Document:

UMAM-EX 4.12 Subscription Agreement

 
SUBSCRIPTION AGREEMENT
 
Dated as of October 18, 2010
 
among
 
UMAMI SUSTAINABLE SEAFOOD INC.
 
and
 
THE PURCHASERS LISTED ON EXHIBIT A

SUBSCRIPTION AGREEMENT
 
THIS SUBSCRIPTION AGREEMENT (the “Agreement”) is dated as of October 18, 2010 by and among Umami Sustainable Seafood Inc., a Nevada corporation (the “Company”), and each of the purchasers of common stock and warrants of the Company whose names are set forth on Exhibit A hereto, as Exhibit A may be updated from time to time (individually, a “Purchaser” and collectively, the “Purchasers”).

The parties hereto agree as follows:

1.  Purchase and Sale
 
(a)   Purchase and Sale of Securities.  Upon the following terms and conditions, the Company shall issue and sell to the Purchasers and each of the Purchasers shall purchase from the Company (the “Offering”), in the amounts set forth opposite such Purchaser's name on Exhibit A hereto:
 
The number of shares (the “Shares”) of the Company's common stock, par value $0.001 per share (the “Common Stock”); and
 
Warrants expiring on the fifth anniversary of the closing date of the initial closing of the Offering (the “Warrants”), entitling the Purchaser or any subsequent holder of the Warrants (the “Warrant Holder”) to purchase, at a price equal to $1.80 that number shares of Common Stock specified on Exhibit A of the Offering (the “Warrant Shares”).
 
The Shares and Warrants are sometimes collectively referred to herein as the Securities.
 
(b)   Purchase Price and Closings.  Subject to the terms and conditions hereof, the Company agrees to issue and sell to the Purchasers and, in consideration of and in express reliance upon the representations, warranties, covenants, terms and conditions of this Agreement, and the Purchasers, severally but not jointly, agree to purchase the Shares and the Warrants for the aggregate purchase price specified on Exhibit A attached hereto (the “Purchase Price”).  There may be one or more Closings (as defined below) pursuant to this Agreement, each at a date and time to be agreed upon by the Company and the Purchasers purchasing Securities on such date.  Each closing of the sale of Shares and the Warrants (each a “Closing”) shall take place on a date and time agreed to by the Company and the Shareholders closing on such date, but no Closing shall take place later than November 15, 2010, unless extended by mutual agreement by the Company and the Placement Agent to a date no later than December 15, 2010 (the “Offering Period”).  The date on which a Closing takes place is sometimes referred to in this Agreement as a “Closing Date”.  Each Closing shall take place at the offices of counsel to the Placement Agent.  Subject to the terms and conditions of this Agreement, at the Closing the Company shall deliver or cause to be delivered to each Purchaser (x) a certificate for the number of Shares and Warrants set forth opposite the name of such Purchaser on Exhibit A hereto, and (y) any other documents required to be delivered pursuant to Article IV hereof.  At or prior to the Closing, the Purchaser shall deliver its Purchase Price by wire transfer to an escrow account maintained by Signature Bank, as escrow agent (the “Escrow Agent”), pursuant to an escrow agreement  (the “Escrow Agreement”) by and among the Company, the Escrow Agent and Aegis Capital Corp. (the “Placement Agent”).
 
 (c)   Increase in Number of Shares Issued in certain circumstances.
 
	
			
	 
	1.
	In the event that the Company completes a public offering (the “Public Offering”), resulting in aggregate gross proceeds to the Company of $5,000,000 or more of its Common Stock on or before June 30, 2011, and the price per share of the securities sold in the Public Offering (the “Public Offering Price”) is less than $2.50, then the Company will issue to each Purchaser an additional number of shares of Common Stock and Warrants to purchase Common Stock equal to (i) the number of each applicable security appearing on Exhibit A hereto multiplied by the lesser of (a) 1.5 and (b) (x) 1.5 divided by (y) the product of the Public Offering Price and .6, minus (ii) the number of each applicable Security appearing on Exhibit A hereto.

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	2.
	In the event that the Company does not complete the Public Offering on or before June 30, 2011, and the average closing price of the Common Stock on its principal market or exchange for each trading day in June 2011 (the “Average Trading Price”) is less than $2.50, then the Company will issue to each Purchaser an additional number of shares of Common Stock and Warrants to purchase Common Stock equal to (i) the number of each applicable security appearing on     Exhibit A hereto multiplied by the lesser of (a) 1.5 and (b) (x) 1.5 divided by (y) the product of the Average Trading Price and .6, minus (ii) the number of each applicable Security appearing on Exhibit A hereto.

 
Securities to be issued by the Company pursuant to Section 1(c)(1) hereof shall be issued by the Company within 10 days of the closing of the Public Offering or by July 15, 2011 in the event Section 1(c)(2) is applicable.
 
2.  Investment Amount.

(a)   Deliveries Upon Signing. Simultaneous with the execution of this Subscription Agreement, Purchaser shall execute and deliver to the Company the Investor Questionnaire substantially in the form of Exhibit B hereto (the “Investor Questionnaire”).

(b)   Payment of Investment Amount. Concurrent with the execution of this Subscription Agreement, Purchaser shall transmit a wire transfer or check to the Escrow Agent in an amount equal to such Purchaser's Investment Amount. For purposes of this Agreement, “Payment” shall mean Purchaser's implementation of such wire transfer or receipt by the Escrow Agent of the check.  Purchaser funds will be maintained separate and apart from funds of the Company. The Parties hereby agree that Purchaser shall not be deemed to have purchased the Units until the Company shall have provided a Closing Notice (as defined herein).

	
		
	Wire Instructions:
	Payment by Check:

	Acct Name: Signature Bank as Escrow Agent for
	Check Payable to:

	Umami Sustainable Seafood Inc,
	“Signature Bank as Escrow

	Acct #: 1501298227
	Agent for Umami Sustainable Seafood, Inc”

	ABA/Routing #: 026013576
	 

	SWIFT Code: SIGNUS33
	Signature Bank

	RE: Private Placement (Purchaser's Name)
	950 Third Ave, 9th FL

	 
	New York, NY 10022

	 
	Attn: PCG# 311

	 
	RE: Private Placement (Purchaser's Name)

(c)   Delivery Instructions. The Subscription Agreement, Investor Questionnaire, and the notification of wire transfer, check, bank draft or money order for the full purchase price of the Securities subscribed for, should be returned or delivered as soon as possible to the Placement Agent at the address below. Incomplete documents will be returned to Purchasers for completion. If you have any questions about completion of the subscription documents, please contact:

Aegis Capital Corp.
810 Seventh Ave., 11th Floor
New York, NY 10019
Attn: Ed Cabrera
Tel.:  (212) 813-1010

(d)   Closing. The Company, at the Company's sole discretion, may elect to accept the subscription of the Purchaser. The Company's acceptance of the subscription shall be effective upon the Company executing the Subscription Agreement and funds being released from escrow. The Company shall use commercially reasonable efforts to effect a closing within 10 days after receiving executed Subscription Documents and payment of the Investment Amount.

(e)   Trigger for Return of Investment Amount.  If by the last day of the Offering Period, the Company has failed to obtain executed Subscription Agreements with an aggregate Investment Amount of at least $1,000,000, then the Company shall instruct the Escrow Agent to return to the Purchaser an amount equal to the Purchaser's Investment Amount to the Purchaser pursuant to the terms set forth in the Escrow Agreement.

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3.  The Offering.

This Subscription Agreement is delivered in connection with the Offering of a minimum amount (the “Minimum Amount”) of $1,000,000 (666,666 Units) of Units (the “Units”) and a maximum amount (the “Maximum Amount”) of $2,500,000 (1,666,666 Units) of Units. Each Unit consists of (i) one (1) share of Common Stock; and (ii) a Warrant to purchase one (1) share of Common Stock at an exercise price of $1.80 per share, subject to adjustment in certain circumstances.

Purchaser understands that the details of the Offering are set forth in the Private Offering Memorandum, as may be amended or supplemented from time to time. The Offering will terminate at the end of the Offering Period.

Purchaser understands that this Subscription Agreement is not binding upon the Company unless and until such time as (i) payment of the Investment Amount is received by the Company, and (ii) the Company accepts Purchaser's subscription in writing.

Purchaser acknowledges that the Company reserves the right, in its sole discretion, to accept or reject any Subscription Agreement.

 The Company, the Placement Agent and their respective affiliates reserve the right to purchase Units in the Offering and all such purchases shall count toward the Minimum Amount and the Maximum Amount.

Purchaser acknowledges that Purchaser has received, read, understands and is familiar with this Subscription Agreement, any attachments, including but not limited to the Private Offering Memorandum and all Exhibits and Appendices thereto, as may be amended or supplemented from time to time, and together with any other filed regulatory documents (collectively “Offering Material”), and Purchaser further acknowledges that Purchaser has not relied upon any information concerning the Offering, written or oral, other than those contained in this Subscription Agreement and the Offering Material. Purchaser further understands that any other information or literature, regardless of whether distributed prior to, simultaneously with, or subsequent to, the date of this Subscription Agreement shall not be relied upon by Purchaser in determining whether to make an investment in the Units and Purchaser expressly acknowledges, agrees and affirms that Purchaser has not relied upon any such information or literature in making Purchaser's determination to make an investment in the Units and that Purchaser understands that, except as otherwise provided herein, the Company is under no obligation to (and that Purchaser does not expect it to) update, revise, amend or add to any of the information heretofore furnished to Purchaser.

As of the date of the Confidential Private Offering Memorandum of the Company, dated October 18, 2010, pursuant to which the Company is offering for sale the Units (the “PPM”), the Company has not filed its Annual Report on Form 10-K for the fiscal year ended June 30, 2010, and, therefore, the Company is not current in its periodic filing obligations with the SEC.  See “Risk Factors” in the PPM.

