Document:

Blueprint

EXHIBIT
10.1

 

PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

 

 

THIS
PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT
(“Agreement”) is made as of the ____ day of
_______________ 2017 by and among Visualant, Incorporated, a Nevada
corporation (the “Company”), and the Investor(s) set
forth on the signature pages affixed hereto (each an
“Investor” and collectively the
“Investors”).

 

Recitals

 

A.           The
Company and the Investors are executing and delivering this
Agreement in reliance upon the exemption from securities
registration afforded by the provisions of Section 4(a)(2) of the
Securities Act of 1933, as amended, and Regulation D
(“Regulation D”), as promulgated by the U.S. Securities
and Exchange Commission (the “SEC”) thereunder;
and

 

B.           The
Investors wish to purchase from the Company, and the Company wishes
to sell and issue to the Investors, upon the terms and conditions
stated in this Agreement, (i) an aggregate of up to 3,906,250 shares (the
“Shares”) of the Company’s Series D Preferred
Stock, par value $0.001 par value (the “Preferred
Stock”), for an aggregate purchase price of up to $2,734,375,
such Preferred Stock to have the relative rights, preferences,
limitations and designations set forth in the Amended and Restated
Certificate of Designation set forth in Exhibit A attached hereto (the
“Amended and Restated Certificate of Designation”) and
to be convertible into shares of the Company’s Common Stock,
par value $0.001 per share (together with any securities into which
such shares may be reclassified, whether by merger, charter
amendment or otherwise, the “Common Stock”), at a
conversion price of $0.70 per Share (subject to adjustment) and
(ii) Series F Warrants to purchase an aggregate of 3,906,250 shares
of Common Stock (subject to adjustment) (the “Warrant
Shares”) at an exercise price of $0.70 per share (subject to
adjustment) in the form attached hereto as Exhibit B (the
“Warrants”); and

 

C.           Contemporaneous
with the sale of the Shares and Warrants, the parties hereto will
execute and deliver an Amended and Restated Registration Rights
Agreement, in the form attached hereto as Exhibit C (the “Amended
and Restated Certificate of Designation”), pursuant to which
the Company will agree to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder, and applicable state securities
laws.

 

In
consideration of the mutual promises made herein and for other good
and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as
follows:

 

1.           Definitions.
In addition to those terms defined above and elsewhere in this
Agreement, for the purposes of this Agreement, the following terms
shall have the meanings set forth below:

 

 

1

 

 

“Affiliate” means, with
respect to any Person, any other Person which directly or
indirectly through one or more intermediaries Controls, is
controlled by, or is under common Control with, such
Person.

 

“Business Day” means a
day, other than a Saturday or Sunday, on which banks in New York
City are open for the general transaction of business.

 

“Company’s
Knowledge” means the actual knowledge of the executive
officers (as defined in Rule 405 under the 1933 Act) of the
Company, after due inquiry.

 

“Control” (including the
terms “controlling”, “controlled by” or
“under common control with”) means the possession,
direct or indirect, of the power to direct or cause the direction
of the management and policies of a Person, whether through the
ownership of voting securities, by contract or
otherwise.

 

“Conversion Shares” means
the shares of Common Stock issuable upon conversion of the
Shares.

 

“Effective Date” means the
date on which the initial Registration Statement is declared
effective by the SEC.

 

“Effectiveness Deadline”
means the date on which the initial Registration Statement is
required to be declared effective by the SEC under the terms of the
Amended and Restated Certificate of Designation.

 

“Insider” means each
director, executive officer, other officer of the Company
participating in the offering, any beneficial owner of 20% or more
of the Company’s outstanding voting equity securities,
calculated on the basis of voting power, and any promoter connected
with the Company in any capacity on the date hereof.

 

“Material Adverse Effect”
means a material adverse effect on (i) the assets, liabilities,
results of operations, condition (financial or otherwise),
business, or prospects of the Company and its Subsidiaries taken as
a whole, or (ii) the ability of the Company to perform its
obligations under the Transaction Documents.

 

“Material Contract” means
any contract, instrument or other agreement to which the Company or
any Subsidiary is a party or by which it is bound which is material
to the business of the Company and its Subsidiaries, taken as a
whole, including those that have been filed or were required to
have been filed as an exhibit to the SEC Filings pursuant to Item
601(b)(4) or Item 601(b)(10) of Regulation S-K.

 

“Person” means an
individual, corporation, partnership, limited liability company,
trust, business trust, association, joint stock company, joint
venture, sole proprietorship, unincorporated organization,
governmental authority or any other form of entity not specifically
listed herein.

 

“Purchase Price” means up
to Two Million Seven Hundred Thirty Four Thousand Three Hundred
Seventy Five Dollars ($2,734,375).

 

 

2

 

 

“Registration Statement”
has the meaning set forth in the Amended and Restated Certificate
of Designation.

 

“Required Investors” means
Investors who, together with their Affiliates, beneficially own
(calculated in accordance with Rule 13d-3 under the 1934 Act
without giving effect to any limitation on the conversion of the
Preferred Stock set forth therein and any limitation on the
exercise of the Warrants set forth therein) 85% of the Conversion
Shares and the Warrant Shares issuable pursuant
hereto.

 

“SEC Filings” has the
meaning set forth in Section 4.6.

 

“Securities” means the
Shares, the Conversion Shares, the Warrants and the Warrant
Shares.

 

“Subsidiary” of any Person
means another Person, an amount of the voting securities, other
voting ownership or voting partnership interests of which is
sufficient to elect at least a majority of its Board of Directors
or other governing body (or, if there are no such voting interests,
50% or more of the equity interests of which) is owned directly or
indirectly by such first Person.

 

“Transaction Documents”
means this Agreement, the Amended and Restated Certificate of
Designation, the Warrants and the Amended and Restated Certificate
of Designation.

 

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

 

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

 

2.           Purchase
and Sale of the Shares and Warrants. Subject to the terms
and conditions of this Agreement, on the Closing Date, each of the
Investors shall severally, and not jointly, purchase, and the
Company shall sell and issue to each Investor, the Shares and
Warrants in the respective amounts set forth opposite such
Investor’s name on the signature pages attached hereto in
exchange for the portion of the Purchase Price as specified in
Section 3 below.

 

3.           Closing.
Upon confirmation that the other conditions to closing specified
herein have been satisfied or duly waived by the Investors, the
Company shall file the Amended and Restated Certificate of
Designation with the Secretary of State of Nevada. Upon
confirmation that the Amended and Restated Certificate of
Designation has been filed and has become effective and the other
conditions to closing specified herein have been satisfied or duly
waived by the Investors, unless other arrangements have been made
with a particular Investor, (i) each Investor shall promptly cause
a wire transfer in same day funds to be sent to the account of the
Company as instructed in writing by the Company, in an amount
representing such Investor’s pro rata portion of the Purchase
Price as set forth on the signature pages to this Agreement and
(ii) the Company shall mail to each Investor or its designee by
overnight courier, a certificate or certificates, registered in
such name or names as the Investors may designate, representing the
Shares and Warrants purchased by such Investor. The date on which
such transactions are consummated is hereinafter referred to as the
“Closing Date.” The closing of the purchase and sale of
the Shares and Warrants (the “Closing”) shall take
place at the offices of Lucosky Brookman, 101 Wood Avenue South,
Woodbridge, New Jersey 08830 concurrently with the execution of
this Agreement or at such other location and on such other date as
the Company and the Investors shall mutually agree.

 

 

3

 

 

4.           Representations
and Warranties of the Company. The Company hereby represents
and warrants to the Investors that, except as set forth in the SEC
Filings:

 

4.
1           Organization,
Good Standing and Qualification. Each of the Company and its
Subsidiary is a corporation duly organized, validly existing and in
good standing under the laws of the jurisdiction of its
incorporation and has all requisite corporate power and authority
to carry on its business as now conducted and to own or lease its
properties. Each of the Company and its Subsidiary is duly
qualified to do business as a foreign corporation and is in good
standing in each jurisdiction in which the conduct of its business
or its ownership or leasing of property makes such qualification or
leasing necessary unless the failure to so qualify has not had and
could not reasonably be expected to have a Material Adverse Effect.
The Company’s only Subsidiary is TransTech Systems, Inc., an
Oregon corporation.

 

4.2           Authorization.
The Company has full power and authority and, except for the filing
of the Amended and Restated Certificate of Designation with the
Secretary of State of Nevada, has taken all requisite action on the
part of the Company, its officers, directors and stockholders
necessary for (i) the authorization, execution and delivery of the
Transaction Documents, (ii) the authorization of the performance of
all obligations of the Company hereunder or thereunder, and (iii)
the authorization, issuance (or reservation for issuance) and
delivery of the Securities. The Transaction Documents constitute
the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general
applicability, relating to or affecting creditors’ rights
generally and to general equitable principles.

