Document:

Orgenesis Inc. - Exhibit 10.4 - Filed by newsfilecorp.com

REGISTRATION RIGHTS AGREEMENT 

THIS REGISTRATION RIGHTS AGREEMENT (hereinafter referred
to as the “Agreement”), dated December 13, 2013 by and between 

Orgenesis, Inc., a Nevada corporation, with its principal
office at 21 Sparrow Circle, White Plains, NY, 10605 (hereinafter referred to as
the “Company”),

and

Kodiak Capital Group, LLC, a Delaware limited liability
company, with its principal office at 260 Newport Center Drive, Newport Beach,
CA, 92660 (hereinafter referred to as the “Holder”). 

            WHEREAS,
in connection with the Investment Agreement by and between the Company and
the Investor of equal date as the Agreement hereto (the “Investment Agreement”),
the Company has agreed to issue and sell to the Investor an indeterminate number
of shares of the Company’s Common Stock par value $0.0001 per share (the “Common
Stock”), to be purchased pursuant to the terms and subject to the conditions set
forth in the Investment Agreement, which is hereby incorporated by reference;
and

            WHEREAS,
to induce the Investor to execute and deliver the Investment Agreement, the
Company has agreed to provide certain registration rights under the Securities
Act of 1933, as amended, and the rules and regulations thereunder, or any
similar successor statute (collectively, the “1933 Act”), and applicable state
securities laws, with respect to the shares of Common Stock issuable pursuant to
the Investment Agreement. 

            NOW
THEREFORE, in consideration of the foregoing promises and the mutual
covenants contained hereinafter and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Investor hereby agree as follows:

Section 1. DEFINITIONS. 

As used in this Agreement, the following terms shall have the
following meanings: 

           
“Execution Date” means the date of this Agreement set forth above. 

           
“Investor” means Kodiak Capital Group, LLC, a Delaware Limited Liability
Company. 

            “Person”
means a corporation, a limited liability company, an association, a partnership,
an organization, a business, an individual, a governmental or political
subdivision thereof or a governmental agency.

1 

            “Potential
Material Event” means any of the following: (i) the possession by the
Company of material information not ripe for disclosure in the Registration
Statement, which shall be evidenced by determinations in good faith by the Board
of Directors of the Company that disclosure of such information in the
Registration Statement would be detrimental to the business and affairs of the
Company, or (ii) any material engagement or activity by the Company which
would, in the good faith determination of the Board of Directors of the Company,
be adversely affected by disclosure in the Registration Statement at such time,
which determination shall be accompanied by a good faith determination by the
Board of Directors of the Company that the Registration Statement would be
materially misleading absent the inclusion of such information. 

            “Principal
Market” shall mean The American Stock Exchange, National Association of
Securities Dealer’s, Inc., Over-the-Counter electronic bulletin board, the
OTCQB, the Nasdaq National Market or The Nasdaq SmallCap Market whichever is the
principal market on which the Common Stock of the Company is listed.

            “Register,”
“Registered,” and “Registration” refer to the Registration
effected by preparing and filing one (1) or more Registration Statements in
compliance with the 1933 Act and pursuant to Rule 415 under the 1933 Act or any
successor rule providing for offering securities on a continuous basis
(hereinafter referred to as “Rule 415”), and the declaration or ordering
of effectiveness of such Registration Statement(s) by the United States
Securities and Exchange Commission (hereinafter referred to as the
“SEC”). 

            “Registrable
Securities” means (i) the shares of Common Stock issued or issuable
pursuant to the Investment Agreement, and (ii) any shares of capital
stock issued or issuable with respect to such shares of Common Stock, if any, as
a result of any stock split, stock dividend, recapitalization, exchange or
similar event or otherwise, which have not been (x) included in the
Registration Statement that has been declared effective by the SEC, or
(y) sold under circumstances meeting all of the applicable conditions of
Rule 144 (or any similar provision then in force) under the 1933 Act. 

            “Registration
Statement” means the registration statement of the Company filed under the
1933 Act covering the Registrable Securities. 

           All
capitalized terms used in this Agreement and not otherwise defined herein shall
have the same meaning ascribed to them as in the Investment Agreement.

Section 2. REGISTRATION. 

            (a)
The Company shall, within thirty (30) days of the date of this Agreement,
file with the SEC the Registration Statement or Registration Statements (as is
necessary) on Form S-1 (or, if such form is unavailable for such a registration,
on such other form as is available for such registration), covering the resale
of all of the Registrable Securities, which Registration Statement(s) shall
state that, in accordance with Rule 416 promulgated under the 1933 Act, such
Registration Statement also covers such indeterminate number of additional
shares of Common Stock as may become issuable upon stock splits, stock dividends
or similar transactions. The Company shall initially register for resale 8,500,000 shares of
Common Stock unless the SEC requires the share amount to be reduced as a
condition of effectiveness. 

2 

            (b)
The Company shall use commercially reasonable efforts to have the
Registration Statement(s) declared effective by the SEC within ninety (90)
calendar days after the Execution Date.

            (c)
The Company agrees not to include more than 3,500,000 other shares in the
Registration Statement covering the Registrable Securities without Investor’s
prior written consent which Investor may withhold in its sole discretion.
Furthermore, the Company agrees that it will not file any other Registration
Statement for other securities, until thirty calendar days after the
Registration Statement for the Registrable Securities is declared effective by
the SEC. 

Section 3. RELATED OBLIGATIONS. 

            At
such time as the Company is obligated to prepare and file the Registration
Statement with the SEC pursuant to Section 2(a), the Company will effect the
registration of the Registrable Securities in accordance with the intended
method of disposition thereof and, with respect thereto, the Company shall have
the following obligations: 

            (a)
The Company shall use commercially reasonable efforts to cause such
Registration Statement relating to the Registrable Securities to become
effective within ninety (90) days after the Execution Date and shall keep such
Registration Statement effective until the earlier to occur of the date on which
(A) the Investor shall have sold all the Registrable Securities; or
(B) the Investor has no right to acquire any additional shares of Common
Stock under the Investment Agreement; or (C) the Investor may sell the
Registerable Securities without volume limitations under Rule 144 (hereinafter
referred to as the “Registration Period”). The Registration Statement
(including any amendments or supplements thereto and prospectuses contained
therein) shall not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading. The Company shall use all commercially reasonable efforts to respond
to all SEC comments within seven (7) business days from receipt of such comments
by the Company. The Company shall use all commercially reasonable efforts to
cause the Registration Statement relating to the Registrable Securities to
become effective no later than five (5) business days after notice from the SEC
that the Registration Statement may be declared effective. The Investor agrees
to provide all information which it is required by law to provide to the
Company, including the intended method of disposition of the Registrable
Securities, and the Company’s obligations set forth above shall be conditioned
on the receipt of such information. 

            (b)
The Company shall prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to the Registration Statement and the
prospectus used in connection with such Registration Statement, which prospectus
is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may be
necessary to keep such Registration Statement effective during the Registration
Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable
Securities of the Company covered by such Registration Statement until such time
as all of such Registrable Securities shall have been disposed of in accordance
with the intended methods of disposition by the Investor thereof as set forth in
such Registration Statement. In the event the number of shares of Common Stock
covered by the Registration Statement filed pursuant to this Agreement is at any
time insufficient to cover all of the Registrable Securities, the Company shall
amend such Registration Statement, or file a new Registration Statement (on the
short form available therefor, if applicable), or both, so as to cover all of
the Registrable Securities, in each case, as soon as practicable, but in any
event within thirty (30) calendar days after the necessity therefor arises
(based on the then Purchase Price of the Common Stock and other relevant factors
on which the Company reasonably elects to rely), assuming the Company has
sufficient authorized shares at that time, and if it does not, within thirty
(30) calendar days after such shares are authorized. The Company shall use
commercially reasonable efforts to cause such amendment and/or new Registration
Statement to become effective as soon as practicable following the filing
thereof.

