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Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT 

     

    This
      Registration Rights Agreement (this “Agreement”) is made and entered into as of
      February 13, 2006, by and between Creative Vistas, Inc., an Arizona corporation
      (the “Company”), and Laurus Master Fund, Ltd. (the “Purchaser”).

     

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof, by and between the Purchaser and the Company (as amended, modified
      or supplemented from time to time, the “Securities Purchase Agreement”), and
      pursuant to the Company Warrant referred to therein.

     

    The
      Company and the Purchaser hereby agree as follows: 

     

    1.  Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Securities Purchase Agreement shall have the meanings given such terms in the
      Securities Purchase Agreement. As used in this Agreement, the following terms
      shall have the following meanings:

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
means
      shares of the Company’s common stock, par value $0.01 per share.

     

    “Company
      Warrant”
has
      the
      meaning set forth in the Securities Purchase Agreement.

     

    “Effectiveness
      Date”
means
      (i) with respect to the initial Registration Statement required to be filed
      hereunder, a date no later than one hundred twenty (120) days following the
      Filing Date and (ii) with respect to each additional Registration Statement
      required to be filed hereunder, a date no later than forty five (45) days
      following the applicable Filing Date.

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2(a).

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and any successor
      statute.

     

    “Filing
      Date”
means
      the earlier of (x) the date that is six months following the Closing Date and
      (y) the date of the filing of the Company’s next registration statement with the
      Securities and Exchange Commission.

     

    “Holder”
or
      “Holders”
means
      the Purchaser or any of its affiliates or transferees to the extent any of
      them
      hold Registrable Securities.

     

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 6(c).

     

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section 6(c).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened. 

     

    “Prospectus”
means
      the prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus. 

     

    “Registrable
      Securities”
means
      the shares of Common Stock issuable upon exercise of the Company Warrant.

     

    “Registration
      Statement”
means
      each registration statement required to be filed hereunder, including the
      Prospectus, amendments and supplements to such registration statement or
      Prospectus, including pre- and post-effective amendments, all exhibits thereto,
      and all material incorporated by reference or deemed to be incorporated by
      reference in such registration statement.

     

    “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule. 

     

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule. 

     

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule. 

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and any successor statute.

     

    “Securities
      Purchase Agreement”
shall
      have the meaning provided above.

     

    “Trading
      Market”
means
      any of the NASD OTCBB, NASDAQ SmallCap Market, the Nasdaq National Market,
      the
      American Stock Exchange or the New York Stock Exchange. 

     

    2.  Registration.

     

    
      
        
        

      

      
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    (a)  On
      or
      prior to the applicable Filing Date the Company shall prepare and file with
      the
      Commission a Registration Statement covering the Registrable Securities for
      an
      offering to be made on a continuous basis pursuant to Rule 415. The Registration
      Statement shall be on Form SB-2 (except if the Company is not then eligible
      to
      register for resale the Registrable Securities on Form SB-2, in which case
      such
      registration shall be on another appropriate form in accordance herewith).
      The
      Company shall use commercially reasonable efforts to cause such Registration
      Statement to become effective and remain effective as provided herein. The
      Company shall use its reasonable commercial efforts to cause such Registration
      Statement to be declared effective under the Securities Act as promptly as
      possible after the filing thereof, but in any event no later than the
      Effectiveness Date. The Company shall use its reasonable commercial efforts
      to
      keep such Registration Statement continuously effective under the Securities
      Act
      until the date which is the earlier date of when (i) all Registrable Securities
      have been sold or (ii) all Registrable Securities may be sold immediately
      without registration under the Securities Act and without volume restrictions
      pursuant to Rule 144(k), as determined by the counsel to the Company pursuant
      to
      a written opinion letter to such effect, addressed and acceptable to the
      Company’s transfer agent and the affected Holders (the “Effectiveness
      Period”).

     

    3.  Within
      three business days of the Effectiveness Date, the Company shall, if required
      by
      the transfer agent, cause its counsel to issue a blanket opinion in form and
      substance satisfactory to the transfer agent, to the transfer agent stating
      that
      the shares are subject to an effective registration statement and can be
      reissued free of restrictive legend upon notice of a sale by the Purchaser
      and
      confirmation by the Purchaser that it has complied with
      the
      prospectus delivery requirements, provided that the Company has not advised
      the
      transfer agent orally or in writing that the opinion has been withdrawn. Copies
      of the blanket opinion required by this Section 3 shall be delivered to the
      Purchaser within the time frame set forth above.

