Form 8-K
8-K — RTB Digital, Inc.
Accession: 0001185185-26-003879
Filed: 2026-09-09
Period: 2026-09-04
CIK: 0001419275
SIC: 8742 (SERVICES-MANAGEMENT CONSULTING SERVICES)
Item: Unregistered Sales of Equity Securities
Item: Other Events
Item: Financial Statements and Exhibits
Documents
8-K — rtb8k090826.htm (Primary)
EX-10.2 — EXHIBIT 10.2 (rtbex10-2.htm)
EX-10.3 — EXHIBIT 10.3 (rtbex10-3.htm)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K — FORM 8-K
8-K (Primary)
Filename: rtb8k090826.htm · Sequence: 1
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0001419275
0001419275
2026-09-04
2026-09-04
iso4217:USD
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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
Current
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): September 4, 2026
RTB Digital, Inc.
(Exact
name of registrant as specified in its charter)
Nevada
001-34294
22-3962936
(State
or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S.
Employer
Identification No.)
4300 University Way, Suite C
Seattle, WA 98105
(Address of principal executive offices
and zip code)
Registrant’s
telephone number, including area code: (855) 201-1613
Check the appropriate box below if
the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to
Section 12(b) of the Exchange Act:
Title
of each class
Trading
Symbol(s)
Name
of each exchange on which registered
Common Stock, par value $0.001 per share
RTB
The
Nasdaq Stock
Market LLC
(Nasdaq Capital Market)
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 3.02. Unregistered Sales of Equity Securities
August 2026 Private Placement
On September 4, 2026, RTB Digital, Inc. (“RTB”)
entered into Securities Purchase Agreements with 12 investors, including certain persons and entities affiliated with RTB’s founders
and principal stockholders, for the offer and sale of an aggregate of 456,306 (“Shares”) shares of common stock, for gross
proceeds of $5,078,720. The per share price was $11.13. The officers of RTB conducted the offering without engaging any broker dealer
or other offering participant.
RTB also entered into a registration rights
agreement to register the shares on a “piggy back” basis and a one-time “demand” basis, exercisable 180 days after
issuance of the Shares, as long as 50% of the Shares are being registered. The right to have the Shares registered will terminate when
the Shares are sold, they have been covered by an effective registration statement for 16 months or they may be sold under Rule 144 without
regard to the volume limitations. RTB has agreed to pay registration costs, and indemnify the investors in relation to registration. The
Shares were sold pursuant to Regulation 506(b) and are being issued as “restricted stock.”
Item 8.01 Other Events
To eliminate uncertainty in the marketplace
regarding the previously disclosed Strategic Partnership discussions (8-K filed March 25, 2026), the Company confirms that it is progressing
toward finalizing the agreement, pending completion of final diligence. The anticipated transaction will apply the previously disclosed
$10 million deposit toward the transaction consideration.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
Name of Exhibit
10.2*
Form of Subscription Agreement for August 2026 private placement between the Registrant and several investors
10.3*
Form of Registration Rights Agreement for August 2026 private placement between the Registrant and several investors
104*
Cover Page Interactive Data File (embedded within the inline XBRL document).
*
Filed or furnished herewith
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SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
RYVYL Inc.
By:
/s/ James Heckman
Name:
James Heckman
Title:
Chief Executive Officer
Dated: September 8, 2026
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EX-10.2 — EXHIBIT 10.2
EX-10.2
Filename: rtbex10-2.htm · Sequence: 2
Exhibit 10.2
RTB
DIGITAL, INC. SUBSCRIPTION AGREEMENT
September 4, 2026
RTB Digital, Inc.
4300 University Way, NE, Suite C
Seattle, WA 98105
Ladies and Gentlemen:
The undersigned subscribers
listed on Exhibit B hereto, (individually and collectively referred to herein as, the “Subscriber”) desires to purchase
a number of shares of common stock as set forth on Schedule A hereto (the “Common Stock”), of RTB Digital, Inc., a
Nevada corporation (the “Company”) in consideration for an aggregate price set forth on Exhibit B (the “Subscription
Price”), based on a per share price of US $11.13. In connection with this offer to purchase, the Subscriber and the Company
agree and acknowledge the following:
Section 1. Access to Information. The
Subscriber is an accredited investor and has knowledge about the Company from its review of the Company reports filed with the Securities
and Exchange Commission and has had access to information about the Company from discussions with certain officers and directors of the
Company. In addition, the Company has provided to the Subscriber the additional opportunity to ask questions and receive answers from
management concerning the business of the Company and the terms of the Common Stock and has provided to the Subscriber an opportunity
to obtain any and all additional information necessary to verify the accuracy of the information which has been furnished. The Subscriber
is satisfied with the Company’s responses to any questions or concerns raised by the Subscriber, subject to the Subscriber’s
reliance on the representations, warranties, covenants and agreements of the Company contained in this Subscription Agreement and in any
other transaction documents executed in connection herewith. The Subscriber hereby acknowledges receipt of all information and materials
that the Subscriber deems necessary to evaluate an investment in the Company and the purchase of Common Stock and hereby acknowledges
that the Subscriber has fully reviewed and fully understands all such information and materials so requested.
Section 2. Subscriber’s
Acknowledgments. The Company has disclosed to the Subscriber and the Subscriber understands that:
(a) AN
INVESTMENT IN THE COMPANY INVOLVES CONSIDERABLE RISKS NOT ASSOCIATED WITH OTHER INVESTMENTS, INCLUDING WITHOUT LIMITATION, THAT THE COMPANY
WILL NEED TO REORGANIZE ITS OPERATIONS, WILL NEED ADDITIONAL FINANCING TO OPERATE IN THE SHORT AND LONG TERM, THE COMPANY IS DEPENDENT
ON MANAGEMENT AND OTHER KEY PERSONNEL, THE COMPANY ASSETS ARE DIGITAL ASSETS, THERE IS COMPETITION FOR THE COMPANY’S PRODUCTS AND
SERVICES USING OTHER MEANS, THE COMPANY HAS LIMITED CAPABILITIES AND RESOURCES, THE COMPANY WILL DEPEND ON INTELLECTUAL PROPERTY TO COMPETE
EFFECTIVELY, AND THE COMPANY IS DEPENDENT ON NEW PRODUCT DEVELOPMENT AND TECHNOLOGICAL ADVANCES. THIS SUBSCRIPTION IS NOT BASED ON A MINIMUM
AMOUNT TO BE RAISED BY THE COMPANY; THEREFORE, ONCE THE SUBSCRIBER MAKES A COMMITMENT TO SUBSCRIBE, IT MAY BE THE ONLY SUBSCRIPTION. THE
COMPANY MAY NOT RAISE SUFFICIENT FUNDS FOR IT TO PROGRESS ITS OPERATIONS. THERE IS DISCLOSURE ABOUT THE COMPANY’S ABILITY TO CONTINUE
AS A GOING CONCERN DISCLOSED IN ITS FINANCIAL STATEMENTS.
(b) The
public market for the Common Stock is volatile and limited, therefore the Subscriber should anticipate holding the Common Stock purchased
hereunder for a considerable amount of time and there is no assurance that the Common Stock will be able to be sold in the public market
except pursuant to an effective registration statement under the Securities Act of 1933 or an available exemption from registration thereunder.
(c) Due
to the absence of a substantial public market for the Common Stock: (i) the Subscriber may not be able to liquidate this investment in
the event of an unexpected need for cash; (ii) transferability of the Common Stock is limited, and (iii) in the event of a disposition
of the Common Stock, the Subscriber could sustain a loss.
(d) The
Common Stock has not been registered under the Securities Act of 1933, as amended (the “Securities Act of 1933”), or
state securities laws and, therefore, the Common Stock cannot be resold or transferred n the United States public markets unless the shares
are subsequently registered under the Securities Act of 1933 and applicable state securities or “Blue Sky” laws or
exemptions from such registration are available.
(e) A
legend relating to the restrictions on the transfer of the Common Stock will be placed on the Common Stock to be purchased by the Subscriber
and a stop transfer order will be entered into the stock records of the Company in respect of the Common Stock being purchased by the
Subscriber; provided that no such legend or stop transfer order shall apply to sales or transfers pursuant to an effective registration
statement under the Securities Act of 1933, Rule 144 thereunder or any other clearly available exemption from registration, and the Company
shall cause such legend and stop transfer order to be removed promptly upon the Subscriber’s reasonable request in connection with
any such sale or transfer.
(f) The
Common Stock has not been registered under the Securities Act of 1933 in reliance upon an exemption under the provisions of the Securities
Act of 1933 which depends, in part, upon the investment intention of the purchaser. In this connection, the Subscriber understands that
it is the position of the Securities and Exchange Commission (the “SEC”) that the statutory basis for such exemption
would not be present if the representation of the purchaser merely meant that its present intention was to hold the Common Stock for a
short period, such as the capital gains period of the Internal Revenue Code, for a deferred sale, for a market rise, or for a sale if
the market does not rise (assuming that a market develops) for a year, or for any other fixed period. The Subscriber realizes that, in
the view of the SEC, a purchase now with an intent to resell would represent a purchase with an intent inconsistent with this investment
representation, and the SEC might regard such a sale or disposition as a deferred sale to which the exemption is not available. Notwithstanding
any of the foregoing in this Section 2(f), nothing herein shall restrict the Subscriber’s ability to resell or transfer the Common
Stock pursuant to an effective registration statement under the Securities Act of 1933, Rule 144 thereunder or any other clearly available
exemption from registration.
