Document:

EXHIBIT 10.8

     

    Exhibit
      10.8

    
 

    REGISTRATION
      RIGHTS AGREEMENT

     

    

    THIS
      REGISTRATION RIGHTS AGREEMENT
      (the
“Agreement”)
      is
      entered into as of September 15, 2005, by and among Equitex,
      Inc.,
      a
      Delaware corporation (the “Company”),
      Pandora
      Select Partners L.P.,
      a
      British Virgin Islands limited partnership (“Pandora”),
      and
Whitebox
      Hedged High Yield Partners L.P.,
      a
      British Virgin Islands limited partnership ("WHHY").
      Pandora and , WHHY are individually referred to herein as an “Investor”
      and
      together as the “Investors.”

     

    R
      E C I T A L S :

     

    WHEREAS,
      the
      Company, Pandora and WHHY have entered into a Purchase Agreement dated as of
      this date (the "Purchase
      Agreement"),
      pursuant to which Pandora and WHHY are each purchasing a secured convertible
      promissory note (each, a "Note"
      and
      together, the "Notes")
      and a
      warrant to purchase the Company's Common Stock (each, a "Warrant"
      and
      together, the "Warrants")
      in
      consideration of a collective $1,500,000 loan.

     

    WHEREAS,
      the
      execution of this Agreement is a condition precedent to the obligation of
      Pandora and WHHY to perform its respective obligations under the Purchase
      Agreement.

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and of the mutual promises and covenants
      contained herein, and for other good and valuable consideration, the receipt
      and
      sufficiency of which are hereby acknowledged, the parties, intending to be
      legally bound, hereby agree as follows:

     

    ARTICLE
      1.

    DEFINITIONS

     

    As
      used
      herein, the following terms shall have the following respective
      meanings:

     

    1.1  “Commission”
      shall
      mean the U.S. Securities and Exchange Commission or any other successor federal
      agency at the time administering the Securities Act.

     

    1.2  “Common
      Stock”
      shall
      mean the Company’s common stock, $0.01 par value per share.

     

    1.3  “Exchange
      Act”
      shall
      mean the Securities and Exchange Act of 1934, as amended, or any similar federal
      statute and the rules and regulations of the Commission thereunder, all as
      the
      same shall be in effect at the time.

     

    1.4  “Holders”
      shall
      mean and include each Investor and any transferee thereof to whom the
      registration rights conferred by this Agreement have been transferred in
      accordance with Article 8 hereof.

     

    1.5  “Register,” “registered”
      and
“registration”
      refer to
      a registration effected by preparing and filing with the Commission a
      registration statement in compliance with the Securities Act, and the
      declaration or ordering by the Commission of the effectiveness of such
      registration statement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.6  “Registrable
      Securities”
      means:
      (i) all shares of Common Stock issued or issuable upon exercise of the Warrants
      or hereafter acquired by the Investor, (ii) all shares of Common Stock issued
      or
      issuable upon conversion of the Notes or upon payment on the Notes or hereafter
      acquired by the Investor and (iii) any and all shares of Common Stock issuable
      upon any stock split, stock dividend, recapitalization, reclassification,
      merger, consolidation or other similar event with respect to the Common Stock
      issued or issuable pursuant to subsections (i) and (ii) of this Section 1.6;
      excluding in all cases, however, Registrable Securities sold by a Holder to
      the
      public pursuant to a registered offering or pursuant to Rule 144 promulgated
      by
      the Commission under the Securities Act or sold in a private transaction in
      which the Holder’s registration rights under this Agreement are not
      assigned.

     

    1.7  “Registration
      Expenses”
      shall
      mean all expenses incurred by the Company in complying with Articles 2 and
      3
      hereof, including, without limitation, all registration, qualification and
      Commission, National Association of Securities Dealers, Inc., stock exchange
      and
      other filing fees, printing expenses, escrow fees, fees and disbursements of
      legal counsel for the Company, blue sky fees and expenses, and 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).

     

    1.8  “Securities
      Act”
      shall
      mean the Securities Act of 1933, as amended, or any similar federal statute
      and
      the rules and regulations of the Commission thereunder, all as the same shall
      be
      in effect at the time.

     

    1.9  “Selling
      Expenses”
      shall
      mean all underwriting fees, discounts, selling commissions and stock transfer
      taxes applicable to the Registrable Securities registered by the Holders and
      the
      fees and expenses of any special counsel engaged by the Holders.

     

    1.10  “Underwriter”
      shall
      mean (whether or not the term is capitalized) a broker-dealer engaged by the
      Company to distribute Registrable Securities as principal or agent.

     

    1.11  “Underwriting” or
      “Underwritten”
      shall
      mean (whether or not the term is capitalized) a method of publicly distributing
      securities through an Underwriter.

     

    ARTICLE
      2.

    REQUIRED
      REGISTRATION

     

    2.1  Required
      Registration.
      The
      Company will (a) prepare and file with the Commission within 90 days after
      the
      date hereof a registration statement under the Securities Act covering all
      of
      the Registrable Securities and (b) use its best efforts to obtain the
      effectiveness of such registration statement (with respect to the Registrable
      Securities) as soon as practicable but not later than 180 days after the date
      hereof as would permit or facilitate the resale and distribution of all such
      Registrable Securities. 

     

    
      
        
        

      

      
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    2.2  Underwriting.

     

    (a)  The
      resale distribution of the Registrable Securities covered by the registration
      statement referred to in Section 2.1 above shall be effected by means of the
      method of distribution selected by the Holders holding a majority of the
      Registrable Securities covered by such registration. The Holders holding a
      majority of the Registrable Securities may also change the resale distribution
      method from time to time (subject to amendment of the registration statement
      as
      required to describe such changes). If such distribution is effected by means
      of
      an underwriting, the right of any Holder to registration pursuant to this
      Article 2 shall be conditioned upon such Holder’s participation in such
      underwriting and the inclusion of such Holder’s Registrable Securities in the
      underwriting to the extent provided herein.