3 

            (c)
The Company shall make available to the Investor whose Registrable
Securities are included in any Registration Statement and its legal counsel
without charge:

	 	(i) 	
      promptly after the same is prepared and filed with the
      SEC at least one (1) copy of such Registration Statement and any
      amendment(s) thereto, including financial statements and schedules, all
      documents incorporated therein by reference and all exhibits, the
      prospectus included in such Registration Statement (including each
      preliminary prospectus) and, with regards to such Registration
      Statement(s), any correspondence by or on behalf of the Company to the SEC
      or the staff of the SEC and any correspondence from the SEC or the staff
      of the SEC to the Company or its representatives;

	 	 	 
	 	(ii) 	
      upon the effectiveness of any Registration Statement, the
      Company shall make available copies of the prospectus, via EDGAR, included
      in such Registration Statement and all amendments and supplements thereto;
      and

	 	 	 
	 	(iii) 	
      such other documents, including copies of any preliminary
      or final prospectus, as the Investor may reasonably request from time to
      time in order to facilitate the disposition of the Registrable
      Securities.

           
(d) The Company shall use commercially reasonable efforts
to:

	 	(i) 	
      if required to sell the Registrable Securities to the
      Investor, register and qualify the Registrable Securities covered by the
      Registration Statement under such other securities or “blue sky” laws of
      Delaware;

	 	 	 
	 	(ii) 	
      prepare and file in those jurisdictions, such amendments
      (including post- effective amendments) and supplements to such
      registrations and qualifications as may be necessary to maintain the
      effectiveness thereof during the Registration
Period;

4 

	 	(iii) 	
      take such other actions as may be necessary to maintain
      such registrations and qualifications in effect at all times during the
      Registration Period, and

	 	 	 	 
	 	(iv) 	
      take all other actions reasonably necessary or advisable
      to qualify the Registrable Securities for sale in such jurisdictions;
      provided, however, that the Company shall not be required in
      connection therewith or as a condition thereto to:

	 	 	 	 
	 		a. 	
      qualify to do business in any jurisdiction where it would
      not otherwise be required to qualify but for this Section 3(d),
  or

	 	 	 	 
	 		b. 	
      subject itself to general taxation in any such
      jurisdiction.

The Company shall promptly notify the Investor who holds
Registrable Securities of the receipt by the Company of any notification with
respect to the suspension of the registration or qualification of any of the
Registrable Securities for sale under the securities or “blue sky” laws of any
jurisdiction in the United States or its receipt of actual notice of the
initiation or threatening of any proceeding for such purpose. 

            (e)
As promptly as practicable after becoming aware of such event, the Company
shall notify Investor in writing of the happening of any event as a result of
which the prospectus included in the Registration Statement, as then in effect,
includes an untrue statement of a material fact or omission to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading
(hereinafter referred to as “Registration Default”) and use all diligent
efforts to promptly prepare a supplement or amendment to such Registration
Statement and take any other necessary steps to cure the Registration Default
(which, if such Registration Statement is on Form S-3, may consist of a document
to be filed by the Company with the SEC pursuant to Section 13(a), 13(c), 14 or
15(d) of the 1934 Act (as defined below) and to be incorporated by reference in
the prospectus) to correct such untrue statement or omission, and make available
copies of such supplement or amendment to the Investor. The Company shall also
promptly notify the Investor:

	 	(i) 	
      When a prospectus or any prospectus supplement or
      post-effective amendment has been filed, and when the Registration
      Statement or any post-effective amendment has become effective (the
      Company will prepare notification of such effectiveness which shall be
      delivered to the Investor on the same day of such effectiveness and by
      overnight mail), additionally, the Company will promptly provide to the
      Investor, a copy of the effectiveness order prepared by the SEC once it is
      received by the Company;

	 	 	 
	 	(ii) 	
      Of any request by the SEC for amendments or supplements
      to the Registration Statement or related prospectus or related
      information;

	 	 	 
	 	(iii) 	
      Of the Company’s reasonable determination that a
      post-effective amendment to the Registration Statement would be
      appropriate;

5 

	 	(iv) 	
      In the event the Registration Statement is no longer
      effective; and / or

	 	 	 
	 	(v) 	
      If the Registration Statement is stale as a result of the
      Company’s failure to timely file its financials or
  otherwise.

The Company acknowledges that its failure to cure the
Registration Default within ten (10) business days will cause the Investor to
suffer damages in an amount that will be difficult to ascertain. Accordingly,
the parties agree that it is appropriate to include a provision for liquidated
damages. The parties acknowledge and agree that the liquidated damages provision
set forth in this section represents the parties’ good faith effort to quantify
such damages and, as such, agree that the form and amount of such liquidated
damages are reasonable and will not constitute a penalty. It is the intention of
the parties that interest payable under any of the terms of this Agreement shall
not exceed the maximum amount permitted under any applicable law. If a law,
which applies to this Agreement, which sets the maximum interest amount, is
finally interpreted so that the interest in connection with this Agreement
exceeds the permitted limits, then: (1) any such interest shall be
reduced by the amount necessary to reduce the interest to the permitted limit;
and (2) any sums already collected (if any) from the Company which exceed
the permitted limits will be refunded to the Company. The Investor may choose to
make this refund by reducing the amount that the Company owes under this
Agreement or by making a direct payment to the Company. If a refund reduces the
amount that the Company owes the Investor, the reduction will be treated as a
partial payment.

            (f)
The Company shall use all commercially reasonable efforts to prevent the
issuance of any stop order or other suspension of effectiveness of the
Registration Statement, or the suspension of the qualification of any of the
Registrable Securities for sale in any jurisdiction and, if such an order or
suspension is issued, to obtain the withdrawal of such order or suspension at
the earliest possible moment and to notify the Investor holding Registrable
Securities being sold of the issuance of such order and the resolution thereof
or its receipt of actual notice of the initiation or threat of any proceeding
concerning the effectiveness of the registration statement. 

            (g)
The Company shall permit the Investor and one (1) legal counsel, designated
by the Investor, to review and comment upon the Registration Statement and all
amendments and supplements thereto at least one (1) calendar day prior to their
filing with the SEC. However, any postponement of a filing of a Registration
Statement or any postponement of a request for acceleration or any postponement
of the effective date or effectiveness of a Registration Statement by written
request of the Investor (collectively, the "Investor's Delay") shall not act to
trigger any penalty of any kind, or any cash amount due or any in-kind amount
due the Investor from the Company under any and all agreements of any nature or
kind between the Company and the Investor. The event(s) of an Investor's Delay
shall act to suspend all obligations of any kind or nature of the Company under
any and all agreements of any nature or kind between the Company and the
Investor.

            (h)
At the request of the Investor, the Company's counsel shall furnish to the
Investor an opinion letter confirming the effectiveness of the registration
statement. Such opinion letter shall be issued as of the date of the effectiveness of the
registration statement and be in a form suitable to the Investor.

6 

            (i)
The Company shall hold in confidence and not make any disclosure of
information concerning the Investor (other than the Investor’s name, address and
jurisdiction of incorporation, and except for filing of the Investment Agreement
and this Registration Rights Agreement on EDGAR) unless:

	 	(i) 	
      Disclosure of such information is necessary to comply
      with federal or state securities laws, or is requested by the Securities
      and Exchange Commission in connection with registration of the Registrable
      Securities or otherwise;

	 	 	 
	 	(ii) 	
      The disclosure of such information is necessary to avoid
      or correct a misstatement or omission in any Registration
  Statement;

	 	 	 
	 	(iii) 	
      The release of such information is ordered pursuant to a
      subpoena or other final, non-appealable order from a court or governmental
      body of competent jurisdiction; or

	 	 	 
	 	(iv) 	
      Such information has been made generally available to the
      public other than by disclosure in violation of this Agreement or any
      other agreement.

The Company agrees that it shall, upon learning that disclosure
of such information concerning the Investor is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt
written notice to the Investor and allow the Investor, at the Investor’s
expense, to undertake appropriate action to prevent disclosure of, or to obtain
a protective order covering such information. 

            (j)
The Company shall use all commercially reasonable efforts to maintain
designation and quotation of all the Registrable Securities covered by any
Registration Statement on the Principal Market. If, despite the Company’s
commercially reasonable efforts, the Company is unsuccessful in satisfying the
preceding sentence, it shall use commercially reasonable efforts to cause all
the Registrable Securities covered by any Registration Statement to be listed on
each other national securities exchange or automated quotation system, if any,
on which securities of the same class or series issued by the Company are then
listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange or system. The Company shall pay all fees and
expenses in connection with satisfying its obligation under this Section 3(j).