     

    4.  Registration
      Procedures.
      If and
      whenever the Company is required by the provisions hereof to effect the
      registration of any Registrable Securities under the Securities Act, the Company
      will, as expeditiously as possible: 

     

    (a)  prepare
      and file with the Commission the Registration Statement with respect to such
      Registrable Securities, respond as promptly as possible to any comments received
      from the Commission, and use its best efforts to cause the Registration
      Statement to become and remain effective for the Effectiveness Period with
      respect thereto, and promptly provide to the Purchaser copies of all filings
      and
      Commission letters of comment relating thereto;

     

    (b)  prepare
      and file with the Commission such amendments and supplements to the Registration
      Statement and the Prospectus used in connection therewith as may be necessary
      to
      comply with the provisions of the Securities Act with respect to the disposition
      of all Registrable Securities covered by the Registration Statement and to
      keep
      such Registration Statement effective until the expiration of the Effectiveness
      Period;

     

    (c)  furnish
      to the Purchaser such number of copies of the Registration Statement and the
      Prospectus included therein (including each preliminary Prospectus) as the
      Purchaser reasonably may request to facilitate the public sale or disposition
      of
      the Registrable Securities covered by the Registration Statement;

     

    
      
        
        

      

      
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    (d)  use
      its
      commercially reasonable efforts to register or qualify the Purchaser’s
      Registrable Securities covered by the Registration Statement under the
      securities or “blue sky” laws of such jurisdictions within the United States as
      the Purchaser may reasonably request, provided, however, that the Company shall
      not for any such purpose be required to qualify generally to transact business
      as a foreign corporation in any jurisdiction where it is not so qualified or
      to
      consent to general service of process in any such jurisdiction;

     

    (e)  list
      the
      Registrable Securities covered by the Registration Statement with any securities
      exchange on which the Common Stock of the Company is then listed; 

     

    (f)  immediately
      notify the Purchaser at any time when a Prospectus relating thereto is required
      to be delivered under the Securities Act, of the happening of any event of
      which
      the Company has knowledge as a result of which the Prospectus contained in
      such
      Registration Statement, as then in effect, includes an untrue statement of
      a
      material fact or omits to state a material fact required to be stated therein
      or
      necessary to make the statements therein not misleading in light of the
      circumstances then existing; and

     

    (g)  make
      available for inspection by the Purchaser and any attorney, accountant or other
      agent retained by the Purchaser, all publicly available, non-confidential
      financial and other records, pertinent corporate documents and properties of
      the
      Company, and cause the Company’s officers, directors and employees to supply all
      publicly available, non-confidential information reasonably requested by the
      attorney, accountant or agent of the Purchaser.

     

    5.  Registration
      Expenses.
      All
      expenses relating to the Company’s compliance with Sections 2, 3 and 4 hereof,
      including, without limitation, all registration and filing fees, printing
      expenses, fees and disbursements of counsel and independent public accountants
      for the Company, fees and expenses (including reasonable counsel fees) incurred
      in connection with complying with state securities or “blue sky” laws, fees of
      the NASD, transfer taxes, fees of transfer agents and registrars, fees of,
      and
      disbursements incurred by, one counsel for the Holders (to the extent such
      counsel is required due to Company’s failure to meet any of its obligations
      hereunder), are called “Registration Expenses”. All selling commissions
      applicable to the sale of Registrable Securities, including any fees and
      disbursements of any special counsel to the Holders beyond those included in
      Registration Expenses, are called “Selling Expenses.” The Company shall only be
      responsible for all Registration Expenses.

     

    6.  Indemnification.

     

