Document:

Exhibit 10.2

 

Exhibit 10.2

 

YOUNGEVITY INTERNATIONAL, INC.

 

SHARE PURCHASE AGREEMENT

 

This
Share Purchase Agreement (this “Agaareement”) is dated as
of

 

August
, 2018, among Youngevity International, Inc., a Delaware
corporation (the “Company”), and each
purchaser identified on the signature pages hereto (each, including
its successors and assigns, a “Purchaser” and
collectively the “Purchasers”).

 

RECITALS

 

A.           The
Company and each Purchaser is executing and delivering this
Agreement in reliance upon the exemption from securities
registration afforded by Section 4(a)(2) of the Securities Act, and
Rule 506 of Regulation D (“Regulation D”) as
promulgated by the United States Securities and Exchange Commission
(the “Commission”) under the
Securities Act.

 

B.           Each
Purchaser, severally and not jointly, wishes to purchase, and the
Company wishes to sell, upon the terms and conditions stated in
this Agreement, that aggregate number of shares of Preferred Stock
set forth below such Purchaser’s name on the signature page
of this Agreement as provided herein.

 

C.           Contemporaneously
with the execution and delivery of this Agreement, the parties
hereto are executing and delivering the Registration Rights
Agreement, pursuant to which, among other things, the Company will
agree to provide certain registration rights with respect to the
Shares under the Securities Act and the rules and regulations
promulgated thereunder and applicable state securities
laws.

 

AGREEMENT

 

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

 

ARTICLE I

DEFINITIONS

 

1.1 Definitions. In addition to the
terms defined elsewhere in this Agreement, for all purposes of this
Agreement, the following terms have the meanings set forth in this
Section 1.1:

 

“Affiliate” means any
Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under
Rule 144 under the Securities Act. With respect to a Purchaser, any
investment fund or managed account that is managed on a
discretionary basis by the same investment manager as such
Purchaser will be deemed to be an Affiliate of such
Purchaser.

 

“Business Day” means any
day except Saturday, Sunday, any day which shall be a federal legal
holiday in the United States or any day on which banking
institutions in the State of New York are authorized or required by
law or other governmental action to close.

 

“Certificate of
Designation” means the Certificate of Designation to
be filed prior to the Closing by the Company with the Secretary of
State of Delaware in the form of Exhibit A
attached hereto.

 

 “Closing”
means the closing of the purchase and sale of the Shares pursuant
to Section

 

 

 

-1-

 

 

2.1.

 

“Closing Date” means the
date and time of the Closing.

 

“Commission” means the
Securities and Exchange Commission.

 

“Common Stock” means the
Common Stock of the Company, par value $0.001 per share, and any
other class of securities into which such securities may hereafter
be reclassified or changed into.

 

“Common Stock Equivalents”
means any securities of the Company or the Subsidiaries which would
entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, rights,
options, warrants or other instrument that is at any time
convertible into or exercisable or exchangeable for, or otherwise
entitles the holder thereof to receive, Common Stock.

 

“Company Counsel” means
Gracin & Marlow, LLP, with offices located at the Chrysler
Building, 405 Lexington Avenue, New York, New York,
10174.

 

 “Exchange
Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated
thereunder.

 

“GAAP” shall have the
meaning ascribed to such term in Section 3.1(e).

 

“Incentive Warrants” shall
have the meaning ascribed to such term in Section 4.6.

 

“Intellectual Property”
shall have the meaning ascribed to such term in Section
3.1(o).

 

 “Liens”
means a lien, charge, security interest, encumbrance, right of
first refusal, preemptive right or other restriction.

 

“Material Adverse Effect”
shall have the meaning assigned to such term in Section
3.1(a).

 

“Per Share Purchase Price”
equals $9.50.

 

“Person” means an
individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or
subdivision thereof) or other entity of any kind.

 

“Preferred Stock” means
the shares of Company Series C Convertible Preferred Stock to be
issued to the Purchasers.

 

“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.

 

“Purchaser Party” shall
have the meaning ascribed to such term in Section 4.5.

 

“Registration Rights
Agreement” means the Registration Rights Agreement,
dated the date hereof, among the Company and the Purchasers, in the
form of Exhibit B
attached hereto.

 

 

 

-2-

 

 

“Registration Statement”
means a registration statement meeting the requirements set forth
in the Registration Rights Agreement and covering the resale by the
Purchasers of the Underlying Shares.

 

“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.

 

“SEC Documents” shall have
the meaning ascribed to such term in Section 3.1(e).

 

“Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

 

“Shares” means the shares
of Preferred Stock issued or issuable to each Purchaser pursuant to
this Agreement.

 

“Subscription Amount”
means, as to each Purchaser, the aggregate amount to be paid for
the Shares purchased hereunder as specified below such
Purchaser’s name on the signature page of this Agreement and
next to the heading “Subscription Amount,” in United
States dollars and in immediately available funds.

 

 “Subsidiary”
means any subsidiary of the Company as set forth in the SEC
Documents.

 

“Trading Day” means a day
on which the Common Stock is traded on a Trading
Market.

 

“Trading Market” means the
following markets or exchanges on which the Common Stock is listed
or quoted for trading on the date in question: the NYSE American
LLC, the Nasdaq Capital Market, the Nasdaq Global Market, the
Nasdaq Global Select Market, the New York Stock Exchange or the OTC
Bulletin Board.

 

“Transaction Documents”
means this Agreement, the Registration Rights Agreement and any
other documents or agreements executed in connection with the
transactions contemplated hereunder.

 

“Transfer Agent” means
Pacific Stock Transfer, and any successor transfer agent of the
Company.

 

“Underlying Shares” means
the shares of Common Stock issued and issuable upon conversion of
the Preferred Stock.

 

ARTICLE II

PURCHASE AND SALE

 

2.1           Closing.
On the Closing Date, upon the terms and subject to the conditions
set forth herein, substantially concurrent with the execution and
delivery of this Agreement by the parties hereto, the Company
agrees to sell, and each Purchaser agrees to purchase, the number
of Shares of Preferred Stock set forth on the signature page hereto
executed by such Purchaser. The aggregate number of Shares of
Preferred Stock sold hereunder shall be no more than 315,790
Shares. Each Purchaser shall deliver to the Company, via wire
transfer immediately available funds equal to the Subscription
Amount as set forth on the signature page hereto executed by such
Purchaser and the Company shall deliver to such Purchaser the
number of Shares of Preferred Stock set forth on the signature page
hereto executed by such Purchaser, and the Company and such
Purchaser shall deliver the other items set forth in Section 2.2.
Upon satisfaction of the covenants and conditions set forth in
Sections 2.2 and 2.3, the Closing shall occur at the offices of
Company Counsel or such other location as the parties shall
mutually agree.

 

 

 

-3-

 

 

2.2           Deliveries.

 

(a)           On
or prior to the Closing Date, the Company shall deliver or cause to
be delivered to each Purchaser the following:

 

(i)            this
Agreement duly executed by the Company;

 

(ii)           an
irrevocable letter of instruction to the transfer agent to either
issue a certificate evidencing a number of Shares of Preferred
Stock equal to such Purchaser’s Shares of Preferred Stock as
set forth on the signature page hereto executed by such Purchaser
and registered in the name of such Purchaser or provide evidence of
book entry of the number of Shares of Preferred Stock equal to such
Purchaser’s Shares of Preferred Stock as set forth on the
signature page hereto executed by such Purchaser and evidence of
the filing and acceptance of the Certificate of Designation from
the Secretary of State of Delaware; and

 

(iii)            the
Registration Rights Agreement duly executed by the
Company.

 

(b)           On
or prior to the Closing Date, each Purchaser shall deliver or cause
to be delivered to the Company the following:

 

(i)            this
Agreement duly executed by such Purchaser;

 

(ii)           the
Subscription Amount as set forth on the signature page hereto
executed by such Purchaser by wire transfer to the account
specified by the Company; and

 

(iii)           the
Registration Rights Agreement duly executed by such
Purchaser.

 

2.3            

Closing
Conditions.

 

(a)           The
obligations of the Company hereunder in connection with the Closing
are subject to the following conditions being met or waived by the
Company:

 

(i) the accuracy in all
material respects when made and on the Closing Date of the
representations and warranties of the Purchasers contained herein
(except with respect to representations and warranties which relate
to a specific date, in which case such representations and
warranties shall continue to be materially accurate as of such
date);

 

(ii) all
obligations, covenants and agreements of the Purchasers required to
be performed at or prior to the Closing Date shall have been
performed;

 

(iii) the
delivery by the Purchasers of the items set forth in Section 2.2(b)
of this Agreement;

 

(iv) 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 that prohibits the consummation of any of the
transactions contemplated by the Transaction Documents;
and

 

 

 

-4-

 

 

(v) the Company shall
have obtained in a timely fashion any and all consents, permits,
approvals, registrations and waivers necessary for consummation of
the purchase and sale of the Shares, all of which shall be and
remain so long as necessary in full force and effect.