            (k)
The Company shall cooperate with the Investor to facilitate the prompt
preparation and delivery of certificates representing the Registrable Securities
to be offered pursuant to the Registration Statement and enable such
certificates to be in such denominations or amounts, as the case may be, as the
Investor may reasonably request (and after any sales of such Registrable
Securities by the Investor, such certificates not bearing any restrictive
legend). 

7 

            (l)
The Company shall provide a transfer agent for all the Registrable
Securities not later than the effective date of the first Registration Statement
filed pursuant hereto. 

           
(m) If requested by the Investor, the Company shall:

	 	(i) 	
      As soon as reasonably practical incorporate in a
      prospectus supplement or post-effective amendment such information as the
      Investor reasonably determines should be included therein relating to the
      sale and distribution of Registrable Securities, including, without
      limitation, information with respect to the offering of the Registrable
      Securities to be sold in such offering;

	 	 	 
	 	(ii) 	
      Make all required filings of such prospectus supplement
      or post-effective amendment as soon as reasonably possible after being
      notified of the matters to be incorporated in such prospectus supplement
      or post-effective amendment; and

	 	 	 
	 	(iii) 	
      Supplement or make amendments to any Registration
      Statement if reasonably requested by the Investor.

            (n)
The Company shall use commercially reasonable efforts to cause the
Registrable Securities covered by the applicable Registration Statement to be
registered with or approved by such other governmental agencies or authorities
as may be necessary to facilitate the disposition of such Registrable
Securities. 

            (o)
The Company shall otherwise use commercially reasonable efforts to comply
with all applicable rules and regulations of the SEC in connection with any
registration hereunder. 

            (p)
Within one (1) business day after the Registration Statement which includes
Registrable Securities is declared effective by the SEC, the Company shall
deliver to the transfer agent for such Registrable Securities, with copies to
the Investor, confirmation that such Registration Statement has been declared
effective by the SEC. 

            (q)
The Company shall take all other reasonable actions necessary to expedite
and facilitate disposition by the Investor of Registrable Securities pursuant to
the Registration Statement. 

Section 4. OBLIGATIONS OF THE
INVESTOR. 

            (a)
At least five (5) calendar days prior to the first anticipated filing date
of the Registration Statement the Company shall notify the Investor in writing
of the information the Company requires from the Investor for the Registration
Statement. It shall be a condition precedent to the obligations of the Company
to complete the registration pursuant to this Agreement with respect to the
Registrable Securities and the Investor agrees to furnish to the Company that
information regarding itself, the Registrable Securities and the intended method
of disposition of the Registrable Securities as shall reasonably
be required to effect the registration of such Registrable Securities and the
Investor shall execute such documents in connection with such registration as
the Company may reasonably request. The Investor covenants and agrees that, in
connection with any sale of Registrable Securities by it pursuant to the
Registration Statement, it shall comply with the “Plan of Distribution” section
of the then current prospectus relating to such Registration Statement. 

8 

            (b)
The Investor, by its acceptance of the Registrable Securities, agrees to
cooperate with the Company as reasonably requested by the Company in connection
with the preparation and filing of any Registration Statement hereunder, unless
the Investor has notified the Company in writing of an election to exclude all
of the Investor’s Registrable Securities from such Registration Statement.

            (c)
The Investor agrees that, upon receipt of written notice from the Company of
the happening of any event of the kind described in Section 3(f) or the first
sentence of 3(e), the Investor will immediately discontinue disposition of
Registrable Securities pursuant to any Registration Statement(s) covering such
Registrable Securities until the Investor’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(f) or the first
sentence of 3(e). 

Section 5. EXPENSES OF REGISTRATION. 

            All
expenses, other than underwriting discounts and commissions and other than as
set forth in the Investment Agreement, incurred in connection with or in any way
related to registrations including comments, filings or qualifications pursuant
to Sections 2 and 3, including, without limitation, all registration, listing
and qualifications fees, printing and accounting fees, and fees and
disbursements of counsel for the Company shall be paid by the Company. 

Section 6. INDEMNIFICATION. 

            In
the event any Registrable Securities are included in the Registration Statement
under this Agreement: 

            (a)
To the fullest extent permitted by law, the Company, under this Agreement,
will, and hereby does, indemnify, hold harmless and defend the Investor who
holds Registrable Securities, the directors, officers, partners, employees,
counsel, agents, representatives of, and each Person, if any, who controls, any
Investor within the meaning of the 1933 Act or the Securities Exchange Act of
1934, as amended (hereinafter referred to as the “1934 Act”) (each, hereinafter
referred to as an “Indemnified Person”), against any and all losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, attorneys’
fees, amounts paid in settlement or expenses, joint or several (collectively,
hereinafter referred to as “Claims”), incurred in investigating, preparing or
defending any action, claim, suit, inquiry, proceeding, investigation or appeal
taken from the foregoing by or before any court or governmental, administrative
or other regulatory agency, body or the SEC, whether pending or threatened, whether or not
an indemnified party is or may be a party thereto (hereinafter referred to as
“Indemnification Damages”), to which any of them may become subject insofar as
such Claims (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon:

9 

	 	(i) 	
      Any untrue statement or alleged untrue statement of a
      material fact in the Registration Statement or any post-effective
      amendment thereto or in any filing made in connection with the
      qualification of the offering under the securities or other “blue sky”
      laws of any jurisdiction in which the Investor has requested in writing
      that the Company register or qualify the Shares (hereinafter referred to
      as “Blue Sky Filing”), or the omission or alleged omission to state a
      material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which the
      statements therein were made, not misleading;

	 	 	 
	 	(ii) 	
      Any untrue statement or alleged untrue statement of a
      material fact contained in the final prospectus (as amended or
      supplemented, if the Company files any amendment thereof or supplement
      thereto with the SEC) or the omission or alleged omission to state therein
      any material fact necessary to make the statements made therein, in light
      of the circumstances under which the statements therein were made, not
      misleading, or

	 	 	 
	 	(iii) 	
      Any violation or alleged violation by the Company of the
      1933 Act, the 1934 Act, any other law, including, without limitation, any
      state securities law, or any rule or regulation thereunder relating to the
      offer or sale of the Registrable Securities pursuant to the Registration
      Statement (the matters in the foregoing clauses (i) through (iii) being,
      collectively, hereinafter referred to as
“Violations”).

Subject to the restrictions set forth in Section 6(c) the
Company shall reimburse the Investor and each such controlling person, promptly
as such expenses are incurred and are due and payable, for any reasonable legal
fees or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim. Notwithstanding anything to the
contrary contained herein, the indemnification agreement contained in this
Section 6(a):

	 	1) 	
      Shall not apply to a Claim arising out of or based upon a
      Violation which is due to the inclusion in the Registration Statement of
      the information furnished to the Company by any Indemnified Person
      expressly for use in connection with the preparation of the Registration
      Statement or any such amendment thereof or supplement thereto;

	 	 	 	 
	 	2) 	
      Shall not be available to the extent such Claim is based
      on:

	 	 	 	 
	 		a. 	
      A failure of the Investor to deliver or to cause to be
      delivered the prospectus made available by the Company;
  or

10 

	 	b. 	
      The Indemnified Person’s use of an incorrect prospectus
      despite being promptly advised in advance by the Company in writing not to
      use such incorrect prospectus; or

	 	 	 
	 	c. 	
      Any claims based on the manner of sale of the Registrable
      Securities by the Investor or of the Investor’s failure to register as a
      dealer under applicable securities laws; or

	 	 	 
	 	d. 	
      Any omission of the Investor to notify the Company of any
      material fact that should be stated in the Registration Statement or
      prospectus relating to the Investor or the manner of sale; or

	 	 	 
	 	e. 	
      Any amounts paid in settlement of any Claim if such
      settlement is effected without the prior written consent of the Company,
      which consent shall not be unreasonably withheld. Such indemnity shall
      remain in full force and effect regardless of any investigation made by or
      on behalf of the Indemnified Person and shall survive the resale of the
      Registrable Securities by the Investor pursuant to the Registration
      Statement.