4.  Representations and Warranties of the Company
 
(a)   The Company.  The Company hereby represents and warrants to the Purchasers, as of the date hereof (except as set forth on the Schedule of Exceptions attached hereto with each numbered Schedule corresponding to the section number herein), as follows:
 
	
			
	 
	1.
	Organization, Good Standing and Power.  The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada and has the requisite corporate power to own, lease and operate its properties and assets and to conduct its business as it is now being conducted.  The Company does not have any subsidiaries except as set forth in the Offering Material.  The Company and each such subsidiary is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except for any jurisdiction(s) (alone or in the aggregate) in which the failure to be so qualified will not have a Material Adverse Effect (as defined in Section 3 hereof) on the Company's financial condition.

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	2.
	Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and perform this Agreement, the Registration Rights Agreement and the Warrants and the Placement Agent Warrants and the Agent Agreement (as defined in the Memorandum) (collectively, the “Transaction Documents”), and to issue and sell the Securities in accordance with the terms hereof.  The execution, delivery and performance of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate action, and no further consent or authorization of the Company or its Board of Directors or stockholders is required. This Agreement has been and will be duly executed and delivered by the Company at each Closing.   Each of the Transaction Documents constitutes, or shall constitute when executed and delivered, a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor's rights and remedies or by other equitable principles of general application.

 
	
			
	 
	3.
	Capitalization.  The authorized capital stock of the Company and the shares thereof currently issued and outstanding as of the date hereof are set forth in the Offering Material.  All of the outstanding shares of the Common Stock have been duly and validly authorized.  Except as set forth in Offering Material: (i) no shares of Common Stock are entitled to preemptive rights or registration rights and there are no outstanding options, warrants, scrip, rights to subscribe to, call or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company; (ii) there are no contracts, commitments, understandings, or arrangements by which the Company is or may become bound to issue additional shares of the capital stock of the Company or options, securities or rights convertible into shares of capital stock of the Company; (iii) the Company is not a party to any agreement granting registration or anti-dilution rights to any person with respect to any of its equity or debt securities; and (iv) the Company is not a party to, and it has no knowledge of, any agreement restricting the voting or transfer of any shares of the capital stock of the Company.  The offer and sale of all capital stock, convertible securities, rights, warrants, or options of the Company issued prior to the Closing complied with all applicable Federal and state securities laws, and no stockholder has a right of rescission or claim for damages with respect thereto which would have a Material Adverse Effect (as defined below).  The Company has furnished or made available to the Purchasers true and correct copies of the Company's Articles of Incorporation as in effect on the date hereof (the “Articles”), and the Company's Bylaws as in effect on the date hereof (the “Bylaws”).  For the purposes of this Agreement, “Material Adverse Effect” means (i) any event or condition which would have a material adverse effect on the business, operations, properties, or financial condition of the Company and its subsidiaries, when taken as a consolidated whole, and/or (ii) any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability of the Company to perform any of its obligations under this Agreement in any material respect.

 
	
			
	 
	4.
	Issuance of Shares.  The Shares and Warrants to be issued at each Closing will have been duly authorized by all necessary corporate action and the Shares and the Warrant Shares , when paid for or issued in accordance with the terms hereof or the Warrant, shall be validly issued and outstanding, fully paid and nonassessable.

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	5.
	No Conflicts.  Subject to the filing of a Current Report on Form 8-K, a Form D with the SEC and all blue sky documents and the execution, delivery and performance of the Transaction Documents by the Company  and the consummation by the Company of the transactions contemplated herein and therein, the transactions contemplated herein and therein do not and will not (i) violate any provision of the Company's Articles or Bylaws, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the Company is a party or by which it or its properties or assets are bound, (iii) create or impose a lien, mortgage, security interest, charge or encumbrance of any nature on any property of the Company under any agreement or any commitment to which the Company is a party or by which the Company is bound or by which any of its respective properties or assets are bound, or (iv) result in a violation of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including Federal and state securities laws and regulations) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries are bound or affected, except, in all cases other than violations pursuant to clause (i) above, for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect.  The business of the Company and its subsidiaries is not being conducted in violation of any laws, ordinances or regulations of any governmental entity, except for possible violations which singularly or in the aggregate do not and will not have a Material Adverse Effect.  The Company is not required under Federal, state or local law, rule or regulation to obtain any consent, authorization or order of, make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under the Transaction Documents, or issue and sell the Securities and the Warrant Shares in accordance with the terms hereof or thereof (other than any filings which may be required to be made by the Company with the Commission or state securities administrators subsequent to the Closing) provided that, for purposes of the representation made in this sentence, the Company is assuming and relying upon the accuracy of the relevant representations and agreements of the Purchasers herein.

 
	
			
	 
	6.
	Commission Documents, Financial Statements.  The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and since June 30, 2010   the Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the Commission pursuant to the reporting requirements of the Exchange Act (provided, however, that the Company has extended the time-frame required for it to file its annual report on Form 10-K for the year ended June 30, 2010 pursuant to a Form 12b-25 filed with the Commission and has not yet filed financial statements for the Baja acquisition such financial statements will be filed as soon as practical), including material filed pursuant to Section 13(a) or 15(d) of the Exchange Act (all of the foregoing including filings incorporated by reference therein being referred to herein as the “Commission Documents”).  At the times of their respective filings, the Commission Documents complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder and other federal, state and local laws, rules and regulations applicable to such documents, and, as of their respective dates, none of the Commission Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  The financial statements of the Company included in the Commission Documents comply as to form in all material respects with applicable accounting requirements and the published rules and regulations of the Commission or other applicable rules and regulations with respect thereto.  Such financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary statements, but only to the extent permitted by GAAP and the Commission), and fairly present in all material respects the financial position of the Company and its subsidiaries as of the dates thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

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	7.
	Securities Act of 1933.  Assuming the accuracy of the representations of the Purchasers contained herein, the Company has complied and will comply with all applicable federal and state securities laws in connection with the offer, issuance and sale of the Securities.  Neither the Company nor anyone acting on its behalf (excluding the Placement Agent), directly or indirectly, has or will sell, offer to sell or solicit offers to buy any of the Securities or similar securities to, or solicit offers with respect thereto from, or enter into any preliminary conversations or negotiations relating thereto with, any person, or has taken or will take any action so as to bring the issuance and sale of any of the Securities under the registration provisions of the Securities Act and applicable state securities laws, and neither the Company nor any of its affiliates, nor, to the Company's knowledge, any person acting on its or their behalf has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer or sale of any of the Securities.

 
	
			
	 
	8.
	Bulletin Board.  The Common Stock is eligible for quotation on the OTCBB under the symbol “UMAM.”  The Company has not received any direct and/or indirect notice (whether oral and/or in writing) and/or other correspondence regarding the continued eligibility of the Common Stock to continue to be eligible to be quoted on the OTCBB.

5.  Representations and Warranties of the Purchasers.
 
(a)   The Purchasers.  In order to induce the Company to accept Purchaser's purchase, Purchaser further represents and warrants to the Company, its Affiliates, as defined in the Securities Act of 1933 (the “Securities Act”), and counsel to the Company (the “Company's Counsel”), and their respective agents and representatives as follows:
 
	
			
	 
	1.
	Organization and Standing of the Purchasers.  If the Purchaser is an entity, such Purchaser is a corporation or partnership duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization.

 
	
			
	 
	2.
	Authorization and Power.  Each Purchaser has the requisite power and authority to enter into and perform this Agreement and to purchase the Securities being sold to it hereunder.  The execution, delivery and performance of this Agreement by such Purchaser and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate or partnership action, and no further consent or authorization of such Purchaser or its Board of Directors, stockholders, or partners, as the case may be, is required.  This Agreement has been duly authorized, executed and delivered by such Purchaser and constitutes, or shall constitute when executed and delivered, a valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with the terms hereof, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor's rights and remedies or by other equitable principles of general application.

 
	
			
	 
	3.
	No Conflicts.  The execution, delivery and performance of this Agreement and the consummation by such Purchaser of the transactions contemplated hereby and thereby or relating hereto do not and will not (i) result in a violation of such Purchaser's charter documents or bylaws or other organizational documents or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture or instrument or obligation to which such Purchaser is a party or by which its properties or assets are bound, or result in a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to such Purchaser or its properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on such Purchaser).  Such Purchaser is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement or to purchase the Securities in accordance with the terms hereof, provided that for purposes of the representation made in this sentence, such Purchaser is assuming and relying upon the accuracy of the relevant representations and agreements of the Company herein.

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	4.
	Acquisition for Investment.  Each Purchaser is and will be acquiring the Securities solely for its own account for the purpose of investment and not with a view to or for sale in connection with distribution.  Each Purchaser does not have a present intention to sell the Securities, nor a present arrangement (whether or not legally binding) or intention to effect any distribution of the Securities to or through any person or entity.  Each Purchaser acknowledges that it is able to bear the financial risks associated with an investment in the Securities and that it has been given full access to such records of the Company and to the officers of the Company and received such information as it has deemed necessary or appropriate to conduct its due diligence investigation and has sufficient knowledge and experience in investing in companies similar to the Company in terms of the Company's stage of development so as to be able to evaluate the risks and merits of its investment in the Company.

 
	
			
	 
	5.
	Status of Purchasers.  Such Purchaser is an “accredited investor” as defined in Regulation D promulgated under the Securities Act.  Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act and such Purchaser is not a broker-dealer.  The Purchaser Questionnaire and Accredited Investor Certification attached hereto as Exhibit C hereto completed by such Purchaser is complete and accurate in all respects.

 
	
			
	 
	6.
	Opportunities for Additional Information.  Each Purchaser acknowledges that such Purchaser has had the opportunity to ask questions of and receive answers from, or obtain additional information from, the executive officers of the Company concerning the financial and other affairs of the Company, and to the extent deemed necessary in light of such Purchaser's personal knowledge of the Company's affairs, such Purchaser has asked such questions and received answers to the full satisfaction of such Purchaser, and such Purchaser desires to invest in the Company.

 
	
			
	 
	7.
	No General Solicitation.  Each Purchaser acknowledges that the Securities were not offered to such Purchaser by means of any form of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media, or broadcast over television or radio, or (ii) any seminar or meeting to which such Purchaser was invited by any of the foregoing means of communications.

