Document:

exhibit_10-3.htm

    
      

    

    Exhibit
10.3

     

     

    NOTICE
OF CONFIDENTIALITY RIGHTS:  IF YOU ARE A NATURAL PERSON, YOU MAY
REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT
IS FILED FOR RECORD IN THE PUBLIC RECORDS:  YOUR SOCIAL SECURITY
NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

    

     

     

    DEED
OF TRUST,

    ASSIGNMENT
OF RENTS AND LEASES,

    SECURITY AGREEMENT AND
FIXTURE FILING

     

    THIS DEED
OF TRUST, ASSIGNMENT OF RENTS AND LEASES, SECURITY AGREEMENT AND FIXTURE FILING
(“Security
Instrument”) is made as of this 16th day of
July, 2008 by Valcent Manufacturing, Ltd., a Texas limited partnership, as
Grantor (“Borrower”),
to Deborah P. Everett, Trustee (“Trustee”),
for the benefit of Platinum Long Term Growth VI, LLC, a Delaware limited
liability company, as Agent (for the benefit of the Lenders (as defined below)),
as Beneficiary (together with its successors and assigns, “Agent”).

     

    BACKGROUND

     

    Pursuant
to the Note and Warrant Purchase Agreement, dated as of July 16, 2008 (the
“Note
Purchase Agreement”), between Valcent Products, Inc. (“Valcent”),
as issuer of the Note (defined below), and the Agent and other purchasers named
therein (the Agent and the purchasers are collectively referred to as the “Lenders”),
the Lenders are making a loan to Valcent in the maximum principal amount of
$2,428,166 (the “Valcent
Loan”).  The obligations of Valcent to the Lenders will be
evidenced by one or more promissory notes of even date herewith in the original
aggregate principal amount of the Valcent Loan and are referred to herein
collectively as the “Note”.  Borrower, pursuant to
the Guaranty, dated on or about the date hereof (the “Guaranty”),
has unconditionally guaranteed the obligations of Valcent under the Note and the
other Transaction Documents (as defined in the Note Purchase
Agreement).  The obligations of the Borrower under the Guaranty are
referred to herein as the “Guaranteed
Obligations”.  Borrower desires to secure payment and
performance of Borrower’s Guaranteed Obligations in respect of the Guaranty, the
Note and the Valcent Loan by granting to Agent for itself and for the benefit of
the Lenders, the security described in this Security Instrument.  The
Borrower is a subsidiary of Valcent and the Lenders would not make the Valcent
Loan unless the Borrower executed and delivered this Security Instrument to the
Agent for the benefit of the Lenders.

     

    
      
         

      

      
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    NOW,
THEREFORE, to induce Lenders to make the Valcent Loan to Valcent, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, Borrower agrees as
follows:

     

    ARTICLE
1

    DEFINED
TERMS

     

    1.01           Defined
Terms.  Capitalized terms used in this Security Instrument and
not specifically defined in this Security Instrument have the meaning provided
in the Note Purchase Agreement.

    ARTICLE
2

    GRANT OF
SECURITY

     

    2.01           Property
Mortgaged.  Borrower does hereby irrevocably deed, mortgage,
grant, bargain, sell, assign, pledge, warrant, transfer and convey to Trustee,
and to its successors and assigns, as trustee, in trust for the benefit of
Agent, as security for the Guaranty and the Obligations (defined herein) and for
the benefit of the Lenders, with power of sale, the following property, rights,
interests and estates, now owned or hereafter acquired by Borrower and whether
now existing or hereafter arising (collectively, “Property”):

     

    (a)          Land.  The
land described in Exhibit A attached
hereto and made a part hereof, together with all estates and development rights
now existing or hereafter acquired for use in connection therewith (“Land”);

     

    (b)          Additional
Land.  All land that, from time to time, by supplemental deed
or otherwise, may be expressly made subject to this Security Instrument, and all
estates and development rights hereafter acquired by Borrower for use in
connection with such land (also, the “Land”);

     

    (c)          Improvements.  All
buildings, structures, improvements and fixtures now or hereafter erected or
located on the Land (“Improvements”);

     

    (d)          Easements.  All
easements, rights-of-way or use, rights, strips and gores of land, streets,
ways, alleys, passages, sewer rights, oil, gas, and minerals, and rights thereto
or therein, water, water courses, water rights and powers, air rights and
development rights, and all estates, rights, titles, interests, privileges,
liberties, servitudes, tenements, hereditaments and appurtenances of any nature
whatsoever, in any way now or hereafter belonging, relating or pertaining to the
Property and the reversion and reversions, remainder and remainders, and all
land lying in the bed of any street, road or avenue, opened or proposed, in
front of or adjoining the Land, to the center line thereof, and all the estates,
rights, titles, interests, dower and rights of dower, curtesy and rights of
curtesy, property, possession, claim and demand whatsoever, both at law and in
equity, of Borrower of, in and to the Property and every part and parcel
thereof, with all appurtenances thereto;

     

    (e)          Fixtures and Personal
Property.  All machinery, equipment, fixtures (including,
without limitation, all heating, air conditioning, plumbing, lighting,
communications and elevator fixtures), furnishing, building supplies and
materials, and all other personal property of every kind and nature whatsoever
owned by Borrower (or in which Borrower has or hereafter acquires an interest)
and now or hereafter located upon, or appurtenant to, the Property or used or
useable in the present or future operation and occupancy of the Property, along
with all accessions, replacements, betterments, or substitutions of all or any
portion thereof (collectively, “Personal
Property”);

     

    
      
         

      

      
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    (f)    
      Leases and
Rents.  All leases, subleases, licenses and other agreements
granting others the right to use or occupy all or any part of the Property
together with all restatements, renewals, extensions, amendments and supplements
thereto (“Leases”),
now existing or hereafter entered into, and whether entered before or after the
filing by or against Borrower of any petition for relief under the Bankruptcy
Code, and all of Borrower’s right, title and interest in the Leases, including,
without limitation (i) all guarantees, letters of credit and any other credit
support given by any tenant or guarantor in connection therewith (“Lease
Guaranties”), (ii) all cash, notes, or security deposited thereunder to
secure the performance by the tenants of their obligations thereunder (“Tenant
Security Deposits”), (iii) all claims and rights to the payment of
damages and other claims arising from any rejection by a tenant of its Lease
under the Bankruptcy Code (“Bankruptcy
Claims”), (iv) all of the landlord’s rights in casualty or condemnation
proceeds of a tenant in respect of the leased premises (“Tenant
Claims”), (v) all rents, ground rents, additional rents, revenues,
termination and similar payments, issues and profits (including all oil and gas
or other mineral royalties and bonuses) from the Property (collectively with the
Lease Guaranties, Tenant Security Deposits, Bankruptcy Claims and Tenant Claims,
“Rents”),
whether paid or accruing before or after the filing by or against Borrower of
any petition for relief under the Bankruptcy Code, (vi) all proceeds or streams
of payment from the sale or other disposition of the Leases or disposition of
any Rents, and (vii) the right to receive and apply the Rents to the payment of
the Debt and to do all other things which Borrower or a lessor is or may become
entitled to do under the Leases or with respect to the Rents;

     

    (g)          Condemnation
Awards.  All awards or payments, including interest thereon,
which may heretofore and hereafter be made with respect to the Property, whether
from the exercise of the right of eminent domain (including, without limitation,
any transfer made in lieu of or in anticipation of the exercise of the right),
or for a change of grade, or for any other injury to or decrease in the value of
the Property;

     

    (h)          Insurance
Proceeds.  All proceeds of, and any unearned premiums on, any
insurance policies covering the Property, including, without limitation, the
exclusive right to receive and apply the proceeds of any claim awards,
judgments, or settlements made in lieu thereof, for damage to the
Property;

     

    (i)         
 Tax
Certiorari.  All refunds, abatements, rebates or credits in
connection with a reduction in Taxes, including, without limitation, rebates as
a result of tax certiorari or any other applications or proceedings for
reduction;

     

    (j)       
   Operating
Agreements.  All contracts (including, without limitation,
service, supply, maintenance and construction contracts), registrations,
franchise agreements, permits, licenses (including, without limitation, liquor
licenses, if any, to the fullest extent assignable by Borrower), plans and
specifications, and other agreements, now or hereafter entered into, and all
rights therein and thereto, respecting or pertaining to the use, occupation,
construction, management or operation of the Property, or respecting any
business or activity conducted by Borrower from the Property, and all right,
title and interest of Borrower therein and thereunder, including, without
limitation, the right, while an Event of Default remains uncured, to receive and
collect any sums payable to Borrower thereunder (collectively, “Operating
Agreements”);

     

    
      
         

      

      
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    (k)          Rate Cap
Agreements.  All interest rate cap agreements, swaps or other
interest hedging agreements now or hereafter executed with respect to the
Guaranteed Obligations or to guard against interest rate exposure in connection
with the Guaranteed Obligations, if any;

     

    (l)     
     Intangibles.  All
accounts, escrows, chattel paper, claims, deposits, trade names, trademarks,
service marks, logos, copyrights, books and records, goodwill, and all other
general intangibles relating to or used in connection with the operation of the
Property;

     

    (m)          Accounts.  All
reserves, escrows and deposit accounts maintained by Borrower with respect to
the Property or in which Borrower has any interest (including, without
limitation, all reserves, escrows, and deposit accounts), together with all
cash, checks, drafts, certificates, securities, investment property, financial
assets, instruments and other property from time to time held therein, and all
proceeds, products, distributions, dividends or substitutions thereon or
thereof;

     

    (n)          Rights to Conduct Legal
Actions.  The right, in the name and on behalf of Borrower, to
commence any action or proceeding to protect the interest of Agent in the
Property, and to appear in and defend any action or proceeding brought with
respect to the Property;

     

    (o)          Proceeds.  All  proceeds
and profits arising from the conversion, voluntary or involuntary, of any of the
foregoing into cash (whether made in one payment or a stream of payments) and
any liquidation claims applicable thereto; and

     

    (p)          Rights.  Any
and all other rights of Borrower in and to the items set forth in the foregoing
subsections (a)
through (o),
inclusive, and in and to the Property.