    (a)  In
      the
      event of a registration of any Registrable Securities under the Securities
      Act
      pursuant to this Agreement, the Company will indemnify and hold harmless the
      Purchaser, and its officers, directors and each other person, if any, who
      controls the Purchaser within the meaning of the Securities Act, against any
      losses, claims, damages or liabilities, joint or several, to which the
      Purchaser, or such persons may become subject under the Securities Act or
      otherwise, insofar as such losses, claims, damages or liabilities (or actions
      in
      respect thereof) arise out of or are based upon any untrue statement or alleged
      untrue statement of any material fact contained in any Registration Statement
      under which such Registrable Securities were registered under the Securities
      Act
      pursuant to this Agreement, any preliminary Prospectus or final Prospectus
      contained therein, or any amendment or supplement thereof, or arise out of
      or
      are based upon the omission or alleged omission to state therein a material
      fact
      required to be stated therein or necessary to make the statements therein not
      misleading, and will reimburse the Purchaser, and each such person for any
      reasonable legal or other expenses incurred by them in connection with
      investigating or defending any such loss, claim, damage, liability or action;
      provided, however, that the Company will not be liable in any such case if
      and
      to the extent that any such loss, claim, damage or liability arises out of
      or is
      based upon an untrue statement or alleged untrue statement or omission or
      alleged omission so made in conformity with information furnished by or on
      behalf of the Purchaser or any such person in writing specifically for use
      in
      any such document.

     

    
      
        
        

      

      
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    (b)  In
      the
      event of a registration of the Registrable Securities under the Securities
      Act
      pursuant to this Agreement, the Purchaser will indemnify and hold harmless
      the
      Company, and its officers, directors and each other person, if any, who controls
      the Company within the meaning of the Securities Act, against all losses,
      claims, damages or liabilities, joint or several, to which the Company or such
      persons may become subject under the Securities Act or otherwise, insofar as
      such losses, claims, damages or liabilities (or actions in respect thereof)
      arise out of or are based upon (x) the Purchaser’s failure to comply with the
      prospectus delivery requirements of the Securities Act or (y) any untrue
      statement or alleged untrue statement of any material fact which was furnished
      in writing by the Purchaser to the Company expressly for use in (and such
      information is contained in) the Registration Statement under which such
      Registrable Securities were registered under the Securities Act pursuant to
      this
      Agreement, any preliminary Prospectus or final Prospectus contained therein,
      or
      any amendment or supplement thereof, or arise out of or are based upon the
      omission or alleged omission to state therein a material fact required to be
      stated therein or necessary to make the statements therein not misleading,
      and
      will reimburse the Company and each such person for any reasonable legal or
      other expenses incurred by them in connection with investigating or defending
      any such loss, claim, damage, liability or action, provided, however, that
      the
      Purchaser will be liable in any such case if and only to the extent that any
      such loss, claim, damage or liability arises out of or is based upon an untrue
      statement or alleged untrue statement or omission or alleged omission so made
      in
      conformity with information furnished in writing to the Company by or on behalf
      of the Purchaser specifically for use in any such document. Notwithstanding
      the
      provisions of this paragraph, the Purchaser shall not be required to indemnify
      any person or entity in excess of the amount of the aggregate net proceeds
      received by the Purchaser in respect of Registrable Securities in connection
      with any such registration under the Securities Act.

     

    (c)  Promptly
      after receipt by a party entitled to claim indemnification hereunder (an
“Indemnified Party”) of notice of the commencement of any action, such
      Indemnified Party shall, if a claim for indemnification in respect thereof
      is to
      be made against a party hereto obligated to indemnify such Indemnified Party
      (an
“Indemnifying Party”), notify the Indemnifying Party in writing thereof, but the
      omission so to notify the Indemnifying Party shall not relieve it from any
      liability which it may have to such Indemnified Party other than under this
      Section 6(c) and shall only relieve it from any liability which it may have
      to
      such Indemnified Party under this Section 6(c) if and to the extent the
      Indemnifying Party is prejudiced by such omission. In case any such action
      shall
      be brought against any Indemnified Party and it shall notify the Indemnifying
      Party of the commencement thereof, the Indemnifying Party shall be entitled
      to
      participate in and, to the extent it shall wish, to assume and undertake the
      defense thereof with counsel satisfactory to such Indemnified Party, and, after
      notice from the Indemnifying Party to such Indemnified Party of its election
      so
      to assume and undertake the defense thereof, the Indemnifying Party shall not
      be
      liable to such Indemnified Party under this Section 6(c) for any legal expenses
      subsequently incurred by such Indemnified Party in connection with the defense
      thereof; if the Indemnified Party retains its own counsel, then the Indemnified
      Party shall pay all fees, costs and expenses of such counsel, provided, however,
      that, if the defendants in any such action include both the indemnified party
      and the Indemnifying Party and the Indemnified Party shall have reasonably
      concluded that there may be reasonable defenses available to it which are
      different from or additional to those available to the Indemnifying Party or
      if
      the interests of the Indemnified Party reasonably may be deemed to conflict
      with
      the interests of the Indemnifying Party, the Indemnified Party shall have the
      right to select one separate counsel and to assume such legal defenses and
      otherwise to participate in the defense of such action, with the reasonable
      expenses and fees of such separate counsel and other expenses related to such
      participation to be reimbursed by the Indemnifying Party as incurred.