 

(b)           

The respective
obligations of the Purchasers hereunder in connection with the
Closing are subject to the following conditions being met or waived
by each Purchaser as to itself:

 

(i) the accuracy in all
material respects on the Closing Date of the representations and
warranties of the Company contained herein (except with respect to
representations and warranties which relate to a specific date, in
which case such representations and warranties shall continue to be
materially accurate as of such date);

 

(ii) all
obligations, covenants and agreements of the Company required to be
performed at or prior to the Closing Date shall have been
performed;

 

(iii) the
delivery by the Company of the items set forth in Section 2.2(a) of
this Agreement and a certificate, dated as of the Closing Date and
signed by its Chief Executive Officer or its Chief Financial
Officer, certifying to the fulfillment of the conditions specified
in Sections 2.3(b)(i) and (ii);

 

(iv)  on
the Closing Date, trading in the Common Stock shall not have been
suspended by the Commission or the Company’s principal
Trading Market (except for any suspension of trading of limited
duration agreed to by the Company, which suspension shall be
terminated prior to the Closing Date), and, at any time prior to
the Closing Date, trading in securities generally as reported by
Bloomberg L.P. shall not have been suspended or limited, or minimum
prices shall not have been established on securities whose trades
are reported by such service, or on any Trading Market, nor shall a
banking moratorium have been declared either by the United States
or New York State authorities;

 

(v) 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 that prohibits the
consummation of any of the transactions contemplated by the
Transaction Documents; and

 

(vi) the
Company shall have obtained in a timely fashion any and all
consents, permits, approvals, registrations and waivers necessary
for consummation of the purchase and sale of the Shares, all of
which shall be and remain so long as necessary in full force and
effect.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations
and Warranties of the Company. Except as set forth in the
SEC Documents which qualify any representation or otherwise made
herein to the extent of the disclosure contained in the SEC
Documents, the Company hereby makes the following representations
and warranties to each Purchaser as of the Closing
Date:

 

 

 

 

-5-

 

 

(a)     
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 Delaware 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 and as described in the
reports filed by the Company with the Commission pursuant to the
reporting requirements of the Exchange Act, since the end of its
most recently completed fiscal year through the date hereof,
including, without limitation, its most recent report on Form 10-Q.
The Company does not have any material subsidiaries other than
those set forth on Exhibit 21 to the Annual Report on Form 10-K for
the year ended December 31, 2017. The Company is qualified to do
business as a foreign corporation 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.
For the purposes of this Agreement, “Material Adverse Effect” means any
effect on the business, operations, properties or financial
condition of the Company that is material and adverse to the
Company, taken as a whole, and any condition, circumstance or
situation that would prohibit the Company from entering into and
performing any of its obligations hereunder.

 

(b) Authorization; Enforcement. The
Company has the requisite corporate power and authority to enter
into and perform the Transaction Documents and to issue the Shares
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 have
been duly and validly authorized by all necessary corporate action,
and no further consent or authorization of the Company, its board
of directors or stockholders is required. When executed and
delivered by the Company, the Transaction Documents shall
constitute 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, 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.

 

(c) Issuance of Shares. The Shares
to be issued and sold hereunder have been duly authorized by all
necessary corporate action and, when issued in accordance with the
terms hereof, will be validly issued, fully paid and nonassessable.
In addition, the Shares will be free and clear of all liens,
claims, charges, security interests or agreements, pledges,
assignments, covenants, restrictions or other encumbrances created
by, or imposed by, the Company (collectively, “Encumbrances”) and rights
of refusal of any kind imposed by the Company (other than
restrictions on transfer under applicable securities laws) and the
holder of such Shares shall be entitled to all rights accorded to a
holder of Common Stock.

 

 

 

-6-

 

 

(d) No Conflicts; Governmental
Approvals. The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby do not and will
not: (i) violate any provision of the Company’s Certificate
of Incorporation or Bylaws, each as amended to date; (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 the Company’s
properties or assets are bound; or (iii) 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 by which any
property or asset of the Company is bound or affected, except for
such conflicts, defaults, terminations, amendments, acceleration,
cancellations and violations as would not, individually or in the
aggregate, have a Material Adverse Effect. Except for approval of
the NASDAQ Capital Market of the issuance of the Underlying Shares,
which such approval has been obtained by the Company on or before
the date hereof, the Company is not required under federal, state,
foreign or local law, rule or regulation 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
issue and sell the Shares in accordance with the terms hereof
(other than any filings, consents and approvals which may be
required to be made by the Company under applicable state and
federal securities laws, rules or regulations prior to or
subsequent to the Closing).

 

(e) SEC Documents, Financial
Statements. The Common Stock of the Company is registered
pursuant to Section 12(b) of the Exchange Act. During the year
preceding this Agreement, the Company has timely 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 (the foregoing materials,
including the exhibits thereto and documents incorporated by
reference therein being collectively referred to as the
“SEC
Documents”). At the times of their respective filing,
all such reports, schedules, forms, statements and other documents
complied in all material respects with the requirements of the
Exchange Act and the rules and regulations of the Commission
promulgated thereunder. At the times of their respective filings,
such reports, schedules, forms, statements and other documents did
not contain any untrue statement of a material fact or omit 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. As of their respective
dates, the financial statements of the Company included in the SEC
Documents complied 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 applied on a consistent basis (“GAAP”) 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), and fairly
present in all material respects the consolidated financial
position of the Company 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).

 

(f) Accountants. Mayer Hoffman McCann P.C. whose report on
the financial statements of the Company is filed with the
Commission in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2017, were, at the time such report was
issued, independent registered public accountants as required by
the Securities Act.

 

 

 

-7-

 

 

(g) Internal Controls. The Company
has established and maintains a system of internal accounting
controls sufficient to provide reasonable assurances that: (i)
transactions are executed in accordance with management’s
general or specific authorization; (ii) transactions are recorded
as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles in the
United States and to maintain accountability for assets; (iii)
access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets
at reasonable intervals and appropriate action is taken with
respect to any differences.

 

(h) Disclosure Controls. The
Company has established and maintains disclosure controls and
procedures (as such term is defined in Rules 13a-15 and 15d-15
under the Exchange Act). Since the date of the most recent
evaluation of such disclosure controls and procedures, there have
been no significant changes in internal controls or in other
factors that could significantly affect internal controls,
including any corrective actions with regard to significant
deficiencies and material weaknesses. The Company is in compliance
in all material respects with all provisions currently in effect
and applicable to the Company of the Sarbanes-Oxley Act of 2002,
and all rules and regulations promulgated thereunder or
implementing the provisions thereof.

 

(i) No Material Adverse Change.
Except as disclosed in the SEC Documents, since March 31, 2018, the
Company has not (i) experienced or suffered any Material Adverse
Effect; (ii) incurred any material liabilities, obligations, claims
or losses (whether liquidated or unliquidated, secured or
unsecured, absolute, accrued, contingent or otherwise) other than
those incurred in the ordinary course of the Company’s
business; or (iii) declared, made or paid any dividend or
distribution of any kind on its capital stock.

 

(j) No Undisclosed Events or
Circumstances. Except as disclosed in the SEC Documents, and
except for the consummation of the transactions contemplated
herein, since

 

March
31, 2018, to the Company’s knowledge, no event or
circumstance has occurred or exists with respect to the Company or
its businesses, properties, prospects, operations or financial
condition, which, under applicable law, rule or regulation,
requires public disclosure or announcement by the Company but which
has not been so publicly announced or disclosed.

 

(k) Litigation. No action, suit,
proceeding or investigation is currently pending or, to the
knowledge of the Company, has been threatened in writing against
the Company that: (i) concerns or questions the validity of this
Agreement; (ii) concerns or questions the right of the Company to
enter into this Agreement; or (iii) is reasonably likely to have a
Material Adverse Effect. The Company is neither a party to nor
subject to the provisions of any material order, writ, injunction,
judgment or decree of any court or government agency or
instrumentality. There is no action, suit, proceeding or
investigation by the Company currently pending or that the Company
intends to initiate that would have a Material Adverse
Effect.

 

(l) Compliance. Except for defaults
or violations which are not reasonably likely to have a Material
Adverse Effect, the Company is not (i) in default under or in
violation of (and no event has occurred that has not been waived
that, with notice or lapse of time or both, would result in a
default by the Company under), nor has the Company received notice
of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement
or instrument to which it is a party or by which it or any of its
properties is bound (whether or not such default or violation has
been waived); (ii) is in violation of any order of any court,
arbitrator or governmental body; or (iii) is or has been in
violation of any statute, rule or regulation of any governmental
authority, including without limitation all foreign, federal, state
and local laws, applicable to its business.

 

 

 

-8-

 

 

(m) Intellectual
Property.

 

(i) To the best of its
knowledge, the Company has entered into agreements with each of its
current and former officers, employees and consultants involved in
research and development work, including development of the
Company’s products and technology providing the Company, to
the extent permitted by law, with title and ownership to patents,
patent applications, trade secrets and inventions conceived,
developed, reduced to practice by such person, solely or jointly
with other of such persons, during the period of employment by the
Company except where the failure to have entered into such an
agreement would not have a Material Adverse Effect. The Company is
not aware that any of its employees or consultants is in material
violation thereof.

 

(ii) To
the Company’s knowledge, the Company owns or possesses
adequate rights to use all trademarks, service marks, trade names,
domain names, copyrights, patents, patent applications, inventions,
know how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or
procedures), and other intellectual property rights
(“Intellectual
Property”) as are necessary for the conduct of its
business as described in the SEC Documents. Except as described in
the SEC Documents: (1) to the knowledge of the Company, there is no
infringement, misappropriation or violation by third parties of any
such Intellectual Property; (2) there is no pending or, to the
knowledge of the Company, threatened action, suit, proceeding by
others against the Company challenging the Company’s rights
in or to any such Intellectual Property and the Company has not
received any written notice of a claim by others against the
Company challenging the Company’s rights in or to any such
Intellectual Property; (3) the Intellectual Property owned by the
Company and, to the knowledge of the Company, the Intellectual
Property licensed to the Company has not been adjudged invalid or
unenforceable by a court of competent jurisdiction or applicable
government agency, in whole or in part, and there is no pending or,
to the knowledge of the Company, threatened action, suit,
proceeding by others challenging the validity or scope of any such
Intellectual Property and Company has not received any written
notice of a claim by others challenging the validity or scope of
any such Intellectual Property; (4) there is no pending or, to the
knowledge of the Company, threatened action, suit, proceeding or
claim by others against the Company that the Company infringes,
misappropriates or otherwise violates any Intellectual Property or
other proprietary rights of others, and the Company has not
received any written notice of such claim; and (5) to the
Company’s knowledge, no employee of the Company is the
subject of any claim or proceeding involving a violation of any
term of any employment contract, patent disclosure agreement,
invention assignment agreement, non-competition agreement,
non-solicitation agreement, nondisclosure agreement or any
restrictive covenant to or with a former employer where the basis
of such violation relates to such employee’s employment with
the Company or actions undertaken by the employee while employed
with the Company, in each of (1) through (5), for any instances
which would not, individually or in the aggregate, result in a
Material Adverse Effect.

 

 

 

-9-

 

 

(n) Listing and Maintenance
Requirements. The Company is in compliance with the
requirements of the Trading Market for continued trading of the
Common Stock pursuant thereto. The issuance and sale of the Shares
hereunder does not contravene the rules and regulations of the
Trading Market.

