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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of The</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):
May 25, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LUXEYARD, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; border-bottom: windowtext 1pt solid; text-align: center; font-weight: bold">Delaware</TD>
    <TD STYLE="width: 2%; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 31%; border-bottom: windowtext 1pt solid; text-align: center; font-weight: bold">333-168066</TD>
    <TD STYLE="width: 2%; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 31%; border-bottom: windowtext 1pt solid; text-align: center; font-weight: bold">30-0473898</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or other jurisdiction of</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Commission File Number)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(IRS Employer Identification No.)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">incorporation)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 75%; border-collapse: collapse">
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    <TD STYLE="width: 78%; border-bottom: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>8884 Venice Boulevard</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Los Angeles, CA</B></P></TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 20%; border-bottom: windowtext 1pt solid; text-align: center; font-weight: bold">90034</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Address of principal executive offices)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Zip Code)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 100%; text-align: center">Registrant&rsquo;s telephone number, including area code:<B> (323) 488-3574</B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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    <TD STYLE="width: 24%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 52%; border-bottom: windowtext 1pt solid; text-align: center">N/A</TD>
    <TD STYLE="width: 24%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Former name or former address, if changed since last report)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(<U>see</U> General Instruction A.2. below):</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d
-2(b))</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e
-4(c))</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>&nbsp;</B></P>

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    <TD STYLE="width: 10%; text-align: justify; font-weight: bold">Item 1.01</TD>
    <TD STYLE="width: 90%; text-align: justify; font-weight: bold">Entry into a Material Definitive Agreement.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Luxeyard Inc.
(the &ldquo;Company&rdquo;) entered in a Securities Purchase Agreement (the &quot;Purchase Agreement&quot;) dated May 24,
2012 among the Company and the investors named therein (each, an &ldquo;Investor&rdquo; and collectively
the &ldquo;Investors&rdquo;). The Purchase Agreement provides for the sale by the Company to the Investors
(the &ldquo;Offering&rdquo;) of units consisting of an aggregate of up to (i) 10,000,000 shares of its 8% Convertible
Preferred Stock common stock (the &ldquo;Shares&rdquo;), (ii) Series C warrants <FONT STYLE="font-family: Times New Roman, Times, Serif; color: black; background-color: white">to
purchase up to 10,000,000 shares of its common stock which have a five-year term and an initial per share exercise price of
$0.50</FONT>, subject to adjustment (the &ldquo;Series C Warrants&rdquo;), (iii) Series D warrants to purchase shares of
common stock <FONT STYLE="font-family: Times New Roman, Times, Serif; color: black; background-color: white">which have a 90
day term and an initial per share exercise price of $</FONT>0.35, subject to adjustment (the &ldquo;Series
D Warrants&rdquo;), and (iv) Series E warrants <FONT STYLE="font-family: Times New Roman, Times, Serif; color: black; background-color: white">which
have a five-year term and an initial per share exercise price of $</FONT>0.50, subject to adjustment (the &ldquo;Series
E Warrants&rdquo;). The price per unit was $0.35 for an aggregate purchase price of up to $3,500,000 (the
&ldquo;Purchase Price&rdquo;). The transactions contemplated by the Purchase Agreement are expected to close promptly,
subject to customary closing conditions. Maxim Group LLC (the &ldquo;Placement Agent&rdquo;) was the placement agent for the
Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Securities Purchase Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Purchase Agreement contains the provisions
set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>Variable Securities</I>.
