Exhibit 10.2
REGISTRATIONRIGHTSAGREEMENT
RegistrationRightsAgreement(the“Agreement”),datedasofJuly 16,2014,by and betweenEnergieHoldings,Inc.,a corporationorganized under thelawsofDelaware,USA(the“Company”),andDutchess OpportunityFund,II,LP,aDelawareLimitedPartnership(the“Investor”).
Whereas,inconnectionwiththeInvestmentAgreementby andbetweentheCompany andtheInvestorofthis date(the“InvestmentAgreement”),theCompany hasagreedtoissue andselltotheInvestorupto5,000,000sharesoftheCompany’sCommonStock,$.0001parvaluepershare(the“CommonStock”),tobepurchasedpursuanttothetermsandsubjecttotheconditions setforth intheInvestmentAgreement; and
Whereas,toinducetheInvestortoexecuteanddelivertheInvestmentAgreement,theCompany hasagreedto providecertainregistrationrightsunder theSecuritiesActof1933,as amended,andtherulesandregulationsthereunder,oranysimilarsuccessorstatute(collectively,the“1933Act”),andapplicablestatesecuritieslaws,withrespecttothesharesofCommonStockissuablepursuanttotheInvestmentAgreement.
Nowtherefore,inconsiderationoftheforegoingpromisesandthemutualcovenants containedhereinafterandothergoodandvaluableconsideration,thereceiptandsufficiency ofwhich are herebyacknowledged,theCompanyand theInvestorherebyagreeasfollows:
Section1.DEFINITIONS.
Asused inthisAgreement, thefollowingtermsshall havethefollowingmeanings:
“ExecutionDate”meansthedateofthisAgreementsetforth above.
“Person” means acorporation,alimitedliabilitycompany,anassociation,apartnership, anorganization,abusiness,anindividual,a governmental orpolitical subdivision thereoforagovernmentalagency.
“PrincipalMarket”shallmeanNasdaqCapitalMarket,theNYSEAmex,theNewYorkStockExchange,theNasdaqGlobalMarket,theNasdaqGlobalSelectMarketortheOTCBulletinBoard,whicheveristheprincipalmarketonwhichtheCommonStockoftheCompanyislisted.
“Register,”“Registered,”and “Registration”refer to theRegistrationeffectedby preparingandfilingone(1)ormoreRegistrationStatementsincompliancewiththe1933Act andpursuanttoRule415underthe1933Actorany successorruleprovidingforoffering securitiesonacontinuousbasis(“Rule415”),andthedeclarationororderingofeffectivenessof suchRegistrationStatement(s)bytheUnitedStatesSecuritiesandExchangeCommission(the“SEC”).
“RegistrableSecurities”means(i)thesharesofCommonStockissuedorissuable pursuanttotheInvestmentAgreement,(ii)theFeeSharesand(iii)anysharesofcapital stockissuedorissuablewithrespectto suchsharesofCommonStock,ifany,as aresultofanystock split,stockdividend,recapitalization,exchangeorsimilareventor otherwise,whichhavenot been(x)includedintheRegistrationStatementthathasbeendeclaredeffectivebytheSEC,or
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(y)soldundercircumstancesmeetingalloftheapplicableconditionsofRule144(oranysimilar provision then inforce)underthe1933Act.
“RegistrationStatement”meanstheregistrationstatementorstatementsofthe
Companyfiledunderthe1933Actcovering theRegistrable Securities.
AllcapitalizedtermsusedinthisAgreementandnototherwisedefinedhereinshallhavethesamemeaningascribedtothemasintheInvestmentAgreement.
Section2.REGISTRATION.
(a)SubjecttoSection3(g),theCompany shall,withintwenty-one(21)daysafterthe dateofthisAgreement,filewiththeSEC theRegistrationStatementorRegistrationStatements(asisnecessary)onFormS-1(or,ifsuchformisunavailable forsucharegistration,onsuch otherformasisavailable forsuchregistration),coveringtheresaleofalloftheRegistrableSecurities,whichRegistrationStatement(s)shallstate that,in accordancewithRule 416 promulgatedunderthe1933Act,suchRegistrationStatementalsocoverssuchindeterminate numberofadditional sharesofCommonStockasmaybecomeissuableupon stocksplits,stock dividendsorsimilartransactions.TheCompanyshallinitiallyregisterforresale5,000,000 sharesofCommonStock,exceptto theextentthattheSECrequires theshareamounttobereduced asaconditionofeffectiveness.
(b)TheCompanyagreesnottoincludeanyothersecuritiesintheRegistrationStatementcoveringtheRegistrableSecuritieswithouttheInvestor’spriorwrittenconsentwhichtheInvestormaywithholdinitssolediscretion.Furthermore, theCompany agreesthatitwillnotfileanyotherRegistrationStatementforothersecurities,untilthirtycalendardaysaftertheRegistrationStatementfortheRegistrable Securities is declaredeffective bytheSEC.
Section3.RELATEDOBLIGATIONS.
