Document:

True2Beauty, Inc. S-1/A

Exhibit 4.2

 

 

SUBSCRIPTION AGREEMENT

 

          This
Subscription Agreement (this
“Agreement”), dated as of September 29, 2014, by and among True 2 Bid, Inc., a Nevada corporation (the “Company”),
True 2 Beauty, Inc., a Nevada corporation (the “Parent Company”)(which are both collectively referred to as the “Company”
when referencing any obligations by either company related to this agreement), and each subscriber identified on the signature
page hereto (each a “Subscriber” and collectively the “Subscribers”).

 

          Whereas,
the Company proposes to offer for sale in a private placement solely to “accredited investors” (the “Offering”),
up to $350,000 in Notes, convertible into shares of the Company’s common stock, par value $.001 per share or into common
stock of the Parent Company as described in Exhibits B and D contained in this document (collectively defined as the “Common
Stock”). The Company may at its sole discretion accept an overallotment of $50,000 in additional subscriptions (the “Overallotment”);

 

          WHEREAS,
the Offering is being made on a “best efforts” no minimum basis at $50,000 per Note (the “Note Purchase Price”). The Company may at its sole discretion accept subscriptions
of lesser amounts.

 

          Whereas
, the Subscriber is delivering simultaneously herewith, unless previously submitted, a completed confidential purchaser
questionnaire (the “Questionnaire”); and

 

          Whereas
, the Company and the Subscribers are executing and delivering this Agreement in reliance upon an exemption from securities
registration afforded by the provisions of Section 4(a)(2), Section 4(a)(6) and/or Regulation D (“Regulation D”) or
Regulation S as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities
Act of 1933, as amended (the “1933 Act,” collectively the “Offering Exemption”.

 

          Now,
THEREFORE, the above whereas clauses are incorporated herein as terms to this Agreement.

 

          NOW, Therefore , in consideration of the mutual covenants and other agreements contained
in this Agreement ,the Company and the Subscribers hereby agree as follows:

 

          1.          Purchase
and Sale of Notes. Subject to the satisfaction of the terms and conditions of this Agreement, each Subscriber hereby irrevocably
agrees to purchase the Note in the amount designated on the signature page hereto (the “Subscription Amount”)
at the Note Purchase Price, and the Company shall sell such Notes to such Subscribers at the Note Purchase Price.

 

          2.          Form
of Payment. Upon execution of this Agreement by the parties, each Subscriber agrees to make the deliveries required of it as
set forth herein and the Company agrees to make the deliveries required of it as set forth herein. The Subscriber acknowledges
and agrees that all subscription amounts will be placed in a non-interest bearing escrow account pending the Closing.

 

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          3.       Terms
of the Securities. Each Note shall be in the form attached hereto as Exhibit B to the Memorandum, and will be subject
to the terms and conditions contained therein.

 

          4.1      Closing.
At the closing of the transactions contemplated herein (the “Closing”), the Subscribers shall purchase, severally
and not jointly, and the Company shall issue and sell, in the aggregate, a maximum of $350,000, subject to the Overallotment, and
the Company shall issue and sell to each Subscriber, the amount of Notes specified on the signature page hereto. Upon satisfaction
of the conditions set forth in Section 4.2, a closing (the “Closing”) will be held as soon as practicable. All
additional funds held in escrow and not accepted by the Company shall be returned to Subscribers without interest or deduction.
The Closing shall occur, from time to time, on the dates that subscriptions have been received and accepted by the Company at 301
Yamato Road Suite 1240, Boca Raton, FL 33431, or such other time and/or location as the parties shall mutually agree. At each Closing,
the conditions of Section 4.2 shall either be satisfied or waived by the appropriate parties.

 

          4.2                 Closing Conditions.

	 	 	 	 
	 	          (a)      Each Subscriber’s obligations at each Closing are conditioned upon the Company’s fulfillment (or waiver by the Subscriber in its sole discretion) of each of the following events as of the date of each such Closing and the Company’s delivery to such Subscriber of:
	 	 	 	 
	 	 	 	              (i)          this Agreement duly executed by the Company;
	 	 	 	 
	 	 	 	              (ii)         a fully endorsed convertible promissory note in the form contained in Exhibit B of this Offering evidencing an obligation by the Company in an amount equal to such Subscriber’s Subscription Amount; and
	 	          (b)      The Company’s obligations at each Closing are conditioned upon each Subscriber’s delivery to the Company of the following:
	 	 	 	 
	 	 	 	              (i)          this Agreement duly executed by such Subscriber;
	 	 	 	 
	 	 	 	              (ii)         readily available funds, deposited and cleared in the account contemplated by this Agreement, in an amount sufficient to purchase the Subscription Amount; and
	 	 	 	 
	 	 	 	              (iii)         an executed and properly completed Questionnaire if not previously provided.
	 	 	 	 
	 	          (c)      The representations and warranties of the parties set forth in this Agreement shall be true and correct in all material respects as of each Closing Date as if made on such date (except that to the extent that any such representation or warranty relates to a particular date, in which case such representation or warranty shall be true and correct in all material respects as of that particular date); and

 

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	 	          (d)          At each Closing Date, there shall have occurred no material adverse change in the Company’s consolidated business or financial condition since September 29, 2014.

 

          5.       Subscriber’s
Representations and Warranties. Each Subscriber hereby represents and warrants as of the date hereof and as of the Closing,
with regard to itself that:

	 	 
	 	          (a)          Reliance on Exemptions. The Subscriber acknowledges that the Offering has not been reviewed by the SEC or any state agency because it is intended to be a nonpublic offering exempt from the registration requirements of the 1933 Act and state securities laws. The Subscriber understands that the Company is relying in part upon the truth and accuracy of, and the Subscriber’s compliance with, the representations, warranties, agreements, acknowledgements and understandings of the Subscriber set forth herein in order to determine the availability of such exemptions and the eligibility of the Subscriber to acquire the Notes.
	 	 
	 	          
(b)        Information on Subscriber. The Subscriber is an “accredited investor” as defined in Section 2(15) of the 1933 Act
and Rule 501 of Regulation D promulgated thereunder or a Non-U.S. Person as defined in Rule 902 of Regulation S
promulgated under the 1933 Act. Such Subscriber is not required to be registered as a broker-dealer under Section
15 of the 1934 Act, is experienced in investments and business matters, has previously made investments of a
speculative nature, understands that an investment in the Securities involves a high degree of risk, has
purchased securities of United States companies in private placements in the past and, with its representatives,
has such knowledge and experience in financial, tax and other business matters as to enable the Subscriber to
utilize the information made available by the Company to evaluate the merits and risks of and to make an informed
investment decision with respect to the proposed purchase, which represents a speculative investment. The
Subscriber, if not a natural person, has the necessary authority to and is duly and legally qualified to purchase
and own the Securities. If the Subscriber is natural person, he or she has reached the age of majority in the
state in which the Subscriber resides, has adequate means of providing for the Subscriber’s current needs and
personal contingencies and is able to bear the risk of such investment for an indefinite period and to afford a
complete loss thereof. The information set forth on the signature page hereto and in such Subscriber’s
Questionnaire regarding the Subscriber is accurate. The sale of the Securities to the Subscriber as contemplated
in this Agreement complies with or is exempt from the applicable securities legislation of the jurisdiction of
the residence of the Subscriber.
	 	 
	 	          (c)          Investment Purpose. At Closing, the Subscriber will purchase the Notes for its own account for investment purposes only and not as a nominee or agent and not with a view towards or for resale in connection with the distribution of the Securities.

 

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	 	          (d)          Risk of Involvement. The Subscriber recognizes that the purchase of the Notes involves a high degree of risk in that: (i) an investment in the Company is highly speculative and only investors who can afford the loss of their entire investment should consider investing in the Company and the Securities; (ii) transferability of the Securities is limited; and (iii) the Company may require substantial additional funds to operate its business and there can be no assurance that the Offering will be completed or that any other funds will be available to the Company, in addition to all of the other risks set forth in the Company’s Memorandum.
	 	 
	 	          (e)          Information. The Subscriber acknowledges careful review of: (i) this Agreement (the “Offering Documents”), and hereby represents that: (A) the Subscriber has been furnished by the Company during the course of this transaction with all information regarding the Company which it has requested; and (B) that the Subscriber has been afforded the opportunity to ask questions of and receive answers from duly authorized officers of the Company concerning the terms and conditions of the Offering.
	 	 
	 	          (f)          Compliance with Securities Act. The Subscriber understands and agrees that the Securities are “restricted securities” that have not been registered under the 1933 Act or any applicable state securities laws, by reason of their issuance in a transaction that does not require registration under the 1933 Act (based in part on the accuracy of the representations and warranties of Subscriber contained herein), and that such Securities must be held indefinitely unless a subsequent disposition is registered under the 1933 Act or any applicable state securities laws or is exempt from such registration.
	 	 
	 	          (g)          No Representations. The Subscriber hereby represents that, except as expressly set forth in the Offering Documents, no representations or warranties have been made to the Subscriber by the Company or any agent, employee or affiliate of the Company, and in entering into this transaction the Subscriber is not relying on any information other than that contained in the Offering Documents and the results of independent investigation by the Subscriber. The Subscriber has conducted its own due diligence of the Company and is not relying on the Company’s diligence.
	 	 
	 	          (h)          Transfer
    or Resale. The Subscriber acknowledges that there is no public market for any of the Company’s securities. The
    Subscriber understands that Rule 144 (the “Rule”) promulgated under the 1933 Act requires, among other
    conditions, a six-month holding period prior to the resale (in limited amounts) of securities of a reporting issuer acquired
    in a non-public offering without having to satisfy the registration requirements under the 1933 Act. The Subscriber
    understands and hereby acknowledges that the Company is under no obligation to register the Common Stock under the 1933 Act.
    The Subscriber consents that the Company may, if it desires, permit the transfer of the Securities out of the
    Subscriber’s name only when the Subscriber’s request for transfer is accompanied by an opinion of counsel
    reasonably satisfactory to the Company that neither the sale nor the proposed transfer results in a violation of the 1933
    Act or any applicable state “blue sky” laws.

