REGISTRATION RIGHTSAGREEMENT
REGISTRATIONRIGHTSAGREEMENT(this"Agreement"),datedasofSeptember 20,2012, byandbetweenNYXIO TECHNOLOGIESCORP.,a Nevadacorporation(the"Company"),andCONTINENTAL EQUITIESLLC.,aNewYorklimitedliabilitycompany(“Continental”or the“Buyer”).
WHEREAS:
A.Inconnection with theSecuritiesPurchase Agreement byandamong theparties heretoofeven dateherewith(the"SecuritiesPurchaseAgreement"),theCompany hasagreed, uponthetermsandsubjecttotheconditionscontainedtherein,toissueandselltotheBuyerthe following(aseachcapitalizedtermnototherwisedefinedhereinshallhavethemeaningascribed toitin the Securities PurchaseAgreement):
(i) Convertible Note of the Company (the“Note”) issued pursuant to theSecuritiesPurchaseAgreement, and
(ii)where theNoteisconvertibleintosharesoftheCompany'scommonstock,parvalue$0.001per share(the"Common Stock"), uponthe termsandsubjecttothe limitationsandconditions set forth inthe Noteand subject to the termsandconditions of theSecuritiesPurchaseAgreement;and
B.Toinduce theBuyertoexecuteanddelivertheSecurities PurchaseAgreement,the Company hasagreed to providecertainregistration rights undertheSecurities Act of1933,asamended,andtherulesand regulations thereunder,orany similarsuccessorstatute(collectively, the"1933Act"),andapplicable statesecurities laws;
NOW,THEREFORE,Inconsiderationof thepremisesandthemutualcovenantscontained hereinand othergoodand valuableconsideration, thereceiptand sufficiency ofwhichareherebyacknowledged, the Companyand theBuyer herebyagreeas follows:
1. DEFINITIONS.
a. As used in thisAgreement, the following terms shall have thefollowing meanings:
(i)"BUYER" meansContinental Equities,LLC.,andany transfereeorassigneewhoagrees tobecomeboundby theprovisions ofthis Agreement inaccordancewithSection 9 hereof.
(ii)“FILINGDEADLINE,” for agivenRegistrationstatement,shallmeanthe date thatis thirty(30) daysafterthedate oftherequest for suchregistration.
(iii)“REGISTRATIONDEADLINE”shallmean thedatethatis onehundred ninety(190) daysafter thedate of therequestforwhich such registration is beingeffected.
(iv) RESERVED.
(v)"REGISTER,""REGISTERED,"and"REGISTRATION" refertoa registrationeffected by preparingand filing a RegistrationStatement orStatements incompliancewiththe1933 Act and pursuantto Rule 415 underthe 1933Act oranysuccessorrule providing forofferingsecuritiesonacontinuousbasis("RULE415"),andthedeclarationor orderingofeffectiveness ofsuchRegistrationStatementby theUnitedStatesSecuritiesand ExchangeCommission (the"SEC").
(vi)"REGISTRABLESECURITIES," foragiven Registration, means(a)the shares of CommonStock (the“ConversionShares”) issued or issuableupon fullconversionof theNoteorotherwisepursuanttotheNote forwhichsuchRegistrationisbeingeffected(including, withoutlimitation,any shares issued orissuableas“PaymentShares”orotherwise pursuant to theSecuritiesPurchaseAgreement),and(b)any shares ofcapital stock issued or issuableas a dividendon or inexchange for or otherwise with respect toanyof the foregoing,and (c)anyothershares ofcommonstockissued pursuanttothetermsofthe SecuritiesPurchase Agreement,theNote,thethisRegistrationRightsAgreementoranyotherTransactionDocument (as defined in theSecuritiesPurchaseAgreement),and(d)any securities issued orissuableuponany stocksplit,dividend orotherdistribution,recapitalizationorsimilareventwithrespecttothe foregoing.
(vii)"REGISTRATIONSTATEMENT(S)" meansaregistrationstatement(s) ofthe Companyunder the1933 Act.
b.Capitalizedtermsused hereinandnototherwisedefinedhereinshallhave the respectivemeanings setforthin the Securities PurchaseAgreement.
2. REGISTRATION.
a.MANDATORY REGISTRATION.Following the Closing ofthe Note pursuanttotheSecuritiesPurchaseAgreement,theCompanyupontherequestof theBuyershall prepare,and,onorpriortotheapplicableFiling Deadline(asdefinedabove)filewiththe SECa Registration StatementonFormS-1(or,ifFormS-1isnotthenavailable, onsuch formof Registration Statement asisthenavailabletoeffectaregistrationoftheRegistrableSecurities, subject to theconsent oftheBuyer,whichconsent will not beunreasonably withheld)covering theresaleoftheRegistrable SecuritieswhichRegistrationStatement,to theextentallowable underthe1933Actand therulesandregulationspromulgatedthereunder(including Rule416), shallstate thatsuch Registration Statementalso covers such indeterminatenumber ofadditional shares of CommonStockas maybecome issuable uponconversion ofor otherwise pursuant to theNotetopreventdilutionresulting fromstocksplits,stockdividendsorsimilartransactions. The number of shares of CommonStock initiallyincluded in such RegistrationStatement shall benolessthantwo(2)timestheaggregatenumberofConversionSharesthatare thenissuable uponconversion of the Note or otherwise pursuant to the Note (basedon the ConversionPrice[as definedin the Note]thenineffect),without regardtoany limitation ontheBuyer'sability toconvert the Note. The Companyacknowledges that the number of shares initially included ineachRegistrationStatementrepresentsagoodfaithestimateofthemaximumnumber ofshares issuableuponconversionof theNote or otherwisepursuanttotheNoteandshallbeamendedif not sufficient.Each RegistrationStatement (andeachamendment or supplement thereto,andeach requestforaccelerationofeffectivenessthereof) shallbe providedto(andsubjecttotheapprovalof)theBuyeranditscounselpriortoits filingorothersubmission. TheBuyerhasthe rightto request a total oftwo(2)RegistrationStatement be filed under this section.