AtsuchtimeastheCompanyisobligatedtoprepareandfiletheRegistrationStatementwiththeSECpursuanttoSection2(a),theCompany shallhavethefollowingobligationswithrespecttotheRegistration Statement:
(a)TheCompany shalluseallcommerciallyreasonableeffortstocausesuchRegistrationStatementrelatingtotheRegistrableSecuritiestobecomeeffectivewithin ninety(90)daysafter thedatethattheRegistrationStatementisfiledandshallkeepsuchRegistrationStatementeffectiveuntiltheearliertooccurofthedateonwhich(A)theInvestor shallhave soldalltheRegistrableSecurities;or(B)theCompanyhasnorighttosell anyadditionalsharesofCommonStock undertheInvestmentAgreement(the “RegistrationPeriod”).TheRegistrationStatement(includingany amendmentsorsupplementstheretoandprospectuses containedtherein)shall notcontainanyuntruestatementofamaterialfactoromittostateamaterialfactrequiredto be statedtherein, or necessarytomakethestatementstherein,inlightofthecircumstancesinwhichtheyweremade,notmisleading. TheCompany shalluseall commercially reasonableefforts torespondtoallSECcommentswithinten(10)businessdaysfromreceiptofsuch commentsbytheCompany.TheCompany shalluseallcommerciallyreasonable efforts to causetheRegistrationStatementrelatingtotheRegistrableSecuritiesto becomeeffectivenolaterthanfive(5)businessdaysafternoticefromtheSECthattheRegistrationStatementmaybe declaredeffective.TheInvestoragreestoprovide allinformationwhich itis requiredbylawto provide totheCompany,including theintendedmethod
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ofdispositionoftheRegistrableSecurities,andtheCompany’sobligationssetforthaboveshallbeconditionedonthereceiptofsuchinformation.
(b)TheCompanyshallprepareandfilewiththeSECsuchamendments(including post-effectiveamendments)andsupplementstotheRegistrationStatementandtheprospectus used inconnectionwith suchRegistration Statement,which prospectusis to befiledpursuanttoRule424promulgated underthe1933Act,asmay benecessaryto keepsuchRegistrationStatementeffectiveduringtheRegistrationPeriod,and,duringsuchperiod,complywith the provisionsofthe 1933Actwithrespectto the dispositionofallRegistrableSecuritiesoftheCompany coveredbysuchRegistrationStatement untilsuchtimeasallofsuchRegistrableSecuritiesshallhavebeendisposedofinaccordancewiththeintendedmethodsofdisposition by theInvestorthereofassetforthinsuchRegistrationStatement.In theeventthenumberof sharesofCommonStockcoveredbytheRegistrationStatementfiledpursuanttothisAgreementis at anytimeinsufficientto cover all oftheRegistrableSecurities,theCompany shall amend suchRegistrationStatement,orfile a newRegistrationStatement(onthe shortformavailabletherefor,ifapplicable),orboth,so astocoveralloftheRegistrableSecurities,in eachcase,assoonas practicable,butinany eventwithinfifty(50)calendardaysafterthe necessitythereforarises(basedonthethenPurchasePriceoftheCommonStockandotherrelevantfactorsonwhichtheCompanyreasonably electstorely),assumingtheCompany has sufficientauthorizedsharesat thattime,andifitdoesnot,withinfifty(50)calendardaysafter suchsharesareauthorized.TheCompany shallusecommerciallyreasonableeffortstocause suchamendmentand/or newRegistrationStatementtobecomeeffective assoon aspracticablefollowingthefiling thereof.
(c)TheCompany shallmakeavailabletotheInvestorwhoseRegistrableSecurities areincludedinanyRegistrationStatementanditslegalcounselwithoutcharge(i)ifrequested bythe Investor,promptlyafterthesame is preparedandfiledwiththeSEC atleastone(1)copyofsuchRegistrationStatementandany amendment(s)thereto,includingfinancialstatements andschedules,all documentsincorporatedthereinbyreferenceandallexhibits,theprospectusincludedinsuchRegistrationStatement(includingeachpreliminary prospectus)and,withregards tosuchRegistrationStatement(s),anycorrespondence byoronbehalfoftheCompanytotheSEC orthe staffoftheSEC and any correspondencefromtheSEC orthe staffoftheSECtotheCompanyorits representatives;and(ii)upontheeffectivenessofanyRegistrationStatement,theCompanyshallmake available copies oftheprospectus,via EDGAR,includedin suchRegistrationStatement and allamendmentsand supplementsthereto.