 

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	 	          (i)          No Hedging Transactions. The Subscriber hereby agrees not to engage in any Hedging Transaction (as defined herein) until such time as the Securities, as applicable, have been registered for resale under the 1933 Act or may otherwise be sold in the public market without an effective registration statement under the 1933 Act. “Hedging Transaction” means any short sale (whether or not against the box) or any purchase, sale or grant of any right (including, without limitation, any put or call option) with respect to any security (other than a broad-based market basket or index) that includes, relates to or derives any significant part of its value from the Company’s Common Stock or any rights, warrants, options or other securities that are convertible into, or exercisable or exchangeable for, Common Stock.
	 	 	 	 
	 	          (j)          Shares Legend. The shares of Common Stock issued hereunder shall bear the following or similar legend:
	 	 	 	 
	 	 	“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO TRUE 2 BEAUTY, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.”	 
	 	 	 	 
	 	          (k)          (Intentionally left blank)	 
	 	 	 	 
	 	          (l)          Communication of Offer. The offer to sell the Securities was directly communicated to the Subscriber by the
Company or any selling group member. At no time was the Subscriber presented with or solicited by any leaflet,
newspaper or magazine article, radio or television advertisement, or any other form of general advertising, or
solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such
communicated offer and did not learn of the Offering or the Company by way of a registration statement on file
with the SEC. The Subscriber acknowledges that it has a pre-existing personal or business relationship with
either the Company, or any of their officers, directors or controlling persons, of a nature and duration such as
would enable a reasonable prudent investor to be aware of the character, business acumen, and general business
and financial circumstances of the Company and an investment in the Notes.

	 	 	 	 
	 	          (m)          Organization; Authority. If Subscriber is not a natural person, Subscriber is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Offering and otherwise to carry out its obligations thereunder.
	 	 	 	 
	 	          (n)          Authority; Enforceability. This Agreement and other agreements delivered together with this Agreement or in connection herewith have been duly authorized, executed and delivered by the Subscriber and are valid and binding agreements enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights generally and to general principles of equity; and Subscriber, if not a natural person, has full power and authority necessary to enter into this Agreement and such other agreements and to perform its obligations hereunder and under all other agreements entered into by the Subscriber relating hereto.

 

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	 	          (o)          Correctness of Representations. Each Subscriber represents that the foregoing representations and warranties are true and correct as of the date hereof and, unless a Subscriber otherwise notifies the Company prior to the Closing, shall remain true and correct as of Closing. The foregoing representations and warranties shall survive the Closing Date for a period of three years.
	 	 
	 	          (p)          No Tax or Legal Advice. Such Subscriber understands that nothing in this Agreement, any other agreement or any other materials presented to such Subscriber in connection with the purchase and sale of the Notes constitutes legal, tax or investment advice and such information may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. Such Subscriber has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of Notes.
	 	 
	 	          Circular 230 Disclosure. Pursuant to U.S. Treasury Department Regulations, we are required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.
	 	 
	 	          (q)          Questionnaire. The Subscriber has completed the accompanying Questionnaire and has delivered it herewith and represents and warrants that it is accurate and true in all respects and that it accurately and completely sets forth the financial condition of the Subscriber on the date hereof. The Subscriber has no reason to expect there will be any material adverse change in its financial condition and will advise the Company of any such changes occurring prior to the closing or termination of the Offering.
	 	 
	 	          (r)          Company Discretion. The Subscriber understands that the Company shall have the right to accept or reject this subscription in whole or in part. Unless this subscription is accepted in whole or in part by the Company prior to three (3) months from the date of this Agreement, unless extended, the expiration of the Offering Period, this subscription shall be deemed rejected in whole. The Subscriber acknowledges that any delivery to it of this Agreement relating to the Notes prior to the determination by the Company of its suitability as a Subscriber shall not constitute an offer of the Notes until such determination of suitability shall be made, and the Subscriber hereby agrees that it shall promptly return the Offering Documents to the Company upon request.

 

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	 	          (s)          Binding Subscription. The Subscriber hereby acknowledges and agrees, subject to any applicable state securities laws that the subscription and application hereunder are irrevocable, that the Subscriber is not entitled to cancel, terminate or revoke this Subscription Agreement and that this Subscription Agreement shall survive the death or disability of the Subscriber and shall be binding upon and inure to the benefit of the Subscriber and his heirs, executors, administrators, successors, legal representatives, and assigns. If the Subscriber is more than one person, the obligations of the Subscriber hereunder shall be joint and several, and the agreements, representations, warranties, and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and his heirs, executors, administrators, successors, legal

representatives, and assigns.
	 	 
	 	          (t)          FINRA Member. The Subscriber acknowledges that if it is an “associated person” or Registered Representative of a Financial Industry Regulatory Authority, Inc. (“FINRA”) member firm, the Subscriber has given such firm notice required by the FINRA’s Rules of Fair Practice, receipt of which must be acknowledged by such firm on the signature page hereof.
	 	 
	 	          (u)          No Shorting. The Subscriber warrants that neither the Subscriber or any agent of the Subscriber will directly or indirectly engage in short transactions.
	 	 
	 	          (v)          Anti-Money Laundering Regulations. The Subscriber hereby acknowledges that the Company’s intent is to comply with all applicable federal, state and local laws designed to combat money laundering and similar illegal activities, including the provisions of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“PATRIOT Act”). In furtherance of such efforts, Subscriber hereby represents, covenants, and agrees that, to the best of Subscriber’s knowledge, based on reasonable investigation:

 

	 	 	              (a)          None of Subscriber’s investment in the Company shall be derived from money laundering or similar activities deemed illegal under federal laws and regulations.
	 	 	 
	 	 	              (b)          To the extent within Subscriber’s control, none of Subscriber’s investment in the Company will cause the Company or any of its personnel to be in violation of federal anti-money laundering laws, including without limitation the Bank Secrecy Act (31 U.S.C. 5311 et seq.), the United States Money Laundering Control Act of 1986 or the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, and any regulations promulgated thereunder.
	 	 	 
	 	 	              (c)          When requested by the Company the Subscriber will provide any and all additional information deemed reasonably necessary to ensure compliance with all applicable laws and regulations concerning money laundering and similar activities.

 

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	 	 	          (d)          Except as otherwise disclosed in writing to the Company, the Subscriber represents and warrants neither it, nor any person or entity controlled by, controlling or under common control with Subscriber, any of Subscriber’s beneficial owners, any person for whom the Subscriber is acting as agent or nominee in connection with this investment, nor in the case of any Subscriber which is an entity, any Related Person1 is:

 

	 	          i.            a Prohibited Subscriber2;
	 	 
	 	          ii.           a Senior Foreign Political Figure3, any member of a Senior Foreign Political Figure’s “immediate family,” which includes the figure’s parents, siblings, spouse, children and in-laws, or any Close Associate4 of a Senior Foreign Political Figure, or a person or entity resident in, or organized or chartered under, the laws of a Non-Cooperative Jurisdiction5;
	 	 
	 	          iii.           a person or entity resident in, or organized or chartered under, the laws of a jurisdiction that has been designated by the U.S. Secretary of the Treasury under Section 311 or 312 of the PATRIOT Act as warranting special measures due to money laundering concerns; or
	 	 
	 	          iv.           a person or entity who gives Subscriber reason to believe that its funds originate from, or will be or have been
routed through, an account maintained at a Foreign Shell Bank, 6 an “offshore bank,” or a bank organized or
chartered under the laws of a Non-Cooperative Jurisdiction. (e) If the Subscriber is purchasing the Notes as
agent, representative, intermediary/nominee or in any particular capacity for any other person, or is otherwise
requested to do so by the Company, it shall provide a copy of its anti-money laundering policies (“AML Policies”)
to the Company. The Subscriber represents that it is in compliance with its AML Policies, its AML Policies have
been approved by counsel or internal compliance personnel reasonably informed of anti- money laundering policies
and their implementation and has not receive d a deficiency letter, negative report or any similar determination
regarding its AML Policies from independent accountants, internal auditors or some other person responsible for
reviewing compliance with its AML Policies.

	 

1 With respect to any entity, any interest
holder, director, senior officer, trustee, beneficiary or grantor of such entity; provided that in the case of an entity that is
a publicly traded company or a tax qualified pension or retirement plan in which at least 100 employees participate that is maintained
by an employer that is organized in the U.S. or is a U.S. government entity (a “Qualified Plan”), the
term “Related Person” shall exclude any interest holder holding less than 5% of any class of securities of such publicly
traded company and beneficiaries of such Qualified Plan.

 

2 For purposes of this subparagraph (d),
“Prohibited Subscriber” shall mean a person or entity whose name appears on (i) the List of Specially
Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control; (ii) other lists of prohibited
persons and entities as may be mandated by applicable law or regulation; or (iii) such other lists of prohibited persons and entities
as may be provided to the Company in connection therewith.

 

3 For purposes of this subparagraph (d),
“Senior Foreign Political Figure” shall mean a senior official in the executive, legislative, administrative,
military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political
party, or a senior executive of a foreign government-owned corporation. In addition, a Senior Foreign Political Figure includes
any corporation, business or other entity that has been formed by, or for the benefit of, a Senior Foreign Political Figure.

 

4 For purposes of this subparagraph (d),
“Close Associate of a Senior Foreign Political Figure” shall mean a person who is widely and publicly
known internationally to maintain an unusually close relationship with the Senior Foreign Political Figure, and includes a person
who is in a position to conduct substantial domestic and international financial transactions on behalf of the Senior Foreign Political
Figure.