 
	
			
	 
	8.
	Rule 144.  Such Purchaser understands that the Shares must be held indefinitely unless such Shares are registered under the Securities Act or an exemption from registration is available.  Such Purchaser acknowledges that such Purchaser is familiar with Rule 144 of the rules and regulations of the Commission, as amended, promulgated pursuant to the Securities Act (“Rule 144”), and that such person has been advised that Rule 144 permits resales only under certain circumstances.  Such Purchaser understands that to the extent that Rule 144 is not available, such Purchaser will be unable to sell any Shares without either registration under the Securities Act or the existence of another exemption from such registration requirement.

 
	
			
	 
	9.
	General.  Such Purchaser understands that the Shares are being offered and sold in reliance on a transactional exemption from the registration requirement of Federal and state securities laws and the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the applicability of such exemptions and the suitability of such Purchaser to acquire the Shares.

 
	
			
	 
	10.
	Independent Investment.  Except as may be disclosed in any filings with the Commission by the Purchasers under Section 13 and/or Section 16 of the Exchange Act, no Purchaser has agreed to act with any other Purchaser for the purpose of acquiring, holding, voting or disposing of the Shares purchased hereunder for purposes of Section 13(d) under the Exchange Act, and each Purchaser is acting independently with respect to its investment in the Shares.

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	11.
	Material Non-Public Information. The Purchaser (i) acknowledges that the Company has not provided all material non-public information relating to the Company to it and hereby waives any and all claims, whether at law, in equity or otherwise, that he, she, or it may now have or may hereafter acquire, whether presently known or unknown, against the Company or any of its officers, directors, employees, agents, affiliates, subsidiaries, successors or assigns relating to any failure to disclose any non-public information in connection with the transactions contemplated by this Agreement, including without limitation, any such claims arising under the securities or other laws, rules and regulations, and (ii) is aware that Buyer is relying on the foregoing acknowledgement and waiver in clause (i) above in connection with the transactions contemplated by this Agreement.

 
6.  Covenants
 
(a)   Covenants of the Company.  The Company covenants with each of the Purchasers as follows, which covenants are for the benefit of the Purchasers and their permitted assignees (as defined herein).
 
	
			
	 
	1.
	Securities Compliance.  The Company shall notify the Commission in accordance with their rules and regulations, of the transactions contemplated by any of the Transaction Documents, including filing a Form D and a Current Report on Form 8-K with respect to the Securities as required under Regulation D, and shall take all other necessary action and proceedings as may be required and permitted by applicable law, rule and regulation, for the legal and valid issuance of the Securities to the Purchasers or subsequent holders.

 
	
			
	 
	2.
	Registration and Listing.  The Company shall use its best efforts to cause the Common Stock to continue to be registered under Sections 12(b) or 12(g) of the Exchange Act for at least two years after the last Closing Date under this Agreement, to comply in all material respects with its reporting and filing obligations under the Exchange Act and to not take any action.  The Company will take all actions it is legally permitted to take to continue the listing or trading of its Common Stock on the OTC Bulletin Board or other exchange or market on which the Common Stock is trading.  Subject to the terms of the Transaction Documents, the Company further covenants that it will take such further action (including, but not limited to, paying its legal counsel to promptly deliver a “144 Opinion” when requested by a holder of Registrable Securities (as defined below), provided that such holder is eligible to sell under Rule 144) as the Purchasers may reasonably request, all to the extent required from time to time to enable the Purchasers to sell the Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the Securities Act.  Upon the request of the Purchasers, the Company shall deliver to the Purchasers a written certification of a duly authorized officer as to whether it has complied with such requirements.

 
	
			
	 
	3.
	Compliance with Laws.  The Company shall comply, and cause each subsidiary to comply, with all applicable laws, rules, regulations and orders, noncompliance with which could have a Material Adverse Effect.

 
	
			
	 
	4.
	Keeping of Records and Books of Account.  The Company shall keep and cause each subsidiary to keep adequate records and books of account, in which complete entries will be made in accordance with GAAP consistently applied, reflecting all financial transactions of the Company and its subsidiaries, and in which, for each fiscal year, all proper reserves for depreciation, depletion, obsolescence, amortization, taxes, bad debts and other purposes in connection with its business shall be made.

 
	
			
	 
	5.
	Other Agreements.  The Company shall not enter into any agreement in which the terms of such agreement would restrict or impair the right or ability to perform of the Company or any subsidiary under any Transaction Document.

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	6.
	Use of Proceeds.  The net proceeds from the sale of the Shares hereunder shall be used by the Company for working capital purposes only, and not to redeem any Common Stock or securities convertible, exercisable or exchangeable into Common Stock or to settle any outstanding litigation or make any payments to affiliates of the Company and/or any direct and/or indirect subsidiary of the Company, except ordinary course payments for outstanding debt obligations of affiliates of the Company and/or any direct and/or indirect subsidiary of the Company.

 
	
			
	 
	7.
	Disclosure of Transaction.  The Company shall issue a press release describing the material terms of the transactions contemplated hereby (the “Press Release”) as soon as practicable after the initial Closing hereunder, but in no event later than 9:00 A.M. Eastern Time on the first Trading Day following the Closing Date.  The Company shall also file with the Commission a Current Report on Form 8-K (the “Form 8-K”) describing the material terms of the transactions contemplated hereby (and attaching as exhibits thereto this Agreement and the Press Release) on the first Trading Day following the date the Press Release is issued by the Company.  "Trading Day" means any day during which the OTC Bulletin Board (or other principal exchange on which the Common Stock is traded) shall be open for trading.  Such Press release and Form 8-K shall be provided to the Placement Agent prior to its filing with the Commission.

 
(b)   Additional Affirmative Covenants.  The Company hereby covenants and agrees, for a period of two years after the date of this Agreement, as follows:
 
	
			
	 
	1.
	Maintenance of Corporate Existence.  The Company shall use commercially reasonable efforts and shall use commercially reasonable efforts to cause its subsidiaries to, maintain in full force and effect its corporate existence, rights and franchises and all material terms of licenses and other rights to use licenses, trademarks, trade names, service marks, copyrights, patents or processes owned or possessed by it and necessary to the conduct of its business.

 
	
			
	 
	2.
	Maintenance of Properties.  The Company shall and shall cause its subsidiaries to, keep each of its properties necessary to the conduct of its business in good repair, working order and condition, reasonable wear and tear excepted, and from time to time make all needful and proper repairs, renewals, replacements, additions and improvements thereto; and the Company shall and shall cause its subsidiaries to at all times comply with each material provision of all leases to which it is a party or under which it occupies property.

 
	
			
	 
	3.
	Payment of Taxes.  The Company shall and shall cause its subsidiaries to, promptly pay and discharge, or cause to be paid and discharged when due and payable, all lawful taxes, assessments and governmental charges or levies imposed upon the income, profits, assets, property or business of the Company and its subsidiaries; provided, however, that any such tax, assessment, charge or levy need not be paid if the validity thereof shall be contested timely and in good faith by appropriate proceedings, if the Company or its subsidiaries shall have set aside on its books adequate reserves with respect thereto, and the failure to pay shall not be prejudicial in any material respect to the holders of the Shares, and provided, further, that the Company or its subsidiaries will pay or cause to be paid any such tax, assessment, charge or levy forthwith upon the commencement of proceedings to foreclose any lien which may have attached as security therefor.

 
	
			
	 
	4.
	Maintenance of Insurance.  Other than business interruption insurance, the Company shall and shall cause its subsidiaries to, keep its assets which are of an insurable character insured by financially sound and reputable insurers against loss or damage by theft, fire, explosion and other risks customarily insured against by companies in the line of business of the Company or its subsidiaries, in amounts sufficient to prevent the Company and its subsidiaries from becoming a co-insurer of the property insured; and the Company shall and shall cause its subsidiaries to maintain, with financially sound and reputable insurers, insurance (other than business interruption insurance) against other hazards and risks and liability to persons and property to the extent and in the manner customary for companies in similar businesses similarly situated or as may be required by law, including, without limitation, general liability, fire insurance, and product liability insurance as may be required pursuant to any license agreement to which the Company or its subsidiaries is a party or by which it is bound.

 
10

	
			
	 
	5.
	Further Assurances.  From time to time the Company shall execute and deliver to the Purchasers and the Purchasers shall execute and deliver to the Company such other instruments, certificates, agreements and documents and take such other action and do all other things as may be reasonably requested by the other party in order to implement or effectuate the terms and provisions of this Agreement and any of the Securities.

 
(c)   Covenants of the Purchasers.  Each of the Purchasers covenants with the Company as follows, which covenants are for the benefit of the Company and its permitted assignees (as defined herein).
 
	
			
	 
	1.
	Lock-Up.  The Purchasers agree that they may not sell any of the Securities until the 6-month anniversary of the initial Closing without the consent of the Company.

 
7.  Conditions
 
(a)   Conditions Precedent to the Obligation of the Company to Sell the Shares.  The obligation hereunder of the Company to issue and sell the Securities to the Purchasers is subject to the satisfaction or waiver, at or before each Closing, of each of the conditions set forth below.  These conditions are for the Company's sole benefit and may be waived by the Company at any time in its sole discretion.
 
	
			
	 
	1.
	Accuracy of Each Purchaser's Representations and Warranties.  The representations and warranties of each Purchaser hereunder and under the Purchaser Questionnaire and Accredited Investor Certification attached hereto as Exhibit C shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of such Closing Date, as though made at that time, except for representations and warranties that are expressly made as of a particular date, which shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of such date.

 
	
			
	 
	2.
	Performance by the Purchasers.  Each Purchaser shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Purchaser at or prior to each Closing.

 
	
			
	 
	3.
	No Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement.

 
	
			
	 
	4.
	Delivery of Purchase Price.  The Purchase Price for the Securities has been delivered to the Company at such Closing Date.

 
	
			
	 
	5.
	Delivery of Transaction Documents.  The Transaction Documents shall have been duly executed and delivered by the Purchasers to the Company, and with respect to the Escrow Agreement, to the escrow agent and the Company, with a copy to the Placement Agent.