b.PIGGY-BACK REGISTRATIONS.Ifatanytime prior to theexpiration of the RegistrationPeriod(as hereinafterdefined) theCompanyshalldetermineto filewiththeSEC aRegistrationStatementrelatingtoan offeringforits ownaccount or the account of others under the1933Actofany ofitsequity securities(otherthanonFormS-4orFormS-8ortheirthenequivalentsrelating toequity securitiestobeissuedsolelyinconnectionwithanyacquisitionofanyentity orbusinessorequitysecuritiesissuableinconnectionwith stockoptionorotheremployeebenefit plans),the Company shallsendtoBuyerwritten noticeofsuchdeterminationand,ifwithinfifteen(15)daysaftertheeffective dateofsuch notice,theBuyer shallsorequest in writing, theCompanyshall includein suchRegistrationStatementall oranypart ofthe Registrable SecuritiestheBuyerrequeststobe registered,exceptthatif,inconnectionwithany underwrittenpublicofferingfortheaccountoftheCompany,themanaging underwriter(s) thereofshallimposea limitationonthenumberofshares ofCommonStockwhichmay be includedintheRegistrationStatementbecause,insuchunderwriter(s)' judgment,marketing or otherfactors dictate such limitationisnecessary tofacilitate publicdistribution, then the Company shall be obligatedto include in such RegistrationStatementonlysuch limitedportion of the RegistrableSecurities withrespecttowhichtheBuyer hasrequestedinclusionhereunderas the underwritershallpermit;
PROVIDED,HOWEVER,thattheCompany shallnotexcludeany RegistrableSecuritiesunlesstheCompany hasfirstexcludedall outstandingsecurities, theholders ofwhicharenotentitled bycontract to inclusion ofsuchsecuritiesin suchRegistrationStatement orare not entitled to pro rata inclusion withtheRegistrable Securities;and
PROVIDED,FURTHER,HOWEVER,that,aftergivingeffecttothe immediately precedingproviso,anyexclusionofRegistrableSecuritiesshallbemadeproratawithholdersof othersecuritieshaving thecontractualrighttoincludesuchsecuritiesintheRegistrationStatementother thanholdersof securitiesentitledtoinclusionof theirsecuritiesinsuch RegistrationStatementby reason ofdemandregistrationrights. Norighttoregistrationof RegistrableSecuritiesunderthisSection2(b)shallbeconstrued tolimitanyregistrationrequired underSection2(a)hereof.Ifanoffering inconnectionwithwhichtheBuyerisentitledto registrationunder this Section2(d) isanunderwritten offering,then theBuyer shall,unless otherwiseagreed by theCompany, offerandsell suchRegistrableSecurities inan underwritten offeringusingthesame underwriteror underwritersand,subjecttothe provisionsof this Agreement,onthesame termsandconditionsasother sharesof Common Stockincludedinsuch underwrittenoffering.Notwithstandinganything to thecontraryset forth herein, theregistration rightsoftheBuyerpursuanttothisSection2(b)shallonlybeavailableintheeventtheCompany fails to timelyfile, obtaineffectiveness or maintaineffectiveness ofanyRegistrationStatement to befiled pursuant toSection 2(a) inaccordancewiththeterms of this Agreement.
3. OBLIGATIONS OFTHECOMPANY.Inconnection with theregistration ofthe Registrable Securities, theCompanyshallhavethe followingobligations:
a. TheCompany shallprepare promptly,and filewiththeSECas soonas practicableafterthe requestforregistrationfromtheBuyerundertheSecurities Purchase Agreement(the"CLOSINGDATE")(butnolaterthantheFilingDeadline),RegistrationStatementswithrespecttothe numberof RegistrableSecuritiesprovidedin Section2(a),and thereafter use itsbesteffortstocauseeachsuchRegistration StatementrelatingtoRegistrableSecuritiestobecomeeffectiveas soonas possibleaftersuchfiling, butinanyeventshallcauseeachsuchRegistrationStatementrelating toRegistrable Securitiestobecomeeffectivenolater than the RegistrationDeadline,andshallkeepthe Registration Statementcurrentandeffective pursuanttoRule415atall timesuntilsuch dateasistheearlierof (i) thedateonwhichallof the RegistrableSecuritiesfor such Registration Statementhave beensoldand(ii) the date onwhichalloftheRegistrableSecuritiesforsuchRegistrationStatement(in theopinionofcounselto theBuyer)maybe immediately soldto thepublicwithoutregistration orrestriction (including without limitationas to volumebyeachholderthereof)underthe1933 Act (the"REGISTRATIONPERIOD"),whichRegistrationStatement(includinganyamendments or supplements theretoand prospectusescontained therein) shall notcontainanyuntrue statement ofamaterial fact oromittostateamaterial fact required tobestated therein,ornecessary to makethe statements therein notmisleading.