 

5 For purposes of this subparagraph (d),
“Non-Cooperative Jurisdiction” shall mean any foreign country that has been designated as non-cooperative
with international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial
Task Force on Money Laundering, of which the U.S. is a member and with which designation the U.S. representative to the group or
organization continues to concur.

 

6 For purposes of this subparagraph (d),
“Foreign Shell Bank” shall mean a Foreign Bank without a Physical Presence in any country, but does not
include a Regulated Affiliate.

 

          A
“Foreign Bank” shall mean an organization that (i) is organized under the laws of a foreign country,
(ii) engages in the business of banking, (iii) is recognized as a bank by the bank supervisory or monetary authority of the country
of its organization or principal banking operations, (iv) receives deposits to a substantial extent in the regular course of its
business, and (v) has the power to accept demand deposits, but does not include the U.S. branches or agencies of a foreign bank.

 

          “Physical
Presence” shall mean a place of business that is maintained by a Foreign Bank and is located at a fixed address,
other than solely a post office box or an electronic address, in a country in which the Foreign Bank is authorized to conduct banking
activities, at which location the Foreign Bank (i) employs one or more individuals on a full-time basis, (ii) maintains operating
records related to its banking activities, and (Hi) is subject to inspection by the banking authority that licensed the Foreign
Bank to conduct banking activities.

 

          “Regulated
Affiliate” shall mean a Foreign Shell Bank that (i) is an affiliate of a depository institution, credit union or
Foreign Bank that maintains a Physical Presence in the U.S. or a foreign country regulating such affiliated depository institution,
credit union or Foreign Bank.

 

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	 	          (f)          The Subscriber hereby agrees to immediately notify the Company if it knows, or has reason to suspect that any of the representations in this paragraph 5(u) become incorrect or if there is any change in the information affecting these representations and covenants.
	 	 
	 	          (g)          The Subscriber agrees that, if at any time it is discovered that any of the foregoing anti-money laundering representations are incorrect, or if otherwise required by applicable laws or regulations related to money laundering and similar activities, the Company may undertake appropriate actions, and the Subscriber agrees to cooperate with such actions, to ensure compliance with such laws or regulations, including, but not limited to segregation and/or redemption of the Subscriber’s Investment in the Company.
	 	 
	          6.       Company Representations and Warranties.   The Company represents and warrants to each Subscriber that:
	 	 
	 	          (a)          Due Incorporation.   The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada and has the requisite corporate power to own its properties and to carry on its business as currently being conducted. The Company, as of the date hereof, has no subsidiaries. The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted or property owned by it makes such qualification necessary, unless the failure to be so qualified or in good standing, as the case may be, would not have or would not reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of this Agreement or any other document in connection with the Offering, (ii) a material adverse effect on the results of operations, assets, business or financial condition of the Company, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), constituting a “Material Adverse Effect”).

 

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	 	          (b)          Capitalization; Ownership of Shares.  The authorized capital stock of the Parent Company consists of 190,000,000 shares of Common Stock and 10,000,000 shares of preferred stock.  As of September 30, 2014, there were 36,951,165 shares of Common Stock issued and outstanding, all of which are duly authorized, validly issued, fully paid and nonassessable and were not issued in violation of any preemptive rights; and (ii) no shares of the Preferred Stock are issued and outstanding and (iii) 1,048,315 warrants exercisable  at  $0.40  per  share  are  issued  which  expire  at  various  times  between September 2017 and May 2019 and (iv) the allowance of up to 3,000,000 shares of Common Stock to be issued in exchange for services.  In the event the Parent Company files a  registration  statement  for  the  Company,  the  authorized  capital  stock  of  the Company will consist of 250,000,000 shares of Common Stock and 10,000,000 shares of Preferred stock.  The Parent Company will cause to have issued one share of Common Stock  of  the  Company  for  each  share  of  common  stock  outstanding  in  the  Parent Company as of the date above.  As a result, prior to the completion of this offering there will be a total of 36,900,000 shares of the Company’s Common Stock issued or reserved to be issued as part of the Company’s capitalization and the allowance of up to 3,000,000 shares of Common Stock to be issued in exchange for services.   . Except for the transactions contemplated hereby and as described in the Memorandum, there are no outstanding options, warrants (other than as described), c convertible securities
or other rights, agreements, arrangements or commitments relating to the Common Stock or obligating the Company or the Parent Company to issue or sell any shares of Common Stock, or any other interest in, the Company. All outstanding shares of capital stock of the Company were issued, sold and delivered in material compliance with all applicable Federal and state securities laws and the similar laws of other foreign jurisdictions as may be applicable.    No  person  has  any  right  of  first  refusal,  preemptive  right,  right  of participation, or any similar right to participate in the transactions contemplated by this Offering or otherwise. The issue and sale of the Notes will not obligate the Company to issue shares of Common Stock or other securities to any person (other than the Subscribers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such
 securities.
	 	 
	 	          (c)          Authority; Enforceability. This Agreement and the Securities have been duly authorized, executed and delivered by the Company and are valid
and binding agreements enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors’ rights generally and to general principles of equity, and the Company has full corporate power and
authority necessary to enter into this Agreement, and such other agreements and to perform its obligations
hereunder and under all other agreements entered into by the Company relating hereto. All corporate action on the
part of the Company by its officers, directors and stockholders necessary for the authorization, execution and
delivery of, and the performance by the Company of its obligations under this Agreement and the other agreements
entered into as contemplated by this Agreement has been taken.

	 	 
	 	          (d)          Consents.   No consent, approval, authorization or order of any court, governmental agency or body or arbitrator having jurisdiction over the Company, or over any of its affiliates, FINRA, Nasdaq, the OTC Bulletin Board, OTC Markets Group nor the Company’s stockholders is required for execution of this Agreement and all other agreements entered into by the Company relating thereto, including, without limitation, the issuance and sale of the Securities, and the performance of the Company’s obligations hereunder and under all such other agreements.

 

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	 	          (e)        No Violation or Conflict.  Assuming the representations and warranties of the Subscribers in Section 5 are true and correct, neither the execution and delivery of this Agreement nor the issuance and sale of the Securities nor the performance of the Company’s obligations under this Agreement and all other agreements entered into by the Company relating thereto by the Company will:
	 	 	 
	 	 	            (i)          violate, conflict with, result in a material breach of, or constitute a default (or an event which with the giving of notice or the lapse of time or both would be reasonably likely to constitute a default) or give to others any rights of termination, amendment, acceleration or cancellation under (A) the articles of incorporation or bylaws of the Company, (B) any decree, judgment, order, law, treaty, rule, regulation or determination applicable to the Company of any court, governmental agency or body, or arbitrator having jurisdiction over the Company or any of its affiliates (including federal and state securities laws and regulations) or over the properties or assets of the Company or any of its affiliates, (C) the terms of any bond, debenture, note or any other evidence of indebtedness, or any agreement, stock option or other similar plan, indenture, lease, mortgage, deed of trust or other instrument to which the Company or any of its affiliates is a party, by which the Company or any of its affiliates is bound or affected, or to which any of the properties or assets of the Company or any of its affiliates is subject, or (D) the terms of any “lock-up” or similar provision of any underwriting or similar agreement to which the Company, or any of its affiliates is a party except the violation, conflict, breach, or default of which would not have a Material Adverse Effect on the Company; or
	 	 	 
	 	 	            (ii)          result  in  the  creation  or  imposition  of  any  lien,  charge  or encumbrance upon the securities or any of the assets of the Company or any of its affiliates.
	 	 	 
	 	 	(f)        The Securities. The Securities upon issuance:
	 	 	 
	 	 	            (i)          are, or will be, free and clear of any security interests, liens, claims or other encumbrances, subject to restrictions upon transfer under the 1933 Act and any applicable state securities laws;
	 	 	 
	 	 	            (ii)          have been, or will be, duly and validly authorized and on the date of issuance will be duly and validly issued, fully paid and nonassessable (and if eventually registered pursuant to the 1933 Act, and resold pursuant to an effective registration statement will be free trading and unrestricted, provided that each Subscriber complies with the prospectus delivery requirements of the 1933 Act and any state securities laws);
	 	 	 
	 	 	            (iii)          will not have been issued or sold in violation of any preemptive or other similar rights of the holders of any securities of the Company; and
	 	 	 
	 	 	            (iv)          will not subject the holders thereof to personal liability by reason of being such holders.

 

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	 	          (g)          Litigation.  There is no pending or, to the knowledge of the Company, threatened action, suit, proceeding inquiry, notice of violation, or investigation before any court, governmental or administrative agency or regulatory body (federal, state, county, local or  foreign),  or  arbitrator having jurisdiction over  the  Company, or  any  of  its affiliates that would challenge the legality, validity or enforceability of this Agreement and/or  the  Offering,  or  otherwise  affect  the  execution  by  the  Company  or  the performance by the Company of its obligations under this Agreement, and all other agreements entered into by the Company relating hereto.  Except as disclosed in the Offering  Documents,  there  is  no  pending  or,  to  the  knowledge  of  the  Company, threatened  action,  suit,  proceeding  or  investigation  before  any  court,  governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its affiliates which litigation if adversely determined would have a Material Adverse Effect on the Company.
	 	 
	 	          (h)          Defaults; Permits.  The Company is not in violation of its Articles of Incorporation or By-Laws.  The Company is (i) not in default under or in violation of any other material agreement or instrument to which it is a party or by which it or any of its properties are bound or affected, which default or violation would have a Material Adverse Effect on the Company, (ii) not in default with respect to any order of any court, arbitrator or governmental body or subject to or party to any order of any court or governmental authority arising out of any action, suit or proceeding under any statute or other law respecting antitrust, monopoly, restraint of trade, unfair competition or similar matters, or (iii) to its knowledge in violation of any statute, rule or regulation of any governmental authority which violation would have a Material Adverse Effect on the Company. The Company possesses all material certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses other than where the failure to possess such certificates, authorizations or permits, individually or in the aggregate, has not had and would not reasonably be expected to have a Material Adverse Effect. The Company has not received any notice or otherwise become aware of any proceedings, inquiries or investigations relating to the revocation or modification of any such certificate, authorization or permit.
	 	 