     

    TO HAVE
AND TO HOLD the above granted and described Property unto Trustee, and its
successors and assigns, in trust, with power of sale in accordance with the
terms and conditions hereof, for the use and benefit of the Agent, for the
benefit of the Lenders, and the successors and assigns of the Agent, forever;
subject, however, to Section 2.05
below.

     

    2.02          
 Grant of
Security Interest; Security Agreement.  Borrower hereby grants
to Agent, as security for the Guaranteed Obligations and for the benefit of the
Lenders, a security interest in the Property to the fullest extent that the
Property now or hereafter may be subject to a security interest under the
UCC.  Borrower intends for this Security Instrument to be a “security
instrument” within the meaning of the UCC.  Borrower hereby
irrevocably authorizes Agent to prepare, execute and file all initial financing
statements, and any restatements, extensions, continuations, renewals or
amendments thereof, in such form as Agent may require to perfect or continue the
perfection of this security interest or other statutory liens held by
Agent.  Unless prohibited by applicable law, Borrower agrees to pay
all reasonable expenses incident to the preparation, execution, filing and/or
recording of any of the foregoing.  With respect to any of the
Property in which a security interest is not perfected by the filing of a
financing statement, Borrower consents and agrees to undertake, and to cooperate
fully with Agent, to perfect the security interest hereby granted to Agent in
the Property.  Without limiting the foregoing, if and to the extent
any of the Property is held by a bailee for the benefit of Borrower, Borrower
shall promptly notify Agent thereof and, if required by Agent promptly obtain an
acknowledgment from such bailee that is satisfactory to Agent and confirms that
such bailee holds the Property for the benefit of Agent as secured party and
shall only act upon instructions from Agent with respect to the
Property.

     

    
      
         

      

      
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    2.03           
Assignment of Leases
and Rents.

     

    (a)          Rights Granted to
Agent.  Borrower hereby absolutely and unconditionally assigns
to Agent all of Borrower’s right, title and interest in and to all current and
future Leases and Rents.  Borrower hereby declares its intention to
establish a present, absolute and irrevocable transfer and assignment to Agent
of all Rents and Leases and to authorize and empower Agent to collect and
receive all Rents and exercise all of Borrower’s rights under the Leases
(including, without limitation, the right to modify, extend or terminate any
Lease) without any further action by Borrower; it being intended that this
assignment is effective immediately and not an assignment made for security
only, notwithstanding any provision hereof to the contrary.  For
purposes of giving effect to this assignment of Rents and Leases and for no
other purpose, Rents and Leases shall not be deemed to be part of the “Property”
as that term is defined in Section 2.01 of this
Security Instrument. If, however, this assignment of Rents and Leases is not
enforceable by its terms under the laws of the State where the Property is
located, then Rents and Leases shall be included as part of the Property and it
is Borrower’s intention that, in this circumstance, this Security Instrument
creates and perfects a lien of the Rents and Leases in favor of Agent, which
lien shall be effective as of the date of this Security Instrument.

     

    (b)          License to Borrower;
Revocation.  Nevertheless, subject to the terms of this
Security Instrument and the Note Purchase Agreement, Agent grants to Borrower a
revocable license (i) to manage the leasing activities of the Property, and (ii)
to exercise all of Borrower’s rights under the Leases.  So long as no
Event of Default exists, the Rents remaining after application pursuant to the
preceding sentence may be retained by Borrower free and clear of, and released
from, Agent’s rights with respect to Rents under this Security
Instrument.  From and after the occurrence of an Event of Default, and
without the necessity of notice or prior demand or Agent’s entering upon and
taking and maintaining control of the Property (whether directly or through a
receiver), the license granted to Borrower by this Section shall terminate
automatically, and Agent shall be entitled to receive and collect the Rents as
they become due and payable and exercise all of Borrower’s rights or the rights
of lessor under the Leases and with respect to the
Rent.   Agent’s right to revoke the license granted to Borrower
is in addition to all other rights and remedies available to Agent following an
Event of Default.

     

    (c)          No Obligations Assumed by
Agent.  Neither the granting of this assignment to Agent, nor
Agent’s exercise of any rights or remedies with respect to this assignment,
shall be construed (i) to make Agent a “mortgagee in possession” of the Property
in the absence of Agent itself taking actual possession of the Property or (ii)
to obligate Agent to take any action with respect to the Leases, including,
without limitation, the performance of any obligation to be performed on the
part of Borrower under any of the Leases, which shall remain exclusively with
Borrower.  Without limiting the foregoing, this assignment shall not
operate to place on Agent any obligation or liability for: (i) the control,
care, management or repair of the Property; (ii) for carrying out any of the
terms and conditions of the Leases; (iii) any waste committed on the Property by
tenants or any other parties; (iv) any dangerous or defective condition of the
Property (including, without limitation, the presence of any Hazardous Materials
as defined in the Environmental Indemnity); or (v) any negligence in the
management, upkeep, repair or control of the Property resulting in injury or
death to any tenant or any other party or any loss of personal
property.  Borrower, for itself and any party claiming under or
through Borrower, hereby releases and discharges Agent from any such liability
to the fullest extent permitted by law. Agent shall be obligated to account only
for Rents actually collected or received by Agent, and Agent shall not be liable
for any loss sustained by Borrower resulting from Agent’s failure to lease the
Property after an Event of Default.

     

    
      
         

      

      
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    2.04           
Fixture
Filing.  Certain of the Property is or will become “fixtures”
(as that term is defined in the UCC) on the Land, and this Security Instrument
upon being filed for record in the real estate records of the city or county
wherein such fixtures are situated, shall operate also as a financing statement
filed as a fixture filing in accordance with the applicable provisions of the
UCC upon such of the Property that is or will become fixtures.

     

    2.05     
      Pledge of Monies
Held.  Borrower hereby pledges to Agent, as security for the
Obligations and for the benefit of the Lenders, all money now or hereafter held
by Agent in escrow or reserve or on deposit pursuant to the terms hereof or
pursuant to any Transaction Document, until expended or applied as provided in
this Security Instrument or such other Transaction Document.

     

    2.06   
        Release of
Security.  The grants, deed of trust, mortgage, liens, security
interests, assignments, pledges and transfers by this Security Instrument are
subject to the express condition that, if Borrower pays to Lenders the Debt at
the time and in the manner provided in the Transaction Documents and performs
all Obligations when and as required by the Guaranty and each other Transaction
Documents, Agent shall release the Property from the grants, deed of trust,
mortgage, liens, security interests, assignments, pledges and transfers created
by this Security Instrument and reconvey the Property to
Borrower.  Agent shall prepare (at Borrower’s expense) and deliver to
Borrower such documents as are necessary to effect such release and
reconveyance.

     

    ARTICLE
3

    DEBT AND
OBLIGATIONS SECURED

     

    3.01        
   Debt.  This
Security Instrument and the interests created in favor of Agent hereunder are
given for the purpose of securing (a) payment of principal, interest and all
other amounts due at anytime under the Guaranty, the Note and each of the other
Transaction Documents, including, without limitation, interest at the Default
Rate, any late fee for delinquent payment, and amounts advanced by Agent or any
other Lender to protect and preserve the Property and the Liens hereby created
for the benefit of Agent (collectively “Debt”), and (b) performance of
all obligations of Borrower contained in the Guaranty, the Note and each of the
other Transaction Documents (collectively with the Debt, the “Obligations”).  Notwithstanding
any provision of this Security Instrument to the contrary, the obligations of
Borrower and the other indemnitors under the Environmental Indemnity Agreement
(as defined in the Purchase Agreement) shall not be deemed secured by this
Security Instrument unless and until Agent expressly declares in writing such
obligations to be secured hereby.

     

    
      
         

      

      
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    ARTICLE
4

    BORROWER
COVENANTS

     

    4.01     
      Payment of Debt and
Performance of Obligations.  Borrower will pay the Debt at the
time and in the manner provided in the Guaranty and the other Transaction
Documents and fully and punctually perform the Obligations when and as required
by the Transaction Documents.

     

    4.02     
      Compliance with Transaction
Documents.  Borrower shall comply with all covenants and
agreements in the Transaction Documents, including, without limitation, all
obligations regarding the ownership, operation, management and condition of the
Property and the protection and perfection of the Liens hereby created in favor
of Agent.  Without limiting the foregoing, Borrower
agrees:

     

    (a)          
Borrower shall not cause or permit any Transfer of the legal or beneficial
ownership of the Property or Borrower.