b. TheCompany shallprepareandfilewiththeSECsuchamendments(including post-effectiveamendments)and supplementstoeach RegistrationStatementsand theprospectus usedin connection withthe RegistrationStatements as maybenecessarytokeepthe RegistrationStatementscurrentandeffectiveatalltimesduring theRegistrationPeriod,and,during such period,comply withtheprovisions ofthe1933 Actwith respecttothedispositionofall RegistrableSecurities oftheCompanycovered bytheRegistrationStatementsuntil suchtimeasall of such Registrable Securitieshavebeendisposedof inaccordance withtheintendedmethods of dispositionby the seller or sellers thereofas set forth in the RegistrationStatements.In theevent that onany Trading Day(as defined intheNote)(the"REGISTRATIONTRIGGER DATE")thenumberofsharesavailable underaRegistrationStatement filedpursuanttothis Agreementisinsufficienttocoverallof theRegistrableSecuritiesissuedor issuable uponconversionoftheNoteorotherwisepursuanttotheNote(basedontheConversion Price[as defined intheNote]then ineffect),and otherwise issuable pursuanttothe Transaction Documents, ineachcasewithoutgivingeffect toany limitations ontheBuyer'ability toconvert theNote,orotherwisereceive sharesof Common Stock pursuanttotheTransactionDocuments, the Companyshallamend the RegistrationStatement, or file a new RegistrationStatement (on theshortformavailable therefore,ifapplicable),or both,soastocover oneandone-half(1.5) times the total numberof RegistrableSecurities so issued or issuable (withoutgivingeffect toany limitationsonconversioncontainedintheNote, limitations onexercisecontained intheWarrantsorlimitationsonconversion orexerciseorotherpaymentofsharescontainedintheSecurities PurchaseAgreement)asof theRegistrationTriggerDate, ineachcase,assoonas practicable,butinanyeventwithintwenty(20) daysafter the RegistrationTriggerDate (based onthe ConversionPricesoftheNote,andotherrelevantfactorsonwhichtheCompany reasonablyelects to rely). The Company shall use its bestefforts tocause suchamendmentand/or newRegistrationStatement to becomeeffective as soonas practicablefollowing thefiling thereof, but inanyevent theCompany shallcausesuchamendmentand/ornewRegistrationStatementto becomeeffectivewithinsixty (60) days oftheRegistrationTriggerDateoras promptlyas practicableinthe eventtheCompanyis required toincreaseits authorized shares.
c. TheCompany shallfurnishtotheBuyeranditslegalcounsel(i)promptlyafter thesameis preparedandpublicly distributed, filed with theSEC, or receivedby theCompany, onecopy ofeach RegistrationStatementandanyamendment thereto,each preliminary prospectusand prospectusandeachamendment or supplement thereto,and, in thecase of the RegistrationStatementreferredtoinSection2(a),eachletterwrittenby oronbehalfofthe Company totheSECorthestaffoftheSEC,andeachitemofcorrespondencefromtheSECor thestaffoftheSEC, ineachcaserelating to suchRegistrationStatement(otherthanany portion ofany thereofwhichcontains information for whichtheCompanyhas soughtconfidential treatment),and(ii)suchnumberofcopiesofa prospectus, includingapreliminary prospectus,andallamendmentsandsupplementstheretoandsuchother documentsastheBuyermay reasonablyrequestinorder tofacilitate thedisposition oftheRegistrable Securities ownedbytheBuyer.TheCompanywillimmediatelynotifytheBuyerby facsimileoftheeffectivenessofeach RegistrationStatement oranypost-effectiveamendment.TheCompanywillpromptlyrespondtoanyandallcomments receivedfrom theSEC, with a view towardscausingeach RegistrationStatement oranyamendment theretotobedeclaredeffectiveby theSECas soonas practicableandshallfilean accelerationrequestassoonaspracticable,butnolaterthanthree(3)business days (the "ACCELERATION REQUEST DEADLINE"), following the resolution orclearance ofallSECcommentsor, ifapplicable,followingnotification by theSECthatany such RegistrationStatement oranyamendmenttheretowillnot be subjectto review.
d. TheCompany shall usereasonableefforts to (i)registerandqualifythe RegistrableSecuritiescovered by theRegistrationStatements under such other securities or"bluesky"lawsofsuchjurisdictionsintheUnitedStatesastheBuyershallrequest,(ii)prepareand fileinthosejurisdictionssuchamendments(including post-effectiveamendments)and supplementsto suchregistrationsandqualificationsasmay benecessary to maintaintheeffectivenessthereofduringthe RegistrationPeriod, (iii) takesuchotheractionsas may be necessary to maintainsuchregistrationsandqualifications ineffectatall timesduringthe RegistrationPeriod,and (iv) takeall otheractions reasonablynecessaryoradvisable to qualify the RegistrableSecuritiesforsalein such jurisdictions;
e. As promptlyas practicableafterbecomingaware of suchevent, the Company shall notifytheBuyerofthehappeningofanyevent, ofwhich theCompanyhas knowledge,as a result ofwhichtheprospectus includedinany RegistrationStatement,as thenineffect, includesan untruestatementof amaterialfactor omits tostateamaterial fact required tobestatedtherein ornecessary to makethestatements therein notmisleading,and useits besteffortspromptly to prepareasupplementoramendment toanyRegistrationStatement tocorrect such untrue statementoromission,anddeliversuchnumber ofcopiesofsuchsupplementoramendmentto theBuyeras theBuyer may reasonably request; provided that, for not more than twenty (20)consecutivedays(ora totalof notmore than sixty(60)days inanytwelve (12) monthperiod), theCompanymaydelaythedisclosureofmaterialnon-publicinformationconcerning the Company(as wellas prospectusorRegistrationStatement updating) thedisclosureofwhichat the time isnot,inthegoodfaithopinionof the Company, inthebestinterestsof the Company (an"ALLOWED DELAY");provided, further,that the Company shallpromptly (i) notify theBuyer in writing of theexistence of (but in noevent, without the prior writtenconsent of theBuyer,shall theCompany discloseto theBuyerany ofthefacts orcircumstancesregarding) material non-public informationgiving rise toan Allowed Delayand (ii)advise theBuyer in writing toceaseallsalesundersuchRegistrationStatementuntil theendoftheAllowedDelay, provided theaboveactionsareconsistentwiththe requirementsof the 1933Actand/or 1934Act orotherapplicablelaw.Uponexpiration oftheAllowedDelay, theCompany shallagainbe boundby the first sentence of thisSection 3(e) with respect to the informationgiving rise thereto.Nothing herein relievestheobligationssetforthintheNoteortheWarrantsrelativetoFailurePayments orpayments of theDefaultAmount pursuantto Events of Default.
f. The Companyshalluse itsbestefforts to prevent theissuance ofanystop order or other suspension ofeffectiveness ofany RegistrationStatement,and, if suchan order is issued, to obtain thewithdrawal ofsuchorderat theearliest possiblemomentand to notify theBuyerwhoholdsRegistrableSecuritiesbeing sold(or,intheeventofan underwrittenoffering, the managingunderwriters)of theissuanceof such orderand theresolution thereof.