 

4.3           Capitalization.
Company’s Quarterly Report on Form 10-Q for the quarter ended
December 31, 2016 (the “December 2016 Form 10-Q”) sets
forth as of the date thereof (a) the authorized capital stock of
the Company; (b) the number of shares of capital stock issued and
outstanding; (c) the number of shares of capital stock issuable
pursuant to the Company’s stock plans; and (d) the number of
shares of capital stock issuable and reserved for issuance pursuant
to securities (other than the Shares and the Warrants) exercisable
for, or convertible into or exchangeable for any shares of capital
stock of the Company. All of the issued and outstanding shares of
the Company’s capital stock have been duly authorized and
validly issued and are fully paid, nonassessable and free of
pre-emptive rights and were issued in full compliance with
applicable state and federal securities law and any rights of third
parties. All of the issued and outstanding shares of capital stock
of each Subsidiary have been duly authorized and validly issued and
are fully paid, nonassessable and free of pre-emptive rights, were
issued in full compliance with applicable state and federal
securities law and any rights of third parties and are owned by the
Company, beneficially and of record, subject to no lien,
encumbrance or other adverse claim. Except as described in the SEC
Filings (as defined below), no Person is entitled to pre-emptive or
similar statutory or contractual rights with respect to any
securities of the Company. Except as described in the SEC Filings,
there are no outstanding warrants, options, convertible securities
or other rights, agreements or arrangements of any character under
which the Company or any of its Subsidiaries is or may be obligated
to issue any equity securities of any kind. Except as described in
the SEC Filings, there are no voting agreements, buy-sell
agreements, option or right of first purchase agreements or other
agreements of any kind among the Company and any of the security
holders of the Company relating to the securities of the Company
held by them. Except as described in the SEC Filings, no Person has
the right to require the Company to register any securities of the
Company under the 1933 Act, whether on a demand basis or in
connection with the registration of securities of the Company for
its own account or for the account of any other
Person.

 

 

4

 

 

The
issuance and sale of the Securities hereunder will not obligate the
Company to issue shares of Common Stock or other securities to any
other Person (other than the Investors) and will not result in the
adjustment of the exercise, conversion, exchange or reset price of
any outstanding security, except for such rights as have been
irrevocably waived with respect to the issuance and sale of the
Securities hereunder on or prior to the date hereof.

 

The
Company does not have outstanding stockholder purchase rights or
“poison pill” or any similar arrangement in effect
giving any Person the right to purchase any equity interest in the
Company upon the occurrence of certain events.

 

4.4           Valid
Issuance. Upon the filing of the Amended and Restated
Certificate of Designation with the Secretary of State of Nevada,
the Shares will have been duly and validly authorized and, when
issued and paid for pursuant to this Agreement, will be validly
issued, fully paid and nonassessable, and shall be free and clear
of all encumbrances and restrictions (other than those created by
the Investors), except for restrictions on transfer set forth in
the Transaction Documents or imposed by applicable securities laws.
Upon the due conversion of the Shares, the Conversion Shares will
be validly issued, fully paid and non-assessable and free and clear
of all encumbrances and restrictions, except for restrictions on
transfer set forth in the Transaction Documents or imposed by
applicable securities laws. The Company has reserved a sufficient
number of shares of Common Stock for issuance upon the conversion
of the Shares. The Warrants have been duly and validly authorized.
Upon the due exercise of the Warrants, the Warrant Shares will be
validly issued, fully paid and non-assessable free and clear of all
encumbrances and restrictions, except for restrictions on transfer
set forth in the Transaction Documents or imposed by applicable
securities laws and except for those created by the Investors. The
Company has reserved a sufficient number of shares of Common Stock
for issuance upon the exercise of the Warrants.

 

4.5           Consents.
Except for the filing of the Amended and Restated Certificate of
Designation with the Secretary of State of Nevada, the execution,
delivery and performance by the Company of the Transaction
Documents and the offer, issuance and sale of the Securities
require no consent of, action by or in respect of, or filing with,
any Person, governmental body, agency, or official other than
filings that have been made pursuant to applicable state securities
laws and post-sale filings pursuant to applicable state and federal
securities laws which the Company undertakes to file within the
applicable time periods. Subject to the accuracy of the
representations and warranties of each Investor set forth in
Section 5 hereof, the Company has taken all action necessary to
exempt (i) the issuance and sale of the Securities, (ii) the
issuance of the Conversion Shares upon due conversion of the
Shares, (iii) the issuance of the Warrant Shares upon due exercise
of the Warrants, and (iv) the other transactions contemplated by
the Transaction Documents from the provisions of any stockholder
rights plan or other “poison pill” arrangement, any
anti-takeover, business combination or control share law or statute
binding on the Company or to which the Company or any of its assets
and properties may be subject and any provision of the
Company’s Certificate of Incorporation or Bylaws that is or
could reasonably be expected to become applicable to the Investors
as a result of the transactions contemplated hereby, including
without limitation, the issuance of the Securities and the
ownership, disposition or voting of the Securities by the Investors
or the exercise of any right granted to the Investors pursuant to
this Agreement or the other Transaction Documents.

 

 

5

 

 

4.6           Delivery
of SEC Filings; Business. The Company has made available to
the Investors through the EDGAR system, true and complete copies of
the Company’s most recent Annual Report on Form 10-K for the
fiscal year ended September 30, 2016 (the “10-K”), and
all other reports filed by the Company pursuant to the 1934 Act
since the filing of the 10-K and prior to the date hereof,
including, without limitation, the December 2016 Form 10-Q
(collectively, the “SEC Filings”). The SEC Filings are
the only filings required of the Company pursuant to the 1934 Act
for such period. The Company and its Subsidiaries are engaged in
all material respects only in the business described in the SEC
Filings and the SEC Filings contain a complete and accurate
description in all material respects of the business of the Company
and its Subsidiaries, taken as a whole.

 

4.7           Use
of Proceeds. The net proceeds of the sale of the Shares and
the Warrants hereunder shall be used by the Company for repayment
of existing debt up to a maximum of $210,000 and general working
capital purposes.

 

4.8           No
Material Adverse Change. Since September 30, 2016, except as
identified and described in the SEC Filings, there has not
been:

 

(i)           any
change in the consolidated assets, liabilities, financial condition
or operating results of the Company from that reflected in the
financial statements included in the December 2016 Form 10-Q,
except for changes in the ordinary course of business which have
not had and could not reasonably be expected to have a Material
Adverse Effect, individually or in the aggregate;

 

(ii)           any
declaration or payment of any dividend, or any authorization or
payment of any distribution, on any of the capital stock of the
Company, or any redemption or repurchase of any securities of the
Company;

 

(iii)           any
material damage, destruction or loss, whether or not covered by
insurance to any assets or properties of the Company or its
Subsidiaries;

 

 

6

 

 

(iv)           any
waiver, not in the ordinary course of business, by the Company or
any Subsidiary of a material right or of a material debt owed to
it;

 

(v)           any
satisfaction or discharge of any lien, claim or encumbrance or
payment of any obligation by the Company or a Subsidiary, except in
the ordinary course of business and which is not material to the
assets, properties, financial condition, operating results or
business of the Company and its Subsidiaries taken as a whole (as
such business is presently conducted and as it is proposed to be
conducted);

 

(vi)           other
than the Amended and Restated Certificate of Designation, any
change or amendment to the Company's Certificate of Incorporation
or Bylaws, or material change to any material contract or
arrangement by which the Company or any Subsidiary is bound or to
which any of their respective assets or properties is
subject;

 

(vii)           any
material labor difficulties or labor union organizing activities
with respect to employees of the Company or any
Subsidiary;

 

(viii)        
any material transaction entered into by the Company or a
Subsidiary other than in the ordinary course of
business;

 

(ix)           the
loss of the services of any key employee, or material change in the
composition or duties of the senior management of the Company or
any Subsidiary;

 

(x)           the
loss or threatened loss of any customer which has had or could
reasonably be expected to have a Material Adverse Effect;
or

 

(xi)           any
other event or condition of any character that has had or could
reasonably be expected to have a Material Adverse
Effect.

 

4.9           SEC
Filings; S-3 Eligibility.

 

(a)           At
the time of filing thereof, the SEC Filings complied as to form in
all material respects with the requirements of the 1934 Act and did
not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary
in order to make the statements made therein, in the light of the
circumstances under which they were made, not
misleading.

 

(b)           The
Company is not currently eligible to use Form S-3 to register the
Registrable Securities (as such term is defined in the Amended and
Restated Certificate of Designation) for sale or other disposition
by the Investors as contemplated by the Amended and Restated
Certificate of Designation.