(g) No
federal or state agency has made any finding or determination as to the fairness of the investment, nor have they made any recommendation
or endorsement concerning the Common Stock. The Subscriber understands that the per share price is based on the then market price of the
shares but that the market may not be an accurate means of measuring the value of a share and the overall value of the Company.
(h) This
Subscription Agreement is not revocable by the Subscriber, and the Subscriber is submitting this Subscription Agreement intending to be
legally bound thereby, in each case subject to the satisfaction or waiver by the Subscriber of the conditions to the Subscriber’s
obligations under this Subscription Agreement.
(i) The
Subscriber acknowledges that he, she, or it, is not entitled to any preemptive rights with respect to any shares of the capital stock
of the Company, any options, warrants or other rights to subscribe for any shares of capital stock of the Company or any security convertible
into or exchangeable for any shares of capital stock of the Company, and that his, her, or its, investment in the Common Stock could be
subject to significant dilution.
Section
3. Subscriber Representations. The Subscriber represents and warrants as follows:
(a) The
Subscriber has full power and authority to enter into, deliver and perform this Subscription Agreement and to consummate the transactions
contemplated hereby. This Subscription Agreement is the valid and binding obligation of the Subscriber, enforceable against him, her,
or it, in accordance with its terms. The Subscriber has the capacity to execute and deliver this Subscription Agreement and to perform
his, her, or its, obligations hereunder. The Subscriber has readily available funds with which to pay the Subscription Price.
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(b) The
execution and delivery of this Subscription Agreement and the consummation of the transactions contemplated hereby will not violate any
provision of any agreement or contract to which the Subscriber is a party or by which it is bound or any applicable law, ordinance, rule
or regulation of any governmental body having jurisdiction over the Subscriber or any order, judgment or decree applicable to the Subscriber.
(c) The
Subscriber is acquiring the Common Stock for his or her own account for investment only and not for or with a view to resale or distribution.
The Subscriber has not entered into any contract, undertaking, agreement or arrangement with any person to sell, transfer or pledge to
such person or anyone else the Common Stock which it, he or she is subscribing to purchase and the Subscriber has no present plans or
intentions to enter into any such contract, undertaking, agreement or arrangement, each representing a violation of the Securities Act
of 1933; provided, however, that nothing herein shall restrict the Subscriber’s ability to resell or transfer the Common Stock pursuant
to an effective registration statement under the Securities Act of 1933, Rule 144 thereunder or any other clearly available exemption
from registration.
(d) The
Subscriber can bear the economic risk of losing its entire investment in the Common Stock. The Subscriber is prepared to bear the economic
risk of this investment for an indefinite time or until the Common Stock may be resold pursuant to an effective registration statement
under the Securities Act of 1933, Rule 144 thereunder or any other clearly available exemption from registration.
(e) The
overall commitment of the Subscriber to investments which are not readily marketable is not disproportionate to the Subscriber’s
net worth, and an investment in the Common Stock will not cause such overall commitment to become excessive. The Subscriber’s need
for diversification in the Subscriber’s investment portfolio will not be impaired by an investment in the Company.
(f) The
Subscriber has adequate means of satisfying the Subscriber’s short term needs for cash and has no present need for liquidity which
would require the Subscriber to sell the Common Stock.
(g) The
Subscriber has substantial experience in making investment decisions of this type and the Subscriber has such knowledge and experience
in financial and business matters that the Subscriber is capable of evaluating the merits and risks of an investment in the Company without
the assistance of a purchaser representative.
(h) The
residence or principal place of business of the Subscriber is in the location indicated in the address beneath its signature at the end
of this Subscription Agreement. Unless otherwise indicated, all communications, contacts and discussions relating to the offering of Common
Stock occurred in the location in which the Subscriber maintains its residence or principal place of business, as applicable.
(i) The
Subscriber is an “accredited investor” within the meaning of Section 501(a) of Regulation D, as adopted pursuant to the Securities
Act of 1933.
Section 4. Reliance on
Representations. The Subscriber acknowledges and understands that the Company and its directors, officers, employees, agents
and representatives are relying upon the information, representations and agreements contained in this Subscription Agreement and upon
any other information which has been furnished by the Subscriber in determining that the Subscriber is a suitable investor and that this
investment is duly authorized and in deciding to accept the Subscriber’s subscription for the Common Stock.
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Section 5. Agreements
of the Subscriber. The Subscriber hereby agrees as follows:
(a) Any
Common Stock acquired pursuant to this offer will not be sold or otherwise transferred: (i) without the prior written consent of the Company,
which consent shall be conditioned on receipt of an opinion of counsel reasonably satisfactory to the Company to the effect that such
proposed transfer is being made pursuant to the registration requirements of the Securities Act or pursuant to an exemption therefrom
and complies in all respects with any applicable state securities or “Blue Sky” laws, or (ii) without registration under the
Securities Act of 1933 and applicable state securities or “Blue Sky” laws; provided, however, no prior written consent of
the Company shall be required for any sale or transfer pursuant to an effective registration statement, Rule 144 under the Securities
Act of 1933, or any other clearly available exemption from registration; provided that the Company may require reasonable documentation
customarily required by its transfer agent to confirm the availability of any claimed exemption from registration, including an opinion
of counsel reasonably satisfactory to the Company.
(b) In
the event the subscription is not accepted, any money tendered will be refunded in full without interest and without deduction within
a reasonable period of time.
Section 6. Company Representations
and Covenants. The Company represents, warrants and covenants to the Subscriber that: (a) the Company is duly organized, validly existing
and in good standing under the laws of its jurisdiction of incorporation and has all requisite corporate power and authority to enter
into and perform this Subscription Agreement; (b) this Subscription Agreement has been duly authorized, executed and delivered by the
Company and constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms;
(c) the Common Stock to be issued to the Subscriber hereunder, when issued and paid for in accordance with this Subscription Agreement,
will be duly authorized, validly issued, fully paid and non-assessable, free and clear of any liens or encumbrances created by the Company
other than restrictions under applicable securities laws; (d) the execution, delivery and performance of this Subscription Agreement by
the Company and the issuance and sale of the Common Stock will not violate the Company’s organizational documents, any material
agreement binding on the Company or any applicable law, rule, regulation, order or judgment; (e) the Company’s SEC reports, as of
their respective filing dates, complied in all material respects with the requirements of the Securities Act of 1933 and the Securities
Exchange Act of 1934, as applicable, and did 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, except as corrected in a subsequent SEC report filed
before the date hereof; and (f) to the Company’s knowledge, there are no material facts or circumstances that would prohibit or
materially hinder the Company from performing under any other transaction agreement entered into in connection with this Subscription
Agreement, including without limitation, the the Investor Registration Rights Agreement substantially in the form attached hereto as Exhibit A.
Section 7. Indemnification. The
Subscriber agrees to indemnify and hold harmless the Company and each director, officer, employee, agent or representative thereof from
and against any and all loss, damage or liability and all related costs and expenses (including, but not limited to, reasonable attorney’s
fees and costs of investigation) due to or arising out of a breach of any covenant, representation or warranty made by the Subscriber
in this Subscription Agreement. The Company agrees to indemnify and hold harmless the Subscriber from and against any and all loss, damage
or liability and all related costs and expenses due to or arising out of a breach of any covenant, representation or warranty made by
the Company in this Subscription Agreement.
Section 8. Miscellaneous.
(a) All
notices and other communications given or made hereunder shall be in writing and shall be deemed effectively given: (i) upon personal
delivery to the party to be notified, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of
the recipient, and if not so confirmed, then on the next business day, (iii) five (5) days after having been sent by registered or certified
mail, return receipt requested, postage prepaid, or (iv) one (1) business day after the business day of deposit with a nationally recognized
overnight courier, specifying next business day delivery, with written verification of receipt.
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(b) Notwithstanding
the place where this Subscription Agreement may be executed by any of the parties hereto, the parties expressly agree that all the terms
and provisions hereof, and all matters arising directly or indirectly herefrom, shall be governed by, and construed in accordance with,
the laws of the state of Delaware without regard to the choice of law principles thereof.
(c) This
Subscription Agreement and exhibits hereto constitutes the entire agreement between the parties hereto with respect to the subject matter
hereof and may be amended only by a writing executed by all parties.
(d) Whenever
required by the context hereof, the singular shall include the plural, and vice-versa; the masculine shall include the feminine and neuter
genders, and vice-versa; and the word “person” shall include an individual, corporation, partnership, trust, estate or other
entity.