 
(b)   Conditions Precedent to the Obligation of the Purchasers to Purchase the Shares.  The obligation hereunder of each Purchaser to acquire and pay for the Securities is subject to the satisfaction or waiver, at or before each Closing, of each of the conditions set forth below.  These conditions are for each Purchaser's sole benefit and may be waived by such Purchaser at any time in its sole discretion.

11

	
			
	 
	1
	Accuracy of the Company's Representations and Warranties.  Each of the representations and warranties of the Company in this Agreement and the other Transaction Documents shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of such Closing Date as though made at that time, except for representations and warranties that are expressly made as of a particular date, which shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of such date.

 
	
			
	 
	2.
	Performance by the Company.  The Company shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to each Closing.

 
	
			
	 
	3.
	No Suspension, Etc.   Trading in the Company's Common Stock shall not have been suspended by the Commission (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the applicable Closing), and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg Financial Markets (“ Bloomberg ”) shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by Bloomberg, nor shall a banking moratorium have been declared either by the United States or New York State authorities, nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity or crisis of such magnitude in its effect on, or any material adverse change in any financial market which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities.

 
	
			
	 
	4.
	No Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement.

 
	
			
	 
	5.
	No Proceedings or Litigation.  No action, suit or proceeding before any arbitrator or any governmental authority shall have been commenced, and no investigation by any governmental authority shall have been threatened, against the Company or any subsidiary, or any of the officers, directors or affiliates of the Company or any subsidiary seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with such transactions.

 
	
			
	 
	6.
	Opinion of Counsel, Etc. At each Closing, the Purchasers shall have received an opinion of counsel to the Company, dated the date of such Closing, in the form agreed to by counsel for the Company and counsel for the Placement Agent, and such other certificates and documents as the Purchasers or its counsel shall reasonably require incident to such Closing.

 
	
			
	 
	7.
	Certificates.  The Company shall have executed and delivered to the Purchasers the certificates for the Securities being acquired by such Purchaser at such Closing (in such denominations as such Purchaser shall request).

 
	
			
	 
	8.
	Resolutions.  The Board of Directors of the Company shall have adopted resolutions consistent with Section 2.1(b) hereof in a form reasonably acceptable to such Purchaser (the "Resolutions").

 
	
			
	 
	9.
	Reservation of Shares.  As of each Closing Date, the Company shall have reserved out of its authorized and unissued Common Stock, solely for the purpose of effecting the exercise of the Warrant Shares, a number of shares of Common Stock equal to one hundred twenty percent (120%) of the aggregate number of Warrant Shares issuable upon exercise of the Warrants outstanding on such Closing Date.

 
12

	
			
	 
	10.
	Secretary's Certificate.  The Company shall have delivered to such Purchaser a secretary's certificate, dated as of each Closing Date, as to (i) the Resolutions, (ii) the Articles, (iii) the Bylaws, and (iv) the authority and incumbency of the officers of the Company executing the Transaction Documents and any other documents required to be executed or delivered in connection therewith.

 
	
			
	 
	11.
	Officer's Certificate.  The Company shall have delivered to the Purchasers a certificate of an executive officer of the Company, dated as of such Closing Date, confirming the accuracy of the Company's representations, warranties and covenants as of such Closing Date and confirming the compliance by the Company with the conditions precedent set forth in this Section 8(b) as of the Closing Date.

 
	
			
	 
	12.
	Material Adverse Effect.  No Material Adverse Effect shall have occurred at or before each Closing Date.

 
	
			
	 
	13.
	SEC Filings.  Except as disclosed in its representations or the Schedules hereto, the Company shall have filed all periodic reports required to be filed by it under the Exchange Act.

 
8.  Stock Certificate Legend
 
(a)   Legend.  Each certificate representing the Shares and Warrants, and, if appropriate, securities issued upon exercise thereof, shall be stamped or otherwise imprinted with a legend substantially in the following form (in addition to any legend required by applicable state securities or “blue sky” laws):
 
THESE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR EDGEWATER FOODS INTERNATIONAL, INC. SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
 
The Company agrees to reissue certificates representing any of the Shares without the legend set forth above if at such time, in connection with making any transfer of any such securities, such holder thereof shall give written notice to the Company describing the manner and terms of such transfer and removal as the Company may reasonably request, provided, however, that such proposed transfer and removal will not be effected until: (a) either (i) the Company has received an opinion of counsel reasonably satisfactory to the Company, to the effect that the registration of the Shares and/or Warrant Shares under the Securities Act is not required in connection with such proposed transfer, (ii) a registration statement under the Securities Act covering such proposed disposition has been filed by the Company with the Commission and has become effective under the Securities Act and the holder has provided the Company with a statement that the Shares and/or the Warrant Shares were sold and prospectus delivery requirements satisfied, or (iii) the Company has received other evidence reasonably satisfactory to the Company that such registration and qualification under the Securities Act and state securities laws are not required; and (b) either (i) the Company has received an opinion of counsel reasonably satisfactory to the Company, to the effect that registration or qualification under the securities or "blue sky" laws of any state is not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or "blue sky" laws has been effected or a valid exemption exists with respect thereto.  The Company will respond to any such notice from a holder within three (3) business days.  In the case of any proposed transfer under this Section 5.1, the Company will use commercially reasonable efforts to comply with any such applicable state securities or "blue sky" laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable to the Company.  The restrictions on transfer contained in this Section 5.1 shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Agreement.

13

9.  Indemnification
 
(a)   Company Indemnity.  The Company agrees to indemnify and hold harmless the Purchasers (and their respective directors, officers, managers, partners, members, shareholders, affiliates, agents, successors and assigns) from and against any and all losses, liabilities, deficiencies, costs, damages and expenses (including, without limitation, reasonable attorneys' fees, charges and disbursements) incurred by the Purchasers as a result of any inaccuracy in or breach of the representations, warranties or covenants made by the Company herein.
 
(b)   Purchaser Indemnity.  Each Purchaser agrees to indemnify and hold harmless the Company (and its respective directors, officers, managers, partners, members, shareholders, affiliates, agents, successors and assigns) from and against any and all losses, liabilities, deficiencies, costs, damages and expenses (including, without limitation, reasonable attorneys' fees, charges and disbursements) incurred by the Company as a result of any inaccuracy in or breach of the representations, warranties or covenants made by the Purchaser herein.
 
(c)   Indemnification Procedure.  Any party entitled to indemnification under this Article VI (an “indemnified party”) will give written notice to the indemnifying party of any matters giving rise to a claim for indemnification; provided, that the failure of any party entitled to indemnification hereunder to give notice as provided herein shall not relieve the indemnifying party of its obligations under this Article VI except to the extent that the indemnifying party is actually prejudiced by such failure to give notice.  In case any action, proceeding or claim is brought against an indemnified party in respect of which indemnification is sought hereunder, the indemnifying party shall be entitled to participate in and, unless in the reasonable judgment of the indemnified party a conflict of interest between it and the indemnifying party may exist with respect of such action, proceeding or claim, to assume the defense thereof with counsel reasonably satisfactory to the indemnified party.  In the event that the indemnifying party advises an indemnified party that it will contest such a claim for indemnification hereunder, or fails, within thirty (30) days of receipt of any indemnification notice to notify, in writing, such person of its election to defend, settle or compromise, at its sole cost and expense, any action, proceeding or claim (or discontinues its defense at any time after it commences such defense), then the indemnified party may, at its option, defend, settle or otherwise compromise or pay such action or claim.  In any event, unless and until the indemnifying party elects in writing to assume and does so assume the defense of any such claim, proceeding or action, the indemnified party's costs and expenses arising out of the defense, settlement or compromise of any such action, claim or proceeding shall be losses subject to indemnification hereunder.  The indemnified party 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 the indemnified party which relates to such action or claim.  The indemnifying party shall keep the indemnified party fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.  If the indemnifying party elects to defend any such action or claim, then the indemnified party shall be entitled to participate in such defense with counsel of its choice at its sole cost and expense.  The indemnifying party shall not be liable for any settlement of any action, claim or proceeding effected without its prior written consent.  Notwithstanding anything in this Article VI to the contrary, the indemnifying party shall not, without the indemnified party's prior written consent, settle or compromise any claim or consent to entry of any judgment in respect thereof which imposes any future obligation on the indemnified party or which does not include, as an unconditional term thereof, the giving by the claimant or the plaintiff to the indemnified party of a release from all liability in respect of such claim.  The indemnification required by this Article VI shall be made by periodic payments of the amount thereof during the course of investigation or defense, as and when bills are received or expense, loss, damage or liability is incurred, so long as the indemnified party irrevocably agrees to refund such moneys if it is ultimately determined by a court of competent jurisdiction that such party was not entitled to indemnification.  The indemnity agreements contained herein shall be in addition to (a) any cause of action or similar rights of the indemnified party against the indemnifying party or others, and (b) any liabilities the indemnifying party may be subject to pursuant to the law.

14

10.  Miscellaneous
 
(a)   Confidentiality.  Except as otherwise required by law, prior to and after the Closing, no Purchaser shall, without the prior written consent of the Company, disclose to any other person or use (whether for the account of Purchaser or any other party) any confidential information or proprietary work product of the Company or any client of the Company.  In the event a Purchaser believes that it is required to disclose any such confidential information pursuant to applicable law, such Purchaser shall give timely written notice to the Company so that the Company may have an opportunity to obtain a protective order or other appropriate relief.  Each Purchaser shall cooperate fully in any such action by the Company.
 
(b)   Fees and Expenses.  Except as otherwise set forth in this Agreement and the other Transaction Documents, each party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and all other expenses, incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement
 
(c)   Specific Enforcement, Consent to Jurisdiction.
 
 The Company and the Purchasers acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement or the other Transaction Documents were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and the Transaction Documents and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other remedy to which any of them may be entitled by law or equity.
 
Each of the Company and the Purchasers (i) hereby irrevocably submits to the jurisdiction of the United States District Court sitting in the Southern District of New York and the courts of the State of New York located in New York county for the purposes of any suit, action or proceeding arising out of or relating to this Agreement or any of the other Transaction Documents or the transactions contemplated hereby or thereby and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper.  Each of the Company and the Purchasers consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing in this Section 7.2 shall affect or limit any right to serve process in any other manner permitted by law.
 