 

 

7

 

 

4.10           No
Conflict, Breach, Violation or Default. Subject to the
filing of the Amended and Restated Certificate of Designation with
the State of Nevada, the execution, delivery and performance of the
Transaction Documents by the Company, the issuance and sale of the
Securities will not (i) conflict with or result in a breach or
violation of (a) any of the terms and provisions of, or constitute
a default under the Company’s Certificate of Incorporation or
the Company’s Bylaws, both as in effect on the date hereof
(true and complete copies of which have been made available to the
Investors through the EDGAR system), or (b) any statute, rule,
regulation or order of any governmental agency or body or any
court, domestic or foreign, having jurisdiction over the Company,
any Subsidiary or any of their respective assets or properties, or
(ii) conflict with, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under,
result in the creation of any lien, encumbrance or other adverse
claim upon any of the properties or assets of the Company or any
Subsidiary or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time
or both) of, any Material Contract.

 

4.11           Registration
of Common Stock. The Common Stock is registered pursuant to
Section 12(g) of the 1934 Act and is quoted on OTCQB maintained by
OTC Markets Group Inc. (the “OTCQB”), and the Company
has taken no action designed to, or likely to have the effect of,
terminating the registration of the Common Stock under the 1934 Act
or removal from quotation of the Common Stock from the OTCQB, nor
has the Company received any notification that the SEC, the OTCQB
or the Financial Industry Regulatory Authority, Inc. is
contemplating terminating such registration or
quotation.

 

4.12           Brokers
and Finders. No Person will have, as a result of the
transactions contemplated by the Transaction Documents, any valid
right, interest or claim against or upon the Company, any
Subsidiary or an Investor for any commission, fee or other
compensation pursuant to any agreement, arrangement or
understanding entered into by or on behalf of the Company other
than Garden State Securities, Inc., which will receive a cash fee
of 10% and warrants equal to 10% of the securities issued in the
Offering (on an as converted basis).

 

4.13           No
Directed Selling Efforts or General Solicitation. Neither
the Company nor any Person acting on its behalf has conducted any
general solicitation or general advertising (as those terms are
used in Regulation D) in connection with the offer or sale of any
of the Securities.

 

4.14           No
Integrated Offering. Neither the Company nor any of its
Affiliates, nor any Person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any Company
security or solicited any offers to buy any security under
circumstances that would adversely affect reliance by the Company
on Section 4(a)(2) for the exemption from registration for the
transactions contemplated hereby or would require registration of
the Securities under the 1933 Act.

 

 

8

 

 

4.15           Rule
506 Compliance. To the Company's knowledge, neither the
Company nor any Insider is subject to any of the “Bad
Actor” disqualifications described in Rule 506(d)(1)(i) to
(viii) under the 1933 Act (a “Disqualification Event”),
except for a Disqualification Event covered by Rule 506(d)(2)(i) or
(d)(3) of the 1933 Act. The Company is not disqualified from
relying on Rule 506 of Regulation D under the 1933 Act (“Rule
506”) for any of the reasons stated in Rule 506(d) in
connection with the issuance and sale of the Securities to the
Investors pursuant to this Agreement. The Company has exercised
reasonable care, including without limitation, conducting a factual
inquiry that is appropriate in light of the circumstances, into
whether any such disqualification under Rule 506(d) exists. The
Company has furnished to each Investor, a reasonable time prior to
the date hereof, a description in writing of any matters relating
to the Company and the Insiders that would have triggered
disqualification under Rule 506(d) but which occurred before
September 23, 2013, in each case, in compliance with the disclosure
requirements of Rule 506(e). The Company has exercised reasonable
care, including without limitation, conducting a factual inquiry
that is appropriate in light of the circumstances, into whether any
such disqualification under Rule 506(d) would have existed and
whether any disclosure is required to be made to Investor under
Rule 506(e). Any outstanding securities of the Company (of any kind
or nature) that were issued in reliance on Rule 506 at any time on
or after September 23, 2013 have been issued in compliance with
Rule 506(d) and (e).

 

4.16           Private
Placement. The offer and sale of the Securities to the
Investors as contemplated hereby is exempt from the registration
requirements of the 1933 Act.

 

4.17           Disclosures.
Neither the Company nor any Person acting on its behalf has
provided the Investors or their agents or counsel with any
information that constitutes or might constitute material,
non-public information, other than the terms of the transactions
contemplated hereby. The written materials delivered to the
Investors in connection with the transactions contemplated by the
Transaction Documents do not contain any untrue statement of a
material fact or omit to state a material fact necessary in order
to make the statements contained therein, in light of the
circumstances under which they were made, not
misleading.

 

4.18           Investment
Company. The Company is not required to be registered as,
and is not an Affiliate of, and immediately following the Closing
will not be required to register as, an “investment
company” within the meaning of the Investment Company Act of
1940, as amended.

 

4.19           Series
A Preferred Stock. The Company covenants and agrees to not
issue any of its Series A Preferred Stock while the Series D
Preferred is issued and outstanding.

 

5.           Representations
and Warranties of the Investors. Each of the Investors
hereby severally, and not jointly, represents and warrants to the
Company that:

 

5.1           Organization
and Existence. If applicable, such Investor is a validly
existing corporation, limited partnership or limited liability
company and has all requisite corporate, partnership or limited
liability company power and authority to invest in the Securities
pursuant to this Agreement.

 

5.2           Authorization.
The execution, delivery and performance by such Investor of the
Transaction Documents to which such Investor is a party have been
duly authorized and each will constitute the valid and legally
binding obligation of such Investor, enforceable against such
Investor in accordance with their respective terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability, relating to
or affecting creditors’ rights generally.

 

 

9

 

 

5.3           Purchase
Entirely for Own Account. The Securities to be received by
such Investor hereunder will be acquired for such Investor’s
own account, not as nominee or agent, and not with a view to the
resale or distribution of any part thereof in violation of the 1933
Act, and such Investor has no present intention of selling,
granting any participation in, or otherwise distributing the same
in violation of the 1933 Act without prejudice, however, to such
Investor’s right at all times to sell or otherwise dispose of
all or any part of such Securities in compliance with applicable
federal and state securities laws. Nothing contained herein shall be
deemed a representation or warranty by such Investor to hold the
Securities for any period of time. Such Investor is not a
broker-dealer registered with the SEC under the 1934 Act or an
entity engaged in a business that would require it to be so
registered.

 

5.4           Investment
Experience. Such Investor acknowledges that it can bear the
economic risk and complete loss of its investment in the Securities
and has such knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risks of
the investment contemplated hereby.

 

5.5           Disclosure
of Information. Such Investor has had an opportunity to
receive all information related to the Company requested by it and
to ask questions of and receive answers from the Company regarding
the Company, its business and the terms and conditions of the
offering of the Securities. Such Investor acknowledges receipt of
copies of the SEC Filings. Neither such inquiries nor any other due
diligence investigation conducted by such Investor shall modify,
limit or otherwise affect such Investor’s right to rely on
the Company’s representations and warranties contained in
this Agreement.

 

5.6           Restricted
Securities. Such Investor understands that the Securities
are characterized as “restricted securities” under the
U.S. federal securities laws inasmuch as they are being acquired
from the Company in a transaction not involving a public offering
and that under such laws and applicable regulations such securities
may be resold without registration under the 1933 Act only in
certain limited circumstances.

 

5.7           Legends.
It is understood that, except as provided below, certificates
evidencing the Securities may bear the following or any similar
legend:

 

(a)           “The
securities represented hereby have 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, and, accordingly, may not be
transferred unless (i) such securities have been registered for
sale pursuant to the Securities Act of 1933, as amended, (ii) such
securities may be sold pursuant to Rule 144, or (iii) the Company
has received an opinion of counsel reasonably satisfactory to it
that such transfer may lawfully be made without registration under
the Securities Act of 1933, as amended.”

 

(b)           If
required by the authorities of any state in connection with the
issuance of sale of the Securities, the legend required by such
state authority.

 

5.8           Accredited
Investor. Such Investor is an accredited investor as defined
in Rule 501(a) of Regulation D, as amended, under the 1933 Act, as
amended by the Dodd-Frank Wall Street Reform and Consumer
Protection Act.

 

5.9           No
General Solicitation. Such Investor did not learn of the
investment in the Securities as a result of any general
solicitation or general advertising.

 

 

10

 

 

5.10           Brokers
and Finders. No Person will have, as a result of the
transactions contemplated by the Transaction Documents, any valid
right, interest or claim against or upon the Company, any
Subsidiary or an Investor for any commission, fee or other
compensation pursuant to any agreement, arrangement or
understanding entered into by or on behalf of such Investor, other
than Garden State Securities, Inc.