(d)TheCompanyshall usecommerciallyreasonableefforts to(i)registerandqualifytheRegistrableSecuritiescoveredbytheRegistrationStatementundersuchothersecuritiesor“bluesky”lawsofsuch statesintheUnitedStatesastheInvestorreasonablyrequests; (ii) prepareandfileinthosejurisdictions,suchamendments(includingpost-effectiveamendments) andsupplementstosuchregistrations andqualificationsasmay benecessary tomaintaintheeffectivenessthereofduringtheRegistrationPeriod;(iii)take suchotheractionsasmay be necessary tomaintain suchregistrations andqualificationsineffectatalltimesduringtheRegistrationPeriod,and(iv)takeallotheractionsreasonablynecessary oradvisableto qualifytheRegistrableSecuritiesforsaleinsuchjurisdictions;provided,however, that theCompany shallnotberequiredinconnectiontherewithor asaconditiontheretoto(x)qualifytodo businessin anyjurisdictionwhereitwould not otherwise berequiredtoqualify butforthisSection3(d),or(y)subjectitselftogeneraltaxationinanysuch jurisdiction.TheCompany shall promptly notifytheInvestorwhoholdsRegistrableSecuritiesofthereceiptbytheCompanyof any notificationwithrespecttothesuspensionoftheregistrationorqualificationofany oftheRegistrableSecuritiesfor sale underthe securities or“blue sky”laws of anyjurisdictioninthe
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UnitedStatesoritsreceiptofactualnoticeoftheinitiationorthreateningofanyproceedingfor suchpurpose.
(e)Aspromptlyaspracticableafterbecomingawareofsuchevent,theCompany shallnotify theInvestorinwritingofthehappeningofanyeventas aresultofwhichthe prospectusincludedintheRegistrationStatement,asthenineffect,includes an untrue statementofa materialfactoromissiontostateamaterialfactrequiredtobestatedthereinor necessary tomakethestatements therein,inlightofthe circumstancesunderwhichtheyweremade,notmisleading(“RegistrationDefault”)andusealldiligenteffortstopromptly preparea supplement oramendmentto suchRegistrationStatement andtake any other necessary stepstocuretheRegistrationDefault(which,if suchRegistrationStatementisonFormS-3,may consistof a documentto befiled bytheCompanywiththeSEC pursuanttoSection 13(a),
13(c),14or15(d)ofthe 1934Act(asdefinedbelow)andtobeincorporatedbyreferenceinthe prospectus)tocorrectsuchuntruestatementoromission,andmakeavailablecopiesof such
supplementoramendmenttotheInvestor.TheCompanyshallalsopromptlynotifytheInvestor
(i)whenaprospectusoranyprospectussupplementorpost-effectiveamendmenthasbeenfiled,andwhentheRegistrationStatementorany post-effectiveamendmenthasbecomeeffective;(ii)ofanyrequestby theSECforamendmentsorsupplementsto theRegistrationStatementorrelated prospectusorrelatedinformation,(iii)oftheCompany’sreasonable determinationthatapost-effectiveamendmenttotheRegistrationStatementwouldbe appropriate,(iv)inthe eventtheRegistrationStatementisnolongereffective,or(v)iftheRegistrationStatementisstaleasa resultoftheCompany’s failure totimelyfileitsfinancialsor otherwise.If aRegistrationDefault occursduringthe period commencing onthePutNoticeDateandendingontheClosingDate,theCompanyacknowledgesthatitsfailureto curesuchaRegistrationDefaultwithinten(10) business dayswill causetheInvestorto suffer damagesin anamountthatwill bedifficultto ascertain.
(f)TheCompanyshalluseallcommerciallyreasonableeffortstopreventtheissuanceofanystoporderorothersuspensionofeffectivenessoftheRegistrationStatement, orthe suspensionofthequalificationof anyoftheRegistrableSecuritiesfor salein anyjurisdictionand,ifsuchanorderorsuspensionisissued,toobtain thewithdrawal ofsuchorder orsuspension attheearliestpossiblemomentandtonotifytheInvestorholdingRegistrableSecuritiesbeingsoldoftheissuanceofsuch orderand theresolution thereoforits receiptof actualnoticeoftheinitiationorthreatof any proceedingconcerning theeffectivenessoftheRegistrationStatement.
(g)TheCompany shallpermit theInvestorandone(1)legalcounsel,designatedbythe Investor,to reviewandcommentupon theRegistrationStatementandallamendmentsand supplementstheretoatleast one(1)calendardaypriortotheirfilingwiththeSEC.However, anypostponementof afilingof aRegistrationStatement or anypostponementof arequestfor accelerationorany postponementoftheeffectivedateoreffectivenessofaRegistrationStatement bywrittenrequestoftheInvestor(collectively,the"Investor'sDelay")shallnot acttotriggeranypenaltyof anykind,or anycash amount dueor anyin-kindamountdue theInvestorfromtheCompany underany and all agreementsof any natureorkindbetweentheCompany andtheInvestor.Theevent(s)of anInvestor'sDelayshallacttosuspend allobligationsof anykindor natureof theCompany under anyandall agreementsof anynatureorkindbetweentheCompanyandtheInvestor.