     

    
      
        
        

      

      
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    (d)  In
      order
      to provide for just and equitable contribution in the event of joint liability
      under the Securities Act in any case in which either (i) the Purchaser, or
      any
      officer, director or controlling person of the Purchaser, makes a claim for
      indemnification pursuant to this Section 6 but it is judicially determined
      (by
      the entry of a final judgment or decree by a court of competent jurisdiction
      and
      the expiration of time to appeal or the denial of the last right of appeal)
      that
      such indemnification may not be enforced in such case notwithstanding the fact
      that this Section 6 provides for indemnification in such case, or (ii)
      contribution under the Securities Act may be required on the part of the
      Purchaser or such officer, director or controlling person of the Purchaser
      in
      circumstances for which indemnification is provided under this Section 6; then,
      and in each such case, the Company and the Purchaser will contribute to the
      aggregate losses, claims, damages or liabilities to which they may be subject
      (after contribution from others) in such proportion so that the Purchaser is
      responsible only for the portion represented by the percentage that the public
      offering price of its securities offered by the Registration Statement bears
      to
      the public offering price of all securities offered by such Registration
      Statement, provided, however, that, in any such case, (A) the Purchaser will
      not
      be required to contribute any amount in excess of the public offering price
      of
      all such securities offered by it pursuant to such Registration Statement;
      and
      (B) no person or entity guilty of fraudulent misrepresentation (within the
      meaning of Section 10(f) of the Act) will be entitled to contribution from
      any
      person or entity who was not guilty of such fraudulent
      misrepresentation.

     

    
      
        
        

      

      
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    7.  Representations
      and Warranties.

     

    (a)  The
      Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
      Act and the Company has timely filed all proxy statements, reports, schedules,
      forms, statements and other documents required to be filed by it under the
      Exchange Act. The Company has filed (i) its Annual Report on Form 10-KSB for
      its
      fiscal year ended December 31, 2004 and (ii) its Quarterly Report on Form 10-QSB
      for the fiscal quarters ended March 31, 2005, June 30, 2005 and September 30,
      2005 (collectively, the “SEC Reports”). Each SEC Report was, at the time of its
      filing, in substantial compliance with the requirements of its respective form
      and none of the SEC Reports, nor the financial statements (and the notes
      thereto) included in the SEC Reports, as of their respective filing dates,
      contained any untrue statement of a material fact or omitted 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. The
      financial statements of the Company included in the SEC Reports comply as to
      form in all material respects with applicable accounting requirements and the
      published rules and regulations of the Commission or other applicable rules
      and
      regulations with respect thereto. Such financial statements have been prepared
      in accordance with generally accepted accounting principles (“GAAP”) applied on
      a consistent basis during the periods involved (except (i) as may be otherwise
      indicated in such financial statements or the notes thereto or (ii) in the
      case
      of unaudited interim statements, to the extent they may not include footnotes
      or
      may be condensed) and fairly present in all material respects the financial
      condition, the results of operations and the cash flows of the Company and
      its
      subsidiaries, on a consolidated basis, as of, and for, the periods presented
      in
      each such SEC Report.

     

    (b)  The
      Common Stock is listed for trading on the NASD OTCBB and satisfies all
      requirements for the continuation of such listing. The Company has not received
      any notice that its Common Stock will be delisted from the NASD OTCBB (except
      for prior notices which have been fully remedied) or that the Common Stock
      does
      not meet all requirements for the continuation of such listing.

     

    (c)  Neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf, has directly or indirectly made any offers or sales of any security
      or
      solicited any offers to buy any security under circumstances that would cause
      the offering of the Securities pursuant to the Securities Purchase Agreement
      to
      be integrated with prior offerings by the Company for purposes of the Securities
      Act which would prevent the Company from selling the Common Stock pursuant
      to
      Rule 506 under the Securities Act, or any applicable exchange-related
      stockholder approval provisions, nor will the Company or any of its affiliates
      or subsidiaries take any action or steps that would cause the offering of such
      Securities to be integrated with other offerings.