	 	          (i)          No General Solicitation.  Neither the Company, nor any of its affiliates, nor to the Company’s knowledge, any person acting on its or their behalf, has, directly or indirectly made any offers or sales of any security or solicited any offers to buy any security that would cause the offer of the Securities pursuant to this Agreement to be integrated with prior offerings by the Company for purposes of the 1933 Act or any applicable stockholder approval provisions. Neither the Company nor any of its affiliates will take any action or steps that would cause the offer of the Securities to be integrated with other offerings if such integration would eliminate the Offering Exemption. Neither the Company nor any of its affiliates, nor to the Company’s knowledge, any person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Notes.
	 	 
	 	          (j)          Disclosure.  None of the representations and warranties of the Company appearing in this Agreement nor any information appearing in any of the Offering Documents, when  considered together as  a  whole, contains, or  on  the  Closing  will contain any untrue statement of a material fact or omits, or on the Closing will omit, to state any material fact required to be stated herein or therein in order for the statements herein or therein, in light of the circumstances under which they were made, not to be misleading.

 

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	 	          (k)          No Undisclosed Liabilities or Events.  The Company has no liabilities or obligations which are material, individually or in the aggregate, which are not disclosed in the Offering Documents, other than those incurred in the ordinary course of the Company’s businesses since January 31, 2012. There has been no event or circumstance that has occurred or exists with respect to the Company or its businesses, properties, operations or financial condition, that, under applicable law, rule or regulation, requires disclosure but which has not been so publicly announced or disclosed in the Offering Documents.
	 	 
	 	          (l)           Intellectual Property.   The Company owns, free and clear of claims or rights of any other person, with full right to use, sell, license, sublicense, dispose of, and bring actions for infringement of, or has acquired licenses or other rights to use, all intellectual property necessary for the conduct of its business as presently conducted (other than with respect to “off-the-shelf” software which is generally commercially available and open source software which may be subject to one or more “general public” licenses).   The business of the Company as presently conducted does not, to the Company’s knowledge, infringe or conflict with any patent, trademark, copyright, or trade secret rights of any third parties or any other intellectual property of any third parties. The Company has not received written notice from any third party asserting that any intellectual property owned or licensed by the Company, or which the Company otherwise has the right to use, is invalid or unenforceable by the Company and, to the Company’s knowledge, there is no valid basis for any such claim (whether or not pending or threatened).  No claim is pending or, to the Company’s knowledge, threatened against the Company nor has the Company received any written notice or other written claim from any person asserting that any of the Company’s present or contemplated activities infringe or may infringe in any material respect any intellectual property of such person, and the Company is not aware of any infringement by any other Person of any material rights of the Company under any intellectual property rights. The Company has taken all steps required in accordance with commercially reasonable business practice to establish and preserve its respective ownership in its intellectual property
and to keep confidential all material technical information developed by or belonging to the Company which has not been patented or copyrighted.
	 	 
	 	          (m)         Investment Company Status.  The Company is not, and immediately after receipt  of  the  Final  Closing  will  not  be,  an  “investment  company”  or  an  entity “controlled”  by  an  “investment  company”  within  the  meaning  of  the  Investment Company Act of 1940, as amended (the “Investment Company Act”), and the Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act.
	 	 
	 	          (n)          Taxes.   The Company (i) has prepared in good faith and duly and timely filed all tax returns required to be filed by it or is on a current extension and such returns are complete and accurate in all material respects and (ii) has paid all taxes required to have been paid by it, except for taxes which it reasonably disputes in good faith or the failure of which to pay has not had or would not reasonably be expected to have a Material Adverse Effect. The Company has no any liability with respect to accrued taxes in excess of the amounts that are described as accrued in the most recent financial statements included in the Offering Documents.

 

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	 	          (o)          Solvency.  The Company has no knowledge of any facts or circumstances which lead it to believe that it will be required to file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction and has no present intention to so file.
	 	 
	 	          (p)          Transactions   with   Interested   Persons.   Except   as   described   in   the Prospectus,  no officer, director, employee or affiliate of the Company is or has taken any steps to become a party to any transaction with the Company (other than for services as employees,   officers   and   directors),   including   any   contract,   agreement   or   other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.
	 	 
	 	          (q)          No  Other  Agreements.   The Company has  not,  directly or  indirectly, entered into any agreement with or granted any right to any Subscriber relating to the terms or conditions of the transactions contemplated by this Agreement or the other Offering Documents except as expressly set forth therein.
	 	 
	 	          (r)          Correctness  of  Representations.     The  Company  represents  that  the foregoing representations and warranties are true and correct as of the date hereof in all material respects.  The foregoing representations and warranties shall survive until one year after the Closing Date.
	 	 
	          7.        Regulation D Offering.  This Offering is being made pursuant to the exemption from the registration provisions of the 1933 Act afforded by Section 4(a)(2) of the 1933 Act and/or Rule 506 of Regulation D promulgated thereunder.
	 
	8.        Reissuance of Securities/Registration of Securities.  The Company agrees to reissue certificates representing the Conversion Shares without the legends set forth in Sections 5(j) and 5(k) above, (a) at such time as the holder there of is permitted to dispose of the Securities without volume or manner of sale restrictions pursuant to Rule 144 under the 1933 Act in the opinion of counsel reasonably satisfactory to the Company, or (b) upon resale subject to an effective registration statement after the resale of the shares of Common Stock underlying the Notes is registered under the 1933 Act.  In connection with (b) immediately above, the Company agrees to register the Conversion Shares on a Form S - 1 Registration Statement on behalf of the Subscriber . The Company shall include all shares of Common Stock underlying the full conversion of the Notes, including potential shares to be issued in payment of interest, (the “Conversion Shares”) in any registration statement filed by the Company (other than on form S-4 or S-8). In the event a registration statement is not filed by the Company within 60 days following the completion of the Offering, or the full amount of Conversion Shares are not included in the first registration statement filed by the Company, or if such registration statement including the Conversion Shares is not declared effective within 180 days following the completion of the Offering, the Notes shall then be convertible at the option of the Holder into shares of the common stock, par value $.001 per share, of the Parent Company at the lesser of $0.02 or a conversion price equal to  a 25% discount  to  the  average closing bid price of  the  Parent Company’s stock for the five days immediately prior to the day upon which the Parent Company receives a written conversion notice from the Holder for
any portion of the Notes. The Penalty Conversion shall remain in effect until such time as a registration statement from the Company including the Conversion Shares is declared effective by the SEC.
	 

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	          9.        FINRA Member Firm Compensation.  The Company on the one hand, and each Subscriber on the other hand, agree to indemnify the other against and hold the other harmless from any and all liabilities to any persons claiming brokerage commissions in connection with the Offering.
	 
	          10.      Covenants of the Company. At all times the Notes remain outstanding, the Company covenants and agrees with the Subscribers as follows:
	 	 
	 	          (a)          Reservation of Common Stock.  The Company undertakes to reserve from its authorized but unissued common stock, at all times Notes remain outstanding, a number of Underlying Shares upon conversion of the Notes.
	 	 
	 	          (b)          Confidentiality.  The Company agrees that it will not disclose publicly or privately the identity of any Subscriber unless expressly agreed to in writing by that Subscriber or only to the extent required by law.
	 	 
	 	          (c)          Reporting Requirements.  The Parent Company and the Company agree that a registration statement will be filed registering the Common Stock either through the Parent Company or  the Company and upon  the completion of  that filing being declared effective by the SEC, the registered entity will  use its best efforts to comply in all respects with its reporting and filing obligations under the federal securities laws dictate and to continue complying with the Company’s SEC reporting requirements. and use its best efforts not to take any action or file any document (whether or not permitted by the 1933 Act or the 1934 Act or the rules thereunder) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under said acts. Until the earlier of the resale of the Securities. the Company and/or the Parent Company will use reasonable efforts to continue the listing or quotation, if any, of the Common Stock on the Principal Market and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Principal Market.
	 	 
	 	          (d)          Stop Orders.  The Company will advise the Subscribers, promptly after it receives notice of issuance by the SEC, any state securities commission or any other regulatory authority of any stop order or of any order preventing or suspending any offering of any securities of the Company, or of the suspension of the qualification of the Common Stock of the Company for offering or sale in any jurisdiction, or the initiation of any proceeding for any such purpose.

 

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	 	          (e)          Use of Proceeds.  The proceeds received by the Company in the Offering will be used by the Company for marketing and advertising, inventory and packaging materials, potential acquisitions and the balance for general corporate purposes, including working capital. See “Use of Proceeds” in the Memorandum.
	 	 
	 	          (f)          Taxes.   The Company will promptly pay and discharge, or cause to be paid and discharged, when due and payable, all material lawful taxes, assessments and governmental charges or levies imposed upon the income, profits, property or business of the Company; provided, however, that any such tax, assessment, charge or levy need not be paid if the validity thereof shall currently be contested in good faith by appropriate proceedings and if the Company shall have set aside on its books adequate reserves with respect thereto; and provided, further, that the Company will pay all such material taxes, assessments, charges or levies forthwith upon the commencement of proceedings to foreclose any lien which may have attached as security therefor.
	 	 
	 	          (g)          Insurance.  The Company is or will be insured by insurers of recognized financial responsibility against such material losses and risks and in such amounts as are prudent  and  customary  in  the  businesses  in  which  the  Company  is  engaged. The Company has no current reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business.  The Company will keep its assets which are of an insurable character insured by financially sound and reputable insurers against loss or damage by fire, explosion and other risks customarily insured against by companies in the Company’s line of business, in amounts sufficient to prevent the Company from becoming a co-insurer and not in any event less than 100% of the insurable value of the property insured; and the Company will maintain, with financially sound and reputable insurers, insurance against other hazards and risks and liability to persons and property to the extent and in the manner customary for companies in similar businesses similarly situated and to the extent available on commercially reasonable terms.
	 	 