(h)TheCompanyshallholdinconfidenceandnotmakeanydisclosureofinformationconcerningtheInvestorunless(i)disclosureofsuchinformationisnecessaryto complywithfederalorstate securitieslaws,(ii)thedisclosureof suchinformationisnecessary
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toavoidorcorrecta misstatementoromissioninanyRegistrationStatement,(iii)thereleaseof suchinformationisorderedpursuanttoasubpoenaorotherfinal,non-appealableorderfroma courtorgovernmental bodyofcompetentjurisdiction,(iv)suchinformationhasbeenmadegenerallyavailabletothepublicother thanby disclosureinviolationofthisAgreementorany otheragreement,or(v)theInvestorhasconsentedtosuchdisclosure.TheCompany agreesthatitshall,uponlearningthatdisclosureofsuchinformationconcerningtheInvestoris soughtinorby acourtorgovernmental body ofcompetent jurisdictionor throughother means,give promptwrittennotice to theInvestorandallowtheInvestor,attheInvestor’sexpense,to undertake appropriateactionto preventdisclosureof,or to obtain aprotective ordercovering suchinformation.
(i)TheCompanyshalluseallcommerciallyreasonableeffortstomaintain designationandquotationofalltheRegistrableSecuritiescoveredbyanyRegistrationStatementonthePrincipalMarket.TheCompany shallpayallfeesandexpensesinconnectionwith satisfyingitsobligationunderthisSection3(i).
(j)TheCompany shallprovideatransferagentforalltheRegistrableSecuritiesnotlaterthantheeffectivedateofthefirstRegistration Statementfiledpursuanthereto.
(k)IfrequestedbytheInvestor,theCompany shall(i)assoonasreasonably practicalincorporateina prospectussupplementorpost-effectiveamendmentsuchinformation astheInvestorreasonablydeterminesshould beincludedthereinrelatingtothesaleand distributionofRegistrableSecurities,including,withoutlimitation,informationwithrespect totheofferingoftheRegistrableSecuritiestobesoldinsuchoffering;(ii)makeallrequiredfilingsof suchprospectussupplementorpost-effective amendmentassoonasreasonably possibleafter beingnotifiedofthematterstobeincorporatedinsuch prospectussupplementorpost-effective amendment;and(iii)supplementor makeamendmentstoanyRegistrationStatementifreasonablyrequested bytheInvestor.
(l)TheCompanyshalluseallcommerciallyreasonableeffortstocausetheRegistrableSecuritiescoveredbytheapplicableRegistrationStatementtoberegisteredwithor approved by suchothergovernmentalagencies orauthoritiesasmay benecessarytofacilitatethedispositionof suchRegistrable Securities.
(m)TheCompanyshallotherwiseuseallcommerciallyreasonableeffortstocomplywithallapplicablerulesand regulationsoftheSECinconnectionwithany registration hereunder.
(n)Withinone(1)businessdayaftertheRegistrationStatementwhichincludesRegistrableSecuritiesisdeclaredeffectivebytheSEC,theCompanyshalldelivertothetransferagentforsuchRegistrableSecurities,withcopiestotheInvestor, awrittennotificationthat suchRegistrationStatementhasbeendeclaredeffective bytheSEC.
Section4.OBLIGATIONSOFTHEINVESTOR.
(a)Atleastfive(5)calendardayspriortothefirstanticipatedfilingdateoftheRegistrationStatementtheCompany shallnotify theInvestorinwritingoftheinformationtheCompanyrequiresfromtheInvestorfortheRegistrationStatement.It shall be a condition precedent totheobligationsoftheCompanytocomplete theregistrationpursuanttothisAgreementwithrespect totheRegistrableSecuritiesandtheInvestoragreestofurnishtotheCompanythatinformationregardingitself,theRegistrableSecurities andtheintendedmethod
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ofdispositionoftheRegistrableSecuritiesasshall reasonably berequired toeffecttheregistrationoftheresaleofsuchRegistrableSecuritiesandtheInvestorshallexecutesuch documentsinconnectionwithsuchregistration astheCompanymayreasonably request.TheInvestorcovenantsandagreesthat,inconnectionwithanysaleofRegistrableSecuritiesbyit pursuant totheRegistrationStatement,itshallcomplywiththe“PlanofDistribution”sectionofthethen currentprospectusrelatingto suchRegistrationStatement.
(b)TheInvestor,byitsacceptanceoftheRegistrableSecurities,agreesto cooperatewiththeCompany asreasonably requestedbytheCompanyinconnectionwiththe preparationandfilingof any RegistrationStatementhereunder.
(c)TheInvestoragreesthat,uponreceiptofwritten noticefromtheCompanyofthe happeningofanyeventofthekinddescribed inSection 3(f)orthefirstsentenceofSection 3(e),theInvestorwillimmediately discontinuedispositionofRegistrableSecuritiespursuant toanyRegistrationStatement(s)coveringtheresaleofsuchRegistrableSecuritiesuntiltheInvestor’sreceiptofthe copiesofthesupplemented oramendedprospectuscontemplatedbySection3(f) orthefirst sentenceofSection 3(e).
Section5.EXPENSES OFREGISTRATION.