     

    (b)  If
      such
      distribution is effected by means of an underwriting, the Company (together
      with
      all Holders proposing to distribute their securities through such underwriting)
      shall enter into an underwriting agreement in customary form with a managing
      underwriter of nationally recognized standing selected for such underwriting
      by
      a majority in interest of the Holders and approved by the Company, which
      approval shall not be unreasonably withheld.

     

    (c)  If
      any
      Holder disapproves of the terms of the underwriting, such person may elect
      to
      withdraw therefrom by written notice to the Company, the managing underwriter
      and the other Holders. The Registrable Securities and/or other securities so
      withdrawn shall also be withdrawn from registration.

     

    2.3  Inclusion
      of Shares by the Company.
      If the
      resale distribution of Registrable Securities is being effected by means of
      an
      underwriting and if the managing underwriter will not limit the number of
      Registrable Securities to be underwritten, the Company may include securities
      for its own account or for the account of others in such registration if the
      managing underwriter so agrees. The inclusion of such shares shall be on the
      same terms as the registration of shares held by the Holders. In the event
      that
      the underwriters exclude some of the securities to be registered, the securities
      to be sold for the account of the Company and any other holders shall be
      excluded in their entirety prior to the exclusion of any Registrable
      Securities.

     

    ARTICLE
      3.

    COMPANY
      REGISTRATION

     

    3.1  Notice
      of Registration to Holders.
      If, at
      any time after the date hereof, the Company determines to register any of its
      securities, either for its own account or the account of a security holder
      or
      holders, other than (i) a registration relating solely to employee benefit
      plans
      on Form S-8 (or any successor form) or (ii) a registration relating solely
      to a
      Commission Rule 145 transaction on Form S-4 (or any successor form), the Company
      will:

     

    (a)  promptly
      give to each Holder written notice thereof and

     

    (b)  include
      in such registration (and any related qualification under blue sky laws or
      other
      compliance), and in any underwriting involved therein, all the Registrable
      Securities specified in a written request or requests, made within 30 days
      after
      receipt of such written notice from the Company described in Section 3.1(a),
      by
      any Holder or Holders, subject to any reductions in the Registrable Securities
      to be registered made in the manner set forth in Section 3.2(a).

     

    
      
        
        

      

      
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    3.2  Underwriting.
      If the
      registration of which the Company gives notice is for an offering involving
      an
      underwriting, the Company shall so advise the Holders as a part of the written
      notice given pursuant to Section 3.1(a). In such event, the right of any Holder
      to registration pursuant to this Article 3 shall be conditioned upon such
      Holder’s participation in such underwriting and the inclusion of such Holder’s
      Registrable Securities in the underwriting to the extent provided herein. All
      Holders proposing to distribute their securities through such underwriting
      shall
      (together with the Company) enter into an underwriting agreement in customary
      form with the managing underwriter selected for such underwriting by the
      Company.

     

    (a)  Notwithstanding
      any other provision of this Article 3, if the managing underwriter determines
      that marketing factors require a limitation of the number of shares to be
      underwritten, the underwriter may exclude some or all Registrable Securities
      from such registration and underwriting. The Company shall so advise all Holders
      of Registrable Securities, and the number of shares of Common Stock to be
      included in such registration shall be allocated as follows: first, for the
      account of the Company, all shares of Common Stock proposed to be sold by the
      Company; and second, for the account of the Holders and any other shareholders
      of the Company participating in such registration, the number of shares of
      Common Stock requested to be included in the registration by the Holders and
      such other shareholders in proportion, as nearly as practicable, to the
      respective amounts of Registrable Securities that are proposed to be offered
      and
      sold by the Holders and such other shareholders of Registrable Securities at
      the
      time of filing the registration statement. No Registrable Securities excluded
      from the underwriting in this Article 3 by reason of the underwriters’ marketing
      limitation shall be included in such registration.

     

    (b)  The
      Company shall so advise all Holders and the other holders distributing their
      securities through such underwriting of any such limitation, and the number
      of
      shares of Registrable Securities held by Holders that may be included in the
      registration. If any Holder disapproves of the terms of any such underwriting,
      such Holder may elect to withdraw therefrom by written notice to the Company
      and
      the managing underwriter. Any securities excluded or withdrawn from such
      underwriting shall be withdrawn from such registration, but the Holder shall
      continue to be bound by the terms hereof.

     

    (c)  The
      Company shall have the right to terminate or withdraw any registration initiated
      by it under this Article 3 prior to the effectiveness of such registration,
      whether or not a Holder has elected to include Registrable Securities in such
      registration.

     

    ARTICLE
      4.

    EXPENSES
      OF REGISTRATION

     

    All
      Registration Expenses incurred in connection with any registration,
      qualification or compliance pursuant to Articles 2 and 3 hereof, and the
      reasonable fees of one counsel for the Holders of Registrable Securities in
      the
      case of registration pursuant to Article 2 hereof shall be borne by the Company;
      provided, however, that any expenses incurred as a result of any amendment
      described in Section 2.2(a) shall be borne by the Holders of the Registrable
      Securities being registered in such registration. All Selling Expenses relating
      to Registrable Securities registered by the Holders shall be borne by the
      Holders of such Registrable Securities pro rata on the basis of the number
      of
      shares so registered.

     

    
      
        
        

      

      
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    ARTICLE
      5.