     

    (b)           To
keep the Property in good repair and condition;

    

    (c)           To
pay all taxes and assessments on the Property before delinquency;

    

    (d)           To
defend title to the Property subject to the Other Exceptions to Conveyance and
Warranty and preserve the lien's priority as it is established in this deed of
trust;

    

    (e)           To
maintain, in a form acceptable to Agent, an insurance policy that-

    

    (i)        
   covers all improvements for their full insurable value as
determined when the policy is issued and renewed, unless Agent approves a
smaller amount in writing;

    

    
      
        	
              	
                (ii)

              	
                contains
      an 80 percent coinsurance
clause;

              

      

    

    

    
      	
            	
              (iii) 

            	
              provides
      fire and extended coverage, including windstorm
  coverage;

            

    

    

    
      	
            	
              (iv) 

            	
              protects
      Agent with a standard mortgage
clause;

            

    

    

    
      	
            	
              (v) 

            	
              provides
      flood insurance at any time the Property is in a flood hazard area;
      and

            

    

    
      
         

      

      
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                (vi)

              	
                contains
      such other coverage as Agent may reasonably
  require;

              

      

    

    

    
      	
            	
              (vii) 

            	
              comply
      at all times with the requirements of the 80 percent coinsurance
      clause;

            

    

    

    (viii)        deliver
the insurance policy to Agent within ten days of the date of the deed of trust
and deliver renewals to Agent at least fifteen days before
expiration;

    

    (f)         
  To obey all laws, ordinances, and restrictive covenants applicable
to the Property;

    

    (g)
          To keep any
buildings occupied as required by the insurance policy; and

    

    (h)       
   Obligations upon
Condemnation or Casualty.  Borrower shall comply with all
obligations required under the Transaction Documents in the event the Property
is damaged by a Casualty or becomes involved in any Condemnation.  All
proceeds or awards recovered or payable to Borrower as a result of a Casualty or
Condemnation shall be paid to, and administered by Agent, in accordance with the
Note Purchase Agreement.

     

    (i)      
    Operating
Agreements.  Borrower shall observe and perform in a timely
manner each and every obligation to be observed or performed by Borrower
pursuant to the terms of each Operating Agreement and shall not terminate any
Operating Agreement.

     

    4.03       
    Warranty of
Title.  Borrower has good, marketable and insurable fee simple
title of record to the Property, free and clear of all liens, encumbrances and
charges whatsoever except for the Permitted Encumbrances. Borrower shall forever
warrant, defend and preserve the title and the validity and priority of the lien
of this Security Instrument and shall forever warrant and defend the same to
Agent and/or Trustee against the claims of all Persons

     

    ARTICLE
5

    SUBROGATION

     

    5.01        
   Subrogation.  If
the Guaranteed Obligations is used to pay, satisfy, discharge, extend or renew
any indebtedness secured by a pre-existing mortgage, deed of trust or other lien
encumbering the Property (“Prior
Lien”), then to the extent of funds so used, Agent shall automatically,
and without further action on its part, be subrogated to all rights, including
lien priority, held by the holder of the indebtedness secured by the Prior Lien,
whether or not the Prior Lien is released, and such former rights are not waived
but rather are continued in full force and effect in favor of Agent and are
merged with the lien and security interest created herein as cumulative security
for payment of the Debt and performance of the Obligations.

     

    ARTICLE
6

    DEFAULT

     

    6.01     
      Events of
Default.  The occurrence of default under the Guaranty shall
constitute an “Event of
Default” under this Security Instrument.

     

    
      
         

      

      
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    6.02         
  Remedies.  If
an Event of Default occurs, Agent may, at its option, acting directly or through
Trustee and without prior notice or demand, exercise, and hereby is authorized
and empowered by Borrower so to exercise, any or all of the remedies set forth
in the Note (including, without limitation, the right to accelerate the
Guaranteed Obligations and the right to appoint a receiver, trustee, liquidator
or conservator of the Property) or otherwise permitted by law or in
equity.

     

    6.03     
      Cumulative Remedies; No
Waiver; Other Security.  Agent’s remedies under this Security
Instrument are cumulative with the remedies provided in the other Transaction
Documents, by law or in equity and may be exercised independently, concurrently
or successively in Agent’s sole discretion and as often as occasion therefor
shall arise.  Agent’s delay or failure to accelerate the Guaranteed
Obligations or exercise any other remedy upon the occurrence of an Event of
Default shall not be deemed a waiver of such right as remedy.  No
partial exercise by Agent of any right or remedy will preclude further exercise
thereof.  Notice or demand given to Borrower in any instance will not
entitle Borrower to notice or demand in similar or other circumstances nor
constitute Agent’s waiver of its right to take any future action in any
circumstance without notice or demand (except where expressly required by this
Security Instrument to be given). Agent may release other security for the Debt,
may release any party liable for the Debt, may grant extensions, renewals or
forbearances with respect thereto, may accept a partial or past due payment or
grant other indulgences, or may apply any other security held by it to payment
of the Debt, in each case without prejudice to its rights under this Security
Instrument and without such action being deemed an accord and satisfaction or a
reinstatement of the Debt.  Agent will not be deemed as a consequence
of its delay or failure to act, or any forbearances granted, to have waived or
be estopped from exercising any of its rights or remedies.

     

    6.04      
     Enforcement
Costs.  Borrower shall pay, on written demand by Agent, all
costs incurred by Agent in (a) collecting any amount payable under the
Transaction Documents including, without limitation, any and all costs and
expenses incurred in connection with any foreclosure of this Security Instrument
or the exercise of any power or sale hereunder, or (b) enforcing its rights
under the Transaction Documents, in each case whether or not legal proceedings
are commenced.  Such fees and expenses include, without limitation,
reasonable fees for attorneys, paralegals, law clerks and other hired
professionals, a reasonable assessment of the cost of services performed by
Agent’s default management staff, court fees, costs incurred in connection with
pre-trial, trial and appellate level proceedings, including discovery, and costs
incurred in post-judgment collection efforts or in any bankruptcy
proceeding.  Amounts incurred by Agent shall be added to the Debt,
shall be immediately due and payable, and shall bear interest at the Default
Rate from the date of disbursement until paid in full, if not paid in full
within five (5) days after Agent’s written demand for payment.

     

    6.05           
Application of
Proceeds.  The proceeds from disposition of the Property shall
be applied by Agent to the payment of the Debt (including, without limitation,
advances made by Agent and enforcement costs incurred by Agent) in such priority
and proportion as Agent determines in its sole discretion.

     

    6.06     
      Continuing Lien; Right to
Release Property.  If less than all of the Property is, at any
time, sold through foreclosure, power of sale, or otherwise, or if Agent
releases any portion of the Property (for whatever consideration Agent deems
appropriate), this Security Instrument shall continue as a lien and security
interest on the remaining portion of the Property, unimpaired and without loss
of priority.

     

    
      
         

      

      
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    ARTICLE
7

    WAIVER OF
RIGHT OF REDEMPTION AND OTHER RIGHTS

     

    7.01          
 Waiver of Rights
of Redemption, Marshalling and Other Rights.  Borrower hereby
waives, to the fullest extent permitted by law, the benefit of all laws, now or
hereafter in force, providing for (a) the valuation or appraisement of the
Property, or any part thereof, prior to any sale or sales thereof pursuant to
this Security Instrument or any decree, judgment or order of a court of
competent jurisdiction; (b) the right to stay or extend any such proceeding, to
have this Security Instrument reinstated or to redeem the Property or any
portion thereof so sold; (c) rights of marshalling relating to any such sale or
sales; (d) any right to require that the Property be sold as separate tracts or
units in connection with enforcement of this Security Instrument; and (e) the
benefit of any moratorium, exemption or homestead rights now or hereafter
provided. Borrower makes such waivers on its own behalf and on behalf of all
parties now or hereafter claiming or having an interest (direct or indirect) by,
through or under Borrower.

     

    7.02        
   Waiver of
Counterclaim.  Borrower hereby waives, to the fullest extent
permitted by law, the right to assert a counterclaim, other than a mandatory or
compulsory counterclaim, in any action or proceeding brought against it by
Trustee or Agent arising out of, or in any way connected with, the
Obligations.

     

    7.03 
          Waiver of Foreclosure
Defense.  Borrower hereby waives, to the fullest extent
permitted by law, any defense Borrower might have by reason of Agent’s failure
to make any tenant or tenant of the Property a party defendant in any
foreclosure instituted by Agent.

     

    7.04      
     Waiver of Notices
Generally.  Borrower hereby waives, to the fullest extent
permitted by law, its rights to notice from Agent except when this Security
Instrument or the other Transaction Documents expressly provides for Agent to
give notice to Borrower.

     

    7.05       
    Waiver of Statute of
Limitations and Laches.  Borrower hereby waives, to the fullest
extent permitted by law, the benefit of any statute of limitations or laches
defense to payment of the Debt or performance of the Obligations.

     

    7.06    
       WAIVER OF
TRIAL BY JURY.  BORROWER WAIVES ITS
RIGHT, TO THE FULLEST EXTENT PERMITTED BY LAW, AND AGREES NOT TO ELECT, A TRIAL
BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS SECURITY INSTRUMENT OR THE
RELATIONSHIP BETWEEN THE PARTIES AS BORROWER AND AGENT.

     

    7.07    
       Consent to
Jurisdiction.  Borrower hereby consents and submits to the
exclusive jurisdiction and venue of any state or federal court sitting in the
county and state where the Land is located with respect to any legal action or
proceeding arising with respect to this Security Instrument and waives all
objections which it may have to such jurisdiction and venue. Nothing herein
shall, however, preclude or prevent Agent from bringing actions against Borrower
in any other jurisdiction as may be necessary to enforce or realize upon the
security herein provided.

     

    
      
         

      

      
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    ARTICLE
8

    MISCELLANEOUS
PROVISIONS

     

    8.01        
   Further
Acts.  Borrower, at Borrower’s expense, agrees to take such
further actions and execute such further documents as Agent reasonably may
request to carry out the intent of this Security Instrument or to establish and
protect the rights and remedies created or intended to be created in favor of
Agent hereunder or to protect the value of the Property and the Liens and
security hereby created in favor of Agent.  Borrower agrees to pay all
filing, registration or recording fees or taxes, and all expenses incident to
the preparation, execution, acknowledgement or filing/recording of this Security
Instrument or any such instrument of further assurance, except where prohibited
by law so to do.