(d)   Entire Agreement; Amendment.  This Agreement and the Transaction Documents contains the entire understanding and agreement of the parties with respect to the matters covered hereby and, except as specifically set forth herein or in the Transaction Documents, neither the Company nor any of the Purchasers makes any representations, warranty, covenant or undertaking with respect to such matters and they supersede all prior understandings and agreements with respect to said subject matter, all of which are merged herein.
 
(e)   Notices.  Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery by telex (with correct answer back received), telecopy, e-mail or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be:

15

	
		
	If to the Company:
	Umami Sustainable Seafood Inc.
Chrysler Building
405 Lexington Ave., Suite 2640
New York, NY 10174

	 
	 

	with copies to:
	Loeb & Loeb LLP
345 Park Avenue
New York, New York 10154
Attention: Mitchell Nussbaum

	 
	 

	If to any Purchaser:
	At the address of such Purchaser set forth on Exhibit A to this Agreement, with copies to Purchaser's counsel as set forth on Exhibit A or as specified in writing by such Purchaser with copies to:
 
Aegis Capital Corp.
810 Seventh Avenue, 11th Floor
New York, New York 10019
Attention: Ed Cabrera, Head of Investment Banking
Tel. No.:  (212) 813-1010

	 
	 

	with a copy to:
	Gusrae, Kaplan, Bruno & Nusbaum, PLLC
120 Wall Street, 11 th Floor
New York, New York  10005
Attention:  Lawrence G. Nusbaum
Tel. No.:  (212) 269-1400

 
Any party hereto may from time to time change its address for notices by giving at least ten (10) days written notice of such changed address to the other party hereto.
 
(f)   Waivers.  No waiver by either party of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provisions, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.
 
(g)   Headings.  The article, section and subsection headings in this Agreement are for convenience only and shall not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof.
 
(h)   Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
 
(i)   No Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.
 
(j)   Governing Law.   This Agreement shall be governed by and construed solely and exclusively in accordance with the internal laws of the State of New York without regard to the conflicts of law principles thereof.
 
(k)   Survival.  The representations and warranties of the Company and the Purchasers shall survive the execution and delivery hereof and each Closing.

16

(l)   Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile or electronic transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.
 
(m)   Publicity.  The Company agrees that it will not disclose, and will not include in any public announcement, the name of the Purchasers without the consent of the Purchasers unless and until such disclosure is required by law or applicable regulation, and then only to the extent of such requirement.
 
(n)   Severability.  The provisions of this Agreement and the Transaction Documents are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions contained in this Agreement or the Transaction Documents shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement or the Transaction Documents and such provision shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to the maximum extent possible.
 
(o)   Further Assurances.  From and after the date of this Agreement, upon the request of any Purchaser or the Company, each of the Company and the Purchasers shall execute and deliver such instrument, documents and other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

17

Signature Page to Securities Purchase Agreement
 
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officer as of the date first above written.
 
	
			
	 
	UMAMI SUSTAINABLE SEAFOOD INC.

	 
	 

	 
	By: 
	/s/ Oli Steindorsson

	 
	 
	Name: Oli Steindorsson

	 
	 
	Title:   Chairman and Chief Executive Officer

	
			
	 
	PURCHASER

	 
	 

	 
	By: 
	   

	 
	 
	Name:

	 
	 
	Title:

	
		
	 
	Address of Purchaser

	 
	 

	 
	_____________________________________

	 
	_____________________________________

	 
	Email: ______________________

	 
	Telephone: ___________________

	 
	 

	 
	Number of Shares Purchased:   _______________

	 
	 

	 
	Number of Warrants Purchased: ______________

	 
	 

	 
	Purchase Price:  (No. of Shares multiplied by $1.50

	 
	per share):

	 
	 

	 
	$______________________

	 
	 

	 
	Escrow Agent Wire Instructions

	 
	 

	 
	Acct Name:   UMAMI SUSTAINABLE SEAFOOD INC

	 
	Acct #: 1501298227

	 
	ABA/Routing #: 026013576

	 
	SWIFT Code: SIGNUS33

	 
	Signature Bank

	 
	950 Third Ave, 9th FL

	 
	New York, NY 10022 Attn: PCG# 311

18

EXHIBIT A

	
										
	Name of Purchaser
	Number of Shares
	 
	Number of Warrants
	 
	Subscription Amount

	Robert Eide Pension Plan
	30,000
	

	 
	30,000
	

	 
	$
	45,000.00
	

	Stephen Blaser
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Jagdish Bansal
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Stan Cooper
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Brian Brooks
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Fred Harris and Debra Harris
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Kirk Galiani
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Perry Berg
	40,000
	

	 
	40,000
	

	 
	$
	60,000.00
	

	Tom Shafran
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Alex Mayers
	66,666
	

	 
	66,666
	

	 
	$
	100,000.00
	

	Ashvin Butala
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Bruce Eisen
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Ornella Dimanno
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Fermo Jaeckle
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Jerrold Kurtz
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Richard and Judy Hemingway
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Charles Desenberg and Phyllis M Beers
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	The John Francis Kneisel Revocable Trust                        Edmund M. Kneisel Trustee
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Blair Zurn
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Thomas and Vicki Dunlop
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Hirenda and Sandra Dave
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Dorinne Tal
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Alfred J. Galiani
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Roy Cappadona
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Larry Vinzant
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Gregory W Stewart
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	RG Michals Holdings Inc
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Robert D Mancuso
	100,000
	

	 
	100,000
	

	 
	$
	150,000.00
	

	Jayshree and Vinit Shah
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Joseph Santoro
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Dror Yehuda
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Guy Mercer
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Subroto and Somaletta Bhattacharya
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Isaac Oved
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Oved Brothers Realty
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Jeffrey B Manca
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	David M Ashear
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Sherya Jhaveri and Bharat Jhaveri
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

1

	
										
	Name of Purchaser
	Number of Shares
	 
	Number of Warrants
	 
	Subscription Amount

	Barbara Mishan
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Beenish Ikram
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Brian Brooks
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Charles Desenberg and Phyllis M. Beers
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Davex LLC
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	David Oved
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Elisabeth Anton
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Jerrold Kurtz
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	John Colby
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Jose Rebodoro
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Joseph Oved and Mary Oved
	40,000
	

	 
	40,000
	

	 
	$
	60,000.00
	

	Leon Gugel
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Mark Dady
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Michael Oved
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Ralph Gregory Attanasi and Huong Diem Attanasi
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Ramji and Neeru Gupta
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	RG Michals Holdings, Inc.
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Timothy Wells
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Tom Shafran
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Vesecko Zadro
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

2

	
										
	Name of Purchaser
	Number of Shares
	 
	Number of Warrants
	 
	Subscription Amount

	Anserfone, Inc.
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Bruce Eisen
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Daniel L. Boone
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Davex LLC
	40,000
	

	 
	40,000
	

	 
	$
	60,000.00
	

	Douglas A. Cisneros
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Dwight C. Paulsen
	30,000
	

	 
	30,000
	

	 
	$
	45,000.00
	

	Franklin P. Wang
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Gerald Moreland and Barbara A. Moreland
	40,000
	

	 
	40,000
	

	 
	$
	60,000.00
	

	Jackie Scaba
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	James B. Vining and Patrice A. Vining
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	John F. Kneisel
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Joseph A. Santoro
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Maria Valliades
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Melanie Wong
	30,000
	

	 
	30,000
	

	 
	$
	45,000.00
	

	Michael Cunningham and Brian Cunningham
	60,000
	

	 
	60,000
	

	 
	$
	90,000.00
	

	Oved Brothers Realty
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Oystein Haaverstad
	60,000
	

	 
	60,000
	

	 
	$
	90,000.00
	

	Stephen Kupferberg
	40,000
	

	 
	40,000
	

	 
	$
	60,000.00
	

	Thomas Ware Fry
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Vitale Capital Management Group, Inc.
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

3

	
										
	Name of Purchaser
	Number of Shares
	 
	Number of Warrants
	 
	Subscription Amount

	Timothy Wells
	50,000
	

	 
	50,000
	

	 
	$
	75,000.00
	

	Farhad Torabkhan and Douglas A. Cisneros
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	H. Boyd Harris and Deborah A. Harris
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Michael Holl
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Larry Wattenberg
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

4UMAM-EX 4.13 Registration Rights Agreement

REGISTRATION RIGHTS AGREEMENT
 
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of October 18, 2010, between Umami Sustainable Seafood Inc., a Nevada corporation  (the “Company”), and the investors whose names are set forth on Exhibit A hereto, as Exhibit A may be updated from time to time (the “Investor”).
 
This Agreement is made pursuant to that certain Subscription Agreement (the “Subscription Agreement”), dated as of the date hereof, between the Company and the Investor.
 
The parties accordingly agree as follows:
 
ARTICLE I
DEFINITIONS.
 
Capitalized terms used and not otherwise defined herein that are defined in the Subscription Agreement shall have the meanings given such terms in the Subscription Agreement.  As used in this Agreement, the following terms shall have the following meanings:
 
1.1            “Commission” means the Securities and Exchange Commission.
 
1.2            “Common Stock” means shares of the Company's common stock, par value $0.001 per share.
 
1.3            “Company” is defined in the Preamble.
 
1.4            “Demand Notice” is defined in Section 2.1.
 
1.5             “Effective Date” means the date on which the Commission declares a Registration Statement effective.
 
1.6            “Effectiveness Deadline” means a date no later than one hundred twenty (120) days following the Filing Deadline.
 
1.7            “Effectiveness Period” means the period commencing on the Effective Date and ending on the earlier of the date when all of the Registrable Securities covered by such Registration Statement have been sold or otherwise no longer meet the definition of Registrable Securities.
 
1.8            “Event” is defined in Section 2.4.
 
1.9            “Event Date” is defined in Section 2.4.
 
1.10          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor statute.
 
1.11          “Filing Deadline” means a date no later than one hundred twenty (120) days following the date of this Agreement.
 
