant to this
Agreement is at any time insufficient to cover all of the Registrable Securities, the Company
shall amend such Registration Statement, or file a new Registration Statement (on the short
form available therefor, if applicable), or both, so as to cover all of the Registrable Securities, in
each case, as soon as practicable, but in any event within fifty (50) calendar days after the
necessity therefor arises (based on the then Purchase Price of the Common Stock and other
relevant factors on which the Company reasonably elects to rely), assuming the Company has
sufficient authorized shares at that time, and if it does not, within fifty (50) calendar days after
such shares are authorized. The Company shall use commercially reasonable efforts to cause
such amendment and/or new Registration Statement to become effective as soon as practicable
following the filing thereof.
(c)
The Company shall make available to the Investor whose Registrable Securities
are included in any Registration Statement and its legal counsel without charge (i) if requested
by the Investor, promptly after the same is prepared and filed with the SEC at least one (1) copy
of such Registration Statement and any amendment(s) thereto, including financial statements
and schedules, all documents incorporated therein by reference and all exhibits, the prospectus
included in such Registration Statement (including each preliminary prospectus) and, with
regards to such Registration Statement(s), any correspondence by or on behalf of the Company
to the SEC or the staff of the SEC and any correspondence from the SEC or the staff of the
SEC to the Company or its representatives; and (ii) upon the effectiveness of any Registration
Statement, the Company shall make available copies of the prospectus, via XXXXX, included in
such Registration Statement and all amendments and supplements thereto.
(d)
The Company shall use commercially reasonable efforts to (i) register and qualify
the Registrable Securities covered by the Registration Statement under such other securities or
“blue sky” laws of such states 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 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 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), or (y) subject itself to general taxation 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
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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)
As promptly as practicable after becoming aware of such event, the Company
shall notify the Investor in writing of the happening of any event as a result of which the
prospectus included in the Registration Statement, as then in effect, includes an untrue
statement of a material fact or omission 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 (“Registration Default”) and use all diligent efforts to promptly prepare a
supplement or amendment to such Registration Statement and take any other necessary steps
to cure the Registration Default (which, if such Registration Statement is on Form S-3, may
consist of a document to be filed by the Company with the SEC pursuant to Section 13(a),
13(c), 14 or 15(d) of the 1934 Act (as defined below) and to be incorporated by reference in the
prospectus) to correct such untrue statement or omission, and make available copies of such
supplement or amendment to the Investor. The Company shall also promptly notify the Investor
(i) when a prospectus or any prospectus supplement or post-effective amendment has been
filed, and when the Registration Statement or any post-effective amendment has become
effective; (ii) of any request by the SEC for amendments or supplements to the Registration
Statement or related prospectus or related information, (iii) of the Company’s reasonable
determination that a post-effective amendment to the Registration Statement would be
appropriate, (iv) in the event the Registration Statement is no longer effective, or (v) if the
Registration Statement is stale as a result of the Company’s failure to timely file its financials or
otherwise. If a Registration Default occurs during the period commencing on the Put Notice
Date and ending on the Closing Date, the Company acknowledges that its failure to cure such a
Registration Default within ten (10) business days will cause the Investor to suffer damages in
an amount that will be difficult to ascertain.
(f)
The Company shall use all commercially reasonable efforts to prevent the
issuance of any stop order or other suspension of effectiveness of the Registration Statement,
or the suspension of the qualification of any of the 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 holding Registrable
Securities being sold of the issuance of such order and the resolution thereof or its receipt of
actual notice of the initiation or threat of any proceeding concerning the effectiveness of the
Registration Statement.
(g)
The Company shall permit the Investor and one (1) legal counsel, designated by
the Investor, to review and comment upon the Registration Statement and all amendments and
supplements thereto at least one (1) calendar day prior to their filing with the SEC. However,
any postponement of a filing of a Registration Statement or any postponement of a request for
acceleration or any postponement of the effective date or effectiveness of a Registration
Statement by written request of the Investor (collectively, the "Investor's Delay") shall not act to
trigger any penalty of any kind, or any cash amount due or any in-kind amount due the Investor
from the Company under any and all agreements of any nature or kind between the Company
and the Investor. The event(s) of an Investor's Delay shall act to suspend all obligations of any
kind or nature of the Company under any and all agreements of any nature or kind between the
Company and the Investor.
(h)
Intentionally Omitted.