 

5.11           Prohibited
Transactions. Since the earlier of (a) such time as such
Investor was first contacted by the Company or any other Person
acting on behalf of the Company regarding the transactions
contemplated hereby or (b) thirty (30) days prior to the date
hereof, neither such Investor nor any Affiliate of such Investor
which (x) had knowledge of the transactions contemplated hereby,
(y) has or shares discretion relating to such Investor’s
investments or trading or information concerning such
Investor’s investments, including in respect of the
Securities, or (z) is subject to such Investor’s review or
input concerning such Affiliate’s investments or trading
(collectively, “Trading Affiliates”) has, directly or
indirectly, effected or agreed to effect any short sale, whether or
not against the box, established any “put equivalent
position” (as defined in Rule 16a-1(h) under the 1934 Act)
with respect to the Common Stock, granted any other right
(including, without limitation, any put or call option) with
respect to the Common Stock or with respect to any security that
includes, relates to or derived any significant part of its value
from the Common Stock or otherwise sought to hedge its position in
the Securities (each, a “Prohibited Transaction”).
Prior to the earliest to occur of (i) the termination of this
Agreement, (ii) the Effective Date or (iii) the Effectiveness
Deadline, such Investor shall not, and shall cause its Trading
Affiliates not to, engage, directly or indirectly, in a Prohibited
Transaction. Such Investor acknowledges that the representations,
warranties and covenants contained in this Section 5.11 are being
made for the benefit of the Investors as well as the Company and
that each of the other Investors shall have an independent right to
assert any claims against such Investor arising out of any breach
or violation of the provisions of this Section 5.11.

 

As long
as at least 85% of the Series D is still outstanding, the Company
will not issue any variable priced financing, any security senior
to the Series D and will not issue any debt (secured or
non-secured) senior to the Series D.

 

6.           Conditions
to Closing.

 

6.1           Conditions
to the Investors’ Obligations. The obligation of each
Investor to purchase the Shares and the Warrants at the Closing is
subject to the fulfillment to such Investor’s satisfaction,
on or prior to the Closing Date, of the following conditions, any
of which may be waived by such Investor (as to itself
only):

 

(a)           The
representations and warranties made by the Company in Section 4
hereof qualified as to materiality shall be true and correct at all
times prior to and on the Closing Date, except to the extent any
such representation or warranty expressly speaks as of an earlier
date, in which case such representation or warranty shall be true
and correct as of such earlier date, and, the representations and
warranties made by the Company in Section 4 hereof not qualified as
to materiality shall be true and correct in all material respects
at all times prior to and on the Closing Date, except to the extent
any such representation or warranty expressly speaks as of an
earlier date, in which case such representation or warranty shall
be true and correct in all material respects as of such earlier
date. The Company shall have performed in all material respects all
obligations and covenants herein required to be performed by it on
or prior to the Closing Date.

 

 

11

 

 

(b)           The
Company shall have obtained any and all consents, permits,
approvals, registrations and waivers necessary or appropriate for
consummation of the purchase and sale of the Securities and the
consummation of the other transactions contemplated by the
Transaction Documents, all of which shall be in full force and
effect.

 

(c)           The
Company shall have executed and delivered the Amended and Restated
Certificate of Designation.

 

(d)           The
Amended and Restated Certificate of Designation shall have been
filed with the Secretary of State of Nevada and shall be effective;
a filed copy of the Amended and Restated Certificate of Designation
shall have been provided to the Investors.

 

(e)           No
judgment, writ, order, injunction, award or decree of or by any
court, or judge, justice or magistrate, including any bankruptcy
court or judge, or any order of or by any governmental authority,
shall have been issued, and no action or proceeding shall have been
instituted by any governmental authority, enjoining or preventing
the consummation of the transactions contemplated hereby or in the
other Transaction Documents.

 

(f)           No
stop order or suspension of trading shall have been imposed by
OTCQB, the SEC or any other governmental or regulatory body with
respect to public trading in the Common Stock.

 

6.2           Conditions
to Obligations of the Company. The Company's obligation to
sell and issue the Shares and the Warrants at the Closing is
subject to the fulfillment to the satisfaction of the Company on or
prior to the Closing Date of the following conditions, any of which
may be waived by the Company:

 

(a)           The
representations and warranties made by the Investors in Section 5
hereof, other than the representations and warranties contained in
Sections 5.3, 5.4, 5.5, 5.6, 5.7, 5.8 and 5.9 (the
“Investment Representations”), shall be true and
correct in all material respects when made, and shall be true and
correct in all material respects on the Closing Date with the same
force and effect as if they had been made on and as of said date.
The Investment Representations shall be true and correct in all
respects when made, and shall be true and correct in all respects
on the Closing Date with the same force and effect as if they had
been made on and as of said date. The Investors shall have
performed in all material respects all obligations and covenants
herein required to be performed by them on or prior to the Closing
Date.

 

(b)           The
Investors shall have executed and delivered the Amended and
Restated Certificate of Designation.

 

(c)           The
Investors shall have delivered the Purchase Price to the
Company.

 

7.           Covenants
and Agreements of the Company.

 

 

12

 

 

7.1           Reservation
of Common Stock. The Company shall at all times reserve and
keep available out of its authorized but unissued shares of Common
Stock, solely for the purpose of providing for the conversion of
the Shares and the exercise of the Warrants, such number of shares
of Common Stock as shall from time to time equal the number of
shares sufficient to permit the conversion of the Shares and the
exercise of the Warrants issued pursuant to this Agreement in
accordance with their respective terms.

 

7.2           Reports.
The Company will furnish to the Investors and/or their assignees
such information relating to the Company and its Subsidiaries as
from time to time may reasonably be requested by the Investors
and/or their assignees; provided, however, that the Company shall
not disclose material nonpublic information to the Investors, or to
advisors to or representatives of the Investors, unless prior to
disclosure of such information the Company identifies such
information as being material nonpublic information and provides
the Investors, such advisors and representatives with the
opportunity to accept or refuse to accept such material nonpublic
information for review and any Investor wishing to obtain such
information enters into an appropriate confidentiality agreement
with the Company with respect thereto.

 

7.3        
No Conflicting
Agreements. The Company will not take any action, enter into
any agreement or make any commitment that would conflict or
interfere in any material respect with the Company’s
obligations to the Investors under the Transaction
Documents.

 

7.3           Compliance
with Laws. The Company will comply in all material respects
with all applicable laws, rules, regulations, orders and decrees of
all governmental authorities.

 

7.4           Termination
of Covenants. The provisions of Section 7.2 shall terminate
and be of no further force and effect on the date on which the
Company’s obligations under the Amended and Restated
Certificate of Designation to register or maintain the
effectiveness of any registration covering the Registrable
Securities (as such term is defined in the Amended and Restated
Certificate of Designation) shall terminate.

 

7.5           Removal
of Legends. In connection with any sale or disposition of
the Securities by an Investor pursuant to Rule 144 or pursuant to
any other exemption under the 1933 Act such that the purchaser
acquires freely tradable shares and upon compliance by the Investor
with the requirements of this Agreement, the Company shall or, in
the case of Common Stock, shall cause the transfer agent for the
Common Stock (the “Transfer Agent”) to issue
replacement certificates representing the Securities sold or
disposed of without restrictive legends. Upon the earlier of (i)
registration for resale pursuant to the Amended and Restated
Certificate of Designation or (ii) the Shares becoming freely
tradable by a non-affiliate pursuant to Rule 144 the Company shall
(A) deliver to the Transfer Agent irrevocable instructions that the
Transfer Agent shall reissue a certificate representing shares of
Common Stock without legends upon receipt by such Transfer Agent of
the legended certificates for such shares, together with either (1)
a customary representation by the Investor that Rule 144 applies to
the shares of Common Stock represented thereby or (2) a statement
by the Investor that such Investor has sold the shares of Common
Stock represented thereby in accordance with the Plan of
Distribution contained in the Registration Statement, and (B) cause
its counsel to deliver to the Transfer Agent one or more blanket
opinions to the effect that the removal of such legends in such
circumstances may be effected under the 1933 Act. From and after
the earlier of such dates, upon an Investor’s written
request, the Company shall promptly cause certificates evidencing
the Investor’s Securities to be replaced with certificates
which do not bear such restrictive legends, and Conversion Shares
subsequently issued upon due conversion of the Shares and Warrant
Shares subsequently issued upon due exercise of the Warrants shall
not bear such restrictive legends provided the provisions of either
clause (i) or clause (ii) above, as applicable, are satisfied with
respect thereto. When the Company is required to cause an
unlegended certificate to replace a previously issued legended
certificate, if: (1) the unlegended certificate is not delivered to
an Investor within three (3) Business Days of submission by that
Investor of a legended certificate and supporting documentation to
the Transfer Agent as provided above and (2) prior to the time such
unlegended certificate is received by the Investor, the Investor,
or any third party on behalf of such Investor or for the
Investor’s account, purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of
a sale by the Investor of shares represented by such certificate (a
“Buy-In”), then the Company shall pay in cash to the
Investor (for costs incurred either directly by such Investor or on
behalf of a third party) the amount by which the total purchase
price paid for Common Stock as a result of the Buy-In (including
brokerage commissions, if any) exceeds the proceeds received by
such Investor as a result of the sale to which such Buy-In relates.
The Investor shall provide the Company written notice indicating
the amounts payable to the Investor in respect of the
Buy-In.