g. The Companyshall permit a single firm ofcounsel designated bytheBuyer to review such RegistrationStatementandallamendmentsandsupplementsthereto(aswellasall requestsforaccelerationoreffectivenessthereof),atBuyer’sowncost,a reasonableperiodof time prior to their filing with theSEC (not lessthan three (3) businessdays but not more then five(5)businessdays)and not fileany document in aform towhich suchcounsel reasonably objectsandwillnotrequestaccelerationofsuchRegistration Statementwithoutpriornotice to such counsel.
h. TheCompany shall holdinconfidenceandnotmakeanydisclosureof informationconcerningtheBuyerprovidedto theCompany unless(i)disclosureofsuch information is necessary tocomply with federal or state securities laws, (ii) the disclosure of suchinformation is necessary toavoid orcorrect amisstatement oromissioninany RegistrationStatement,(iii)therelease of suchinformationisorderedpursuanttoasubpoena orotherorder fromacourt orgovernmental body ofcompetent jurisdiction, or(iv)suchinformationhas been madegenerallyavailable tothepublicotherthanby disclosureinviolationofthisorany otheragreement.TheCompanyagreesthatitshall,uponlearning thatdisclosureofsuchinformationconcerningtheBuyeris soughtinorby acourtorgovernmentalbodyofcompetentjurisdiction orthroughothermeans,givepromptnoticeto theBuyerpriortomaking suchdisclosure,andallowtheBuyer,atitsexpense,toundertakeappropriateactiontopreventdisclosure of,orto obtain aprotectiveorderfor, suchinformation.
i. The Company shalluse itsbesteffortsto (i)causeallthe RegistrableSecuritiescoveredby theRegistrationStatement to belistedoneachnational securitiesexchangeon which securitiesof thesameclassorseriesissuedby theCompanyare then listed,ifany,ifthelisting of such RegistrableSecurities isthen permitted under the rulesof suchexchange, or(ii) totheextent the securities of the sameclass or seriesare not then listed on a national securitiesexchange, securethedesignationand quotation, ofall theRegistrableSecuritiescovered by the RegistrationStatement ontheNNMor,ifnoteligiblefor theNNMontheNasdaq SmallCapor, ifnoteligiblefortheNasdaqSmallCap,onthe OvertheCounterelectronicbulletinboardand, without limitingthegenerality oftheforegoing,toarrangeforat least two market makersto registerwithFINRAassuch with respectto such Registrable Securities.
j.TheCompany shallprovideatransferagentand registrar,which maybeasingleentity,for the RegistrableSecuritiesnotlater than theeffective date of the RegistrationStatement.
k. The Companyshallcooperate with theBuyer who holds RegistrableSecurities beingofferedandthemanaging underwriterorunderwriters,ifany,tofacilitatethetimely preparationanddeliveryofcertificates (notbearinganyrestrictivelegends)representing RegistrableSecurities tobe offeredpursuanttosuch Registration Statementandenable suchcertificatestobeinsuchdenominationsoramounts,asthe casemay be,asthemanaging underwriterorunderwriters, ifany, ortheBuyermayreasonablyrequestandregistered in such namesas the managing underwriteror underwriters, ifany, or theBuyer may request,and, withinthree(3)businessdaysafteraRegistrationStatementwhich includesRegistrableSecurities isorderedeffectiveby theSEC, theCompany shalldeliver,and shallcauselegalcounsel selectedby theCompanyto deliver,tothetransferagent fortheRegistrableSecurities (withcopiestotheBuyer)anappropriateinstructionandanopinionofsuchcounselinthe form required by thetransferagentinordertoissuethe RegistrableSecurities freeofrestrictive legends.
l. At the request of theBuyer, the Company shall prepareand file withtheSEC suchamendments(including post-effectiveamendments)andsupplementstoaRegistrationStatementandany prospectus usedinconnection with theRegistrationStatementas maybe necessaryin orderto changetheplan ofdistribution set forthin such RegistrationStatement.
m.TheCompany shall not,andshall notagreeto,allowtheholders ofany securities ofthe Company toincludeany oftheirsecurities inany RegistrationStatement underSection2(a)hereoforanyamendmentorsupplementtheretounderSection3(b)hereofwithout theconsent of theBuyerexcept forsecurities which havecontractual piggyback registration rightsineffectatthetimeoftheClosing (asdefinedinthe SecuritiesPurchaseAgreement).Inaddition, the Companyshall not offerany securities for its ownaccountor theaccount of others in anyRegistrationStatementunder Section 2(a)hereoforanyamendment or supplementthereto under Section 3(b)hereofwithoutthe consent oftheBuyer.
n. The Companyshalltakeall other reasonableactions necessarytoexpediteand facilitate dispositionbytheBuyer ofRegistrable Securities pursuant to aRegistrationStatement.
o.The Company shallcomply withallapplicable laws related to a RegistrationStatementandofferingandsale of securitiesandallapplicable rulesandregulationsofgovernmentalauthoritiesinconnectiontherewith (including withoutlimitationthe1933Actand the 1934Act and the rules and regulations promulgated bythe SEC).
p.Further RegistrationStatements.Except for a registration statement filed on behalfoftheBuyerpursuanttoSection2 ofthis Agreement,anunderwrittenpublicoffering,andexceptassetforthonSchedule3(P)hereto,theCompanywillnotfileany registration statements oramendanyalreadyfiled registration statement, including but not limited toForms S-8, with the Commission or with state regulatoryauthorities without theconsent of theSubscriber until theexpirationof the"Exclusion Period",whichshallbedefinedasthesooner of(i)thedate that the Registration Statementshallhavebeencurrentandavailablefor useinconnectionwiththe resaleof the RegistrableSecurities for a period of 180 days, or (ii) untilall theSharesandWarrantShares havebeenresoldortransferredby theSubscriberspursuant to theRegistrationStatementorareeligibleforimmediate unrestrictedresalepursuanttoRule144,withoutvolume limitations.TheExclusionPeriodwill betolledduringthependencyofanEvent ofDefaultas defined intheNoteoranEvent ofDefaultas defined intheWarrants.