Allreasonableexpenses,otherthanunderwritingdiscountsandcommissionsandotherthanassetforthin the InvestmentAgreement,incurredinconnectionwith registrationsincluding comments,filingsorqualificationspursuanttoSection 2andSection3,including,withoutlimitation,allregistration,listingandqualificationsfees,printingandaccountingfees, andfeesand disbursementsofcounselfortheCompanyshall bepaid bytheCompany.
Section6.INDEMNIFICATION.
Inthe eventanyRegistrableSecuritiesareincludedintheRegistrationStatementunderthisAgreement:
(a)Tothefullestextentpermittedbylaw,theCompany,underthisAgreement,will, andhereby does,indemnify,holdharmlessanddefendtheInvestor,thedirectors,officers, partners,employees,counsel,agents, representativesof,and eachPerson,ifany,who controls,theInvestorwithinthemeaningofthe1933ActortheSecuritiesExchangeActof
1934,asamended(the“1934Act”)(each,an“IndemnifiedPerson”),againstanylosses,claims,
damages,liabilities,judgments,fines,penalties,charges, costs,attorneys’fees, amountspaid in settlementorexpenses,joint orseveral (collectively,“Claims”),incurredininvestigating, preparingordefendingany action,claim,suit,inquiry,proceeding,investigationorappealtakenfromtheforegoingbyorbeforeanycourtorgovernmental,administrativeorotherregulatory agency,bodyortheSEC,whetherpendingorthreatened,whetherornotan indemnifiedparty is ormay beaparty thereto(“IndemnifiedDamages”),towhichanyofthem may becomesubjectinsofarassuchClaims(oractionsorproceedings,whethercommencedorthreatened,inrespect thereof)ariseoutoforarebasedupon:(i)any untruestatementorallegeduntrue statementofa materialfactintheRegistrationStatementorany post-effectiveamendmenttheretoorinanyfilingmadeinconnectionwiththequalificationoftheofferingunderthe securitiesorother“bluesky”laws of anyjurisdictioninwhichtheInvestor hasrequestedinwritingthattheCompany registerorqualify theShares(“BlueSky Filing”),or theomissionor allegedomissiontostateamaterialfactrequiredtobestatedthereinornecessary tomakethe statements therein,in lightofthecircumstancesunderwhichthestatements thereinwere made, notmisleading,(ii)anyuntruestatementoralleged untrue statementofamaterialfactcontained
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inthefinalprospectusfortheofferoftheRegistrableSecurities(asamendedorsupplemented,iftheCompanyfilesany amendmentthereof orsupplementtheretowiththeSEC) orthe omissionor allegedomissiontostatetherein any materialfactnecessary to make the statementsmadetherein,inlightofthecircumstancesunderwhichthestatementsthereinweremade,not misleading,or(iii)anyviolationorallegedviolation bytheCompany ofthe1933Act,the1934Act,any otherlaw,including,withoutlimitation,any statesecuritieslaw,oranyruleorregulationthereunder relatingtotheofferorsaleoftheRegistrableSecuritiespursuant totheRegistrationStatement(themattersintheforegoingclauses(i)through(iii)being, collectively,“Violations”).Subjecttotherestrictionsset forthinSection6(c) theCompany shall reimburse eachIndemnifiedPerson,promptlyas suchexpenses are incurredand aredue and payable,for anyreasonablelegalfeesorotherreasonable expensesincurredbytheminconnectionwithinvestigatingordefending any suchClaim.Notwithstanding anythingtothecontrary contained herein,theindemnification agreement containedinthisSection 6(a):(i) shall not applyto aClaimarisingoutof orbased upon aViolationwhichisduetotheinclusionintheRegistrationStatementoftheinformationfurnishedtotheCompanybyany IndemnifiedPersonexpresslyfor useinconnectionwiththepreparationoftheRegistrationStatementor any suchamendmentthereoforsupplementthereto;(ii)shall notbeavailabletotheextentsuchClaimisbasedon (A) afailureoftheInvestortodeliverortocauseto bedeliveredtheprospectusmadeavailable bytheCompany;(B) theIndemnifiedPerson’suse of anincorrectprospectus despite being promptly advisedin advance bytheCompanyinwriting notto use suchincorrectprospectus;(C) themannerof sale of theRegistrableSecurities bytheInvestororoftheInvestor’sfailure toregister as a dealer under applicable securitieslaws;(D) any omissionoftheInvestorto notifytheCompanyofanymaterialfact thatshould be statedintheRegistrationStatementor prospectusrelatingtotheInvestoror themannerofsale;and(E)any amountspaidin settlementofanyClaimifsuchsettlementiseffectedwithoutthepriorwrittenconsentoftheCompany,which consent shall not be unreasonablywithheld.Suchindemnity shallremaininfullforceandeffect regardlessofanyinvestigationmadeby oronbehalfoftheIndemnifiedPersonandshall survivethe resaleoftheRegistrable Securities bythe InvestorpursuanttotheRegistrationStatement; and(iii)shall not be availabletothe extenttheClaimarisesoutofthegross negligenceorwillfulmisconductoftheIndemnifiedPerson.