            (b)
In connection with any Registration Statement in which Investor is
participating, the Investor agrees to severally and jointly indemnify, hold
harmless and defend, to the same extent and in the same manner as is set forth
in Section 6(a), the Company, each of its directors, each of its officers who
signs the Registration Statement, each Person, if any, who controls the Company
within the meaning of the 1933 Act or the 1934 Act and the Company’s agents
(collectively and together with an Indemnified Person, hereinafter referred to
as an “Indemnified Party”), against any Claim or Indemnified Damages to
which any of them may become subject, under the 1933 Act, the 1934 Act or
otherwise, insofar as such Claim or Indemnified Damages arise out of or are
based upon any Violation, in each case to the extent, and only to the extent,
that such Violation is due to the inclusion in the Registration Statement of the
written information furnished to the Company by the Investor expressly for use
in connection with such Registration Statement; and, subject to Section 6(c),
the Investor will reimburse any legal or other expenses reasonably incurred by
them in connection with investigating or defending any such Claim; provided,
however, that the indemnity agreement contained in this Section 6(b) and the
agreement with respect to contribution contained in Section 7 shall not apply to
amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of the Investor, which consent shall not be
unreasonably withheld; provided, further, however, that the Investor shall only
be liable under this Section 6(b) for that amount of a Claim or Indemnified
Damages as does not exceed the net proceeds to such Investor as a result of the
sale of Registrable Securities pursuant to such Registration Statement. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive the resale of
the Registrable Securities by the Investor pursuant to the Registration
Statement. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(b) with respect to any
preliminary prospectus shall not inure to the benefit of any Indemnified Party
if the untrue statement or omission of material fact contained in the
preliminary prospectus were corrected on a timely basis in the prospectus, as then amended or supplemented. This
indemnification provision shall apply separately to each Investor and liability
hereunder shall not be joint and several.

11 

            (c)
Promptly after receipt by an Indemnified Person or Indemnified Party under
this Section 6 of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving a Claim, such
Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is
to be made against any indemnifying party under this Section 6, deliver to the
indemnifying party a written notice of the commencement thereof, and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying party and the Indemnified Person or
the Indemnified Party, as the case may be; provided, however, that an
Indemnified Person or Indemnified Party shall have the right to retain its own
counsel with the fees and expenses to be paid by the indemnifying party, if, in
the reasonable opinion of counsel retained by the Indemnified Person or
Indemnified Party, the representation by counsel of the Indemnified Person or
Indemnified Party and the indemnifying party would be inappropriate due to
actual or potential differing interests between such Indemnified Person or
Indemnified Party and any other party represented by such counsel in such
proceeding. The indemnifying party shall pay for only one (1) separate legal
counsel for the Indemnified Persons or the Indemnified Parties, as applicable,
and such counsel shall be selected by the Investor, if the Investor is entitled
to indemnification hereunder, or the Company, if the Company is entitled to
indemnification hereunder, as applicable. The Indemnified Party or Indemnified
Person shall cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or Claim by the indemnifying party and
shall furnish to the indemnifying party all information reasonably available to
the Indemnified Party or Indemnified Person which relates to such action or
Claim. The indemnifying party shall keep the Indemnified Party or Indemnified
Person fully apprised at all times as to the status of the defense or any
settlement negotiations with respect thereto. No indemnifying party shall be
liable for any settlement of any action, claim or proceeding affected without
its written consent, provided, however, that the indemnifying party shall not
unreasonably withhold, delay or condition its consent. No indemnifying party
shall, without the consent of the Indemnified Party or Indemnified Person,
consent to entry of any judgment or enter into any settlement or other
compromise which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such Indemnified Party or Indemnified Person of a
release from all liability in respect to such Claim. Following indemnification
as provided for hereunder, the indemnifying party shall be subrogated to all
rights of the Indemnified Party or Indemnified Person with respect to all third
parties, firms or corporations relating to the matter for which indemnification
has been made. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not
relieve such indemnifying party of any liability to the Indemnified Person or
Indemnified Party under this Section 6, except to the extent that the
indemnifying party is prejudiced in its ability to defend such action. 

            (d)
The indemnity agreements contained herein shall be in addition to (i)
any cause of action or similar right of the Indemnified Party or Indemnified
Person against the indemnifying party or others, and (ii) any liabilities
the indemnifying party may be subject to pursuant to the law. 

12 

Section 7. CONTRIBUTION. 

            To
the extent any indemnification by an indemnifying party is prohibited or limited
by law, the indemnifying party agrees to make the maximum contribution with
respect to any amounts for which it would otherwise be liable under Section 6 to
the fullest extent permitted by law; provided, however, that: (i)
no contribution shall be made under circumstances where the maker would not have
been liable for indemnification under the fault standards set forth in Section
6; (ii) no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any seller of Registrable Securities who was not
guilty of fraudulent misrepresentation; and (iii) contribution by any
seller of Registrable Securities shall be limited in amount to the net amount of
proceeds received by such seller from the sale of such Registrable Securities.

Section 8. REPORTS UNDER THE 1934
ACT. 

            With
a view to making available to the Investor the benefits of Rule 144 promulgated
under the 1933 Act or any other similar rule or regulation of the SEC that may
at any time permit the Investor to sell securities of the Company to the public
without registration (“Rule 144”), provided that the Investor holds any
Registrable Securities are eligible for resale under Rule 144 (k), the Company
agrees to: 

	 	(a) 	
      Make and keep public information available, as those
      terms are understood and defined in Rule 144; and

	 	 	 	 
	 	(b) 	
      File with the SEC in a timely manner all reports and
      other documents required of the Company under the 1933 Act and the 1934
      Act so long as the Company remains subject to such requirements (it being
      understood that nothing herein shall limit the Company’s obligations under
      Section 5(c) of the Investment Agreement) and the filing of such reports
      and other documents is required for the applicable provisions of Rule 144;
      and

	 	 	 	 
	 	(c) 	
      Furnish to the Investor, promptly upon request:

	 	 	 	 
	 		a. 	
      A written statement by the Company that it has complied
      with the reporting requirements of Rule 144, the 1933 Act and the 1934
      Act,

	 	 	 	 
	 		b. 	
      A copy of the most recent annual or quarterly report of
      the Company and such other reports and documents so filed by the Company,
      and (iii) such other information as may be reasonably requested to
      permit the Investor to sell such securities pursuant to Rule 144 without
      registration.

Section 9. NO ASSIGNMENT OF REGISTRATION
RIGHTS. 

13 

           
The rights and obligations under this Agreement shall not be assignable. 

Section 10. AMENDMENT OF REGISTRATION
RIGHTS. 

            The
provisions of this Agreement may be amended only with the written consent of the
Company and Investor.

Section 11. MISCELLANEOUS. 

            (a)
Any notices or other communications required or permitted to be given under
the terms of this Agreement that must be in writing will be deemed to have been
delivered (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided a confirmation of transmission is
mechanically or electronically generated and kept on file by the sending party)
or an email transmission; or (iii) one (1) day after deposit with a
nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be: 

           
If to the Company:

Orgenesis, Inc. 
21 Sparrow Circle

White Plains NY 10605 

Email: dov.w@orgenesis.com and pbd-v@zahav.net.il 

           
If to the Investor: 

Kodiak Capital Group, LLC 
260
Newport Center Drive 
Newport Beach CA 92660 

Email: ryan@kodiak-capital.us 

            Each
party shall provide five (5) business days prior notice to the other party of
any change in address, phone number, email or facsimile number. 

            (b)
Failure of any party to exercise any right or remedy under this Agreement or
otherwise, or delay by a party in exercising such right or remedy, shall not
operate as a waiver thereof. 

            (c)
This Agreement and the Transaction Documents constitute the entire agreement
among the parties hereto with respect to the subject matter hereof and thereof.
There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein and therein. 

14 

            (d)
This Agreement and the Transaction Documents supersede all prior agreements
and understandings among the parties hereto with respect to the subject matter
hereof and thereof. 

            (e)
The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof. Whenever required by the
context of this Agreement, the singular shall include the plural and masculine
shall include the feminine. This Agreement shall not be construed as if it had
been prepared by one of the parties, but rather as if all the parties had
prepared the same. 

            (f)
This Agreement may be executed in two or more identical counterparts, each
of which shall be deemed an original but all of which shall constitute one and
the same agreement. This Agreement, once executed by a party, may be delivered
to the other party hereto by facsimile transmission of a copy of this Agreement
bearing the signature of the party so delivering this Agreement. 