For 60 days after the initial registration is declared effective (the &ldquo;Effective Date&rdquo;) by the Securities and Exchange
Commission (the &ldquo;SEC&rdquo;) under the terms of the registration rights agreement (the &ldquo;Registration Rights Agreement&rdquo;)
to be entered into in connection with the Offering, the Company may not, without the consent of the holders of at least a majority
of the aggregate number of Registrable Securities (as defined in the Registration Rights Agreement) (the &ldquo;Requisite Holders&rdquo;),
in any manner, issue or sell any rights, warrants or options to subscribe for or purchase common stock or directly or indirectly
convertible into or exchangeable or exercisable for common stock at a price which varies or may vary with the market price of the
common stock, including by way of one or more reset(s) to any fixed price unless the conversion, exchange or exercise price of
any such security cannot be less than the then applicable conversion price of the Shares with respect to the Common Stock into
which any Share is convertible.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>&nbsp;</I></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>Additional
Issuances of Securities.</I> For 60 days following the Effective Date (the &ldquo;Trigger Date&rdquo;), the Company may not file
any registration statement with the SEC other than the Registration Statement. From the date of the Purchase Agreement until the
Trigger Date, without the consent of the Requisite Holders, the Company may not offer, sell, grant any option to purchase, or otherwise
dispose of (or announce any offer, sale, grant or any option to purchase or other disposition of) any of its or its subsidiaries&rsquo;
equity or equity equivalent securities, including without limitation any debt, preferred stock or other instrument or security
that is, at any time during its life and under any circumstances, convertible into or exchangeable or exercisable for shares of
common stock or common stock equivalents (any such offer, sale, grant, disposition or announcement being referred to as a &ldquo;Subsequent
Placement&rdquo;). Notwithstanding the foregoing, at any time following the thirtieth (30<SUP>th</SUP>) day after the closing date,
the Company is allowed, subject to complying with the Purchase Agreement, to complete a Subsequent Placement(s) of up to an aggregate
of $5.0 million; provided, that, without the consent of the Requisite Holders, the Company is not entitled to file a registration
statement covering the securities sold in such placement(s) until at least ninety (90) days following the Trigger Date.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>&nbsp;</I></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>No Reverse
Stock Splits</I>. For a two year period ending on the second anniversary of the closing date, the Company is prohibited, without
the prior written consent of the Requisite Holders, from consummating or announcing a reverse stock split with respect to its common
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Series C Warrants have
a five-year term and are exercisable for an aggregate of up to 10,000,000 shares of the Company&rsquo;s common stock at
an initial per share exercise price of $0.50, subject to adjustment as set forth below. The Series D Warrants have a 90 day
term and are exercisable for an aggregate of up to 5,000,000 shares of the Company&rsquo;s common stock at an initial per
share exercise price of $0.35, subject to adjustment as set forth below. The Series E Warrants have a five-year term and
are exercisable for an aggregate of up to 5,000,000 shares of the Company&rsquo;s common stock at an initial per share
exercise price of $0.50, subject to adjustment as set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exercise prices of the Series C Warrants,
Series B Warrants and Series E Warrants are subject to adjustment upon certain events, such as stock splits, combinations, dividends,
distributions, reclassifications, mergers or other corporate changes. In addition, subject to certain exceptions, if at any time
after the closing date, the Company issues or sells any shares of its common stock (including options and convertible securities)
at a price per share less than the exercise price of the applicable Warrant (each, a &ldquo;Dilutive Issuance&rdquo;), then immediately
after such Dilutive Issuance, the exercise price of the applicable Warrants then in effect shall be reduced to an amount equal
to the price per share of such Dilutive Issuance. The warrants can be exercised on a cashless basis if certain conditions are met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Purchase Rights</I>. In addition to
any adjustments pursuant to the warrant, if at any time the Company grants, issues or sells any options, convertible securities
or rights to purchase stock, warrants, securities or other property pro rata to the record holders of common stock, then the holder
will be entitled to acquire the aggregate purchase rights which the holder could have acquired if the holder had held the number
of shares of common stock acquirable upon complete exercise of the warrant immediately before the date on which a record is taken
for the grant, issuance or sale of such purchase rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Fundamental
Transactions. </I> The Company may not enter into or be party to a Fundamental Transaction (as defined in the warrant) unless (i)