 

(o) Private Placement. Neither the
Company nor its Affiliates, nor any Person acting on its or their
behalf: (i) 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 the Shares
hereunder, (ii) has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy any security,
under any circumstances that would require registration of the sale
and issuance by the Company of the Shares under the Securities Act;
or (iii) has issued any shares of Common Stock or shares of any
series of preferred stock or other securities or instruments
convertible into, exchangeable for or otherwise entitling the
holder thereof to acquire shares of Common Stock which would be
integrated with the sale of the Shares to Purchasers for purposes
of the Securities Act or of any applicable stockholder approval
provisions, including, without limitation, under the rules and
regulations of any exchange or automated quotation system on which
any of the securities of the Company are listed or designated, nor
will the Company or any of its subsidiaries or affiliates take any
action or steps that would require registration of any of the
Shares under the Securities Act or cause the offering of the Shares
to be integrated with other offerings. Assuming the accuracy of the
representations and warranties of Purchasers, the offer and
issuance of the Shares by the Company to Purchasers pursuant to
this Agreement will be exempt from the registration requirements of
the Securities Act.

 

3.2           Representations
and Warranties of the Purchasers. Each Purchaser, for itself
and for no other Purchaser, hereby represents and warrants to the
Company as follows (as of the Closing Date, unless otherwise noted
below):

 

(a)           Authority.
The execution, delivery and performance by such Purchaser of the
transactions contemplated by this Agreement have been duly
authorized by all necessary corporate or similar action on the part
of such Purchaser. Each Transaction Document to which it is a party
has been duly executed by such Purchaser, and when delivered by
such Purchaser in accordance with the terms hereof, will constitute
the valid and legally binding obligation of such Purchaser,
enforceable against it in accordance with its terms, except (i) as
limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights
generally; (ii) as limited by laws relating to the availability of
specific performance, injunctive relief or other equitable
remedies; and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law.

 

(b)           Own
Account. Such Purchaser understands that the Shares are
“restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and
is acquiring the Shares as principal for its own account and not
with a view to or for distributing or reselling such Shares or any
part thereof in violation of the Securities Act or any applicable
state securities law, has no present intention of distributing any
of such Shares in violation of the Securities Act or any applicable
state securities law and has no direct or indirect arrangement or
understandings with any other persons to distribute or regarding
the distribution of such Shares (this representation and warranty
not limiting such Purchaser’s right to sell the Shares
pursuant to the Registration Statement or otherwise in compliance
with applicable federal and state securities laws) in violation of
the Securities Act or any applicable state securities law. Such
Purchaser is acquiring the Shares hereunder in the ordinary course
of its business. Such Purchaser understands that it may not be able
to sell any of the Shares without prior registration under the
Securities Act or the existence of an exemption from such
registration requirement.

 

 

 

-10-

 

 

(c) No Conflicts. The execution,
delivery and performance by such Purchaser of the Transaction
Documents and the consummation by such Purchaser of the
transactions contemplated hereby and thereby will not (i) result in
a violation of the organizational documents of such Purchaser; (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 to which
such Purchaser is a party; or (iii) result in a violation of any
law, rule, regulation, order, judgment or decree (including federal
and state securities laws) applicable to such Purchaser, except in
the case of clauses (ii) and (iii) above, for such conflicts,
defaults, rights or violations which would not, individually or in
the aggregate, reasonably be expected to have a material adverse
effect on the ability of such Purchaser to perform its obligations
hereunder.

 

(d) Purchaser Status. At the time
such Purchaser was offered the Shares, it was, and at the date
hereof is, an “accredited investor” as defined in Rule
501 under the Securities Act. Investor is not a registered broker
dealer registered under Section 15(a) of the Exchange Act, or a
member of the Financial Industry Regulatory Authority Inc.
(“FINRA”), or an entity
engaged in the business of being a broker-dealer. The Purchaser is
not subject to a bad actor disqualification under Rule 506(d) of
the Securities Act.

 

(e) Experience of Such Purchaser.
Such Purchaser, either alone or together with its representatives,
has such knowledge, sophistication and experience in business and
financial matters so as to be capable of evaluating the merits and
risks of the prospective investment in the Shares, and has so
evaluated the merits and risks of such investment. Such Purchaser
is able to bear the economic risk of an investment in the Shares
and, at the present time, is able to afford a complete loss of such
investment. Such Purchaser acknowledges that it has not received
any legal or tax advice from the Company or any of its
representatives with respect the transactions contemplated
hereby.

 

(f) Access to Information. Such
Purchaser acknowledges that it has had the opportunity to review
any Company information and business updates requested by Purchaser
and has been afforded (i) the opportunity to ask such questions as
it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions
of the offering of the Shares and the merits and risks of investing
in the Shares and; (ii) access to information about the Company and
its financial condition, results of operations, business,
properties, management and prospects sufficient to enable it to
evaluate its investment; and (iii) the opportunity to obtain such
additional information that the Company possesses or can acquire
without unreasonable effort or expense that is necessary to make an
informed investment decision with respect to the investment. Such
Purchaser has sought such accounting, legal and tax advice as it
has considered necessary to make an informed decision with respect
to its acquisition of the Shares.

 

(g) Brokers and Finders. Except for
Corinthian L.L.C., no Person will have, as a result of the
transactions contemplated by this Agreement, any valid right,
interest or claim against or upon the Company or any Purchaser for
any commission, fee or other compensation pursuant to any
agreement, arrangement or understanding entered into by or on
behalf of the Purchaser.

 

(h) Independent Investment
Decision. Such Purchaser has independently evaluated the
merits of its decision to purchase Shares pursuant to the
Transaction Documents, and such Purchaser confirms that it has not
relied on the advice of any other Purchaser’s business and/or
legal counsel in making such decision. Such Purchaser understands
that nothing in this Agreement or any other materials presented by
or on behalf of the Company to the Purchaser in connection with the
purchase of the Shares constitutes legal, tax or investment advice.
Such Purchaser has consulted such legal, tax and investment
advisors as it, in its sole discretion, has deemed necessary or
appropriate in connection with its purchase of the
Shares.

 

 

 

-11-

 

 

(i) No Governmental Review. Such
Purchaser understands that no United States federal or state agency
or any other government or governmental agency has passed on or
made any recommendation or endorsement of the Shares or the
fairness or suitability of the investment in the Shares nor have
such authorities passed upon or endorsed the merits of the offering
of the Shares.

 

(j) Residency. Such
Purchaser’s residence (if an individual) or office in which
its investment decision with respect to the Shares was made (if an
entity) are located at the address immediately below such
Purchaser’s name on its signature page hereto.

 

(k) Acknowledgment. Each Purchaser
acknowledges and agrees that such Purchaser has reviewed and
considered prior to entering this Agreement the more detailed
information about the Company and the risk factors that may affect
the realization of forward-looking statements set forth in the
Company’s filings with the SEC, including its Annual Report
on Form 10-K and its Quarterly Reports on Form 10-Q filed with the
Commission.

 

The
Company and each of the Purchasers acknowledge and agree that no
party to this Agreement has made or makes any representations or
warranties with respect to the transactions contemplated hereby
other than those specifically set forth in this Article III and the
Transaction Documents.

 

 

 

ARTICLE
IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1 Transfer
Restrictions.

 

(a) The Shares may only
be disposed of in compliance with state and federal securities
laws, including the requirement not to trade in the Shares while in
possession of material non-public information. In connection with
any transfer of Shares other than pursuant to an effective
registration statement, to the Company or to an Affiliate of a
Purchaser or in connection with a pledge as contemplated in Section
4.1(c), the Company may require the transferor thereof to provide
to the Company an opinion of counsel selected by the transferor and
reasonably acceptable to the Company, the form and substance of
which opinion shall be reasonably satisfactory to the Company, to
the effect that such transfer does not require registration of such
transferred Shares under the Securities Act. As a condition of
transfer, any such transferee shall agree in writing to be bound by
the terms of this Agreement and shall have the rights of a
Purchaser under this Agreement and the Registration Rights
Agreement.

 

 

 

 

-12-

 

 

(b) The Purchasers
agree to the imprinting, so long as is required by this Section
4.1, of a legend on any of the Shares in the following
form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY
A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A
FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR”
AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN
SECURED BY SUCH SECURITIES.

 

(c) The Company
acknowledges and agrees that a Purchaser may from time to time
pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the
Shares to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act
and who agrees to be bound by the provisions of this Agreement and
the Registration Rights Agreement and, if required under the terms
of such arrangement, such Purchaser may transfer pledged or secured
Shares to the pledgees or secured parties. Such a pledge or
transfer would not be subject to approval of the Company and no
legal opinion of legal counsel of the pledgee, secured party or
pledgor shall be required in connection therewith. Further, no
notice shall be required of such pledge. At the appropriate
Purchaser’s expense, the Company will execute and deliver
such reasonable documentation as a pledgee or secured party of
Shares may reasonably request in connection with a pledge or
transfer of the Shares, including, if the Underlying Shares are
subject to registration pursuant to the Registration Rights
Agreement, the preparation and filing of any required prospectus
supplement under Rule 424(b)(3) under the Securities Act or other
applicable provision of the Securities Act to appropriately amend
the list of Selling Stockholders thereunder.

 

 

 

 

 

 

-13-

 

 

(d) Certificates
evidencing the Underlying Shares shall not contain any legend
(including the legend set forth in Section 4.1(b)), (i) while a
registration statement (including the Registration Statement)
covering the resale of such Underlying Shares is effective under
the Securities Act, or (ii) following any sale of such Underlying
Shares pursuant to Rule 144, or (iii) if such Underlying Shares are
eligible for sale under Rule 144, without the requirement for the
Company to be in compliance with the current public information
required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as
to such securities and without volume or manner of sale
restrictions, or (iv) if such legend is not required under
applicable requirements of the Securities Act (including judicial
interpretations and pronouncements issued by the staff of the
Commission). The Company shall cause its counsel to issue a legal
opinion to the Transfer Agent promptly after the effective date of
the Registration Statement if required by the Transfer Agent to
effect the removal of the legend hereunder. Certificates for
Underlying Shares subject to legend removal hereunder shall be
transmitted by the Transfer Agent to the Purchasers by crediting
the account of the Purchaser’s prime broker with the
Depository Trust Company System, if the Transfer Agent is a
participant in the DWAC system, and otherwise by physical delivery
of certificates as directed by the Purchaser.

