Document:

Filed by OTC Filings Inc. - www.otcedgar.com - 1-866-832-FILE(3453) -GENUFOOD ENERGY ENZYMES CORP. - Exhibit 10.2

 

 

 REGISTRATION RIGHTS AGREEMENT
 THIS REGISTRATION RIGHTS AGREEMENT (hereinafter referred to as the “Agreement”), dated July 11, 2013 by and between
 Genufood Energy Enzymes Corp., a corporation organized under the laws of Nevada (hereinafter referred to as the “Company”),
 and
 Kodiak Capital Group, LLC, a Delaware limited liability company (hereinafter referred to as the “Holder”).
 WHEREAS, in connection with the Investment Agreement (the “Investment Agreement”) by and between the Company and the Investor of equal date as the Agreement hereto (together, the “Transaction Documents”), 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.
 “Principal Market” shall mean The American Stock Exchange, National Association of Securities Dealer’s, Inc., Over-the-Counter electronic bulletin board, 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 (20) trading 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 an adequate number of shares of Common Stock which would be issuable on the date preceding the filing of the Registration Statement based on the closing bid price of the Company’s Common Stock on such date and the amount reasonably calculated that represents Common Stock issuable to other parties as set forth in the Investment Agreement except to the extent that the SEC requires the share amount to be reduced as a condition of effectiveness.
 (b) The Company shall use all 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 any other securities 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 ninety (90) 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 all 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; (B) all Registrable Securities held by the Investor can be sold without registration in compliance with Rule 144 of the 1933 Act; or (C) the Investor has no right to acquire any additional shares of Common Stock under the Investment Agreement (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.
 (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)
	register and qualify the Registrable Securities covered by the Registration Statement under such other securities or “blue sky” laws of such states in the United States as the Investor reasonably requests;

	  
	  
	  
	 

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

	  
	  
	  
	 

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

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

	  
	  
	  
	  
	  

	  
	  
	  
	 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;

	  
	  
	  
	  

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

	  
	  
	  
	  

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

	  
	  
	  
	  

	  
	  
	 (iv)
	 In the event the Registration Statement is no longer effective; 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) The Company shall hold in confidence and not make any disclosure of information concerning the Investor unless:
 	 	 	 	
	  
	  
	 (i)
	 Disclosure of such information is necessary to comply with federal or state securities laws;

	  
	  
	  
	  

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

 

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

 
 	               

	              

 (l) The Company shall use all commercially reasonable efforts to cause the Registrable Securities covered by the applicable Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to facilitate the disposition of such Registrable Securities.
 (m) The Company shall otherwise use all commercially reasonable efforts to comply with all applicable rules and regulations of the SEC in connection with any registration hereunder.
 (n) 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.
 (o) 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.
 (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:
 	 	 	 	
	  
	  
	 (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):
 	 	 	 	 	
	  
	  
	 (i)
	Shall not apply to a Claim arising out of or based upon a Violation which is due to the inclusion in the Registration Statement of the information furnished to the Company by any Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto;

	  
	  
	  
	  
	  

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

	  
	  
	  
	  
	  

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

	  
	  
	  
	  
	  

	  
	  
	  
	 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.

 
 	               

	              

 (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.
 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:

	  
	  
	  
	  

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

	  
	  
	  
	  

	  
	  
	 ii.
	 A copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and

	  
	  
	  
	  

	  
	  
	 iii.
	 such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration.

 	               

	              

 Section 9. NO ASSIGNMENT OF REGISTRATION RIGHTS.
 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 (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:
 

 Genufood Energy Enzymes Corp.
 Two Allen Center
 1200 Smith Street, Suite 1600
 Houston, TX 77002
 

 With a copy to:
 

 Dean Law Corp.
 900 – 555 Burrard Street
 Vancouver, BC V7X 1M8
 

 If to the Investor: 
 Kodiak Capital Group, LLC
 260 Newport Center Drive 
 Newport Beach, CA 92660 
 Each party shall provide five (5) business days prior notice to the other party of any change in address, phone number 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.
 	               

	              

 (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. 
 

 	               

	              

 
 
 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.