the successor entity assumes in writing all of the obligations of the Company under the warrant in form and substance reasonably
satisfactory to the holders of a majority of the Company warrants outstanding on such date</FONT> (the &ldquo;<FONT STYLE="font-size: 10pt">Required
Holders&rdquo;) and approved by the Required Holders prior to such Fundamental Transaction, and (ii) the successor entity is a
publicly traded corporation whose common stock is quoted on or listed for trading on an approved exchange. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Registration Rights Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Offering, the Company
will enter into a Registration Rights Agreement with the Investors granting the Investors registration rights with respect to the
Shares, and the shares of common stock underlying the Shares, the Series C Warrants, Series D Warrants, Series E Warrants, and
shares of common stock issuable as issued as payment for any dividends due owing on the Shares. The Company will file a registration
statement (&ldquo;Registration Statement&rdquo;) with the SEC to register the Registrable Securities within 15 days after the execution
of the Purchase Agreement and have it declared effective within 75 days after the such date or 105 days in the event of a full
review of the Registration Statement by the SEC (&ldquo;Required Effective Date&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the Registration Statement is not declared
effective by the Required Effective Date, the Company is required to pay partial liquidated damages to each Investor in the amount
equal to 1% of such Purchaser&rsquo;s subscription amount subscribed for by such Investor for each 30-day period for which the
Company is not compliance, subject to a cap of six percent (6%) of such Purchaser&rsquo;s purchase amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; text-align: justify; font-weight: bold">Item 3.02</TD>
    <TD STYLE="width: 90%; text-align: justify; font-weight: bold">Unregistered Sales of Equity Securities.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The information contained in Item 1.01
above is incorporated herein by reference in response to this Item 3.02.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Placement Agent is entitled upon the
closing of the Offering to securities purchase warrants (the &ldquo;Placement Agent Warrant&rdquo;), covering a number of securities
equal to eight percent (8%) of the total number of securities being sold in the Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 3.03 Material Modification to rights
of Security Holders.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Certificate of Designation- 8% Convertible
Perpetual Preferred Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">On May 25, 2012,
the Company filed with the Secretary of State of the State of Delaware a Certificate of Designation (the &ldquo;Certificate&rdquo;)
establishing the voting powers, designations, preferences, limitations, restrictions and relative rights of the Shares to be sold
in the Offering.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>&nbsp;</I></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>Dividends<B>.</B></I>
Each holder of Shares is entitled to receive dividends at the rate of eight percent per year of the original issue price. The preferred
stock dividends are cumulative, whether or not earned or declared, and are to be paid quarterly. The Company may elect pay dividends
in cash or shares (if certain notice and certain equity conditions are satisfied).</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>&nbsp;</I></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>Liquidation
Rights.</I> Upon the voluntary or involuntary liquidation, winding-up or dissolution of the Company, the holders of the Shares
may exercise their rights to convert all or a portion of their Shares into common stock. Each holder of Shares that does not exercise
its rights to convert shall be entitled to receive out of the assets of the Company, for each Share, cash in an amount equal to
(i) the original issue price plus (ii) all accrued but unpaid dividends on the shares, before any payment or distribution shall
be made on the Junior Stock (as defined in the Certificate), but after payment of all outstanding indebtedness and all amounts
due on liquidation, dissolution or winding-up in respect of all preferred stock of the Company which by its terms is senior to
the Shares, if any. If the assets of the Company available for distribution to the holders of the Shares upon any liquidation,
dissolution or winding-up of the Company are insufficient to pay the full preferential amount to which the holders are entitled,
then the holders of the Shares shall share in such distribution of assets pro rata in accordance with the amount that would be
payable on such distribution if the amounts to which the holders of Shares were entitled were paid in full. A Fundamental Transaction
(as defined in the Certificate) shall be treated as a liquidation for purposed of the liquidation preference contained in the Certificate.
Prior to the consummation of such Fundamental Transaction, the holders of Shares may exercise their rights to convert all or a
portion of their Shares into Common Stock.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>&nbsp;</I></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>Voting Rights</I>.