 

(e) Each Purchaser,
severally and not jointly with the other Purchasers, agrees that
the removal of the restrictive legend from certificates
representing Shares as set forth in this Section 4.1 is predicated
upon the Company’s reliance that the Purchaser will sell any
Shares pursuant to either the registration requirements of the
Securities Act, including any applicable prospectus delivery
requirements, or an exemption therefrom, and that if Shares are
sold pursuant to a Registration Statement, they will be sold in
compliance with the plan of distribution set forth
therein.

 

4.1 Furnishing of Information. For
a period of one year after the date of this Agreement, the Company
covenants to timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required
to be filed by the Company after the date hereof pursuant to the
Exchange Act. During this one-year period, if the Company is not
required to file reports pursuant to the Exchange Act, it will
prepare and furnish to the Purchasers and make publicly available
in accordance with Rule 144 such information as is required for the
Purchasers to sell the Shares under Rule 144. The Company further
covenants that it will take such further action as any holder of
Shares may reasonably request, to the extent required from time to
time to enable such Person to sell such Shares without registration
under the Securities Act within the requirements of the exemption
provided by Rule 144.

 

4.2 Integration. The Company shall
not sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of
the Securities Act) that could reasonably be expected to be
integrated with the offer or sale of the Shares in a manner that
would require the registration under the Securities Act of the sale
of the Shares to the Purchasers or that would be integrated with
the offer or sale of the Shares for purposes of the rules and
regulations of any Trading Market such that it would require
shareholder approval prior to the closing of such other transaction
unless shareholder approval is obtained before the closing of such
subsequent transaction.

 

 

 

-14-

 

 

4.3 Indemnification of
Purchasers.

 

(a) In addition to the
indemnity provided in the Registration Rights Agreement, the
Company will indemnify and hold each Purchaser and its directors,
officers, stockholders, members, partners, employees and agents
(and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or
any other title), each Person who controls such Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act), and the directors, officers, stockholders,
agents, members, partners or employees (and any other Persons with
a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such
controlling person (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable
attorneys’ fees and costs of investigation that any such
Purchaser Party may suffer or incur (i) as a result of any breach
of any of the representations, warranties, covenants or agreements
made by the Company in this Agreement or in the other Transaction
Documents or (ii) arising out of, in connection with, or as a
result of the execution or delivery of this Agreement, any other
Transaction Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation
of the transactions contemplated hereby or thereby. The Company
will not be liable to any Purchaser Party under this Agreement to
the extent, but only to the extent that a loss, claim, damage or
liability is attributable to any Purchaser Party’s breach of
any of the representations, warranties, covenants or agreements
made by such Purchaser Party in this Agreement or in the other
Transaction Documents.

 

(b) Promptly after
receipt by any Person (the “Indemnified Person”) of
notice of any demand, claim or circumstances which would or might
give rise to a claim or the commencement of any action, proceeding
or investigation in respect of which indemnity may be sought
pursuant to Section 4.5(a), such Indemnified Person shall promptly
notify the Company in writing and the Company shall assume the
defense thereof, including the employment of counsel reasonably
satisfactory to such Indemnified Person, and shall assume the
payment of all fees and expenses; provided, however, that the
failure of any Indemnified Person so to notify the Company shall
not relieve the Company of its obligations hereunder except to the
extent that the Company is actually and materially and adversely
prejudiced by such failure to notify. In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel,
but the fees and expenses of such counsel shall be at the expense
of such Indemnified Person unless: (i) the Company and the
Indemnified Person shall have mutually agreed to the retention of
such counsel; (ii) the Company shall have failed promptly to assume
the defense of such proceeding and to employ counsel reasonably
satisfactory to such Indemnified Person in such proceeding; or
(iii) in the reasonable judgment of counsel to such Indemnified
Person, representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests
between them. The Company shall not be liable for any settlement of
any proceeding effected without its written consent, which consent
shall not be unreasonably withheld, delayed or conditioned. Without
the prior written consent of the Indemnified Person, which consent
shall not be unreasonably withheld, delayed or conditioned, the
Company shall not effect any settlement of any pending or
threatened proceeding in respect of which any Indemnified Person is
or could have been a party and indemnity could have been sought
hereunder by such Indemnified Party, unless such settlement
includes an unconditional release of such Indemnified Person from
all liability arising out of such proceeding, does not admit
liability on the part of or attribute fault to any Indemnified
Person and contains a provision requiring confidentiality with
respect to the facts and circumstances of the dispute and of the
existence and amount of the settlement.

 

 

 

-15-

 

 

4.5 Reservation of Preferred Stock.
As of the date hereof, the Company has reserved and the Company
shall continue to reserve and keep available at all times, a
sufficient number of shares of Preferred Stock for the purpose of
enabling the Company to issue Shares pursuant to this
Agreement.

 

4.6 Issuance of Incentive Warrants.
The Company covenants and agrees that upon a Purchaser’s
voluntary conversion of the Preferred Stock in accordance with its
terms, which is effected prior to the two-year anniversary of its
respective original issuance date, it will issue to the holder of
such Shares a two-year warrant (herein, the “Incentive Warrants”),
exercisable at $4.75 per share, to purchase a number of shares the
Company’s Common Stock as is equal to the number of
Underlying Shares issued upon the conversion.

 

4.7 Listing or Quotation of Common
Stock. The Company’s common stock is currently quoted
on the NASDAQ Capital Market and is not currently eligible for
listing or quotation on any other Trading Market. The Company
hereby agrees to use best efforts to maintain the listing or
quotation of the Common Stock on a Trading Market, and prior to the
Closing to list all of the Underlying Shares on such Trading
Market, as may be applicable. The Company further agrees, if the
Company applies to have the Common Stock traded on any other
Trading Market, it will include in such application all of the
Underlying Shares, and will take such other action as is necessary
to cause all of the Underlying Shares to be listed on such other
Trading Market as promptly as possible. The Company will take all
action reasonably necessary to continue the listing and trading of
its Common Stock on a Trading Market and will comply in all
respects with the Company’s reporting, filing and other
obligations under the bylaws or rules of the Trading
Market.

 

4.8 Equal Treatment of Purchasers.
No consideration shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of any of the
Transaction Documents unless the same consideration is also offered
to all of the parties to the Transaction Documents. For
clarification purposes, this provision constitutes a separate right
granted to each Purchaser by the Company and negotiated separately
by each Purchaser, and is intended for the Company to treat the
Purchasers as a class and shall not in any way be construed as the
Purchasers acting in concert or as a group with respect to the
purchase, disposition or voting of Securities or
otherwise.

 

4.9 Confidentiality After The Date
Hereof. Each Purchaser, severally and not jointly with the
other Purchasers, covenants that until such time as the
transactions contemplated by this Agreement and such other material
non-public information related to the Company in possession of the
Purchaser are publicly disclosed by the Company as described in
Section 4.4, such Purchaser will maintain the confidentiality of
all non-public information disclosed to it in connection with the
transactions contemplated hereby (including the existence and terms
of such transactions).

 

4.10 Delivery
of Shares After Closing. The Company shall deliver, or cause
to be delivered, the respective Shares purchased by each Purchaser
to such Purchaser within three Trading Days of the Closing Date
(unless such Purchaser has specified to the Company at the time of
execution of this Agreement that it shall settle “delivery
versus payment” in which case such Shares shall be delivered
on or prior to the Closing Date).

 

4.11 Form
D; Blue Sky Filings. The Company agrees to timely file a
Form D with respect to the Shares as required under Regulation D
and to provide a copy thereof, promptly upon request of any
Purchaser. The Company shall take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption
for, or to qualify the Shares for, sale to the Purchasers at the
Closing under applicable securities or “Blue Sky” laws of the
states of the United States, and shall provide evidence of such
actions promptly upon request of any Purchaser.

 

 

 

 

-16-

 

 

4.11            
Use of Proceeds.
The Company intends to use the net proceeds of this offering after
payment of the expenses of the offering for general corporate
purposes and shall not use such proceeds for the satisfaction of
any portion of the Company’s debt (other than trade payables
in the ordinary course of the Company’s business and prior
practices), or to redeem any Common Stock or Common Stock
Equivalents.

 

4.12           
Termination.
Notwithstanding anything herein to the contrary, this Agreement may
be terminated at any time by any Purchaser (with respect to the
obligations of such Purchaser) or the Company, upon written notice
to the other party, if the Closing shall not have occurred on or
before [August 1, 2018] (the “Outside Date”); provided,
however, that the right to terminate this Agreement under this
Section 4.13 shall not be available to any party whose (i) breach
of any provision of this Agreement, (ii) failure to comply with
their obligations under this Agreement or (iii) actions not taken
in good faith, shall have been the cause of, or shall have resulted
in, the failure of the Closing to occur on or prior to the Outside
Date or the failure of a condition in Section 2.3 to be satisfied
at such time.

 

ARTICLE V

MISCELLANEOUS

 

5.1 Fees and Expenses. Except as
expressly set forth in the Transaction Documents to the contrary,
each party shall pay the fees and expenses of its advisers,
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.
The Company shall pay all Transfer Agent fees, stamp taxes and
other taxes and duties levied in connection with the delivery of
the Shares to the Purchasers.

 

5.2 Entire Agreement. The
Transaction Documents, together with the exhibits and schedules
thereto, contain the entire understanding of the parties with
respect to the subject matter hereof and supersede all prior
agreements and understandings, oral or written, with respect to
such matters, which the parties acknowledge have been merged into
such documents, exhibits and schedules. At or after the Closing,
and without further consideration, the Company and the Purchasers
will execute and deliver to the other such further documents as may
be reasonably requested in order to give practical effect to the
intention of the parties under the Transaction
Documents.

 

5.3 Notices. Any and all notices or
other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given
and effective on the earliest of: (a) the date of transmission, if
such notice or communication is delivered via email to the e-mail
address set forth on the signature pages attached hereto prior to
5:30 p.m. (New York City time) on a Trading Day; (b) the next
Trading Day after the date of transmission, if such notice or
communication is delivered via email to the e-mail address set
forth on the signature pages attached hereto on a day that is not a
Trading Day or later than 5:30 p.m. (New York City time) on any
Trading Day; (c) the 2nd Trading Day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service; or
(d) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and
communications shall be as set forth on the signature pages
attached hereto.