 

 

13

 

 

7.6           Equal
Treatment of Investors. 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 Investor by the
Company and negotiated separately by each Investor, and is intended
for the Company to treat the Investors as a class and shall not in
any way be construed as the Investors acting in concert or as a
group with respect to the purchase, disposition or voting of
Securities or otherwise.

 

8.           Survival
and Indemnification.

 

8.1           Survival.
The representations, warranties, covenants and agreements contained
in this Agreement shall survive the Closing of the transactions
contemplated by this Agreement.

 

8.2           Indemnification.
The Company agrees to indemnify and hold harmless each Investor,
Garden State Securities, Inc. and its Affiliates and their
respective directors, officers, trustees, members, managers,
employees and agents, and their respective successors and assigns,
from and against any and all losses, claims, damages, liabilities
and expenses (including without limitation reasonable attorney fees
and disbursements and other expenses incurred in connection with
investigating, preparing or defending any action, claim or
proceeding, pending or threatened and the costs of enforcement
thereof) (collectively, “Losses”) to which such Person
may become subject as a result of any breach of representation,
warranty, covenant or agreement made by or to be performed on the
part of the Company under the Transaction Documents, and will
reimburse any such Person for all such amounts as they are incurred
by such Person.

 

 

 

 

14

 

 

8.3           Conduct
of Indemnification Proceedings. Any person
entitled to indemnification hereunder shall (i) give prompt notice
to the indemnifying party of any claim with respect to which it
seeks indemnification and (ii) permit such indemnifying party to
assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided that any person
entitled to indemnification hereunder shall have the right to
employ separate counsel and to participate in the defense of such
claim, but the fees and expenses of such counsel shall be at the
expense of such person unless (a) the indemnifying party has agreed
to pay such fees or expenses, or (b) the indemnifying party shall
have failed to assume the defense of such claim and employ counsel
reasonably satisfactory to such person or (c) in the reasonable
judgment of any such person, based upon written advice of its
counsel, a conflict of interest exists between such person and the
indemnifying party with respect to such claims (in which case, if
the person notifies the indemnifying party in writing that such
person elects to employ separate counsel at the expense of the
indemnifying party, the indemnifying party shall not have the right
to assume the defense of such claim on behalf of such person); and
provided, further, that the failure of any indemnified party to
give notice as provided herein shall not relieve the indemnifying
party of its obligations hereunder, except to the extent that such
failure to give notice shall materially adversely affect the
indemnifying party in the defense of any such claim or litigation.
It is understood that the indemnifying party shall not, in
connection with any proceeding in the same jurisdiction, be liable
for fees or expenses of more than one separate firm of attorneys at
any time for all such indemnified parties. No indemnifying party
will, except with the consent of the indemnified party, consent to
entry of any judgment or enter into any settlement that does not
include as an unconditional term thereof the giving by the claimant
or plaintiff to such indemnified party of a release from all
liability in respect of such claim or litigation.

 

9.           Miscellaneous.

 

9.1           Successors
and Assigns. This Agreement may not be assigned by a party
hereto without the prior written consent of the Company or the
Investors, as applicable, provided, however, that an Investor may
assign its rights and delegate its duties hereunder in whole or in
part to an Affiliate or to a third party acquiring some or all of
its Securities in a transaction complying with applicable
securities laws without the prior written consent of the Company or
the other Investors. The provisions of this Agreement shall inure
to the benefit of and be binding upon the respective permitted
successors and assigns of the parties. Without limiting the
generality of the foregoing, in the event that the Company is a
party to a merger, consolidation, share exchange or similar
business combination transaction in which the Common Stock is
converted into the equity securities of another Person, from and
after the effective time of such transaction, such Person shall, by
virtue of such transaction, be deemed to have assumed the
obligations of the Company hereunder, the term
“Company” shall be deemed to refer to such Person and
the term “Shares” shall be deemed to refer to the
securities received by the Investors in connection with such
transaction. 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.

 

 

15

 

 

9.2           Counterparts;
Faxes. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. This
Agreement may also be executed via facsimile, which shall be deemed
an original.

 

9.3           Titles
and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be
considered in construing or interpreting this
Agreement.

 

9.4           Notices.
Unless otherwise provided, any notice required or permitted under
this Agreement shall be given in writing and shall be deemed
effectively given as hereinafter described (i) if given by personal
delivery, then such notice shall be deemed given upon such
delivery, (ii) if given by telex or telecopier, then such notice
shall be deemed given upon receipt of confirmation of complete
transmittal, (iii) if given by mail, then such notice shall be
deemed given upon the earlier of (A) receipt of such notice by the
recipient or (B) three days after such notice is deposited in first
class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice
shall be deemed given one Business Day after delivery to such
carrier. All notices shall be addressed to the party to be notified
at the address as follows, or at such other address as such party
may designate by ten days’ advance written notice to the
other party:

 

If to
the Company:

 

Visualant,
Incorporated

500
Union Street, Suite 420

Seattle, Washington
98101

Attention: Ronald
P. Erickson

Fax:
(206) 826-0451

 

 

If to
the Investors:

 

to the
addresses set forth on the signature pages hereto.

 

9.5           Expenses.
The parties hereto shall pay their own costs and expenses in
connection herewith. The Company shall reimburse the Investors upon
demand for all reasonable out-of-pocket expenses incurred by the
Investors, including without limitation reimbursement of
attorneys’ fees and disbursements, in connection with any
amendment, modification or waiver of this Agreement or the other
Transaction Documents. In the event that legal proceedings are
commenced by any party to this Agreement against another party to
this Agreement in connection with this Agreement or the other
Transaction Documents, the party or parties which do not prevail in
such proceedings shall severally, but not jointly, pay their pro
rata share of the reasonable attorneys’ fees and other
reasonable out-of-pocket costs and expenses incurred by the
prevailing party in such proceedings.

 

 

16

 

 

9.6         
Amendments and
Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and
the Required Investors. Any amendment or waiver effected in
accordance with this paragraph shall be binding upon each holder of
any Securities purchased under this Agreement at the time
outstanding, each future holder of all such Securities, and the
Company.

 

9.7           Publicity.
Except as set forth below, no public release or announcement
concerning the transactions contemplated hereby shall be issued by
the Company or the Investors without the prior consent of the
Company (in the case of a release or announcement by the Investors)
or the Investors (in the case of a release or announcement by the
Company) (which consents shall not be unreasonably withheld),
except as such release or announcement may be required by law or
the applicable rules or regulations of any securities exchange or
securities market, in which case the Company or the Investors, as
the case may be, shall allow the Investors or the Company, as
applicable, to the extent reasonably practicable in the
circumstances, reasonable time to comment on such release or
announcement in advance of such issuance. By 8:30 a.m. (New York
City time) on the day required by SEC disclosure rules following
the Closing Date, the Company shall issue a press release
disclosing the consummation of the transactions contemplated by
this Agreement. No later than the fourth trading day following the
Closing Date, the Company will file a Current Report on Form 8-K
attaching the press release described in the foregoing sentence as
well as copies of the Transaction Documents. In addition, the
Company will make such other filings and notices in the manner and
time required by the SEC or OTCQB.

 

9.8           Severability.
Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof but shall be
interpreted as if it were written so as to be enforceable to the
maximum extent permitted by applicable law, and any such
prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other
jurisdiction. To the extent permitted by applicable law, the
parties hereby waive any provision of law which renders any
provision hereof prohibited or unenforceable in any
respect.

 

9.9           Entire
Agreement. This Agreement, including the Exhibits and the
Disclosure Schedules, and the other Transaction Documents
constitute the entire agreement among the parties hereof with
respect to the subject matter hereof and thereof and supersede all
prior agreements and understandings, both oral and written, between
the parties with respect to the subject matter hereof and
thereof.

 

9.10       
Further Assurances.
The parties shall execute and deliver all such further instruments
and documents and take all such other actions as may reasonably be
required to carry out the transactions contemplated hereby and to
evidence the fulfillment of the agreements herein
contained.

 

 

17

 

 

9.11         
Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial. This Agreement shall be
governed by, and construed in accordance with, the internal laws of
the State of Nevada without regard to the choice of law principles
thereof. Each of the parties hereto irrevocably submits to the
exclusive jurisdiction of the courts of the State of New York for
the purpose of any suit, action, proceeding or judgment relating to
or arising out of this Agreement and the transactions contemplated
hereby. Service of process in connection with any such suit, action
or proceeding may be served on each party hereto anywhere in the
world by the same methods as are specified for the giving of
notices under this Agreement. Each of the parties hereto
irrevocably consents to the jurisdiction of any such court in any
such suit, action or proceeding and to the laying of venue in such
court. Each party hereto irrevocably waives any objection to the
laying of venue of any such suit, action or proceeding brought in
such courts and irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in
an inconvenient forum. EACH OF THE
PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT
COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER.