With respect to any matter on which the holders of common stock shall be entitled to vote, the holders of Shares shall vote together
with the holders of common stock, and not as a separate class, and each share shall have a number of votes equal to the number
of shares of common stock then issuable upon conversion.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>&nbsp;</I></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>Optional Conversion
by Holder</I>. The holder of any Shares has the right at such holder's option to convert the Shares into such number of shares
of fully paid and nonassessable shares of common stock as is determined by dividing the original issue price by the conversion
price, multiplied by the number of Shares being converted.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>&nbsp;</I></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><I>Adjustments
to Conversion Price.</I> The conversion price of the Shares are subject to adjustment upon certain events, such as stock splits,
combinations, dividends, distributions, reclassifications, reorganizations, mergers or other corporate changes. In addition, subject
to certain exceptions, if at any time after the Closing Date, the Company issues or sells any shares of its common stock (including
options and convertible securities) at a price per share less than the applicable conversion price of the Shares then in effect
issue price (each, a &ldquo;Dilutive Issuance&rdquo;), then immediately after such Dilutive Issuance, the conversion price of the
Shares then in effect shall be reduced to an amount equal to the price per share of such Dilutive Issuance.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 5.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendments to Articles of
Incorporation or Bylaws; Change in fiscal Year.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The information contained in Item 3.03
above is incorporated herein by reference in response to this Item 5.03.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing descriptions of the Offering,
the Purchase Agreement, Series C Warrants, Series D Warrants, Series E Warrants, Registration Rights Agreement, Placement Agent
Warrant and Certificate are qualified in their entirety by reference to the provisions of the Purchase Agreement, Form of Series
C Warrant, Form of Series D Warrant, Form of Series E Warrant, Registration Rights Agreement, Placement Agent Warrant and Certificate
filed as Exhibits 10.1, 10.2, 10.3, 10.4, 10.5, 10. 6 and 3.1 to this Current Report on Form 8-K (this &ldquo;Report&rdquo;), respectively,
which are incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Shares and warrants were offered and
sold in reliance upon exemptions from registration pursuant to Section 4(2) of the Securities Act and Rule 506 of Regulation D
(&ldquo;Regulation D&rdquo;) promulgated under the Securities Act. The Company made this determination based on the representations
of the investors which included, in pertinent part, that each such investor was an &ldquo;accredited investor&rdquo; within the
meaning of Rule 501 of Regulation D and upon such further representations from each investor that (i) such investor is acquiring
the securities for its own account for investment and not for the account of any other person and not with a view to or for distribution,
assignment or resale in connection with any distribution within the meaning of the Securities Act, (ii) such investor agrees not
to sell or otherwise transfer the purchased securities or shares underlying such securities unless they are registered under the
Securities Act and any applicable state securities laws, or an exemption or exemptions from such registration are available, (iii)
such investor has knowledge and experience in financial and business matters such that such investor is capable of evaluating the
merits and risks of an investment in us, (iv) such investor had access to all of the Company&rsquo;s documents, records, and books
pertaining to the investment and was provided the opportunity to ask questions and receive answers regarding the terms and conditions
of the Offering and to obtain any additional information which the Company possessed or was able to acquire without unreasonable
effort and expense, and (v) such investor has no need for the liquidity in its investment in us and could afford the complete loss
of such investment. In addition, there was no general solicitation or advertising for securities issued in reliance upon Regulation
D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; text-align: justify; font-weight: bold">Item 9.01&nbsp;</TD>
    <TD STYLE="width: 90%; text-align: justify; font-weight: bold">Financial Statements and Exhibits.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(d)</TD><TD STYLE="text-align: justify">Exhibits.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain of the agreements filed as exhibits
to this Report contain representations and warranties by the parties to the agreements that have been made solely for the benefit
of the parties to the agreement. These representations and warranties:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">may have been qualified by disclosures that were made to the other parties in connection with the