     

    8.02      
     No Third Party
Beneficiary.  Notwithstanding any provision of this Security
Instrument to the contrary, this Security Instrument is not intended by the
parties to create, and shall not create, benefits on behalf of any tenant or
other occupant of the Property or anyone claiming rights through any tenant or
other occupant of the Property.

     

    8.03          
 No Agency or
Partnership.  Nothing contained in this Security Instrument
shall constitute Agent as a joint venturer, partner or agent of Borrower, or
render Agent liable for any debts, obligations, acts, omissions,
representations, or contracts of Borrower.

     

    ARTICLE
9

    TRUSTEE
PROVISIONS

     

    9.01        
   Trustee’s Fees and
Expenses.  Borrower shall pay all reasonable fees and expenses
incurred by Trustee for legal counsel and other professional advisors in
connection with Trustee’s performance of its duties hereunder. Amounts incurred
by Trustee shall be deemed a part of the Debt secured by this Security
Instrument and bear interest at 18 percent if not paid in full within five (5)
days after Trustee’s written demand for payment. Trustee hereby waives any
statutory fee or compensation for services rendered hereunder.

     

    9.02     
      Duties of
Trustee.

     

    (a)          Trustee,
by acceptance of this Security Instrument, covenants to perform and fulfill the
trusts and duties herein created and conferred upon
Trustee.  Notwithstanding the foregoing, Trustee agrees not to execute
any of the powers conferred upon Trustee hereunder, nor to take any action to
protect or enforce Agent’s rights hereunder, nor to provide any interpretation
of this Security Instrument or any of the other Transaction Documents without
Agent’s prior written consent thereto in each instance. Trustee, however, has an
affirmative duty to reasonably cooperate with Agent as Agent may require to
protect the Property and to enforce Agent’s rights hereunder, but Trustee shall
not be obligated to institute or defend any suit in respect hereof or to perform
any act which would involve Trustee in any expense or liability unless, in each
case, properly indemnified to Trustee’s reasonable
satisfaction.  Trustee also has no duty to see to any recording,
filing or registration of this Security Instrument or any other instrument in
addition or supplemental hereto, or to give any notice thereof, or to see to the
payment of, or be under any duty in respect of, any tax or assessment or other
governmental charge which may be levied or assessed on the Property or against
Borrower, or to see to the performance or observance by Borrower of any of the
covenants and agreements contained herein.  Trustee shall not be
responsible for the sufficiency of the security purported to be created hereby
and makes no representation or warranty in respect thereof or in respect of the
rights of Agent.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

     

    (b)          Trustee
shall not be liable for any error of judgment or act done by Trustee in good
faith or otherwise responsible or accountable under any circumstances whatsoever
(including Trustee’s negligence), except for Trustee’s gross negligence or
willful misconduct.  Trustee has the right to advice of counsel upon
any matters arising hereunder and shall be fully protected in relying on the
advice of counsel. Trustee has the right to rely on any instrument, document or
signature authorizing or supporting any action taken or proposed to be taken by
Trustee hereunder, believed by Trustee in good faith to be
genuine.  Trustee shall not be personally liable in case of entry upon
the Property by Trustee, or anyone entering by virtue of the powers herein
granted to Trustee, or for liability or damages incurred in the management or
operation of the Property.

     

    (c)          All
money received by Trustee with respect to the Debt and Obligations shall, until
used or applied as herein provided, be held in trust for the purposes for which
they were received, but need not be segregated in any manner from any other
moneys (except to the extent required by applicable law), and Trustee shall be
under no liability for interest on any moneys received by Trustee
hereunder.

     

    9.03       
    Resignation and Substitution
of Trustee.

     

    (a)          Trustee
may resign at any time upon written notice to Agent delivered not less than
thirty (30) days prior to the intended date of resignation.  In the
event of Trustee’s death, resignation, refusal to act, disqualification or other
inability to act, or if Agent shall deem it desirable to remove Trustee for any
reason with or without cause, Agent has the right, in its sole discretion, to
select and appoint a successor trustee (who may be Agent or an affiliate of
Agent if permitted by law), without application to court or compliance with any
formality other than appointment and designation in writing by Agent. If Agent
is a corporation or association and such appointment is executed in its behalf
by an officer of such corporation or association, such appointment shall be
conclusively presumed to be executed with authority and shall be valid and
sufficient without proof of any action by the board of directors or any superior
officer of the corporation or association.

     

    (b)          Any
successor appointed as Trustee shall, without further act, deed or conveyance,
become vested with all of the estates, properties, rights, powers, privileges,
immunities and duties herein conferred upon Trustee with like effect as if such
successor were originally named as trustee herein.  Nevertheless, upon
the written request of Agent or of the successor as Trustee, the party ceasing
to act as Trustee shall execute and deliver an instrument, in recordable form,
transferring to such successor as Trustee, all of the estates, properties,
rights, powers, privileges, immunities and duties herein conferred upon Trustee
and shall duly assign, transfer and deliver to such successor, in trust, any of
the property and money then held by the party ceasing to act as
Trustee.

     

    
      
         

      

      
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    9.04      
     Multiple
Trustees.  If more than one Trustee is appointed hereunder at
any one time, or from time to time, all rights granted to and all powers
conferred upon Trustee hereunder may be exercised by any or all of such
Trustees, independently or jointly.  Action exercised by one Trustee
shall be deemed valid and binding on all Trustees.

     

    ARTICLE
10

    LOCAL LAW
PROVISIONS

     

    The
provisions set forth below control in the event of any conflict with the other
terms of this Security Instrument.

    

    10.01           Acceleration;
Remedies

     

    10.02           At
any time during the existence of an Event of Default, Agent, at Agent’s option,
may declare the Debt to be immediately due and payable without further demand,
and may invoke the power of sale and any other remedies permitted by Texas law
or provided in this Security Instrument or in any other Transaction
Document.  Borrower acknowledges that the power of sale granted in
this Security Instrument may be exercised by Agent without prior judicial
hearing.  Agent shall be entitled to collect all reasonable costs and
expenses incurred in pursuing such remedies, including reasonable attorneys’
fees, costs of documentary evidence, abstracts and title reports.

     

    (a)     
     If Agent invokes the power of sale, Agent may, by
and through the Trustee, or otherwise, sell or offer for sale the Property in
such portions, order and parcels as Agent may determine, with or without having
first taken possession of the Property, to the highest bidder at public
auction.  Such sale shall be made at the courthouse door of the county
in which all or any part of the Land to be sold is situated (whether the parts
or parcel, if any, situated in different counties are contiguous or not, and
without the necessity of having any Property present at such sale) on the first
Tuesday of any month between the hours of 10:00 A.M. and 4:00 P.M., after
advertising the time, place and terms of sale and that portion of the Property
to be sold by posting or causing to be posted written or printed notice of sale
at least twenty-one (21) days before the date of the sale at the courthouse door
of the county in which the sale is to be made and at the courthouse door of any
other county in which a portion of the Land may be situated, and by filing such
notice with the County Clerk(s) of the county(s) in which all or a portion of
the Land may be situated, which notice may be posted and filed by the Trustee
acting, or by any person acting for the Trustee, and Agent has, at least
twenty-one (21) days before the date of the sale, served written or printed
notice of the proposed sale by certified mail on each debtor obligated to pay
the Debt according to Agent’s records by the deposit of such notice, enclosed in
a postpaid wrapper, properly addressed to such debtor at debtor’s most recent
address as shown by Agent’s records, in a post office or official depository
under the care and custody of the United States Postal Service.  The
affidavit of any person having knowledge of the facts to the effect that such
service was completed shall be prima facie evidence of the
fact of service.

     

    (b)          Trustee
shall deliver to the purchaser at the sale, within a reasonable time after the
sale, a deed conveying the Property so sold in fee simple with covenants of
special warranty.  Borrower covenants and agrees to defend the
purchaser’s title to the Property against all claims and demands, subject to the
Permitted Encumbrances and any other exceptions hereafter approved by Agent in
writing.  The recitals in Trustee’s deed shall be prima facie evidence of the truth of
the statements contained in those recitals.  Trustee shall apply the
proceeds of the sale in the following order:  (i) to all reasonable
costs and expenses of the sale, including reasonable Trustee’s fees not to
exceed 5% of the gross sales price, attorneys’ fees and costs of title evidence;
(ii) to the Debt in such order as Agent, in Agent’s discretion, directs; and
(iii) the excess, if any, to the person or persons legally entitled to the
excess.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

     

    (c)    
      If all or any part of the Property is sold
pursuant to this Section, Borrower will be divested of any and all interest and
claim to the Property, including, without limitation, any interest or claim to
all insurance policies, utility deposits, bonds, loan commitments and other
intangible property included as a part of the Property.  Additionally,
after a sale of all or any part of the Land, Improvements, and Personal
Property, Borrower will be considered a tenant at sufferance of the purchaser of
the same, and the purchaser shall be entitled to immediate possession of such
property.  If Borrower shall fail to vacate the Property immediately,
the purchaser may and shall have the right, without further notice to Borrower,
to go into any justice court in any precinct or county in which the Property is
located and file an action in forcible entry and detainer, which action shall
lie against Borrower or its assigns or legal representatives, as a tenant at
sufferance.  This remedy is cumulative of any and all remedies the
purchaser may have under this Security Instrument or otherwise.