	 	          (h)          Books and Records.  The Company will keep true records and books of account in which full, true and correct entries will be made of all dealings or transactions in relation to its business and affairs in accordance with generally accepted accounting principles applied on a consistent basis.
	 	 
	 	          (i)          Governmental Authorities.  The Company shall duly observe and conform in all material respects to all valid requirements of governmental authorities relating to the conduct of its business or to its properties or assets.

 

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	 	          (j)          Properties.  The Company will keep its properties in good repair, working order and condition, reasonable wear and tear excepted, and from time to time make all needful and proper repairs, renewals, replacements, additions and improvements thereto; and the Company will at all times comply with each provision of all leases to which it is a party or under which it occupies property if the breach of such material provision could reasonably be expected to have a Material Adverse Effect.
	 	 
	 	11.      Covenants of the Company and Subscriber Regarding Indemnification.
	 	 
	 	          (a)          The Company agrees to indemnify, hold harmless, reimburse and defend the Subscribers, the Subscribers’ officers, directors, agents, affiliates, control persons, and principal shareholders, against any claim, cost, expense, liability, obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the Subscriber or any such person which results, arises out of or is based upon (i) any material misrepresentation by Company or breach of any warranty by Company in this Agreement or in any Exhibits or Schedules attached hereto, or other agreement delivered pursuant hereto; or (ii) after any applicable notice and/or cure periods, any breach or default in performance by the Company of any covenant or undertaking to be performed by the Company hereunder, or any other agreement entered into by the Company and Subscriber relating hereto.
	 	 
	 	          (b)          Each Subscriber agrees to indemnify, hold harmless, reimburse and defend the Company and each of the Company’s officers, directors, agents, affiliates, control persons, and principal shareholders against any claim, cost, expense, liability, obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the Company or any such person which results, arises out of or is based upon (i) any material misrepresentation by such Subscriber in this Agreement or in any Exhibits or Schedules attached hereto, or other agreement delivered pursuant hereto; or (ii) after any applicable notice and/or cure periods, any breach or default in performance by such Subscriber  of  any  covenant  or  undertaking  to  be  performed  by  such  Subscriber hereunder, or any other
agreement entered into by the Company and Subscribers relating hereto.

 

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	 	12.      Miscellaneous.
	 	 
	 	          (a)          Notices.   All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be either (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, electronic mail, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery  or  delivery  by  facsimile,  with  accurate  confirmation  generated  by
  the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received), (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed  to  such  address,  or  upon  actual  receipt  of  such  mailing,  or  (c)  upon acknowledgment of by the recipient of receipt by electronic mail, whichever shall first occur. The addresses for such communications shall be:
	 	 	 	 
	 	 	    (i) if to the Company, to:	True 2 Bid, Inc.

301 Yamato Road, Suite 1240

Boca Raton, Florida 33431

Attention: William Bollander

Fax: 800-630-4190
	 	 	 	 
	 	 	    With a copy to:	Davidoff Hutcher & Citron LLP

605 Third Avenue, 34th Floor

New York, N.Y.  10158

Attention: Elliot H. Lutzker, Esq.
Email: ehl@dhclegal.com

Fax: (212) 286-1884
	 	 	 	 
	 	 	    (ii) if to the Subscribers,	to the address and facsimile number indicated on the signature pages hereto
	 	 	 	 
	 	          (b)          Entire Agreement.  This Agreement and other documents delivered in connection herewith  represent the  entire  agreement between  the  parties  hereto  with respect to the subject matter hereof and may be amended only by a writing executed by all parties.  Neither the Company nor the Subscribers have relied on any representations not contained or referred to in this Agreement and the documents delivered herewith, except as contained in the Reports.
	 	 
	 	          (c)          Assignment.  No right or obligation of any party may be assigned by that party without the prior written consent of all other parties.  This Agreement will be binding on the successors and assigns of all parties hereto.
	 	 
	 	          (d)          Counterparts.     This  Agreement  may  be  executed  by  facsimile transmission, and in counterparts, all of which together will be deemed one original.
	 	 
	 	          (e)          Law Governing this Agreement.   This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws.  All actions arising out of or relating to this Agreement shall be heard and determined exclusively in any New York federal court sitting in the Borough of Manhattan of The City of New York; provided, however, that if such federal court does not have jurisdiction over such action, such action shall be heard and determined exclusively in any New York state court sitting in the Borough of Manhattan of The City of New York.   Consistent with the preceding sentence, the parties hereto hereby (a) submit to the exclusive jurisdiction of any federal or state court sitting in the Borough of Manhattan of The City
of New York for the purpose of any action arising out of or relating to this Agreement brought by any party hereto and (b) irrevocably waive, and agree not to assert by way of motion, defense, or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the action is brought in an inconvenient forum, that the venue of the action is improper, or that this Agreement or the transactions contemplated by this Agreement may not be enforced in or by any of the above-named courts.

 

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	 	          (f)          Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  EACH OF THE PARTIES HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12(F).
	 	 
	 	          (g)          Severability.   In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.   Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
	 	 
	 	          (g)          Headings.    All  headings  contained  herein  are  inserted  only  for convenience and ease of reference and are not to be considered in the construction or interpretation of any provision of this Agreement.
	 	 
	 	[Signature page to follow]

 

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SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

          In
Witness Whereof, the parties have entered into this Agreement as of the date below.

	 	 
	Dated: ____________, 2014	TRUE 2 BID, INC.
	 	a Nevada corporation

 

	 	By:	 
	 	 	William Bollander - Chief Executive Officer

 

	Name of Subscriber:  	 

 

	Name of Authorized Signatory (if different from Subscriber):  	 

 

	Title of Authorized Signatory:  	 

 

	Signature of Authorized Signatory or Subscriber:  	 

 

	EIN or Social Security Number:  	 

 

	Email Address of Subscriber:  	 

 

	Facsimile Number of Subscriber:  	 

 

Address for Notice to Subscriber:

 

Address for Delivery of Securities for Subscriber (if not same as
address for notice):

 

	Subscription Amount:  	 	 

 

    	20True2Beauty, Inc. S-1/A

Exhibit 4.3

 

 

 REGISTRATION RIGHTS

AGREEMENT TRUE2BID, INC.

 

	          This Registration Rights Agreement (this “Agreement”) is made and entered into as of October __, 2014 by and among True 2 Beauty, Inc., a Nevada corporation and its subsidiary True 2 Bid, Inc., a Nevada corporation(collectively the “Company”), and the purchasers listed on Schedule I hereto (the “Purchasers”).
	 
	          This Agreement is being entered into pursuant to the Securities Purchase Agreement  dated  as  of  the  date  hereof  among  the  Company  and  the  Purchasers  (the  “Purchase Agreement”).
	 
	          The Company and the Purchasers hereby agree as follows:

 

	1.	Definitions.

	 	Capitalized terms used and not otherwise defined herein shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:
	 	 
	 	“Advice” shall have meaning set forth in Section 3(m).
	 	 
	 	“Affiliate” means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls, is controlled by, or is under common control with, such Person. For the avoidance of doubt, with respect to a Purchaser which is a general or limited partnership, an Affiliate shall be deemed to include affiliated partnerships managed by the same  management  company  or  managing  general  partner  or  by  an  entity  which  controls,  is controlled by, or is under common control with, such management company or managing general partner.
	 	 
	 	“Board” shall have meaning set forth in Section 3(n).
	 	 
	 	“Business Day” means any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the State of New York generally are authorized or required by law or other government actions to close.
	 	 
	 	“Closing Date” means the date of the closing of the purchase and sale of the Units pursuant to the Purchase Agreement.
	 	 
	 	“Commission” means the Securities and Exchange Commission.
	 	 
	 	“Common Stock” means the Company’s common stock, par value $0.001 per share.
	 	 
	 	“Control” (including the terms “controlling”, “controlled by” or “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

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	 	“Effectiveness Date” means with respect to the Registration Statement under Section 2(a), the earlier of (A) the one hundred fiftieth (150th) day following the later to occur of (i) the Final Closing Date or (ii) or in the event the Registration Statement receives a “full review” by the Commission, the Final Closing Date, or (B) the date which is within three (3) Business Days after the date on which the Commission informs the Company (i) that the Commission will not review the Registration Statement or (ii) that the Company may request the acceleration of the effectiveness of the Registration Statement; provided, however, that, if the Effectiveness Date falls on a Saturday, Sunday or any other day which shall be a legal holiday or a day on which the Commission is authorized or required by law or other government actions to close, the Effectiveness Date shall be the following Business Day.
	 	 
	 	“Effectiveness Period” shall have the meaning set forth in Section 2(a).

“Event” shall have the meaning set forth in Section 7(e).
	 	 
	 	“Event Date” shall have the meaning set forth in Section 7(e).
	 	 
	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended.
	 	 
	 	“Filing Date” means with respect to a Registration Statement under Section 2(a), the date that is the thirtieth (30th) day following the later to occur of (i) the Final Closing Date or (ii) the effective date of the Prior Registration Statement; provided, however that if the Filing Date falls on a Saturday, Sunday or any other day which shall be a legal holiday or a day on which the Commission is authorized or required by law or other government actions to close, the Filing Date shall be the following Business Day.
	 	 
	 	“Holder” or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.
	 	 
	 	“Indemnified Party” shall have the meaning set forth in Section 5(c).

“Indemnifying Party” shall have the meaning set forth in Section 5(c).

“Losses” shall have the meaning set forth in Section 5(a).
	 	 
	 	“Offering” means the offering made pursuant to Section 4(2) of the Securities Act and Rule 506 promulgated thereunder of Convertible Promissory Notes of the Company pursuant to the Purchase Agreement and the Private Placement Memorandum.
	 	“Person” means an individual or a corporation, partnership, trust, incorporated or unincorporated  association,  joint  venture,  limited  liability  company,  joint  stock  company, government (or an agency or political subdivision thereof) or other entity of any kind.
	 	 