 

9.12         
Independent Nature of Investors' Obligations and Rights. The
obligations of each Investor under any Transaction Document are
several and not joint with the obligations of any other Investor,
and no Investor shall be responsible in any way for the performance
of the obligations of any other Investor under any Transaction
Document. The decision of each Investor to purchase Securities
pursuant to the Transaction Documents has been made by such
Investor independently of any other Investor. Nothing contained
herein or in any Transaction Document, and no action taken by any
Investor pursuant thereto, shall be deemed to constitute the
Investors as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Investors
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 Investor acknowledges that no other Investor has
acted as agent for such Investor in connection with making its
investment hereunder and that no Investor will be acting as agent
of such Investor in connection with monitoring its investment in
the Securities or enforcing its rights under the Transaction
Documents. Each Investor 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 Investor to
be joined as an additional party in any proceeding for such
purpose. The Company acknowledges that each of the Investors has
been provided with the same Transaction Documents for the purpose
of closing a transaction with multiple Investors and not because it
was required or requested to do so by any Investor.

 

[signature
page follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 

 

IN
WITNESS WHEREOF, the parties have executed this Agreement or caused
their duly authorized officers to execute this Agreement as of the
date first above written.

 

 

	

The
Company:

	
VISUALANT,
INCORPORATED

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	
 

	

 

	

 

	

Name:
Ronald P. Erickson 

	

 

	

 

	

Title:
President and Chief Executive Officer  

	

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19

 

 

 

	The
Investor:
	
_____________________________________

	
 

	
 

	
 

	
 

	
 

	By:__________________________________
	
 

	Name:
_______________________________
	
 

	Title:
________________________________
	
 

	
 

	

Aggregate Purchase
Price: $ ______________ 

	

Number
of Shares: ________________ 

	

Number
of Series F Warrants: 

	
 

	
 

	
 

	
 

	Address for
Notice:	
 

	
 

	
_____________________________________
	
 

	
_____________________________________
	
 

	
_____________________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

20Blueprint

EXHIBIT
10.2

 

AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

 

This
Amended and Restated Registration Rights Agreement (the
“Agreement”) is made and entered into as of this ___
day of ______________, 2017 by and among Visualant, Incorporated, a
Nevada corporation (the “Company”), and the
“Holder” named in that certain Preferred Stock and
Warrant Purchase Agreement by and between the Company and the
Holder (the “Subscription Agreement”). Capitalized
terms used herein have the respective meanings ascribed thereto in
the Subscription Agreement unless otherwise defined herein.
This Agreement amends, restates
and supersedes the original Registration Rights Agreement dated as
of November 10, 2016.

 

The
parties hereby agree as follows:

 

1.

Certain
Definitions.

 

As used
in this Agreement, the following terms shall have the following
meanings:

 

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

 

“Investors” means the
Investors identified in the Subscription Agreement and any
Affiliate or permitted transferee of any Investor who is a
subsequent holder of any Warrants or Registrable
Securities.

 

“Prospectus” means (i) the
prospectus included in any Registration Statement, as amended or
supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities
covered by such Registration Statement and by all other amendments
and supplements to the prospectus, including post-effective
amendments and all material incorporated by reference in such
prospectus, and (ii) any “free writing prospectus” as
defined in Rule 405 under the 1933 Act.

 

“Register,”
“registered” and
“registration” refer to a
registration made by preparing and filing a Registration Statement
or similar document in compliance with the 1933 Act (as defined
below), and the declaration or ordering of effectiveness of such
Registration Statement or document.

 

“Registrable Securities”
means (i) the Conversion Shares, (ii) the Warrant Shares and (iii)
any other securities issued or issuable with respect to or in
exchange for any Registrable Securities, whether by merger, charter
amendment or otherwise; provided, that, a security shall cease to
be an Registrable Security upon sale pursuant to a Registration
Statement or Rule 144 under the 1933 Act.

 

“Registration Statement”
means any registration statement of the Company filed under the
1933 Act that covers the resale of any of the Registrable
Securities pursuant to the provisions of this Agreement, amendments
and supplements to such Registration Statement, including
post-effective amendments, all exhibits and all material
incorporated by reference in such Registration
Statement.

 

 

1

 

 

“Required Investors” means
the Investors holding at least 85% of the Registrable
Securities.

 

“SEC” means the U.S.
Securities and Exchange Commission.

 

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

 

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

 

2.

Registration.

 

(a) Registration
Statements.

 

(i) Initial
Registration Statement. Unless
extended by written consent of the Required Investors, on or before
May 31, 2017 (the “Filing Deadline”), the Company shall
prepare and file with the SEC one Registration Statement on Form
S-1, covering the resale or other disposition of the Registrable
Securities. No Investor shall be named as an
“underwriter” in the Registration Statement without the
Investor’s prior written consent. Such Registration Statement
also shall cover pursuant to Rule 416 such indeterminate number of
additional shares of Common Stock due to an increase in the number
of Warrant Shares resulting from changes in the Exercise Price
pursuant to the terms of the Warrants. Such Registration Statement
shall not include any shares of Common Stock or other securities
for the account of any other holder without the prior written
consent of the Required Investors. The Registration Statement (and
each amendment or supplement thereto, and each request for
acceleration of effectiveness thereof) shall be provided in
accordance with Section 3(c) to the Investors and their counsel
prior to its filing or other submission. If a Registration
Statement covering the Registrable Securities is not filed with the
SEC on or prior to the Filing Deadline, the Company will make pro
rata payments to each Investor, as liquidated damages and not as a
penalty, in an amount equal to 1.5% of the aggregate amount
invested by such Investor pursuant to the Subscription Agreement
for each 30-day period or pro rata for any portion thereof
following the Filing Deadline for which no Registration Statement
is filed with respect to the Registrable Securities. Such payments
shall constitute the Investors’ exclusive monetary remedy for
such events, but shall not affect the right of the Investors to
seek injunctive relief. Such payments shall be made to each
Investor in cash no later than three (3) Business Days after the
end of each 30-day period.

 

 

2

 

 

(ii) S-3
Qualification. Promptly
following the date (the “Qualification Date”) upon
which the Company becomes eligible to use a registration statement
on Form S-3 to register the Registrable Securities for resale or
other disposition by the Investors, but in no event more than
thirty (30) days after the Qualification Date (the
“Qualification Deadline”), the Company shall file a
registration statement on Form S-3 covering the Registrable
Securities (or a post-effective amendment on Form S-3 to the
registration statement on Form S-1) (a “Shelf Registration
Statement”) and shall use commercially reasonable efforts to
cause such Shelf Registration Statement to be declared effective as
promptly as practicable thereafter. If a Shelf Registration
Statement covering the Registrable Securities is not filed with the
SEC on or prior to the Qualification Deadline, the Company will
make pro rata payments to each Investor, as liquidated damages and
not as a penalty, in an amount equal to 1.5% of the aggregate
amount invested by such Investor pursuant to the Subscription
Agreement attributable to those Registrable Securities that remain
unsold at that time for each 30-day period or pro rata for any
portion thereof following the date by which such Shelf Registration
Statement should have been filed for which no such Shelf
Registration Statement is filed with respect to the Registrable
Securities. Such payments shall constitute the Investors’
exclusive monetary remedy for such events, but shall not affect the
right of the Investors to seek injunctive relief. Such payments
shall be made to each Investor in cash no later than three (3)
Business Days after the end of each 30-day
period.

 

(b) Expenses.
The Company will pay all expenses associated with effecting the
registration of the Registrable Securities, including filing and
printing fees, the Company’s counsel and accounting fees and
expenses, costs associated with clearing the Registrable Securities
for sale under applicable state securities laws, listing fees, and
fees and expenses of one counsel to the Investors, and the
Investors’ reasonable expenses in connection with the
registration, but excluding discounts, commissions, fees of
underwriters, selling brokers, dealer managers or similar
securities industry professionals with respect to the Registrable
Securities being sold.

 

(c) Effectiveness.