(e) As
a condition to the Subscriber’s obligation under this Subscription Agreement, the Company will enter into the Registration Rights
Agreement, attached hereto as Exhibit A, for the registration of the shares of Common Stock purchased hereunder at
or before the purchase and sale of the Common Stock contemplated hereunder.
Section 9. Subscription. Subject
to the satisfaction or waiver by the Subscriber of the conditions to the Subscriber’s obligations under this Subscription Agreement,
including the Company’s execution and delivery of the Registration Rights Agreement attached hereto as Exhibit A,
the Subscriber shall pay the Subscription Price by (a) delivery of a check of the Subscriber in the amount of the Subscription Price payable
to the Company, or (b) wire transfer of immediately available funds to the account of the Company, in each case against the Company’s
contemporaneous issuance of the Common Stock purchased hereunder to the Subscriber or its designee in book-entry form free of any lock-up
or contractual transfer restriction other than the restrictions required by applicable securities laws.
THE
SECURITIES AND EXCHANGE COMMISSION HAS NOT AND DOES NOT PASS UPON THE MERITS OF THE COMMON STOCK NOR DOES IT PASS UPON THE ACCURACY OR
COMPLETENESS OF ANY OFFERING MATERIALS OF THE COMPANY. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
SUBSCRIBER
SHOULD CONSULT ITS OWN LEGAL COUNSEL, ACCOUNTANT AND BUSINESS AND FINANCIAL ADVISERS AS TO ALL LEGAL, TAX AND RELATED MATTERS CONCERNING
ANY INVESTMENT IN THE COMPANY.
This
Subscription Agreement is dated as of the date first written above.
[Signature Page Follows]
5
RTB DIGITAL, INC.
By:
Name:
James Heckman
Title:
Chief Executive Officer
INVESTOR
By:
Name:
Address and contact information of Subscriber:
Address:
Telephone
No.: __________________________
Email:
[Signature Page to RTB Digital, Inc. Subscription
Agreement]
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Exhibit A – Investor Registration Rights
Agreement
Exhibit B
LIST OF SUBSCRIBERS
Name
Number of Shares
Aggregate Consideration
EX-10.3 — EXHIBIT 10.3
EX-10.3
Filename: rtbex10-3.htm · Sequence: 3
Exhibit 10.3
REGISTRATION RIGHTS AGREEMENT FOR INVESTORS
THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made as of September 4, 2026, by and among RTB Digital, Inc, a Nevada corporation
(“Company”), and the persons listed on Schedule A hereto, referred to individually as a “Stockholder”
and collectively as the “Stockholders”. Capitalized terms used but not otherwise defined herein have the meanings
set forth in Section 13.
A. In connection with the
Subscription Agreement by and among the Company and the Stockholders hereto (the “Subscription Agreement”),
the Company has agreed, upon the terms and subject to the conditions of the Subscription Agreement, to issue and sell Shares to each Subscriber
(as defined in the Subscription Agreement), shares of common stock of the Company (the “Common Stock”).
B. To induce the Stockholders
to consummate the transactions contemplated by the Subscription Agreement, the Company has agreed to provide certain registration rights
under the Securities Act, and applicable state securities laws to the Stockholders, and their assignees or successors in interest, and
certain rights to provide for the registration for resale of the Common Stock by means of a Registration Statement under the Securities
Act, pursuant to the terms of this Agreement. Such Common Stock acquired by the Stockholders and their assignees or successors in interest
are referred to collectively as the “Registrable Securities”.
NOW, THEREFORE, in
consideration of the above 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 Stockholders hereby agree as follows:
1. Registration.
(a) Piggyback Registrations
Rights. If, at any time beginning on the date hereof the date that is ninety (90) days after the Company files its Form 10-Q with
the U.S. Securities and Exchange Commission covering the Company’s second fiscal quarter, there is not an effective Registration
Statement covering the Registrable Securities, and the Company shall determine to prepare and file with the Commission a Registration
Statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities
(other than on Form S-4 or Form S-8, each as promulgated under the Securities Act, or their then equivalent relating to equity securities
to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock
option or other employee benefit plans), then the Company shall send to the Stockholders a written notice of such determination at least
twenty (20) days prior to the filing of any such Registration Statement and shall include in such Registration Statement all Registrable
Securities requested by any Stockholder hereunder to be included in the registration within ten (10) days after the Company sends such
notice to the Stockholders (the “Piggyback Shares”) for resale and offer on a continuous basis pursuant to Rule
415; provided, that (i) if, at any time after giving written notice of its intention to register any securities and prior to the effective
date of the Registration Statement filed in connection with such registration, the Company determines for any reason not to proceed with
such registration, the Company will be relieved of its obligation to register any Registrable Securities in connection with such registration,
(ii) in case of a determination by the Company to delay registration of its securities, the Company will be permitted to delay the registration
of Registrable Securities for the same period as the delay in registering such other securities, (iii) each Stockholder is subject to
confidentiality obligations with respect to any information gained in this process or any other material non-public information he, she
or it obtains, (iv) each Stockholder or assignee or successor in interest is subject to all applicable laws relating to insider trading
or similar restrictions; and (v) if all of the Registrable Securities of the Stockholders cannot be so included due to Commission Comments
or Underwriter Cutbacks, then the Company may reduce, in accordance with the provisions of Section 1(c) hereof, the number of securities
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.
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(b) Initial Registration
Statement. At the election of each Stockholder pursuant to Section 1(a) hereof, the Company shall be required to include up to all
Piggyback Shares held by such Stockholder for resale and offer on a continuous basis pursuant to Rule 415 in the first Registration Statement
filed after the date hereof (the “Initial Registration Statement”); provided, however, that if all of
the Registrable Securities of the Stockholders cannot be so included due to Commission Comments or Underwriter Cutbacks, then the Company
may reduce, in accordance with the provisions of Section 1(c) hereof, the number of securities covered by the Initial Registration Statement
to the maximum number which would enable the Company to conduct such offering in accordance with the provisions of Rule 415.
(c) Cutback Provisions.
In the event all of the Registrable Securities cannot be or are not included in a Registration Statement due to Commission Comments or
Underwriter Cutbacks, the Company and the Stockholders agree that securities shall be removed from such Registration Statement in the
following order until no further removal is required by Commission Comments or Underwriter Cutbacks:
(i) First, any securities
held by any former employee, consultant or affiliate of the Company, pro rata based on the number of securities being registered for such
former employees, consultants or affiliates held by all of the former employees of the Company and any of their affiliates and successors
in interest, whether pursuant to agreement or otherwise and any other person with any registration rights outstanding on the date hereof;
(ii) Second, the securities
held by any broker/dealer or other FINRA registered member (“Compensation Securities”) and its members and affiliates,
if any, obtained solely by reason of providing services to the Company, which are being registered pursuant to any registration rights
agreement or otherwise; and
(iii) Third, the Registrable
Securities held by the Stockholders that are requested to be included in the Registration Statement, pro rata based on the number of Registrable
Shares held by each Stockholder in comparison to the number of Registrable Securities held by all Stockholders who have requested to include
any Registrable Securities in the Registration Statement.
(d) Mandatory Registrations.
In the event all of the Piggyback Shares of the Stockholders are not included in a Registration Statement due to Commission Comments or
Underwriter Cutbacks, the Company shall prepare and file an additional Registration Statement (the “Follow-up Registration
Statement”) with the Commission as promptly as practicable and in any event within ninety (90) days following the effectiveness
of the previously filed Registration Statement or such earlier date as is permitted by written guidance by the Commission; provided,
however, that the time period for filing the Follow-up Registration shall be extended to the extent that the Commission publishes
written Commission Guidance or the Company receives written Commission Guidance which provides for a longer period before a Follow-up
Registration Statement may be filed. The Follow-up Registration Statement shall cover the resale of all of the Registrable Securities
that were excluded from any previously filed Registration Statement. In the event that all of the Piggyback Shares have not been registered
in a Registration Statement after the Follow-up Registration Statement has been declared effective, the Company shall use commercially
reasonable efforts thereafter to register any remaining unregistered Registrable Securities, subject to the provisions of Section 1(e)
hereof.
2
(e) Filing; Content.
The Company will use its commercially reasonable efforts to cause each Registration Statement pursuant to which any Registrable Securities
are included, including the Initial or Follow-up Registration Statement, to contain the Plan of Distribution substantially similar to
that attached hereto as Schedule B. The Company shall use its commercially reasonable efforts to cause any Registration Statement
filed under this Section 1, including the Initial and Follow-up Registration Statement, to be declared effective under the Securities
Act as promptly as practicable after the filing thereof and in any event no later than the earlier of (x) five (5) business days after
the Commission notifies the Company that it will not review such Registration Statement or that it has no further comments thereto and
(y) ninety (90) days after the initial filing date of such Registration Statement. The Company shall respond to all Commission comments
as promptly as practicable, and in any event within fifteen (15) business days after receipt thereof, and shall request acceleration of
effectiveness at the earliest time permitted by the Commission. The Company shall keep such Registration Statement continuously effective
under the Securities Act until the earlier of (i) nine months after its Effective Date (provided, however, the nine month period shall
be extended for any Grace Period (as defined below)), (ii) such time as all of the Registrable Securities covered by such Registration
Statement have been publicly sold by the Stockholders, or (iii) such time as all of the Registrable Securities covered by such Registration
Statement may be sold by the Stockholders pursuant to Rule 144 without regard to both the volume limitations for sales as provided in
Rule 144 and the limitations for such sales provided in Rule 144(i), if applicable, 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 Stockholder
(“Effectiveness Period”). By 5:00 p.m. (New York City time) on the business day immediately following the Effective
Date of a Registration Statement, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act the
final Prospectus to be used in connection with sales pursuant to such Registration Statement (whether or not such filing is technically
required under such Rule).