negotiation of the agreements, which disclosures are not necessarily reflected in the agreements;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">may apply standards of materiality that differ from those of a reasonable investor; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">were made only as of specified dates contained in the agreements and are subject to subsequent
developments and changed circumstances.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accordingly, these representations and
warranties may not describe the actual state of affairs as of the date that these representations and warranties were made or at
any other time. Investors should not rely on them as statements of fact.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; text-align: center; font-weight: bold">Exhibit<BR> Number</TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 88%; border-bottom: windowtext 1pt solid; text-align: left; font-weight: bold">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">3.1</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: left">Certificate of Designation - 8% Convertible Perpetual Preferred Stock</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">10.1</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: left">Securities Purchase Agreement dated May 24, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">10.2</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: left">Form of Series C Warrant dated May XX, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">10.3</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: left">Form of Series D Warrant dated May XX, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">10.4</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: left">Form of Series E Warrant dated May XX, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">10.5</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: left">Registration Rights Agreement dated May 24, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">10.6</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: left">Form of Placement Agent Warrant dated May XX, 2012</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">Dated: May 25, 2012</TD>
    <TD COLSPAN="2" STYLE="text-align: left; font-weight: bold">LUXEYARD, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 3%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 47%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-align: left; font-style: italic">/s/ Braden Richter</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">Braden Richter</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">President and Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0"></P>

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{"company-data": {"conformed-name": "Luxeyard, Inc.", "cik": "0001493587", "assigned-sic": "7389", "irs-number": "300473898", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-168066", "film-number": "12869347"}, "business-address": {"street1": "4063 GLENCOE AVE.", "street2": "SUITE A", "city": "MARINA DEL REY,", "state": "CA", "zip": "90292", "phone": "(323)-488-3574"}, "mail-address": {"street1": "4063 GLENCOE AVE.", "street2": "SUITE A", "city": "MARINA DEL REY,", "state": "CA", "zip": "90292"}, "former-company": {"former-conformed-name": "TOP GEAR INC", "date-changed": "20100607"}}
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):
May 25, 2012
LUXEYARD, INC.
(Exact name of registrant as specified in
its charter)
Delaware
333-168066
30-0473898
(State or other jurisdiction of
(Commission File Number)
(IRS Employer Identification No.)
incorporation)
8884 Venice Boulevard
Los Angeles, CA
90034
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(323) 488-3574
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(
see
General Instruction A.2. below):
¨
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))
Item 1.01
Entry into a Material Definitive Agreement.
Luxeyard Inc.
(the "Company") entered in a Securities Purchase Agreement (the "Purchase Agreement") dated May 24,
2012 among the Company and the investors named therein (each, an "Investor" and collectively
the "Investors"). The Purchase Agreement provides for the sale by the Company to the Investors
(the "Offering") of units consisting of an aggregate of up to (i) 10,000,000 shares of its 8% Convertible
Preferred Stock common stock (the "Shares"), (ii) Series C warrants
to
purchase up to 10,000,000 shares of its common stock which have a five-year term and an initial per share exercise price of
$0.50
, subject to adjustment (the "Series C Warrants"), (iii) Series D warrants to purchase shares of
common stock
which have a 90
day term and an initial per share exercise price of $
0.35, subject to adjustment (the "Series
D Warrants"), and (iv) Series E warrants
which
have a five-year term and an initial per share exercise price of $
0.50, subject to adjustment (the "Series
E Warrants"). The price per unit was $0.35 for an aggregate purchase price of up to $3,500,000 (the
"Purchase Price"). The transactions contemplated by the Purchase Agreement are expected to close promptly,
subject to customary closing conditions. Maxim Group LLC (the "Placement Agent") was the placement agent for the
Offering.
Securities Purchase Agreement
The Purchase Agreement contains the provisions
set forth below.
Variable Securities
.