 

5.4 Amendments; Waivers. No
provision of this Agreement may be waived or amended except in a
written instrument signed, in the case of an amendment, by the
Company and each Purchaser. No waiver 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 subsequent default or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of
either party to exercise any right hereunder in any manner impair
the exercise of any such right.

 

 

 

-17-

 

 

5.5 Headings and Construction. The
headings herein are for convenience only, do not constitute a part
of this Agreement and shall not be deemed to limit or affect any of
the provisions hereof. The language used in this Agreement will be
deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied
against any party. This Agreement shall be construed as if drafted
jointly by the parties, and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement or any of the Transaction
Documents.

 

5.6 Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the
parties and their successors and permitted assigns. The Company may
not assign this Agreement or any rights or obligations hereunder
without the prior written consent of each Purchaser (other than by
merger). Any Purchaser may assign any or all of its rights under
this Agreement to any Person to whom such Purchaser assigns or
transfers any Shares, provided such transferee agrees in writing to
be bound, with respect to the transferred Shares, by the provisions
of the Transaction Documents that apply to the “Purchasers.”

 

5.7 No Third-Party Beneficiaries.
This Agreement is intended for the benefit of the parties hereto
and their respective successors and permitted assigns and is not
for the benefit of, nor may any provision hereof be enforced by,
any other Person.

 

5.8 Governing
Law. All questions concerning
the construction, validity, enforcement and interpretation of the
Transaction Documents shall be governed by and construed and
enforced in accordance with the internal laws of the State of New
York, without regard to the principles of conflicts of law thereof.
Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions
contemplated by this Agreement and any other Transaction Documents
(whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, employees or agents)
shall be commenced exclusively in the state and federal courts
sitting in the City of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the
Transaction Documents), and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it
is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is improper or is an
inconvenient venue for such proceeding. Each party hereby
irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by
mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any other
manner permitted by law.

 

5.9 Survival. The representations
and warranties contained herein shall survive the Closing and the
delivery of the Shares.

 

5.10 Execution.
This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In
the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file,
such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed)
with the same force and effect as if such facsimile or
“.pdf” signature page were an original
thereof.

 

 

 

-18-

 

 

5.11 Severability.
If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their
commercially reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It
is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or
unenforceable.

 

5.12 Rescission
and Withdrawal Right. Notwithstanding anything to the
contrary contained in (and without limiting any similar provisions
of) any of the other Transaction Documents, whenever any Purchaser
exercises a right, election, demand or option under a Transaction
Document and the Company does not timely and materially perform its
related obligations within the periods therein provided, then such
Purchaser may rescind or withdraw, in its sole discretion from time
to time upon written notice to the Company, any relevant notice,
demand or election in whole or in part without prejudice to its
future actions and rights.

 

5.13 Replacement
of Shares. If any certificate or instrument evidencing any
Shares is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and substitution for and
upon cancellation thereof, or in lieu of and substitution therefor,
a new certificate or instrument, but only upon receipt of evidence
reasonably satisfactory to the Company and the Transfer Agent of
such loss, theft or destruction and the execution by the holder
thereof of a customary lost certificate affidavit of that fact and
an agreement to indemnify and hold harmless the Company and the
Transfer Agent for any losses in connection therewith or, if
required by the Transfer Agent, a bond in such form and amount as
is required by the Transfer Agent. The applicants for a new
certificate or instrument under such circumstances shall also pay
any reasonable third-party costs associated with the issuance of
such replacement Shares. If a replacement certificate or instrument
evidencing any Shares is requested due to a mutilation thereof, the
Company may require delivery of such mutilated certificate or
instrument as a condition precedent to any issuance of a
replacement.

 

5.14 Remedies.
In addition to being entitled to exercise all rights provided
herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific
performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss
incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agrees to waive and not to assert
in any action for specific performance of any such obligation the
defense that a remedy at law would be adequate.

 

5.15 Payment
Set Aside. To the extent that the Company makes a payment or
payments to any Purchaser pursuant to any Transaction Document or a
Purchaser enforces or exercises its rights thereunder, and such
payment or payments or the proceeds of such enforcement or exercise
or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside, recovered from, disgorged by
or are required to be refunded, repaid or otherwise restored to the
Company, a trustee, receiver or any other person under any law
(including, without limitation, any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the
extent of any such restoration the obligation or part thereof
originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or
such enforcement or setoff had not occurred.

 

 

 

-19-

 

 

5.16 Independent
Nature of Purchasers’ Obligations and Rights. The
obligations of each Purchaser under any Transaction Document are
several and not joint with the obligations of any other Purchaser,
and no Purchaser shall be responsible in any way for the
performance or non-performance of the obligations of any other
Purchaser under any Transaction Document. Nothing contained herein
or in any other Transaction Document, and no action taken by any
Purchaser pursuant thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently
protect and enforce its rights, including without limitation, the
rights arising out of this Agreement or out of the other
Transaction Documents, and it shall not be necessary for any other
Purchaser to be joined as an additional party in any proceeding for
such purpose. Each Purchaser has been represented by its own
separate legal counsel in their review and negotiation of the
Transaction Documents. The Company has elected to provide all
Purchasers with the same terms and Transaction Documents for the
convenience of the Company and not because it was required or
requested to do so by the Purchasers.

 

5.17 Construction.
The parties agree that each of them and/or their respective counsel
has reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the
Transaction Documents or any amendments hereto.

 

5.18 Exculpation
Among Purchasers. Each Purchaser acknowledges that it is not
relying upon any person, firm or corporation (including without
limitation any other Purchaser), other than the Company and its
officers and directors (acting in their capacity as representatives
of the Company), in deciding to invest and in making its investment
in the Company. Each Purchaser agrees that no other Purchaser nor
the respective controlling persons, officers, directors, partners,
agents or employees of any other Purchaser shall be liable to such
Purchaser for any losses incurred by such Purchaser in connection
with its investment in the Company.

 

5.19   
Exercise Limit.
Notwithstanding anything to the contrary set forth in this
Agreement, the Company shall not be obligated to issue any shares
of Common Stock upon exercise of the Preferred Stock if the
issuance of such shares of Common Stock would exceed the aggregate
number of shares of Common Stock which the Company may issue upon
conversion of the Preferred Stock to remain in compliance with the
Company's obligations under the rules or regulations of the Trading
Market, which rules and regulations limit the amount of shares of
Common Stock that the Company may issue upon conversion of the
Preferred Stock to no more than an aggregate of 19.99% of the
number of shares outstanding on the Closing Date (the
“Exchange Cap”), except that such limitation shall not
apply in the event that the Company (A) obtains the approval of its
stockholders as required by the applicable rules of the Trading
Market for issuances of Common Stock in excess of such amount, or
(B) obtains a written opinion from outside counsel to the Company
that such approval is not required, which opinion shall be
reasonably satisfactory to majority stockholders. In the event that
the Company is not obligated, as a result of the operation of the
immediately preceding sentence, to issue any shares of Common Stock
that it would have otherwise be required to issue upon conversion
of Preferred Stock, then the Company shall issue the number of
shares of Common Stock that it is obligated issue after giving
effect to the immediately preceding sentence and, in addition, on
the date of such issuance, shall pay to the holder exercising
conversion of Preferred Stock an amount in cash equal to the
product of (a) the difference between (x) the number of shares of
Common Stock that the Company is obligated issue before giving
effect to the immediately preceding sentence, minus (y) the number
of shares of Common Stock that the Company is obligated issue after
giving effect to the immediately preceding sentence, multiplied by
(b) the closing price of the Common Stock on the Trading Market on
the Trading Day immediately preceding the date on which the notice
of conversion is delivered to the Company by such
holder.

 

5.20   
Market-Standoff.
Each Purchaser hereby agrees not to sell or otherwise transfer,
make any short sale of, grant any option for the purchase of, or
enter into any hedging or similar transaction with the same
economic effect as a sale, any Shares of Preferred Stock and/or
Underlying Shares held by the Purchaser during the 180-day period
following the Closing Date. The Company may impose stop-transfer
instructions and may stamp each certificate with a legend subject
to the foregoing restriction until the end of such 180-day (or
other) period.

 

 

(Signature
Pages Follow)

 

 

 

-20-

 

IN WITNESS WHEREOF, the undersigned has
caused this Share Purchase Agreement to be duly executed by its
authorized signatory as of the date first indicated
above.

 

	

YOUNGEVITY INTERNATIONAL, INC.

 

 

 

By                                                         

      Name:
Stephan Wallach

      Title:
Chief Executive Officer

	
 

	

Address
for Notice:

 

 

 

 

 

 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

 

-21-

 

 

IN WITNESS WHEREOF, the undersigned has
caused this Share Purchase Agreement to be duly executed by its
authorized signatory as of the date first indicated
above.

 

Name of
Purchaser:

 

Signature of Authorized Signatory of
Purchaser: __ ___________

 

Name of
Authorized Signatory:

 

Title
of Authorized Signatory:

 

Email
Address of Purchaser:

 

Address
for Notice of Purchaser:

 

 

 

 

Address
for Delivery of Shares for Purchaser (if not same as
above):

 

 

 

 

	

Subscription
Amount:

 

	
 

	

Shares
of Preferred Stock:

 

	
 

	
 

 

 

 

 

-22-

 

 

Exhibit
A

 

Certificate
of Designation

 

 

 

 

A-1

 

 

Exhibit
B

 

Registration
Rights Agreement

 

 

 

 

 

B-1Blueprint

 

Exhibit 10.3

 

REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made and
entered into as of

August
__, 2018, between Youngevity International, Inc., a Delaware
corporation (the “Company”) and each holder of the
Company's Series C Preferred Stock listed on Schedule A hereto
(collectively, the “Investors”).

 

This
Agreement is made pursuant to the Share Purchase Agreement, dated
as of the date hereof, between the Company and the Investors (the
“Purchase
Agreement”).

 

WHEREAS, the
Company has issued shares of Series C Preferred Stock to the
Investors and agreed, under certain conditions, to issue Incentive
Warrants to the Investors; and

 

WHEREAS, in
connection with the consummation of the transactions contemplated
by the Purchase Agreement, the parties desire to enter into this
Agreement in order to grant certain registration rights to the
Holders as set forth below.