     

    (d)     
     In any action for a deficiency after a foreclosure
under this Security Instrument, if any person against whom recovery is sought
requests the court in which the action is pending to determine the fair market
value of the Property, as of the date of the foreclosure sale, the following
shall be the basis of the court’s determination of fair market
value:

     

    (i)            the
Property shall be valued “as is” and in its condition as of the date of
foreclosure, and no assumption of increased value because of post-foreclosure
repairs, refurbishment, restorations or improvements shall be made;

     

    (ii)           any
adverse effect on the marketability of title because of the foreclosure or
because of any other title condition not existing as of the date of this
Security Instrument shall be considered;

     

    (iii)          the
valuation of the Property shall be based upon an assumption that the foreclosure
purchaser desires a prompt resale of the Property for cash within a six
month-period after foreclosure;

     

    (iv)          although
the Property may be disposed of more quickly by the foreclosure purchaser, the
gross valuation of the Property as of the date of foreclosure shall be
discounted for a hypothetical reasonable holding period (not to exceed 6 months)
at a monthly rate equal to the average monthly interest rate on the Note for the
twelve months before the date of foreclosure;

     

    (v)          the
gross valuation of the Property as of the date of foreclosure shall be further
discounted and reduced by reasonable estimated costs of disposition, including
brokerage commissions, title policy premiums, environmental assessment and
clean-up costs, tax and assessment, prorations, costs to comply with legal
requirements and attorneys’ fees, reduced by the discounted value of estimated
net operating income to be generated by the Property pending disposition, if
any;

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

     

    (vi)         expert
opinion testimony shall be considered only from a licensed appraiser certified
by the State of Texas and, to the extent permitted under Texas law, a member of
the Appraisal Institute, having at least five years’ experience in appraising
property similar to the Property in the county where the Property is located,
and who has conducted and prepared a complete written appraisal of the Property
taking into considerations the factors set forth in this Security Instrument; no
expert opinion testimony shall be considered without such written
appraisal;

     

    (vii)        evidence
of comparable sales shall be considered only if also included in the expert
opinion testimony and written appraisal referred to in subsection (vi),
above; and

     

    (viii)       an
affidavit executed by Agent to the effect that the foreclosure bid accepted by
Trustee was equal to or greater than the value of the Property determined by
Agent based upon the factors and methods set forth in subsections (i) through
(vii) above before the foreclosure shall constitute prima facie evidence that
the foreclosure bid was equal to or greater than the fair market value of the
Property on the foreclosure date.

     

    (e)          Agent
may, at Agent’s option, comply with these provisions in the manner permitted or
required by Title 5, Section 51.002 of the Texas Property Code (relating to the
sale of real estate) or by Chapter 9 of the Texas Business and Commerce Code
(relating to the sale of collateral after default by a debtor), as those titles
and chapters now exist or may be amended or succeeded in the future, or by any
other present or future articles or enactments relating to same
subject.  Unless expressly excluded, the Property shall include Rents
collected before a foreclosure sale, but attributable to the period following
the foreclosure sale, and Borrower shall pay such Rents to the purchaser at such
sale.  At any such sale whether made under the power contained in this
Security Instrument, Section 51.002 of the Texas Property Code, Chapter 9 of the
Texas Business and Commerce Code, any other legal requirement or by virtue of
any judicial proceedings or any other legal right, remedy or recourse, it shall
not be necessary for Trustee to have physically present, or to have constructive
possession of, the Property (Borrower shall deliver to Trustee any portion of
the Property not actually or constructively possessed by Trustee immediately
upon demand by Trustee) and the title to and right of possession of any such
property shall pass to the purchaser as completely as if the property had been
actually present and delivered to the purchaser at the sale:

     

    (i)           each
instrument of conveyance executed by Trustee shall contain a special warranty of
title, binding upon Borrower;

     

    (ii)           the
recitals contained in any instrument of conveyance made by Trustee shall
conclusively establish the truth and accuracy of the matters recited therein,
including nonpayment of the Debt and the advertisement and conduct of the sale
in the manner provided in this Security Instrument and otherwise by law and the
appointment of any successor Trustee;

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    (iii)          all
prerequisites to the validity of the sale shall be conclusively presumed to have
been satisfied;

     

    (iv)          the
receipt of Trustee or of such other party or officer making the sale shall be
sufficient to discharge to the purchaser or purchasers for such purchaser(s)’
purchase money, and no such purchaser or purchasers, or such purchaser(s)’
assigns or personal representatives, shall thereafter be obligated to see to the
application of such purchase money or be in any way answerable for any loss,
misapplication or nonapplication of such purchase money;

     

    (v)           to
the fullest extent permitted by law, Borrower shall be completely and
irrevocably divested of all of Borrower’s right, title, interest, claim and
demand whatsoever, either at law or in equity, in and to the property sold, and
such sale shall be a perpetual bar to any claim to all or any part of the
property sold, both at law and in equity, against Borrower and against any
person claiming by, through or under Borrower; and

     

    (vi)          to
the extent and under such circumstances as are permitted by law, Agent may be a
purchaser at any such sale.

     

    10.02           No Fiduciary
Duty. Agent
owes no fiduciary or other special duty to Borrower.

     

    10.03           Fixture Filing. This Security Instrument
is also a fixture filing under the Uniform Commercial Code of
Texas.

     

    10.04           Additional Provisions
Regarding Assignment of Rents. Section 2.03 shall
not be construed to require a pro tanto or other reduction
of the Debt resulting from the assignment of Rents.  If the provisions
of Section 2.03
and the preceding sentence cause the assignment of Rents in Section 2.03 to be
deemed to be an assignment for additional security only, Agent shall be entitled
to all rights, benefits and remedies attendant to such collateral
assignment.  The assignment of Rents contained in Section 2.03 shall
terminate upon the release of this Security Instrument.

     

    10.05          [Reserved]

     

    10.06          Waiver of
Appraisement.  Borrower hereby waives any rights of
appraisement or for determination of the fair market value of the Property under
Sections 51.003 and 51.004 of the Texas Property Code or as Borrower may
otherwise be entitled under Texas law.

     

     [Remainder
of page is blank; signatures appear on next page.]

    

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned hereby signs, seals and delivers this Security
Instrument.

     

     

    
      
        	 	BORROWER:	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

      

    

    

     

    THE STATE
OF TEXAS        §

     

    COUNTY
OF  _______________          §

     

    This
instrument was acknowledged before me on the ____ day of ________, 2008,
____________________, the __________________ of _________________________, on
behalf of said company.

     

     

    
      	 	 	 
	 	 	 	 
	
               

            	
               

            	 
	 	
              Notary
      Public in and for the State of

            	 
	 	 	 
	 	 	 
	 	 	 
	 	
              (Date
      Commission Expires)

            	 
	 	 	 	 
	 	 	 	 

    

     

    

    

    
      
        
          Deed of
Trust, Assignment of Rents and Leases, Security Agreement and Fixture Filing –
Signature Page

        

         

      

      
        17

        
          

        

      

      
         

      

    

    

     

    EXHIBIT
A

     

    Description
of the Land

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    A-1Golden Elephant Glass Technology, Inc.: Exhibit 4.1 - Prepared by TNT
Filings Inc.

  

EXHIBIT 4.1

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this "Agreement") is made and entered into as of July 24, 2008, by and among Golden Elephant Glass Technology, Inc., a Nevada corporation (formerly called Nevstar Corporation), (collectively with all predecessors thereof, the "Company"), and the investors signatory hereto (each an "Investor" and collectively, the "Investors").

This Agreement is made in connection with the Securities Purchase Agreement, dated as of the date hereof, among the Company, the Investors and the other parties thereto(the "Purchase Agreement").

The Company and the Investors hereby agree as follows:  

1.

Definitions.  Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement will have the respective meanings given such terms in the Purchase Agreement.  As used in this Agreement, the following terms have the respective meanings set forth in this Section 1:

“2008 Delivery Date” means the date on which the 2008 Make Good Shares are required to be delivered to the Investors by the Make Good Pledgors pursuant to the Make Good Escrow Agreement.

“2009 Delivery Date” means the date on which the 2009 Make Good Shares are required to be delivered to the Investors by the Make Good Pledgors pursuant to the Make Good Escrow Agreement.

“Advice”  has the meaning set forth in Section 6(d).

"Commission Comments"  means written comments pertaining solely to Rule 415 which are received by the Company from the Commission to a filed Registration Statement, a copy of which shall have been provided by the Company to the Holders, which either (i) requires the Company to limit the number of Registrable Securities which may be included therein to a number which is less than the number sought to be included thereon as filed with the Commission or (ii) requires the Company to either exclude Registrable Securities held by specified Holders or deem such Holders to be underwriters with respect to Registrable Securities they seek to include in such Registration Statement.

“Cut Back Shares” has the meaning set forth in Section 2(b).

"Effective Date" means, as to a Registration Statement, the date on which such Registration Statement is first declared effective by the Commission.