4.OBLIGATIONS OF THE BUYER.Inconnection with the registration of the Registrable Securities, theBuyer shallhavethe followingobligations:
a.It shallbe acondition precedent to theobligationsof theCompany tocomplete theregistration pursuanttothis Agreementwith respectto the RegistrableSecurities oftheBuyer that theBuyershall furnish to theCompany such information regardingitself,theRegistrableSecuritiesheldbyitand theintendedmethodofdispositionoftheRegistrableSecuritiesheldby itasshallbereasonablyrequired toeffecttheregistration ofsuchRegistrableSecuritiesand shallexecute such documents inconnection with such registrationas the Company may reasonably request.Atleastthree(3) businessdayspriortothefirstanticipatedfiling dateofthe RegistrationStatement, the Company shall notifytheBuyerofthe informationthe Company requiresfromeach theBuyer.
b.TheBuyer, by the Buyer'sacceptance of the RegistrableSecurities,agrees tocooperate with the Companyasreasonably requested by the Companyinconnection with the preparationandfilingoftheRegistration Statementshereunder, unlesstheBuyerhasnotifiedthe Company in writingoftheBuyer'selectiontoexcludeall oftheBuyer'sRegistrableSecuritiesfrom the RegistrationStatements.
c.In theevent ofan underwritten offering pursuant toSection 2(b) in whichany RegistrableSecuritiesare tobeincluded,theBuyeragreestoenterintoandperformtheBuyer's obligations underan underwritingagreement, in usualandcustomary form, including, without limitation,customaryindemnificationandcontributionobligations,withthemanaging underwriterofsuchofferingandtakesuchotheractionsasarereasonablyrequiredinordertoexpediteorfacilitatethedispositionof theRegistrableSecurities,unlesstheBuyerhas notified theCompany inwritingoftheBuyer'selection toexcludealloftheBuyer'sRegistrableSecuritiesfrom such RegistrationStatement.
d. TheBuyer agreesthat,uponreceiptofany noticefromtheCompany ofthe happening ofanyevent ofthekinddescribedinSection3(f)or3(g),theBuyerwillimmediately discontinue dispositionof RegistrableSecuritiespursuanttotheRegistration Statementcovering suchRegistrable Securitiesuntil theBuyer'sreceiptofthecopiesofthesupplementedoramendedprospectuscontemplated bySection 3(f) or3(g)and, if so directed by the Company, theBuyer shalldeliverto the Company (attheexpense of the Company)or destroy(anddeliver to theCompany acertificateofdestruction)allcopiesin theBuyer's possession, ofthe prospectus coveringsuchRegistrable Securitiescurrent at the timeofreceiptof such notice.
e. NoBuyer mayparticipate inanyunderwrittenregistrationhereunder unlesstheBuyer(i)agreestoselltheBuyer'sRegistrableSecuritiesonthe basisprovided inany underwritingarrangementsinusualandcustomary formenteredintoby theCompany, (ii)completesandexecutesallquestionnaires,powersofattorney,indemnities,underwritingagreementsandotherdocuments reasonably requiredunderthetermsofsuchunderwritingarrangements,and(iii)agrees to pay its proratashareofall underwriting discountsandcommissionsandanyexpensesinexcess ofthosepayableby theCompanypursuant toSection 5 below.
5. EXPENSESOF REGISTRATION.Allreasonableexpenses,otherthan underwriting discountsandcommissions,incurredinconnectionwithregistrations,filingsor qualificationspursuant toSections2and3,including,withoutlimitation,allregistration,listingandqualificationfees,printersandaccountingfees,thefeesanddisbursementsofcounselforthe Companyshall bebornebythe Company.
6. INDEMNIFICATION.In theeventanyRegistrableSecuritiesare included in a RegistrationStatementunder this Agreement:
a.To theextent permittedbylaw,theCompany willindemnify, holdharmlessand defend(i) theBuyer,(ii)the directors,officers, partners, managers, members,employees,agentsandeach personwhocontrolsanyBuyerwithin themeaningofthe1933 ActortheSecurities ExchangeAct of1934,asamended (the"1934ACT"),ifany, (iii)any underwriter(as defined in the1933Act) fortheBuyerinconnectionwithanunderwritten offeringpursuanttoSection2(b) hereof,and (iv) the directors, officers, partners,employeesandeach person whocontrolsany suchunderwriter withinthemeaning ofthe1933Act orthe1934Act, ifany (each,an "INDEMNIFIEDPERSON"),againstany joint orseveral losses,claims,damages, liabilities orexpenses (collectively,togetherwithactions, proceedings orinquiriesbyanyregulatory orself- regulatoryorganization, whethercommenced or threatened, inrespect thereof,"CLAIMS") to whichany ofthem may becomesubject insofaras suchClaimsariseoutoforarebased upon: (i)any untruestatementorallegeduntruestatementofamaterialfactinaRegistrationStatement or theomissionoralleged omissionto statethereinamaterialfactrequiredto bestated ornecessary to makethestatements therein not misleading; (ii)any untruestatement orallegeduntrue statement ofamaterialfactcontained inany preliminary prospectusif used prior to theeffective date of such Registration Statement,orcontainedin the finalprospectus(asamendedor supplemented,iftheCompany filesanyamendmentthereoforsupplementtheretowiththeSEC) ortheomission oralleged omission to statethereinanymaterialfactnecessary to makethe statementsmade therein,inlightofthecircumstances underwhichthestatementsthereinwere made,notmisleading;or(iii)anyviolationorallegedviolationbytheCompanyofthe1933 Act, the1934 Act,anyotherlaw, including, without limitation,anystatesecurities law, orany ruleor regulationthereunderrelating totheofferorsaleoftheRegistrableSecurities(themattersinthe foregoingclauses (i)through (iii) being,collectively, "VIOLATIONS").Subject to the restrictions set forth inSection 6(c) withrespect to the number of legalcounsel, the Company shallreimbursetheIndemnifiedPerson,promptlyassuchexpensesareincurredandaredueand payable,foranyreasonable