 GENUFOOD ENERGY ENZYMES CORP.
 /s/ Yi Lung Lin
 Yi Lung Lin, President
 

 KODIAK CAPITAL GROUP, LLC
 /s/ Ryan Hodson
 Ryand Hodson, MemberSEVERANCE
AGREEMENT

 

SEVERANCE
AGREEMENT dated the 16th
day of July
2013, by and
between Airware Labs

Corp,  a
Delaware  corporation  ("Employer"),
and  Jeffrey Rassas,
("Employee").

 

WHEREAS,
 Employee is an
executive officer and
a valued employee
of Employer.

 

WHEREAS,
 Employer and Employee
desire to agree
to the results
of any termination 
of

Employee's
employment  by Employer
other than for
cause.

 

NOW,  THEREFORE, in consideration  of the premises
and of the mutual covenants set forth in
this

Agreement,
the parties hereto agree
as follows:

 

1. Result  of
Termination Other  than  for
Cause.  In the event that Employer terminates  Employee's
employment  with Employer other than for cause,
(a) Employer shall pay Employee's base salary for a period of
12 months following such termination, (b) Employer shall pay to
Employee, at the same time as bonuses
are paid to Employer's other executives, a portion of the
bonus earned by Employee for the period commencing on the first day of the fiscal
year for which the bonus is calculated and ending on the date of termination ; and (c) all unvested stock-based compensation
held by Employee shall vest as of the
date of termination. As used herein, "cause" shall mean any termination
of Employee 's employment by Employer as
a result of Employee engaging in an act or acts
involving a crime, moral turpitude, fraud, or dishonesty, or Employee willfully violating in a
material respect Employer 's Corporate Governance Guidelines, Code of Conduct, or
any applicable Code of Ethics, including, without limitation, the provisions thereof relating to conflicts of interest or
related party transactions.

 

 

2.
Competition and  Confidential
Information .

(a)
Interests to be Protected
.  The parties
acknowledge  that Employee 
performs essential services for
Employer, its employees, 
and its stockholders during the term of
Employee's employment
with Employer. Employee  is exposed to,
has access to, and works with, a considerable amount of Confidential Information (as defined below). The parties
also expressly recognize and acknowledge that the
personnel of Employer have been trained by, and
are valuable to, Employer and that Employer will incur substantial recruiting
and training expenses  if Employer must hire
new personnel or retrain existing personnel to
fill vacancies. The parties expressly  recognize that
it could seriously impair the goodwill and diminish the value of
Employer 's business should Employee compete with Employer in any manner whatsoever.
The parties acknowledge  that
this covenant has an extended duration; however, they agree that this covenant is
reasonable and it is necessary for the protection of Employer, its stockholders, and
employees. For these and other reasons, and the fact that there are many other employment
opportunities available to Employee if his employment is terminated,
the parties are in full and complete
agreement that the following restrictive
covenants are fair and reasonable  and are
entered into freely, voluntarily, and knowingly.
Furthermore, each party was given the opportunity  to
consult with independent legal counsel  before entering 
into this Agreement.

 

 

(b)
Non-Competition. For the
period equal to
12 months after
the termination  by
Employer of Employee's employment
 with Employer other
than for cause or
upon resignation by Employee, Employee shall not (whether directly or
indirectly, as owner, principal , agent, stockholder, director, officer, manager,
employee, partner, participant, or in any other
capacity) engage or become financially
interested in any competitive business conducted within the Restricted Territory
(as defined below). As used
herein, the term "competitive business" shall mean any
business that sells or provides or
attempts to sell or provide products or
services the same as or
substantially similar to the products or services sold
or provided by Employer during Employee's
employment,  and the term ··Restricted Territory'' shall mean any state
or other geographical in which Employer sells products or provides services during
Employee's employment.

(c) Non-Solicitation of Employees. For
a period of 24 months after the termination  by
Employer

of
Employee's employment  with
Employer other than
for cause or
resignation by Employee,
Employee shall not directly or indirectly, for Employee, or on
behalf of, or in conjunction  with, any
other person, company, partnership, corporation, or governmental entity, solicit for employment,
seek to hire, or hire any person or persons
who is employed by or was employed by Employer within
12 months of the termination of Employee's
employment for the purpose
of having any
such employee engage in services that are
the same as or similar or related
to the services that such employee provided
for Employer.