(f) Termination of Registration
Rights. The registration rights afforded to the Stockholders under this Section 1 shall terminate on the earliest date when all Registrable
Securities of the Stockholder either: (i) have been publicly sold by the Stockholder pursuant to a Registration Statement, (ii) have been
covered by an effective Registration Statement which has been effective for an aggregate period of sixteen (16) months (whether or not
consecutive), provided, however, the time period shall be calculated so as to exclude any Grace Period (as defined below), or (iii) may
be sold by the Stockholder pursuant to Rule 144 without regard to both the volume limitations for sales as provided in Rule 144 and the
limitations for such sales provided in Rule 144(i), if applicable, 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 Stockholder.
2. Demand Registration
Rights.
(a) Demand Right. The
Stockholders as a group representing at least 50% of the Registrable Securities (a “Requesting Group”) shall
have a separate one-time right, by written notice to the Company, signed by all such Stockholders representing the Requesting Group (the
“Demand Notice”), to request the Company to register for resale all Registrable Securities included by the Requesting
Group in the Demand Notice (the “Demand Shares”) under and in accordance with the provisions of the Securities
Act by filing with the Commission a Registration Statement covering the resale of such Demand Shares (the “Demand Registration
Statement”) by the date that is ninety (90) days after the Company files its Form 10-Q with the U.S. Securities and Exchange
Commission covering the Company’s second fiscal quarter. A copy of the Demand Notice also shall be provided by the Company to each
of the other Stockholders, who will have fifteen (15) days to notify the Company in writing to include their Registrable Securities as
part of the Demand Shares, the failure of which, however, shall not in any way affect the rights of the Requesting Group pursuant to this
Section 2(a). The Demand Registration Statement required hereunder shall be on any form of registration statement then available for the
registration of the Registrable Securities, as selected by the Company in accordance with applicable law and regulation. The Company will
use its commercially reasonable efforts to file the Demand Registration Statement within forty-five (45) days of the receipt of the Demand
Notice, provided if the Demand Notice is given within the forty-five (45) days after the prior fiscal year end, then the Company will
use its reasonably commercial efforts to file the Demand Registration Statement within one-hundred five (105) days of the fiscal year
end of the Company. The Company shall use its commercially reasonable efforts to cause the Demand Registration Statement to be declared
effective under the Securities Act as promptly as practicable after the filing thereof and to keep the Demand Registration Statement continuously
effective under the Securities Act during the Effectiveness Period.
3
(b) Inclusion of Other Registrable
Shares and Cutback Provisions. If, as a result of Commission Comments, not all shares that are desired to be included in a Registration
Statement for the Demand Shares are able to be included in such Registration Statement, the provisions of Section 1(c) shall apply, subject
to the Demand Priority (as defined below) of the Requesting Group. Pursuant to the piggyback registration rights granted under this Agreement,
the Company may include the Registrable Shares of the other Stockholders which will be subject to the provision of Section 1(c) hereof,
except that under Section 1(c)(iii), there will be no cutback of the Registrable Securities of the Requesting Group until the Stockholders
of Piggyback Shares and the shares of any other person exercising piggyback rights under any other registration rights agreement (except
for any Compensation Securities, which shall have the priority established in Section 1(c)) have been removed, and thereafter if any further
Registrable Securities have to be removed then those of the Requesting Group will be removed pro rata (the “Demand Priority”).
Notwithstanding the foregoing, if any other securities of any person other than the Stockholders of the Requesting Group or the holders
of the Compensation Securities are included on the Demand Registration Statement, such securities will be removed, if required pursuant
to Commission Comments, after removal of the securities indicated in Section 1(c)(i) and before the securities indicated in Section 1(c)(ii),
as such persons decide among themselves, and if there is no agreement as to such removal provided to the Company within a reasonable time,
time being of the essence, then all the such securities will be removed.
(c) Termination of Demand
Registration Rights. The registration rights afforded to each Stockholder under this Section 2 shall terminate on the earliest date
when all Registrable Securities of the Stockholder either: (i) have been publicly sold by the Stockholder pursuant to a Registration Statement,
or (ii) may be sold by the Stockholder pursuant to Rule 144 without regard to both the volume limitations for sales as provided in Rule
144 and the limitations for such sales provided in Rule 144(i), if applicable, 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 Holder in its
reasonable discretion.
3. Registration Procedures.
Whenever any Registrable Securities are to be registered pursuant to this Agreement, the Company shall use its commercially reasonable
efforts to process the registration and sale of such Registrable Securities in accordance with the intended method of disposition thereof,
and pursuant thereto the Company shall have the following obligations:
(a) The Company shall prepare
and file with the Commission a Registration Statement with respect to such Registrable Securities and use its commercially reasonable
efforts to cause such Registration Statement to become effective.
(b) The Company shall prepare
and file with the Commission such amendments (including post-effective amendments) and supplements to a Registration Statement and the
Prospectus used in connection with such Registration Statement, which Prospectus is to be filed pursuant to Rule 424 promulgated under
the Securities Act, as may be necessary to keep such Registration Statement effective at all times during the Effectiveness Period, and,
during such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of
the Company covered by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in
accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement. In the
case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement by reason of
the Company filing a report on Forms 10-K, 10-Q or Current Report on Form 8-K, or any analogous report under the Exchange Act, the Company
shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements
with the Commission on the same day on which the Exchange Act report is filed which created the requirement for the Company to amend or
supplement such Registration Statement.
4
(c) The Company shall furnish
to each Stockholder holding Registrable Securities in any Registration Statement, without charge, (i) promptly after the same is prepared
and filed with the Commission at least one copy of such Registration Statement and any amendment(s) thereto, including financial statements
and schedules, all documents incorporated therein by reference (if requested by such seller), all exhibits, and each preliminary Prospectus,
(ii) upon the effectiveness of any Registration Statement, a copy of the Prospectus included in such Registration Statement and all amendments
and supplements thereto (or such other number of copies as such seller may reasonably request), and (iii) such other documents, including
copies of any preliminary or final Prospectus, as such seller may reasonably request from time to time in order to facilitate the disposition
of the Registrable Securities owned by such seller. Notwithstanding the foregoing, if the Registration Statement, Prospectus and any amendments
and supplements thereto are available on EDGAR, then for purposes of the delivery requirement under this Agreement will be deemed satisfied
by the availability of the documents on EDGAR.
(d) The Company shall use its
commercially reasonable efforts to (i) register and qualify, unless an exemption from registration and qualification applies, the resale
by any seller of the Registrable Securities covered by a Registration Statement under such other securities or “blue sky”
laws of all applicable jurisdictions in the United States, (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 Effectiveness Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect
at all times during the Effectiveness Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable
Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith
or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for
this Section 3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process
in any such jurisdiction.
(e) The Company shall use its
commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement,
or the suspension of the qualification of any of Registrable Securities for sale in any jurisdiction and, if such an order or suspension
is issued, to obtain the withdrawal of such order or suspension at the earliest practicable time and to notify the Stockholders holding
any Registrable Securities included in the offering under such Registration Statement of such order and the resolution thereof or its
receipt of actual notice of the initiation or threat of any proceeding for such purpose.
(f) The Company shall notify
the Stockholders in writing of the happening of any event, as promptly as practicable after becoming aware of such event, as a result
of which the Prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission
to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information),
and, subject to Section 3(r), promptly prepare a supplement or amendment to such Registration Statement to correct such untrue statement
or omission, and deliver ten (10) copies of such supplement or amendment to the Stockholders (or such other number of copies as a Stockholder
may reasonably request).
5
(g) The Company shall promptly
notify the Stockholders in writing (i) when a Prospectus or any Prospectus supplement or post-effective amendment has been filed, and
when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered
to the Stockholders by facsimile or email on the same day of such effectiveness or by overnight delivery), (ii) of any request by the
Commission for amendments or supplements to a Registration Statement or related Prospectus or related information, and (iii) of the Company’s
reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.