For 60 days after the initial registration is declared effective (the "Effective Date") by the Securities and Exchange
Commission (the "SEC") under the terms of the registration rights agreement (the "Registration Rights Agreement")
to be entered into in connection with the Offering, the Company may not, without the consent of the holders of at least a majority
of the aggregate number of Registrable Securities (as defined in the Registration Rights Agreement) (the "Requisite Holders"),
in any manner, issue or sell any rights, warrants or options to subscribe for or purchase common stock or directly or indirectly
convertible into or exchangeable or exercisable for common stock at a price which varies or may vary with the market price of the
common stock, including by way of one or more reset(s) to any fixed price unless the conversion, exchange or exercise price of
any such security cannot be less than the then applicable conversion price of the Shares with respect to the Common Stock into
which any Share is convertible.
Additional
Issuances of Securities.
For 60 days following the Effective Date (the "Trigger Date"), the Company may not file
any registration statement with the SEC other than the Registration Statement. From the date of the Purchase Agreement until the
Trigger Date, without the consent of the Requisite Holders, the Company may not offer, sell, grant any option to purchase, or otherwise
dispose of (or announce any offer, sale, grant or any option to purchase or other disposition of) any of its or its subsidiaries'
equity or equity equivalent securities, including without limitation any debt, preferred stock or other instrument or security
that is, at any time during its life and under any circumstances, convertible into or exchangeable or exercisable for shares of
common stock or common stock equivalents (any such offer, sale, grant, disposition or announcement being referred to as a "Subsequent
Placement"). Notwithstanding the foregoing, at any time following the thirtieth (30
th
) day after the closing date,
the Company is allowed, subject to complying with the Purchase Agreement, to complete a Subsequent Placement(s) of up to an aggregate
of $5.0 million; provided, that, without the consent of the Requisite Holders, the Company is not entitled to file a registration
statement covering the securities sold in such placement(s) until at least ninety (90) days following the Trigger Date.
No Reverse
Stock Splits
. For a two year period ending on the second anniversary of the closing date, the Company is prohibited, without
the prior written consent of the Requisite Holders, from consummating or announcing a reverse stock split with respect to its common
stock.
Warrants
The Series C Warrants have
a five-year term and are exercisable for an aggregate of up to 10,000,000 shares of the Company's common stock at
an initial per share exercise price of $0.50, subject to adjustment as set forth below. The Series D Warrants have a 90 day
term and are exercisable for an aggregate of up to 5,000,000 shares of the Company's common stock at an initial per
share exercise price of $0.35, subject to adjustment as set forth below. The Series E Warrants have a five-year term and
are exercisable for an aggregate of up to 5,000,000 shares of the Company's common stock at an initial per share
exercise price of $0.50, subject to adjustment as set forth below.
The exercise prices of the Series C Warrants,
Series B Warrants and Series E Warrants are subject to adjustment upon certain events, such as stock splits, combinations, dividends,
distributions, reclassifications, mergers or other corporate changes. In addition, subject to certain exceptions, if at any time
after the closing date, the Company issues or sells any shares of its common stock (including options and convertible securities)
at a price per share less than the exercise price of the applicable Warrant (each, a "Dilutive Issuance"), then immediately
after such Dilutive Issuance, the exercise price of the applicable Warrants then in effect shall be reduced to an amount equal
to the price per share of such Dilutive Issuance. The warrants can be exercised on a cashless basis if certain conditions are met.
2
Purchase Rights
. In addition to
any adjustments pursuant to the warrant, if at any time the Company grants, issues or sells any options, convertible securities
or rights to purchase stock, warrants, securities or other property pro rata to the record holders of common stock, then the holder
will be entitled to acquire the aggregate purchase rights which the holder could have acquired if the holder had held the number
of shares of common stock acquirable upon complete exercise of the warrant immediately before the date on which a record is taken
for the grant, issuance or sale of such purchase rights.
Fundamental
Transactions.
The Company may not enter into or be party to a Fundamental Transaction (as defined in the warrant) unless (i)
the successor entity assumes in writing all of the obligations of the Company under the warrant in form and substance reasonably
satisfactory to the holders of a majority of the Company warrants outstanding on such date
(the "
Required
Holders") and approved by the Required Holders prior to such Fundamental Transaction, and (ii) the successor entity is a
publicly traded corporation whose common stock is quoted on or listed for trading on an approved exchange.