    REGISTRATION
      PROCEDURES

     

    5.1  In
      the
      case of each registration effected by the Company pursuant to this Agreement,
      the Company will keep each Holder advised in writing as to the initiation of
      each registration and as to the completion thereof. The Company agrees to use
      its best efforts to effect or cause such registration to permit the sale of
      the
      Registrable Securities covered thereby by the Holders thereof in accordance
      with
      the intended method or methods of distribution thereof described in such
      registration statement. In connection with any registration of any Registrable
      Securities, the Company shall:

     

    (a)  prepare
      and file with the Commission a registration statement with respect to such
      Registrable Securities and use its best efforts to cause such registration
      statement filed to become effective;

     

    (b)  maintain
      the effectiveness of such registration statement until the earlier of (A) six
      years after the date that the registration statement filed pursuant to Section
      2.1 is first declared effective by the Commission, (B) the date on which all
      of
      the Registrable Securities covered by a registration statement may be sold
      by
      the Holders pursuant to Rule 144(k) or (C) such time as all of the Registrable
      Securities have been publicly sold pursuant to a registration
      statement;

     

    (c)  prepare
      and file with the Commission such amendments and supplements to such
      registration statement and the prospectus included therein as may be necessary
      to effect and maintain the effectiveness of such registration statement as
      may
      be required by the applicable rules and regulations of the Commission and the
      instructions applicable to the form of such registration statement and furnish
      to the Holders of the Registrable Securities covered thereby copies of any
      such
      supplement or amendment prior to this being used and filed with the
      Commission;

     

    (d)  promptly
      notify the Holders of Registrable Securities to be included in a registration
      statement hereunder, the sales or placement agent, if any, therefor and the
      managing underwriter of the securities being sold, and confirm such advice
      in
      writing, (A) when such registration statement or the prospectus included therein
      or any prospectus amendment or supplement or post-effective amendment has been
      filed, and, with respect to such registration statement or any post-effective
      amendment, when the same has become effective, (B) of the issuance by the
      Commission of any stop order suspending the effectiveness of such registration
      statement or the initiation of any proceedings for that purpose, (C) of the
      receipt by the Company of any notification with respect to the suspension of
      the
      qualification of the Registrable Securities for sale in any jurisdiction or
      the
      initiation or threatening of any proceeding for such purpose or (D) if, to
      the
      Company’s knowledge, it shall be the case, at any time when a prospectus is
      required to be delivered under the Securities Act, that such registration
      statement or prospectus, or any document incorporated by reference in any of
      the
      foregoing, 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 in light of the circumstances then existing;

     

    
      
        
        

      

      
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    (e)  use
      its
      best efforts to obtain the withdrawal of any order suspending the effectiveness
      of such registration statement or any post-effective amendment thereto or of
      any
      order suspending or preventing the use of any related prospectus or suspending
      the qualification of any Registrable Securities included in such registration
      statement for sale in any jurisdiction at the earliest practicable
      date;

     

    (f)  furnish
      to each Holder of Registrable Securities to be included in such registration
      statement hereunder, each placement or sales agent, if any, therefor and each
      underwriter, if any, thereof a conformed copy of such registration statement,
      each such amendment and supplement thereto (in each case excluding all exhibits
      and documents incorporated by reference) and such number of copies of the
      registration statement (excluding exhibits thereto and documents incorporated
      by
      reference therein unless specifically so requested by such holder, agent or
      underwriter, as the case may be) of the prospectus included in such registration
      statement (including each preliminary prospectus and any summary prospectus),
      in
      conformity with the requirements of the Securities Act, as such Holder, agent,
      if any, and underwriter, if any, may reasonably request in order to facilitate
      the disposition of the Registrable Securities owned by such Holder sold by
      such
      agent or underwritten by such underwriter and to permit such Holder, agent
      and
      underwriter to satisfy the prospectus delivery requirements of the Securities
      Act;

     

    (g)  use
      its
      best efforts to (A) register or qualify the Registrable Securities to be
      included in such registration statement under such other securities laws or
      blue
      sky laws of such states of the United States or the District of Columbia to
      be
      designated by the Holders of a majority of such Registrable Securities
      participating in such registration and each placement or sales agent, if any,
      therefor and underwriter, if any, thereof, as any Holder and each underwriter,
      if any, of the securities being sold shall reasonably request (provided, that
      the Company shall not be required to use its best efforts to register or qualify
      the Registrable Securities in more than 15 such jurisdictions unless the
      expenses thereof are borne by the Holders requesting such efforts), (B) keep
      such registrations or qualifications in effect and comply with such laws at
      all
      times during the period described in Section 5.1(b) above and (C) take any
      and
      all such actions as may be reasonably necessary or advisable to enable such
      Holder, agent, if any, and underwriter to consummate the disposition in such
      jurisdictions of such Registrable Securities; provided, however, that in order
      to fulfill the foregoing obligations under this Section 5.1(g), the Company
      shall not (unless otherwise required to do so in any jurisdiction) be required
      to (1) qualify generally to do business as a foreign company or a broker-dealer,
      (2) execute a general consent to service of process or (3) subject itself to
      taxation; and

     

    (h)  furnish,
      at the request of a majority of the Holders participating in the registration,
      on the date that such Registrable Securities are delivered to the underwriters
      for sale, if such securities are being sold through underwriters, or, if such
      securities are not being sold through underwriters, on the date that the
      registration statement with respect to such securities becomes effective, (i)
      an
      opinion, dated as of such date, of the counsel representing the Company for
      the
      purposes of such registration, in form and substance as is customarily given
      to
      underwriters in an underwritten public offering and reasonably satisfactory
      to a
      majority in interest of the Holders requesting registration, addressed to the
      underwriters, if any, and to the Holders requesting registration of Registrable
      Securities and (ii) a letter dated as of such date, from the independent
      certified public accountants of the Company, in form and substance as is
      customarily given by independent certified public accountants to underwriters
      in
      an underwritten public offering and reasonably satisfactory to a majority in
      interest of the Holders requesting registration, addressed to the underwriters,
      if any, and if permitted by applicable accounting standards, to the Holders
      requesting registration of Registrable Securities.