(h) If any Stockholder is required
under applicable securities laws to be described in a Registration Statement as an underwriter, then at the request of such Stockholder
in connection with such Stockholder’s due diligence requirements, the Company shall make available for inspection by (i) such Stockholder,
(ii) such Stockholder’s legal counsel, and (iii) one firm of accountants or other agents retained by such Stockholder (collectively,
the “Inspectors”), all pertinent financial and other records, and pertinent corporate documents and properties
of the Company (collectively, the “Records”), as shall be reasonably deemed necessary by each Inspector, and
cause the Company’s officers, directors and employees to supply all information which any Inspector may reasonably request; provided,
however, that each Inspector shall agree to hold in strict confidence and shall not make any disclosure (except to such Stockholder)
or use of any Record or other information which the Company determines in good faith to be confidential, and of which determination the
Inspectors are so notified, unless (a) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any
Registration Statement or is otherwise required under the Securities Act, (b) the release of such Records is ordered pursuant to a final,
non-appealable subpoena or order from a court or government body of competent jurisdiction, or (c) the information in such Records has
been made generally available to the public other than by disclosure in violation of this or any other agreement of which the Inspector
has knowledge. Each Stockholder agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or
in any other confidentiality agreement between the Company and any Stockholder) shall be deemed to limit any Stockholder’s ability
to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations.
(i) The Company shall hold in
confidence and not make any disclosure of information concerning any Stockholder provided to the Company by such Stockholder 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 final, non-appealable order from a court or governmental body of competent jurisdiction, (iv) such information
has been made generally available to the public other than by disclosure in violation of this Agreement or any other agreement, or (v)
such Stockholder provides information to the Company intended for inclusion in a Registration Statement. The Company agrees that it shall,
upon learning that disclosure of information concerning a Stockholder is sought in or by a court or governmental body of competent jurisdiction
or through other means, give prompt written notice to the Stockholder if permitted by applicable law or regulation and allow such Stockholder,
at such Stockholder’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such
information.
6
(j) The Company shall (i) if
applicable, use its commercially reasonable efforts to cause all of the Registrable Securities covered by a Registration Statement to
be listed on each 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, (ii) otherwise, use its commercially reasonable
efforts to secure designation and quotation of all of the Registrable Securities covered by a Registration Statement on any one of the
different levels of The NASDAQ Stock Market, or (iii) if, despite the Company’s commercially reasonable efforts, as applicable,
to satisfy, the preceding clauses (i) and (ii) the Company is unsuccessful in satisfying the preceding clauses (i) and (ii), to instead
secure the inclusion for quotation on the Over-the-Counter Bulletin Board for such Registrable Securities and, without limiting the generality
of the foregoing, to use its commercially reasonable efforts to encourage at least two market makers to register with the Financial Industry
Regulatory Authority, Inc. (“FINRA”) as such with respect to such Registrable Securities. For the avoidance
of doubt, subject to and in accordance with Section 5, the Company shall pay all fees and expenses of the Company in connection with satisfying
its obligation under this Section 3(k).
(k) If requested by a Stockholder,
the Company shall (i) as soon as practicable incorporate in a Prospectus supplement or post-effective amendment such information as such
Stockholder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without
limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor
and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) as soon as practicable make all required
filings of such Prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such Prospectus
supplement or post-effective amendment; and (iii) as soon as practicable, supplement or make amendments to any Registration Statement
if reasonably requested by such Stockholder holding any Registrable Securities.
(l) The Company shall cooperate
with each Stockholder who holds Registrable Securities being offered and, to the extent applicable, facilitate the timely preparation
and delivery of book-entry positions or certificates (not bearing any restrictive legend) representing the Registrable Securities to be
offered pursuant to a Registration Statement and enable such book-entry positions or certificates to be in such denominations or amounts,
as the case may be, as such Stockholder may reasonably request and registered in such names as such Stockholder may request. The Company
shall use commercially reasonable efforts to cause its transfer agent to cooperate in all such issuances and transfers and shall cause
Company counsel to deliver any legal opinion reasonably required by the transfer agent to remove restrictive legends from Registrable
Securities that may be sold pursuant to an effective Registration Statement or Rule 144 without restrictive legend.
(m) The Company shall use its
commercially reasonable efforts to cause the Registrable Securities covered by a Registration Statement to be registered with or approved
by such other U.S. governmental agencies or authorities, but only in matters not contemplated in Section 3(d) or reasonably related to
such matters (which matters are to be governed exclusively by Section 3(d)), as may be strictly necessary to consummate the disposition
of such Registrable Securities by the Stockholders strictly in accordance with the Plan of Distribution included in the Registration Statement
(as such Plan of Distribution may be modified from time to time in any filing with the Commission).
(n) The Company shall make generally
available to its security holders as soon as practicable, but not later than one-hundred five (105) days after the close of the period
covered thereby (or, if different, within the period permitted for the filing of reports on Forms 10-K or 10-Q), an earnings statement
(in form complying with, and in the manner provided by, the provisions of Rule 158 under the Securities Act) covering a twelve-month period
beginning not later than the first day of the Company’s fiscal quarter next following the Effective Date of a Registration Statement.
(o) The Company shall otherwise
use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission in connection with any registration
hereunder.
7
(p) Within five (5) business
days after a Registration Statement which covers Registrable Securities is ordered effective by the Commission, the Company shall deliver,
and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities confirmation that such
Registration Statement has been declared effective by the Commission in the form attached hereto as Exhibit A and the Irrevocable
Transfer Agent Instructions in the form attached hereto as Exhibit B.
(q) Notwithstanding anything
to the contrary herein, at any time after the Effective Date of a Registration Statement, the Company may delay the disclosure of material,
non-public information concerning the Company, the disclosure of which at the time is not, in the good faith opinion of the Board of Directors
of the Company, in the best interest of the Company and not, after consultation with legal counsel, otherwise required (a “Grace
Period”); provided, that the Company shall promptly (i) notify the Stockholders in writing of the existence of material,
non-public information giving rise to a Grace Period (provided that in each notice the Company will not disclose the content of such material,
non-public information to the Stockholders) and the date on which the Grace Period will begin, and (ii) notify the Stockholders in writing
of the date on which the Grace Period ends; and, provided further, that no Grace Period shall exceed sixty (60) consecutive days and during
any three hundred sixty-five (365) day period such Grace Periods shall not exceed an aggregate of one hundred twenty (120) days (each,
an “Allowable Grace Period”). For purposes of determining the length of a Grace Period above, the Grace Period
shall begin on and include the date on which the Company sends the notice referred to in clause (i) to the Stockholders and shall end
on and include the later of the date on which the Company sends the notice referred to in clause (ii) to the Stockholders and the date
referred to in such notice. The provisions of Section 3(f) hereof shall not be applicable during the period of any Allowable Grace Period.
Upon expiration of the Grace Period, the Company shall again be bound by Section 3(f) with respect to the information giving rise thereto
unless such material, non-public information is no longer applicable. Notwithstanding anything to the contrary, the Company shall cause
its transfer agent to deliver unlegended shares of Common Stock to a transferee of a Stockholder in connection with any sale of Registrable
Securities with respect to which such Stockholder has entered into a contract for sale and delivered a copy of the Prospectus included
as part of the applicable Registration Statement (unless an exemption from such Prospectus delivery requirements exists) prior to the
Company’s delivery of the notice of a Grace Period or, if earlier, prior to the Stockholder’s acquisition of knowledge of
the material, non-public information concerning the Company that gave rise to the Grace Period, but which the Stockholder has not yet
settled.
4. Obligations of the Stockholders.
(a) At least five (5) business
days prior to the first anticipated filing date of a Registration Statement, the Company shall notify the Stockholders in writing of the
information the Company requires from each Stockholder if the Stockholder’s Registrable Securities are to be included in such Registration
Statement. It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement
with respect to any Registrable Securities of a Stockholder that such Stockholder 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 effectiveness of the registration of such Registrable Securities and execute such documents in connection with
such registration as the Company may reasonably request. If a Stockholder does not provide such information in time for the filing of
a Registration Statement, then the Company may omit the Registrable Securities of such Stockholder from that Registration Statement until
such information is provided, but such omission shall not constitute a forfeiture or waiver of any registration rights afforded by this
Agreement.
(b) Each Stockholder, by such
Stockholder’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 any Registration Statement hereunder, unless the Stockholder has notified the Company
in writing of the Stockholder’s election to exclude all of the Stockholder’s Registrable Securities from such Registration
Statement.
8
(c) The Stockholders agrees
that, upon receipt of any notice from the Company of the happening of any event of the kind described in Sections 3(e) or 3(f) or of a
Grace Period under Section 3(r), the Stockholders will immediately discontinue disposition of Registrable Securities pursuant to any Registration
Statement(s) covering such Registrable Securities until receipt of the copies of the supplemented or amended Prospectus contemplated by
Sections 3(e) or 3(f) or receipt of notice that no supplement or amendment is required. Notwithstanding anything to the contrary, the
Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of a Stockholder in connection with
any sale of Registrable Securities with respect to which such Stockholder has entered into a contract for sale prior to the Company’s
delivery of a notice of the happening of any event of the kind described in Sections 3(e) or 3(f) or of any Grace Period, or, if earlier,
prior to such Stockholder’s acquisition of knowledge of the material, non-public information concerning the Company or the facts
or circumstances that gave rise to the Grace Period or of the Section 3(e) or 3(f) event, but which the Stockholder has not yet settled.