(d)
Confidential Information . 
Employee shall maintain in
strict secrecy all
confidential  or trade

secret
information  relating to
the business of
Employer (the "Confidential
 Information")
obtained by Employee in
the course of
Employee's employment, and Employee shall
not, unless first authorized in writing by Employer, disclose to, or use for
Employee's benefit or for the benefit
of, any person, firm, or entity at any time either during or subsequent
to the term of Employee's employment,
any Confidential Information, except as required in the performance of Employee’s duties on behalf of Employer. For purposes hereof, Confidential Information shall
include without limitation any materials,
trade secrets, knowledge, or information  with
respect to management, operational , or investment policies and practices of Employer;
any business methods or forms; any names or addresses of customers or data on customers
or suppliers; and any business policies or other
information relating to or dealing with the management, operational, or investment
policies or practices of Employer.

(e)
Return  of Books,  Records,
Papers,  and Equipment.
Upon the termination  of
Employee's

employment
 with Employer
for any reason,
Employee shall deliver
promptly to Employer
all files, lists,
books, records, manuals,
memoranda, drawings, and specifications;
all cost, pricing, and other financial data;
all other written or printed materials
and computers, cell phones, PDAs,
and other equipment that are the property
of Employer (and any copies of them); and
all other materials that may contain Confidential Information relating
to the business of
Employer, which Employee may then
have in Employee's possession, whether
prepared by Employee or not.

(f)
Disclosure of Information.
Employee shall disclose promptly
to Employer, or its nominee,
any and all ideas, designs, processes,
and improvements of any kind relating to the business of Employer, whether patentable
or not, conceived or made by Employee, either
alone or jointly with others,
during working hours or otherwise, during the entire period of Employee's employment
with Employer or within six months thereafter.

(g)
Assignment. Employee hereby
assigns to Employer
or its nominee,
the entire right, title,
and interest in and to all inventions, discoveries, and improvements, whether
patentable or not, that Employee
may conceive or make during Employee 's
employment with Employer, or within six
months thereafter, and which relate to the business
of Employer.

(h)
Equitable Relief.  In the
event a violation
of any of
the restrictions contained 
in this Section
is established,  Employer shall
be entitled to preliminary and permanent injunctive relief as well
as damages and an equitable accounting of
all earnings, profits, and
other benefits arising from such violation,
which right shall be cumulative and in addition to any other rights
or remedies to which Employer may be entitled.
In the event
of a violation of
any provision of subsection (b), (c),
(t), or (g) of this Section , the period
for which those provisions would remain in effect shall be
extended for a period
of time equal to that period beginning
when such violation commenced  and ending when
the activities constituting such

violation
shall have been finally
terminated  in good
faith.

(i)
Restrictions Separable. If the scope
of any provision
of this Agreement
(whether  in this Section
4 or otherwise) 
is found by a Court
to be too broad to
permit enforcement to its full extent,
then such provision shall be enforced to the
maximum extent permitted by law. The
parties agree that the scope of any provision
of this Agreement may
be modified by a judge in any proceeding to enforce this Agreement, so that
such provision can be enforced to the maximum
extent permitted by law. Each and every restriction set forth in
this Section 4 is independent and severable from the others, and no such restriction
shall be rendered unenforceable  by virtue
of the fact that, for any reason, any other or others of them may be unenforceable
in whole or in part.

 

3.
Miscellaneous.

(a)
Notices. All notices,
requests, demands, and
other communications  required or
permitted under this Agreement
shall be in writing
and shall be deemed to have
been duly given, made, and received
(i) if personally delivered, on the date of delivery, (ii) if by facsimile transmission
, upon receipt, (iii) if mailed, three
days after deposit in the United States mail , registered or certified, return
receipt requested, postage prepaid, and addressed as
provided below, or (iv) if by a courier delivery service providing overnight
or "next-day" delivery, on the next business day after deposit with
such service addressed as follows:

 

(1)
If  to Employer:

 

8399
E. Indian School
Rd., #202

Scottsdale,
 AZ 8525 I

Attention:
Chief Executive Officer

 

with
a copy given
in the manner prescribed
above, to:

 

8399
E. Indian School 
Rd., #202

Scottsdale,
 AZ 85251

Attention:
Ronald L. Miller,
Jr., Board Member

 

(2)
 If to Employee:

 

8399
E. Indian School Rd., #202

Scottsdale,
 AZ 85251

Phone:
[(  ) _-_]

 

Either
party may alter
the address to
which communications  or
copies are to
be sent by
giving notice of such
change of address in conformity with the
provisions of this Section 5 for the giving
of notice.