     

    
      
        
        

      

      
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    5.2  The
      Company may require each Holder of Registrable Securities as to which any
      registration is being effected to furnish to the Company such information
      regarding such Holder and such Holder’s method of distribution of such
      Registrable Securities as the Company may from time to time reasonably request
      in writing. Each such Holder agrees to notify the Company as promptly as
      practicable of any inaccuracy or change in information previously furnished
      by
      such Holder to the Company or of the occurrence of any event in either case
      as a
      result of which any prospectus relating to such registration contains or would
      contain an untrue statement of a material fact regarding such Holder or the
      distribution of such Registrable Securities or omits to state any material
      fact
      regarding such Holder or the distribution of such Registrable Securities
      required to be stated therein or necessary to make the statements therein not
      misleading in light of the circumstances then existing, and promptly to furnish
      to the Company any additional information required to correct and update any
      previously furnished information or required so that such prospectus shall
      not
      contain, with respect to such Holder or the distribution of such Registrable
      Securities, an untrue statement or a material fact or omit to state a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading in light of the circumstances then existing.

     

    5.3  Each
      of
      the Holders will comply with the provisions of the Securities Act with respect
      to disposition of the Registrable Securities to be included in any registration
      statement filed by the Company.

     

    ARTICLE
      6.

    INDEMNIFICATION

     

    6.1  The
      Company will indemnify each Holder, each of its officers, directors and
      partners, and such Holder’s legal counsel and independent accountants, if any,
      and each person controlling any such persons within the meaning of Section
      15 of
      the Securities Act, with respect to which registration, qualification or
      compliance has been effected pursuant to this Agreement, and each underwriter,
      if any, and each person who controls any underwriter within the meaning of
      Section 15 of the Securities Act, against all expenses, claims, losses, damages
      and liabilities (or actions in respect thereof), including any of the foregoing
      incurred in settlement of any litigation, commenced or threatened, arising
      out
      of or based on any untrue statement (or alleged untrue statement) of a material
      fact contained in any registration statement, prospectus, offering circular
      or
      other document, or any amendment or supplement thereof, incident to any such
      registration, qualification or compliance, or based on 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, or any violation by
      the
      Company of any rule or regulation promulgated under the Securities Act or any
      state securities laws applicable to the Company and relating to action or
      inaction by the Company in connection with any such registration, qualification
      or compliance, and will reimburse each such Holder, each of its officers,
      directors and partners and such Holder’s legal counsel and independent
      accountants, and each person controlling any such persons, each such underwriter
      and each person who controls any such underwriter, for any legal and any other
      expenses reasonably incurred in connection with investigating, preparing or
      defending any such claim, loss, damage, liability or action; provided, however,
      that the Company will not be liable in any such case to the extent that any
      such
      claim, loss, damage, liability or expense arises out of or is based on any
      untrue statement or omission or alleged untrue statement or omission made in
      reliance upon and in conformity with written information furnished to the
      Company by such Holder, officers, directors, partners, legal counsel,
      accountants, underwriter or controlling persons, and expressly intended for
      use
      in such registration statement, prospectus, offering circular or other document,
      or any amendment or supplement thereof.

     

    
      
        
        

      

      
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    6.2  Each
      Holder will, if Registrable Securities held by such Holder are included in
      the
      securities as to which such registration, qualification or compliance is being
      effected, indemnify the Company, each of its directors and officers and its
      legal counsel and independent accountants, each underwriter, if any, of the
      Company’s securities covered by such a registration statement, each person who
      controls the Company or such underwriter within the meaning of Section 15 of
      the
      Securities Act, and each other such Holder, each of its officers, directors,
      partners, legal counsel and independent accountants, if any, and each person
      controlling such Holder within the meaning of Section 15 of the Securities
      Act,
      against all expenses, claims, losses, damages and liabilities (or actions in
      respect thereof), including any of the foregoing incurred in settlement of
      any
      litigation, commenced or threatened, arising out of or based on any untrue
      statement (or alleged untrue statement) of a material fact contained in any
      such
      registration statement, prospectus, offering circular or other document, or
      any
      amendment or supplement thereto, incident to any such registration,
      qualification or compliance or based on 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, and will reimburse the Company, such
      Holders, such directors, officers, partners, legal counsel, independent
      accountants, underwriters or control persons for any legal or any other expenses
      reasonably incurred in connection with investigating, preparing or defending
      any
      such claim, loss, damage, liability or action, in each case to the extent,
      but
      only to the extent, that such untrue statement (or alleged untrue statement)
      or
      omission (or alleged omission) is made in such registration statement,
      prospectus, offering circular, other document or amendment or supplement in
      reliance upon and in conformity with written information furnished to the
      Company by such Holder and expressly intended for use in such registration
      statement, prospectus, offering circular or other document, or any amendment
      or
      supplement thereof; provided, however, that the obligations of each Holder
      hereunder shall be limited to an amount equal to the proceeds to such Holder
      of
      Registrable Securities sold as contemplated herein.

     

    
      
        
        

      

      
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    6.3  Each
      party entitled to indemnification under this Article 6 (the “Indemnified
      Party”)
      shall
      give notice to the party required to provide indemnification (the “Indemnifying
      Party”)
      promptly after such Indemnified Party has actual knowledge of any claim as
      to
      which indemnity may be sought, and shall permit the Indemnifying Party to assume
      the defense of any such claim or any litigation resulting therefrom, provided
      that counsel for the Indemnifying Party, who shall conduct the defense of such
      claim or litigation, shall be approved by the Indemnified Party (whose approval
      shall not unreasonably be withheld). The Indemnified Party may participate
      in
      such defense at such party’s expense; provided, however, that the Indemnifying
      Party shall bear the expense of such defense of the Indemnified Party if
      representation of both parties by the same counsel would be inappropriate due
      to
      actual or potential conflicts of interest. The failure of any Indemnified Party
      to give notice as provided herein shall not relieve the Indemnifying Party
      of
      its obligations under this Agreement, unless such failure is prejudicial to
      the
      ability of the Indemnifying Party to defend the action. No Indemnifying Party,
      in the defense of any such claim or litigation, shall, except with the consent
      of each 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 or litigation.