(d) Each Stockholder covenants
and agrees that it will comply with the Prospectus delivery requirements of the Securities Act as applicable to it or an exemption therefrom
in connection with sales of Registrable Securities pursuant to a Registration Statement.
5. Registration Expenses.
All expenses incident to the Company’s performance of or compliance with this Agreement, including without limitation all registration
and filing fees, fees and expenses of compliance with securities or blue sky laws, printing expenses, messenger and delivery expenses,
fees and disbursements of custodians, and fees and disbursements of counsel for the Company and all independent certified public accountants,
underwriters (excluding discounts, commissions and placement agent fees) and other Persons retained by the Company (all such expenses
being herein called “Registration Expenses”), shall be borne by the Company. Further, the Company shall pay
its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting
duties), the expense of any annual audit or quarterly review, the expense of any liability insurance and the expenses and fees for listing
the securities to be registered on each securities exchange on which similar securities issued by the Company are then listed.
6. Indemnification.
In the event any Registrable
Securities are included in a Registration Statement under this Agreement:
(a) To the fullest extent permitted
by law, the Company will, and hereby does, indemnify, hold harmless and defend each Stockholder, the directors, officers, members, partners,
employees, agents, representatives of, and each Person, if any, who controls a Stockholder within the meaning of the Securities Act or
the Exchange Act (each, an “Indemnified Person”), against any losses, claims, damages, liabilities, judgments,
fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement or expenses, joint or several, (collectively,
“Claims”) incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation
or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the Commission,
whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”),
to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement
or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities
or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”),
or the omission or alleged omission to state a material fact required to be stated therein 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 the light of the circumstances under which the statements therein were made, not
misleading, (iii) any violation or alleged violation by the Company of the Securities Act or the Exchange 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
pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters in the foregoing clauses (i) through (iv) being,
collectively, “Violations”). Subject to Section 6(c), the Company shall reimburse the Indemnified Persons, promptly
as such expenses are incurred and are due and payable, for any 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 6(a): (i) shall not apply to a Claim by an Indemnified Person 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 such Indemnified Person or by a Related
Information Provider expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof
or supplement thereto, (ii) shall not be available to the extent such Claim is based on a failure of a Stockholder to deliver or to cause
to be delivered the Prospectus made available by the Company, including a corrected Prospectus, if such Prospectus or corrected Prospectus
was timely made available by the Company pursuant to Section 3(c), and (iii) 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 or delayed.
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 a Stockholder pursuant to Section 10. “Related Information Provider”
means, in respect of any Indemnified Person, the Stockholder to which such Indemnified Person is related or another Indemnified Person
that is related to the Stockholder to which such Indemnified Person is related.
9
(b) To the fullest extent permitted
by law, in connection with any Registration Statement in which a Stockholder’s Registrable Securities are included or in which a
Stockholder is otherwise participating, such Stockholder will severally and not jointly indemnify and hold harmless the Company, each
of its directors, each of its officers who has signed the Registration Statement, each Person, if any, who controls the Company within
the meaning of the Securities Act, any underwriter, any other Stockholder or other Person selling securities in such Registration Statement
and any controlling person of any such underwriter or other Stockholder or other Person (each an “Other Indemnified Person”),
against any Claims or Indemnified Damages to which any of them may become subject, under the Securities Act, the Exchange Act or otherwise,
insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the
extent, that such Violation occurs in reliance upon and in conformity with written information furnished by such Stockholder or by a Related
Information Provider expressly for use in connection with such Registration Statement; and each such Stockholder will pay, as incurred,
any legal or other expenses reasonably incurred by any Other Indemnified Person intended to be indemnified pursuant to this Section 6(b),
in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained
in this Section 6(b) shall not apply to amounts paid in settlement of any such Claim if such settlement is effected without the prior
written consent of indemnifying Stockholder, which consent shall not be unreasonably withheld; provided, further, however,
that indemnifying Stockholder shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not
exceed the net proceeds to the Stockholder as a result of the sale of Registrable Securities pursuant to such Registration Statement,
except in the case of fraud by such Stockholder. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Other Indemnified Person and shall survive the transfer of the Registrable Securities by the Stockholder
pursuant to Section 10.
(c) Promptly after receipt by
an Indemnified Person or Other Indemnified Person under this Section 6 of notice of the commencement of any action or proceeding (including
any governmental action or proceeding) involving a Claim, such Indemnified Person or Other Indemnified Person shall, if a claim for indemnification
in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice
of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party
so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually
satisfactory to the indemnifying party and reasonably satisfactory to the Indemnified Person or the Other Indemnified Person, as the case
may be; provided, however, that an Indemnified Person or Other Indemnified Person shall have the right to retain its own
counsel with the fees and expenses of not more than one counsel for all such Indemnified Persons or all such Other Indemnified Persons
to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel of the Indemnified Person or Other Indemnified Person and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or Other Indemnified Person and any other party represented by such counsel
in such proceeding. The Other Indemnified Person or Indemnified Person, as applicable, shall cooperate fully with the indemnifying party
in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to such Other Indemnified Person or such Indemnified Person which relates to such action or
Claim. The indemnifying party shall keep the Other Indemnified Person or Indemnified Person, as applicable, reasonably apprised at all
times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any
settlement of any action, claim or proceeding effected without its prior written consent; provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent
of the Other Indemnified Person or Indemnified Person, as applicable, consent to entry of any judgment or enter into any settlement or
other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Other Indemnified
Person or such Indemnified Person of a release from all liability in respect to the Claim at issue, and such settlement shall not include
any admission as to fault on the part of such Other Indemnified Person or such Indemnified Person. Following indemnification as provided
for hereunder, the indemnifying party shall be subrogated to all rights of the Other Indemnified Person or Indemnified Person, as applicable,
with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to
deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the Indemnified Person or Other Indemnified Person, as applicable, under this Section 6, except
to the extent that the indemnifying party is materially prejudiced in its ability to defend such action.
(d) The indemnification required
by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when
bills are received or Indemnified Damages are incurred, subject to an undertaking by the Indemnified Person or the Other Indemnified Person,
as applicable, to return such payments to the extent a court of competent jurisdiction or other competent authority determines that such
payments were unlawful or were not required under this Agreement.
10
(e) Without any duplication
or multiplication of damages, the indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right
of the Other Indemnified Person or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying
party may be subject to pursuant to the law.
(f) Unless suspended by the
underwriting agreement applicable to any registration, the obligations of the Company and Stockholders under this Section 6 shall survive
the completion of any offering of Registrable Securities in a Registration Statement under this Agreement, or otherwise.
7. Contribution. To
the extent any indemnification by an indemnifying party is prohibited or limited by law, such indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law;
provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent
misrepresentation (within the meaning of Section 10(f) of the Securities Act) in connection with such sale shall be entitled to contribution
from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution
by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale
of such Registrable Securities pursuant to such Registration Statement
8. No Delay of Registration.
No Stockholder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration as the result of
any controversy that might arise with respect to the interpretation or implementation of this Agreement.
9. Reports under Securities
Exchange Act. With a view to making available to the Stockholders the benefits of Rule 144 promulgated under the Securities Act or
any other similar rule or regulation of the Commission that may at any time permit a Stockholder to sell securities of the Company to
the public without registration, the Company agrees to use its commercially reasonable efforts to continue to be a Reporting Company for
four years and further during such time it is a Reporting Company the Company agrees to use its commercially reasonable efforts 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 Securities Act and the Exchange Act so long as the
Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions
of Rule 144; and
(c) furnish to each Stockholder
so long as such Stockholder owns Registrable Securities, promptly upon request, (i) a written statement by the Company, if true, that
it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange 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 such Stockholder 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 each Stockholder to any transferee of all or any portion
of such Stockholder’s Registrable Securities if: (i) such Stockholder 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) immediately
following such transfer or assignment the further disposition of such securities by the transferee or assignee is or might be restricted
under the Securities Act and applicable state securities laws; and (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.
11
11. Subsequent Registration
Rights. The Company agrees that after conclusion of the offering contemplated by the Subscription Agreement and excluding any registration
rights agreement with the holder of any Compensation Securities, it will not grant to any person any registration right or proceed to
register any securities of any person unless it provides in such agreement or registration that any securities being registered under
such agreement or registration will be subject to the cutback provisions of this Agreement as provided in Section 1(c) and Section 2(b).
12. 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 the written consent of the Company and the holders of at least a majority
of the then outstanding Registrable Securities; provided, that no amendment or waiver may materially and adversely affect a Stockholder
disproportionately to other Stockholders or impose any lock-up, transfer restriction or waiver of registration rights on such Stockholder
without such Stockholder’s prior written consent. Any amendment so effected will be binding upon all Stockholders, whether or not
such Stockholder consents thereto.
13. Definitions.
(a) “Business Day”
means any day other than a Saturday, Sunday, or “market holiday” on which the New York Stock Exchange, Nasdaq, or bond markets
are closed.
(b) “Commission”
means the Securities and Exchange Commission.