     

    (d)  The
      Company Warrant and the shares of Common Stock which the Purchaser may acquire
      pursuant to the Company Warrant are all restricted securities under the
      Securities Act as of the date of this Agreement. The Company will not issue
      any
      stop transfer order or other order impeding the sale and delivery of any of
      the
      Registrable Securities at such time as such Registrable Securities are
      registered for public sale or an exemption from registration is available,
      except as required by federal or state securities laws.

     

    
      
        
        

      

      
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    (e)  The
      Company understands the nature of the Registrable Securities issuable upon
      the
      exercise of the Company Warrant and recognizes that the issuance of such
      Registrable Securities may have a potential dilutive effect. The Company
      specifically acknowledges that its obligation to issue the Registrable
      Securities is binding upon the Company and enforceable regardless of the
      dilution such issuance may have on the ownership interests of other shareholders
      of the Company.

     

    (f)  The
      Company will at all times have authorized and reserved a sufficient number
      of
      shares of Common Stock for the full the exercise of the Company
      Warrant.

     

    8.  Miscellaneous.

     

    (a)  Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their respective
      obligations under this Agreement, each Holder or the Company, as the case may
      be, in addition to being entitled to exercise all rights granted by law and
      under this Agreement, including recovery of damages, will be entitled to
      specific performance of its rights under this Agreement. 

     

    (b)  No
      Piggyback on Registrations.
      Except
      as and to the extent specified in Schedule 8(b) hereto, neither the Company
      nor
      any of its security holders (other than the Holders in such capacity pursuant
      hereto) may include securities of the Company in any Registration Statement
      other than the Registrable Securities, and the Company shall not after the
      date
      hereof enter into any agreement providing any such right for inclusion of shares
      in the Registration Statement to any of its security holders. Except as and
      to
      the extent specified in Schedule 8(b) hereto, the Company has not previously
      entered into any agreement granting any registration rights with respect to
      any
      of its securities to any Person that have not been fully satisfied.

     

    (c)  Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to the Registration Statement.

     

    (d)  Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of a Discontinuation
      Event (as defined below), such Holder will forthwith discontinue disposition
      of
      such Registrable Securities under the applicable Registration Statement until
      such Holder’s receipt of the copies of the supplemented Prospectus and/or
      amended Registration Statement or until it is advised in writing (the “Advice”)
      by the Company that the use of the applicable Prospectus may be resumed, and,
      in
      either case, has received copies of any additional or supplemental filings
      that
      are incorporated or deemed to be incorporated by reference in such Prospectus
      or
      Registration Statement. The Company may provide appropriate stop orders to
      enforce the provisions of this paragraph. For purposes of this Section 8(d),
      a
“Discontinuation Event” shall mean (i) when the Commission notifies the Company
      whether there will be a “review” of such Registration Statement and whenever the
      Commission comments in writing on such Registration Statement (the Company
      shall
      provide true and complete copies thereof and all written responses thereto
      to
      each of the Holders); (ii) any request by the Commission or any other Federal
      or
      state governmental authority for amendments or supplements to such Registration
      Statement or Prospectus or for additional information; (iii) the issuance by
      the
      Commission of any stop order suspending the effectiveness of such Registration
      Statement covering any or all of the Registrable Securities or the initiation
      of
      any Proceedings for that purpose; (v) the receipt by the Company of any
      notification with respect to the suspension of the qualification or exemption
      from qualification of any of the Registrable Securities for sale in any
      jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; and/or (vi) the occurrence of any event or passage of time that makes
      the financial statements included in such Registration Statement ineligible
      for
      inclusion therein or any statement made in such Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      such
      Registration Statement, Prospectus or other documents so that, in the case
      of
      such Registration Statement or Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading.

     

    
      
        
        

      

      
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    (e)  Piggy-Back
      Registrations.
      If at
      any time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act) or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other employee benefit plans, then the Company
      shall send to each Holder written notice of such determination and, if within
      fifteen days after receipt of such notice, any such Holder shall so request
      in
      writing, the Company shall include in such registration statement all or any
      part of such Registrable Securities such holder requests to be registered to
      the
      extent the Company may do so without violating registration rights of others
      which exist as of the date of this Agreement, subject to customary underwriter
      cutbacks applicable to all holders of registration rights and subject to
      obtaining any required the consent of any selling stockholder(s) to such
      inclusion under such registration statement.