legal fees orotherreasonableexpensesincurredby them inconnection with investigating or defendinganysuch Claim.Notwithstandinganything to thecontrarycontainedherein,theindemnificationagreementcontainedinthisSection6(a):(i)shall notapply to a Claimarisingout of orbased upona Violation which occurs in reliance uponand inconformity with information furnished in writingto theCompany byanyIndemnifiedPerson orunderwriterforsuchIndemnifiedPersonexpressly foruseinconnection with thepreparation ofsuchRegistrationStatement orany suchamendment thereoforsupplementthereto;(ii)shall notapply toamounts paid in settlement ofany Claim if suchsettlement iseffectedwithoutthe prior writtenconsentof the Company, whichconsent shall not be unreasonably withheld;and (iii)with respect toany preliminaryprospectus,shall not inureto thebenefit ofanyIndemnifiedPersoniftheuntrue statementoromissionofmaterialfactcontainedinthepreliminary prospectuswascorrectedonatimely basisintheprospectus,asthenamendedorsupplemented, suchcorrectedprospectus was timely madeavailableby theCompany pursuant toSection3(c) hereof,and theIndemnifiedPersonwas promptlyadvisedin writingnot to usetheincorrect prospectuspriortotheusegiving risetoaViolationandsuchIndemnifiedPerson, notwithstanding suchadvice,usedit.Such indemnity shall remainin fullforceandeffect regardless ofany investigation madeby oronbehalfoftheIndemnifiedPersonand shall survive the transfer ofthe Registrable SecuritiesbytheBuyerpursuanttoSection9.
b.[IntentionallyOmitted].
c.Promptlyafter receiptbyanIndemnifiedPersonunderthisSection6ofnoticeof thecommencementofanyaction(includingany governmentalaction),suchIndemnifiedPerson shall, if Claim in respect thereofis to bemadeagainstany theCompanyunderthisSection 6, deliverto theCompanyawrittennoticeofthecommencementthereof,andtheCompany shall have the righttoparticipate in,and,totheextentthe Companysodesires,toassumecontrolof thedefense thereofwithcounsel mutuallysatisfactory totheCompanyand theIndemnifiedPerson,as thecasemaybe.
PROVIDED,HOWEVER,thatanIndemnifiedPersonshallhave therighttoretainits owncounsel with thefeesandexpensesto bepaidby theCompany, if,in thereasonableopinion ofcounsel retained bythe Company, the representationby suchcounsel of theIndemnifiedPersonandtheCompany wouldbeinappropriateduetoactual orpotentialdiffering interests between suchIndemnifiedPersonandany otherpartyrepresentedbysuchcounsel in such proceeding. TheCompany shall payforonlyoneseparatelegalcounsel fortheIndemnifiedPersons,andsuchlegalcounselshallbeselectedbyBuyer,iftheBuyerisentitledto indemnification hereunder.The failuretodeliverwritten noticeto theCompany within a reasonabletimeofthecommencement ofany suchaction shall not relievetheCompany ofany liability totheIndemnifiedPersonunder thisSection6,excepttotheextentthattheCompanyisactuallyprejudicedin itsability to defend suchaction. Theindemnification required by thisSection 6 shall be madebyperiodic payments of theamount thereof during thecourse of the investigation or defense,as suchexpense, loss, damage or liability is incurredand is dueand payable.
d. To theextent permittedbylaw, theBuyerwillindemnify, holdharmlessand defend(i)theCompany,and (ii) thedirectors, officers,partners, managers,members,employees, oragents of the Company, ifany (each, a"COMPANYINDEMNIFIEDPERSON"),againstany jointorseverallosses,claims, damages, liabilities orexpenses (collectively, togetherwithactions, proceedings orinquiriesbyanyregulatoryorself-regulatoryorganization, whethercommencedor threatened, in respect thereof,"CLAIMS") to whichany of them maybecome subject insofaras such Claimsarise out of orare based upon a Claimarising out oforbased uponanyviolationorallegedviolationbytheCompanyofthe1933 Act, the1934Act,anyother law, including, withoutlimitation,any statesecurities law,oranyruleorregulation thereunder relating totheofferorsaleoftheRegistrableSecurities,whichoccursduetotheinclusion bythe Company in aRegistrationStatementoffalseormisleadinginformationabout theBuyer,where suchinformationwasfurnished in writingtotheCompany by theBuyerforthepurposeof inclusion in such RegistrationStatement.
7. CONTRIBUTION.Totheextentany indemnificationbytheCompany is prohibited or limitedby law, the Companyagrees to make the maximumcontribution with respect toanyamounts for which it would otherwise be liable underSection 6 to the fullestextent permittedbylaw.
8.REPORTS UNDER THE 1934 ACT.With a view to makingavailable to theBuyerthe benefitsofRule144promulgatedunderthe1933Actorany othersimilarruleor regulationoftheSEC thatmayatanytimepermittheBuyertosell securitiesoftheCompany to the publicwithout registration ("RULE 144"), theCompanyagrees to:
a. makeand keeppublic informationavailable,asthose termsare understoodand defined inRule 144;
b. filewith theSECin atimelymannerall reportsand otherdocuments required of theCompany underthe1933 Actand the1934Act so longas the Companyremains subject to suchrequirements(itbeingunderstoodthatnothinghereinshalllimitthe Company'sobligations underSection4(c)oftheSecurities PurchaseAgreement)andthefilingof such reportsandother documents is required for the applicableprovisions of Rule 144;and
c.furnishtotheBuyersolongastheBuyerownsRegistrableSecurities,promptly upon request, (i) a written statementby the Company that it hascomplied with the reporting requirementsof Rule144,the1933Actandthe 1934Act, (ii)acopy of themost recentannual orquarterlyreportoftheCompanyandsuchotherreportsanddocuments so filedby the Company,and(iii)such otherinformationasmay bereasonablyrequestedtopermittheBuyers to sell suchsecurities pursuant toRule 144without registration.