Registration Rights Agreement
In connection with the Offering, the Company
will enter into a Registration Rights Agreement with the Investors granting the Investors registration rights with respect to the
Shares, and the shares of common stock underlying the Shares, the Series C Warrants, Series D Warrants, Series E Warrants, and
shares of common stock issuable as issued as payment for any dividends due owing on the Shares. The Company will file a registration
statement ("Registration Statement") with the SEC to register the Registrable Securities within 15 days after the execution
of the Purchase Agreement and have it declared effective within 75 days after the such date or 105 days in the event of a full
review of the Registration Statement by the SEC ("Required Effective Date").
If the Registration Statement is not declared
effective by the Required Effective Date, the Company is required to pay partial liquidated damages to each Investor in the amount
equal to 1% of such Purchaser's subscription amount subscribed for by such Investor for each 30-day period for which the
Company is not compliance, subject to a cap of six percent (6%) of such Purchaser's purchase amount.
Item 3.02
Unregistered Sales of Equity Securities.
The information contained in Item 1.01
above is incorporated herein by reference in response to this Item 3.02.
The Placement Agent is entitled upon the
closing of the Offering to securities purchase warrants (the "Placement Agent Warrant"), covering a number of securities
equal to eight percent (8%) of the total number of securities being sold in the Offering.
Item 3.03 Material Modification to rights
of Security Holders.
Certificate of Designation- 8% Convertible
Perpetual Preferred Stock
On May 25, 2012,
the Company filed with the Secretary of State of the State of Delaware a Certificate of Designation (the "Certificate")
establishing the voting powers, designations, preferences, limitations, restrictions and relative rights of the Shares to be sold
in the Offering.
Dividends
.
Each holder of Shares is entitled to receive dividends at the rate of eight percent per year of the original issue price. The preferred
stock dividends are cumulative, whether or not earned or declared, and are to be paid quarterly. The Company may elect pay dividends
in cash or shares (if certain notice and certain equity conditions are satisfied).
Liquidation
Rights.
Upon the voluntary or involuntary liquidation, winding-up or dissolution of the Company, the holders of the Shares
may exercise their rights to convert all or a portion of their Shares into common stock. Each holder of Shares that does not exercise
its rights to convert shall be entitled to receive out of the assets of the Company, for each Share, cash in an amount equal to
(i) the original issue price plus (ii) all accrued but unpaid dividends on the shares, before any payment or distribution shall
be made on the Junior Stock (as defined in the Certificate), but after payment of all outstanding indebtedness and all amounts
due on liquidation, dissolution or winding-up in respect of all preferred stock of the Company which by its terms is senior to
the Shares, if any. If the assets of the Company available for distribution to the holders of the Shares upon any liquidation,
dissolution or winding-up of the Company are insufficient to pay the full preferential amount to which the holders are entitled,
then the holders of the Shares shall share in such distribution of assets pro rata in accordance with the amount that would be
payable on such distribution if the amounts to which the holders of Shares were entitled were paid in full. A Fundamental Transaction
(as defined in the Certificate) shall be treated as a liquidation for purposed of the liquidation preference contained in the Certificate.
Prior to the consummation of such Fundamental Transaction, the holders of Shares may exercise their rights to convert all or a
portion of their Shares into Common Stock.
3
Voting Rights
.
With respect to any matter on which the holders of common stock shall be entitled to vote, the holders of Shares shall vote together
with the holders of common stock, and not as a separate class, and each share shall have a number of votes equal to the number
of shares of common stock then issuable upon conversion.
Optional Conversion
by Holder
. The holder of any Shares has the right at such holder's option to convert the Shares into such number of shares
of fully paid and nonassessable shares of common stock as is determined by dividing the original issue price by the conversion
price, multiplied by the number of Shares being converted.
Adjustments
to Conversion Price.