(c) “Commission
Comments” means written comments pertaining solely to Rule 415 or other comments to the extent they relate to Rule
415 which are received by the Company from the Commission, and a copy of which shall have been provided by the Company to the Stockholders,
to a filed Registration Statement which limit the amount of shares which may be included therein to a number of shares which is less than
such amount sought to be included thereon as filed with the Commission.
(d) “Commission
Guidance” means (i) any publicly-available written or oral guidance, comments, requirements or requests of the Commission
staff, (ii) the Securities Act or (iii) the Exchange Act.
(e) “Common Stock”
means the common stock, $0.001 par value per share, of the Company.
(f) “Effective Date”
means, as to a Registration Statement, the date on which such Registration Statement is first declared effective by the Commission.
(g) Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time, together with the regulations promulgated thereunder.
(h) “Person”
means an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.
12
(i) “Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective Registration Statement in reliance upon Rule 430A promulgated under the Securities
Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable
Securities covered by such 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
(j) “Registrable
Securities” means (i) the Common Stock issued or issuable to the Stockholders or any assignee or successor in interest pursuant
to the Subscription Agreement, and (ii) any other shares of Common Stock or any other securities issued or issuable with respect to the
securities referred to in clause (i) by way of a stock dividend or stock split or in connection with an exchange or combination of shares,
recapitalization, merger, consolidation or other reorganization.
(k) “Registration
Statement” means any registration statement (including, without limitation, the Initial Registration Statement or the Follow-up
Registration Statement) required to be filed hereunder (which, at the Company’s option, may be an existing registration statement
of the Company previously filed with the Commission, but not declared effective), including (in each case) the Prospectus, amendments
and supplements to the Registration Statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all
material incorporated by reference or deemed to be incorporated by reference in the Registration Statement.
(l) “Reporting Company”
means a company that is obligated to file periodic reports under Sections 13 or 15(d) of the Securities Exchange Act.
(m) “Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission that may at any time permit the Stockholder to sell securities of the Company to
the public without registration.
(n) “Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.
(o) “Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.
(p) “Securities
Act” means the Securities Act of 1933, as amended from time to time together with the regulations promulgated thereunder.
(q) “Underwriter
Cutbacks” means any reduction in the number of shares suggested by any managing underwriter to be included in a registration
under a Registration Statement based upon the guidance in this Section 13(s). In connection with any offering involving an underwriting
of shares of the Company’s capital stock, the Company shall not be required under Section 1 to include any of the Stockholders’
securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters,
and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering
by the Company. If the total amount of securities, including Registrable Securities, requested by Stockholders to be included in such
offering exceeds the amount of securities to be sold, other than by the Company, that the underwriters determine in their sole discretion
is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such
securities, including Registrable Securities, which the underwriters determine in their sole discretion will not jeopardize the success
of the offering (the securities so included to be apportioned pro rata among the selling shareholders according to the total amount of
securities entitled to be included therein owned by each selling shareholder or in such other proportions as shall mutually be agreed
to by such selling shareholders); provided, that any such cutback will be effected in accordance with the priorities established by Section
1(c); and provided further that in no event shall the amount of securities of the selling Stockholders included in the offering be reduced
below 30% of the total amount of securities included in such offering.
13
14. [Intentionally Omitted.]1
15. Miscellaneous.
(a) A Person is deemed to be
a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities. If the Company
receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the
Company shall act upon the basis of instructions, notice or election received from such record owner of such Registrable Securities.
(b) Any notices, consents, waivers
or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have
been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile or email (provided that for notices
via facsimile, confirmation of transmission is mechanically or electronically generated and kept on file by the sending party, and that
for notices via email, such email is kept on file (whether electronically or otherwise) by the sending party and the sending party does
not receive an automatically generated message from the recipient’s email server that such email could not be delivered to such
recipient); or (iii) one business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses, facsimile numbers and email addresses for such communications shall be:
If to the Company:
RTB Digital, Inc.
4300 University Way, NE, Suite C
Seattle, WA 98105
Email: billso@roundtable.io
Attention: Bill Sornsin and Legal
Counsel
and
If to any Stockholder, at the
address for such Stockholder on the records of the Company, which may include the information on Schedule A hereto.
or to such other address and/or facsimile number
and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5)
days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver
or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date,
recipient facsimile number and an image of the first page of such transmission or (C) provided by a courier or overnight courier service
shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service
in accordance with clause (i), (ii) or (iii) above, respectively. A copy of the email transmission containing the time, date and recipient
e-mail address shall be rebuttable evidence of receipt by email in accordance with clause (ii) above.
14
(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) All questions concerning
the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Delaware,
without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of Delaware. Each party hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in the State of Delaware, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not
to assert in any 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 brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. 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 to such party at the address for such notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any
right to serve process in any manner permitted by law. 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 in that jurisdiction
or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES
ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH
OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
(e) This Agreement and the instruments
referenced herein and therein 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 instruments referenced herein and therein 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, this Agreement shall inure to the benefit of and be binding upon the permitted 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) Any documents required to
be supplied by the Company that may be viewed on readily available, public websites, such as EDGAR, need not be delivered hereunder and
the public availability will be deemed to have satisfied fully the delivery required hereunder.
(i) This Agreement may be executed
in identical 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 or other electronic transmission
(such as but not limited to an email attachment in PDF format) of a copy of this Agreement bearing the signature of the party so delivering
this Agreement. This Agreement may also be executed by electronic signature of such Person.
15
(j) 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 any 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.
(k) All consents and other determinations
required to be made by a Stockholders pursuant to this Agreement shall be made, unless otherwise specified in this Agreement, by such
Stockholder.
(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) This Agreement is intended
for the benefit of, and shall be binding upon, the parties hereto and their respective successors and permitted assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person.
(n) The obligations of each
Stockholder hereunder are several and not joint with the obligations of any other Stockholder, and no provision of this Agreement is intended
to confer any obligations on a Stockholder vis-à-vis any other Stockholder. Nothing contained herein, and no action taken by any
Stockholder pursuant hereto, shall be deemed to constitute the Stockholders as a partnership, an association, a joint venture or any other
kind of entity, or create a presumption that the Stockholders are in any way acting in concert or as a group with respect to such obligations
or the transactions contemplated herein.
(o) Currency. As used
herein, “Dollar”, “US Dollar” and “$” each mean the lawful money of the United States.
[Signature pages follow immediately]
16
IN WITNESS WHEREOF,
the parties have executed this Registration Rights Agreement as of the date first written above.
COMPANY:
RTB DIGITAL, INC.
By:
James C. Heckman,
Chief Executive Officer
[Stockholder Signature Page Follows]
17
STOCKHOLDER SIGNATURE PAGE FOR REGISTRATION
RIGHTS AGREEMENT
WITH RTB DIGITAL, INC.
STOCKHOLDER
PRINT NAME: _________
By:
ADDRESS:
EMAIL: _________
FAX (if applicable): __________________________
TELEPHONE: ______________
18
EXHIBIT A
FORM OF NOTICE OF EFFECTIVENESS
OF REGISTRATION STATEMENT
[Transfer Agent]
[Address]
Attention:
Re: RTB Digital, Inc.
Ladies and Gentlemen:
[We are][I am] counsel to RTB
Digital, Inc., a Nevada corporation (the “Company”), and have represented the Company in connection with that certain Registration
Rights Agreement (the “Registration Rights Agreement”) between the Company and several holder of common stock of the Company
listed therein (the “Stockholders”) pursuant to which the Company agreed, among other things, to register the Registrable
Securities (as defined in the Registration Rights Agreement), under the Securities Act of 1933, as amended (the “1933 Act”).
In connection with the Company’s obligations under the Registration Rights Agreement, on ____________ ___, 20__, the Company filed
a registration statement on Form S-[1 or 3] (File No. 333-_____________) (the “Registration Statement”) with the Securities
and Exchange Commission (the “SEC”) relating to the Registrable Securities which names the Stockholder as a selling stockholder
thereunder.
In connection with the foregoing,
[we][I] advise you that upon review of EDGAR the SEC has entered an order declaring the Registration Statement effective under the 1933
Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and [we][I] have no knowledge, without further inquiry, that any
stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by,
the SEC and the Registrable Securities are available for resale under the 1933 Act pursuant to the Registration Statement.
If applicable, you may receive
notices from the Company pursuant to the Company’s rights or obligations under the Registration Rights Agreement in connection with
stop orders or other restrictions on transfer of the shares included in such Registration Statement, but [we][I] [are][am] not obligated
to update this letter or otherwise inform you of any such stop order or restriction.
[Other applicable disclosure
to be inserted here, if appropriate.]
Very truly yours,
19
EXHIBIT B
IRREVOCABLE TRANSFER AGENT INSTRUCTIONS
_______________, 2020
[Addressed to Transfer Agent]
_______________________
_______________________
Attention: [________________________]
Ladies and Gentlemen:
Reference is made to that certain
Registration Rights Agreement, dated as of [●], 2020 (the “Agreement”), by and among RTB Digital, Inc.,
a Nevada corporation (the “Company”), and _________________________ (the “Stockholder(s)”), pursuant
to which the Company is obligated to register certain shares held by the Stockholder (the “Stockholder Shares”) of
Common Stock of the Company, par value $0.001 per share (the “Common Stock”).