     

    6.4  If
      the
      indemnification provided for in Section 6.1 or 6.2 is unavailable or
      insufficient to hold harmless an Indemnified Party, then each Indemnifying
      Party
      shall contribute to the amount paid or payable by such Indemnified Party as
      a
      result of the expenses, claims, losses, damages or liabilities (or actions
      or
      proceedings in respect thereof) referred to in Section 6.1 or 6.2, in such
      proportion as is appropriate to reflect the relative fault of the Company on
      the
      one hand and the sellers of Registrable Securities on the other hand in
      connection with statements or omissions which resulted in such losses, claims,
      damages or liabilities (or actions or proceedings in respect thereof) or
      expenses, as well as any other relevant equitable considerations. The relative
      fault shall be determined by reference to, among other things, whether the
      untrue or alleged untrue statement of a material fact or the omission or alleged
      omission to state a material fact relates to information supplied by the Company
      or the sellers of Registrable Securities and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      untrue statement or omission. The Company and the Holders agree that it would
      not be just and equitable if contributions pursuant to this Section 6.4 were
      to
      be determined by pro rata allocation (even if all Sellers of Registrable
      Securities were treated as one entity for such purpose) or by any other method
      of allocation which does not take account of the equitable considerations
      referred to in the first sentence of this Section 6.4. The amount paid by an
      Indemnified Party as a result of the expenses, claims, losses, damages or
      liabilities (or actions or proceedings in respect thereof) referred to in the
      first sentence of this Section 6.4 shall be deemed to include any legal or
      other
      expenses reasonably incurred by such Indemnified Party in connection with
      investigating or defending any claim, action or proceeding which is the subject
      of this Section 6.4. No person guilty of fraudulent misrepresentation (within
      the meaning of Section 11(f) of the Securities Act) shall be entitled to
      contribution from any person who was not guilty of such fraudulent
      misrepresentation. The obligations of sellers of Registrable Securities to
      contribute pursuant to this Section 6.4 shall be several in proportion to the
      respective amount of Registrable Securities sold by them pursuant to a
      registration statement.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    ARTICLE
      7. 

    RULE
      144 REPORTING

     

    With
      a
      view to making available the benefits of certain rules and regulations of the
      Commission which may at any time permit the sale of securities of the Company
      to
      the public without registration, the Company agrees to use its best efforts
      to:

     

    7.1  Make
      and
      keep public information regarding the Company available as those terms are
      understood and defined in Rule 144 under the Securities Act; and

     

    7.2  File
      with
      the Commission in a timely manner all reports and other documents required
      of
      the Company under the Securities Act and the Exchange Act after the date
      hereof.

     

    ARTICLE
      8.

    TRANSFER
      OF REGISTRATION RIGHTS

     

    The
      rights to cause the Company to register Registrable Securities under this
      Agreement may be assigned by a Holder to Whitebox Advisors, LLC (“Whitebox
      Advisors”)
      or to a
      transferee or assignee of Registrable Securities that (i) is a subsidiary,
      parent or affiliated entity, general partner or limited partner, member or
      retired partner or member of a Holder or of Whitebox Advisors, (ii) is an
      affiliated fund, a follow-on fund or predecessor fund of a Holder or a related
      fund or of Whitebox Advisors, (iii) is a Holder’s family member or trust
      for the benefit of an individual Holder or (iv) acquires at least
      50,000 shares
      of
      Registrable Securities (as adjusted for stock splits, stock dividends, stock
      combinations, reclassifications, recapitalizations, mergers, consolidations
      or
      other similar events); provided, however, (A) the transferor shall, within
      ten days before such transfer, furnish to the Company written notice of the
      name
      and address of such transferee or assignee and the securities with respect
      to
      which such registration rights are being assigned and (B) such transferee
      shall agree in writing to be subject to all restrictions set forth in this
      Agreement. In each case, such rights may only be transferred together with
      the
      underlying Registrable Securities in a transfer permitted by the Securities
      Act
      and applicable state securities laws. Any such transferee or assignee shall
      be
      deemed a Holder hereunder.

     

    ARTICLE
      9.

    LIMITATIONS
      ON REGISTRATION RIGHTS GRANTED TO OTHER SECURITIES

     

    From
      and
      after the date of this Agreement, the Company shall not without the prior
      written consent of the holders of a majority of the Registrable Securities
      then
      outstanding, enter into any agreement with any holder or prospective holder
      of
      any securities of the Company providing for the grant to such holder of
      registration rights superior to those granted herein.

     

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    ARTICLE
      10.

    MISCELLANEOUS

     

    10.1  Governing
      Law.
      The
      laws of the state of Minnesota shall govern the interpretation, validity and
      performance of the terms of this agreement, regardless of the law that might
      be
      applied under principles of conflicts of law.

     

    10.2  Successors
      and Assigns.
      Except
      as otherwise expressly provided herein, the provisions hereof shall inure to
      the
      benefit of, and be binding upon, the successors, assigns, heirs, executors
      and
      administrators of the parties hereto.

     

    10.3  Entire
      Agreement.
      This
      Agreement constitutes the full and entire understanding and agreement between
      the parties with regard to the subject matter hereof.

     

    10.4  Termination.
      The
      obligations of the Company to register Registrable Securities under this
      Agreement shall terminate on the tenth anniversary of the date of this
      Agreement. In addition, the right of any Holder to request inclusion in any
      registration under Article 3 shall terminate on the date hereafter when (i)
      such
      Holder (together with its affiliates, partners, members and former partners
      and
      members) holds less than 1% of the Company’s outstanding Common Stock and (ii)
      all Registrable Securities held by or issuable to such Holder (and its
      affiliates, partners, members and former partners and members) upon conversion
      of the Note, upon payment on the Note or upon exercise of the Warrant may be
      sold under Rule 144 during any 90 day period.