 

(i) The
Company shall use commercially reasonable efforts to have each
Registration Statement declared effective as soon as practicable.
The Company shall notify the Investors by facsimile or e-mail as
promptly as practicable, and in any event, within twenty-four (24)
hours, after any Registration Statement is declared effective and
shall simultaneously provide the Investors with copies of any
related Prospectus to be used in connection with the sale or other
disposition of the securities covered thereby. If (A)(x) a
Registration Statement covering the Registrable Securities is not
declared effective by the SEC prior to the earlier of (i) five (5)
Business Days after the SEC shall have informed the Company that no
review of such Registration Statement will be made or that the SEC
has no further comments on the Registration Statement or (ii) the
90th
day after the Closing Date (the
120th
day if the SEC reviews such
Registration Statement), or (y) a Shelf Registration Statement is
not declared effective by the SEC prior to the earlier of (i) five
(5) Business Days after the SEC shall have informed the Company
that no review of the Registration Statement will be made or that
the SEC has no further comments on the Registration Statement or
(ii) the 90th
day after the Qualification Deadline
(the 120th
day if the SEC reviews such
Registration Statement), or (B) after a Registration Statement has
been declared effective by the SEC, sales cannot be made pursuant
to such Registration Statement for any reason (including without
limitation by reason of a stop order, or the Company’s
failure to update the Registration Statement), but excluding any
Allowed Delay (as defined below) or the inability of any Investor
to sell the Registrable Securities covered thereby due to market
conditions, then the Company will make pro rata payments to each
Investor, as liquidated damages and not as a penalty, in an amount
equal to 1.5% of the aggregate amount invested by such Investor
pursuant to the Subscription Agreement for each 30-day period or
pro rata for any portion thereof following the date by which such
Registration Statement should have been effective (the
“Blackout Period”). Such payments shall constitute the
Investors’ exclusive monetary remedy for such events, but
shall not affect the right of the Investors to seek injunctive
relief. The amounts payable as liquidated damages pursuant to this
paragraph shall be paid monthly within three (3) Business Days of
the last day of each month following the commencement of the
Blackout Period until the termination of the Blackout Period. Such
payments shall be made to each Investor in
cash.

 

 

3

 

 

(ii) For
not more than twenty (20) consecutive days or for a total of not
more than forty-five (45) days in any twelve (12) month period, the
Company may suspend the use of any Prospectus included in any
Registration Statement contemplated by this Section in the event
that the Company determines in good faith that such suspension is
necessary to (A) delay the disclosure of material non-public
information concerning the Company, the disclosure of which at the
time is not, in the good faith opinion of the Company, in the best
interests of the Company or (B) amend or supplement the affected
Registration Statement or the related Prospectus so that such
Registration Statement or Prospectus shall not include an untrue
statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements
therein, in the case of the Prospectus in light of the
circumstances under which they were made, not misleading (an
“Allowed Delay”); provided, that the Company shall
promptly (a) notify each Investor in writing of the commencement of
an Allowed Delay, but shall not (without the prior written consent
of an Investor) disclose to such Investor any material non-public
information giving rise to an Allowed Delay, (b) advise the
Investors in writing to cease all sales under the Registration
Statement until the end of the Allowed Delay and (c) use
commercially reasonable efforts to terminate an Allowed Delay as
promptly as practicable.

 

(d) Rule
415; Cutback If at any time the
SEC takes the position that the offering of some or all of the
Registrable Securities in a Registration Statement is not eligible
to be made on a delayed or continuous basis under the provisions of
Rule 415 under the 1933 Act or requires any Investor to be named as
an “underwriter”, the Company shall use its best
efforts to persuade the SEC that the offering contemplated by the
Registration Statement is a valid secondary offering and not an
offering “by or on behalf of the issuer” as defined in
Rule 415 and that none of the Investors is an
“underwriter”. The Investors shall have the right to
participate or have their counsel participate in any meetings or
discussions with the SEC regarding the SEC’s position and to
comment or have their counsel comment on any written submission
made to the SEC with respect thereto. No such written submission
shall be made to the SEC to which the Investors’ counsel
reasonably objects. In the event that, despite the Company’s
best efforts and compliance with the terms of this Section 2(d),
the SEC refuses to alter its position, the Company shall (i) remove
from the Registration Statement such portion of the Registrable
Securities (the “Cut Back Shares”) and/or (ii) agree to
such restrictions and limitations on the registration and resale of
the Registrable Securities as the SEC may require to assure the
Company’s compliance with the requirements of Rule 415
(collectively, the “SEC Restrictions”); provided,
however, that the Company shall not agree to name any Investor as
an “underwriter” in such Registration Statement without
the prior written consent of such Investor. Any cut-back imposed on
the Investors pursuant to this Section 2(d) shall be allocated
among the Investors on a pro rata basis and shall be applied first
to any Warrant Shares, unless the SEC Restrictions otherwise
require or provide or the Investors otherwise agree. No liquidated
damages shall accrue as to any Cut Back Shares until such date as
the Company is able to effect the registration of such Cut Back
Shares in accordance with any SEC Restrictions (such date, the
“Restriction Termination Date” of such Cut Back
Shares). From and after the Restriction Termination Date applicable
to any Cut Back Shares, all of the provisions of this Section 2
(including the liquidated damages provisions) shall again be
applicable to such Cut Back Shares; provided, however, that (i) the
date by which the Company is required to file the Registration
Statement including such Cut Back Shares (including any
Qualification Deadline) shall be ten (10) Business Days after such
Restriction Termination Date, and (ii) the date by which the
Company is required to obtain effectiveness with respect to such
Cut Back Shares under Section 2(c) shall be the
90th
day immediately after the Restriction
Termination Date.

 

 

4

 

 

(e) Right
to Piggyback Registration.

 

(i) If
at any time following the date of this Agreement that any
Registrable Securities remain outstanding (A) there is not one or
more effective Registration Statements covering all of the
Registrable Securities and (B) the Company proposes for any reason
to register any shares of Common Stock under the 1933 Act (other
than pursuant to a registration statement on Form S-4 or Form S-8
(or a similar or successor form)) with respect to an offering of
Common Stock by the Company for its own account or for the account
of any of its stockholders, it shall at each such time promptly
give written notice to the holders of the Registrable Securities of
its intention to do so (but in no event less than thirty (30) days
before the anticipated filing date) and, to the extent permitted
under the provisions of Rule 415 under the 1933 Act, and subject to
the cutback provisions of Section 2(d), include in such
registration all Registrable Securities with respect to which the
Company has received written requests for inclusion therein within
fifteen (15) days after receipt of the Company’s notice. Such
notice shall offer the holders of the Registrable Securities the
opportunity to register such number of shares of Registrable
Securities as each such holder may request and shall indicate the
intended method of distribution of such Registrable
Securities.

 

(ii) Notwithstanding
the foregoing, (A) if such registration involves an underwritten
public offering, the Investors must sell their Registrable
Securities to, if applicable, the underwriter(s) at the same price
and subject to the same underwriting discounts and commissions that
apply to the other securities sold in such offering (it being
acknowledged that the Company shall be responsible for other
expenses as set forth in Section 2(b)) and subject to the Investors
entering into customary underwriting documentation for selling
stockholders in an underwritten public offering, and (B) if, at any
time after giving written notice of its intention to register any
Registrable Securities pursuant to Section 2(e)(i) and prior to the
effective date of the registration statement filed in connection
with such registration, the Company shall determine for any reason
not to cause such registration statement to become effective under
the 1933 Act, the Company shall deliver written notice to the
Investors and, thereupon, shall be relieved of its obligation to
register any Registrable Securities in connection with such
registration; provided, however, that nothing contained in this
Section 2(e)(ii) shall limit the Company’s other liabilities
and/or obligations under this Agreement, including, without
limitation, the obligation to pay liquidated damages under Sections
2(a), (c) or (d).

 

3.        
Company
Obligations. The Company will
use commercially reasonable efforts to effect the registration of
the Registrable Securities in accordance with the terms hereof, and
pursuant thereto the Company will, as expeditiously as
possible:

 

(a) use
commercially reasonable efforts to cause such Registration
Statement to become effective and to remain continuously effective
for a period that will terminate upon the date on which all
Registrable Securities covered by such Registration Statement as
amended from time to time, have been sold.

 

 

5

 

 

(b) prepare
and file with the SEC such amendments and post-effective amendments
to the Registration Statement and the Prospectus as may be
necessary to keep the Registration Statement effective for the
Effectiveness Period and to comply with the provisions of the 1933
Act and the 1934 Act with respect to the distribution of all of the
Registrable Securities covered thereby;

 

(c) provide
copies to and permit counsel designated by the Investors to review
each Registration Statement and all amendments and supplements
thereto no fewer than seven (7) days prior to their filing with the
SEC and not file any document to which such counsel reasonably
objects;

 

(d) furnish
to the Investors and their legal counsel (i) promptly after the
same is prepared and publicly distributed, filed with the SEC, or
received by the Company (but not later than two (2) Business Days
after the filing date, receipt date or sending date, as the case
may be) one (1) copy of any Registration Statement and any
amendment thereto, each preliminary prospectus and Prospectus and
each amendment or supplement thereto, and each letter written by or
on behalf of the Company to the SEC or the staff of the SEC, and
each item of correspondence from the SEC or the staff of the SEC,
in each case relating to such Registration Statement (other than
any portion of any thereof which contains information for which the
Company has sought confidential treatment), and (ii) such number of
copies of a Prospectus, including a preliminary prospectus, and all
amendments and supplements thereto and such other documents as each
Investor may reasonably request in order to facilitate the
disposition of the Registrable Securities owned by such Investor
that are covered by the related Registration
Statement;

 

(e) use
commercially reasonable efforts to (i) prevent the issuance of any
stop order or other suspension of effectiveness and, (ii) if such
order is issued, obtain the withdrawal of any such order at the
earliest possible moment;

 