 

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

 

1.           Definitions.
Capitalized terms used and not otherwise defined herein that are
defined in the Purchase Agreement shall have the meanings given
such terms in the Purchase Agreement. As used in this Agreement,
the following terms shall have the following meanings:

 

“415 Cutback Shares” has
the meaning set forth in Section 2(a).

 

“Advice” has the meaning
set forth in Section 6(c).

 

“Affiliate” means, with
respect to any person, any other person which directly or
indirectly controls, is controlled by, or is under common control
with, such person.

 

“Agreement” has the
meaning set forth in the Preamble.

 

“Commission” means the
Securities and Exchange Commission.

 

“Common Stock” means the
common stock of the Company, par value $0.001 per share, and any
securities into which such common stock may hereinafter be
reclassified.

 

“Company” has the meaning
set forth in the Preamble.

 

“Conversion Shares” shall
mean collectively the shares of Common Stock of the Company or
other Securities issuable upon conversion of the Series C Preferred
Stock.

 

“Effective Date” means
each date that the Registration Statement filed pursuant to Section
2(a) and any post-effective amendment thereto is declared effective
by the Commission.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

 

 

 

 

“Holder” or
“Holders” means the holder
or holders, as the case may be, from time to time of Registrable
Securities.

 

“Indemnified Party” has
the meaning set forth in Section 5(c).

 

“Indemnifying Party” has
the meaning set forth in Section 5(c).

 

“Initial Registration
Statement” means the initial Registration Statement
filed pursuant to this Agreement.

 

“Losses” has the meaning
set forth in Section 5(a).

 

“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 a Registration
Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material
incorporated by reference or deemed to be incorporated by reference
in such Prospectus.

 

“Registrable Shares” means
(i) the Conversion Shares; (ii) the Warrant Shares; and (iii) any
other securities issued or issuable with respect to or in exchange
for the Conversion Shares, Warrants or Warrant Shares, whether by
merger, charter amendment or otherwise; provided, that, a security
shall not be a Registrable Share (A) upon sale pursuant to a
Registration Statement or Rule 144, or (B) while such security is
eligible for sale without restriction by the Holders pursuant to
Rule 144, assuming, for purposes of such determination with respect
to each Holder, the full conversion or exercise by such Holder of
all convertible securities held by such Holder (disregarding for
this purpose any and all limitations of any kind on conversion or
exercise of any convertible securities owned by such
Holder).

 

“Registration Statement”
means any one or more registration statements of the Company filed
under the Securities Act that covers the resale of any of the
Registrable Securities pursuant to the provisions of this Agreement
(including, without limitation, the Initial Registration Statement,
the New Registration Statement and any Remainder Registration
Statements), including (in each case) the amendments and
supplements to such Registration Statements, including pre- and
post-effective amendments thereto, all exhibits and all material
incorporated by reference or deemed to be incorporated by reference
in such Registration Statements.

 

“Remainder Registration
Statement” has the meaning set forth in Section
2(a).

 

 

- 2 -

 

 

“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.

 

“Rule 415” means Rule 415
promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended or interpreted from time to time, or any
similar rule or regulation hereafter adopted by the Commission
having substantially the same purpose and effect as such
Rule.

 

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

 

“Selling Shareholder
Questionnaire” has the meaning set forth in Section
2(c).

 

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

 

“Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

 

“Series C Preferred Stock”
means the Series C Preferred Stock being sold in the
offering.

 

“Staff” means the staff of
the Commission.

 

“Trading Day” means (i) a
day on which the Common Stock is listed or quoted and traded on any
Trading Market; or (ii) if the Common Stock is not quoted on any
Trading Market, a day on which the Common Stock is quoted in the
over-the-counter market as reported in the “pink
sheets” by OTC Markets Group(or any similar organization or
agency succeeding to its functions of reporting prices);
provided, that in the event
that the Common Stock is not listed or quoted as set forth in (i)
and (ii) hereof, then Trading Day shall mean a Business
Day.

 

“Trading Market” means
whichever of the NYSE, the NYSE MKT, the NASDAQ Global Select
Market, the NASDAQ Global Market, the NASDAQ Capital Market, the
OTC Bulletin Board on which the Common Stock is listed or quoted
for trading on the date in question.

 

“Warrant Shares” shall
mean collectively the shares of Common Stock of the Company or
other Securities issuable upon exercise of the Incentive Warrants
issuable to Holder under the Purchase Agreement.

 

“Warrants” shall mean
collectively the Incentive Warrants issuable to Holder under the
Purchase Agreement.

 

 

- 3 -

 

 

2.           Required
Registration

 

(a)           Within
one hundred and twenty (120) days of the Closing, the Company shall
prepare and file with the Commission a Registration Statement
covering the resale of all of the Registrable Securities for an
offering to be made on a continuous basis pursuant to Rule 415 or,
if Rule 415 is not available for offers and sales of the
Registrable Securities, by such other means of distribution of
Registrable Securities as the Holders may reasonably specify (the
“Initial
Registration Statement”). The Initial Registration
Statement shall be on Form S-1 (or such other form available to
register for resale the Registrable Securities as a secondary
offering). Notwithstanding the registration obligations set forth
in this Section 2,
in the event the Commission informs the Company that all of the
Registrable Securities cannot, as a result of the application of
Rule 415 or otherwise, be registered for resale as a secondary
offering on a single registration statement, the Company agrees to
promptly (i) inform each of the Holders thereof and use its
commercially reasonable efforts to file amendments to the Initial
Registration Statement as required by the Commission and/or (ii)
withdraw the Initial Registration Statement and file a new
registration statement (a “New Registration
Statement”), in either case covering the maximum
number of Registrable Securities Company’s counsel deems to
be permitted to be registered by the Commission, on Form S-1 or
such other form available to register for resale the Registrable
Securities as a secondary offering. Notwithstanding any other
provision of this Agreement, if any SEC Guidance sets forth a
limitation of the number of Registrable Securities permitted to be
registered on a particular Registration Statement as a secondary
offering (and notwithstanding that the Company used commercially
reasonable efforts to advocate with the Commission for the
registration of all or a greater number of Registrable Securities),
or in the event the Staff seeks to characterize any offering
pursuant to a Registration Statement filed pursuant to this
Agreement as constituting an offering of securities by or on behalf
of the Company or takes other action such that Rule 415 is not
available to the Company to register the resale of such Registrable
Securities and as a result the Staff or the SEC does not permit
such Registration Statement to become effective and used for
resales in a manner that permits the continuous resale at the
market by the Holders participating therein (or as otherwise may be
acceptable to each Holder) without being named therein as an
“underwriter,” unless otherwise directed in writing by
a Holder as to its Registrable Securities, the number of
Registrable Securities to be registered on such Registration
Statement will be reduced on a pro
rata basis based on
the total number of unregistered Registrable Securities held by
such Holders (such reduced Registrable Securities, the “415
Cutback Shares”). In the event the Company amends the Initial
Registration Statement or files a New Registration Statement, as
the case may be, under clauses (i) or (ii) 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-1 or such other form
available to register for resale those Registrable Securities that
were not registered for resale on the Initial Registration
Statement, as amended, or the New Registration Statement, including
the 415 Cutback Shares (the “Remainder Registration
Statements”). No Holder shall be named as an
“underwriter” in any Registration Statement without
such Holder’s prior written consent.

 

(b)           The
Company shall use its commercially reasonable efforts to cause each
Registration Statement or any post-effective amendment thereto to
be declared effective by the Commission as soon as practicable
(including, with respect to the Initial Registration Statement or
the New Registration Statement, as applicable, filing with the
Commission a request for acceleration of effectiveness in
accordance with Rule 461 promulgated under the Securities Act
within five Business Days after the date that the Company is
notified (orally or in writing, whichever is earlier) by the
Commission that such Registration Statement will not be
“reviewed,” or not be subject to further review and the
effectiveness of such Registration Statement may be accelerated),
shall use its commercially reasonable efforts to keep each
Registration Statement continuously effective under the Securities
Act until the earlier of (i) such time as all of the Registrable
Securities covered by such Registration Statement have been
publicly sold by the Holders or (ii) the date that is one year
following the date hereof (the “Effectiveness
Period”).

 

 

- 4 -

 

 

(c)           Each
Holder agrees to furnish to the Company a completed Selling
Shareholder Questionnaire in the form attached to this Agreement as
Annex A or in a
form mutually agreeable between the Parties. At least five Trading
Days prior to the first anticipated filing date of a Registration
Statement for any registration under this Agreement, the Company
will notify each Holder of the information the Company requires
from that Holder other than the information contained in the
Selling Shareholder Questionnaire, if any, which shall be completed
and delivered to the Company promptly upon request and, in any
event, within three Trading Days prior to the applicable
anticipated filing date. Each Holder further agrees that it shall
not be entitled to be named as a Selling Shareholder 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 Shareholder
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 Shareholder 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 Shareholder 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 or post-effective amendment thereto
and to include (to the extent not theretofore included) in the
Registration Statement the Registrable Securities identified in
such late Selling Shareholder Questionnaire or request for further
information. Each Holder acknowledges and agrees that the
information in the Selling Shareholder Questionnaire or request for
further information as described in this Section 2(c) 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.

 

(d)           Notwithstanding
anything to the contrary herein, at any time after any 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 (including
via facsimile or other electronic transmission) 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 supplement or post-effective amendment, as applicable, and the
date on which such Grace Period will begin, and (ii) notify the
Holders in writing (including via facsimile or other electronic
transmission) of the date on which the Grace Period ends;
provided,
further, that no
single Grace Period shall exceed 30 consecutive days, and during
any 365 day period, the aggregate of all Grace Periods shall not
exceed an aggregate of 60 days (each Grace Period complying with
this provision being an “Allowable Grace Period”).
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.