The conversion price of the Shares are subject to adjustment upon certain events, such as stock splits,
combinations, dividends, distributions, reclassifications, reorganizations, mergers or other corporate changes. In addition, subject
to certain exceptions, if at any time after the Closing Date, the Company issues or sells any shares of its common stock (including
options and convertible securities) at a price per share less than the applicable conversion price of the Shares then in effect
issue price (each, a "Dilutive Issuance"), then immediately after such Dilutive Issuance, the conversion price of the
Shares then in effect shall be reduced to an amount equal to the price per share of such Dilutive Issuance.
Item 5.03         Amendments to Articles of
Incorporation or Bylaws; Change in fiscal Year.
The information contained in Item 3.03
above is incorporated herein by reference in response to this Item 5.03.
The foregoing descriptions of the Offering,
the Purchase Agreement, Series C Warrants, Series D Warrants, Series E Warrants, Registration Rights Agreement, Placement Agent
Warrant and Certificate are qualified in their entirety by reference to the provisions of the Purchase Agreement, Form of Series
C Warrant, Form of Series D Warrant, Form of Series E Warrant, Registration Rights Agreement, Placement Agent Warrant and Certificate
filed as Exhibits 10.1, 10.2, 10.3, 10.4, 10.5, 10. 6 and 3.1 to this Current Report on Form 8-K (this "Report"), respectively,
which are incorporated by reference herein.
The Shares and warrants were offered and
sold in reliance upon exemptions from registration pursuant to Section 4(2) of the Securities Act and Rule 506 of Regulation D
("Regulation D") promulgated under the Securities Act. The Company made this determination based on the representations
of the investors which included, in pertinent part, that each such investor was an "accredited investor" within the
meaning of Rule 501 of Regulation D and upon such further representations from each investor that (i) such investor is acquiring
the securities for its own account for investment and not for the account of any other person and not with a view to or for distribution,
assignment or resale in connection with any distribution within the meaning of the Securities Act, (ii) such investor agrees not
to sell or otherwise transfer the purchased securities or shares underlying such securities unless they are registered under the
Securities Act and any applicable state securities laws, or an exemption or exemptions from such registration are available, (iii)
such investor has knowledge and experience in financial and business matters such that such investor is capable of evaluating the
merits and risks of an investment in us, (iv) such investor had access to all of the Company's documents, records, and books
pertaining to the investment and was provided the opportunity to ask questions and receive answers regarding the terms and conditions
of the Offering and to obtain any additional information which the Company possessed or was able to acquire without unreasonable
effort and expense, and (v) such investor has no need for the liquidity in its investment in us and could afford the complete loss
of such investment. In addition, there was no general solicitation or advertising for securities issued in reliance upon Regulation
D.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits.
Certain of the agreements filed as exhibits
to this Report contain representations and warranties by the parties to the agreements that have been made solely for the benefit
of the parties to the agreement. These representations and warranties:
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·
may have been qualified by disclosures that were made to the other parties in connection with the
negotiation of the agreements, which disclosures are not necessarily reflected in the agreements;
·
may apply standards of materiality that differ from those of a reasonable investor; and
·
were made only as of specified dates contained in the agreements and are subject to subsequent
developments and changed circumstances.
Accordingly, these representations and
warranties may not describe the actual state of affairs as of the date that these representations and warranties were made or at
any other time. Investors should not rely on them as statements of fact.
Exhibit
Number
Description
3.1
Certificate of Designation - 8% Convertible Perpetual Preferred Stock
10.1
Securities Purchase Agreement dated May 24, 2012
10.2
Form of Series C Warrant dated May XX, 2012
10.3
Form of Series D Warrant dated May XX, 2012
10.4
Form of Series E Warrant dated May XX, 2012
10.5
Registration Rights Agreement dated May 24, 2012
10.6
Form of Placement Agent Warrant dated May XX, 2012
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 25, 2012
LUXEYARD, INC.
By:
/s/ Braden Richter
Braden Richter
President and Chief Executive Officer
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