9. ASSIGNMENTOFREGISTRATIONRIGHTS.Therightsunder this AgreementshallbeautomaticallyassignablebytheBuyerstoanytransfereeofalloranyportion ofRegistrable Securitiesif:(i)theBuyeragreesinwriting withthetransferee orassigneetoassignsuchrights,andacopyofsuchagreementis furnishedto theCompany withina reasonabletimeaftersuchassignment, (ii)theCompany is,within areasonabletimeaftersuch transferorassignment,furnishedwithwrittennoticeof(a)thenameandaddressofsuch transferee orassignee, and(b) the securitieswithrespecttowhichsuch registrationrightsare beingtransferredorassigned,(iii)followingsuchtransfer orassignment, thefurther disposition ofsuchsecurities by thetransfereeorassigneeis restrictedunder the1933 Actandapplicable statesecurities laws, (iv)atorbeforethetime the Companyreceives thewritten noticecontemplatedbyclause(ii)ofthis sentence,thetransferee orassigneeagrees in writingwith the Company to bebound byall oftheprovisionscontained herein,and (v)such transfershall have been made inaccordance with theapplicable requirements of theSecuritiesPurchase Agreement.Intheevent thattheBuyer transfersall orany portionof itsRegistrableSecurities pursuanttothisSection, theCompany shallhaveatleastten(10)daystofileanyamendmentsor supplements necessaryto keep the RegistrationStatementcurrentandeffective pursuant to Rule 415,and thecommencement dateofany Event ofFailureorEvent ofDefault undertheNoteor theWarrants caused therebywillbe extendedbyten (10) days.
10.AMENDMENT OF REGISTRATIONRIGHTS.ProvisionsofthisAgreement maybeamendedand theobservancethereofmaybewaived(eithergenerallyorin aparticular instance andeitherretroactivelyor prospectively),onlywith writtenconsent of theCompany, theBuyer (to theextent suchBuyer still owns RegistrableSecurities)andBuyers who hold a majority interest oftheRegistrableSecurities.Anyamendment orwaivereffectedinaccordance withthisSection 10 shallbebindingupon theBuyerand the Company.
11.MISCELLANEOUS.
a. Apersonorentityis deemed tobe a holderof RegistrableSecurities whenever suchpersonorentityownsofrecordsuchRegistrableSecurities.If theCompany receivesconflicting instructions, noticesorelectionsfrom twoormorepersonsorentitieswithrespectto thesameRegistrableSecurities,theCompany shallactuponthebasis ofinstructions,noticeorelection receivedfrom theregistered owner ofsuch Registrable Securities.
b. Any notices required or permitted to begiven under the terms hereof shall be sentbycertifiedorregistered mail(returnreceipt requested)or deliveredpersonallyorbycourier (including a recognized overnightdeliveryservice)or byfacsimileand shall beeffective five daysafter being placedinthemail,ifmailed by regularUnitedStatesmail,oruponreceipt,if delivered personally orbycourier(including arecognized overnight deliveryservice)orby facsimile, in eachcase addressed to aparty. Theaddressesforsuchcommunications shall be:
If to theCompany:To the addressset forthimmediatelybelow such Company’snameon the signaturepages hereto.
Withcopy to:
________, Esq.
Telephone:
Facsimile:
If to aBuyer: To the address set forthimmediatelybelow suchBuyer's nameon the signaturepageshereto.
Each partyshallprovidenoticetotheotherpartyof anychangein address.
c.Failureofany party toexerciseany right or remedy under thisAgreement or otherwise,ordelay by aparty inexercisingsuchright orremedy, shall not operateas awaiver thereof.
d. ThisAgreement shallbegoverned byandconstrued inaccordancewith the internallawsoftheStateofNewYork.Anycontroversyorclaimarisingoutoforrelatedtothis Agreement orthebreachthereof,shallbesettled by bindingarbitrationinNewYork, NYinaccordance withthe Expedited Procedures(Rules53-57)of the CommercialArbitrationRulesof theAmericanArbitration Association(“AAA”).A proceedingshallbecommenced uponwritten demandby Companyor theBuyer to the other. Thearbitrator(s) shallenter a judgment by defaultagainstanyparty, whichfails orrefuses toappearinanyproperly noticedarbitration proceeding. Theproceeding shallbeconductedbyone(1)arbitrator,unlesstheamountalleged tobeindisputeexceeds twohundred fifty thousanddollars($250,000), inwhichcasethree(3)arbitrators shall preside. Thearbitrator(s) will bechosenbythe parties from a listprovidedby theAAA,andiftheyareunabletoagreewithinten(10)days,the AAAshallselectthearbitrator(s). Thearbitrators must beexperts in securities lawand financial transactions. Thearbitratorsshallassesscostsandexpensesofthearbitration,includingallattorneys’andexperts’ fees,asthearbitratorsbelieve isappropriateinlightofthemeritsofthe parties’respective positions in theissues in dispute.Eachparty submits irrevocably tothejurisdiction ofanystatecourt sitting in New York, NY or to the UnitedStates District Courtsitting in New York for purposes ofenforcementofany discoveryorder,judgmentorawardinconnection with sucharbitration. Theawardofthearbitrator(s)shallbefinaland bindinguponthepartiesand may beenforced in anycourthavingjurisdiction. Thearbitration shallbeheldin such place asset bythearbitrator(s) inaccordance with Rule 55.With respect toanyarbitration proceeding inaccordancewiththissection,theprevailing party’sreasonableattorney’sfeesandexpensesshall bebornebythe non-prevailingparty.