This letter shall serve as our
irrevocable authorization and direction to you (provided that you are the transfer agent of the Company at such time) to issue shares
of Common Stock upon transfer or resale of the Stockholder Shares, unless we have otherwise informed you of the termination of effectiveness
of the registration statement in which the Stockholder Shares are included, a stop order or another transfer restriction. We may also
later inform you that after the termination of effectiveness of such registration statement that a registration statement in which the
Stockholder’s Shares are included has been declared and remains effective, or that such stop order has been lifted or that such
transfer restriction is not applicable, in which case this authorization and direction shall be reinstated and be effective.
You acknowledge and agree that
so long as you have previously received (a) written confirmation from the Company’s legal counsel that either (i) a registration
statement covering resales of the Stockholder Shares has been declared and remains effective by the Securities and Exchange Commission
(the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”), or (ii) sales of the
Stockholder Shares may be made in conformity with Rule 144 under the 1933 Act (“Rule 144”), (b) if applicable, a copy
of such registration statement, and (c) notice from legal counsel to the Company or any Stockholder that a transfer of Stockholder Shares
has been effected either pursuant to the registration statement (and a prospectus delivered to the transferee) or pursuant to Rule 144,
then as promptly as practicable, you shall issue book-entry positions or certificates representing the Stockholder Shares registered
in the names of such transferees, and such book-entry positions or certificates shall not bear any legend restricting transfer of the
Common Stock evidenced thereby and should not be subject to any stop-transfer restriction; provided, however, that if such shares of Common
Stock are not registered for resale under the 1933 Act or able to be sold under Rule 144, then the certificates for such Common Shares
shall bear the following legend:
THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE
OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY
BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.
20
A form of written confirmation
from the Company’s outside legal counsel that a registration statement covering resales of the Stockholder Shares has been declared
effective by the SEC under the 1933 Act is attached hereto. We will inform you of any stop orders or other transfer restrictions.
Please execute this letter in
the space indicated to acknowledge your agreement to act in accordance with these instructions. Should you have any questions concerning
this matter, please contact me at ____________.
Very truly yours,
RTB DIGITAL, INC.
By:
XXXX,
Chief Executive Officer
THE FOREGOING INSTRUCTIONS ARE
ACKNOWLEDGED AND AGREED TO
this ___ day of ________________, 2026
[TRANSFER AGENT]
By:
Name:
Title:
Enclosures
SCHEDULE A
LIST OF STOCKHOLDERS
Name
Address
SCHEDULE B
SELLING STOCKHOLDERS
The shares of common
stock being offered by the selling stockholders are those issuable to the selling stockholders upon under a 2Subscription
Agreement at a purchase price of $11.13 per share. For additional information regarding the issuance of the shares of Common Stock,
see “Private Placement of Common Stock, 2026” above. We are registering the shares of common stock in order to permit
the selling stockholders to offer the shares for resale [from time to time]. Except for ____________, the selling stockholders have
not had any material relationship with us within the past three years.
The table below lists the selling stockholders
and other information regarding the beneficial ownership (as determined under Section 13(d) of the Securities Exchange Act of 1934 (“Exchange
Act”), as amended, and the rules and regulations thereunder) of the shares of common stock held by each of the selling stockholders.
The second column lists the number of shares of common stock beneficially owned by the selling stockholders, based on their respective
ownership of shares of common stock as of ________, 20__, [_____________ and exercise of the outstanding options and warrants held by
each such selling stockholder on that date but taking account of any limitations on conversion and exercise set forth therein].
The third column lists the shares of common stock
being offered by this prospectus by the selling stockholders [and does not take into account any limitations (i) under any lock up agreements,
or (ii) exercise of the options and warrants set forth therein].
In accordance with the terms of a registration
rights agreement with the holders of the Common Stock, this prospectus generally covers the resale of the shares of common stock purchased
under the Subscription Agreement [and _______________ (without regard to any limitations on conversion or exercise contained therein)
as of the trading day immediately preceding the date this registration statement was initially filed with the SEC]. The fourth column
assumes the sale of all of the shares offered by the selling stockholders pursuant to this prospectus.
See “Plan of Distribution.”
Name of Selling Stockholder
Number of Shares of
Common Stock
Owned Prior to the Offering
Maximum Number
of Shares of
Common Stock to
be Sold Pursuant to
this Prospectus
Number of
Shares of
Common Stock
Owned After the
Offering
PLAN OF DISTRIBUTION
We are registering the shares of common stock
purchased by the selling stockholders to permit the resale of these shares of common stock by them from time to time after the date of
this prospectus. We will not receive any of the proceeds from the sale by the selling stockholders of the shares of common stock. We will
bear all fees and expenses incident to our obligation to register the shares of common stock.
The selling stockholders may sell all or a portion
of the shares of common stock held by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers
or agents. If the shares of common stock are sold through underwriters or broker-dealers, the selling stockholders will be responsible
for underwriting discounts or commissions or agent’s commissions. The shares of common stock may be sold in one or more transactions
at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale or at negotiated
prices. These sales may be made in transactions, which may involve crosses or block transactions, pursuant to one or more of the following
methods:
· on any securities exchange or quotation service on which
the securities may be listed or quoted at the time of sale;
· in the over-the-counter market;
· in transactions otherwise than on these exchanges or systems
or in the over-the-counter market;
· through the writing or settlement of options, whether such
options are listed on an options exchange or otherwise;
· 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;
· short sales made after the date the Registration Statement
is declared effective by the SEC;
· broker-dealers may agree with a selling security holder to
sell a specified number of such shares at a stipulated price per share;
· a combination of any such methods of sale; and
· any other method permitted pursuant to applicable law.
The selling stockholders may also sell shares
of common stock under Rule 144 promulgated under the Securities Act of 1933, as amended (“Securities Act”), if available,
rather than under this prospectus. In addition, the selling stockholders may transfer the shares of common stock by other means not described
in this prospectus. If the selling stockholders effect such transactions by selling shares of common stock to or through underwriters,
broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or
commissions from the selling stockholders or commissions from purchasers of the shares of common stock for whom they may act as agent
or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents
may be in excess of those customary in the types of transactions involved). In connection with sales of the shares of common stock or
otherwise, the selling stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of
the shares of common stock in the course of hedging in positions they assume. The selling stockholders may also sell shares of common
stock short and deliver shares of common stock covered by this prospectus to close out short positions and to return borrowed shares in
connection with such short sales. The selling stockholders may also loan or pledge shares of common stock to broker-dealers that in turn
may sell such shares.
The selling stockholders may pledge or grant a
security interest in some or all of their shares of common stock owned by them and, if they default in the performance of their secured
obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time pursuant to this prospectus
or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending, if necessary, the
list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus.
The selling stockholders also may transfer and donate the shares of common stock in other circumstances in which case the transferees,
donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.
To the extent required by the Securities Act and
the rules and regulations thereunder, the selling stockholders and any broker-dealer participating in the distribution of the shares of
common stock may be deemed to be “underwriters” within the meaning of the Securities Act, and any commission paid, or any
discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities
Act. At the time a particular offering of the shares of common stock is made, a prospectus supplement, if required, will be distributed,
which will set forth the aggregate amount of shares of common stock being offered and the terms of the offering, including the name or
names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the selling stockholders
and any discounts, commissions or concessions allowed or re-allowed or paid to broker-dealers.
Under the securities laws of some states, the
shares of common stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states
the shares of common stock may not be sold unless such shares have been registered or qualified for sale in such state or an exemption
from registration or qualification is available and is complied with.
There can be no assurance that any selling stockholder
will sell any or all of the shares of common stock registered pursuant to the registration statement, of which this prospectus forms a
part.
The selling stockholders and any other person
participating in such distribution will be subject to applicable provisions of the Securities Act and the Exchange Act and in each case
together with the rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange
Act, which may limit the timing of purchases and sales of any of the shares of common stock by the selling stockholders and any other
participating person. To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of
the shares of common stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may
affect the marketability of the shares of common stock and the ability of any Person to engage in market-making activities with respect
to the shares of common stock.
We will pay all expenses of the registration of
the shares of common stock pursuant to the registration rights agreement, estimated to be $[ ] in total,
including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities or “blue
sky” laws; provided, however, a selling stockholder will pay all underwriting discounts and selling commissions, if any. We will
indemnify the selling stockholders against liabilities, including some liabilities under the Securities Act in accordance with the registration
rights agreements or the selling stockholders will be entitled to contribution. We may be indemnified by the selling stockholders against
civil liabilities, including liabilities under the Securities Act that may arise from any written information furnished to us by the selling
stockholder specifically for use in this prospectus, in accordance with the related registration rights agreements or we may be entitled
to contribution.
Once sold under the registration statement, of
which this prospectus forms a part, the shares of common stock will be freely tradable in the hands of persons other than our affiliates.
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