	 	“Proceeding” means an action, claim, suit, investigation or proceeding (including, without  limitation,  an  investigation  or  partial  proceeding,  such  as  a  deposition),  whether commenced or threatened.

 

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	 	“Prospectus” means the prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference in such Prospectus.
	 	 
	 	“Purchase Agreement” means the Securities Purchase Agreement, dated as of October _, 2014 between the Company and each of the Purchasers.
	 	 
	 	“Registrable Securities” means, collectively (i) the shares of Common Stock issuable upon conversion of the Convertible Promissory Notes (the “Note Shares”); and (ii) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing; provided, that the Holder has completed and delivered to the Company a Selling Stockholder Questionnaire; and provided, further, that the Note Shares shall cease to be Registrable Securities upon the earlier to occur of the following: (A) sale pursuant to a Registration Statement or Rule 144 under the Securities Act (in which case, only such security sold shall cease to be a Registrable Security) or (B) becoming eligible for sale by the Holder pursuant to Rule 144, without limitation.
	 	 
	 	“Registration Statement” means either (a) an appropriate pre-effective or post effective amendment to the Prior Registration Statement including therein the Registrable Securities, or (b) a registration statement and any additional registration statements contemplated by Section 2, including (in each case) the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference in such registration statement.
	 	 
	 	“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.
	 	 
	 	“Rule 158” means Rule 158 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.
	 	 
	 	“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.
	 	 
	 	“Rule 416” means Rule 416 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.
	 	 
	 	“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

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	 	“Securities Act” means the Securities Act of 1933, as amended.
	 	 
	 	“SEC Guidance” means (i) any publicly available written or oral guidance of the Commission staff, or any comments, requirements or requests of the Commission staff and (ii) the Securities Act.
	 	 
	 	“Selling Stockholder Questionnaire” means a questionnaire in the form attached as Exhibit B hereto, or such other form of questionnaire as may reasonably be adopted by the Company from time to time.
	 	 
	 	“Warrants” means the warrants to purchase shares of Common Stock issued to the Purchasers pursuant to the Purchase Agreement.
	 	 
	2.	Resale Registration.

	 	 	 
	 	a.	On or prior to the Filing Date, the Company shall prepare and file with the Commission a “resale” Registration Statement providing for the resale of all Registrable Securities by means of an offering to be made on a continuous basis pursuant to Rule 415. The  Registration  Statement  shall  be  on  Form  S-1  (or  another  appropriate  form  in accordance herewith). The Company shall (i) not permit any securities other than the Registrable Securities to be included in the Registration Statement and (ii) use its commercially reasonable efforts to cause the Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event prior to the Effectiveness Date, and to keep such Registration Statement continuously effective under the Securities Act until such date as is the earlier of (x) the date when all Registrable Securities covered by such Registration Statement have been sold or (y) the date on which the Registrable Securities may be sold without any restriction pursuant to Rule 144 as determined by the counsel to the Company pursuant to a written opinion letter, addressed to the Company’s transfer agent to such effect (the “Effectiveness Period”). The Company shall request that the effective time of the Registration Statement be 4:00 p.m. Eastern Time on the Effectiveness Date. If at any time and for any reason, an additional Registration Statement is required to be filed because at such time the actual number of Registrable Securities exceeds the number of Registrable Securities remaining under the Registration Statement and such Registrable Securities are not saleable under Rule 144, without  limitation,  the  Company  shall  have  twenty  (20)  Business  Days  to  file  such additional Registration Statement, and the Company shall use its commercially reasonable efforts to cause such additional Registration Statement to be declared effective by the Commission as soon as possible, but in no event later than sixty (60) days after such filing.

 

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	 	b.	Notwithstanding anything to the contrary set forth in this Section 2, in the event the Commission does not permit the Company to  register all of  the Registrable Securities in the Registration Statement because of the Commission’s application of Rule 415, the number of Registrable Securities to be registered on such Registration Statement will be reduced in the order of the Registrable Securities represented by the total number of Note Shares owned by the Holders, applied on a pro rata basis, The Company shall use its commercially reasonable efforts to file additional Registration Statements to register the Registrable Securities that were not registered in the initial Registration Statement and are not saleable under Rule 144 without limitation as promptly as possible but in no event later than on the Filing Date and in a manner permitted by the Commission. For purposes of this Section 2(b), “Filing Date” means with respect to each subsequent Registration Statement filed pursuant hereto, the later of (i) sixty (60) days following the sale of substantially all of the Registrable Securities included in the initial Registration Statement or any subsequent Registration Statement and (ii) six (6) months following the effective date of the initial Registration Statement or any subsequent Registration Statement, as applicable, or such earlier  date  as  permitted  by  the  Commission.  For  purposes  of  this  Section  2(b), “Effectiveness Date” means with respect to each subsequent Registration Statement filed pursuant hereto, the earlier of (A) the ninetieth (90th) day following the filing date of such Registration Statement (or in the event such Registration Statement receives a “full review” by the Commission, the one hundred twentieth (120th) day following such filing date) or (B) the date which is within three (3) Business Days after the date on which the Commission informs the Company (i) that the Commission will not review such Registration Statement or  (ii)  that  the  Company  may  request  the  acceleration  of  the  effectiveness  of  such Registration Statement; provided that, if the Effectiveness Date falls on a Saturday, Sunday or any other day which shall be a legal holiday or a day on which the Commission is authorized or required by law or other government actions to close, the Effectiveness Date shall be the following Business Day.
	 	 	 
	 	c.	Each Holder agrees to furnish to the Company a completed Selling Stockholder Questionnaire not more than ten (10) Business Days following the date of this Agreement. Each Holder further agrees that it shall not be entitled to be named as a selling security holder in the Registration Statement or use the Prospectus for offers and resales of Registrable Securities at any time, unless such Holder has returned to the Company a completed and signed Selling Stockholder Questionnaire. If a Holder of Registrable Securities returns a Selling Stockholder Questionnaire after the deadline specified in the previous sentence, the Company shall use its commercially reasonable efforts to take such actions as are required to name such Holder as a selling security holder in the Registration Statement or any pre-effective or post-effective amendment thereto and to include (to the extent not theretofore included) in the Registration Statement the Registrable Securities identified in such late Selling Stockholder Questionnaire; provided that the Company shall not be required to file an additional Registration Statement solely for such shares. Each Holder acknowledges and agrees that the information in the Selling Stockholder Questionnaire will be used by the Company in the preparation of the Registration Statement and hereby consents to the inclusion of such information in the Registration Statement.

 

	3.	Registration Procedures.
	 	 
	 	In connection with the Company’s registration obligations hereunder, the Company shall:

	 	 	 
	 	a.	Prepare and file with the Commission, on or prior to the Filing Date, a Registration Statement on Form S-1 (or another appropriate form in accordance herewith) in accordance with the plan of distribution as set forth on Exhibit A hereto and in accordance with applicable law, and cause the Registration Statement to become effective and remain effective as provided herein; provided, however, that not less than five (5) Business Days prior to the filing of the Registration Statement or any related Prospectus or any amendment or supplement thereto, the Company shall (i) furnish to the Holders copies of all such documents proposed to be filed, which documents will be subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent certified public accountants to respond to such inquiries as shall be necessary to conduct a reasonable review of such documents. The Company shall not file the Registration Statement or any such Prospectus or any amendments or supplements thereto to which the Purchasers shall reasonably object in writing within three (3) Business Days of their receipt thereof.

 

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	 	b.	Prepare and file with the Commission such amendments, including post-effective amendments, to the Registration Statement as may be necessary to keep the Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements as necessary in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the Securities Act; (iii) respond as promptly as possible, but in no event later than ten (10) Business Days, to any comments received from the Commission with respect to the Registration Statement or any amendment thereto and as promptly as possible provide the Holders true and complete copies of all correspondence from and to the Commission relating to the Registration Statement; (iv) file the final prospectus pursuant to Rule 424 of the Securities Act no later than two (2) Business Days following the date the Registration Statement is declared effective by the Commission; and (v) comply in all material respects with  the  provisions  of  the  Securities  Act  and  the  Exchange  Act  with  respect  to  the disposition of all Registrable Securities covered by the Registration Statement during the Effectiveness Period in accordance with the intended methods of disposition by the Holders thereof set forth in the Registration Statement as so amended or in such Prospectus as so supplemented.
	 	 	 
	 	c.	Notify the Holders of Registrable Securities as promptly as possible (and, in the case of (i)(A) below, not less than three (3) Business Days prior to such filing, and in the case of (iii) below, on the same day of receipt by the Company of such notice from the Commission) and (if requested by any such Person) confirm such notice in writing no later than one (1) Business Day following the day: (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to the Registration Statement is filed; (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration Statement and (C) with respect to the Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to the Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement covering any or all of the Registrable Securities or the initiation or threatening of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for  such  purpose;  and  (v)  of  the  occurrence of  any  event that  makes any statement made in the Registration Statement or Prospectus or any document incorporated or deemed to  be  incorporated therein by  reference untrue in  any  material respect or  that requires any revisions to the Registration Statement, Prospectus or other documents so that, in the case of the Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading.