(b)
Indulgences; Waivers.  Neither
any failure nor
any delay on
the part of
either party to
exercise any right, remedy, power,
or privilege under this Agreement shall operate
as a waiver thereof, nor
shall any single or partial exercise of
any right, remedy, power, or privilege preclude any other
or further exercise of the same or
of any other right, remedy,
power, or privilege, nor
shall any waiver of any right,
remedy, power, or privilege with respect
to any occurrence be construed as a waiver
of such right, remedy, power, or privilege with
respect to any other occurrence.
No waiver shall be binding unless
executed in writing by the
party making the waiver.

(c)
Controlling  Law. This
Agreement and all
questions relating to
its validity, interpretation, performance
and enforcement, shall
be governed by and
construed in accordance with the laws
of the state of Delaware, notwithstanding
 any Delaware or other
conflict-of-interest provisions to the contrary.

(d)
Binding Nature of
Agreement. This Agreement
shall be binding
upon and inure
to the benefit of
the parties hereto
and their respective heirs, personal representatives, successors, and
assigns, except that no party may assign
or transfer such
party's rights or obligations under this Agreement without the prior written
consent of the other
party.

(e)
Execution in Counterpart. 
This Agreement may
be executed in
any number of
counterparts,

each
of which shall
be deemed to
be an original
as against any party whose
signature appears thereon, and all
of which shall together constitute one and
the same instrument. This Agreement shall become binding when one or
more counterparts hereof, individually or
taken together, shall bear the
signatures of the parties reflected hereon
as the signatories.

(f)
Provisions Separable. The
provisions of this Agreement
are independent of and
separable from each other,
and no provision shall be affected
or rendered invalid or unenforceable by
virtue of the fact that for
any reason any other or
others of them
may be invalid or unenforceable in whole or in part.

(g)
Entire Agreement. This Agreement contains the entire understanding between
the parties

hereto
with respect to
the subject matter hereof and
supersedes all prior and contemporaneous
agreements and understandings, 
inducements, and conditions, express
or implied, oral or written, except as
herein contained. The express terms hereof control and
supersede any course of performance and/or usage of the trade inconsistent
with any of the terms
hereof. This Agreement may not be modified
or amended other than by
an agreement  in writing.

(h)
No Participation  in Severance 
Plans. Except as
contemplated  by this
Agreement, 

Employee
acknowledges and agrees that the compensation
and other benefits set forth in this Agreement
are and shall be
in lieu of any compensation or other benefits
that may otherwise be payable to or on
behalf of Employee pursuant to the terms
of any severance pay arrangement of
Employer or an y affiliate thereof, or any other similar arrangement of Employer
or any affiliates thereof providing for benefits
upon involuntary termination of employment.

(i)
Paragraph  Headings. The paragraph
headings in this Agreement
are for convenience only;

they
form no part
of this Agreement
and shall not affect its
interpretation.

(j)
Gender. Words used herein,
regardless of the number and gender
specifically  used, shall
be

deemed
and construed to
include any other
number, singular or plural,
and any other gender,
masculine, feminine, or neuter, as
the context requires.

(k)
Number of Days. In computing the number
of days for purposes of
this Agreement, all
days shall be counted, including
Saturdays, Sundays, and holidays; provided, however,
that if the final day of any time
period falls on a Saturday, Sunda y, or holida y, then the final day shall be deemed to be
the next day that is not a Saturday,
Sunday, or holiday.

 

4.
Successors and Assigns.

This
Agreement shall inure to the
benefit of and be binding upon
the successors and assigns of
the parties hereto; provided that
because the obligations
of Employee hereunder involve the
performance of personal services, such obligations shall not
be delegated by Employee. For purposes of
this Agreement successors and assigns
shall include, but not be limited
to, any individual, corporation, trust, partnership, or other
entity that acquires a majority of the
stock or assets of Employer by sale, merger,
consolidation, liquidation, or other form of transfer.
Employer will require any successor (whether direct or indirect, by purchase, merger,
consolidation, or otherwise) to all or
substantially all of the business
and/or assets of Employer to expressly assume 
and agree  to
perform  this Agreement
in the same  manner and to the
same extent  that Employer would
be required  to perform 
it if no such succession had taken place. Without limiting 
the foregoing, unless the context  otherwise requires, the term "'Employer"
includes all subsidiaries of Employer.

 

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

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