     

    (f)  Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of the then outstanding Registrable
      Securities. Notwithstanding the foregoing, a waiver or consent to depart from
      the provisions hereof with respect to a matter that relates exclusively to
      the
      rights of certain Holders and that does not directly or indirectly affect the
      rights of other Holders may be given by Holders of at least a majority of the
      Registrable Securities to which such waiver or consent relates; provided,
      however, that the provisions of this sentence may not be amended, modified,
      or
      supplemented except in accordance with the provisions of the immediately
      preceding sentence.

     

    
      
        
        

      

      
        -
          9 -

        
          

        

      

      
        
        

      

       

    

    (g)  Notices.
      Any
      notice or request hereunder may be given to the Company or the Purchaser at
      the
      respective addresses set forth below or as may hereafter be specified in a
      notice designated as a change of address under this Section 8(g). Any notice
      or
      request hereunder shall be given by registered or certified mail, return receipt
      requested, hand delivery, overnight mail, Federal Express or other national
      overnight next day carrier (collectively, “Courier”) or telecopy (confirmed by
      mail). Notices and requests shall be, in the case of those by hand delivery,
      deemed to have been given when delivered to any party to whom it is addressed,
      in the case of those by mail or overnight mail, deemed to have been given three
      (3) business days after the date when deposited in the mail or with the
      overnight mail carrier, in the case of a Courier, the next business day
      following timely delivery of the package with the Courier, and, in the case
      of a
      telecopy, when confirmed. The address for such notices and communications shall
      be as follows:

     

    
      	
              If
                to the Company:

            	
              Creative
                Vistas, Inc. 

              Attention: Chief
                Financial Officer

              2100
                Forbes Street, Units-8-10

              Whitby,
                Ontario, L1N 9T3

              Canada

              Telephone: 905.666.8676

              Facsimile: 905.666.9795

            
	 	 
	 	 
	 	 
	 	 
	
               

            	 
	
              If
                to a Purchaser:

            	
              To
                the address set forth under such Purchaser name on the signature
                pages
                hereto.

            
	
               

            	 
	
              If
                to any other Person who is then the registered
                Holder:

            	
              To
                the address of such Holder as it appears in the stock transfer books
                of
                the Company

            

    

    

    or
      such
      other address as may be designated in writing hereafter in accordance with
      this
      Section 8(g) by such Person.

     

    (h)  Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights or obligations hereunder without
      the prior written consent of each Holder. Each Holder may assign their
      respective rights hereunder in the manner and to the Persons as permitted under
      the Securities Purchase Agreement and each Note.

     

    
      
        
        

      

      
        -
          10 -

        
          

        

      

      
        
        

      

       

    

    (i)  Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

    (j)  Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement shall be commenced exclusively in the state
      and
      federal courts sitting in the City of New York, Borough of Manhattan. Each
      party
      hereto hereby irrevocably submits to the exclusive jurisdiction of the state
      and
      federal courts sitting in the City of New York, Borough of Manhattan for the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any Proceeding, any claim that it is not
      personally subject to the jurisdiction of any such court, that such Proceeding
      is improper. Each party hereto hereby irrevocably waives personal service of
      process and consents to process being served in any such Proceeding by mailing
      a
      copy thereof via registered or certified mail or overnight delivery (with
      evidence of delivery) to such party at the address in effect for notices to
      it
      under this Agreement and agrees that such service shall constitute good and
      sufficient service of process and notice thereof. Nothing contained herein
      shall
      be deemed to limit in any way any right to serve process in any manner permitted
      by law. Each party hereto hereby irrevocably waives, to the fullest extent
      permitted by applicable law, any and all right to trial by jury in any legal
      proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby. If either party shall commence a Proceeding to enforce
      any
      provisions of this Agreement, the Securities Purchase Agreement or any Related
      Agreement, then the prevailing party in such Proceeding shall be reimbursed
      by
      the other party for its reasonable attorneys fees and other costs and expenses
      incurred with the investigation, preparation and prosecution of such Proceeding.
      

     

    (k)  Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

     

    (l)  Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their reasonable efforts to
      find and employ an alternative means to achieve the same or substantially the
      same result as that contemplated by such term, provision, covenant or
      restriction. It is hereby stipulated and declared to be the intention of the
      parties that they would have executed the remaining terms, provisions, covenants
      and restrictions without including any of such that may be hereafter declared
      invalid, illegal, void or unenforceable.