1.12          “Holder” or “Holders” means the Investor and any other person holding Registrable Securities or any of their respective affiliates or transferees to the extent any of them hold Registrable Securities, other than those purchasing Registrable Securities in a market transaction.
 
1.13          “Indemnified Party” is defined in Section 6.3.

1.14            “Indemnifying Party” is defined in Section 6.3.
 
1.15            “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.
 
1.16            “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.
 
1.17            “Subscription Agreement” is defined in the Preamble.
 
1.18            “Registrable Securities” means the (i) Shares, (ii) the Warrant Shares and (iii) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing, provided, that any of the foregoing securities shall cease to be Registrable Securities  at such time that such securities can be sold under Rule 144 without any volume and/or other limitations and/or restrictions.
 
1.19            “Registration Statement” means each registration statement required to be filed hereunder, including the Prospectus therein, amendments and supplements to such 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 such registration statement.  Notwithstanding the foregoing, Registration Statement excludes a registration statement on Form S-4 or Form S-8, or their successors, or any registration statement covering only securities proposed to be issued in exchange for securities or assets of another entity.
 
1.20            “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.
 
1.21            “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.
 
1.22            “Securities Act” means the Securities Act of 1933, as amended, and any successor statute.
 
1.23            “Shares” means the shares of Common Stock issued pursuant to the Subscription Agreement.
 
1.24            “Trading Market” means any of the NASD Over The Counter Bulletin Board, the Pink Sheets, NASDAQ Capital Market, the NASDAQ Global Market, the American Stock Exchange or the New York Stock Exchange.
 
1.25            “Warrants” means the common stock purchase warrants issued in connection with the Subscription Agreement.
 
1.26            “Warrant Shares” means the shares of Common Stock issued or issuable upon exercise of the Warrants.

 
2

ARTICLE II
AUTOMATIC REGISTRATION.
 
2.1             Registration. The Company shall, on or prior to the Filing Deadline, prepare and file with the Commission a Registration Statement covering the Registrable Securities for a selling stockholder resale offering to be made on a continuous basis pursuant to Rule 415.  Each Registration Statement shall be on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form in accordance herewith).  The Company shall use its commercially reasonable efforts to cause the Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in no event later than the Effectiveness Deadline, and to remain effective continuously throughout the Effectiveness Period.  The Company shall promptly notify the Holders via facsimile or electronic mail of the effectiveness of a Registration Statement within one (1) business day of the Effective Date. The Company shall, by 9:30 a.m. New York City time on the first business day after the Effective Date, file a final Prospectus with the Commission, as required by Rule 424(b) of the Securities Act.  Notwithstanding the registration obligations set forth in this Article II, in the event the Commission informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale on a single registration statement, the Company agrees to promptly (i) inform each of the Holders thereof, (ii) use its best efforts to file amendments to the Registration Statement as required by the Commission and/or (iii) withdraw the Registration Statement and file a new registration statement (a “New Registration Statement”), in either case covering the maximum number of Registrable Securities permitted to be registered by the Commission, on Form S-3 or such other form available to register for resale the Registrable Securities as a secondary offering; provided, however, that prior to filing such amendment or New Registration Statement, the Company shall be obligated to use its commercially reasonable efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance. In the event the Company amends the initial Registration Statement or files a New Registration Statement, as the case may be, under clauses (ii) or (iii) above, the Company will use its commercially reasonable efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on Form S-3 or such other form available to register for resale those Registrable Securities that were not registered for resale on the Registration Statement, as amended, or the New Registration Statement (the “Remainder Registration Statements”).
 
2.2             Selling Stockholder Questionnaire.  Each Holder desiring to have its Registrable Securities included in a Registration Statement under this Article II agrees to furnish to the Company a completed selling stockholder questionnaire in the form attached as Schedule 2.3 (the “Selling Stockholder Questionnaire”) at least ten (10) business days prior to the Filing Deadline.  The Company shall inform each holder of Registrable Securities at least 30 business days in advance of the filing of any registration statement that the Company is filing a resale registration statement covering any Registrable Securities and informing such holders in such notice of the holder's requirement to complete a Selling Shareholder Questionnaire and return it to the Company by a date specified in such notice that is 10 business days prior to the proposed filing date of the registration statement covering the Registrable Securities.  The Company shall notify a Holder if it requires additional information from that Holder other than the information contained in the Selling Stockholder Questionnaire, which additional information shall be completed and delivered to the Company promptly following such request.  Each Holder further agrees that it shall not be entitled to be named as a selling security holder in the Registration Statement or use the Prospectus for offers and resales of Registrable Securities at any time, unless such Holder has returned to the Company a completed and signed Selling Stockholder Questionnaire and a response to any requests for further information as described in the previous sentence. If a Holder of Registrable Securities returns a Selling Stockholder Questionnaire or a request for further information, in either case, after its respective deadline, the Company shall use its commercially reasonable efforts at the expense of the Holder who failed to return the Selling Stockholder Questionnaire or to respond for further information to take such actions as are required to name such Holder as a selling security holder in the Registration Statement or any pre-effective amendment thereto and to include (to the extent not theretofore included) in the Registration Statement the Registrable Securities identified in such late Selling Stockholder Questionnaire or request for further information. Each Holder acknowledges and agrees that the information in the Selling Stockholder Questionnaire or request for further information as described in this Section 2.3 will be used by the Company in the preparation of the Registration Statement and hereby consents to the inclusion of such information in the Registration Statement.

 
3

2.3             Liquidated Damages.  If: (i) a Registration Statement is not filed with the Commission on or prior to the Filing Deadline, or (ii) a Registration Statement is not declared effective by the Commission (or otherwise does not become effective) for any reason on or prior to the Effectiveness Deadline (any such failure or breach in clauses (i) and (ii) above being referred to as an “Event” and the date on which such Event occurs being referred to as an “Event Date”), then in addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to the Holder an amount in cash, as liquidated damages and not as a penalty (“Liquidated Damages”), equal to one percent (1.0%) of the aggregate purchase price paid by such Holder pursuant to the Subscription Agreement for any Registrable Securities held by such Holder on the Event Date.  The parties agree that (1) notwithstanding anything to the contrary herein or in the Subscription Agreement, no Liquidated Damages shall be payable with respect to any period after the expiration of the Effectiveness Period (it being understood that this sentence shall not relieve the Company of any Liquidated Damages accruing prior to the Effectiveness Period), and in no event shall the aggregate amount of Liquidated Damages payable to a Holder exceed, in the aggregate, four percent (4%) of the aggregate purchase price paid by such Holder pursuant to the Subscription Agreement and (2) in no event shall the Company be liable in any 30-day period for Liquidated Damages under this Agreement in excess of 1.0% of the aggregate purchase price paid by the Holders pursuant to the Subscription Agreement.  The Liquidated Damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event, except in the case of the first Event Date.  The Company shall not be liable for Liquidated Damages under this Agreement as to any Registrable Securities which are not permitted by the Commission to be included in a Registration Statement due solely to the Commission's guidance on Rule 415 from the time that it is determined that such Registrable Securities are not permitted to be registered until such time as the provisions of this Agreement as to the Remainder Registration Statements required to be filed hereunder are triggered, in which case the provisions of this Section 2.3 shall once again apply.  In such case, the Liquidated Damages shall be calculated to only apply to the percentage of Registrable Securities which are permitted in accordance with Rule 415 to be included in such Registration Statement .
 
2.4             Material Non-Public Information.  Notwithstanding anything to the contrary herein, at any time after the Registration Statement has been declared effective by the Commission, the Company may delay the disclosure of material non-public information concerning the Company if the disclosure of such information at the time is not, in the good faith judgment of the Company, in the best interests of the Company (a “Grace Period”); provided, however, the Company shall promptly (i) notify the Holders in writing of the existence of material non-public information giving rise to a Grace Period (provided that the Company shall not disclose the content of such material non-public information to the Holders) or the need to file a post-effective amendment, as applicable, and the date on which such Grace Period will begin, and (ii) notify the Holders in writing of the date on which the Grace Period ends; provided, further, that no single Grace Period shall exceed thirty (30) consecutive days, and during any three hundred sixty-five (365) day period, the aggregate of all Grace Periods shall not exceed an aggregate of sixty (60) days (each Grace Period complying with this provision being an “Allowable Grace Period”).  In the event the Company does disclose the content of such material non-public information that is the subject of subpart (i) above to any Holder without its consent, the Company shall make public disclosure of such material nonpublic information within two (2) Trading Days of such disclosure and no Grace Period shall apply.  For purposes of determining the length of a Grace Period, the Grace Period shall be deemed to begin on and include the date the Holders receive the notice referred to in clause (i) above and shall end on and include the later of the date the Holders receive the notice referred to in clause (ii) above and the date referred to in such notice; provided, however, that no Grace Period shall be longer than an Allowable Grace Period.  Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended certificates to a transferee of a Holder in accordance with the terms of the Subscription Agreement in connection with any sale of Registrable Securities with respect to which a Holder has entered into a contract for sale prior to the Holder's receipt of the notice of a Grace Period and for which the Holder has not yet settled.
 
ARTICLE III
COMPANY REGISTRATION
 
3.1             Notice of Registration.  If at any time or from time to time the Company shall determine to register any of its Common Stock exclusively for cash, either for its own account or the account of security holders, other than (i) a registration on Form S-8 or otherwise relating solely to employee benefit plans, (ii) a registration on Form S-4, (iii) a registration on any other form which does not permit secondary sales, or (iv) a registration on any other form which does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities, the Company shall:

 
4

(a)            promptly give to each Holder written notice thereof; and
 
(b)            except as set forth in Section 3.2, include in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all Registrable Securities as are specified in a written request or requests, actually received by the Company within 20 days after receipt of such written notice from the Company, by any Holder.
 