(b)InconnectionwithanyRegistrationStatementinwhichtheInvestoris participating,theInvestoragreestoseverallyandjointlyindemnify,holdharmlessanddefend,tothe same extent andinthe samemanner asis setforthinSection 6(a),theCompany, eachofitsdirectors,officers, employees,counsel,agentsandrepresentativesandeachPerson,if any,whocontrolstheCompanywithinthemeaningofthe1933Actorthe1934Act(each, an“IndemnifiedParty”),against anyClaim orIndemnifiedDamagestowhichanyofthem may become subject, underthe1933Act,the1934Act orotherwise,insofar assuchClaimorIndemnifiedDamagesariseoutof orarebaseduponanyViolation,ineachcasetotheextent, and onlytotheextent,thatsuchViolation is due to(i)theinclusionintheRegistrationStatementofthewritteninformationfurnishedtotheCompany bytheInvestorexpresslyfor usein connectionwith suchRegistrationStatement;(ii) afailureoftheInvestorto deliverortocauseto be deliveredthe prospectus made availablebytheCompany or theInvestor’s useofanincorrectprospectus despitebeingtimelyadvisedbytheCompanyinwritingnotto usesuchincorrectprospectus;(iii)theInvestor’s failuretoregister asadealer under applicablesecuritieslaws;(iv)theInvestor’s gross negligence orwillfulmisconduct; or(v) any omissionoftheInvestorto notifytheCompanyof anymaterialfactthat should bestatedintheRegistrationStatementorprospectusrelatingtotheInvestor orthemannerof sale;and, subjecttoSection
6(c),theInvestorwill reimburseanylegalorotherexpensesreasonablyincurredbythemin connectionwithinvestigatingordefendinganysuchClaim;provided,however,thatthe
indemnityagreementcontainedinthisSection6(b)andtheagreementwithrespectto
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contributioncontainedinSection7shallnotapplytoamountspaidinsettlementofanyClaimif suchsettlementiseffectedwithoutthe priorwrittenconsentoftheInvestor,whichconsentshall notbeunreasonablywithheld.Suchindemnityshallremaininfullforceandeffectregardlessof anyinvestigationmadebyoronbehalfofsuchIndemnifiedPartyandshallsurvivetheresaleoftheRegistrable Securities bytheInvestor pursuantto theRegistrationStatement.
(c)PromptlyafterreceiptbyanIndemnifiedPerson orIndemnifiedPartyunderthisSection6ofnoticeofthecommencementofany actionorproceeding(includinganygovernmental actionor proceeding)involving aClaim,such IndemnifiedPersonorIndemnifiedPartyshall,ifaClaiminrespect thereofisto bemadeagainstanyindemnifyingpartyunder thisSection6,delivertotheindemnifyingparty awrittennoticeofthecommencementthereof,andtheindemnifyingpartyshallhavetherightto participatein,and,totheextenttheindemnifying party sodesires,jointlywithany otherindemnifyingparty similarly noticed,toassumecontrolofthedefensethereofwithcounsel mutually satisfactorytotheindemnifyingparty andtheIndemnifiedPersonortheIndemnifiedParty,asthecasemay be;provided,however,thatanIndemnifiedPersonorIndemnifiedParty,asthe casemay be,shallhavetherighttoretainits own counselwiththefeesandexpensestobepaid bytheindemnifyingparty,if,inthereasonableopinionofcounselretainedbytheIndemnifiedPersonorIndemnifiedParty,therepresentationbycounseloftheIndemnifiedPersonorIndemnifiedParty andtheindemnifying partywouldbeinappropriatedue toactual orpotentialdifferinginterestsbetweensuchIndemnifiedPersonorIndemnifiedParty and any otherpartyrepresentedbysuch counselin suchproceeding.Theindemnifying party shall payfor only one(1) separatelegalcounselfortheIndemnifiedPersons ortheIndemnifiedParties,asapplicable,andsuchcounselshallbe selectedbythe Investor,ifthe Investorisentitledto indemnification hereunder,ortheCompany,iftheCompanyisentitledtoindemnificationhereunder,asapplicable.TheIndemnifiedPartyorIndemnifiedPersonshallcooperatefullywiththeindemnifyingpartyinconnectionwithany negotiationordefenseofanysuchactionorClaimby theindemnifyingpartyandshallfurnishtotheindemnifyingparty allinformationreasonablyavailabletotheIndemnifiedParty orIndemnifiedPersonwhichrelatesto such action orClaim.Theindemnifying party shallkeeptheIndemnifiedParty or IndemnifiedPersonfully apprisedatall timesastothestatusofthe defense orany settlement negotiationswithrespectthereto.Noindemnifying party shall beliableforany settlementofany action,claimorproceedingaffectedwithoutitswrittenconsent; provided,however,that theindemnifyingparty shallnotunreasonablywithhold,delay or conditionits consent.Noindemnifyingparty shall,withoutthe consentoftheIndemnifiedParty orIndemnifiedPerson,consenttoentryofanyjudgmentorenterintoany settlementorother compromisewhichdoesnotincludeasanunconditional termthereofthe givingbytheclaimant or plaintiffto suchIndemnifiedParty orIndemnifiedPersonof areleasefrom allliabilityinrespecttosuchClaim. Followingindemnificationasprovidedforhereunder, theindemnifying party shall be subrogatedto allrightsoftheIndemnifiedParty orIndemnifiedPersonwithrespect toallthirdparties,firmsorcorporationsrelatingtothematterforwhichindemnification hasbeenmade.Thefailuretodeliverwrittennoticetotheindemnifyingpartywithinareasonabletimeofthecommencementof anysuchactionshallnotrelievesuchindemnifying partyof anyliabilitytotheIndemnifiedPersonorIndemnifiedParty underthisSection6,excepttotheextentthattheindemnifyingparty isprejudicedin its abilityto defend suchaction.