	
     

	 

“Effectiveness Date” means (a) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a), the earlier of: (i) the 135th day following the Closing Date and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that the initial Registration Statement will not be reviewed or is no longer subject to further review and comments; (b) with respect to any additional Registration Statements required to be filed pursuant to Section 2(a), the earlier of: (i) the 120th day following the applicable Filing Date for such additional Registration Statement(s) and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that such additional Registration Statement(s) will not be reviewed or is no longer subject to further review; (c) with respect to any additional Registration Statements required to be filed solely due to SEC Restrictions, the earlier of: (i) the 120th day following the applicable Restriction Termination Date and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that such Registration Statement will not be reviewed or is no longer subject to further review and comments; (d) with respect to a Registration Statement required to be filed under Section 2(c), the earlier of: (i) the 90th day following the date on which the Company becomes eligible to utilize Form S-3 to register the resale of Common Stock; provided, that, if the Commission reviews and has written comments to such filed Registration Statement that would require the filing of a pre-effective amendment thereto with the Commission, then the Effectiveness Date under this clause (d)(i) shall be the 120th day following the date on which the Company becomes eligible to utilize Form S-3 to register the resale of Common Stock, and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that the Registration Statement will not be reviewed or is no longer subject to further review and comments; (e) with respect to a Registration Statement required to be filed under Section 2(d), the earlier of: (i) the 90th day following the 2008 Delivery Date; provided, that, if the Commission reviews and has written comments to such filed Registration Statement that would require the filing of a pre-effective amendment thereto with the Commission, then the Effectiveness Date under this clause (e)(i) shall be the 135th day following the 2008 Delivery Date, and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that the Registration Statement will not be reviewed or is no longer subject to further review and comments and (f) with respect to a Registration Statement required to be filed under Section 2(e), the earlier of: (i) the 90th day following the 2009 Delivery Date; provided, that, if the Commission reviews and has written comments to such filed Registration Statement that would require the filing of a pre-effective amendment thereto with the Commission, then the Effectiveness Date under this clause (f)(i) shall be the 135th day following the 2009 Delivery Date, and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that the Registration Statement will not be reviewed or is no longer subject to further review and comments.

"Effectiveness Period" means, as to any Registration Statement required to be filed pursuant to this Agreement, the period commencing on the Effective Date of such Registration Statement and ending on the earliest to occur of (a) the second anniversary of such Effective Date, (b) such time as all of the Registrable Securities covered by such Registration Statement have been publicly sold by the Holders of the Registrable Securities included therein, or (c) such time as all of the Registrable Securities covered by such Registration Statement may be sold by the Holders without volume restrictions pursuant to Rule 144 as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company's transfer agent and the affected Holders.

	
    2

	 

"Exchange Act" means the Securities Exchange Act of 1934, as amended.

"Filing Date" means (a) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a), the 45th day following the Closing Date; (b) with respect to any additional Registration Statements required to be filed pursuant to Section 2(a), the 15th day following the Effective Date for the last Registration Statement filed pursuant to this Agreement under Section 2(a); (c) with respect to any additional Registration Statements required to be filed due to SEC Restrictions, the 15th day following the applicable Restriction Termination Date; (d) with respect to a Registration Statement required to be filed under Section 2(c), the 30th day following the date on which the Company becomes eligible to utilize Form S-3 to register the resale of Common Stock, (e) with respect to the Registration Statement required to be filed under Section 2(d), the 45th day following the 2008 Delivery Date (provided, that if the Company is then eligible to utilize Form S-3 to register the resale of Common Stock, the Filing Date under this clause (e) shall be 30 days following the 2008 Delivery Date) and (f) with respect to the Registration Statement required to be filed under Section 2(f), the 45th day following the 2009 Delivery Date (provided, that if the Company is then eligible to utilize Form S-3 to register the resale of Common Stock, the Filing Date under this clause (f) shall be 30 days following the 2009 Delivery Date).
 

"Holder" or "Holders" means the holder or holders, as the case may be, from time to time of Registrable Securities.

“Indemnified Party” has the meaning set forth in Section 5(c).

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

“Losses” has the meaning set forth in Section 5(a).

“New York Courts” means the state and federal courts sitting in the City of New York, Borough of Manhattan.

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

“Prospectus” means the prospectus included in a 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 a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

“Registrable Securities” means: (i) the Shares, (ii) the 2008 Make Good Shares, as applicable, (iii) the 2009 Make Good Shares, as applicable, (iv) any shares of Common Stock issuable upon the exercise of warrants issued to any placement agent (the “Placement Agent Warrant Shares”) as compensation in connection with the financing that is the subject of the Purchase Agreement and (v) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event, or any price adjustment as a result of such stock splits, reverse stock splits or similar events with respect to any of the securities referenced in (i) – (iv) above.  Notwithstanding the foregoing, a security shall cease to be a Registrable Security for purposes of this Agreement from and after such time as the Holder of such security may resell such security without volume restrictions under Rule 144, as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company's transfer agent and the affected holders.
 

	
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"Registration Statement" means the initial registration statement required to be filed in accordance with Section 2(a) and any additional registration statements required to be filed under this Agreement, including in each case the Prospectus, amendments and supplements to such registration statements or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference therein.

“Restriction Termination Date” has the meaning set forth in Section 2(b).

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

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

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

“SEC Restrictions” has the meaning set forth in Section 2(b).

"Securities Act" means the Securities Act of 1933, as amended.

"Selling Holder Questionnaire" means the selling security holder notice and questionnaire attached as Annex B hereto.

"Shares" means the shares of Common Stock, par value $0.01 per share, issued or issuable to the Investors pursuant to the Purchase Agreement.

2.

Registration.

(a)

On or prior to the applicable Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all Registrable Securities (other than in the case of the initial Registration Statement to be filed under this Section 2(a), the 2008 Make Good Shares and the 2009 Make Good Shares) not already covered by an existing and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415.  Each Registration Statement required to be filed under this Agreement shall be filed on Form S-1 (or if the Company is not then eligible to utilize such form of registration, it shall utilize such other available form appropriate for such purpose) and contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such Registration Statement, other than as to the characterization of any Holder as an underwriter, which shall not occur unless such characterization is consistent with written information provided by the Holder in the Selling Holder Questionnaire) the "Plan of Distribution" attached hereto as Annex A.  The Company shall cause each Registration Statement required to be filed under this Agreement to be declared effective under the Securities Act as soon as possible but, in any event, no later than its Effectiveness Date, and shall use its reasonable best efforts to keep each such Registration Statement continuously effective during its entire Effectiveness Period.  By 5:00 p.m. (New York City time) on the Business Day immediately following the Effective Date of each Registration Statement, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement (whether or not such filing is technically required under such Rule).  If for any reason other than due solely to SEC Restrictions, a Registration Statement is effective but not all outstanding Registrable Securities are registered for resale pursuant thereto, then the Company shall prepare and file by the applicable Filing Date an additional Registration Statement to register the resale of all such unregistered Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415.  

	
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(b)

Notwithstanding anything to the contrary contained in this Section 2, if the Company receives Commission Comments, and following discussions with and responses to the Commission in which the Company uses its reasonable best efforts and time to cause as many Registrable Securities (other than the 2008 Make Good Shares and 2009 Make Good Shares, unless the 2008 Delivery Date or 2009 Delivery Date, as the case may be, shall have occurred) for as many Holders as possible to be included in the Registration Statement filed pursuant to Section 2(a) without characterizing any Holder as an underwriter unless such characterization is consistent with written information provided by the Holder in the Selling Holder Questionnaire (and in such regard uses its reasonable best efforts to cause the Commission to permit the affected Holders or their respective counsel to participate in Commission conversations on such issue together with Company Counsel, and timely conveys relevant information concerning such issue with the affected Holders or their respective counsel) (the day that such discussions and responses are concluded shall be referred to as the “Tolling Date”), the Company is unable to cause the inclusion of all Registrable Securities, then the Company may, following not less than three (3) Trading Days prior written notice to the Holders (i) remove from the Registration Statement such Registrable Securities (the “Cut Back Shares”) and/or (ii) agree to such restrictions and limitations on the registration and resale of the Registrable Securities, in each case as the Commission may require in order for the Commission to allow such Registration Statement to become effective; provided, that in no event may the Company characterize any Holder as an underwriter unless such characterization is consistent with written information provided by the Holder in the Selling Holder Questionnaire (collectively, the “SEC Restrictions”).  Unless the SEC Restrictions otherwise require, any cut-back imposed pursuant to this Section 2(b) shall be allocated among the Shares of the Holders on a pro rata basis.  The required Effectiveness Date for such Registration Statement will be tolled until such time as the Company is able to effect the registration of the Cut Back Shares in accordance with any SEC Restrictions if such Registrable Securities cannot at such time be resold by the Holders thereof without volume limitations pursuant to Rule 144 (such date, the “Restriction Termination Date”).  From and after the Restriction Termination Date, all provisions of this Section 2 shall again be applicable to the Cut Back Shares (which, for avoidance of doubt, retain their character as “Registrable Securities”) if such Registrable Securities cannot at such time be resold by the Holders thereof without volume limitations pursuant to Rule 144 so that the Company will be required to file with and cause to be declared effective by the Commission such additional Registration Statements in the time frames set forth herein as necessary to ultimately cause to be covered by effective Registration Statements all Registrable Securities.  For the avoidance of doubt, the time period starting from the Tolling Date and ending with the Restriction Termination Date shall be excluded in calculating the applicable Effectiveness Date.
 

	
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(c)

Promptly following any date on which the Company becomes eligible to use a registration statement on Form S-3 to register Registrable Securities for resale, the Company shall file a Registration Statement on Form S-3 covering all Registrable Securities (or a post-effective amendment on Form S-3 to the then effective Registration Statement) and shall cause such Registration Statement to be filed by the Filing Date for such Registration Statement and declared effective under the Securities Act as soon as possible thereafter, but in any event prior to the Effectiveness Date therefor.  Such Registration Statement shall contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such Registration Statement, other than as to the characterization of any Holder as an underwriter, which shall not occur unless such characterization is consistent with written information provided by the Holder in the Selling Holder Questionnaire) the “Plan of Distribution” attached hereto as Annex A.  The Company shall use its reasonable best efforts to keep such Registration Statement continuously effective under the Securities Act during the entire Effectiveness Period.  By 5:00 p.m. (New York City time) on the Business Day immediately following the Effective Date of such Registration Statement, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement (whether or not such filing is technically required under such Rule).