3.2           Underwritten Offerings.  If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company shall so advise the Holders as a part of the written notice given pursuant to Section 3.1.  In such event the right of any Holder to registration pursuant to Section 3.1 shall be conditioned upon such Holder's participation in such underwriting and the inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein.  All Holders proposing to distribute their securities through such underwriting shall (together with the Company and the other holders distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the managing underwriter selected for such underwriting by the Company.  The foregoing shall include, without limitation, such powers of attorney and escrow agreements as the underwriters may require.  Notwithstanding any other provision of Article III, if the managing underwriter determines that marketing factors require a limitation of the number of shares to be underwritten, the managing underwriter may limit the Registrable Securities to be included in such registration, it being understood that the shares proposed to sold by the Company in such underwriting shall be given priority and shall not be subject to any such limitation vis-a-vis the Registrable Securities.  The Company shall so advise all Holders and other holders distributing their securities through such underwriting, and the number of shares of Registrable Securities that may be included in the registration and underwriting shall be allocated among all Holders and such other holders in proportion, as nearly as practicable, to the respective amounts of Registrable Securities held by such Holders and such other holders at the time of filing the registration statement.  To facilitate the allocation of shares in accordance with the above provisions, the Company may round the number of shares allocated to any Holder to the nearest 100 shares.  If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the managing underwriter.
 
The Registrable Securities so excluded or withdrawn shall also be excluded or withdrawn from registration, and neither such Registrable Securities nor any securities convertible into or exchangeable or exercisable for Common Stock shall be sold in any public sale or other distribution, without the prior written consent of the Company or such underwriters, for such period of time before and after (not to exceed thirty (30) days before and ninety (90) days after) the effective date of the registration statement relating thereto as the underwriters may require.
 
3.3           Company Termination of Registration.  The Company reserves the right to terminate any registration under this Article III at any time and for any reason without liability to any Holder.
 
ARTICLE IV
REGISTRATION PROCEDURES
 
4.1           Registration Procedures.   If and whenever the Company is required by the provisions of Articles II or III hereof to effect the registration of any Registrable Securities under the Securities Act, the Company will, as expeditiously as possible:
 
(a)            prepare and file with the Commission a Registration Statement with respect to such Registrable Securities, respond as promptly as possible to any comments received from the Commission, and use its commercially reasonable efforts to cause such Registration Statement to become and remain effective for the Effectiveness Period with respect thereto, and the Investor shall have the opportunity to object to any information pertaining to itself that is contained therein and the Company will make the corrections reasonably requested by the Investor with respect to such information prior to filing any Registration Statement or amendment thereto or any Prospectus or any supplement thereto;

 
5

(b)            prepare and file with the Commission such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such Registration Statement and to keep such Registration Statement effective until the expiration of the Effectiveness Period applicable to such Registration Statement;
 
(c)            furnish to the Investor such number of copies of the Registration Statement and the Prospectus included therein (including each preliminary Prospectus and any amendments and supplements to the Registration Statement and the Prospectus) and such other documents as the Investor reasonably may request to facilitate the public sale or disposition of the Registrable Securities covered by such Registration Statement;
 
(d)            use its commercially reasonable efforts to register or qualify the Investor's Registrable Securities covered by such Registration Statement under the securities or “blue sky” laws of such jurisdictions within the United States as the Investor may reasonably request and do any and all other acts and things which may be reasonably necessary or advisable to enable the Investor to consummate the disposition in such jurisdiction of the Registrable Securities, provided, however, that the Company shall not for any such purpose be required to qualify generally to transact business as a foreign corporation in any jurisdiction where it is not so qualified or to consent to general service of process in any such jurisdiction;
 
(e)            list the Registrable Securities covered by such Registration Statement with any securities exchange on which the Common Stock of the Company is then listed.
 
(f)            immediately notify the Investor at any time when a Prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as a result of which the Prospectus contained in such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and, at the request of the Investor, the Company shall prepare a supplement or amendment to such Prospectus so that, as thereafter delivered to the purchasers of Registrable Securities, such Prospectus shall not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statement therein not misleading;
 
(g)            provide a transfer agent and registrar for all such Registrable Securities not later than the effective date of such Registration Statement; and
 
(h)            at all times after the Company has filed a Registration Statement with the SEC pursuant to the requirements of either the Securities Act or the Exchange Act, the Company shall file all reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder, and take such further action as the Investor may reasonably request, all to the extent required to enable the Investor to be eligible to sell Registrable Securities pursuant to Rule 144 (or any similar rule then in effect).
 
ARTICLE V
REGISTRATION EXPENSES.
 
5.1           Registration Expenses.   All expenses relating to the Company's compliance with Articles II and III hereof, including, without limitation, all registration, filing and listing application fees, costs of distributing any prospectuses and supplements thereto, printing expenses, fees and disbursements of counsel and independent public accountants for the Company, (including counsel fees) incurred in connection with complying with state securities or “blue sky” laws, fees of FINRA, transfer taxes, fees of transfer agents and registrars (collectively, the “Registration Expenses”) shall be borne by the Company.  The obligation of the Company to bear the Registration Expenses shall apply irrespective of whether a registration, becomes effective, is withdrawn or suspended, is converted to another form of registration and irrespective of when any of the foregoing shall occur.  Notwithstanding the foregoing, if because of the allocation of Registration Expenses set forth above, the Company is unable to register or qualify its securities under the “blue sky” or state securities laws of any jurisdiction in which the Company had originally intended to register or qualify its securities, the Holders shall bear all incremental expenses of such registration attributable to such inability.

 
6

5.2             Selling Expenses. All underwriting discounts and selling commissions applicable to the sale of Registrable Securities, and any fees and disbursements of any counsel to the Holders (collectively, the “Selling Expenses”)  shall be borne by the Holders in proportion to the aggregate selling price of the Registrable Securities of each Holder to be so registered.
 
ARTICLE VI
INDEMNIFICATION.
 
6.1             Company Indemnification.   In the event of a registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company shall indemnify and hold harmless each Holder, and its officers, directors and each other person, if any, who controls such Holder within the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such Holder, or such persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any Registration Statement under which such Registrable Securities were registered under the Securities Act pursuant to this Agreement, any preliminary Prospectus or final Prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or any violation or alleged violation by the Company of the Securities Act, the Exchange Act or applicable “blue sky” laws, and shall reimburse such Holder, and each such person for any legal or other expenses incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case if and to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished in writing by or on behalf of a Holder specifically for use in any such document.
 
6.2             Holder Indemnification.  Each Holder of Registrable Securities included in a Registration Statement pursuant to this Agreement shall indemnify and hold harmless the Company, and its officers, directors and each other person, if any, who controls the Company within the meaning of the Securities Act, against all losses, claims, damages or liabilities, joint or several, to which the Company or such persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact which was furnished in writing by the Investor to the Company expressly for use in (and such information is contained in) the Registration Statement under which such Registrable Securities were registered under the Securities Act pursuant to this Agreement, any preliminary Prospectus or final Prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and shall reimburse the Company and each such person for any reasonable legal or other expenses incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action, provided, however, that a Holder shall be liable in any such case if and only to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished in writing to the Company by or on behalf of such Holder specifically for use in any such document.  Notwithstanding the provisions of this paragraph, a Holder shall not be required to indemnify any person or entity in excess of the amount of the aggregate net proceeds received by the Holder in respect of Registrable Securities in connection with any such registration under the Securities Act.

 
7

6.3             Indemnification Procedures.  Promptly after receipt by a party entitled to claim indemnification hereunder (an “Indemnified Party”) of notice of the commencement of any action, such Indemnified Party shall, if a claim for indemnification in respect thereof is to be made against a party hereto obligated to indemnify such Indemnified Party (an “Indemnifying Party”), notify the Indemnifying Party in writing thereof, but the omission so to notify the Indemnifying Party shall not relieve it from any liability which it may have to such Indemnified Party other than under this Section 6.3 and shall only relieve it from any liability which it may have to such Indemnified Party under this Section 6.3 if and to the extent the Indemnifying Party is prejudiced by such omission. In case any such action shall be brought against any Indemnified Party and it shall notify the Indemnifying Party of the commencement thereof, the Indemnifying Party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel satisfactory to such Indemnified Party, and, after notice from the Indemnifying Party to such Indemnified Party of its election so to assume and undertake the defense thereof, the Indemnifying Party shall not be liable to such Indemnified Party under this Section 6.3 for any legal expenses subsequently incurred by such Indemnified Party in connection with the defense thereof; if the Indemnified Party retains its own counsel, then the Indemnified Party shall pay all fees, costs and expenses of such counsel; provided, however, that, if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and the Indemnified Party shall have reasonably concluded that there may be reasonable defenses available to it which are different from or additional to those available to the Indemnifying Party or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying Party, the Indemnified Party shall have the right to select one separate counsel and to assume such legal defenses and otherwise to participate in the defense of such action, with the reasonable expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred.
 
6.4             Contribution.  In order to provide for just and equitable contribution in the event of joint liability under the Securities Act in any case in which either (i) a Holder, or any officer, director or controlling person of a Holder, makes a claim for indemnification pursuant to this Section 6.4 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 6.4 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of the Investor or such officer, director or controlling person of the Investor in circumstances for which indemnification is provided under this Section 6.4; then, and in each such case, the Company and the Investor shall contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in such proportion so that the Investor is responsible only for the portion represented by the percentage that the public offering price of its securities offered by the Registration Statement bears to the public offering price of all securities offered by such Registration Statement, provided, however, that, in any such case, (A) the Investor shall not be required to contribute any amount in excess of the net proceeds received by a holder from the sale of all such securities sold by it pursuant to such Registration Statement; and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the Act) shall be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation.
 
6.5             Survival.  The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and shall survive the transfer of securities.
 
ARTICLE VII
MISCELLANEOUS.
 
7.1             Compliance.  Each Holder covenants and agrees that it shall comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to any Registration Statement.