     

    10.5  Notices.
      All
      notices, requests, consents, and other communications hereunder shall be in
      writing and shall be deemed effectively given and received when made if
      delivered in person (with written confirmation of receipt) or on the date
      received if sent by national overnight courier service (receipt requested)
      or
      when receipt is acknowledged by the receiving party if delivered by facsimile
      or
      electronic email, addressed as follows:

     

    
      	(a)  	
              if
                to the Company, at

            

    

     

    Equitex,
      Inc.

    7315
      East
      Peakview Avenue

    Englewood,
      Colorado 80111

    Attention:
      Henry Fong, President 

    Facsimile:
      (561) 624-0886

    Email:
      hfong@equitex.net

    

    with
      a
      copy to:

    

    Maslon
      Edelman Borman & Brand LLP

    3300
      Wells Fargo Center, 90 South 7th
      Street

    Minneapolis,
      Minnesota 55402

    Attention:
      William M. Mower, Esq.

    Facsimile:
      (612) 642-8358

    Email:
      bill.mower@maslon.com 

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    
      	(b)  	
              if
                to the Investors, in care of:

            

    

     

    Whitebox
      Advisors, LLC

    3033
      Excelsior Boulevard, Suite 300

    Minneapolis,
      Minnesota 55416

    Attention:
      Jonathan Wood, Chief Financial Officer

    Facsimile:
      (612) 253-6151

    Email:
      jwood@whiteboxadvisors.com

    

    with
      a
      copy to:

    

    Messerli
      & Kramer P.A.

    150
      South
      Fifth Street, Suite 1800

    Minneapolis,
      Minnesota 55402

    Attention:
      Jeffrey C. Robbins, Esq.

    Facsimile:
      (612) 672-3777

    Email:
      jrobbins@mandklaw.com

    

    (c)  if
      to any
      other Holder, to the address reflected on the records of the Company, or such
      other address or addresses as shall have been furnished in writing by such
      party
      to the Company and to the other parties to this Agreement.

     

    10.6  Severability.
      The
      invalidity, illegality or unenforceability of one or more of the provisions
      of
      this Agreement in any jurisdiction shall not affect the validity, legality
      or
      enforceability of the remainder of this Agreement in such jurisdiction or the
      validity, legality or enforceability of this Agreement, including any such
      provision, in any other jurisdiction, it being intended that all rights and
      obligations of the parties hereunder shall be enforceable to the fullest extent
      permitted by law.

     

    10.7  Titles
      and Subtitles.
      The
      titles of the sections and subsections of this Agreement are for convenience
      of
      reference only and are not to be considered in construing this
      Agreement.

     

    10.8  Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      an original, but all of which together constitute one instrument.

     

     

    [signature
      page follows]

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Registration Rights Agreement to be executed
      and
      delivered as of the date first written above.

     

    
      
        	 	 	 
	 	EQUITEX,
                INC.
	 
 	 
 	 
 
	 	By:  	/s/ Henry
                Fong 
	 	
                

                Henry
                  Fong

                President

              

      

      
        	 	 	 
	 	PANDORA
                SELECT PARTNERS L.P.
	 
 	 
 	 
 
	 	By:  	/s/ Jonathan
                Wood
	 	
                

                Name
                  Jonathan
                  Wood

                Its
                  Managing Director

              

      

      
        	 	 	 
	 	WHITEBOX
                HEDGED HIGH YIELD PARTNERS L.P.
	 
 	 
 	 
 
	 	By:  	/s/ Jonathan
                Wood
	 	
                

                Name
                  Jonathan
                  Wood

                Its
                  Managing Director

              

      

    
      
        
        

      

      -13-EXHIBIT 10.9

    Exhibit
      10.9

     

    

      STOCK
        PLEDGE AGREEMENT

      

      This
        Stock Pledge Agreement (the “Agreement”),
        dated
        as of September 15, 2005, is entered into by and among Equitex,
        Inc.,
        a
        Delaware corporation (the
        “Pledgor”), Pandora
        Select Partners, L.P., a
        British
        Virgin Islands limited partnership
        (“Pandora")
        and
Whitebox
        Hedged High Yield Partners, L.P.,
        a
        British Virgin Islands limited partnership (“WHHY”).
        Pandora and WHHY are referred to herein individually as a “Lender”
and
        together as the “Lenders”.

      

      W
        I T N E
        S S E T H

      

      WHEREAS,
        the
        Lenders and Pledgor have entered into a Purchase Agreement dated
        as
        of this date (the "Purchase
        Agreement"),
        pursuant to which, among other things, each Lender is purchasing a secured
        convertible promissory note (together, the “Notes”)
        and a
        warrant to purchase shares of Pledgor's common stock in consideration of
        a
        collective $1,500,000 loan (the “Loan”);

      

      WHEREAS,
        the
        Pledgor has agreed, pursuant to an Amended Security Agreement of this date
        (the
“Amended
        Security Agreement”),
        to
        pledge all of its assets to the Lenders.

      

      WHEREAS,
        the
        execution of this Agreement is a condition precedent to the obligation of
        each
        Lender to perform its obligation under the Purchase Agreement. 