 

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	 	d.	Use its commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of, as promptly as possible, (i) any order suspending the effectiveness of the Registration Statement or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction.
	 	 	 
	 	e.	If  requested by  the  Holders of  a  majority in  interest of  the  Registrable Securities, (i) promptly incorporate in a Prospectus supplement or post-effective amendment to the Registration Statement such information as the Company reasonably agrees should be included therein and (ii) make all required filings of such Prospectus supplement or such post effective amendment as soon as practicable after the Company has received notification of  the  matters  to  be  incorporated  in  such  Prospectus  supplement  or  post-effective amendment.
	 	 	 
	 	f.	If requested by any Holder, furnish to such Holder, without charge, at least one conformed copy of each Registration Statement and each amendment thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission.
	 	 	 
	 	g.	Promptly deliver to each Holder, without charge, as many copies of the Prospectus or Prospectuses  (including  each  form  of  prospectus)  and  each  amendment or  supplement thereto as such Persons may reasonably request; and subject to the provisions of Sections 3(m) and 3(n),  the Company hereby consents to  the use of  such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto.
	 	 	 
	 	h.	Prior to any resale of Registrable Securities, use its commercially reasonable efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder requests in writing, to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by a Registration Statement; provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or to take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject or subject the Company to any material tax in any such jurisdiction where it is not then so subject.

 

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	 	i.	Cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold pursuant to a Registration Statement, which certificates, to the extent permitted by the Purchase Agreement and applicable federal and state securities laws, shall be free of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any Holder may request in connection with any sale of Registrable Securities.
	 	 	 
	 	j.	Upon the occurrence of any event contemplated by Section 3(c)(vi), as promptly as possible, prepare a supplement or amendment, including a post-effective amendment, to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, neither the Registration Statement nor such Prospectus will contain an 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 the case of the Prospectus, in the light of the circumstances under which they were made) not misleading.
	 	 	 
	 	k.	Use its commercially reasonable efforts to cause all Registrable Securities relating to the Registration Statement, to continue to be quoted or listed on a securities exchange, quotation system or market, if any, on which similar securities issued by the Company are then listed or traded as and when required pursuant to the Purchase Agreement.
	 	 	 
	 	l.	Comply in all material respects with all applicable rules and regulations of the Commission and make generally available to its security holders all documents filed or required to be filed with the Commission, including, but not limited, to, earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 not later than 45 days after the end of any 12-month period (or 90 days after the end of any 12-month period if such period is a fiscal year) commencing on the first day of the first fiscal quarter of the Company after the effective date of the Registration Statement, which statement shall conform to the requirements of Rule 158.
	 	 	 
	 	m.	The  Company may  require each  selling  Holder to  furnish  to  the  Company a  certified statement as to the number of shares of Common Stock beneficially owned by such Holder and the natural persons thereof that have voting and dispositive control over the Registrable Securities. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of the Registrable Securities solely because any Holder fails to furnish such information within five (5) Business Days of the Company’s request, any liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.
	 	 	 
	 	 	                    If the Registration Statement refers to any Holder by name or otherwise as the holder of any securities of the Company, then such Holder shall have the right to require (if such reference to such Holder by name or otherwise is not required by the Securities Act or any similar federal statute then in force) the deletion of the reference to such Holder in any amendment or supplement to the Registration Statement filed or prepared subsequent to the time that such reference ceases to be required.

 

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	 	 	                    Each Holder covenants and agrees that it will not sell any Registrable Securities under the Registration Statement until the Company has electronically filed the Prospectus as then amended or supplemented as contemplated in Section 3(g) and notice from  the  Company that  the  Registration Statement and  any  post-effective amendments thereto have become effective as contemplated by Section 3(c).
	 	 
	 	 	                    Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v), 3(c)(vi) or 3(n), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until such Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement contemplated by Section 3(j), or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement.
	 	 	 
	 	n.	If (i) there is material non-public information regarding the Company which the Company’s Board of Directors (the “Board”) determines not to be in the Company’s best interest to disclose and which the Company is not otherwise required to disclose, (ii) there is a significant business opportunity (including, but not limited to, the acquisition or disposition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer or other similar transaction) available to the Company which the Board determines not to be in the Company’s best interest to disclose, or (iii) the Company is required to file a post-effective amendment to the Registration Statement to incorporate the Company’s quarterly and annual reports and audited financial statements on Forms 10-Q and 10-K, then the Company may (x) postpone or suspend filing of a registration statement for a period not to exceed forty-five (45) consecutive days or (y) postpone or suspend effectiveness of a registration statement for a period not to exceed forty-five (45) consecutive days; provided that the Company may not postpone or suspend effectiveness of a registration statement under this Section 3(n) for more than ninety (90) days in the aggregate during any three hundred  sixty  (360)  day  period;  provided,  however,  that  no  such  postponement  or suspension shall be permitted for consecutive twenty (20) day periods arising out of the same set of facts, circumstances or transactions.

 

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	4.	Registration Expenses.

 

	 	                    All fees and expenses incident to the performance of or compliance with this Agreement by the Company, except as and to the extent specified in this Section 4, shall be borne by the Company whether or not the Registration Statement is filed or becomes effective and whether or not any Registrable Securities are sold pursuant to the Registration Statement.  The fees and  expenses  referred  to  in  the  foregoing  sentence  shall  include,  without  limitation,  (i)  all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with any securities exchange or market on which Registrable Securities are required hereunder to be listed, if any, (B) with respect to filing fees required to be paid to the Financial Industry Regulatory Authority, Inc. (including, without limitation, pursuant to FINRA Rule 5110) and (C) in compliance with state securities or Blue Sky laws (including, without limitation, fees and disbursements of one counsel for the Holders up to a maximum amount of $5,000 in connection with Blue Sky qualifications of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as the Holders of a majority of Registrable Securities may designate)), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) Securities Act liability insurance, if the Company so desires such insurance, and (v) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement, including, without limitation, the Company’s independent public accountants (including the expenses of any comfort letters or costs associated with the delivery by independent public accountants of a comfort letter or comfort letters). In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange if required hereunder. The Company shall not be responsible for any discounts, commissions, transfer taxes or other similar fees incurred by the Holders in connection with the sale of the Registrable Securities.
	 	 
	5.	Indemnification.

	 	 	 
	 	a.	Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors, managers, partners, members, shareholders, agents, brokers, investment advisors and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, costs of preparation and attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to any violation of securities laws or untrue statement of a material fact contained in the Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information regarding such Holder or such other Indemnified Party furnished in writing to the Company by such Holder for use therein. The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.

 

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	 	b.	Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents and employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising out of or based upon any untrue statement of a material fact contained in the Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising out of or based upon any omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder or other Indemnifying Party to the Company specifically for inclusion in the Registration Statement or such Prospectus. Notwithstanding anything to the contrary contained herein, each Holder shall be liable under this Section 5(b) only for the lesser of (a) the actual damages incurred or (b) that amount as does not exceed the gross proceeds to such Holder as a result of the sale of his/her/its Registrable Securities pursuant to such Registration Statement.
	 	 	 
	 	c.	Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party promptly shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall be entitled to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.
	 	 	 
	 	 	          An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; or (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such parties shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such  Proceeding  effected  without  its  written  consent,  which  consent  shall  not  be unreasonably withheld or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which any Indemnified Party is a party and indemnity has been sought hereunder, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

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	 	d.	Contribution. If a claim for indemnification under Section 5(a) or 5(b) is due but unavailable to an Indemnified Party because of a failure or refusal of a governmental authority to enforce such indemnification in accordance with its terms (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Party on the one hand and the Indemnified Party on the other from the offering of the Preferred Stock and Warrants. If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault, as applicable, of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue statement of a material fact or omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable attorneys’ or other reasonable fees or expenses  incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms. In no event shall any selling Holder be required to contribute an amount under this Section 5(d) in excess of the gross proceeds received by such Holder upon sale of such Holder’s Registrable Securities pursuant to the Registration Statement giving rise to such contribution obligation.
	 	 	 
	 	 	          The parties hereto agree that it would not be just and equitable if  contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. 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 indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties pursuant to applicable law.

 

	6.	Rule 144.
	 	 
	 	          As long as any Holder owns Warrants or Registrable Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to Section 13(a) or 15(d) of  the  Exchange Act.  As  long  as  any  Holder  owns  Warrants or  Registrable Securities, if  the Company is not required to file reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and furnish to the Holders and make publicly available in accordance with Rule 144(c) promulgated under the Securities Act, annual and quarterly financial statements, together with a discussion and analysis of such financial statements in form and substance substantially similar to
those that would otherwise be required to be included in reports required by Section 13(a) or 15(d) of the Exchange Act, as well as any other information required thereby, in the time period that such filings would have been required to have been made under the Exchange Act. The Company further covenants that it will take such further action as any Holder may reasonably request, all to the extent reasonably required from time to time to enable such Person to sell Note Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the Securities Act at the request of any Holder, the Company shall deliver to such Holder a written  certification  of  a  duly  authorized  officer  as  to  whether  it  has  complied  with  such requirements.

 

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	7.	Miscellaneous.
	 	 	 	 
	 	 	a.	Remedies. In the event of a breach by the Company or by a Holder of any of their obligations under this Agreement, such Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. Each of the Company and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.
	 	 	 	 
	 	 	b.	No Inconsistent Agreements. The Company has not entered into, and shall not enter into on or after the date of this Agreement, any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise e conflicts with the provisions hereof. The Company has not previously entered into any agreement that is currently in effect granting any registration rights with respect to any of its securities to any Person. Without limiting the generality of the foregoing, without the written consent of the Holders of a majority of the then outstanding Registrable Securities, the Company shall not grant to any Person the right to request the Company to register any securities of the Company under the Securities Act unless the rights so granted are subject in all respects to the prior rights in full of the Holders set forth herein, and are not otherwise in conflict with the provisions of this Agreement.
	 	 	 	 
	 	 	c.	No Piggyback on Registrations for Other Securities. Neither the Company nor any of its security holders may include securities of the Company in the Registration Statement, and the Company shall not after the date hereof enter into any agreement providing such right to any of its security holders, unless the right so granted is subject in all respects to the prior rights in full of the Holders set forth herein, and is not otherwise in conflict with the provisions of this Agreement.

