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Title: |
Registration Rights Agreement |
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Entities: |
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Date: |
2002 |
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Size: |
Preview shows 7KB of 47KB total |
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Price: |
$43 |
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ID: |
#1275661 |
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SILVER KEY MINING COMPANY, INC.
A Nevada Corporation
REGISTRATION RIGHTS AGREEMENT
THIS REGISTRATION RIGHTS AGREEMENT, dated as of October 22, 2002 (the
"Agreement"), is entered into by and among Silver Key Mining Company, Inc., a
Nevada corporation (the "Company"), and the holders (the "Investors") of the
Company's capital stock and Warrants set forth on the signature page hereof.
Capitalized terms not defined herein shall have the meanings ascribed to them in
the Securities Purchase Agreement (as hereinafter defined).
WHEREAS, heretofore, Healthcare Quality Systems, Inc., a Florida
corporation wholly owned by Company entered into and consummated Merger
Agreement with Provider Acquisition, LLC ("PAL") pursuant to which the Investors
exchanged all their membership interests in PAL for 1,915,842 shares of the
Company's Common Stock (the "Merger"); and
WHEREAS, simultaneously with the execution and delivery of this
Agreement, the Investors are agreeing to purchase from the Company, pursuant to
the Securities Purchase Agreement dated as of October 16, 2002 among the
Company, certain of its stockholders and Stanford Venture Capital Holdings,
Inc., a Delaware corporation (the "Securities Purchase Agreement") 1,880,342
shares of the Series A Preferred Stock and the Warrants; and
WHEREAS, the Company desires to grant to the Investors the registration
rights set forth herein with respect to the shares of Common Stock issuable upon
conversion of the Series A Preferred Stock (the "Conversion Shares"), the shares
of Common Stock issuable as a result of the Merger (the "Merger Shares"), the
shares of Common Stock issuable upon exercise of the Warrants (the "Warrant
Shares"), the shares of Common Stock issuable upon the exercise of the warrants
issuable in the event of a registration default pursuant to Section 4(e) (the
"Default Warrant Shares"), the 500,000 shares of Common Stock registered in the
name of Deluxe Investment Company. and held in escrow under an Escrow Agreement
of even date herewith among the Company, Stanford Venture Capital Holdings, Inc.
and Boylan, Brown, Vigdor & Wilson LLP, as escrow agent (the "Escrow Shares")
and the shares of Common Stock issued as a dividend or other distribution with
respect to the Conversion Shares, Merger Shares, Warrant Shares, Escrow Shares
or Default Warrant Shares (the "Distribution Shares") (all the shares of the
Series A Preferred Stock, the Conversion Shares, the Merger Shares, the Warrant
Shares, the Default Warrant Shares, the Escrow Shares and the Distribution
Shares, collectively and interchangeably, are referred to herein as the
"Securities").
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. CERTAIN DEFINITIONS
As used herein the term "Registrable Security" means the Conversion
Shares, Warrant Shares, Merger Shares, Default Warrant Shares and the
Distribution Shares, until (i) the Registration Statement (as defined below) has
<PAGE>
been declared effective by the Securities and Exchange Commission (the
"Commission"), and all Securities have been disposed of pursuant to the
Registration Statement, (ii) all Securities have been sold under circumstances
under which all of the applicable conditions of Rule 144 ("Rule 144") (or any
similar provision then in force) under the Securities Act of 1933, as amended
(the "Securities Act") are met, or (iii) such time as, in the opinion of counsel
to the Company reasonably satisfactory to the Investors and upon delivery to the
Investors of such executed opinion, all Securities may be sold without any time,
volume or manner limitations pursuant to Rule 144 (or any similar provision then
in effect). In the event of any merger, reorganization, consolidation,
recapitalization or other change in corporate structure affecting the Common
Stock, such adjustment shall be deemed to be made in the definition of
"Registrable Security" as is appropriate in order to prevent any dilution or
enlargement of the rights granted pursuant to this Agreement. As used herein the
term "Holder" means any Person owning or having the right to acquire Registrable
Securities or any assignee thereof in accordance with Section 10 hereof. As used
herein "Trading Day" shall mean any business day on which the market on which
the Common Stock trades is open for business.
2. RESTRICTIONS ON TRANSFER
Each of the Investors acknowledges and understands that prior to the
registration of the Securities as provided herein, the Securities are
"restricted securities" as defined in Rule 144. Each of the Investors
understands that no disposition or transfer of the Securities may be made by any
of the Investors in the absence of (i) an opinion of counsel to such Investor,
in form and substance reasonably satisfactory to the Company, that such transfer
may be made without registration under the Securities Act or (ii) such
registration.
3. COMPLIANCE WITH REPORTING REQUIREMENTS
With a view to making available to the Investors the benefits of Rule
144 or any other similar rule or regulation of the Commission that may at any
time permit the holders of the Securities to sell securities of the Company to
the public pursuant to Rule 144, the Company agrees to:
(a) comply with the provisions of paragraph (c)(1) of Rule 144;
(b) file with the Commission in a timely manner all reports and
other documents required to be filed with the Commission pursuant to Section 13
or 15(d) under the Securities Exchange Act of 1934 (the "Exchange Act") by
companies subject to either of such sections, irrespective of whether the
Company is then subject to such reporting requirements; and
(c) Upon request by any Holder or the Company's transfer agent, the
Company shall provide an opinion of counsel, which opinion shall be reasonably
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