      

      NOW,
        THEREFORE,
        in
        consideration of the premises and mutual covenants herein contained, and
        in
        further consideration of the Loan to the Pledgor, the parties hereby agree
        as
        follows:

      

      Section
        1
        - Pledge.
        The
        Pledgor hereby pledges and assigns to each Lender, and grants to each Lender
        a
        continuing security interest in, the following (the “Pledged
        Collateral”):

      

      (i) The
        stock
        described in Schedule 1 attached hereto (the “Pledged
        Shares”)
        and
        the certificates representing the Pledged Shares, and all dividends (whether
        stock dividends or cash dividends), and cash, instruments and other property
        from time to time received, receivable or otherwise distributed in respect
        of or
        in exchange for any or all of the Pledged Shares;

      

      (ii) All
        additional shares of stock of the issuer of the Pledged Shares from time
        to time
        acquired by the Pledgor by stock split or by the exercise of any conversion
        or
        option rights, and the certificates representing such additional shares,
        and all
        dividends, cash, instruments and other property from time to time received,
        receivable or otherwise distributed in respect of or in exchange for any
        or all
        of such shares; and

      

      (iii) Any
        and
        all proceeds of any of the foregoing upon the sale or other disposal of the
        foregoing for any reason.

      

      The
        certificates for the Pledged Shares accompanied by instruments of assignment
        duly executed in blank by the Pledgor have been delivered to the Collection
        Agent (as defined in the Amended Security Agreement).

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        2
        - Security
        for Obligations.
        This
        Agreement secures the payment and performance of all Obligations (as defined
        in
        the Amended Security Agreement) of the Pledgor.

      

      Section
        3
        - Further
        Assurances.
        The
        Pledgor agrees that at any time and from time to time, at the expense of
        the
        Pledgor, the Pledgor will promptly execute and deliver all further instruments
        and documents, and take all further action, that may be reasonably necessary
        or
        desirable, or that the Lender may reasonably request, in order to perfect
        and
        protect any security interest granted or purported to be granted hereby or
        to
        enable the Lender to exercise and enforce its respective rights and remedies
        hereunder with respect to any Pledged Collateral. 

      

      Section
        4
        - Voting
        Rights; Dividends; Etc.
        So long
        as no Event of Default (as defined in the Amended Security Agreement and
        the
        Notes) exists and is continuing:

      

      (i) The
        Pledgor shall be entitled to exercise any and all voting and other consequential
        rights pertaining to the Pledged Collateral or any part thereof for any purpose
        not inconsistent with the terms of this Agreement or the Loan Documents;
        provided,
        however,
        that,
        prior to exercising any material right as a shareholder, the Pledgor shall
        first
        give the Lender at least five days’ written notice of the manner in which the
        Pledgor intends to exercise, or the reasons for refraining from exercising,
        any
        right as a shareholder and shall not exercise any such right if the exercise
        of
        such right could constitute an Event of Default.

      

      (ii) The
        Pledgor shall be entitled to receive and retain any and all cash dividends
        paid
        in respect of the Pledged Collateral that may be permitted under and in
        accordance with the Loan Documents (as defined in the Amended Security
        Agreement). 

      

      Section
        5
        - Transfers
        and Other Liens; Additional Shares.
        The
        Pledgor agrees that it will not sell, transfer or otherwise dispose of, or
        grant
        any option to buy or sell with respect to, any of the Pledged Collateral,
        or
        create or permit to exist any lien, security interest, or other charge or
        encumbrance upon or with respect to any of the Pledged Collateral, except
        for
        the security interest under this Agreement.

      

      Section
        6
        - Lender
        Appointed Attorney-in-Fact.
        The
        Pledgor hereby appoints each Lender attorney-in-fact, with full authority
        in the
        place and stead of the Pledgor and in the name of the Pledgor or otherwise,
        to
        take any action and to execute any instrument which such Lender may deem
        necessary or advisable to accomplish the purposes of this Agreement, including,
        without limitation, upon and during the continuation of any Event of Default
        (as
        defined in the Amended Security Agreement and the Notes), to receive, endorse
        and collect all instruments made payable to the Pledgor representing any
        dividend, interest payment or other distribution in respect of the Pledged
        Collateral or any part thereof and to give full discharge for the same. The
        Pledgor covenants and agrees to execute any further power-of-attorney that
        may,
        as determined in such Lender’s reasonable discretion, be necessary or advisable
        to appoint each Lender as the Pledgor’s attorney-in-fact as set forth in this
        Section 6. 

      

      Section
        7
        - Remedies
        upon Default.
        If any
        Event of Default (as defined in the Amended Security Agreement and the Notes)
        shall have occurred and be continuing:

      

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      (a) Upon
        written notice from the Lender, the right of Pledgor to receive dividends
        and to
        vote the shares shall cease, and all such rights shall become vested in such
        Lender. In addition to other rights and remedies provided for herein or
        otherwise available to it, each Lender may exercise all the rights and remedies
        of a secured party on default under the Uniform Commercial Code in effect
        in the
        State of Delaware at that time, and each Lender may also, without notice
        except
        as specified below, sell the Pledged Collateral or any part thereof, in
        accordance with and subject to applicable law, for cash, on credit or for
        future
        delivery, and upon such other terms as are commercially reasonable. The Lender
        shall not be obligated to make any sale of Pledged Collateral regardless
        of
        notice of sale having been given.

      

      (b) Any
        cash
        held by the Lender as Pledged Collateral and all cash proceeds received by
        such
        Lender from any sale of or collection from all or any part of the Pledged
        Collateral, may be held by such Lender as collateral for, and/or be applied
        in
        whole or in part by such Lender against, all or any part of the Obligations
        of
        the Pledgor under the Loan Documents (in the manner as provided in the Loan
        Documents). Any surplus of such cash or cash proceeds held by the Lender
        and
        remaining after payment in full of all the Obligations shall be paid to the
        Pledgor.

      

      Section
        8
        - Enforcement
        Rights.
        If the
        Lender shall determine to exercise its right hereunder to sell all or any
        of the
        Pledged Collateral, the Pledgor agrees that, upon request of the Lender,
        the
        Pledgor will do or cause to be done all such other acts and things as may
        be
        reasonably necessary to make such sale of the Pledged Collateral or any part
        thereof valid and binding and in compliance with applicable law.