            (g)
Each party shall do and perform, or cause to be done and performed, all such
further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby.

            (h)
In case any provision of this Agreement is held by a court of competent
jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is
enforceable to the maximum extent possible, and the validity and enforceability
of the remaining provisions of this Agreement will not in any way be affected or
impaired thereby. The normal rule of construction and contractual interpretation
that ambiguities should be held against the drafting party is not operative
under this agreement. 

Section 12. DISPUTES SUBJECT TO ARBITRATION
GOVERNED BY NEW YORK LAW 

      
     All disputes arising under this agreement shall be
governed by and interpreted in accordance with the laws of the State of New York
without regard to principles of conflict of laws. The parties to this agreement
will submit all disputes arising under this agreement to arbitration in New York
City, State of New York before a single arbitrator of the American Arbitration
Association (“AAA”). The arbitrator shall be selected by application of the
rules of the AAA, or by mutual agreement of the parties, except that such
arbitrator shall be an attorney admitted to practice law in New York, New York.
No party to this agreement will challenge the jurisdiction or venue provisions
as provided in this section. Nothing contained herein shall prevent the party
from obtaining an order to compel arbitration under NY CPLR Article 75. Nothing
contained herein shall prevent the party from obtaining injunctive relief. 

15 

SIGNATURE PAGE OF REGISTRATION RIGHTS AGREEMENT 

Your signature on this Signature Page evidences your agreement
to be bound by the terms and conditions of the Investment Agreement and the
Registration Rights Agreement as of the date first written above. The
undersigned signatory hereby certifies that he has read and understands the
Registration Rights Agreement, and the representations made by the undersigned
in this Registration Rights Agreement are true and accurate, and agrees to be
bound by its terms.

KODIAK CAPITAL GROUP, LLC 

__________________________________

ORGENESIS, INC. 
 

	 
	Sav DiPasquale 
	President & CEO 

16goldreserveformf3aex4_5.htm - Generated by SEC Publisher for SEC Filing

 

Exhibit
4.5

 

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this “Agreement”)
is entered into as of August 27, 2013 (the “Closing Date”) by and among Gold Reserve Inc., a corporation existing under
the laws of the Yukon Territory, Canada (the “Company”),  the parties set forth on Exhibit A attached
hereto (each a “Stockholder” and collectively,
the “Stockholders”) and any other Eligible Sellers (as defined below)
who may become a party to this Agreement on or after the Closing Date.  Capitalized
terms not otherwise defined herein shall have the meanings set forth in the
Subscription Agreements (as defined below).

 

PRELIMINARY STATEMENTS

 

A.        The Stockholders are acquiring
Common Shares pursuant to those certain Subscription Agreements for Units (the
“Subscription Agreements”), each dated on or about August 27, 2013, by
and between the Company, on the one hand, and each of the Stockholders individually, on the other hand. 

 

B.         As a condition to consummate the transactions contemplated by the Subscription
Agreements, the Company has agreed to enter into this
Agreement with the Stockholders to set forth the registration rights to be
granted by the Company to the Stockholders.

 

AGREEMENT

 

The
parties, intending to be legally bound, agree as follows:

 

1.                 
Certain Definitions.  As used in this Agreement, the following terms not
defined elsewhere shall have the following respective meanings:

 

“Affiliate”
shall mean, with respect to a specified Person, a Person that directly, or
indirectly through one or more intermediaries, controls or is controlled by, or
is under common control with, the Person specified.

“Blackout
Period” shall mean, with respect to a registration, a period in each case
commencing on the day immediately after the Company notifies the Eligible
Sellers by a certificate signed by the Company’s chief executive officer
stating that they are required, pursuant to Section 4(f), to suspend offers and sales of Registrable Securities because
the Company, in the good faith judgment of its Board of Directors, has
determined (because of the existence of, or in anticipation of, any
acquisition, corporate reorganization, financing activity, or other similar
transaction involving the Company, or the unavailability for reasons beyond the
Company’s control of any required financial statements, disclosure of
information which is in its best interest not to publicly disclose, or any
other event or condition of similar significance to the Company) that the
registration and distribution of the Registrable Securities to be covered by
such Registration Statement, if any, would be materially detrimental to the
Company and its shareholders and ending on the earlier of (a) the date upon
which the material non-public information commencing the Blackout Period is
disclosed to the public or ceases to be material and (b) such time as the
Company makes such Registration Statement effective again, or allows sales
pursuant to such Registration Statement to resume; provided, however,
that the Company shall limit its use of Blackout Periods described in this Section
1, in the aggregate, to 30 trading days; provided, further,
that the Company shall not register any securities for its own account or that
of any other stockholder during any such Blackout Period.  

 

 

 

“Closing Date” has the meaning ascribed to such term in the preamble.

“Commission” shall mean the United States Securities and Exchange Commission or any other federal agency at the time administering the Securities Act. 

“Eligible Seller” shall mean the Stockholders and each of their respective Permitted Transferees.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

“Greywolf” shall mean Greywolf Capital Management LP and its Affiliates, collectively.

“Laws” shall mean means any law, order, judgment, writ, injunction, decree, judicial decision, treaty, statute, rule, directive or regulation.

“Person” shall mean means any individual, corporation, partnership, limited liability company, trust, group, syndicate, association or other entity.

“Permitted Transferees” shall mean (i) with respect to any Eligible Seller, any Stockholder or any Affiliate of a Stockholder, and (ii) with respect to Greywolf: Steelhead Finance, UBS AG and West Face Capital Inc. and their respective Affiliates.

“Registrable Securities” shall mean (i) the Common Shares, and any Common Shares issued or issuable by the Company upon the exercise of any Warrants, issued to the Stockholders pursuant to the Subscription Agreements, as set forth opposite each Stockholder’s name on Exhibit A, to the extent such Common Shares are held by any Eligible Seller at the time of the applicable registration, and (ii) any other Common Shares, including any  Common Shares issued or issuable by the Company upon the exercise of any warrants or other convertible securities, held by an Eligible Seller at the time of the applicable registration; provided, however, that a Registrable Security shall cease to be a Registrable Security upon the earlier of the time (a) the Registration Statement covering such Registrable Security has been declared effective by the Commission and such Registrable Security has been sold or disposed of pursuant to such effective Registration Statement, (b) with respect to any individual Eligible Seller, such Registrable Security has been, or can be, freely disposed of pursuant to any section of Rule 144 under the Securities Act (or any similar provision then in force) without any volume limitations (and in which case this Agreement shall terminate as between any Eligible Seller and the Company and such Eligible Seller shall no longer be deemed to hold any Registrable Securities, but this Agreement will remain in force as between the Company and the other Eligible Sellers), or (c) such Registrable Security has been assigned, sold or otherwise transferred in a transaction in which the transferor’s rights under this Agreement are not assigned. 

“Registration Date” shall mean the date upon which the registration statement pursuant to which the Company shall have initially registered the Registrable Securities has been declared effective. 

“Registration Expenses” means all expenses incurred by the Company in effecting any registration pursuant to this Agreement, including, without limitation, all registration, qualification and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, the expense of any special audits incident to or required by any such registration (but excluding the compensation of regular employees of the Company which shall be paid in any event by the Company).

“Registration Statement” shall mean the Company’s registration statement on Form F-3 to be filed with the Commission pursuant to this Agreement and also including any other amendments or 

2

 

 

 

supplements filed pursuant to this Agreement relating to the registration of Registrable Securities or, in the event such registration statement shall no longer be effective or shall otherwise become unavailable for the offer and sales of the Registrable Securities as contemplated by this Agreement, a registration statement on such form as shall be appropriate for the Eligible Sellers to offer and sell shares in the manner contemplated hereby.

“Securities Act” shall mean the United States Securities Act of 1933, as amended.

“Selling Expenses” means all underwriting discounts, selling commissions and stock transfer taxes applicable to the Registrable Securities registered by the Eligible Sellers.

2.                  Term.  The rights granted to the Eligible Sellers hereunder shall commence on the Closing Date and continue in full force and effect until the earlier of (a) such time as there are no Registrable Securities hereunder and (b) the Company’s obligations under Section 3 and Section 4(a) have otherwise ceased, unless terminated sooner by written agreement of the Company and (i) holders of a majority of the then outstanding Registrable Securities held by Greywolf or (ii) if Greywolf does not hold any Registrable Securities, the holders of a majority of the then outstanding Registrable Securities held by Eligible Sellers. 