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(i)
The Company shall hold in confidence and not make any disclosure of
information concerning the Investor unless (i) disclosure of such information is necessary to
comply with federal or state securities laws, (ii) the disclosure of such information is necessary
to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other final, non-appealable order from a
court or governmental body of competent jurisdiction, (iv) such information has been made
generally available to the public other than by disclosure in violation of this Agreement or any
other agreement, or (v) the Investor has consented to such disclosure. The Company agrees
that it shall, upon learning that disclosure of such information concerning the Investor is sought
in or by a court or governmental body of competent jurisdiction or through other means, give
prompt written notice to the Investor and allow the Investor, at the Investor’s expense, to
undertake appropriate action to prevent disclosure of, or to obtain a protective order covering
such information.
(j)
The Company shall use all commercially reasonable efforts to maintain
designation and quotation of all the Registrable Securities covered by any Registration
Statement on the Principal Market. The Company shall pay all fees and expenses in connection
with satisfying its obligation under this Section 3(j).
(k)
Intentionally Omitted.
(l)
The Company shall provide a transfer agent for all the Registrable Securities not
later than the effective date of the first Registration Statement filed pursuant hereto.
(m)
If requested by the Investor, the Company shall (i) as soon as reasonably
practical incorporate in a prospectus supplement or post-effective amendment such information
as the Investor reasonably determines should be included therein relating to the sale and
distribution of Registrable Securities, including, without limitation, information with respect to the
offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of
such prospectus supplement or post-effective amendment as soon as reasonably possible after
being notified of the matters to be incorporated in such prospectus supplement or post-effective
amendment; and (iii) supplement or make amendments to any Registration Statement if
reasonably requested by the Investor.
(n)
The Company shall use all commercially reasonable efforts to cause the
Registrable Securities covered by the applicable Registration Statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary to facilitate
the disposition of such Registrable Securities.
(o)
The Company shall otherwise use all commercially reasonable efforts to comply
with all applicable rules and regulations of the SEC in connection with any registration
hereunder.
(p)
Within one (1) business day after the Registration Statement which includes
Registrable Securities is declared effective by the SEC, the Company shall deliver to the
transfer agent for such Registrable Securities, with copies to the Investor, a written notification
that such Registration Statement has been declared effective by the SEC.
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Section 4.
OBLIGATIONS OF THE INVESTOR.
(a)
At least five (5) calendar days prior to the first anticipated filing date of the
Registration Statement the Company shall notify the Investor in writing of the information the
Company requires from the Investor for the Registration Statement. It shall be a condition
precedent to the obligations of the Company to complete the registration pursuant to this
Agreement with respect to the Registrable Securities and the Investor agrees to furnish to the
Company that information regarding itself, the Registrable Securities and the intended method
of disposition of the Registrable Securities as shall reasonably be required to effect the
registration of the resale of such Registrable Securities and the Investor shall execute such
documents in connection with such registration as the Company may reasonably request. The
Investor covenants and agrees that, in connection with any sale of Registrable Securities by it
pursuant to the Registration Statement, it shall comply with the “Plan of Distribution” section of
the then current prospectus relating to such Registration Statement.
(b)
The Investor, by its acceptance of the Registrable Securities, 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 written 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),
the Investor will immediately discontinue disposition of Registrable Securities pursuant to any
Registration Statement(s) covering the resale of such Registrable Securities until the Investor’s
receipt of the copies of the supplemented or amended prospectus contemplated by Section 3(f)
or the first sentence of Section 3(e).
Section 5.
EXPENSES OF REGISTRATION.
All reasonable expenses, other than underwriting discounts and commissions and other
than as set forth in the Investment Agreement, incurred in connection with registrations
including comments, filings or qualifications pursuant to Section 2 and Section 3, including,
without limitation, all registration, listing and qualifications fees, printing and accounting fees,
and fees and disbursements of counsel for the Company shall be paid by the Company.
Section 6.
INDEMNIFICATION.