(d)

On or prior to the applicable Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of the 2008 Make Good Shares on Form S-1 or Form S-3 if the Company is then eligible to utilize such Form (or if the Company is not then eligible to utilize such form of registration, it shall utilize such other available form appropriate for such purpose) and shall cause such Registration Statement to be filed by the Filing Date for such Registration Statement and declared effective under the Securities Act as soon as possible thereafter, but in any event prior to the Effectiveness Date therefor.  Such Registration Statement shall contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such Registration Statement, other than as to the characterization of any Holder as an underwriter, which shall not occur without such Holder’s consent) the “Plan of Distribution” attached hereto as Annex A.  The Company shall use its reasonable best efforts to keep such Registration Statement continuously effective under the Securities Act during the entire Effectiveness Period which is applicable to it.  By 5:00 p.m. (New York City time) on the Business Day immediately following the Effective Date of such Registration Statement, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement (whether or not such filing is technically required under such Rule).

	
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(e)

On or prior to the applicable Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of the 2009 Make Good Shares on Form S-1 or Form S-3 if the Company is then eligible to utilize such Form (or if the Company is not then eligible to utilize such form of registration, it shall utilize such other available form appropriate for such purpose) and shall cause such Registration Statement to be filed by the Filing Date for such Registration Statement and declared effective under the Securities Act as soon as possible thereafter, but in any event prior to the Effectiveness Date therefor.  Such Registration Statement shall contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such Registration Statement, other than as to the characterization of any Holder as an underwriter, unless such characterization is consistent with written information provided by the Holder in the Selling Holder Questionnaire) the “Plan of Distribution” attached hereto as Annex A.  The Company shall use its reasonable best efforts to keep such Registration Statement continuously effective under the Securities Act during the entire Effectiveness Period which is applicable to it.  By 5:00 p.m. (New York City time) on the Business Day immediately following the Effective Date of such Registration Statement, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement (whether or not such filing is technically required under such Rule).

(f)

If: (i) a Registration Statement is not filed on or prior to its Filing Date covering the Registrable Securities required under this Agreement to be included therein (if the Company files a Registration Statement without affording the Holders the opportunity to review and comment on the same as required by Section 3(a) hereof, the Company shall not be deemed to have satisfied this clause (i)), or (ii) prior to the effective date of a Registration Statement, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments made by the Commission in respect of any such Registration Statement as promptly as reasonably possible, but in any event, by the 30th calendar day following the date of the initial comments received from the Commission with respect to a Registration Statement indicating that such amendment is required in order for such Registration Statement to be declared effective, and as promptly as reasonably possible, but in any event, by the 21st calendar day following the date of any subsequent comments received from the Commission with respect to such Registration Statement indicating that such amendment is required in order for such Registration Statement to be declared effective (any such failure or breach being referred to as an "Event," and for purposes of clauses (i) or (ii) the date on which such Event occurs, being referred to as "Event Date"), then in addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to 1.0% of the aggregate Investment Amount paid by such Holder for Shares pursuant to the Purchase Agreement.  In no event will the Company be liable for liquidated damages under this Agreement in excess of 1.0% of the aggregate Investment Amount of the Holders in any 30-day period and the maximum aggregate liquidated damages payable to a Holder under this Agreement shall be ten percent (10%) of the aggregate Investment Amount paid by such Holder pursuant to the Purchase Agreement.  The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event (except in the case of the first Event Date), and shall cease to accrue (unless earlier cured) upon the expiration of the Effectiveness Period.
 

	
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(g)

Each Holder agrees to furnish to the Company a completed Questionnaire in the form attached to this Agreement as Annex B (a “Selling Holder Questionnaire”).  The Company shall not be required to include the Registrable Securities of a Holder in a Registration Statement and shall not be required to pay any liquidated or other damages under Section 2(f) to any Holder who fails to furnish to the Company a fully completed Selling Holder Questionnaire at least two Trading Days prior to the Filing Date (subject to the requirements set forth in Section 3(a)).

3.

Registration Procedures.

In connection with the Company's registration obligations hereunder, the Company shall:

(a)

Not less than four Trading Days prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement thereto, the Company shall furnish to each Holder copies of the “Selling Stockholders” section of such document, the “Plan of Distribution” and any risk factor contained in such document that addresses specifically this transaction or the Selling Stockholders, as proposed to be filed, which documents will be subject to the review of such Holder.  Such documents may be delivered to such Holder via electronic mail (i.e., e-mail).  The Company shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto in which the “Selling Stockholder” section thereof differs from the disclosure received from a Holder in its Selling Holder Questionnaire (as amended or supplemented).  The Company shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto in which it (i) characterizes any Holder as an underwriter, unless such characterization is consistent with written information provided by the Holder in the Selling Holder Questionnaire, (ii) excludes a particular Holder due to such Holder refusing to be named as an underwriter, or (iii) reduces the number of Registrable Securities being registered on behalf of a Holder except pursuant to, in the case of subsection (iii), the Commission Comments, without, in each case, such Holder’s express written authorization, unless such reduction is made pursuant to Section 2(b) hereof.

(b)

(i)  Prepare and file with the Commission such amendments, including post-effective amendments, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the Commission such additional Registration Statements 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; (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible provide the Holders true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that would not result in the disclosure to the Holders of material and non-public information concerning the Company; and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the Registration Statement(s) and the disposition of all Registrable Securities covered by each Registration Statement.

	
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(c)

Notify the Holders as promptly as reasonably possible (and, in the case of (i)(A) below, not less than three Trading Days prior to such filing and, in the case of (v) below, not less than three Trading Days prior to the financial statements in any Registration Statement becoming ineligible for inclusion therein) and (if requested by any such Person) confirm such notice in writing no later than one Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be 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 (the Company shall provide true and complete copies thereof and all written responses thereto to each of the Holders that pertain to the Holders as a Selling Stockholder or to the Plan of Distribution, but not information which the Company believes would constitute material and non-public information); and (C) with respect to each 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 a Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation 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 or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or 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 light of the circumstances under which they were made, not misleading.

(d)

Use its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

(e)

Furnish to each Holder, without charge and at the option of the Company in electronic format, at least one conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by such Person (including those previously furnished) promptly after the filing of such documents with the Commission.

	
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(f)

Promptly deliver to each Holder, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request.  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.

(g)

Prior to any public offering of Registrable Securities, register or qualify such Registrable Securities for offer and sale under the securities or Blue Sky laws of all jurisdictions within the United States as any Holder may request, 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 the Registration Statements; provided, however, in connection with any such registration or qualification, the Company shall not be required to (i) qualify to do business in any jurisdiction where the Company would not otherwise be required to qualify, (ii) subject itself to general taxation in any such jurisdiction, (iii) file a general consent to service of process in any jurisdiction, or (iv) make any change to the Company’s Articles of Incorporation or bylaws.

(h)

Cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statement(s), which certificates shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may request.

(i)

Upon the occurrence of any event contemplated by Section 3(c)(v), as promptly as reasonably possible, prepare a supplement or amendment, including a post-effective amendment, to the affected Registration Statements 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, no Registration Statement nor any 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 light of the circumstances under which they were made, not misleading.

4.

Registration Expenses.  All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a 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 Trading Market on which the Common Stock is then listed for trading, and (B) in compliance with applicable state securities or Blue Sky laws), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement.  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 and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.  In no event shall the Company be responsible for any broker or similar commissions incurred by any Holder or, except to the extent provided for in the Transaction Documents, any legal fees or other cost of the Holders in connection with this Agreement.

	
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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, agents, investment advisors, partners, members 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, reasonable costs of preparation and reasonable attorneys' fees) and expenses (collectively, "Losses"), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in any 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 or alleged 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 light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose) or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have been corrected.  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.

(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 or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon: (x) such Holder's failure to comply with the prospectus delivery requirements of the Securities Act or (y) any untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading to the extent, but only to the extent that, (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or  defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have been corrected.  In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

	
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(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 shall promptly notify the Person from whom indemnity is sought (the "Indemnifying Party") in writing, and the Indemnifying Party shall 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; (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 Indemnified Party 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); provided, that, the Indemnifying Party shall pay for no more than two separate sets of counsel for all Indemnified Parties and such legal counsel shall be selected by Holders of no less than a majority in interest of the then outstanding Registrable Securities  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.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, 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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All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder).

(d)

Contribution.  If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (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 fault 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 or alleged untrue statement of a material fact or omission or alleged 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.

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.  Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

	
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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.

6.

Miscellaneous.

(a)

Remedies.  In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement.  The Company and each Holder agree 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 Piggyback on Registrations.  Except as and to the extent specified in Schedule 3.1(v) to the Purchase Agreement, neither the Company nor any of its security holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in a Registration Statement other than the Registrable Securities, and the Company shall not during the Effectiveness Period enter into any agreement providing any such right to any of its security holders.

(c)

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

(d)

Discontinued Disposition.  Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(c), 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 or until it is advised in writing (the "Advice") by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement.  The Company may provide appropriate stop orders to enforce the provisions of this paragraph.

(e)

Piggy-Back Registrations.  If at any time during the Effectiveness Period  there is not an effective Registration Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then the Company shall send to each Holder written notice of such determination and, if within fifteen calendar days after receipt of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such holder requests to be registered, subject to customary underwriter cutbacks applicable to all holders of registration rights.