     

    
      
        
        

      

      
        -
          11 -

        
          

        

      

      
        
        

      

       

    

    (m)  Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK;

    SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        -
          12 -

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above. 

     

    
      	
              CREATIVE
                VISTAS, INC.

            	 	
              Laurus
                Master Fund, Ltd.

            
	 	 	 
	 	 	 
	
              By:

            	/s/
              DOMINIC BURNS 	 	
              By:

            	/s/
              EUGENE GRIN
	
              Name:

            	Dominic
              Burns	 	
              Name:

            	Eugene
              Grin 
	
              Title:

            	President	 	
              Title:

            	Director 
	 	 	 
	 	 	
              Address
                for Notices:

            
	 	 	 
	 	 	
              825
                Third Avenue − 14th
                Floor

            
	 	 	
              New
                York, NY 10022

            
	 	 	
              Attention: Eugene
                Grin

            
	 	 	
              Facsimile: 212-541-4434

            

    

     

    
      
        
        

      

      
        -
          13 -

        
          

        

      

      
        
        

      

    

     

    Schedule
      8(b)

     

    The
      Company reserves the right to include the following securities of the Company,
      other than the Registrable Securities, in any Registration
      Statement:

     

    750,000
      shares of Common Stock held by Sayan Navaratnam

     

    750,000
      shares of Common Stock held by Dominic Burns

     

    82,500
      shares of Common Stock held by Torys LLPUnassociated Document

     

    CASH
      COLLATERAL DEPOSIT LETTER

     

    As
      of:
      February 13, 2006

     

    Laurus
      Master Fund, Ltd.

     

    825
      Third
      Avenue

     

    New
      York,
      New York 10022

     

    Ladies
      and Gentlemen:

     

    Reference
      is hereby made to the following agreements, as each is amended, modified or
      supplemented from time to time: (i) that certain Securities Purchase Agreement
      dated as of the date hereof by and among Creative Vistas, Inc. (the
“Parent”),
      Iview
      Holding Corp., Iview Digital Video Solutions Inc. (“Iview”)
      and
      Laurus Master Fund, Ltd. (“Laurus”)
      (the
“Securities
      Purchase Agreement”);
      (ii)
      a secured term note in the aggregate principal amount of Eight Million Two
      Hundred and Fifty Thousand Dollars in lawful money of the United States
      (USD$8,250,000) issued by the Parent (the “Company
      Note”);
      (iii)
      a secured term note in the aggregate principal amount of Two Million Dollars
      in
      lawful money of the United States (USD$2,000,000)
      issued by Iview Digital Video Solutions Inc. (the “Iview
      Note”);
      (iv)
      each Related Agreement (as defined in the Securities Purchase Agreement); (v)
      the Securities Purchase Agreement dated as of December 31, 2005 between Cancable
      Inc., Cancable Holding Corp. and Parent, (the “2005
      Securities Purchase Agreement”);
      (vi)
      each Related Agreement as defined in the 2005 Securities Purchase Agreement
      (the
“2005
      Related Agreements”);
      (the
      Securities Purchase Agreement, the Related Agreements, the 2005 Securities
      Purchase Agreement, the 2005 Related Agreements and any and all other agreements
      related to any of the foregoing documents, collectively, the “Laurus
      Documents”).
      Capitalized terms not otherwise defined herein shall be given the meaning
      ascribed to them in the Iview Note.

     