      

      Section
        9
        - Security
        Interest Absolute.
        All
        rights of the Lenders and security interests hereunder, and all obligations
        of
        the Pledgor hereunder, shall be absolute and unconditional irrespective
        of:

      

      (i) any
        lack
        of validity or enforceability of the Obligations or any agreement or instrument
        relating thereto;

      

      (ii) any
        change in the time, manner or place of payment of, or in any other term of,
        all
        or any of the Obligations, or any amendment or waiver or any consent to any
        departure from the Notes or any of the other Loan Documents;

      

      (iii) any
        exchange, release or non-perfection of any other collateral, or any release
        or
        amendment or waiver of, or consent to departure from, any guaranty, for all
        or
        any of the Obligations of the Pledgor under the Loan
        Documents;
        or

      

      (iv) any
        other
        circumstance which might otherwise constitute a defense available to, or
        a
        discharge of, the Pledgor, any other party to the Loan Documents, or a third
        party obligor except for such waivers as are required by applicable law and
        cannot be waived under applicable law.

      

      Section
        10 - Amendment.
        No
        amendment or waiver of any provisions of this Agreement shall be effective
        unless the same shall be in writing and signed by each Lender and the Pledgor,
        and then such waiver or consent shall be effective only in the specific instance
        and for the specific purpose for which given.

      

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      Section
        11 - Continuing
        Security Interest; Transfer of Note(s).
        This
        Agreement shall create a continuing security interest in the Pledged Collateral
        and shall (i) remain in full force and effect until payment in full of the
        Obligations (other than contingent indemnity obligations), (ii) be binding
        upon
        the Pledgor, its successors, legal representatives, estate, heirs, devisees,
        legatees and assigns, and (iii) inure to the benefit of each Lender and its
        successors, permitted transferees and permitted assigns. Upon the payment
        and
        performance in full of the Obligations of the Pledgor under the Loan Documents,
        the Lenders shall deliver such of the Pledged Collateral as shall not have
        been
        sold or otherwise applied pursuant to the terms hereof to the Pledgor.

      

      Section
        12 - Governing
        Law; Terms.
        This
        Agreement shall be governed by the laws of the State of Minnesota, without
        regard to the choice of law provisions thereof. Unless otherwise defined
        herein,
        capitalized terms used herein shall have the respective meanings given in
        the
        Loan Documents.

      

      Section
        13 - Expenses.
        The
        Pledgor will upon demand pay to each Lender the amount of any and all reasonable
        costs and expenses, including the reasonable fees and expenses of its counsel
        and of any experts and agents, which such Lender may incur in connection
        with
        (i) the custody or preservation of, or the sale, collection from, or other
        realization upon, any of the Pledged Collateral, (ii) the exercise or
        enforcement of any of the rights of the Lender hereunder or (iii) the failure
        by
        the Pledgor to perform or observe any of the provisions hereof.

      

      Section
        14 - Representations
        and Warranties.
        The
        Pledgor represents and warrants, which representations and warranties shall
        survive the execution and delivery of this Agreement, that:

      

      (a) The
        Pledgor is the direct and beneficial owner of the Pledged Shares, and the
        Pledged Collateral is owned by the Pledgor free and clear of any lien, security
        interest, charge or encumbrance.

      

      (b) The
        execution, delivery and performance by Pledgor of this Agreement has been
        duly
        authorized, does not require the consent of any governmental body or other
        regulatory authority, and will not violate, conflict with or result in a
        breach
        of any provision of any agreement, indenture or other instrument to which
        the
        Pledgor is a party or is bound by.

      

      (c) None
        of
        the Pledged Shares has been issued or transferred in violation of any applicable
        federal and state securities laws.

      

      (d) There
        are
        no options, warrants, calls, conversion rights or other similar commitments
        relating to the Pledged Shares.

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      Section
        15 - Notices.
        All
        notices and other communications under this Agreement shall be in writing
        and
        deemed to have been given: (a) when made if personally delivered by hand
        (with
        written confirmation of receipt); (b) on the date received if sent via national
        overnight courier; or (c) when receipt is acknowledged by the receiving party
        if
        sent via facsimile or electronic mail, addressed to the address of such party
        as
        follows:

      

      

      If
        to the
        Pledgor:

      

      Equitex,
        Inc.

      Englewood,
        Colorado 80111

      Attention:
        Henry Fong, President

      7315
        East
        Peakview Avenue

      Facsimile:
        (561) 624-0866

      Email:
        hfong@equitex.net

      

      If
        to the
        Lenders, in care of:

      

      Whitebox
        Advisors, LLC

      3033
        Excelsior Boulevard, Suite 300

      Minneapolis,
        MN 55416

      Attention:
        Jonathan Wood, Chief Financial Officer

      Facsimile:
        (612) 253-6151

      Email:
        jwood@whiteboxadvisors.com

      

      [Signature
        Page Follows]

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        undersigned have executed and delivered this Stock Pledge Agreement as of
        the
        date first above written.

       

      
        
          	 	 	 
	 	PLEDGOR:
                  
	 	 
	 	Equitex, Inc.
	 
 	 
 	 
 
	 	By:  	/s/ Henry
                  Fong
	 	
                  
Henry
                  Fong, President

        

        
          	 	 	 
	 	THE
                  LENDERS:
	 	 
	 	Pandora Select Partners,
                  L.P.
	 
 	 
 	 
 
	 	By:  	/s/ Jonathan
                  Wood
	 	 	
                  
 
	 	Its:	Managing Director
	 	
                  

                

        

        
          	 	 	 
	 	Whitebox
                  Hedged High Yield Partners, L.P.
	 
 	 
 	 
 
	 	By:  	/s/ Jonathan
                  Wood
	 	 	
                  
 
	 	Its: 	Managing Director
	 	
                  

                

        

      

       

      
        
          
          

        

        -6-

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