 

3.           Registration
Procedures. In connection with the Company’s
registration obligations hereunder, the Company shall:

 

(a)           (i)
Prepare and file with the Commission such amendments, including
post-effective amendments, to a Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep
a Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and
prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act
all of the Registrable Securities (except during an Allowable Grace
Period); (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement (subject to the
terms of this Agreement), and, as so supplemented or amended, to be
filed pursuant to Rule 424 (except during an Allowable Grace
Period); (iii) respond as promptly as reasonably possible to any
comments received from the Commission with respect to a
Registration Statement or any amendment thereto; and (iv) comply in
all material respects with the provisions of the Securities Act and
the Exchange Act with respect to the disposition of all Registrable
Securities covered by a Registration Statement during the
applicable period in accordance (subject to the terms of this
Agreement) with the intended methods of disposition by the Holders
thereof set forth in such Registration Statement as so amended or
in such Prospectus as so supplemented; provided, however, that each Holder shall
be responsible for the delivery of the Prospectus to the Persons to
whom such Holder sells any of the Registrable Securities (including
in accordance with Rule 172 under the Securities Act), and each
Holder agrees to dispose of Registrable Securities in compliance
with the plan of distribution described in the Registration
Statement and otherwise in compliance with applicable federal and
state securities laws.

 

 

- 5 -

 

 

(b)           Notify
the Holders of Registrable Securities to be sold (which notice
shall, pursuant to clauses (i) through (iii) hereof, be accompanied
by an instruction to suspend the use of the Prospectus until the
requisite changes have been made) as promptly as reasonably
possible (and, in the case of (i)(A) below, not less than one
Trading Day prior to such filing) and (if requested by any such
Person) confirm such notice in writing (including via facsimile or
other electronic transmission) no later than one Trading Day
following the day (i) of 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 (ii) of the occurrence of any
event or passage of time that makes the financial statements
included in a Registration Statement ineligible for inclusion
therein or any statement made in a 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 a Registration Statement, Prospectus
or other documents so that, in the case of a Registration Statement
or the 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; and (iii) of the occurrence or existence
of any pending corporate development with respect to the Company
that the Company believes may be material and that, in the
determination of the Company, makes it not in the best interest of
the Company to allow continued availability of a Registration
Statement or Prospectus, provided that any and all of such
information shall be kept confidential by each Holder until such
information otherwise becomes public, unless disclosure by a Holder
is required by law; provided, further, that notwithstanding
each Holder’s agreement to keep such information
confidential, each such Holder makes no acknowledgement that any
such information is material, non-public information.

 

(c)           Use
its commercially reasonable efforts to avoid the issuance of, or,
if issued, obtain the withdrawal of (i) any order stopping or
suspending the effectiveness of a Registration Statement, or (ii)
any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any
jurisdiction, at the earliest practicable moment.

 

(d)           The
Company may require each selling Holder to furnish to the Company a
certified statement as to (i) the number of shares of Common Stock
beneficially owned by such Holder and any Affiliate thereof; (ii)
any Financial Industry Regulatory Authority, Inc.
(“FINRA”) affiliations; (iii) any natural persons who
have the power to vote or dispose of the common stock; and (iv) any
other information as may be requested by the Commission, FINRA or
any state securities commission.

 

(e)           Subject
to the terms of this Agreement, the Company hereby consents to the
use of such Prospectus and each amendment or supplement thereto by
each of the selling Holders in connection with the offering and
sale of the Registrable Securities covered by such Prospectus and
any amendment or supplement thereto, except after the giving of any
notice pursuant to Section 3(b).

 

(f)           Prior
to any resale of Registrable Securities by a Holder, use its
commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or
qualification (or exemption from the Registration or qualification)
of such Registrable Securities for the resale by the Holder under
the securities or Blue Sky laws of such jurisdictions within the
United States as any Holder reasonably requests in writing, to keep
each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all
other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each
Registration Statement; provided, that the Company shall not be
required to qualify generally to do business in any jurisdiction
where it is not then so qualified, would subject the Company to any
material tax in any such jurisdiction where it is not then so
subject or file a general consent to service of process in any such
jurisdiction.

 

(h)           If
requested by a Holder, cooperate with such Holder to facilitate the
timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to
a Registration Statement, which certificates shall be free, to the
extent permitted by the Purchase Agreement and applicable state and
Federal laws, of all restrictive legends, and to enable such
Registrable Securities to be in such denominations and registered
in such names as any such Holder may request.

 

 

- 6 -

 

 

(i)           If
the Company notifies the Holders to suspend the use of any
Prospectus until requisite changes to such Prospectus has been
made, then the Holders shall suspend use of such Prospectus. The
Company will use its commercially reasonable efforts to ensure that
the use of the Prospectus may be resumed as promptly as is
practicable. The Company shall be entitled to exercise its right
under this Section 3(i) to suspend the availability of a
Registration Statement and Prospectus, for a period not to exceed
90 calendar days (which need not be consecutive days) in any
12-month period.

 

(j)           Comply
in all material respects with all applicable rules and regulations
of the Commission.

 

4.
Registration
Expenses. All fees and expenses incident to the performance
of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold
pursuant to a Registration Statement. The fees and expenses
referred to in the foregoing sentence shall include, without
limitation: (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s
counsel and auditors) (A) with respect to filings made with the
Commission, (B) with respect to filings required to be made with
any Trading Market on which the Common Stock is then listed for
trading, (C) in compliance with applicable state securities or Blue
Sky laws reasonably agreed to by the Company in writing (including,
without limitation, fees and disbursements of counsel for the
Company in connection with Blue Sky qualifications or exemptions of
the Registrable Securities) and (D) if not previously paid by the
Company in connection with an Issuer filing, with respect to any
filing that may be required to be made by any broker through which
a Holder intends to make sales of Registrable Securities with the
FINRA pursuant to FINRA Rule 5110, so long as the broker is
receiving no more than a customary brokerage commission in
connection with such sale, (ii) printing expenses (including,
without limitation, expenses of printing certificates for
Registrable Securities), (iii) messenger, telephone and delivery
expenses, (iv) fees and disbursements of counsel for the Company,
(v) Securities Act liability insurance, if the Company so desires
such insurance, and (vi) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the
transactions contemplated by this Agreement. In addition, the
Company shall be responsible for all of its internal expenses
incurred in connection with the consummation of the transactions
contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing
legal or accounting duties), the expense of any annual audit and
the fees and expenses incurred in connection with the listing of
the Registrable Securities on any securities exchange as required
hereunder. In no event shall the Company be responsible for any
underwriting, broker or similar commissions of any Holder or,
except to the extent provided for in the Transaction Documents, any
legal fees or other costs of the Holders.

 

 

- 7 -

 

 

5.           Indemnification.

 

(a)           Indemnification
by the Company. The Company shall, notwithstanding any
termination of this Agreement, indemnify and hold harmless each
Holder, the officers, directors, members, partners, agents and
employees (and any other Persons with a functionally equivalent
role of a Person holding such titles, notwithstanding a lack of
such title or any other title) of each of them, each Person who
controls any such Holder (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) and the officers,
directors, members, shareholders, partners, agents and employees
(and any other Persons with a functionally equivalent role of a
Person holding such titles, notwithstanding a lack of such title or
any other title) of each such controlling Person, to the fullest
extent permitted by applicable law, from and against any and all
losses, claims, damages, liabilities, costs (including, without
limitation, reasonable attorneys’ fees) and expenses
(collectively, “Losses”), as incurred,
arising out of or relating to (1) any untrue or alleged untrue
statement of a material fact contained in a Registration Statement,
any Prospectus or any form of prospectus or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out
of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the
statements therein (in the case of any Prospectus or supplement
thereto, in light of the circumstances under which they were made)
not misleading or (2) any violation or alleged violation by the
Company of the Securities Act, the Exchange Act or any state
securities law, or any rule or regulation thereunder, in connection
with the performance of its obligations under this Agreement,
except to the extent, but only to the extent, that (i) such untrue
statements or omissions are in reliance upon, and in conformity
with, information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent
that such information relates to such Holder or such Holder’s
proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly
for use in a Registration Statement, such Prospectus or in any
amendment or supplement thereto (it being understood that the
Holder has approved Annex
A hereto for this purpose) or (ii) in the case of an
occurrence of an event of the type specified in Section
3(b)(i)-(iii), the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing
that the Prospectus is outdated or defective and prior to the
receipt by such Holder of the Advice contemplated in Section 6(c).
The Company shall notify the Holders promptly of the institution,
threat or assertion of any Proceeding arising from or in connection
with the transactions contemplated by this Agreement of which the
Company is aware.

 

(b)           Indemnification
by Holders. Each Holder shall, severally and not jointly,
indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within
the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act), and the directors, officers, agents or employees
of such controlling Persons, to the fullest extent permitted by
applicable law, from and against all Losses, as incurred, to the
extent arising out of or based solely upon: (x) such Holder’s
failure to comply with the prospectus delivery requirements of the
Securities Act or (y) any untrue or alleged untrue statement of a
material fact contained in any Registration Statement, any
Prospectus, or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not
misleading (i) to the extent, but only to the extent, that such
untrue statement or omission is contained in any information so
furnished in writing by such Holder to the Company specifically for
inclusion in such Registration Statement or such Prospectus or (ii)
to the extent that such information relates to such Holder’s
proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly
for use in a Registration Statement (it being understood that the
Holder has approved Annex
A hereto for this purpose), such Prospectus or in any
amendment or supplement thereto or (iii) in the case of an
occurrence of an event of the type specified in Section
3(b)(i)-(iii), the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing
that the Prospectus is outdated or defective and prior to the
receipt by such Holder of the Advice contemplated in Section 6(c).
In no event shall the liability of any selling Holder hereunder be
greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

 

(c)           Conduct
of Indemnification Proceedings. If any Proceeding shall be
brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such
Indemnified Party shall promptly notify the Person from whom
indemnity is sought (the “Indemnifying Party”) in
writing, and the Indemnifying Party shall have the right to assume
the defense thereof, including the employment of counsel reasonably
satisfactory to the Indemnified Party and the payment of all fees
and expenses incurred in connection with defense thereof; provided,
that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or
liabilities pursuant to this Agreement, except (and only) to the
extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or
further review) that such failure shall have prejudiced the
Indemnifying Party.