Althoughtheparties,asexpressedabove,agreethatallclaims,includingclaimsthatareequitablein nature,forexamplespecificperformance, shall initiallybeprosecutedin thebindingarbitrationprocedureoutlinedabove,ifthearbitrationpaneldismisses orotherwisefailstoentertainanyorall oftheequitableclaimsassertedbyreason ofthefact that it lacks jurisdiction, powerand/orauthority toconsidersuchclaimsand/ordirect theremedyrequested,then,in only thatevent,willthepartieshavetherighttoinitiatelitigationrespecting suchequitableclaimsor remedies. Theforumforsuchequitablereliefshallbe ineithera stateor federalcourtsittingin NewYork,NY.Eachpartywaivesanyright to atrial by jury,assuming suchrightexists inanequitableproceeding,andirrevocably submitstothejurisdiction ofsaidNewYorkcourt. New Yorklawshallgovern boththeproceedingaswellasthe interpretationandconstructionofthis Agreementand the transactionas awhole.
e.ThisAgreementandthe SecuritiesPurchaseAgreement(includingallschedulesandexhibitsthereto)constitutetheentireagreementamong thepartiesheretowithrespecttothe subjectmatter hereofandthereof.There arenorestrictions, promises, warranties or undertakings, other thanthosesetforthorreferredtohereinandtherein.ThisAgreementandthe SecuritiesPurchaseAgreementsupersedeallprior agreementsandunderstandingsamong thepartieshereto with respectto the subjectmatter hereofand thereof.
f.SubjecttotherequirementsofSection9 hereof,thisAgreementshallinuretothe benefit ofandbebinding upon the successorsandassigns ofeachof theparties hereto.
g. TheheadingsinthisAgreementareforconvenienceofreferenceonlyandshall notlimitor otherwiseaffectthemeaninghereof.
h. ThisAgreement may beexecuted in two or morecounterparts,each of which shallbe deemedanoriginalbutallof whichshallconstitute oneandthesameagreement.This Agreement,onceexecuted byaparty,maybedelivered to the otherpartyheretobyfacsimile transmission of acopy of thisAgreementbearing the signature of the party sodelivering this Agreement.
i. Eachparty shall doand perform, orcause to be doneand performed,all such furtheractsandthings,andshallexecuteanddeliverallsuch otheragreements,certificates, instrumentsand documents,as theotherpartymayreasonablyrequestin ordertocarry out the intentandaccomplishthe purposesof thisAgreementandtheconsummationof the transactionscontemplated hereby.
j. Exceptasotherwiseprovided herein,allconsentsand otherdeterminationstobe madebytheBuyer pursuantto this Agreement shallbemadebyBuyers holdingamajorityofthe RegistrableSecurities,determinedasifthealloftheNoteandWarrantsthenoutstanding have beenconverted orexercised into forRegistrableSecurities.
k. TheCompanyacknowledgesthat abreachbyitofitsobligationshereunderwillcauseirreparableharmto theBuyerby vitiatingtheintentand purposeofthetransactionscontemplatedhereby. Accordingly,theCompanyacknowledgesthattheremedyatlawfor breach of itsobligationshereunder willbe inadequateandagrees,intheeventofa breachor threatenedbreachby theCompanyofanyoftheprovisions hereunder,that theBuyershallbeentitled,inaddition toallotheravailableremediesinlaworinequity,toan injunctionor injunctionstopreventorcurebreachesof theprovisionsof thisAgreementandtoenforce specifically thetermsand provisions hereof, without thenecessity ofshowingeconomiclossand withoutanybond orother securitybeingrequired.
l. The language used in thisAgreementwill be deemedto be thelanguagechosenby thepartiestoexpress theirmutual intent,and no rules ofstrictconstruction will beappliedagainstanyparty.
m.In theevent thatany provision of this Agreement is invalid or unenforceable underanyapplicable statute or rule of law, then such provision shall be deemed inoperative to theextent that it mayconflict therewithand shall be deemed modified toconform with such statuteorruleoflaw.Any provisionhereofwhich mayproveinvalidorunenforceableunderany lawshall notaffectthevalidityorenforceabilityofanyotherprovision hereof.
n. TheinitialnumberofRegistrableSecurities included inany RegistrationStatementandeachincreasetothenumber ofRegistrable Securitiesincludedthereinshallbeallocatedprorataamong theBuyersbased on thenumberofRegistrableSecurities held by theBuyerat the timeofsuchestablishment orincrease,asthecasemaybe.IntheeventanBuyer shall sell or otherwise transferanyof such holder's RegistrableSecurities,each transferee shall beallocatedaprorataportionofthenumberof RegistrableSecuritiesincludedinaRegistrationStatement forsuchtransferor. Any shares ofCommonStockincludedonaRegistrationStatementand which remainallocatedtoanypersonorentity which does not holdany RegistrableSecuritiesshallbeallocated tothe remainingBuyers, pro rata based onthe number ofshares ofRegistrableSecurities thenheldby theBuyers.Fortheavoidanceofdoubt, the numberofRegistrableSecuritiesheldby aBuyershall bedeterminedasifallthe NoteandWarrantsthenoutstandingand heldby aBuyer wereconvertedinto orexercised forRegistrableSecurities, withoutregard toany limitation on theBuyer'sability toconvert theNoteorexercise theWarrants.
o. There shall be nooral modifications oramendments to this Agreement. This Agreement maybemodified oramended onlyin writing.
INWITNESSWHEREOF,theundersignedBuyerandtheCompanyhavecausedthis Agreement to be dulyexecutedasof the ___thdayofDecember, 2012.
COMPANY:
NYXIOTECHNOLOGIESCORP
By:/s/ Giorgio Johnson
Giorgio Johnson
ADDRESS:
2156 NEBroadway
Portland, Oregon 97232
Phone: 855-436-6996
Fax:
BUYER:
CONTINENTALEQUITIESLLC
By: /s/ Continental Equities LLC
ADDRESS:
888 7TH Avenue
NewYork,NY 10106
Phone: 212-292-7455
Fax:
