Document:

ICP Solar Technologies, Inc. - Exhibit 10.1 - Prepared By TNT Filings
Inc.

  
 

AMENDMENT AGREEMENT

 

This Amendment Agreement (the “Agreement”), dated as of
December 31, 2008, is by and among ICP Solar Technologies, Inc., a Nevada
corporation (the “Company”) and the investors signatory hereto (each, a “Buyer”
and collectively, the “Buyers”).

 

WHEREAS, on or about June 13, 2008, the
Company and the Buyers entered into a Securities Purchase Agreement (the 
“SPA”);

 

WHEREAS,  pursuant to the SPA each
Buyer purchased the aggregate principal amount of the Company’s 11% Senior
Secured Convertible Debenture Due June 13, 2010 (the “Debentures”) and
associated “A” Warrants, “B” Warrants and “C” Warrants (collectively the “Warrants”)
as set forth in the Schedule of Buyers to the SPA.  

 

WHEREAS, the parties hereto wish to
amend certain terms of the Transaction Documents, as defined in the SPA.

 

NOW, THEREFORE, IN CONSIDERATION of the
mutual covenants contained in this Agreement, and for good and valuable
consideration the receipt and adequacy of which are hereby acknowledged, the
Buyers and the Company agree as follows:

 

 

ARTICLE I

DEFINITIONS

 

  Capitalized terms not defined in this Agreement shall have the
meanings ascribed to such terms in the SPA.

 

ARTICLE II

AMENDMENTS AND OTHER AGREEMENTS

 

Section 2.1 Amendment of the
Debentures 

 

The Debentures are amended and restated in the form attached
hereto as Exhibit A.   The Company and the Buyers expressly agree and
acknowledge that in consideration for the terms of this Agreement, the principal
balance of the amended and restated Debenture constitutes 115% of the sum of (i)
the principal amount of the Debentures that was outstanding immediately prior to
the date of this Agreement plus (ii) all accrued and unpaid interest through
December 31, 2008.  The Company and the Buyers agree and acknowledge that,
immediately following the execution of this Agreement, the outstanding principal
amount of each Buyer’s Debenture will be as set forth below:

 
1

 

	

Name of Buyer

	
  
  Outstanding Principal Amount of Buyer’s Debenture Immediately
  Following the Execution of this Agreement

	
   

BridgePointe Master Fund Ltd.

	
   

$1,476,844.18

	
   

Platinum Long Term Growth VI, LLC

	
   

$984,562.79

	
   

Gemini Master Fund, Ltd.

	
   

$492,281.40

 

 

Section 2.2

 Amendment to the Exercise Price of the Warrants

 

The Warrants are amended as follows:  The amended and restated
Warrants shall be in the form attached hereto as Composite Exhibit B.   

 

(a)  

The first sentence of Section 3 of the Series A Warrants is
hereby deleted and replaced with the following:

“The Exercise Price (“Exercise
Price”) shall initially equal $0.50 
per share (the “Initial Exercise Price”),
provided that as of December 31, 2008, the Exercise Price shall be reduced, but
not increased, to $0.25 per share, all subject to adjustment pursuant to the
terms hereof, including but not limited to Section 5 below.”  

(b)  

The first sentence of Section 3 of the Series B Warrants is
hereby deleted and replaced with the following:

“The Exercise Price (“Exercise
Price”) shall initially equal $1.00 
per share (the “Initial Exercise Price”),
provided that as of December 31, 2008, the Exercise Price shall be reduced, but
not increased, to $0.25 per share, all subject to adjustment pursuant to the
terms hereof, including but not limited to Section 5 below.”  

(c)  

The first sentence of Section 3 of the Series C Warrants is
hereby deleted and replaced with the following:

“The Exercise Price (“Exercise
Price”) shall initially equal $1.00 
per share (the “Initial Exercise Price”),
provided that as of December 31, 2008, the Exercise Price shall be reduced, but
not increased, to $0.50 per share, all subject to adjustment pursuant to the
terms hereof, including but not limited to Section 5 below.”

(d)

The Buyers hereby waive any “Milestone Adjustments” (as defined
in the Warrants) that were required under the terms of the Warrants prior to
December 31, 2008, provided that it is agreed and understood that nothing herein
shall prevent any downward adjustment of the Exercise Price of any of the
Warrants in accordance with their terms, including but not limited to “Milestone
Adjustments” as defined in the Warrants, occurring after December 31, 2008.

 

2

(e)

The Company and the Buyers each agree and acknowledge that the
reduction of the Exercise Price of the Series A Warrant to $0.25 per share on
December 31, 2008 will result in an adjustment to the number of Warrant Shares
as described in the Series A Warrant, including but not limited to Section 5(k)
thereof.  The Company and the Buyers agree and acknowledge that, immediately
following the reduction of the Exercise Price of the Series A Warrants to $0.25
on December 31, 2008, the number of outstanding Series A Warrants of each Buyer
will be as set forth below (unless such number is
already greater than the number set forth below by virtue of a prior
adjustment):

 

	
  
   

Name of Buyer

	
  
  Number of Series A Warrants Held by Buyer Immediately Following
  the Execution of this Agreement

	
  
   

BridgePointe Master Fund Ltd.

	
  
   

6,666,668

	
  
   

Platinum Long Term Growth VI, LLC

	
  
   

4,444,444

	
  
   

Gemini Master Fund, Ltd.

	
  
   

2,222,220

Notwithstanding the above, if the Exercise Price of the Series A
Warrants is adjusted to a price lower than $0.25 under its terms, then the
number of Series A Warrants shall be further increased accordingly.   

(f)

The Company and the Buyers each agree and acknowledge that the
reduction of the Exercise Price of the Series B Warrant to $0.25 per share on
December 31, 2008, will result in an adjustment to the number of Warrant Shares
as described in the Series B Warrant, including but not limited to Section 5(k)
thereof.  The Company and the Buyers agree and acknowledge that, immediately
following the reduction of the Exercise Price of the Series B Warrants to $0.25
on December 31, 2008, the number of outstanding Series B Warrants of each Buyer
will be as set forth below (unless such number is already greater than the
number set forth below by virtue of a prior adjustment):

 

	

Name of Buyer

	
  
  Number of Series B Warrants Held by Buyer Immediately Following
  the Execution of this Agreement

	
  
   

BridgePointe Master Fund Ltd.

	
  
   

13,333,336

	
  
   

Platinum Long Term Growth VI, LLC

	
  
   

8,888,888

	
  
   

Gemini Master Fund, Ltd.,

	
  
   

4,444,440

 

3

 

Notwithstanding the above, if the Exercise Price of the Series B
Warrants is adjusted to a price lower than $0.25 under its terms, then the
number of Series B Warrants shall be further increased accordingly.

(g)

The Company and the Buyers each agree and acknowledge that the
reduction of the Exercise Price of the Series C Warrant to $0.50 per share on
December 31, 2008 will result in an adjustment to the number of Warrant Shares
as described in the Series C Warrant, including but not limited to Section 5(k)
thereof.  The Company and the Buyers agree and acknowledge that, immediately
following the reduction of the Exercise Price of the Series C Warrants to $0.50
on December 31, 2008, the number of outstanding Series C Warrants of each Buyer
will be as set forth below (unless such number is already greater than the
number set forth below by virtue of a prior adjustment):

 

	

 

Name of Buyer

	
  
  Number of Series C Warrants Held by Buyer Immediately Following
  the Execution of this Agreement

	
  
   

BridgePointe Master Fund Ltd.

	
  
   

6,666,668

	
  
   

Platinum Long Term Growth VI, LLC

	
  
   

4,444,444

	
  
   

Gemini Master Fund, Ltd.,

	
  
   

2,222,220

Notwithstanding the above, if the Exercise Price of the Series C
Warrants is adjusted to a price lower than $0.50 under its terms, then the
number of Series C Warrants shall be further increased accordingly.

(h) Within five (5) Business Days of any increase of the number
of Warrants held by the Buyer, including but not limited to an increase
occurring as a result of a price adjustment on December 31, 2008, the Company
shall issue to Buyer additional warrant certificates  representing such
increased number of Warrants, it being understood that the Warrants represented
by such additional warrant certificates shall be deemed issued and paid for on
June 13, 2008 for all purposes, including but not limited to Rule 144 under the
Securities Act .

 

Section 2.3

  Amended and
Restated Registration Rights Agreement

 

The Registration Rights Agreement delivered pursuant to, and as
defined in, the SPA, is amended and restated in the form attached hereto as 
Exhibit C.   

 

Section 2.4

Securities Purchase Agreement

 

(a) The following is hereby considered to be added as item (e) in
the definition of “Exempt Issuance” in Section 1(a) of the SPA:

(e) any Common Stock, up to a maximum aggregate amount of
3,000,000 shares,  issued or issuable in lieu of payment for monies or fees
owing as a result to an existing obligation or of a renegotiation of an existing
obligation to pay such monies or fees owing.”  

 

4

(b)  

The following is hereby added immediately following Section 4(r)
of the SPA:

 

“(s)     EPOD Note Payments.  The Company acknowledges and
represents that, pursuant to the debenture (together with any accompanying
promissory notes or other agreements related to such debt, collectively referred
to as the “EPOD Note”) issued pursuant to the Second Amendment to the Share
Purchase Agreement, which Share Purchase Agreement is dated May 9, 2007, by and
between the Company and EPD Solar, Inc., a corporation organized under the laws
of British Columbia, Canada (“EPOD”)(which agreement was assumed from ISE LLC),
EPOD owes at least $2,241,200 to the Company, $1,060,600 of which is required to
be paid to the Company by EPOD in cash, in monthly payments of  $40,000 (the
“EPOD Monthly Payments”) commencing on April 18, 2008 until the balance is paid
in full.  The Company agrees, concurrently with the execution of this Agreement,
to deliver to Roswell Capital Partners, LLC, as collateral agent for the Buyers
(the “Collateral Agent”) the original of the EPOD Note and a bond power (the
“Bond Power”)(executed and medallion guaranteed, as necessary, in the manner
required to effect assignment of the EPOD Note under applicable law) whereby the
Company assigns all of its right, title and interest in the EPOD Note to the
Collateral Agent for the pro rata benefit of the Buyers .  In the event that a
non-assignment clause in the EPOD Note prohibits such assignment, then the
Company shall use its best efforts to have EPOD waive such prohibitions and
allow such assignment.  If, after the Company’s best efforts, the Company cannot
effect the assignment of the EPOD Note by January 9, 2009 because EPOD still
refuses to waive any prohibitions, then the Company shall nevertheless promptly
thereafter but in any event not later than January 15, 2009, send the original
EPOD Note and a Bond Power to the Collateral Agent to hold as security, in order
to perfect the Buyers’ security interest in the EPOD Note.

Following the completion of the assignment of all of the
Company’s right, title and interest in the EPOD Note to the Collateral Agent for
the pro rata benefit of the Buyers, the principal amount of each Buyer’s
Debenture shall be reduced by an amount equal to such Buyer’s Pro Rata Portion
of any amounts paid by EPOD to the Collateral Agent and subsequently paid to the
Buyers in an amount equal to their Pro Rata Portion of the EPOD Note.  For
purposes hereof, Pro Rata Portion shall have the meaning set forth in the table
below for each of the respective Buyers:

 

5

 

	

Name of Buyer

	

Pro Rata Portion

	
  
   

BridgePointe Master Fund Ltd.

	
  
   

1/2

	
  
   

Platinum Long Term Growth VI, LLC

	
  
   

1/3

	
  
   

Gemini Master Fund, Ltd.

	
  
   

1/6

 

In the event that the Company pays off the balance of all of the
Debentures in full, and any portion of the EPOD Note remains outstanding, the
Collateral Agent shall assign the remainder of the EPOD Note back to the
Company.

 

In the event that, notwithstanding the Company’s best efforts,
the Company has not been able to effect the assignment of its right, title and
interest in the EPOD Note to the Collateral Agent for the pro rata benefit of
the Buyers by January 15, 2009, then the Company shall, to the fullest extent
allowed under the terms of the EPOD Note, within thirty days of a written
request given by the Collateral Agent anytime thereafter that EPOD has not made
all  payments due under the terms of the EPOD Note, either (i) commence an
action in an appropriate state or federal court to collect all amounts past due
on the EPOD Note and use its best efforts to pursue such action through judgment
and collection, or (ii) execute an assignment of claims, whereby the Company
assigns to the Collateral Agent for the benefit of the Buyers its rights to
pursue a collection action against EPOD on the EPOD Note.  

 

(t)

   Lockbox Account.  

(i)

Lockbox Account.   By no later than
January 15, 2009, the Company shall enter into a standard Lockbox Agreement (as
defined below), in a form acceptable to the Buyers, with the Buyers and with a
reputable national bank. For purposes hereof,  
“Lockbox Agreement” shall mean an agreement between the Company, the
Buyers and a reputable national bank, whereby the bank (the “Lockbox
Agent”) agrees to receive payments directly from the Company’s
customers and payors, including but not limited to EPOD, agrees to process such
remittances and to deposit them directly into a specified account (the 
“Lockbox Account”) and agrees to sweep the
deposited funds into a Sweep Account, as described in subsection (iv) below.

(ii)

Lockbox Invoices to Customers.  The
Company agrees to deliver  instructions (each,  
“Lockbox Payment Instructions”) by not later than January 15, 2009,
to each of the Company’s existing customers requiring each customer to remit all
payments made to the Company on or after February 1, 2009 through and including
all payments made, or due to be made, to the Company for so long as any
Debentures remain outstanding, directly to the Lockbox Account and to deliver
such Lockbox Payment Instructions to EPOD requiring EPOD to make all future EPOD
Monthly Payments on the EPOD Note directly to the Lockbox Account (until such
time, if any, as the assignment of the EPOD Note to the Buyers has been
completed).  Furthermore, the Company agrees to send Lockbox Payment
Instructions to each future customer within five (5) Business Days of the
Company’s first contract or purchase order with the customer. Upon shipment of
product to a customer, the Company shall provide the customer with an invoice
requiring that payments on the receivables be remitted directly to the Lockbox
Account (each, a “Lockbox Invoice”).
The Company shall promptly provide each of the Buyers with a copy of each
Lockbox Payment Instruction and each Lockbox Invoice, together with evidence
that each has been delivered to the applicable customer, by not later than five
(5) Business Days of the date that such instructions are required to be
delivered to the applicable customer.  The parties agree and acknowledge that a
failure by the Company to timely provide Lockbox Payment Instructions and
Lockbox Invoices to any customer as required above, or a failure to provide the
Buyers with a copy of each Lockbox Payment Instruction and Lockbox invoice as
required above, shall constitute an Event of Default under the Debentures.

 

 

6

 

(iii)  Return of Misdelivered Funds to the Lockbox Account.
 In the event that, anytime on or after January 1, 2009, the Company shall
receive any payment from a customer or shall receive any payment from EPOD
(each, a  “Misdelivered Payment” and
collectively, “Misdelivered Payments”),
the Company shall hold such Misdelivered Payments in trust for the Buyers and
shall promptly, but in any event within two (2) business days of the date that
the Company received such funds, forward such Payments to the Lockbox Account
for processing.  The parties agree and acknowledge that a failure by the Company
to timely forward Misdelivered Payments to the Lockbox Account shall constitute
an Event of Default under the Debentures, shall constitute a breach of fiduciary
duties  and shall constitute an act of civil theft.

 

(iv)

          
Sweep of Funds from Lockbox.
 Simultaneously with the execution of the Lockbox Agreement, the Company shall
provide irrevocable instructions to the Lockbox Agent to sweep, on each Sweep
Date (as defined below) an amount of funds equal to the Sweep Amount (as defined
below) out of the Lockbox Account into a separate account (the  
“Sweep Account”)
controlled by the Collateral Agent (as defined in the Security Agreement).  The
parties  agree that the funds received into the Sweep Account shall be disbursed
to the Buyers (pro rata to each Buyer, based upon the principal amount of each
Buyer’s Debenture as of the date hereof) within two (2) business days of each
date that  funds are received into the Lockbox Account (each, a “Sweep Date”),
and such funds shall be applied first toward interest due on the Debentures,
next toward reduction of any due and unpaid Monthly Redemption Amounts (as
defined in the Debentures), next toward reduction of the principal amount of the
Debentures, until paid in full, and any remaining amounts shall be disbursed to
the Company.   For purposes
hereof, up through May 31, 2009, the “Sweep Amount” as of any Sweep Date shall
mean the difference of (x) 10% of all funds received into the Lockbox Account
from its inception up through a given Sweep Date, either directly or indirectly
from the company’s customers, plus 100% of all payments received into the
Lockbox Account from its inception up through a given Sweep Date, either
directly or indirectly from EPOD, minus (y) all amounts that have been swept out
of the Lockbox Account into the Sweep Account from the inception of the Lockbox
Account through the Sweep Date in question (collectively, the “Pre-May 31 Sweep
Amount”), and after May 31, 2009, the “Sweep Amount” as of any Sweep Date shall
mean the greater of (x) the aggregate amount of any Monthly Redemption Amounts
(as defined in the Debentures) that are then due and unpaid to any Buyers plus
the aggregate amount of any Interest (as defined in the Debentures) that is then
due and unpaid to any Buyers (collectively, the “Due Payment Amount”), and (y)
the Pre-May 31 Sweep amount as determined on the Sweep Date in question,
provided that in no event shall a Sweep Amount determined for a Sweep Date after
May 31, 2009 exceed the Due Payment Amount.

 

7

 

(c)  The portion of Section 9(b) of the SPA which currently reads
as follows:

 

With Copy to:

 

Andrew J. Merken, Esq.

Burns & Levinson LLP

125 Summer Street

Boston, Ma. 02110

Telephone:  617-345-3740  

Fax:  617-345-3299  

 

Is hereby amended and replaced with the following:

 

With Copy to:

 

Josef B. Volman, Esq.

Burns & Levinson LLP

125 Summer Street

Boston, Ma. 02110

Telephone:  617-345-3895

Fax:  617-345-3299  

 

Section 2.5

Amended and Restated Security Agreement.

 

The Security Agreement delivered pursuant to, and as defined in,
the SPA, is hereby amended and restated in the form attached hereto as 
Exhibit D.   

 

Section 2.6

Other Agreements.

 

(a) The Company agrees that it has at least 100,000,000
shares of common stock authorized, at least 35,000,000 of which are
currently reserved for issuance upon conversion of the Debentures and upon
exercise of the Warrants.  Promptly following the date
hereof (but in any event by not later than May 1, 2009), the Company will take
all corporate action necessary to authorize and reserve an additional number of
shares, including, without limitation, calling a special meeting of stockholders
to authorize additional shares obtaining stockholder approval of an increase in
such authorized number of shares, such that the number
of shares of Common Stock that are authorized and reserved for issuance upon the
conversion of the Debentures and upon the exercise of the Warrants is at least 
150,000,000 shares, which shares shall be reserved pro rata for each Buyer
based upon the Pro Rata Portion, as defined in Section 2.4(b) of this amendment
Agreement .

 

8

 

(b)  The Company shall deliver the original EPOD Note to the
Collateral Agent (as defined in the Security Agreement), along with any
necessary assignment documents, for the Collateral Agent to hold on behalf of
the Buyers as security for the debt owed under the Debentures.

 

(c) The Company and the Buyers agree that, for purposes of Rule
144(f), it is intended, understood and acknowledged that the Common Stock
issuable upon conversion of the Debenture, and upon an exercise of the Warrants
in a cashless exercise transaction, shall be deemed to have been acquired at the
time that the Debenture and the respective Warrants were originally issued,
notwithstanding the amendments to the Debentures and the Warrants described
herein.  Moreover, it is intended, understood and acknowledged that the holding
period for the Common Stock issuable upon exercise of the Debenture shall be
deemed to have commenced on the date the Debenture was originally issued and the
holding period for the Common Stock issuable upon exercise of the Warrants,
including but not limited to any Warrants evidenced by additional warrant
certificates issued to represent additional warrant shares pursuant to Section
2.2 hereof, in a cashless exercise transaction shall be deemed to have commenced
on the date that the Warrants were originally issued, notwithstanding the
amendments to the Debentures and the Warrants described herein.

 

(d)   For so long as any of the Debentures remain outstanding,
the Company shall not issue any Common Stock Equivalents to the extent that,
immediately following such issuance, the fully diluted number of shares that
would be issuable upon the full conversion of all of the Buyers’ outstanding
Debentures and the full exercise of all of the Buyers’ outstanding Warrants (in
each case, without regard to any applicable contractual restrictions on
conversion or exercise), in the aggregate, would be less than X% of the fully
diluted shares of the Company immediately following such issuance, where “X%”
shall equal 60% from the date hereof until December 15, 2010, shall equal 30%
from December 16, 2010 until December 15, 2011, and shall equal 0% thereafter.
 

 

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.1    Representations
and Warranties of the Company

 

 The Company hereby represents and warrants to the Buyers that
as of the date of its execution of this Agreement:

 

9

 

(a) Authorization; Enforcement

 

  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by this
Agreement, and the amendments to the Transaction Documents (as defined in the
Securities Purchase Agreement) described herein, and otherwise to carry out its
obligations hereunder and thereunder.  The execution and delivery of this
Agreement and the amendments to the Transaction Documents (as defined in the
Securities Purchase Agreement) described herein, by the Company and the
consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of such Company and no further
action is required by such Company, its board of directors or its stockholders
in connection therewith.  This Agreement has been duly executed by the Company
and, when delivered in accordance with the terms hereof will constitute the
valid and binding obligation of the Company enforceable against the Company in
accordance with its terms except (i) as limited by general equitable principles
and applicable bankruptcy, insolvency, reorganization, moratorium and other laws
of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

 

(b) No Conflicts

 

  The execution, delivery and performance of this Agreement and
the amendments to the other Transaction Documents (as defined in the Securities
Purchase Agreement) by the Company and the consummation by the Company of the
transactions contemplated hereby do not and will not: (i) conflict with or
violate any provision of the Company’s certificate or articles of incorporation,
bylaws or other organizational or charter documents, or (ii) conflict with, or
constitute a default (or an event that with notice or lapse of time or both
would become a default) under, result in the creation of any lien upon any of
the properties or assets of the Company, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice,
lapse of time or both) of, any material agreement, credit facility, debt or
other material instrument (evidencing Company debt or otherwise) or other
material understanding to which the Company is a party or by which any property
or asset of the Company is bound or affected, or (iii) conflict with or result
in a violation of any law, rule, regulation, order, judgment, injunction, decree
or other restriction of any court or governmental authority to which the Company
is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company is bound or affected.

 

 

(c) Authorization and Reservation Requirements. The
Company represents that it has at least 100,000,000 authorized shares of
Common Stock and that it has reserved (pro rata as to each Buyer, based upon the
initial principal amount of its Debenture) from its authorized and unissued
Common Stock at least 35,000,000 shares of Common Stock, free from
preemptive rights, to provide for the issuance of Common Stock upon the
conversion of the Debentures and to provide for the issuance of Common Stock
upon the exercise of the Warrants (as defined in the SPA).

 

10

 

(d) Other Representations, Warranties
and Covenants

 

The Company hereby represents and warrants to each Buyer that the
Company’s representations and warranties set forth in the SPA are true and
correct as of the date hereof in all material respects.

 

(e)   Perfection of Liens on Patents.  The Company hereby
represents and warrants to each Buyer that the Company has made all necessary
filings in all appropriate jurisdictions to fully perfect the Buyers’ security
interests in all of the United States patents and patents pending owned by the
Company or any of its subsidiaries, as reflected in the Notices of Recordation
with the United States Patent and Trademark Office, dated June 23, 2008 and June
24, 2008, respectively, each of which is attached hereto as Composite Exhibit
E.

 

(f)     Capitalization Table and Debt Table.  The Company
hereby represents and warrants to each Buyer that the Company’s capitalization
as of the date hereof is as described in the capitalization table attached
hereto as Schedule 3.1(f-1) and that all of the Company’s outstanding
indebtedness is accurately described in the table of indebtedness attached
hereto as Schedule 3.1(f-2).

 

Section 3.2    Representations
and Warranties of the Buyers

 

  The Buyer hereby makes the representations and warranties set
forth below to the Company that as of the date of its execution of this
Agreement:

 

(a) Due Authorization. Such Buyer represents and warrants
that (i) the execution and delivery of this Agreement by it and the consummation
by it of the transactions contemplated hereby have been duly authorized by all
necessary action on its behalf and (ii) this Agreement has been duly executed
and delivered by such Buyer and constitutes the valid and binding obligation of
such Buyer, enforceable against it in accordance with its terms, except (i) as
limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

 

11

 

ARTICLE IV

MISCELLANEOUS

 

Section 4.1    Notices  

 

Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be made in accordance with
the provisions of the SPA.

 

Section 4.2    Survival

 

 All warranties and representations (as of the date such
warranties and representations were made) made herein or in any certificate or
other instrument delivered by it or on its behalf under this Agreement shall be
considered to have been relied upon by the parties hereto and shall survive the
transactions contemplated hereby. This Agreement shall inure to the benefit of
and be binding upon the successors and permitted assigns of each of the parties;
provided however that no party may assign this Agreement or the obligations and
rights of such party hereunder without the prior written consent of the other
parties hereto.

 

Section 4.3    Counterparts;
Signatures By Facsimile

 

 This Agreement may be executed in one or more counterparts, all
of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party. This Agreement, once executed by a party, may be delivered to the
other party hereto by facsimile transmission of a copy of this Agreement bearing
the signature of the party so delivering this Agreement.

 

Section 4.4

                        
Severability

 

 If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement or the
validity or enforceability of this Agreement in any other jurisdiction. 

 

 

Section 4.5

                         Filing of Form 8-K  

 

Within 4 Trading Days of the date hereof, the Company shall issue
a Current Report on Form 8-K, reasonably acceptable to each Buyer disclosing the
material terms of the transactions contemplated hereby, which shall include this
Agreement, and the schedules hereto, as an attachment thereto.  Each Buyer
undertakes to provide approval or final comments within two (2) business days of
being presented with a draft of the Company’s current report on Form 8-K.

 

Section 4.6   Entire Agreement  

 

The Agreement, together with the exhibits and schedules thereto,
contain the entire understanding of the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been
merged into such documents, exhibits and schedules.

 

12

 

Section 4.7   Construction

 

 The headings herein are for convenience only, do not constitute
a part of this Agreement and shall not be deemed to limit or affect any of the
provisions hereof.  The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party.

 

Section 4.8    Independent
Nature of Buyers’ Obligations and Rights

 

 The obligations of each Buyer hereunder are several and not
joint with the obligations of any other Buyers hereunder, and no Buyer shall be
responsible in any way for the performance of the obligations of any other Buyer
hereunder. Nothing contained herein or in any other agreement or document
delivered at any closing, and no action taken by any Buyer pursuant hereto,
shall be deemed to constitute the Buyers as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the
Buyers are in any way acting in concert with respect to such obligations or the
transactions contemplated by this Agreement. Each Buyer shall be entitled to
protect and enforce its rights, including without limitation the rights arising
out of this Agreement, and it shall not be necessary for any other Buyer to be
joined as an additional party in any proceeding for such purpose.

   

Section 4.9

                          Further Assurances  

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

Section 4.10     

                           No Strict Construction  

The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party.

Section 4.11    Effect
on the SPA 

The foregoing consents and waivers are given solely in respect of
the transactions described herein. Except as expressly set forth herein, all of
the other terms and conditions of the Transaction Documents shall continue in
full force and effect after the execution of this Agreement, and shall not be in
any way changed, modified or superseded by the terms set forth herein. 

 

13

Section 4.12

Governing Law

 

 All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be determined pursuant to
the Governing Law provision of the SPA.

 

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

 

ICP SOLAR TECHNOLOGIES, INC.,

 

 

 By:

_______________________________

 

Name:

 

Title:

 

 

[BUYER SIGNATURE PAGES COMMENCE ON THE NEXT PAGE]

 

 
14

 
BUYER SIGNATURE PAGES

TO

 ICP SOLAR TECHNOLOGIES, INC., 
AMENDMENT  AGREEMENT

 DATED DECEMBER 31 2008

 

 

IN WITNESS WHEREOF, the undersigned
have caused this Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

Name of Buyer:
________________________________________________________________

 

Signature of Authorized Signatory of Buyer:
__________________________________________

 

Name of Authorized Signatory:
____________________________________________________

 

Title of Authorized Signatory:
_____________________________________________________

 

Email Address of Buyer:
_________________________________________________________

 

Address for Notice of Buyer:

 

 
15ICP Solar Technologies, Inc. - Exhibit 10.2 - Prepared By TNT Filings
Inc.

  

 
Amended and Restated

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this "Agreement"), dated as of June 13, 2008, by and between ICP Solar Technologies, Inc., a Nevada corporation (the "Company"), and each buyer identified on the Schedule of Buyers attached hereto (collectively, the “BUYERS” and each individually, the “BUYER”).  This amended and restated Agreement is dated as of December 31, 2008 and amends and restates the Registration Rights Agreement originally dated as of June 13, 2008.

WHEREAS:

A.  In connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the "Securities Purchase Agreement"), the Company has agreed, upon the terms and subject to the conditions contained therein, to issue and sell to the Buyer the following (as each capitalized term not otherwise defined herein shall have the meaning ascribed to it in the Securities Purchase Agreement):

(i) Convertible debentures of the Company (the “Debentures”) issued pursuant to the Securities Purchase Agreement, and

(ii) Warrants in the amount described in the Securities Purchase Agreement,

where the Debenture is convertible into shares of the Company's common stock, par value $0.00001 per share (the "Common Stock"), upon the terms and subject to the limitations and conditions set forth in the Debenture and where each of the Warrants is exercisable into shares of the Company's Common Stock, each upon the terms and conditions and subject to the limitations and conditions set forth in the Warrants, all subject to the terms and conditions of the Securities Purchase Agreement; and

B.  To induce the Buyer to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the "1933 Act"), and applicable state securities laws;

NOW, THEREFORE, In consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Buyer hereby agree as follows:

1.  DEFINITIONS.

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

“Additional Registration Statement”  
shall have the meaning ascribed to it in Section 3(b) below.

1

 

“Additional Registration Effectiveness Deadline”  
shall have the meaning ascribed to it in Section 3(b) below.

“Additional Registration Filing Deadline” shall have the meaning ascribed to it in Section 3(b) below.

"Buyer" means the purchaser of Debentures and Warrants pursuant to the Securities Purchase Agreement specified on the signature page hereof, and any transferee or assignee who agrees to become bound by the provisions of this Agreement in accordance with Section 10 hereof.

"Cutback Shares" means any of the Target Registration Amount of Registrable Securities not included in any of the Registration Statements previously declared effective hereunder as a result of a limitation on the maximum number of shares of Common Stock of the Company permitted to be registered by the staff of the SEC pursuant to Rule 415.

“Effective Date” shall mean the date that the initial Registration Statement is first declared effective by the Commission.

"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 (2nd) anniversary of such Effective Date (provided that, if the Registrable Securities are not eligible for resale under Rule 144 as of such second (2nd) anniversary, such period shall be extended for up to three (3) additional years until the Registrable Securities become eligible for resale under Rule 144), (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 (iii) such time as all of the Registrable Securities covered by such Registration Statement may be sold by the Holders 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.

“Effectiveness Deadline,” (a) with respect to the Initial Registration Statement, shall mean the ninetieth (90th) calendar day after the date hereof and with respect to any Additional Registration Statements which may be required pursuant to Section 3(b), the 90th calendar day following the date on which an additional Registration Statement is required to be filed hereunder; provided, however, that in the event the Company is notified by the Commission that one or more of the above Registration Statements will not be reviewed or is no longer subject to further review and comments, the Effectiveness Deadline as to such Registration Statement shall be the fifth Trading Day following the date on which the Company is so notified if such date precedes the dates otherwise required above and (b) with respect to any Additional Registration Statement, shall mean the Additional Registration Effectiveness Deadline.
 

“Exclusion Period”  shall have the meaning set forth in Section 3(p) below.

“Filing Deadline”  shall mean the Initial Registration Filing Deadline, or any applicable Additional Registration Filing Deadline.

2

 

“FINRA” shall mean the Financial Industry Regulatory Authority (f/k/a the National Association of Securities Dealers, Inc.).

“Initial Registration Filing Deadline” shall mean, with respect to the Initial Registration Statement required hereunder, July 15, 2008.

“Initial Registration Minimum” means a number of Registrable Securities equal to the lesser of (i) the total number of Registrable Securities and (ii) the maximum number which would enable the Company to conduct such offering in accordance with the provisions of Rule 415 as advised by the staff of the Commission (the “Staff”) in a written comment letter or otherwise (which number shall be no less than thirty percent (30%) of the number of issued and outstanding shares of Common Stock that are held by non-affiliates of the Company on the day immediately prior to the filing date of the Initial Registration Statement, unless the Staff expressly requires otherwise).

"Investor" means a Buyer or any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 10 hereof and any transferee or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 10.

 “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 by the Commission pursuant to 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.

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

"Registrable Securities," for a given Registration, means (a)any shares of Common Stock (the “Warrant Shares”) issued or issuable upon exercise of or otherwise pursuant to the Warrant(s), and (b) any shares of capital stock issued or issuable as a dividend on or in exchange for or otherwise with respect to any of the foregoing, (c) any additional shares of Common Stock issuable in connection with any anti-dilution provisions in the Warrants (in each case, without giving effect to any limitations on exercise set forth in the Warrant), and (d) any other shares of common stock issued pursuant to the terms of the Securities Purchase Agreement, the Warrants, this Registration Rights Agreement or any other Transaction Document (as defined in the Securities Purchase Agreement), and (e) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing.

3

 

“Registration Failure Liquidated Damages”  
shall have the meaning set forth in Section 4 below.

"Registration Statement(s)" means a registration statement(s) of the Company under the 1933 Act.

“Registration Trigger Date” shall have the meaning set forth in Section 3(b) below.

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

“SEC Guidance” means (i) the Securities Act, and (ii) any publicly-available written or oral guidance, comments, requirements or requests of the Commission staff.

“SEC Share Reduction” shall have the meaning ascribed to it in Section 2(a) below.

“Securities” shall have the meaning ascribed to it in the Securities Purchase Agreement.

“Series A Warrant Shares”  shall mean the Warrant Shares issuable upon the exercise of the Series A Warrants.

“Series B Warrant Shares”  shall mean the Warrant Shares issuable upon the exercise of the Series B Warrants.

“Series C Warrant Shares”  shall mean the Warrant Shares issuable upon the exercise of the Series C Warrants.

“Target Registration Amount” shall have the meaning set forth in Section 2(a) below.

“Target Registration Shortfall” shall have the meaning set forth in Section 2(a) below.

“Underlying Debenture Shares” means the shares of Common Stock issuable upon conversion of the Debentures and payment of interest thereunder.

“Warrants” means the warrants issued by the Company pursuant to the Securities Purchase Agreement in conjunction with the Debenture issued by the Company.

“Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

b. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement.

 

4

 
2.  REGISTRATION.

 

a.  MANDATORY REGISTRATION. Following the Closing of any Debenture pursuant to the Securities Purchase Agreement, the Company shall prepare, and, on or prior to the Initial Registration Filing Deadline (as defined above) file with the Commission a Registration Statement on Form S-1 (or, if Form S-1 is not then available, on such form of Registration Statement as is then available to effect a registration of the Registrable Securities, subject to the consent of the Buyer, which consent will not be unreasonably withheld)(the “Initial Registration Statement”) covering the resale of the Registrable Securities which Registration Statement, to the extent allowable under the 1933 Act and the rules and regulations promulgated thereunder (including Rule 416), shall state that such Registration Statement also covers such indeterminate number of additional shares of Common Stock as may become issuable upon  exercise of or otherwise pursuant to the Warrants to prevent dilution resulting from stock splits, stock dividends or similar transactions and shall contain (unless otherwise directed by at least a three-fourths (3/4) majority in interest of the Holders) substantially the “Plan of Distribution” attached hereto as Annex A. The number of shares of Common Stock initially included in such Registration Statement shall be no less than  the aggregate number of Warrant Shares that are then issuable upon exercise of or otherwise pursuant to the Warrants, without regard to any limitation on the Buyer's ability to  exercise the Warrants (collectively, the “Target  Registration Amount”).  Notwithstanding the foregoing, if the Company is advised by the staff of the Commission in a written comment letter or otherwise that it is not eligible to conduct the offering of the Warrant Shares under Rule 415 promulgated under the 1933 Act because of the number of shares sought to be included in the Registration Statement, then, subject to any applicable Registration Failure Liquidated Damages (as defined herein), the Company may reduce (an “SEC Share Reduction”) the number of shares covered by such Registration Statement to the maximum number which would enable the Company to conduct such offering in accordance with the provisions of Rule 415 (“Rule 415 Eligible”)(subject to Registration Failure Liquidated Damages, as defined below, if the Company reduces unilaterally the number of shares covered by such Registration Statement to a number less than the Initial Registration Minimum).  In the event of an SEC Share Reduction, the number of Registrable Securities registered shall be cut back pro rata (based upon the relative number of Warrants held by each Holder), provided that (i) the inclusion of the Series A Warrant Shares in such initial Registration Statement shall take precedence over and shall not be cut back until the following securities of the Company are cut back and removed from such Registration Statement (in the following order):  As necessary, (i) Series C Warrants shares shall be cut back and removed from the Registration Statement first, and (ii) Series B Warrants shall be cut back and removed from the Registration Statement first and (iii) Series A Warrants shall be cut back and removed from the Registration Statement third.  In the event that, due to an SEC Share Reduction or otherwise, any Registration Statement filed hereunder shall (when combined with any previous Registration Statements that are current and effective) register a number of shares of Common Stock which less than the Target Registration Amount (a “Target Registration Shortfall”), then the unregistered portion of the Target Registration Amount (the “Target Registration Shortfall Amount”) shall be included in the next Additional Registration Statement (in accordance with Section 3(b) below).  

The Company shall, as early as practicable on the Trading Day after the effective date of such Registration Statement, file a final Prospectus with the Commission as required by Rule 424.  The Company acknowledges that the number of shares initially included in each Registration Statement represents a good faith estimate of the maximum number of shares issuable upon  exercise of or otherwise pursuant to the Warrants and shall be amended if not sufficient.  Each Registration Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided to (and subject to the approval of) the Buyer and its counsel prior to its filing or other submission.  

5

 

b.  PIGGY-BACK REGISTRATIONS.  If at any time prior to the expiration of the Registration Period (as hereinafter defined) the Company shall determine to file with the Commission a Registration Statement relating to an offering for its own account or the account of others under the 1933 Act of any of its equity securities (other than on Form S-4 or Form S-8 or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans), the Company shall send to Buyer written notice of such determination and, if within fifteen (15) days after the effective date of such notice, the Buyer shall so request in writing, the Company shall include in such Registration Statement all or any part of the Registrable Securities which are not then registered for resale pursuant to a current and effective Registration Statement, and which the Buyer requests to be registered, except that if, (i) inclusion of such shares would result in the offering not being Rule 415 Eligible, or (ii) in connection with any underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall impose a limitation on the number of shares of Common Stock which may be included in the Registration Statement because, in such underwriter(s)' judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to which the Buyer has requested inclusion hereunder (i) as would enable the offering to be Rule 415 Eligible or (ii) as the underwriter shall permit;

 

c.  SUPPLIMENTARY REGISTRATION.  By not later than June 1, 2009, the Company shall prepare and file with the Commission a Registration Statement on Form S-1 (or, if Form S-1 is not then available, on such form of Registration Statement as is then available to effect a registration of the Registrable Securities, subject to the consent of the Buyer, which consent will not be unreasonably withheld)(the “Supplementary Registration Statement”) covering the resale of the Registrable Securities which Registration Statement, to the extent allowable under the 1933 Act and the rules and regulations promulgated thereunder (including Rule 416), shall state that such Registration Statement also covers such indeterminate number of additional shares of Common Stock as may become issuable upon  exercise of or otherwise pursuant to the Warrants to prevent dilution resulting from stock splits, stock dividends or similar transactions and shall contain (unless otherwise directed by at least a three-fourths (3/4) majority in interest of the Holders) substantially the “Plan of Distribution” attached hereto as Annex A. The number of shares of Common Stock initially included in such Supplementary Registration Statement shall be no less than the aggregate number of Warrant Shares that are then issuable upon exercise of or otherwise pursuant to the Warrants, without regard to any limitation on the Buyer's ability to exercise the Warrants, less the number of such shares that are either already registered for resale or are eligible for immediate sale under Rule 144, without volume limitations (collectively, the “Target Supplementary Registration Amount”).  Notwithstanding the foregoing, if the Company is advised by the staff of the Commission in a written comment letter or otherwise that it is not eligible to conduct the offering of the Warrant Shares under Rule 415 promulgated under the 1933 Act because of the number of shares sought to be included in the Registration Statement, then, subject to any applicable Registration Failure Liquidated Damages (as defined herein), the Company may reduce (an “SEC Share Reduction”) the number of shares covered by such Registration Statement to the maximum number which would enable the Company to conduct such offering in accordance with the provisions of Rule 415 (“Rule 415 Eligible”)(subject to Registration Failure Liquidated Damages, as defined below, if the Company reduces unilaterally the number of shares covered by such Registration Statement to a number less than the Initial Registration Minimum).  In the event of an SEC Share Reduction, the number of Registrable Securities registered in the Supplementary Registration shall be cut back pro rata (based upon the relative number of Warrants held by each Holder), provided that (i) the inclusion of the Series A Warrant Shares in such initial Registration Statement shall take precedence over and shall not be cut back until the following securities of the Company are cut back and removed from such Registration Statement (in the following order):  As necessary, (i) Series C Warrants shares shall be cut back and removed from the Registration Statement first, and (ii) Series B Warrants shall be cut back and removed from the Registration Statement first and (iii) Series A Warrants shall be cut back and removed from the Registration Statement third.  In the event that, due to an SEC Share Reduction or otherwise, any Registration Statement filed hereunder shall (when combined with any previous Registration Statements that are current and effective) register a number of shares of Common Stock which less than the Target Supplementary Registration Amount (a “Target Registration Shortfall”), then the unregistered portion of the Target Supplementary Registration Amount (the “Target Supplementary Registration Shortfall Amount”) shall be included in the next Additional Registration Statement (in accordance with Section 3(b) below).  

 

6

 

The Company shall, as early as practicable on the Trading Day after the effective date of such Registration Statement, file a final Prospectus with the Commission as required by Rule 424.  The Company acknowledges that the number of shares initially included in each Registration Statement represents a good faith estimate of the maximum number of shares issuable upon  exercise of or otherwise pursuant to the Warrants and shall be amended if not sufficient.  Each Registration Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided to (and subject to the approval of) the Buyer and its counsel prior to its filing or other submission.  

PROVIDED, HOWEVER, that the Company shall not exclude any Registrable Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled by contract to inclusion of such securities in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities; and

PROVIDED, FURTHER, HOWEVER, that, after giving effect to the immediately preceding proviso, any exclusion of Registrable Securities shall be made pro rata with holders of other securities having the contractual right to include such securities in the Registration Statement other than holders of securities entitled to inclusion of their securities in such Registration Statement by reason of demand registration rights. No right to registration of Registrable Securities under this Section 2(b) shall be construed to limit any registration required under Section 2(a) hereof.  If an offering in connection with which the Buyer is entitled to registration under this Section 2(d) is an underwritten offering, then the Buyer shall, unless otherwise agreed by the Company, offer and sell such Registrable Securities in an underwritten offering using the same underwriter or underwriters and, subject to the provisions of this Agreement, on the same terms and conditions as other shares of Common Stock included in such underwritten offering. Notwithstanding anything to the contrary set forth herein, the registration rights of the Buyer pursuant to this Section 2(b) shall only be available in the event the Company fails to timely file, obtain effectiveness or maintain effectiveness of any Registration Statement to be filed pursuant to Section 2(a) in accordance with the terms of this Agreement and shall terminate and be of no further force and effect once the Company satisfies its obligations under this Agreement.

7

 

3.  OBLIGATIONS OF THE COMPANY.  In connection with the registration of the Registrable Securities, the Company shall have the following obligations:

a.  The Company shall prepare promptly, and file with the Commission as soon as practicable after the date of the Closing under the Securities Purchase Agreement (the "CLOSING DATE") (but no later than the Filing Deadline), Registration Statements with respect to the number of Registrable Securities provided in Section 2(a), and thereafter use its best efforts to cause each such Registration Statement relating to Registrable Securities to become effective as soon as possible after such filing, but in any event shall cause each such Registration Statement relating to Registrable Securities to become effective no later than the Effectiveness Deadline, and shall keep the Registration Statement current and effective pursuant to Rule 415 at all times until such date as is the earlier of (i) the date on which all of the Registrable Securities for such Registration Statement have been sold and (ii) the date on which all of the Registrable Securities for such Registration Statement (in the opinion of counsel to the Buyer) may be immediately sold to the public without registration or restriction (including without limitation as to volume by each holder thereof) under the 1933 Act (the "REGISTRATION PERIOD"), which Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein not misleading.

b.  The Company shall prepare and file with the Commission such amendments (including post-effective amendments) and supplements to each Registration Statements and the prospectus used in connection with the Registration Statements as may be necessary to keep the Registration Statements current and effective at all times during the Registration Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the Company covered by the Registration Statements until such time as all of such Registrable Securities have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in the Registration Statements. In the event of a Target Registration Shortfall (the date of each of which is referred to as a “Registration Trigger Date”), or in the event that on any Trading Day (as defined in the Debenture) (each such Trading Day is also referred to as a  "Registration Trigger Date") the number of shares available under a Registration Statement filed pursuant to this Agreement is otherwise insufficient to cover all of the Registrable Securities issued or issuable upon  exercise of or otherwise pursuant to the Warrants (based on the Exercise  Price [as defined in the Warrants] then in effect), and otherwise issuable pursuant to the Transaction Documents, in each case without giving effect to any limitations on the Buyer' ability to  exercise the Warrants or otherwise receive shares of Common Stock pursuant to the Transaction Documents, the Company shall amend the Registration Statement, or file a new Registration Statement (on the short form available therefore, if applicable), or both (each, an “Additional Registration Statement”), so as to cover at least 100% of the total number of Registrable Securities so issued or issuable (based on the  Exercise Prices of the Warrants and other relevant factors on which the Company reasonably elects to rely, and without giving effect to any  limitations on exercise contained in the Warrants or limitations on conversion or exercise or other payment of shares contained in the Securities Purchase Agreement) as of the Registration Trigger Date (subject to an SEC Share Reduction, if applicable).  The Company shall prepare and file each Additional Registration Statement as soon as practicable following any Registration Trigger Date, but not later than the date that is sixty (60) days following the applicable Registration Trigger Date (the “Additional Registration Filing Deadline”) provided that, if Cutback Shares are required to be included in the Additional Registration Statement, the “Additional Registration Filing Deadline” shall mean the later of (i) the date that is sixty (60) days after the date substantially all (as such term is then interpreted by the Commission) of the Registrable Securities registered under the immediately preceding Registration Statement are sold and (ii) the date that is six (6) months following the date of effectiveness of the most recently effective Registration Statement or Additional Registration Statement filed hereunder.  The Company shall use its best efforts to cause such amendment and/or new Registration Statement to become effective as soon as practicable following the filing thereof, but in any event the Company shall cause such amendment and/or new Registration Statement to become effective within one hundred eighty (180) days of the Registration Trigger Date (the “Additional Registration Effectiveness Deadline”) or as promptly as practicable in the event the Company is required to increase its authorized shares.  

8

 

c.  The Company shall furnish to the Buyer and its legal counsel (i) promptly after the same is prepared and publicly distributed, filed with the Commission, or received by the Company, one copy of each Registration Statement and any amendment thereto, each preliminary prospectus and prospectus and each amendment or supplement thereto, and, in the case of the Registration Statement referred to in Section 2(a), each letter written by or on behalf of the Company to the Commission or the staff of the Commission, and each item of correspondence from the Commission or the staff of the Commission, in each case relating to such Registration Statement (other than any portion of any thereof which contains information for which the Company has sought confidential treatment), and (ii) such number of copies of a prospectus, including a preliminary prospectus, and all amendments and supplements thereto and such other documents as the Buyer may reasonably request in order to facilitate the disposition of the Registrable Securities owned by the Buyer. The Company will immediately notify the Buyer in writing of the effectiveness of each Registration Statement or any post-effective amendment. The Company will promptly respond to any and all comments received from the Commission, with a view towards causing each Registration Statement or any amendment thereto to be declared effective by the Commission as soon as practicable and shall file an acceleration request as soon as practicable, but no later than five (5) business days (the "Acceleration Request Deadline") following the resolution or clearance of all Commission comments or, if applicable, following notification by the Commission that any such Registration Statement or any amendment thereto will not be subject to review.

d.  The Company shall use reasonable efforts to (i) register and qualify the Registrable Securities covered by the Registration Statements under such other securities or "blue sky" laws of such jurisdictions in the United States as the Buyer shall reasonably request, (ii) prepare and file in those jurisdictions such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions;

9

 

e.  As promptly as practicable after becoming aware of such event, the Company shall notify the Buyer of the happening of any event, of which the Company has knowledge, as a result of which the prospectus included in any Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and use its best efforts promptly to prepare a supplement or amendment to any Registration Statement to correct such untrue statement or omission, and deliver such number of copies of such supplement or amendment to the Buyer as the Buyer may reasonably request; provided that, for not more than twenty (20) consecutive days (or a total of not more than sixty (60) days in any twelve (12) month period), the Company may delay the disclosure of material non-public information concerning the Company (as well as prospectus or Registration Statement updating) the disclosure of which at the time is not, in the good faith opinion of the Company, in the best interests of the Company (an "Allowed Delay"); provided, further, that the Company shall promptly (i) notify the Buyer in writing of the existence of (but in no event, without the prior written consent of the Buyer, shall the Company disclose to the Buyer any of the facts or circumstances regarding) material non-public information giving rise to an Allowed Delay and (ii) advise the Buyer in writing to cease all sales under such Registration Statement until the end of the Allowed Delay, provided the above actions are consistent with the requirements of the 1933 Act and/or 1934 Act or other applicable law. Upon expiration of the Allowed Delay, the Company shall again be bound by the first sentence of this Section 3(e) with respect to the information giving rise thereto.  Nothing herein relieves the obligations set forth in the Debenture or the Warrants relative to Registration Failure Liquidated Damages or payments of the Default Amount pursuant to Events of Default.
 

f.  The Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of any Registration Statement, and, if such an order is issued, to obtain the withdrawal of such order at the earliest possible moment and to notify the Buyer who holds Registrable Securities being sold (or, in the event of an underwritten offering, the managing underwriters) of the issuance of such order and the resolution thereof.

g.  The Company shall permit a single firm of counsel designated by the Buyer to review such Registration Statement and all amendments and supplements thereto (as well as all requests for acceleration or effectiveness thereof), at Buyer’s own cost, a reasonable period of time prior to their filing with the Commission (not less than three (3) business days but not more than ten (10) business days) and not file any document in a form to which such counsel reasonably objects and will not request acceleration of such Registration Statement without prior notice to such counsel.
 

h.  The Company shall hold in confidence and not make any disclosure of information concerning the Buyer provided to the Company unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other order from a court or governmental body of competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation of this or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning the Buyer is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Buyer prior to making such disclosure, and allow the Buyer, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.

10

 

i.  If the Company becomes eligible for listing on a national securities exchange, the Company shall use its best efforts to (i) cause all the Registrable Securities covered by the Registration Statement to be listed on each national securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange, or (ii) to the extent the securities of the same class or series are not then listed on a national securities exchange, secure the designation and quotation, of all the Registrable Securities covered by the Registration Statement on the Nasdaq Global Select Market or, if not eligible for the or the Nasdaq Global Select Market on the Nasdaq Global Market or, if not eligible for the Nasdaq Global Market, on the Over the Counter electronic bulletin board and, without limiting the generality of the foregoing, to arrange for at least two market makers to register with FINRA as such with respect to such Registrable Securities.
 

j.  The Company shall provide a transfer agent and registrar, which may be a single entity, for the Registrable Securities not later than the effective date of the Registration Statement.

k.  The Company shall cooperate with the Buyer who holds Registrable Securities being offered and the managing underwriter or underwriters, if any, to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legends) representing Registrable Securities to be offered pursuant to such Registration Statement and enable such certificates to be in such denominations or amounts, as the case may be, as the managing underwriter or underwriters, if any, or the Buyer may reasonably request and registered in such names as the managing underwriter or underwriters, if any, or the Buyer may request, and, within five (5) business days after a Registration Statement which includes Registrable Securities is ordered effective by the Commission, the Company shall deliver, and shall cause legal counsel selected by the Company to deliver, to the transfer agent for the Registrable Securities (with copies to the Buyer) an appropriate instruction and an opinion of such counsel in the form required by the transfer agent in order to issue the Registrable Securities free of restrictive legends.

l.  At the request of the holders of a three-fourths (3/4) majority-in-interest of the Registrable Securities, the Company shall prepare and file with the Commission such amendments (including post-effective amendments) and supplements to a Registration Statement and any prospectus used in connection with the Registration Statement as may be necessary in order to change the plan of distribution set forth in such Registration Statement, provided that if such change is not legally necessary in order for the Buyers to timely sell their Registrable Securities, the Company shall not be required to effect such amendments if they will  impose any additional requirements, including costs, on the Company.

m.  The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Buyer of Registrable Securities pursuant to a Registration Statement.

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n.  The Company shall comply with all applicable laws related to a Registration Statement and offering and sale of securities and all applicable rules and regulations of governmental authorities in connection therewith (including without limitation the 1933 Act and the 1934 Act and the rules and regulations promulgated by the Commission).

o.  Further Registration Statements. Except for a registration statement filed on behalf of the Buyer pursuant to Section 2 or Section 3 of this Agreement, and except for an underwritten public offering, the Company will not file any registration statements or amend (in such a manner as to increase the number of shares registered) any already filed registration statement with the Commission or with state regulatory authorities without the consent of the Buyer until the expiration of the "Exclusion Period," which shall be defined as the sooner of (i) the date that the Registration Statement shall have been current and available for use in connection with the resale of the Registrable Securities for a period of 180 days, or (ii) until all the Shares and Warrant Shares have been resold or transferred by the Subscribers pursuant to the Registration Statement or are eligible for immediate unrestricted resale pursuant to Rule 144, without volume limitations. The Exclusion Period will be tolled during the pendency of an Event of Default as defined in the Debenture or an Event of Default as defined in the Warrants.
 

p.  NASD Rule 2710 Filing; Broker Compensation.  The Company shall effect a filing with respect to the public offering contemplated by the Registration Statement (an “Issuer Filing”) with FINRA pursuant to NASD Rule 2710within one Trading Day of the date that the Registration Statement is first filed with the Commission and pay the filing fee required by such Issuer Filing.  The Company shall use commercially reasonable efforts to pursue the Issuer Filing until the NASD issues a letter confirming that it does not object to the terms of the offering contemplated by the Registration Statement.  

q.  NO PIGGYBACK ON REGISTRATIONS.  Except for legally required amendments or supplements to the existing registration statement specified in Schedule 3(dd) to the Securities 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 (including but not limited to any Registration Statement under Section 2(a) hereof or any amendment or supplement thereto under Section 3(b) hereof) 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.  In addition, the Company shall not offer any securities for its own account or the account of others in any Registration Statement under Section 2(a) hereof or any amendment or supplement thereto under Section 3(b) hereof without the consent of the holders of a three-fourths (3/4) majority-in-interest of the Registrable Securities.  

4.  REGISTRATION FAILURE.   If:
 

(i) in the aggregate among all Holders on a pro-rata basis based on their purchase of the Securities pursuant to the Securities Purchase Agreement, a Registration Statement registering for resale all of the Initial Registration Minimum is not declared effective by the Commission by the Effectiveness Deadline of the Initial Registration, or
 

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(ii) the Company files the Initial Registration Statement without affording the Holders the opportunity to review and comment on the same as required by Section 3(g) herein, or
 

(iii) the Company fails to file with the Commission a request for acceleration of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant to the Securities Act, within five Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be “reviewed” or will not be subject to further review, or
 

(iv) 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 such Registration Statement within 10 Trading Days after the receipt of comments by or notice from the Commission that such amendment is required in order for such Registration Statement to be declared effective, or
 

(v) after the effective date of a Registration Statement, such Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities included in such Registration Statement, or the Holders are otherwise not permitted to utilize the Prospectus therein to resell such Registrable Securities, for more than 10 consecutive calendar days or more than an aggregate of 15 calendar days (which need not be consecutive calendar days) during any 12-month period, or

(vi) any Additional Registration Statement required to be filed hereunder is not filed by the applicable Additional Registration Filing Deadline or it is not declared effective by the applicable Additional Registration Effectiveness Deadline  (any such failure or breach being referred to as a “Registration Failure”, and for purposes of clause (i) or (ii), the date on which such Registration Failure occurs, and for purpose of clause (iii) the date on which such five Trading Day period is exceeded, and for purpose of clause (iv) the date which such 10 calendar day period is exceeded, and for purpose of clause (v) the date on which such 10 or 15 calendar day period, as applicable, is exceeded being referred to as a “Registration Failure Date”), then, in addition to any other rights the Holders may have hereunder or under applicable law, on each such Registration Failure Date and on each monthly anniversary of each such Registration Failure Date (if the applicable Registration Failure shall not have been cured by such date) until the applicable Registration Failure is cured, the Company shall pay to each Holder an amount (“Registration Failure Liquidated Damages”) in cash, as liquidated damages and not as a penalty, equal to 2% of the aggregate purchase price paid by such Holder pursuant to the Purchase Agreement for any unregistered Registrable Securities then held by such Holder.  The parties agree that  the Company shall not be liable for liquidated damages under this Agreement with respect to any Warrants or Warrant Shares, provided that such Warrants are exerciseable in a cashless exercise and the underlying Warrant Shares are eligible for sale under Rule 144 following a cashless exercise..  

(vii) Notwithstanding (i) – (vi) above, the Company shall not be liable for Registration Failure Liquidated Damages if (1) the Company makes all filings as and when required by this Agreement, (2) the Company responds to any comments from the SEC regarding a Registration Statement within ten (10) days of the date of receipt of such comments, and (3) uses its best efforts to have the subject Registration Statement declared effective for the number of shares required hereunder as quickly as reasonably possible.  Registration Failure Liquidated Damages shall be due and payable by the fifth (5th) day of the calendar month in which they accrue.  If the Company fails to pay any liquidated damages pursuant to this Section in full within five (5) days after the date payable, the Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such liquidated damages are due until such amounts, plus all such interest thereon, are paid in full. The 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 a Registration Failure.

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5.  OBLIGATIONS OF THE BUYER.  In connection with the registration of the Registrable Securities, the Buyer shall have the following obligations:

a.  It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities of the Buyer that the Buyer shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request. At least three (3) business days prior to the first anticipated filing date of the Registration Statement, the Company shall notify the Buyer of the information the Company requires from each Buyer.

b.  The Buyer, by the Buyer's acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of the Registration Statements hereunder, unless the Buyer has notified the Company in writing of the Buyer's election to exclude all of the Buyer's Registrable Securities from the Registration Statements.

c.  In the event of an underwritten offering pursuant to Section 2(b) in which any Registrable Securities are to be included, the Buyer agrees to enter into and perform the Buyer's obligations under an underwriting agreement, in usual and customary form, including, without limitation, customary indemnification and contribution obligations, with the managing underwriter of such offering and take such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable Securities, unless the Buyer has notified the Company in writing of the Buyer's election to exclude all of the Buyer's Registrable Securities from such Registration Statement.

d.  The Buyer agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(e) or 3(f), the Buyer will immediately discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until the Buyer's receipt of the copies of the supplemented or amended prospectus contemplated by Section 3(e) or 3(f) and, if so directed by the Company, the Buyer shall deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in the Buyer's possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice.

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e.  No Buyer may participate in any underwritten registration hereunder unless the Buyer (i) agrees to sell the Buyer's Registrable Securities on the basis provided in any underwriting arrangements in usual and customary form entered into by the Company, (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements, and (iii) agrees to pay its pro rata share of all underwriting discounts and commissions and any expenses in excess of those payable by the Company pursuant to Section 5 below.

f.

Each Holder agrees to furnish to the Company a completed questionnaire in the form attached to this Agreement as Annex B (a “Selling Shareholder Questionnaire”) by the end of the third (3rd) Trading Day following the date on which such Holder receives draft materials in accordance with this Section.   

6.  EXPENSES OF REGISTRATION.  All reasonable expenses, other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualification fees, printers and accounting fees, the fees and disbursements of counsel for the Company shall be borne by the Company.

7.  INDEMNIFICATION.  In the event any Registrable Securities are included in a Registration Statement under this Agreement:

a.  To the extent permitted by law, the Company will indemnify, hold harmless and defend (i) the Buyer, (ii) the directors, officers, partners, managers, members, employees, agents and each person who controls any Buyer within the meaning of the 1933 Act or the Securities Exchange Act of 1934, as amended (the "1934 Act"), if any, (iii) any underwriter (as defined in the 1933 Act) for the Buyer in connection with an underwritten offering pursuant to Section 2(b) hereof, and (iv) the directors, officers, partners, employees and each person who controls any such underwriter within the meaning of the 1933 Act or the 1934 Act, if any (each, an "Indemnified Person"), against any joint or several losses, claims, damages, liabilities or expenses (collectively, together with actions, proceedings or inquiries by any regulatory or self-regulatory organization, whether commenced or threatened, in respect thereof, "Claims") to which any of them may become subject insofar as such Claims arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or the omission or alleged omission to state therein a material fact required to be stated or necessary to make the statements therein not misleading; (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the Commission) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading; or (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities (the matters in the foregoing clauses (i) through (iii) being, collectively, "Violations"). The Company shall reimburse the Indemnified Person, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.  Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 7(a): (i) shall not apply to a Claim arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by any Indemnified Person or underwriter for such Indemnified Person expressly for use in connection with the preparation of such Registration Statement or any such amendment thereof or supplement thereto; (ii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld; and (iii) with respect to any preliminary prospectus, shall not inure to the benefit of any Indemnified Person if the untrue statement or omission of material fact contained in the preliminary prospectus was corrected on a timely basis in the prospectus, as then amended or supplemented, such corrected prospectus was timely made available by the Company pursuant to Section 3(c) hereof, and the Indemnified Person was promptly advised in writing not to use the incorrect prospectus prior to the use giving rise to a Violation and such Indemnified Person, notwithstanding such advice, used it. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Buyer pursuant to Section 10.  

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b.  Promptly after receipt by an Indemnified Person under this Section 7 of notice of the commencement of any action (including any governmental action), such Indemnified Person shall, if Claim in respect thereof is to be made against any the Company under this Section 7, deliver to the Company a written notice of the commencement thereof, and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense thereof with counsel mutually satisfactory to the Company and the Indemnified Person, as the case may be.
 

PROVIDED, HOWEVER, that an Indemnified Person shall have the right to retain its own counsel with the fees and expenses to be paid by the Company, if, in the reasonable opinion of counsel retained by the Company, the representation by such counsel of the Indemnified Person and the Company would be inappropriate due to actual or potential differing interests between such Indemnified Person and any other party represented by such counsel in such proceeding. The Company shall pay for only one separate legal counsel for the Indemnified Persons, and such legal counsel shall be selected by Buyer and shall be reasonably acceptable to the Company, if the Buyer is entitled to indemnification hereunder.  The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action shall not relieve the Company of any liability to the Indemnified Person under this Section 6, except to the extent that the Company is actually prejudiced in its ability to defend such action. The indemnification required by this Section 7 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable.

c. To the extent permitted by law, but in an aggregate amount not to exceed the Buyer’s Subscription Amount (as defined in the Securities Purchase Agreement) the Buyer will indemnify, hold harmless and defend (i) the Company, and (ii) the directors, officers, partners, managers, members, employees, or agents of the Company, if any (each, a  "Company Indemnified Person"), against any joint or several losses, claims, damages, liabilities or expenses (collectively, together with actions, proceedings or inquiries by any regulatory or self-regulatory organization, whether commenced or threatened, in respect thereof, "Claims") to which any of them may become subject insofar as such Claims arise out of or are based upon a Claim arising out of or based upon any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities, which occurs due to the inclusion by the Company in a Registration Statement of false or misleading information about the Buyer, where such information was furnished in writing to the Company by the Buyer for the purpose of inclusion in such Registration Statement.

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8.  CONTRIBUTION.  To the extent any indemnification by the Company is prohibited or limited by law, the Company agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 7 to the fullest extent permitted by law, based upon a comparative fault standard.
 

9.  REPORTS UNDER THE 1934 ACT.  With a view to making available to the Buyer the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the Commission that may at any time permit the Buyer to sell securities of the Company to the public without registration ("Rule 144"), the Company agrees to:

a.  make and keep public information available, as those terms are understood and defined in Rule 144;

b.  file with the Commission in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long as the Company remains subject to such requirements (it being understood that nothing herein shall limit the Company's obligations under Section 4(c) of the Securities Purchase Agreement) and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and

c.  furnish to the Buyer so long as the Buyer owns Registrable Securities, promptly upon written request, (i) a written statement by the Company that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit the Buyers to sell such securities pursuant to Rule 144 without registration.

10.  ASSIGNMENT OF REGISTRATION RIGHTS.  The rights under this Agreement shall be automatically assignable by the Buyers to any transferee of all or any portion of Registrable Securities if: (i) the Buyer agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment, (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b) the securities with respect to which such registration rights are being transferred or assigned, (iii) following such transfer or assignment, the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act and applicable state securities laws, (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein, and (v) such transfer shall have been made in  accordance with the applicable requirements of the Securities Purchase Agreement.  In the event that the Buyer transfers all or any portion of its Registrable Securities pursuant to this Section, the Company shall have at least ten (10) days to file any amendments or supplements necessary to keep the Registration Statement current and effective pursuant to Rule 415, and the commencement date of any Event of Default under the Debenture or the Warrants caused thereby will be extended by ten (10) days.

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11.  AMENDMENT OF REGISTRATION RIGHTS.  Provisions of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with written consent of the Company, and Buyers who hold a three-fourths (3/4) majority interest of the Registrable Securities. Any amendment or waiver effected in accordance with this Section 10 shall be binding upon the Buyer and the Company.

12.  MISCELLANEOUS.  

a.  A person or entity is deemed to be a holder of Registrable Securities whenever such person or entity owns of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more persons or entities with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such Registrable Securities.

b.  Any notices required or permitted to be given under the terms hereof shall be sent by certified or registered mail (return receipt requested) or delivered personally or by courier (including a recognized overnight delivery service) or by facsimile and shall be effective five days after being placed in the mail, if mailed by regular United States mail, or upon receipt, if delivered personally or by courier (including a recognized overnight delivery service) or by facsimile, in each case addressed to a party.  The addresses for such communications shall be:

        If to the Company: To the address set forth immediately below such

        Company’s name on the signature pages hereto.

  With copy to:

Josef B. Volman

Burns & Levinson LLP

125 Summer Street

Boston, Ma. 02110

Telephone:  617-345-3895  

Fax:  617-345-3299  

         If to a Buyer: To the address set forth immediately below such Buyer's name on the signature pages hereto.

Each party shall provide notice to the other party of any change in address.

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

d.  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 legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or 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 other manner permitted by law.  The parties hereby waive all rights to a trial by jury.  If either party shall commence an action or proceeding to enforce any provisions of the this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

e.  This Agreement and the Securities Purchase Agreement (including all schedules and exhibits thereto) constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement and the Securities Purchase Agreement supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

f.  Subject to the requirements of Section 10 hereof, this Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties hereto.

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

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

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

j.  Except as otherwise provided herein, all consents and other determinations to be made by the Buyer pursuant to this Agreement shall be made by Buyers holding a three-fourths (3/4) majority of the Registrable Securities, determined as if the all of the  Warrants then outstanding have been converted or exercised into for Registrable Securities.

k.  The Company acknowledges that a breach by it of its obligations hereunder could cause irreparable harm to the Buyer by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for breach of its obligations hereunder could be inadequate and agrees, in the event of a breach or threatened breach by the Company of any of the provisions hereunder, that the Buyer could be entitled, in addition to all other available remedies in law or in equity, to seek an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and to seek to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

l.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

m.  In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

n.  The initial number of Registrable Securities included in any Registration Statement and each increase to the number of Registrable Securities included therein shall be allocated pro rata among the Buyers based on the number of Registrable Securities held by the Buyer at the time of such establishment or increase, as the case may be. In the event a Buyer shall sell or otherwise transfer any of such holder's Registrable Securities, each transferee shall be allocated a pro rata portion of the number of Registrable Securities included in a Registration Statement for such transferor.  Any shares of Common Stock included in a Registration Statement and which remain allocated to any person or entity which does not hold any Registrable Securities shall be allocated to the remaining Buyers, pro rata based on the number of shares of Registrable Securities then held by the Buyers.  For the avoidance of doubt, the number of Registrable Securities held by a Buyer shall be determined as if all the  Warrants then outstanding and held by a Buyer were converted into or exercised for Registrable Securities, without regard to any limitation on the Buyer's ability to  exercise the Warrants.

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o.  There shall be no oral modifications or amendments to this Agreement.  This Agreement may be modified or amended only in writing.   

[INTENTIONALLY LEFT BLANK]

     

 IN WITNESS WHEREOF, the undersigned Buyers and the Company have caused this Amended and Restated Registration Rights to be duly executed as of the 31st day of December, 2008.

	
  
  COMPANY:

ICP SOLAR TECHNOLOGIES, INC.

By:  ________________________

Sass Peress, President, CEO & Chairman

ADDRESS: 

7075 Place Robert-Joncas, Unit 131, Montreal H4M272

Phone:   514-270-5770

Fax:  514-270-3677

	
  
  BUYER:

BRIDGEPOINTE MASTER FUND LTD.

By:  ________________________

         Eric S. Swartz, Director

ADDRESS:

1120 Sanctuary Parkway

Suite 325

Alpharetta, GA 30004

Phone:  770-640-8130

Facsimile:  770-777-5844

	
  
  BUYER:

GEMINI MASTER FUND LTD.

By:  _________________________

Print Name: ___________________

ADDRESS:

c/o Gemini Strategies, LLC

135 Liverpool Drive, Suite C

Cardiff CA  92007

Phone:  858-480-2828

Facsimile:  858-509-8808

	
  
  BUYER:

Platinum Long Term Growth VI, LLC

By:  _________________________

Print Name: ___________________

ADDRESS:

152 West 57th Street

4th Floor

New York, NY  10019

Phone:  212-581-0500

Facsimile:  212-582-2222  

 

21

SCHEDULE OF BUYERS

 

	 	
  
   

	 	
  
   

	 
	
  
  Buyer

	
  
   

	
  
  Address and

Facsimile Number

	
  
   

	
  
  Legal Representative’s

Address and

Facsimile Number

	 

	 

	 

	 

	 

	 	 	 	 	 
	
  
  BridgePointe Master Fund Ltd.

	 	
  
  1120 Sanctuary Parkway

Suite 325

Alpharetta, GA 30004

Phone:  770-640-8130

Facsimile:  770-777-5844

	 	
  
  P. Bradford Hathorn, Esq.

Roswell Capital Partners, LLC

1120 Sanctuary Parkway, Suite 325

Alpharetta, GA 30004

Phone:  770-640-8130

Facsimile:  770-777-5844

	
  
  Gemini Master Fund, Ltd.

	 	
  
  c/o Gemini Strategies, LLC

135 Liverpool Drive, Suite C

Cardiff CA  92007

Phone:  858-480-2828

Facsimile:  858-509-8808

	 	
  
  

None.

	 	 	 	 	 
	
  
  Platinum Long Term Growth VI, LLC

Investment Amount:  $1,000,000

	 	
  
  152 West 57th Street

4th Floor

New York, NY  10019

Phone:  212-581-0500

Facsimile:  212-582-2222  

	 	
  
  Shane W. McCormack

Burak Anderson & Melloni, PLC

30 Main Street, P.O. Box 787

Burlington, VT 05402-0787

Phone:   802-862-0500

Facsimile:  802-862-8176

	 	 	 	 	 
	 	 	 	 	 

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Annex A

Plan of Distribution

Each Selling Stockholder (the “Selling Stockholders”) of the common stock and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of common stock on the OTC Bulletin Board or any other stock exchange, market or trading facility on which the shares are traded or in private transactions.  These sales may be at fixed or negotiated prices.  A Selling Stockholder may use any one or more of the following methods when selling shares:

 

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

 

·  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;

 

·  settlement of short sales entered into after the effective date of the registration statement of which this prospectus is a part;
 

 

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

 

·  through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

 

·  a combination of any such methods of sale; or

 

·  any other method permitted pursuant to applicable law.

The Selling Stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended (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, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with NASDR Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with NASDR IM-2440.  

In connection with the sale of the common stock or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume.  The Selling Stockholders may also sell shares of the common stock short and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities.  The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

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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.  Each Selling Stockholder has informed the Company that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the Common Stock. In no event shall any broker-dealer receive fees, commissions and markups which, in the aggregate, would exceed eight percent (8%).

The Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the shares.  The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.  

Because Selling Stockholders may be deemed to be “underwriters” within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act including Rule 172 thereunder.  In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus.  There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale shares by the Selling Stockholders.

We agreed to keep this prospectus effective until the earlier of (i) the date on which the shares may be resold by the Selling Stockholders without registration and without regard to any volume limitations by reason of Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the shares have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect.  The resale shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale shares may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution.  In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of the common stock by the Selling Stockholders or any other person.  We will make copies of this prospectus available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

 

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Annex B

ICP SOLAR TECHNOLOGIES, INC.

Selling Securityholder Notice and Questionnaire

The undersigned beneficial owner of common stock (the “Registrable Securities”) of ICP SOLAR TECHNOLIGES, INC., a Nevada corporation (the “Company”), understands that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”) a registration statement (the “Registration Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the “Registration Rights Agreement”) to which this document is annexed.  A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below.  All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

Certain legal consequences arise from being named as a selling securityholder in the Registration Statement and the related prospectus.  Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling securityholder in the Registration Statement and the related prospectus.

NOTICE

The undersigned beneficial owner (the “Selling Securityholder”) of Registrable Securities hereby elects to include the Registrable Securities owned by it in the Registration Statement.

 

The undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate:

1.

Name.

(a)

Full Legal Name of Selling Securityholder

(b)

Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities are held:

(c)

Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by this Questionnaire):

 

25

 

2.  Address for Notices to Selling Securityholder:

Telephone:

Fax:

Contact Person:

 

3.  Broker-Dealer Status:

(a)

Are you a broker-dealer?

Yes   ﷓  

No   ﷓  

(b)

If “yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services to the Company?

Yes   ﷓  

No   ﷓  

Note:

If “no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

(c)

Are you an affiliate of a broker-dealer?

Yes   ﷓  

No   ﷓  

(d)

If you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

Yes   ﷓  

No   ﷓  

Note:

If “no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

4.  Beneficial Ownership of Securities of the Company Owned by the Selling Securityholder.

Except as set forth below in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities issuable pursuant to the Purchase Agreement.

(a)

Type and Amount of other securities beneficially owned by the Selling Securityholder:

_______________________________________________

_______________________________________________

 

26

 

5.  Relationships with the Company:

Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years.

State any exceptions here:

_____________________________________________

_____________________________________________

The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at any time while the Registration Statement remains effective.

By signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto.  The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related prospectus.

IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent.

Date:  

Beneficial Owner:  

By:

Name: ___________________

Title  ____________________

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

[_________________________________________________________ ]

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