3.                  Registration.   

(a)                The Company shall use commercially reasonable efforts (i) to prepare and file with the Commission a Registration Statement on Form F-3 or other suitable or successor form with respect to the resale by the Eligible Sellers of all of the Registrable Securities, within 45 days after the Closing Date or as soon as possible thereafter and (ii) to effect such registration within 90 days after the Closing Date or as soon as possible thereafter; provided, however, that the Company shall not be obligated to effect any such registration during any Blackout Period.

(b)               If the Company at any time prior to the 3rd anniversary of the Registration Date proposes for any reason to register any Common Shares under the Securities Act (including, for this purpose, a registration effected by the Company for stockholders other than the Eligible Sellers) (other than on Form S-4 or Form S-8 promulgated under the Securities Act or any successor forms thereto), it shall promptly give written notice to the Eligible Sellers of its intention so to register any Common Shares and, upon the written request of any Eligible Seller given within 20 days after delivery of any such notice by the Company to include in such registration Registrable Securities  held by such Eligible Seller (which request shall specify the number of Registrable Securities  proposed to be included in such registration), the Company shall use commercially reasonable efforts to cause all such Registrable Securities  to be included in such registration on the same terms and conditions as the Common Shares otherwise being sold in such registration; provided, however, that if the managing underwriter advises the Company that the inclusion of all Registrable Securities  proposed to be included in such registration would interfere with the successful marketing (including pricing) or sale of Common Shares proposed to be registered by the Company, then the number of Common Shares and Registrable Securities  proposed to be included in such registration shall be reduced to such amount (which may include none) that the Company has been advised by the underwriters that can be sold in such offering without such interference effect referred to above, and the number of Common Shares and Registrable Securities  that may be included in such registration shall be allocated (i) first, to the Company,  (ii) second, to the Eligible Sellers on a pro rata basis based on the number of Registrable Securities requested to be included in such by each Eligible Seller, and (iii) finally, to the other Persons proposing to register securities in such registration, if any; provided, further, that a registration under this Section 3(b) may be rescinded or terminated at any time by the Company which shall then give notice of such rescinded registration or termination to any seller of Registrable Securities  included in such registration.  No such registration will be permitted for any 

3

 

 

 

individual Eligible Seller if the net proceeds that would be expected to be allocable to such Eligible Seller for the maximum amount of Registrable Securities that such Eligible Seller is entitled to include in such registration is less than $100,000.   

4.                  Registration Procedures.  In the case of each registration, qualification, or compliance effected by the Company pursuant to Section 3 or Section 4(e), the Company will keep each Eligible Seller reasonably advised in writing (which may include e-mail) as to the initiation of each registration, qualification, and compliance and as to the completion thereof.  At its expense with respect to the Registration Statement filed pursuant to Section 3, the Company will:

(a)              use its commercially reasonable efforts to cause such Registration Statement to remain effective at least for a period ending with the first to occur of (i) the date which is 3 years following the Registration Date, (ii) the sale of all Registrable Securities covered by the Registration Statement, and (iii) the date which the unsold securities covered by the Registration Statement cease to be Registrable Securities (in any case, the “Effectiveness Period”).  The Company shall be deemed not to have used its commercially reasonable efforts to cause such Registration Statement to remain effective during the requisite period if it voluntarily takes any action that would result in the Eligible Sellers covered thereby not being able to offer and sell such securities during that period, unless such action is required by applicable Law;

(b)             if the Registration Statement is subject to review by the Commission, promptly respond to all comments and use its commercially reasonable efforts to diligently pursue resolution of any comments to the satisfaction of the Commission;

(c)              prepare and file with the Commission such amendments and supplements to the Registration Statement used in connection therewith as may be necessary to keep the Registration Statement effective during the Effectiveness Period (but in any event at least until expiration of the 90-day period referred to in Section 4(3) of the Securities Act and Rule 174, or any successor thereto, thereunder, if applicable), and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by the Registration Statement during such period in accordance with the intended method(s) of disposition by the sellers thereof set forth in the Registration Statement;

(d)             furnish, without charge, to each Eligible Seller of Registrable Securities covered by the Registration Statement (i) a reasonable number of copies of the Registration Statement (including any exhibits thereto other than exhibits incorporated by reference), and of each amendment and supplement thereto as such Eligible Seller may request, (ii) such number of copies of the prospectus included in the Registration Statement (including each preliminary prospectus and any other prospectus filed under Rule 424 under the Securities Act) as such Eligible Seller may reasonably request, in conformity with the requirements of the Securities Act and (iii) such other documents as such Eligible Seller may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Eligible Seller, but only during the Effectiveness Period;

(e)              use its commercially reasonable efforts to register or qualify such Registrable Securities under such other applicable securities or blue sky laws of such jurisdictions in the United States as any Eligible Seller of Registrable Securities covered by the Registration Statement reasonably requests as may be necessary for the marketability of the Registrable Securities and do any and all other acts and things which may be reasonably necessary or advisable to enable such Eligible Seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such Eligible Seller; provided  that the Company shall not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph (e), (ii) subject itself to taxation in any such jurisdiction, or (iii) consent to general service of process in any such jurisdiction;

4

 

 

 

(f)              as promptly as practicable after becoming aware of such event, notify each Eligible Seller of such Registrable Securities at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event which comes to the Company’s attention if as a result of such event the Registration Statement or the prospectus included in the Registration Statement contains an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and the Company shall promptly prepare and furnish to such Eligible Seller and, if applicable, file with the Commission under the Securities Act, a supplement or amendment to such Registration Statement or prospectus (or prepare and file appropriate reports under the Exchange Act) so that, as thereafter delivered to the purchasers of such Registrable Securities, such Registration Statement and prospectus shall not contain an 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 not misleading, unless suspension of the use of such Registration Statement and prospectus otherwise is authorized herein or in the event of a Blackout Period, in which case no supplement or amendment need be furnished (or Exchange Act filing made) until the termination of such suspension or Blackout Period;

(g)              comply, and continue to comply during the period that the Registration Statement is effective under the Securities Act, in all material respects with the Securities Act and the Exchange Act and with all applicable rules and regulations of the Commission with respect to the disposition of all securities covered by the Registration Statement, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least 12 months, but not more than 18 months, beginning with the first full calendar month after the Registration Date, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act;

(h)             as promptly as practicable after becoming aware of such event, notify each Eligible Seller of Registrable Securities being offered or sold pursuant to the Registration Statement of the initiation by the Commission of any proceedings with respect to, or the issuance by the Commission of any stop order or other suspension of effectiveness of the Registration Statement;

(i)               use its commercially reasonable efforts to cause its Common Shares, including all of the Registrable Securities covered by the Registration Statement, to be listed on, and to maintain their listing on (A) the TSX Venture Exchange or (B) any other principal securities market on which securities of the same class or series issued by the Company are then listed or traded (including the NASDAQ OMX), and to continue to use commercially reasonable efforts to have its Common Shares, including all of the Registrable Securities covered by the Registration Statement, listed on the NASDAQ OMX and, upon such listing to use commercially reasonable efforts to maintain such listing, it being agreed that if the Common Shares are listed on the NASDAQ OMX then the Company shall no longer be required to maintain a listing on the TSX Venture Exchange;

(j)               provide a transfer agent and registrar, which may be a single entity, for the Registrable Securities at all times;

(k)             cooperate with the Eligible Sellers that sell Registrable Securities pursuant to the Registration Statement to issue and deliver such Registrable Securities in uncertificated book-entry form (not bearing any restrictive notations) to be offered pursuant to the Registration Statement and enable such book-entries to be in such denominations or amounts as the Eligible Sellers may reasonably request, registered in such names as the Eligible Sellers may request within the settlement period specified in Rule 15c6-1 under the Exchange Act; and

(l)               take such other actions as reasonably required in order to expedite or facilitate the disposition of the Registrable Securities included in the Registration Statement. 

5

 

 

 

5.                  Suspension of Offers and Sales.  Each Eligible Seller of Registrable Securities agrees that, upon receipt of any written notice from the Company of the happening of any event of the kind described in Section 4(f) or of the commencement of a Blackout Period, such Eligible Seller shall discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Eligible Seller’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 4(f) or notice of the end of the Blackout Period, and, if so directed by the Company, such Eligible Seller shall deliver to the Company (at the Company’s expense) all copies (including, without limitation, any and all drafts), other than permanent file copies, then in such Eligible Seller’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice.  