(d)Theindemnityagreementscontainedhereinshallbeinadditionto(i)anycauseofactionorsimilarrightoftheIndemnifiedParty orIndemnifiedPersonagainst theindemnifying partyorothers,and(ii)anyliabilitiestheindemnifyingpartymaybesubjecttopursuanttothelaw.
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Section7.CONTRIBUTION.
Totheextentany indemnificationbyanindemnifyingparty isprohibitedorlimitedbylaw,theindemnifyingpartyagreestomakethemaximumcontributionwithrespecttoanyamountsforwhichitwouldotherwisebeliableunderSection6tothefullestextentpermitted bylaw; provided,however,that:(i)nocontributionshallbemade undercircumstanceswherethe makerwouldnothavebeenliableforindemnificationunderthefaultstandardssetforthinSection6;(ii) no seller ofRegistrableSecuritiesguilty offraudulentmisrepresentation(withinthemeaningofSection11(f)ofthe1933Act)shallbeentitledtocontributionfromanysellerofRegistrableSecuritieswhowasnotguiltyoffraudulent misrepresentation;and(iii)contributionby any sellerofRegistrableSecurities shallbelimitedinamounttothenetamountofproceeds receivedby suchsellerfromthesaleofsuchRegistrable Securities.
Section8.REPORTSUNDERTHE1934ACT.
WithaviewtomakingavailabletotheInvestorthebenefitsofRule144promulgated underthe1933ActoranyothersimilarruleorregulationoftheSECthatmayatanytime permittheInvestortosellsecuritiesoftheCompanytothepublicwithoutregistration(“Rule144”), providedthattheInvestorholdsanyRegistrableSecuritieswhichareeligibleforresaleunderRule144andsuchinformationisnecessaryinorderfortheInvestortosellsuchSecurities pursuanttoRule 144,the Companyagrees to:
(a)makeandkeeppublicinformationavailable,asthosetermsareunderstoodand defined inRule 144;
(b)filewiththeSECinatimely mannerallreportsandotherdocuments requiredoftheCompany underthe 1933Actandthe 1934Actsolongas theCompany remainssubjectto such requirements(it beingunderstood thatnothinghereinshalllimittheCompany’sobligations underSection5(c)oftheInvestmentAgreement)and thefilingofsuchreportsandother documentsisrequiredfortheapplicable provisionsofRule 144; and
(c)furnishtotheInvestor,promptlyuponrequest,(i)awrittenstatementbythe
Companythatithascompliedwiththe reportingrequirementsofRule 144,the1933Actandthe
1934ActapplicabletotheCompany,(ii)acopyofthemostrecentannualorquarterlyreportoftheCompanyandsuchotherreportsanddocumentssofiledbytheCompany,and(iii)such
otherinformationasmaybereasonablyrequestedtopermittheInvestortosellsuchsecurities pursuanttoRule 144withoutregistration.
Section9.NOASSIGNMENTOF REGISTRATIONRIGHTS.
ThisAgreementandtherights,agreementsorobligationshereunder may notbe assigned,by operationoflaw,mergerorotherwise,andwithoutthepriorwrittenconsentofthe otherpartyhereto,andany purportedassignmentby apartywithoutpriorwrittenconsentofthe otherpartywillbenull andvoidandnotbindingonsuchotherparty.Subject tothepreceding sentence,alloftheterms,agreements,covenants,representations,warrantiesandconditionsofthisAgreementarebinding upon,andinuretothe benefitofandareenforceableby,the parties andtheirrespective successorsand assigns.
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Section 10.AMENDMENTOF REGISTRATIONRIGHTS.
TheprovisionsofthisAgreementmaybeamendedonlywiththewrittenconsentofthe
CompanyandtheInvestor.
Section 11.MISCELLANEOUS.
(a)Any noticesorothercommunicationsrequiredorpermittedtobegiven underthetermsofthisAgreementmustbeinwritingandwillbedeemedtohavebeendelivered(i)uponreceipt,when deliveredpersonally; (ii)uponreceipt,when sentbyfacsimile oremailwiththe signeddocumentattachedinPDFformat(providedaconfirmationof transmissionismechanicallyorelectronicallygenerated andkeptonfilebythesendingparty);or(iii)one(1) day afterdepositwithanationallyrecognizedovernightdeliveryservice,ineachcaseproperly addressedtothepartytoreceivethesame.Theaddressesandfacsimilenumbers forsuch communicationsshall be:
IftotheCompany:
ENERGIEHOLDINGS,INC.