In the event any Registrable Securities are included in the Registration Statement under
this Agreement:
(a)
To the fullest extent permitted by law, the Company, under this Agreement, will,
and hereby does, indemnify, hold harmless and defend the Investor, the directors, officers,
partners, employees, counsel, agents, representatives of, and each Person, if any, who
controls, the Investor within the meaning of the 1933 Act or the Securities Exchange Act of
1934, as amended (the “1934 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 party 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
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respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue
statement of a material fact in the 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 the Investor has requested in
writing that the Company register or qualify the Shares (“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, in light of the circumstances under which the statements therein were made,
not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained
in the final prospectus for the offer of the Registrable Securities (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, or (iii) any violation or alleged violation by the Company of the 1933 Act,
the 1934 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 the
Registration Statement (the matters in the foregoing clauses (i) through (iii) being, collectively,
“Violations”). Subject to the restrictions set forth in Section 6(c) 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 arising out of or based upon a Violation which is due to the inclusion in the Registration
Statement of the information furnished to the Company by any Indemnified Person expressly for
use in connection with the preparation of the Registration Statement or any such amendment
thereof or supplement thereto; (ii) shall not be available to the extent such Claim is based on (A)
a failure of the Investor to deliver or to cause to be delivered the prospectus made available by
the Company; (B) the Indemnified Person’s use of an incorrect prospectus despite being
promptly advised in advance by the Company in writing not to use such incorrect prospectus;
(C) the manner of sale of the Registrable Securities by the Investor or of the Investor’s failure to
register as a dealer under applicable securities laws; (D) any omission of the Investor to notify
the Company of any material fact that should be stated in the Registration Statement or
prospectus relating to the Investor or the manner of sale; and (E) any 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 resale of the Registrable Securities by the Investor pursuant to the
Registration Statement; and (iii) shall not be available to the extent the Claim arises out of the
gross negligence or willful misconduct of the Indemnified Person.
(b)
In connection with any Registration Statement in which the Investor is
participating, the Investor agrees to severally and jointly indemnify, hold harmless and defend,
to the same extent and in the same manner as is set forth in Section 6(a), the Company, each
of its directors, officers, employees, counsel, agents and representatives and each Person, if
any, who controls the Company within the meaning of the 1933 Act or the 1934 Act (each, an
“Indemnified Party”), against any Claim or Indemnified Damages to which any of them may
become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or
Indemnified Damages arise out of or are based upon any Violation, in each case to the extent,
and only to the extent, that such Violation is due to (i) the inclusion in the Registration Statement
of the written information furnished to the Company by the Investor expressly for use in
connection with such Registration Statement; (ii) a failure of the Investor to deliver or to cause to
be delivered the prospectus made available by the Company or the Investor’s use of an
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incorrect prospectus despite being timely advised by the Company in writing not to use such
incorrect prospectus; (iii) the Investor’s failure to register as a dealer under applicable securities
laws; (iv) the Investor’s gross negligence or willful misconduct; or (v) any omission of the
Investor to notify the Company of any material fact that should be stated in the Registration
Statement or prospectus relating to the Investor or the manner of sale; and, subject to Section
6(c), the Investor will reimburse any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such Claim; provided, however, that the
indemnity agreement contained in this Section 6(b) and the agreement with respect to
contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if
such settlement is effected without the prior written consent of the Investor, 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 such Indemnified Party and shall survive the resale of
the Registrable Securities by the Investor pursuant to the Registration Statement.
(c)
Promptly after receipt by an Indemnified Person or Indemnified Party 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 or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this
Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and
the indemnifying party shall have the right to participate in, and, to the extent the indemnifying
party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the
Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an
Indemnified Person or Indemnified Party, as the case may be, shall have the right to retain its
own counsel with the fees and expenses to be paid by the indemnifying party, if, in the
reasonable opinion of counsel retained by the Indemnified Person or Indemnified Party, the
representation by counsel of the Indemnified Person or Indemnified Party and the indemnifying
party would be inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such counsel in
such proceeding. The indemnifying party shall pay for only one (1) separate legal counsel for
the Indemnified Persons or the Indemnified Parties, as applicable, and such counsel shall be
selected by the Investor, if the Investor is entitled to indemnification hereunder, or the Company,
if the Company is entitled to indemnification hereunder, as applicable. The Indemnified Party or
Indemnified Person shall cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to
the indemnifying party all information reasonably available to the Indemnified Party or
Indemnified Person which relates to such action or Claim. The indemnifying party shall keep
the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the
defense or any settlement negotiations with respect thereto. No indemnifying party shall be
liable for any settlement of any action, claim or proceeding affected without its written consent;
provided, however, that the indemnifying party shall not unreasonably withhold, delay or
condition its consent. No indemnifying party shall, without the consent of the Indemnified Party
or 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 Party or Indemnified Person of a release from all liability in
respect to such Claim. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnified Party or 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 indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such indemnifying
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party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except
to the extent that the indemnifying party is prejudiced in its ability to defend such action.
(d)
The indemnity agreements contained herein shall be in addition to (i) any cause
of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying
party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the
law.
Section 7.
CONTRIBUTION.
To the extent any indemnification by an indemnifying party is prohibited or limited by law,
the indemnifying party 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 contribution shall be made under circumstances where the maker
would not have been liable for indemnification under the fault standards set forth in Section 6;
(ii) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the 0000 Xxx) shall be entitled to contribution from any seller of Registrable
Securities who was not guilty of fraudulent misrepresentation; and (iii) 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.
Section 8.
REPORTS UNDER THE 1934 ACT.
With a view to making available to the Investor the benefits of Rule 144 promulgated
under the 1933 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”),
provided that the Investor holds any Registrable Securities which are eligible for resale under
Rule 144 and such information is necessary in order for the Investor to sell such Securities
pursuant to Rule 144, the Company agrees to:
(a)
make and keep public information available, as those terms are 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 1933 Act and the 1934 Act so long as the Company remains subject to
such requirements (it being understood that nothing herein shall limit the Company’s obligations
under Section 5(c) of the Investment Agreement) and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and
(c)
furnish to the Investor, promptly upon request, (i) a written statement by the
Company that it has complied with the reporting requirements of Rule 144, the 1933 Act and the
1934 Act applicable to the Company, (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.
Section 9.
NO ASSIGNMENT OF REGISTRATION RIGHTS.
This Agreement and the rights, agreements or obligations hereunder may not be
assigned, by operation of law, merger or otherwise, and without the prior written consent of the
other party hereto, and any purported assignment by a party without prior written consent of the
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other party will be null and void and not binding on such other party. Subject to the preceding
sentence, all of the terms, agreements, covenants, representations, warranties and conditions
of this Agreement are binding upon, and inure to the benefit of and are enforceable by, the
parties and their respective successors and assigns.
Section 10. AMENDMENT OF REGISTRATION RIGHTS.
The provisions of this Agreement may be amended only with the written consent of the
Company and the Investor.
Section 11. MISCELLANEOUS.
(a)
Any notices 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 facsimile or email with the
signed document attached in PDF format (provided a confirmation of transmission is
mechanically or electronically generated and kept on file by the sending party); or (iii) one (1)
day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such
communications shall be:
If to the Company:
0000 Xxxxxxxxx Xxxxxx Xx.
Xxxxx 0000, c/o PEG
Xxxxxxxxxx, XX 00000
Telephone: (000) 000-0000
If to the Investor:
Dutchess Opportunity Fund, II, LP
00 Xxxxxxxxxxxx Xxx, Xxxxx 0
Xxxxxx, XX 00000
Telephone: (000) 000-0000
Each party shall provide five (5) business days prior notice to the other party of any
change in address, phone number, facsimile number or e-mail address.
(b)
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.
(c)
This Agreement and the Investment 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.
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(d)
This Agreement and the Investment Agreement supersede all prior agreements
and understandings among the parties hereto with respect to the subject matter hereof and
thereof.
(e)
The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof. Whenever required by the context of this
Agreement, the singular shall include the plural and masculine shall include the feminine. This
Agreement shall not be construed as if it had been prepared by one of the parties, but rather as
if all the parties had prepared the same.
(f)
This Agreement may be executed in two or more 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 delivery of a PDF format of a copy of this Agreement bearing
the signature of the party so delivering this Agreement.
(g)
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.
(h)
In case any provision of this Agreement is held by a court of competent
jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall
be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent
possible, and the validity and enforceability of the remaining provisions of this Agreement will
not in any way be affected or impaired thereby.
Section 12. DISPUTES SUBJECT TO ARBITRATION GOVERNED BY MASSACHUSETTS
LAW.
All disputes arising under this agreement shall be governed by and interpreted in
accordance with the laws of the Commonwealth of Massachusetts, without regard to principles
of conflict of laws. The parties to this agreement will submit all disputes arising under this
agreement to arbitration in Boston, Massachusetts before a single arbitrator of the American
Arbitration Association (“AAA”). The arbitrator shall be selected by application of the rules of the
AAA, or by mutual agreement of the parties, except that such arbitrator shall be an attorney
admitted to practice law in the Commonwealth of Massachusetts. No party to this agreement
will challenge the jurisdiction or venue provisions as provided in this section. Nothing contained
herein shall prevent the party from obtaining an injunction.
*.*.*
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SIGNATURE PAGE OF REGISTRATION RIGHTS AGREEMENT
Your signature on this Signature Page evidences your agreement to be bound by the
terms and conditions of the Investment Agreement and the Registration Rights Agreement as of
the date first written above.
The undersigned signatory hereby certifies that he has read and understands the
Registration Rights Agreement, and the representations made by the undersigned in this
Registration Rights Agreement are true and accurate, and agrees to be bound by its terms.
DUTCHESS OPPORTUNITY FUND, II, LP,
By:
Xxxxxxx X. Xxxxxxxx
Managing Member of:
Dutchess Capital Management, II, LLC
General Partner to:
Dutchess Opportunity Fund, II, LP
By:
______
Xxxxx Xxxx Xxx
President
Signature Page to Registration Rights Agreement