6.                  Registration Expenses.  All Registration Expenses incurred in connection with any registration, filing, qualification or compliance pursuant to Sections 3 or 4  shall be borne by the Company.  All Selling Expenses relating to Registrable Securities shall be borne by the Eligible Sellers holding such Registrable Securities pro rata on the basis of the number of Registrable Securities so registered.  Each Eligible Seller shall bear its own costs and expenses of its legal and other professional advisors; provided, however, that the Company shall reimburse Greywolf for all reasonable legal fees and expenses incurred by or on behalf of Greywolf or its representatives in connection with the completion of the transactions contemplated in the Subscription Agreements and in connection with any Registration Statement filed pursuant to this Agreement, up to a maximum of US$ 25,000, in the aggregate.

7.                  Assignment of Rights.  No Eligible Seller may assign its rights under this Agreement to any party without the prior written consent of the Company (not to be unreasonably withheld or delayed); provided, however, that an Eligible Seller may assign its rights under this Agreement without such consent to a Permitted Transferee; provided, that, in the event of any permitted transfer or assignment as long as: (a) such transfer or assignment is effected in accordance with applicable securities Laws; (b) such Permitted Transferee agrees in writing to become a party to, and be subject to, the terms of this Agreement by properly executing a joinder in the form attached hereto as Exhibit B, which shall specify the name and address of the Permitted Transferee and identify the Registrable Securities with respect to which such rights are being transferred or assigned; and (c) such joinder is delivered to the Company.  The Company shall, upon request of the transferring Eligible Seller and its Permitted Transferee (and after receiving such joinder), file an amendment or supplement to the Registration Statement (or, as appropriate, to the prospectus included therein) to register sales of Registrable Securities by such Permitted Transferees and shall bear any and all expenses incurred by it in connection with the first two amendments or supplements so requested.

8.                  Information by Eligible Sellers; Free Writing Prospectuses.   

(a)              Each  Eligible Seller shall furnish to the Company such information regarding such Eligible Seller and the distribution proposed by such Eligible Seller as the Company may reasonably request in writing.  Each Stockholder agrees that its name and address as it is to be listed in the Registration Statement is accurately set forth on Exhibit A.  Notwithstanding anything else herein to the contrary, the Company shall have no obligation to file an amendment or supplement to the Registration Statement (or, as appropriate, to the prospectus included therein) to register sales of Registrable Securities by any Eligible Seller until such Eligible Seller shall have furnished the Company with all information and statements about or pertaining to such Eligible Seller in such reasonable detail and on such timely basis as is reasonably deemed by the Company to be legally required with respect to the preparation of such filing.

(b)             No Eligible Seller (or any Person on their behalf) shall prepare or use any Free Writing Prospectus (as such term is defined in Rule 405 under the Securities Act) unless any and all 

6

 

 

 

issuer information included therein has been approved by the Company in writing specifically for use by the Eligible Sellers in a Free Writing Prospectus, which approval the Company may withhold in its reasonable discretion.

9.                  Indemnification.   

(a)              In connection with the offer and sale of Registrable Securities under the Registration Statement, the Company shall, and hereby does, indemnify and hold harmless, to the fullest extent permitted by Law, each Eligible Seller, each of the partners, members, managers, officers and directors and each Person, if any, who controls such Eligible Seller (collectively, the “Eligible Seller Indemnified Persons”), against any liabilities, obligations, losses, damages, lawsuits, investigations, arbitrations, actions, judgments, costs, expenses or claims, including, without limitation, reasonable attorneys’ fees and expenses incurred in investigating, defending or settling any of the foregoing (collectively, “Losses”), that the Eligible Seller Indemnified Persons may incur arising out of or due to any of the following: (i) 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, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (with respect to the Registration Statement) or not misleading in light of the circumstances under which they were made (with respect to any prospectus), or (iii) any violation or alleged violation by the Company (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law with respect to the applicable registration under this Agreement; provided  that the Company shall not be liable in any such case to the extent that any such Losses arise out of or are based upon an untrue statement or alleged untrue statement in or omission or alleged omission from such Registration Statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement (i) in reliance upon and in strict conformity with written information furnished to the Company by such Eligible Seller expressly for use in connection with such registration or (ii) if the Company had provided to such Eligible Seller a copy of an amended preliminary prospectus or final prospectus that corrected such untrue or alleged untrue statement or such omission or alleged omission and the Person asserting any such Losses who purchased the Registrable Securities that are the subject thereof did not receive a copy of such amended preliminary or final prospectus, if required by law so to have been delivered, at or prior to the written confirmation of the sale of such Registrable Securities to such Person, because of the failure of such Eligible Seller to so provide such amended preliminary or final prospectus, but only to the extent that such amended prospectus would have fully cured the defect giving rise to such Losses.

(b)             As a condition to including any Registrable Securities to be offered by an Eligible Seller in the Registration Statement filed pursuant to this Agreement, each such Eligible Seller, severally and not jointly, agrees to be bound by the terms of this Section 9(b) and to indemnify and hold harmless, to the fullest extent permitted by Law, the Company and its directors and officers against any Losses to which the Company or its directors and officers may become subject under the Securities Act or otherwise, insofar as such Losses arise out of or are based upon any untrue statement or alleged untrue statement in or omission or alleged omission from such Registration Statement, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, if such statement or alleged statement or omission or alleged omission was made in reliance upon and in strict conformity with written information about such Eligible Seller furnished to the Company by such Eligible Seller expressly for use in connection with such registration, and such Eligible Seller shall reimburse the Company for any legal or other expenses reasonably incurred by it in connection with investigating, defending, or settling any such loss or proceeding.  Notwithstanding the foregoing, no Eligible Seller shall be liable for (i) any amounts paid in settlement of any such claim or proceeding if 

7

 

 

 

such settlement is effected without the consent of such Eligible Seller, which consent shall not be unreasonably withheld unless such settlement is solely for the payment of monetary damages paid by the Company, or (ii) indemnification pursuant to this Agreement in excess of the aggregate cash proceeds (net of underwriting discounts and selling commissions, if any) actually received by such Eligible Seller from the offering of Registrable Securities in such registration.  

(c)              Promptly after receipt by an indemnified party of notice of the commencement of any proceeding involving a claim referred to in Section 9(a) or (b)  (including any governmental action), such indemnified party shall, if a claim in respect thereof is to be made against an indemnifying party, give written notice to the indemnifying party of the commencement of such action; provided  that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations under Section 9(a) or (b), except to the extent that the indemnifying party is prejudiced by such failure to give notice.  In case any such proceeding is brought against an indemnified party, unless in the reasonable judgment of counsel to such indemnified party a conflict of interest between such indemnified and indemnifying parties may exist or the indemnified party may have defenses not available to the indemnifying party in respect of such claim, the indemnifying party shall be entitled to participate in and to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof, unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties arises in respect of such claim after the assumption of the defenses thereof or the indemnifying party fails to defend such claim in a diligent manner.  Neither an indemnified nor an indemnifying party shall be liable for any settlement of any proceeding effected without its consent.  No indemnifying party shall, without the consent of the indemnified party, consent to entry of any judgment or enter into any settlement, which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim.  Notwithstanding anything to the contrary set forth herein, and without limiting any of the rights set forth above, in any event any party shall have the right to retain, at its own expense, counsel with respect to the defense of a claim. 

(d)             If the indemnification provided for in this Section 9 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall (i) contribute to the amount paid or payable by such indemnified party as a result of such loss or proceeding as is appropriate to reflect the proportionate relative fault of the indemnifying party on the one hand and the indemnified party on the other (determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission relates to information supplied by the indemnifying party or the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission), or (ii) if the allocation provided by clause (i) above is not permitted by applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, not only the proportionate relative fault of the indemnifying party and the indemnified party, but also the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other, as well as any other relevant equitable considerations; provided, however, that, in any such case, (x) no Eligible Seller will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Eligible Seller pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; and provided  further  that in no event shall an Eligible Seller’s liability pursuant to this Section 9(d), when combined with the amounts paid or payable by such Eligible Seller pursuant to Section 9(b), exceed the aggregate 

8

 

 

 

proceeds from the offering (net of underwriting discounts and selling commissions, if any) actually received by such Eligible Seller, except in the case of willful misconduct or fraud by such Eligible Seller.  