 
8

7.2           Discontinued Disposition.  Each Holder agrees by its acquisition of Registrable Securities that, upon receipt of a notice from the Company of the occurrence of a Discontinuation Event (as defined below), such Holder shall forthwith discontinue disposition of such Registrable Securities under the applicable Registration Statement until such Holder's receipt of the copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement.  The Company may provide appropriate stop orders to enforce the provisions of this Section 7.2.  For purposes of this Agreement, a “Discontinuation Event” shall mean (i) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration Statement (the Company shall provide true and complete copies thereof and all written responses thereto to each of the Holders); (ii) any request by the Commission or any other Federal or state governmental authority for amendments or supplements to such Registration Statement or Prospectus or for additional information; (iii) the issuance by the Commission of any stop order suspending the effectiveness of such Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and/or (v) the occurrence of any event or passage of time that makes the financial statements included in such Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
 
7.3           Entire Agreement.  This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof.  No provision of this Agreement may be explained or qualified by any prior or contemporaneous understanding, negotiation, discussion, conduct, or course of conduct or by any trade usage, and, except as otherwise expressly stated herein, there is no condition precedent to the effectiveness of any provision hereof.  No party has relied on any representation, warranty, or agreement of any person in entering this Agreement, except those expressly stated herein.
 
7.4           Counterparts; Facsimile Signatures.   This Agreement may be executed in counterparts, each of which shall constitute an original, but all of which shall constitute one agreement.  This Agreement shall become effective upon delivery to each party of an executed counterpart or the earlier delivery to each party of original, photocopied, or electronically transmitted signature pages that together (but need not individually) bear the signatures of all other parties.
 
7.5           Amendments; Waivers; Remedies.
 
(a)            This Agreement cannot be amended, except by a writing signed by each party, or terminated orally or by course of conduct.  No provision hereof can be waived, except by a writing signed by the party against whom such waiver is to be enforced, and any such waiver shall apply only in the particular instance in which such waiver shall have been given. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of certain Holders and that does not directly or indirectly affect the rights of other Holders may be given by Holders of at least a majority of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the immediately preceding sentence.
 
(b)            Neither any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction of any condition herein nor any course of dealing shall constitute a waiver of or prevent any party from enforcing any right or remedy or from requiring satisfaction of any condition.  No notice to or demand on a party waives or otherwise affects any obligation of that party or impairs any right of the party giving such notice or making such demand, including any right to take any action without notice or demand not otherwise required by this Agreement.  No exercise of any right or remedy with respect to a breach of this Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved party whole with respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.
 
(c)            Except as otherwise expressly provided herein, no statement herein of any right or remedy shall impair any other right or remedy stated herein or that otherwise may be available.

 
9

(d)            Notwithstanding anything else contained herein, neither shall any party seek, nor shall any party be liable for, punitive or exemplary damages, under any tort, contract, equity, or other legal theory, with respect to any breach (or alleged breach) of this Agreement or any provision hereof or any matter otherwise relating hereto or arising in connection herewith. ]
 
7.6           Notices.  Any notice hereunder shall be sent in writing, addressed as specified below, and shall be deemed given:  if by hand or recognized courier service, by 4:00PM on a business day, addressee's day and time, on the date of delivery, and otherwise on the first business day after such delivery; if by fax, on the date that transmission is confirmed electronically, if by 4:00PM on a business day, addressee's day and time, and otherwise on the first business day after the date of such confirmation; or five days after mailing by certified or registered mail, return receipt requested.  Notices shall be addressed to the respective parties as follows (excluding telephone numbers, which are for convenience only), or to such other address as a party shall specify to the others in accordance with these notice provisions:
 
To Company, at:

Umami Sustainable Seafood, Inc.
Chrysler Building
405 Lexington Ave., Suite 2640
New York, NY 10174
Telephone: (212) 907-6492
 
with a copy (not constituting notice) to

Loeb & Loeb LLP
345 Park Avenue
New York, New York 10154
Attention: Mitchell Nussbaum
Fax:  (212) 937-3943
Telephone: (212) 407-4159
 
To Investor at
 
The address specified on the signature page hereto.
 
To any other Person who is then the registered Holder at the address of such Holder as it appears in the stock transfer books of the Company
 
7.7           Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including without limitation and without the need for an express assignment, subsequent Holders of Registrable Securities.
 
7.8           Further Assurances.  Each party shall execute and deliver such documents and take such action, as may reasonably be considered within the scope of such party's obligations hereunder, necessary to effectuate the transactions contemplated by this Agreement.
 
7.9           Choice of Law and Forum; Service of Process.
 
(a)            This Agreement, any disputed matter arising hereunder, including the construction, interpretation, or validity of any provision hereof or performance thereof, or any other matter relating hereto or arising in connection herewith (whether in tort, contract, equity, or otherwise) (any such matter, a “Disputed Matter”) is and shall be governed by and enforced in accordance with the laws of the State of New York, excluding its choice of law rules.

 
10

(b)            Subject to Section 7.9(c), no party shall bring or maintain any action or proceeding with respect to any Disputed Matter (“Dispute Proceeding”), except in the Federal District Court for the Southern District of New York, or, if such court lacks subject matter jurisdiction, the Supreme Court sitting in New York County, New York.  Each party irrevocably submits and consents to the jurisdiction of such courts, and no party shall object to the laying of venue in any such court or claim that any such court is an inconvenient forum.
 
(c)            Nothing herein shall affect the right of any party to enforce any judgment in any jurisdiction or the rule that any matter of internal governance of a corporation or other entity is determined under the laws of the state pursuant to which the corporation or other entity is incorporated or formed.
 
(d)            Each party irrevocably consents to service of process, by any means authorized in Section 7.6, in respect of any Dispute Proceeding.
 
[Balance of page intentionally left blank; signature page follows]

 
11

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

	
		
	UMAMI SUSTAINABLE SEAFOOD INC.

	 

	By: 
	   

	 
	Name:

	 
	Title:

	
		
	 
	SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT

 
 12

 

	
		
	[INVESTOR]

	 

	By: 
	  

	 
	Name:

	 
	Title:

	 

	Address for Notices:

	 

	Attention:

	Facsimile:

	with copy to:

	
		
	 
	SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT

 
 13

 
 

Schedule 2.3
 
Selling Stockholder Questionnaire

14

SELLING STOCKHOLDER QUESTIONNAIRE

EXHIBIT A

	
										
	Name of Purchaser
	Number of Shares
	 
	Number of Warrants
	 
	Subscription Amount

	Robert Eide Pension Plan
	30,000
	

	 
	30,000
	

	 
	$
	45,000.00
	

	Stephen Blaser
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Jagdish Bansal
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Stan Cooper
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Brian Brooks
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Fred Harris and Debra Harris
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Kirk Galiani
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Perry Berg
	40,000
	

	 
	40,000
	

	 
	$
	60,000.00
	

	Tom Shafran
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Alex Mayers
	66,666
	

	 
	66,666
	

	 
	$
	100,000.00
	

	Ashvin Butala
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Bruce Eisen
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Ornella Dimanno
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Fermo Jaeckle
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Jerrold Kurtz
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Richard and Judy Hemingway
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Charles Desenberg and Phyllis M Beers
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	The John Francis Kneisel Revocable Trust                        Edmund M. Kneisel Trustee
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Blair Zurn
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Thomas and Vicki Dunlop
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Hirenda and Sandra Dave
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Dorinne Tal
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Alfred J. Galiani
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Roy Cappadona
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Larry Vinzant
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Gregory W Stewart
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	RG Michals Holdings Inc
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Robert D Mancuso
	100,000
	

	 
	100,000
	

	 
	$
	150,000.00
	

	Jayshree and Vinit Shah
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Joseph Santoro
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Dror Yehuda
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Guy Mercer
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Subroto and Somaletta Bhattacharya
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Isaac Oved
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Oved Brothers Realty
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Jeffrey B Manca
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	David M Ashear
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Sherya Jhaveri and Bharat Jhaveri
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

1

	
										
	Name of Purchaser
	Number of Shares
	 
	Number of Warrants
	 
	Subscription Amount

	Barbara Mishan
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Beenish Ikram
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Brian Brooks
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Charles Desenberg and Phyllis M. Beers
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Davex LLC
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	David Oved
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Elisabeth Anton
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Jerrold Kurtz
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	John Colby
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Jose Rebodoro
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Joseph Oved and Mary Oved
	40,000
	

	 
	40,000
	

	 
	$
	60,000.00
	

	Leon Gugel
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Mark Dady
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Michael Oved
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Ralph Gregory Attanasi and Huong Diem Attanasi
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Ramji and Neeru Gupta
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	RG Michals Holdings, Inc.
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Timothy Wells
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Tom Shafran
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Vesecko Zadro
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

2

	
										
	Name of Purchaser
	Number of Shares
	 
	Number of Warrants
	 
	Subscription Amount

	Anserfone, Inc.
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Bruce Eisen
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Daniel L. Boone
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Davex LLC
	40,000
	

	 
	40,000
	

	 
	$
	60,000.00
	

	Douglas A. Cisneros
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Dwight C. Paulsen
	30,000
	

	 
	30,000
	

	 
	$
	45,000.00
	

	Franklin P. Wang
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Gerald Moreland and Barbara A. Moreland
	40,000
	

	 
	40,000
	

	 
	$
	60,000.00
	

	Jackie Scaba
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	James B. Vining and Patrice A. Vining
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	John F. Kneisel
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Joseph A. Santoro
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Maria Valliades
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Melanie Wong
	30,000
	

	 
	30,000
	

	 
	$
	45,000.00
	

	Michael Cunningham and Brian Cunningham
	60,000
	

	 
	60,000
	

	 
	$
	90,000.00
	

	Oved Brothers Realty
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Oystein Haaverstad
	60,000
	

	 
	60,000
	

	 
	$
	90,000.00
	

	Stephen Kupferberg
	40,000
	

	 
	40,000
	

	 
	$
	60,000.00
	

	Thomas Ware Fry
	20,000
	

	 
	20,000
	

	 
	$
	30,000.00
	

	Vitale Capital Management Group, Inc.
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

3

	
										
	Name of Purchaser
	Number of Shares
	 
	Number of Warrants
	 
	Subscription Amount

	Timothy Wells
	50,000
	

	 
	50,000
	

	 
	$
	75,000.00
	

	Farhad Torabkhan and Douglas A. Cisneros
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	H. Boyd Harris and Deborah A. Harris
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Michael Holl
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

	Larry Wattenberg
	10,000
	

	 
	10,000
	

	 
	$
	15,000.00
	

4

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