4885Ward Road,Suite300
WheatRidge,Colorado80033
Telephone:(720)963-8055
IftotheInvestor:
DutchessOpportunityFund,II,LP
50Commonwealth Ave,Suite 2
Boston,MA 02116
Telephone:(617)301-4700
Eachparty shallprovidefive(5)businessdayspriornoticetotheotherpartyofany changein address, phone number,facsimile numberore-mail address.
(b)FailureofanypartytoexerciseanyrightorremedyunderthisAgreementor otherwise,ordelaybyapartyinexercisingsuchrightorremedy,shallnotoperateasawaiverthereof.
(c)ThisAgreementandthe InvestmentAgreement constitutetheentireagreement amongthe partiesheretowithrespectto thesubjectmatterhereofand thereof.Therearenorestrictions,promises,warrantiesorundertakings,otherthanthose setforthorreferredto herein andtherein.
(d)ThisAgreementandtheInvestmentAgreementsupersedeallprioragreements andunderstandingsamong thepartiesheretowith respectto thesubjectmatterhereofandthereof.
(e)TheheadingsinthisAgreementareforconvenienceofreferenceonly andshall notlimitorotherwiseaffectthemeaninghereof.WheneverrequiredbythecontextofthisAgreement,the singular shallincludethe pluralandmasculine shallincludethefeminine.This
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Agreementshallnotbeconstruedasifithadbeenpreparedbyoneoftheparties,butratherasifalltheparties hadpreparedthesame.
(f)ThisAgreementmaybeexecutedintwoormoreidenticalcounterparts,eachofwhich shall bedeemedanoriginal butallofwhich shall constituteoneandthesameagreement.ThisAgreement,once executed by aparty,may bedeliveredtothe otherpartyheretobyfacsimiletransmissionorbye-mail deliveryofaPDFformatofa copyofthisAgreementbearingthesignatureofthepartyso deliveringthisAgreement.
(g)Eachpartyshalldoandperform,orcausetobedoneandperformed,allsuchfurtheractsandthings,andshallexecuteanddeliverallsuchotheragreements,certificates,instrumentsanddocuments,astheotherpartymayreasonablyrequestinordertocarryouttheintentandaccomplishthepurposesofthisAgreementandthe consummationofthetransactionscontemplated hereby.
(h)IncaseanyprovisionofthisAgreementisheldbyacourtofcompetentjurisdictiontobeexcessiveinscopeorotherwiseinvalidorunenforceable,suchprovisionshall beadjustedratherthanvoided,ifpossible,sothatitisenforceabletothemaximumextent possible,andthevalidityandenforceabilityoftheremainingprovisions ofthisAgreementwill notin anywaybeaffected orimpairedthereby.
Section 12.GOVERNING LAW;DISPUTESSUBMITTEDTOARBITRATION.
Alldisputesarisingunderthisagreementshallbegovernedby andinterpretedin accordancewiththelawsoftheCommonwealthofMassachusetts,withoutregardtoprinciplesofconflictoflaws.Thepartiestothisagreementwillsubmit alldisputesarising underthis agreementtoarbitrationinBoston,Massachusetts beforeasinglearbitratoroftheAmericanArbitrationAssociation(“AAA”).Thearbitratorshall beselectedbyapplicationoftherulesoftheAAA,orbymutualagreementoftheparties,exceptthatsucharbitratorshallbeanattorney admittedtopracticelawintheCommonwealthofMassachusetts.Nopartytothisagreementwillchallengethejurisdictionorvenueprovisionsasprovidedinthis section.Nothingcontained herein shall preventthepartyfromobtaininganinjunction.
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SIGNATUREPAGEOFREGISTRATIONRIGHTSAGREEMENT
YoursignatureonthisSignaturePageevidencesyouragreement tobeboundbythetermsandconditionsoftheInvestmentAgreementandtheRegistrationRightsAgreementasofthe datefirstwrittenabove.
Theundersignedsignatoryhereby certifiesthathehasreadandunderstandstheRegistrationRightsAgreement,andtherepresentationsmadebytheundersignedinthisRegistration RightsAgreement are trueandaccurate,andagreestobeboundbyitsterms.
DUTCHESSOPPORTUNITY FUND,II,L.P.
| | By: | |
| | Douglas H. Leighton | |
| | Managing Member of: | |
| | Dutchess Capital Management, II, LLC General Partner to: | |
| | Dutchess Opportunity Fund, II, LP | |
| | ENERGIE HOLDINGS, INC. | |
| |  | |
| | | |
| | By: | |
| | Harold Hansen | |
| | Cheif Executive Officer | |
SignaturePageto RegistrationRightsAgreement
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