10.              Rule 144.  For a period of at least three years following the Registration Date, the Company will use its commercially reasonable efforts (i) to timely file all reports required to be filed by the Company after the date hereof under the Securities Act and the Exchange Act (including the reports pursuant to Section 13(a) or 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144) and the rules and regulations adopted by the Commission thereunder), and (ii) if the Company is not required to file reports pursuant to such sections, it will prepare and furnish to the Eligible Sellers and make publicly available in accordance with Rule 144(c) such information as is required for the Eligible Sellers to sell Common Shares under Rule 144, all to the extent required from time to time to enable the Eligible Sellers to sell Common Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144.

11.              Miscellaneous.    

(a)              Governing Law.  This Agreement and all documents relating hereto shall be governed by, and construed in accordance with, the domestic laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.

(b)             Successors and Assigns.  This Agreement is binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

(c)              Complete Agreement.   

(i)                 This Agreement contains the complete agreement between the parties hereto with respect to the transactions contemplated hereby and supersedes all prior agreements and understandings between the parties hereto with respect to the subject matter of this Agreement.  

(ii)               Within 14 calendar days from the date hereof, certain accredited investors with accounts at Union Bank of Switzerland as disclosed to the Stockholders may subscribe for units of securities of the Company consisting of Common Shares and warrants to purchase Common Shares and may be added to and enter into this Agreement by signing additional signature pages hereto. Such persons shall be Stockholders and Eligible Sellers, as applicable, as from the date of their signature pages and shall be parties to this Agreement for all purposes as of such date and Exhibit A shall be amended accordingly.

(d)             Amendment.  This Agreement may be amended or modified only by an instrument in writing duly executed by the Company and (i) holders of a majority of the then outstanding Registrable Securities held by Greywolf or (ii) if Greywolf does not hold any Registrable Securities, the holders of a majority of the then outstanding Registrable Securities held by Eligible Sellers. 

(e)              Notices.  Any notice or other communication provided for herein or given hereunder to a party hereto must be in writing and are deemed duly delivered (i) when sent by facsimile transmission (electronically confirmed), (ii) when delivered if delivered in person, (iii) when received or rejected by the addressee, if mailed by first class registered or certified mail, postage prepaid, return receipt requested, or sent by Federal Express or other overnight courier of national reputation or (iv) when sent by electronic mail, in each case addressed and marked to the attention of the party’s name set forth 

9

 

 

 

on the first page of the Subscription Agreement or to such other address with respect to a party as such party notifies the other in writing as above provided.

(f)              Counterparts.  This Agreement may be executed in two or more counterparts (including facsimile and other electronically transmitted counterparts), each of which will be deemed an original but all of which will constitute but one instrument.

(g)              Severability.  Any term or provision of this Agreement that is invalid or unenforceable in any jurisdiction will, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction.  If any provision of this Agreement is so broad as to be unenforceable, the provision will be interpreted to be only so broad as is enforceable.

(h)             Waiver.  The parties may (i) extend the time for the performance of any of the obligations or other acts of the parties hereto, or (ii) waive compliance with any of the agreements or conditions contained herein, to the extent permitted by applicable Law.  Any agreement to any such extension or waiver will be valid only if set forth in a writing signed on behalf of the party or parties against whom the waiver or extension is to be effective; provided, however, that a waiver as to all Eligible Sellers under his Agreement may be granted with the consent of holders of a majority of the then outstanding Registrable Securities held by Greywolf (or, if Greywolf does not hold any Registrable Securities, the holders of a majority of the then outstanding Registrable Securities held by Eligible Sellers).

(i)               Jurisdiction.  The Company and each Eligible Seller submits to the exclusive jurisdiction of any state or federal court sitting in New York, New York, in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court.  Each of the parties hereto waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other party with respect thereto.

(j)               Spousal Joinder.  If the undersigned is an individual, the undersigned’s spouse shall join in the execution of this Agreement by executing and delivering to the Company the joinder attached hereto as Exhibit B to evidence his or her agreement to be bound by the terms of this Agreement.

(Signature page follows)

 

10

 

 

 

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

                                                                                    GOLD
RESERVE INC.

/s/
Mary E. Smith                                             

Name:
 Mary E. Smith

Title:    Vice President Administration and Secretary

 

[Signature page to Registration Rights Agreement]

 

 

STOCKHOLDERS: 

GCOF EUROPE S.À R.L.

 

/s/ Paul Clarke                                                 

Name: Paul Clarke

Title:    Manager A

 

/s/ Joan Lederer                                                           

Name: Joan Lederer

Title:    Manager B

 

 

GCP EUROPE S.À R.L.

 

/s/ Paul Clarke                                                 

Name: Paul Clarke

Title: Manager A

 

/s/ Joan Lederer                                                           

Name: Joan Lederer

Title:    Manager B

 

 

Greywolf Capital Partners II LP

 

/s/ William Troy                                               

Name: William Troy

Title:    Authorized Signatory

 

Greywolf Capital Overseas Master Fund

 

/s/ William Troy                                               

Name: William Troy

Title:    Authorized Signatory

 

 

Greywolf Capital Overseas Fund II

 

 

/s/ William Troy                                               

Name: William Troy

Title:    Authorized Signatory

12

 

 

 

 

 

EXHIBIT A

 

STOCKHOLDER
INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT B

 

FORM OF JOINDER

 

            Pursuant to Section 7 of the Registration
Rights Agreement dated August __, 2013 (the “Agreement”) among Gold
Reserve Inc., a corporation existing under the laws of the Yukon Territory,
Canada (the “Company”),  the parties set
forth on Exhibit A attached thereto (each a “Stockholder”
and collectively, the “Stockholders”), and any other Eligible
Seller (as defined in the Agreement), the undersigned Eligible Seller and the
undersigned Permitted Transferee, as those terms and any other capitalized
terms used but not defined herein are defined in the Agreement, hereby agree as
follows:

 

1)     
Such Eligible Seller hereby
assigns its rights under the Agreement to such Permitted Transferee solely in
respect of the Registrable Securities identified on the signature page hereto;
provided, however, such Eligible Seller remains otherwise subject to the terms
and conditions of and remains liable for any and all of its obligations under,
the Agreement, to the extent of any such obligations it had at the time of
transfer, e.g. pre-existing indemnity obligations; 

 

2)     
Such Permitted Transferee hereby
accepts such assignment and agrees to become a party to, and be subject to, the
terms and conditions of the Agreement; and

 

3)     
Pursuant to Section 7 of
the Agreement, such Eligible Seller and such Permitted Transferee hereby
request that the Company file an amendment or supplement to the Registration
Statement (or, as appropriate, to the prospectus included therein) to register
sales of the Registrable Securities identified below by such Permitted
Transferee. 

 

 

(Signature page follows)

 

 

 

The undersigned have duly executed this joinder on this ___ day of ___________, 20__.

Eligible Seller:

[___________________________]

                                                                                     

                                                 
_____________________________________ 

Name: 

Title:    

 

 

Permitted Transferee:                         

[___________________________]

 

______________________________________        
Name:  

Title:    

 

Address:

                                                                          

                                                                                                                                                              

                                                                                                                                                        

                                                                              Email:                                                               

                   

                   

                                                                              Registrable Securities:

 

                                                                                             Common Shares

 

 

 

[Signature page to Form of Joinder]

 

 

EXHIBIT C

JOINDER OF SPOUSE

 

 

In consideration of good and valuable consideration paid to the undersigned, the adequacy and receipt of which are hereby acknowledged, the undersigned ____________________________________, spouse of _____________________________________, who has subscribed for the purchase of Unit(s) in the company and executed the foregoing Agreement, hereunto subscribes his or her name in evidence of his or her agreement and consent to be bound by the terms of the Agreement including without limitation, the irrevocable granting of powers of attorney to his or her spouse, with respect to any community property interest he or she may have in the equity capital of the Company.

 

 

Dated:                                                                                                                                                     

Signature of Spouse

 

 

 

 

[Signature page to Form of Joinder]

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