    As
      collateral security for the payment of monetary amounts and all covenants and
      duties regarding such amounts, of any kind or nature, present or future, whether
      or not evidenced by any note, agreement or other instrument, arising under
      the
      Laurus Documents (the “Secured
      Obligations”),
      the
      Parent, Iview and their respective Subsidiaries (as such term is defined in
      the
      Securities Purchase Agreement) acknowledge that USD$500,000 will be on deposit
      with Laurus (the deposit hereinafter referred to as the “Iview
      Closing
      Collateral Deposit”).
      The
      Iview Closing Collateral Deposit shall be held pursuant to the terms of this
      letter. This deposit of the Iview Closing Collateral Deposit shall not
      constitute a redemption of any note or other instrument made by the Parent
      or
      any of its Subsidiaries in favor of Laurus. The Iview Closing Collateral Deposit
      shall be held in an interest bearing deposit account for the benefit of Iview,
      with all interest earned by Laurus thereon being added to the principal amount
      of the Iview Closing Collateral Deposit. On each Repayment Date, Laurus shall
      apply any part of the Iview Closing Collateral Deposit to any payment obligation
      then due and owing to Laurus under the Iview Note. In the event that any Iview
      Obligations remain outstanding after giving effect to any application of the
      Iview Closing Collateral Deposit, Iview shall be liable for any
      deficiency.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Laurus
      and its successors and assigns may, without demand of performance or
      advertisement or notice of any kind to or upon the Parent, Iview or any of
      their
      respective Subsidiaries (each of which demands, advertisements and/or notices
      are hereby expressly waived), immediately upon a default by the Parent, Iview
      or
      any of their respective Subsidiaries in any payment obligation due and owing
      to
      Laurus under any of the Laurus Documents, appropriate and apply all or any
      part
      of the Iview Closing Collateral Deposit to the payment in whole or in part,
      in
      such order as Laurus may elect, of the Secured Obligations until the Secured
      Obligations have been indefeasibly paid in full.

     

    When
      all
      of the Secured Obligations have been paid and/or are otherwise indefeasibly
      paid
      in full and the Laurus Documents irrevocably terminated, any sums still on
      deposit hereunder shall, unless Laurus is instructed by a court of competent
      jurisdiction to the contrary, be returned to Iview.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

       

      This
        letter agreement shall be binding upon and inure to the benefit of the parties
        hereto and their respective successors and assigns and shall be governed
        by and
        construed in accordance with the laws of the State of New York.

       

      Very
        truly yours,

      
        	 	 	
                 

                CANCABLE
                  HOLDING CORP.

              
	 	 	
                 

                By:
                  

              	
                 

                /s/
                  DOMINIC BURNS

              
	 	 	
              	
                Name:
                  Dominic Burns

                Title:
                  President

              

      

      

      
        	 	 	
                 

                IVIEW
                  DIGITAL VIDEO SOLUTIONS INC.

              
	 	 	
                 

                By:

              	
                 

                /s/
                  SAYAN NAVARATNAM

              
	 	 	 	
                Name:
                  Sayan Navaratnam

                Title:
                  President

              

      

      

      
        	 	 	
                CANCABLE
                  INC.

              
	 	 	
                 

                By:

              	
                 

                /s/
                  HEUNG HUNG LEE

              
	 	 	 	
                Name:
                  Heung Hung Lee

                Title:
                  Secretary

              

      

      

      
        	 	 	
                CANCABLE,
                  INC.

              
	 	 	
                By:

              	
                /s/
                  ROSS JEPSON

              
	 	 	 	
                Name:
                  Ross Jepson

                Title:
                  President and Secretary

              

      

      

      
        	 	 	
                CREATIVE
                  VISTAS, INC.

              
	 	 	
                 

                By:

              	
                 

                /s/
                  DOMINIC BURNS

              
	 	 	 	
                Name:
                  Dominic Burns

                Title:
                  President

              

      

      

      
        	 	 	
                CREATIVE
                  VISTAS ACQUISITION CORP. 

              
	 	 	
                 

                By:

              	
                 

                /s/
                  SAYAN NAVARATNAM

              
	 	 	 	
                Name:
                  Sayan Navaratnam

                Title:
                  President and Secretary

              

      

      

      
        	 	 	
                A.C.
                  TECHNICAL SYSTEMS LTD.

              
	 	 	
                 

                By:

              	
                 

                /s/
                  DOMINIC BURNS

              
	 	 	 	
                Name:
                  Dominic Burns

                Title:
                  President and Secretary

              

      

      

      
        	 	 	
                IVIEW
                  HOLDING CORP.

              
	 	 	
                 

                By:

              	
                 

                /s/
                  DOMINIC BURNS

              
	 	 	 	
                Name:
                  Dominic Burns

                Title:
                  President

              

      

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      Accepted
        and Acknowledged by:

      
        	
                 

                LAURUS
                  MASTER FUND, LTD.

                 

              
	
                 

                By:

              	
                 

                /s/
                  EUGENE GRIN

              	
              
	 	
                Name:
                  Eugene Grin

                Title:
                  Director

                 

              

      

       

       

      
        
           

        

        
          4

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