	
    14

	 

(f)

Amendments and Waivers.  The provisions of this Agreement, including the provisions of this Section 6(f), 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 no less than a majority in interest of the then outstanding Registrable Securities.  Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of certain Holders and that does not directly or indirectly affect the rights of other Holders may be given by Holders of at least a majority of the Registrable Securities to which such waiver or consent relates; provided, further that no amendment or waiver to any provision of this Agreement relating to naming any Holder or requiring the naming of any Holder as an underwriter may be effected in any manner inconsistent with the written information provided by the Holder in the Selling Holder Questionnaire.  Section 2(a) may not be amended or waived except by written consent of each Holder affected by such amendment or waiver.  

(g)

Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile (provided the sender receives a machine-generated confirmation of successful transmission) at the facsimile number specified in this Section or (ii) electronic mail (i.e., Email) prior to 6:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section or (ii) electronic mail (i.e., Email)on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as follows:

If to the Company:

Golden Elephant Glass Technology, Inc.  

123 Chuangue Road

Fuxin City, Liaoning

Peoples Republic of China

Facsimile:  

Attn.:  President

With a copy to:

Thelen Reid Brown Raysman & Steiner LLP

701 8th Street NW

Washington, D.C. 20001

Facsimile:  (202) 508-4321

Attn.:  Joseph R. Tiano, Jr., Esq.

If to an Investor:  

To the address set forth under such Investor's name on the signature pages hereto.

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

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

 

or such other address as may be designated in writing hereafter, in the same manner, by such Person.

(h)

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

(i)

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

(j)

Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.  Each party agrees that all Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, employees or agents) will be commenced in the New York Courts.  Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum.  Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any Proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.  If either party shall commence a Proceeding to enforce any provisions of this Agreement, then the prevailing party in such Proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding.

(k)

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

	
    16

	 

(l)

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

(m)

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

(n)

Independent Nature of Investors' Obligations and Rights.  The obligations of each Investor under this Agreement are several and not joint with the obligations of each other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under this Agreement.  Nothing contained herein or in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement or any other Transaction Document.  Each Investor acknowledges that no other Investor will be acting as agent of such Investor in enforcing its rights under this Agreement.  Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in any Proceeding for such purpose.  The Company acknowledges that each of the Investors has been provided with the same Registration Rights Agreement for the purpose of closing a transaction with multiple Investors and not because it was required or requested to do so by any Investor.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES TO FOLLOW]

 

	
    17

	 

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

GOLDEN ELEPHANT GLASS TECHNOLOGY, INC.  

By:_________________________________

 

Name:

Title:

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES OF INVESTORS TO FOLLOW]

	
    18

	 

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

  	NAME OF INVESTING ENTITY
	 
	_____________________________________
	 
	By:
      __________________________________
	     
      Name:
	     
      Title:
	 
	ADDRESS FOR NOTICE
	 
	c/o:
      __________________________________
	 
	Street:
      ________________________________
	 
	City/State/Zip:
      __________________________
	 
	Attention:
      _____________________________
	 
	Tel:
      __________________________________
	 
	Fax:
      __________________________________
	 
	Email:
      ________________________________

	
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Annex A

Plan of Distribution

The Selling Stockholders and any of their pledgees, donees, transferees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of Common Stock on any stock exchange, market or trading facility on which the shares are traded or quoted or in private transactions.  These sales may be at fixed or negotiated prices.  The Selling Stockholders may use any one or more of the following methods when selling shares:

•

ordinary brokerage transactions and transactions in which the broker-dealer solicits Investors;

•

block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

•

purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

•

an exchange distribution in accordance with the rules of the applicable exchange;

•

privately negotiated transactions;

•

to cover short sales made after the date that this Registration Statement is declared effective by the Commission; 

•

broker-dealers may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share;

•

a combination of any such methods of sale; and

•

any other method permitted pursuant to applicable law.

The Selling Stockholders may also sell shares under Rule 144 under the Securities Act, if available, rather than under this prospectus.

Broker-dealers engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales.  Broker-dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated.  The Selling Stockholders do not expect these commissions and discounts to exceed what is customary in the types of transactions involved.

The Selling Stockholders may from time to time pledge or grant a security interest in some or all of the Shares owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell shares of Common Stock from time to time under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933 amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus.

	
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Upon the Company being notified in writing by a Selling Stockholder that any material arrangement has been entered into with a broker-dealer for the sale of Common Stock through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer, a supplement to this prospectus will be filed, if required, pursuant to Rule 424(b) under the Securities Act, disclosing (i) the name of each such Selling Stockholder and of the participating broker-dealer(s), (ii) the number of shares involved, (iii) the price at which such the shares of Common Stock were sold, (iv)the commissions paid or discounts or concessions allowed to such broker-dealer(s), where applicable, (v) that such broker-dealer(s) did not conduct any investigation to verify the information set out or incorporated by reference in this prospectus, and (vi) other facts material to the transaction.  In addition, upon the Company being notified in writing by a Selling Stockholder that a donee or pledgee intends to sell more than 500 shares of Common Stock, a supplement to this prospectus will be filed if then required in accordance with applicable securities law.

The Selling Stockholders also may transfer the shares of Common Stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

The Selling Stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales.  In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.  Discounts, concessions, commissions and similar selling expenses, if any, that can be attributed to the sale of Securities will be paid by the Selling Stockholder and/or the purchasers.  Each Selling Stockholder has represented and warranted to the Company that it acquired the securities subject to this Registration Statement in the ordinary course of such Selling Stockholder’s business and, at the time of its purchase of such securities such Selling Stockholder had no agreements or understandings, directly or indirectly, with any person to distribute any such securities.  

Roth Capital Partners, LLC is a registered broker dealer and FINRA member firm and listed as a selling shareholder in this prospectus.  Roth Capital Partners, LLC served as placement agent for our private placement offering which was completed on ______________, and received, in addition to cash commissions and reimbursement of certain out-of-pocket expenses and counsel fees, warrants to purchase ____________ shares of our Common Stock with an exercise price of $_____ per share.  The registration statement of which this prospectus forms a part includes the shares of Common Stock underlying the warrants held by Roth Capital Partners, LLC.  

 

The warrants held by Roth Capital Partners, LLC expire on ___________________.  The _________ shares of Common Stock issuable upon conversion of placement agent warrants received by Roth Capital Partners, LLC are restricted from sale, transfer, assignment, pledge or hypothecation or from being the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the securities by any person for a period of 180 days immediately following the effective date of the registration statement of which this prospectus forms a part, except transfers of the warrants to officers or partners of Roth Capital Partners, LLC as allowed under NASD Rule 2710 (g)(1) and (2).

 

	
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Roth Capital Partners, LLC has indicated to us its willingness to act as selling agent on behalf of certain of the selling shareholders named in the prospectus under the section titled "Selling Security Holders" that purchased our privately placed securities.  All shares sold, if any, on behalf of selling shareholders by Roth Capital Partners, LLC would be in transactions executed by Roth Capital Partners, LLC on an agency basis and commissions charged to its customers in connection with each transaction shall not exceed a maximum of 5% of the gross proceeds.  Roth Capital Partners, LLC does not have an underwriting agreement with us and/or the selling shareholders and no selling shareholders are required to execute transactions through Roth Capital Partners, LLC.  Further, other than any existing brokerage relationship as customers with Roth Capital Partners, LLC, no selling shareholder has any pre-arranged agreement, written or otherwise, with Roth Capital Partners, LLC to sell their securities through Roth Capital Partners, LLC.

 

NASD Rule 2710 requires FINRA members firms (unless an exemption applies) to satisfy the filing requirements of Rule 2710 in connection with the resale, on behalf of selling shareholders, of the securities on a principal or agency basis. NASD Notice to Members 88-101 states that in the event a selling shareholder intends to sell any of the shares registered for resale in this prospectus through a member of the FINRA participating in a distribution of our securities, such member is responsible for insuring that a timely filing, if required, is first made with the Corporate Finance Department of FINRA and disclosing to FINRA the following:

 

•

it intends to take possession of the registered securities or to facilitate the transfer of such certificates;

 

•

the complete details of how the selling shareholders' shares are and will be held, including location of the particular accounts;

 

•

whether the member firm or any direct or indirect affiliates thereof have entered into, will facilitate or otherwise participate in any type of payment transaction with the selling shareholders, including details regarding any such transactions; and

 

•

in the event any of the securities offered by the selling shareholders are sold, transferred, assigned or hypothecated by any selling shareholder in a transaction that directly or indirectly involves a member firm of the NASD or any affiliates thereof, that prior to or at the time of said transaction the member firm will timely file all relevant documents with respect to such transaction(s) with the Corporate Finance Department of the NASD for review.

 

No FINRA member firm may receive compensation in excess of that allowable under FINRA rules, including Rule 2710, in connection with the resale of the securities by the selling shareholders, which total compensation may not exceed 8%.

The Company has advised each Selling Stockholder that it is the view of the Commission that it may not use shares registered on this Registration Statement to cover short sales of Common Stock made prior to the date on which this Registration Statement shall have been declared effective by the Commission.  If a Selling Stockholder uses this prospectus for any sale of the Common Stock, it will be subject to the prospectus delivery requirements of the Securities Act.  The Selling Stockholders will be responsible to comply with the applicable provisions of the Securities Act and Exchange Act, and the rules and regulations thereunder promulgated, including, without limitation, Regulation M, as applicable to such Selling Stockholders in connection with resales of their respective shares under this Registration Statement.

	
    22

	 

The Company is required to pay all fees and expenses incident to the registration of the shares, but the Company will not receive any proceeds from the sale of the Common Stock.  The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
 

  

 

 

	
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