 

 

- 8 -

 

 

An
Indemnified Party shall have the right to employ separate counsel
in any such Proceeding and to participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense
of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses; (2) the
Indemnifying Party shall have failed promptly to assume the defense
of such Proceeding and to employ counsel reasonably satisfactory to
such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and
counsel to the Indemnified Party shall reasonably believe that a
material conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the
Indemnifying Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ
separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense
thereof and the reasonable fees and expenses of no more than one
separate counsel shall be at the expense of the Indemnifying
Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding affected without its written
consent, which consent shall not be unreasonably withheld or
delayed. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a
party, unless such settlement includes an unconditional release of
such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding.

 

Subject
to the terms of this Agreement, all reasonable fees and expenses of
the Indemnified Party (including reasonable fees and expenses to
the extent incurred in connection with investigating or preparing
to defend such Proceeding in a manner not inconsistent with this
Section) shall be paid to the Indemnified Party, as incurred,
within 20 Trading Days of written notice thereof to the
Indemnifying Party; provided, that the Indemnified Party shall
promptly reimburse the Indemnifying Party for that portion of such
fees and expenses previously disbursed and that are applicable to
such actions for which such Indemnified Party is judicially
determined to be not entitled to indemnification
hereunder.

 

(d)           Contribution.
If the indemnification under Section 5(a) or 5(b) is unavailable to
an Indemnified Party or insufficient to hold an Indemnified Party
harmless for any Losses, then each Indemnifying Party shall
contribute to the amount paid or payable by such Indemnified Party,
in such proportion as is appropriate to reflect the relative fault
of the Indemnifying Party and Indemnified Party in connection with
the actions, statements or omissions that resulted in such Losses
as well as any other relevant equitable considerations. The
relative fault of such Indemnifying Party and Indemnified Party
shall be determined by reference to, among other things, whether
any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information
supplied by, such Indemnifying Party or Indemnified Party, and the
parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such action, statement or
omission. The amount paid or payable by a party as a result of any
Losses shall be deemed to include, subject to the limitations set
forth in this Agreement, any reasonable attorneys’ or other
reasonable fees or expenses incurred by such party in connection
with any Proceeding to the extent such party would have been
indemnified for such fees or expenses if the indemnification
provided for in this Section was available to such party in
accordance with its terms.

 

The
parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by
pro rata allocation or by
any other method of allocation that does not take into account the
equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 5(d), no
Holder shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the net proceeds actually
received by such Holder from the sale of the Registrable Securities
subject to the Proceeding exceeds the amount of any damages that
such Holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged
omission.

 

 

- 9 -

 

 

The
indemnity and contribution agreements contained in this Section are
in addition to any liability that the Indemnifying Parties may have
to the Indemnified Parties.

 

6.            

Miscellaneous.

 

(a)           Remedies.
Subject to the limitations set forth in this Agreement, in the
event of a breach by the Company or by a Holder of any of their
respective obligations under this Agreement, each Holder or the
Company, as the case may be, in addition to being entitled to
exercise all rights granted by law and under this Agreement,
including recovery of damages, shall be entitled to specific
performance of its rights under this Agreement. The Company and
each Holder agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of
any of the provisions of this Agreement and hereby further agrees
that, in the event of any action for specific performance in
respect of such breach, it shall not assert or shall waive the
defense that a remedy at law would be adequate.

 

(b)           Compliance.
Each Holder covenants and agrees that it will comply with the
prospectus delivery requirements of the Securities Act as
applicable to it in connection with sales of Registrable Securities
pursuant to a Registration Statement.

 

(c)           Discontinued
Disposition. By its acquisition of Registrable Securities,
each Holder agrees that, upon receipt of a notice from the Company
of the occurrence of any event of the kind described in Section
3(b)(i)-(iii), such Holder will forthwith discontinue disposition
of such Registrable Securities under a Registration Statement until
it is advised in writing (the “Advice”) by the Company
that the use of the applicable Prospectus (as it may have been
supplemented or amended) may be resumed. The Company will use its
commercially reasonable efforts to ensure that the use of the
Prospectus may be resumed as promptly as is
practicable.

 

(d)           Amendments
and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the same shall be in
writing and signed by the Company and the Holders of a majority of
the then outstanding Registrable Securities. If a Registration
Statement does not register all of the Registrable Securities
pursuant to a waiver or amendment done in compliance with the
previous sentence, then the number of Registrable Securities to be
registered for each Holder shall be reduced pro rata among all Holders and each
Holder shall have the right to designate which of its Registrable
Securities shall be omitted from such Registration Statement.
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 some Holders and that does not
directly or indirectly affect the rights of other Holders may be
given by Holders of all of the Registrable Securities to which such
waiver or consent relates; provided, however, that in the event the
Company shall deliver written notice to a Holder with respect to a
requested waiver or amendment, such Holder shall be deemed to have
consented and agreed to such amendment or waiver if such Holder
does not provide written notice to the Company indicating such
Holder’s non-consent within ten calendar days of delivery by
the Company of such written notice; provided, further, that the provisions of
this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the first sentence of this
Section 6(d).

 

(e)           Notices.
Any and all notices or other communications or deliveries required
or permitted to be provided hereunder shall be delivered as set
forth in the Purchase Agreement.

 

 

- 10 -

 

 

(f)           Successors
and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each Holder. Nothing
in this Agreement, express or implied, is intended to confer upon
any party other than the parties hereto or their respective
successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement. The Company may not assign
its rights (except by merger or in connection with another entity
acquiring all or substantially all of the Company’s assets)
or obligations hereunder without the prior written consent of all
the Holders of the then outstanding Registrable Securities. Each
Holder may assign its respective rights with respect to any or all
of its Registrable Securities, hereunder in the manner and to the
Persons as permitted under the Purchase Agreement; provided in each case that (i) the
Holder agrees in writing with the transferee or assignee to assign
such rights and related obligations under this Agreement, and for
the transferee or assignee to assume such obligations, and a copy
of such agreement is furnished to the Company within a reasonable
time after such assignment, (ii) the Company is, within a
reasonable time after such transfer or assignment, furnished with
written notice of the name and address of such transferee or
assignee and the securities with respect to which such registration
rights are being transferred or assigned, (iii) at or before the
time the Company received the written notice contemplated by clause
(ii) of this sentence, the transferee or assignee agrees in writing
with the Company to be bound by all of the provisions contained
herein and (iv) the transferee is an “accredited
investor,” as that term is defined in Rule 501 of Regulation
D and completes any required documentation requested by the Company
to confirm the foregoing.

 

(g)           No
Inconsistent Agreements. Except as set forth in the Purchase
Agreement, neither the Company nor any of its subsidiaries has
previously entered into any agreement granting any registration
rights with respect to any of its securities to any Person that
have not been satisfied in full.

 

(h)           Execution
and Counterparts. This Agreement may be executed in two or
more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to
the other party, it being understood that both parties need not
sign the same counterpart. In the event that any signature is
delivered by facsimile transmission or other electronic
transmission of a “.pdf” format data file, such
signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the
same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

(i)           Governing
Law. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be
determined in accordance with the provisions of the Purchase
Agreement.

 

(j)           Cumulative
Remedies. The remedies provided herein are cumulative and
not exclusive of any other remedies provided by law.

 

(k)           Severability.
If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their
commercially reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It
is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or
unenforceable.

 

(l)           Headings.
The headings in this Agreement are for convenience only, do not
constitute a part of the Agreement and shall not be deemed to limit
or affect any of the provisions hereof.

 

(m)           Independent
Nature of Holders’ Obligations and Rights. The
obligations of each Holder hereunder are several and not joint with
the obligations of any other Holder hereunder, and no Holder shall
be responsible in any way for the performance of the obligations of
any other Holder hereunder. Nothing contained herein or in any
other agreement or document delivered at any closing, and no action
taken by any Holder pursuant hereto or thereto, shall be deemed to
constitute the Holders as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that
the Holders are in any way acting in concert with respect to such
obligations or the transactions contemplated by this Agreement.
Each Holder acknowledges that no other Holder has acted as agent
for such Holder in connection with making its investment hereunder
and that no Holder will be acting as agent of such Holder in
connection with monitoring its investment in the Registrable
Securities or enforcing its rights under the Purchase Agreement or
any other agreement entered into in connection with the Purchase
Agreement. Each Holder shall be entitled to protect and enforce its
rights, including without limitation the rights arising out of this
Agreement, and it shall not be necessary for any other Holder to be
joined as an additional party in any proceeding for such
purpose.

 

********************

 

[Signature
pages follow]

 

 

 

 

- 11 -

 

 

 

 

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

 

	
 

	

YOUNGEVITY INTERNATIONAL, INC.

	
 

	
 

	
 

	

By:

	
 

	
 

	
 

	

Name:
Stephan Wallach

	
 

	
 

	

Title:
Chief Executive Officer

 

 

   INVESTORS:

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

- 12 -

 

 

ANNEX
A

 

YOUNGEVITY INTERNATIONAL, INC.

 

Purchaser Information Request

 

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

 

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

 

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

 

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

 

1.
Name.

 

(a) 

Full Legal Name of
Selling Stockholder:

 

	
 

	
 

 

(b) 

Full Legal Name of
Registered Holder (if not the same as (a) above) through which
Registrable Securities Listed in Item 3 below are
held:

 

	
 

	
 

 

(c) 

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

 

	
 

	
 

 

 

 

 

 

 

2.
Broker-Dealer Status:

 

(a)

Are you
a broker-dealer?

 

Yes
☐ No ☐

 

(b)

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

 

Yes
☐ No ☐

 

Note:
If no, the Commission’s staff has indicated that you should
be identified as an underwriter in the Registration
Statement.

 

(c)

Are you
an affiliate of a broker-dealer?

 

Yes
☐ No ☐

 

(d)

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

 

Yes
☐ No ☐

 

Note:
If no, the Commission’s staff has indicated that you should
be identified as an underwriter in the Registration
Statement.

 

3.
Beneficial Ownership of Securities of the Company Owned by the
Selling Shareholder.

 

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

 

	
 

	

(a)

	

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

4.
Relationships with the Company:

 

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

 

State
any exceptions here:

 

	
 

	
 

 

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

 

 

 

 

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

 

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

 

 

 

 

	

Dated:

	
 

	
 

	
 

	
 

 

 

 

	
 

	
 

	

By:

	
 

	
 

	
 

	
 

	

Name:

	
 

	
 

	
 

	

Title:

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