 

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	 	 	d.	Piggy-Back Registrations for Registrable Securities. If at any time when there is not an effective Registration Statement covering the Note Shares, the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option  or  other  employee  benefit  plans,  the  Company  shall  send  to  each  Holder  of
Registrable Securities written notice of such determination and, if within ten (10) calendar days after receipt of such notice, or within such shorter period of time as may be specified by the Company in such written notice as may be necessary for the Company to comply with its obligations with respect to the timing of the filing of such registration statement, any such Holder shall so request in writing (which request shall specify the Registrable Securities intended to be disposed of by the such Holder), the Company will cause the registration under the Securities Act of all Registrable Securities which the Company has been so requested to register by the Holder, to the extent requisite to permit the disposition of the Registrable Securities so to be registered, provided that if at any time after giving written notice of its intention to register any securities and prior to the effective date of the registration statement filed in connection with such registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such determination to such Holder and, thereupon, (i) in the case of a determination not to register, shall be relieved of its obligation to register any Registrable Securities in connection with such registration (but not from its obligation to pay expenses in accordance with Section 4 hereof), and (ii) in the case of a determination to delay registering, shall be permitted to delay registering any Registrable Securities being registered pursuant to this Section 7(d) for the same period as the delay in registering such other securities. The Company shall include in such registration statement all or any part of such Registrable Securities such Holder requests to be registered; provided, however, that the Company shall not be required to register any Registrable Securities pursuant to this Section 7(d) that are eligible for sale pursuant to Rule 144 of the Securities Act. In the case of an underwritten public offering, if the managing underwriter(s) or underwriter(s) should reasonably object to the inclusion of the Registrable Securities in such registration statement, then if the Company after consultation with the managing underwriter should reasonably determine that the inclusion of such Registrable Securities would materially adversely affect the offering contemplated in such registration statement, and based on such determination recommends inclusion in such registration statement of fewer or none of the Registrable Securities of the Holders, then (x) the number of Registrable Securities of the Holders included in such registration statement shall be reduced among such Holders based upon the number of Registrable Securities requested to be included in the registration in the order set forth in Section 2(b) hereof, if the Company after consultation with the underwriter(s) recommends the inclusion of fewer Registrable Securities, or (y) none of the Registrable Securities of the Holders shall be included in such registration statement, if the Company after consultation with the underwriter(s) recommends the inclusion of none of such Registrable Securities; provided, however, that if securities are being offered for the account of other persons or entities as well as the Company, such reduction shall not represent a greater fraction of the number of Registrable Securities intended to be offered by the Holders than the fraction of similar reductions imposed on such
other persons or entities (other than the Company). For purposes of this Section 7(d), Registrable Securities shall include any shares actually issued to the Purchasers pursuant to the Securities Escrow Agreement.

 

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	 	 	e.	Failure to File Registration Statement and Other Events. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not filed on or prior to the Filing Date and not declared effective by the Commission on or prior to the Effectiveness  Date  and  maintained  in  the  manner  contemplated  herein  during  the Effectiveness Period or if certain other events occur. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if (A) the Registration Statement is not filed on or prior to the Filing Date, or (B) the Registration Statement is not declared effective by the Commission on or prior to the Effectiveness Date, or (C) the Company fails to file with the Commission a request for acceleration in accordance with Rule 461 promulgated under the Securities Act within three (3) Business Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that a Registration Statement will not be “reviewed,” or not subject to further review, or (D) the Registration Statement is filed with and declared effective by the Commission but thereafter ceases to be effective as to all Registrable Securities at any time prior to the expiration of the Effectiveness Period, without being succeeded immediately by a subsequent Registration Statement filed with and declared effective by the Commission in accordance with Section 2(a) hereof, or (E) the Company has breached Section 3(n) of this Agreement, or (F) trading in the Common Stock shall be suspended or if the Common Stock is no longer quoted on or is delisted from the principal exchange on which the Common Stock is traded for any reason for more than three (3) consecutive Business Days or twelve (12) Business Days in the aggregate for any twelve month period, (any such failure or breach being referred to as an “Event,” and for purposes of clauses (A) and (B) the date on which such Event occurs, or for purposes of clauses (C) and (F) the date on which such three (3) Business Day period is exceeded, or for purposes of clause (D) after more than fifteen (15) Business Days, being referred to as “Event Date”), then the Company shall pay an amount in cash as liquidated damages to each Holder equal to one percent (1%) of the amount of the Holder’s initial investment in the Units for each calendar month or portion thereof thereafter from the Event Date until the applicable Event is cured; provided, however, that in no event shall the amount of liquidated damages payable at any time and from time to time to any Holder pursuant to this Section 7(e) exceed an aggregate of ten percent (10%) of the amount of the Holder’s initial investment in the Units; and provided, further, that in the event the Commission does not permit all of the Registrable Securities to be included in the Registration Statement because of its application of Rule 415, liquidated damages payable pursuant to this Section shall only be payable by the Company based on the portion of the Holder’s initial investment in the Units that corresponds to the number of such Holder’s Registrable Securities permitted to be registered by the Commission in such Registration Statement pursuant to Rule 415. For further clarification, the parties understand that no liquidated damages shall be payable pursuant to this Section with respect to any Registrable Securities that the Company is not permitted to include on such Registration Statement due to the Commission’s application of Rule 415. In addition, no liquidated damages shall be payable with respect to Registrable Securities that may be sold pursuant to Rule 144. Notwithstanding anything to the contrary in this paragraph (e), if (a) any of the Events described in clauses (A), (B), (C), (D) or (F) shall have occurred, (b) on or prior to the applicable Event Date, the Company shall have exercised its rights under Section 3(n) hereof and (c) the postponement or suspension permitted pursuant to such Section 3(n) shall remain effective as of such applicable
Event Date, then the applicable Event Date shall be deemed instead to occur on the second Business Day following the termination of such postponement or suspension. Liquidated damages payable by the Company pursuant to this Section 7(f) shall be payable on the Event Date and the first (1st) Business Day of each thirty (30) day period following the Event Date. Notwithstanding anything to the contrary contained herein, in no event shall any liquidated damages be payable with respect to the Warrants or the Note Shares.

 

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	 	f.	Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of a majority of the then outstanding Registrable Securities.
	 	 	 
	 	g.	Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery, telecopy or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

If to the

 

 

With

 

	 	If to any	 At the

 

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	 	 	          If to any Purchaser: At the address of such Purchaser set forth on Schedule I to this Agreement Any party hereto may from time to time change its address for notices by giving at least ten (10) days written notice of such changed address to the other party hereto.

	 	 	 
	 	h.	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns and shall inure to the benefit of each Holder and its successors and assigns. The Company may not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of each Holder. Each Purchaser may assign its rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement.
	 	 	 
	 	i.	Assignment of Registration Rights. The rights of each Holder hereunder, including the right to have the Company register for resale Registrable Securities in accordance with the terms of this Agreement, shall be automatically assignable by each Holder to any Person who acquires all or a portion of the Registrable Securities if: (i) the Holder agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment, (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b) the securities with respect to which such registration rights are being transferred or assigned, (iii) following such transfer or assignment the further disposition of such securities by the transferee or assignees is restricted under the Securities Act and applicable state securities
 laws unless such securities are registered in a Registration Statement under this Agreement (in which case the Company shall be obligated to amend such Registration Statement to reflect such transfer or assignment) or are otherwise exempt from registration, (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this Section, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions of this Agreement, and (v) such transfer shall have been made in accordance with the applicable requirements of the Purchase Agreement. The rights to assignment shall apply to the Holders (and to subsequent) successors and assigns.

 

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	 	j.	Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.
	 	 	 
	 	k.	Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted. The Company and the Holders agree that venue for any dispute arising under this Agreement will lie exclusively in the state or federal courts located in New York County, New York, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that New York is not the proper venue. The Company and the Holders irrevocably consent to personal jurisdiction in the state and federal courts of the state of New York. The Company and the Holders consent to process being served in any such suit, action or proceeding by mailing a
copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 7(k) shall affect or limit any right to serve process in any other manner permitted by law. The Company and the Holders hereby agree that the prevailing party in any suit, action or proceeding arising out of or relating to this Agreement or the Purchase Agreement, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party. The parties hereby waive all rights to a trial by jury.
	 	 	 
	 	l.	Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law.
	 	 	 
	 	m.	Severability. If any term, provision, covenant or restriction of this Agreement is held to be invalid, illegal, void or unenforceable in any respect, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

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	 	n.	Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.
	 	 	 
	 	o.	Shares Held by the Company and its Affiliates. Whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company or its Affiliates (other than any Holder or transferees or successors or assigns thereof if such Holder is deemed to be an Affiliate solely by reason of its holdings of such Registrable Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage.
	 	 	 
	 	p.	Independent Nature of Purchasers. The Company acknowledges that the obligations of each Purchaser under the Transaction Documents are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under the Transaction Documents. The Company acknowledges that the decision of each Purchaser to purchase Securities pursuant to the Purchase Agreement has been made by such Purchaser independently of any other Purchaser and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company or of its Subsidiaries which may have been made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser or any of its agents or employees shall have any liability to any Purchaser (or any other person) relating to or arising from any such information, materials, statements or opinions. The Company acknowledges that nothing contained herein, or in any Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto (including, but not limited to, the (i) inclusion of a Purchaser in the Registration Statement and (ii) review by, and consent to, such Registration Statement by a Purchaser) shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. The Company acknowledges that each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. The Company acknowledges that it has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by the Purchasers. The Company acknowledges that such procedure with respect to the Transaction Documents in no way creates a presumption that the Purchasers are in any way acting in concert or as a group with respect to the Transaction Documents or the transactions contemplated hereby or thereby.
	 	 	 

[REMAINDER
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          IN
WITNESS WHEREOF, the parties hereto have caused this Registration Adate first indicated above.

	 	 	 	 
	 	 	 	____________, INC.
	 	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title: 	 
	 	 	 
	 		PURCHASERS:
	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title: 	 

 

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[Signature Page to Registration Rights Agreement]

 

 

 

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