(f) prior
to any public offering of Registrable Securities, use commercially
reasonable efforts to register or qualify or cooperate with the
Investors and their counsel in connection with the registration or
qualification of such Registrable Securities for offer and sale
under the securities or blue sky laws of such jurisdictions
requested by the Investors and do any and all other commercially
reasonable acts or things necessary or advisable to enable the
distribution in such jurisdictions of the Registrable Securities
covered by the Registration Statement; provided, however, that the
Company shall not be required in connection therewith or as a
condition thereto to (i) qualify to do business in any jurisdiction
where it would not otherwise be required to qualify but for this
Section 3(f), (ii) subject itself to general taxation in any
jurisdiction where it would not otherwise be so subject but for
this Section 3(f), or (iii) file a general consent to service of
process in any such jurisdiction;

 

(g) use
commercially reasonable efforts to cause all Registrable Securities
covered by a Registration Statement to be listed on each securities
exchange, interdealer quotation system or other market on which
similar securities issued by the Company are then
listed;

 

 

6

 

 

(h) immediately
notify the Investors, at any time prior to the end of the
Effectiveness Period, upon discovery that, or upon the happening of
any event as a result of which, the Prospectus includes an untrue
statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing,
and promptly prepare, file with the SEC and furnish to such holder
a supplement to or an amendment of such Prospectus as may be
necessary so that such Prospectus shall not include an untrue
statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then
existing;

 

(i) otherwise
use commercially reasonable efforts to comply with all applicable
rules and regulations of the SEC under the 1933 Act and the 1934
Act, including, without limitation, Rule 172 under the 1933 Act,
file any final Prospectus, including any supplement or amendment
thereof, with the SEC pursuant to Rule 424 under the 1933 Act,
promptly inform the Investors in writing if, at any time during the
Effectiveness Period, the Company does not satisfy the conditions
specified in Rule 172 and, as a result thereof, the Investors are
required to deliver a Prospectus in connection with any disposition
of Registrable Securities and take such other actions as may be
reasonably necessary to facilitate the registration of the
Registrable Securities hereunder; and make available to its
security holders, as soon as reasonably practicable, but not later
than the Availability Date (as defined below), an earnings
statement covering a period of at least twelve (12) months,
beginning after the effective date of each Registration Statement,
which earnings statement shall satisfy the provisions of Section
11(a) of the 1933 Act, including Rule 158 promulgated thereunder
(for the purpose of this subsection 3(i), “Availability
Date” means the 45th day following the end of the fourth
fiscal quarter that includes the effective date of such
Registration Statement, except that, if such fourth fiscal quarter
is the last quarter of the Company’s fiscal year,
“Availability Date” means the 90th day after the end of
such fourth fiscal quarter); and

 

(j) With
a view to making available to the Investors the benefits of Rule
144 (or its successor rule) and any other rule or regulation of the
SEC that may at any time permit the Investors to sell shares of
Common Stock to the public without registration, the Company
covenants and agrees to: (i) make and keep public information
available, as those terms are understood and defined in Rule 144,
until the earlier of (A) six months after such date as all of the
Registrable Securities may be sold without restriction by the
holders thereof pursuant to Rule 144 or any other rule of similar
effect or (B) such date as all of the Registrable Securities shall
have been resold; (ii) file with the SEC in a timely manner all
reports and other documents required of the Company under the 1934
Act; and (iii) furnish to each Investor upon request, as long as
such Investor owns any Registrable Securities, (A) a written
statement by the Company that it has complied with the reporting
requirements of the 1934 Act, (B) a copy of the Company’s
most recent Annual Report on Form 10-K or Quarterly Report on Form
10-Q, and (C) such other information as may be reasonably requested
in order to avail such Investor of any rule or regulation of the
SEC that permits the selling of any such Registrable Securities
without registration.

 

 

7

 

 

4.   
      Due Diligence Review;
Information. The Company shall
make available, during normal business hours, for inspection and
review by the Investors, advisors to and representatives of the
Investors (who may or may not be affiliated with the Investors and
who are reasonably acceptable to the Company), all financial and
other records, all SEC Filings (as defined in the Subscription
Agreement) and other filings with the SEC, and all other corporate
documents and properties of the Company as may be reasonably
necessary for the purpose of such review, and cause the
Company’s officers, directors and employees, within a
reasonable time period, to supply all such information reasonably
requested by the Investors or any such representative, advisor or
underwriter in connection with such Registration Statement
(including, without limitation, in response to all questions and
other inquiries reasonably made or submitted by any of them), prior
to and from time to time after the filing and effectiveness of the
Registration Statement for the sole purpose of enabling the
Investors and such representatives, advisors and underwriters and
their respective accountants and attorneys to conduct initial and
ongoing due diligence with respect to the Company and the accuracy
of such Registration Statement.

 

The
Company shall not disclose material nonpublic information to the
Investors, or to advisors to or representatives of the Investors,
unless prior to disclosure of such information the Company
identifies such information as being material nonpublic information
and provides the Investors, such advisors and representatives with
the opportunity to accept or refuse to accept such material
nonpublic information for review and any Investor wishing to obtain
such information enters into an appropriate confidentiality
agreement with the Company with respect thereto.

 

5.

Obligations of the
Investors.

 

(a) Each
Investor shall furnish in writing to the Company such information
regarding itself, the Registrable Securities held by it and the
intended method of disposition of the Registrable Securities held
by it, as shall be reasonably required to effect the registration
of such Registrable Securities and shall execute such documents in
connection with such registration as the Company may reasonably
request. At least five (5) Business Days prior to the first
anticipated filing date of any Registration Statement, the Company
shall notify each Investor of the information the Company requires
from such Investor if such Investor elects to have any of the
Registrable Securities included in the Registration Statement. An
Investor shall provide such information to the Company at least two
(2) Business Days prior to the first anticipated filing date of
such Registration Statement if such Investor elects to have any of
the Registrable Securities included in the Registration
Statement.

 

(b) Each
Investor, by its acceptance of the Registrable Securities agrees to
cooperate with the Company as reasonably requested by the Company
in connection with the preparation and filing of a Registration
Statement hereunder, unless such Investor has notified the Company
in writing of its election to exclude all of its Registrable
Securities from such Registration Statement.

 

(c) Each
Investor agrees that, upon receipt of any notice from the Company
of either (i) the commencement of an Allowed Delay pursuant to
Section 2(c)(ii) or (ii) the happening of an event pursuant to
Section 3(h) hereof, such Investor will immediately discontinue
disposition of Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities, until the Investor
is advised by the Company that such dispositions may again be
made.

 

 

8

 

 

6.

Indemnification.

 

(a) Indemnification
by the Company. The Company
will indemnify and hold harmless each Investor and its officers,
directors, members, employees and agents, successors and assigns,
and each other person, if any, who controls such Investor within
the meaning of the 1933 Act, and Garden State Securities, Inc.,
against any losses, claims, damages or liabilities, joint or
several, to which they may become subject under the 1933 Act or
otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon: (i)
any untrue statement or alleged untrue statement or omission or
alleged omission of any material fact contained in any Registration
Statement, any preliminary Prospectus or final Prospectus, or any
amendment or supplement thereof; (ii) any blue sky application or
other document executed by the Company specifically for that
purpose or based upon written information furnished by the Company
filed in any state or other jurisdiction in order to qualify any or
all of the Registrable Securities under the securities laws thereof
(any such application, document or information herein called a
“Blue Sky Application”); (iii) the omission or alleged
omission to state in a Blue Sky Application a material fact
required to be stated therein or necessary to make the statements
therein not misleading; (iv) any violation by the Company or its
agents of any rule or regulation promulgated under the 1933 Act
applicable to the Company or its agents and relating to action or
inaction required of the Company in connection with such
registration; or (v) any failure to register or qualify the
Registrable Securities included in any such Registration Statement
in any state where the Company or its agents has affirmatively
undertaken or agreed in writing that the Company will undertake
such registration or qualification on an Investor’s behalf
and will reimburse such Investor, and each such officer, director
or member and each such controlling person for any legal or other
expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability
or action; provided,
however,
that the Company will not be liable in any such case if and to the
extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission so made in conformity with information
furnished by such Investor or any such controlling person in
writing specifically for use in such Registration Statement or
Prospectus.

 

(b) Indemnification
by the Investors. Each Investor
agrees, severally but not jointly, to indemnify and hold harmless,
to the fullest extent permitted by law, the Company, Garden State
Securities, Inc., its directors, officers, employees, stockholders
and each person who controls the Company (within the meaning of the
1933 Act) against any losses, claims, damages, liabilities and
expense (including reasonable attorney fees) resulting from any
untrue statement of a material fact or any omission of a material
fact required to be stated in the Registration Statement or
Prospectus or preliminary Prospectus or amendment or supplement
thereto or necessary to make the statements therein not misleading,
to the extent, but only to the extent that such untrue statement or
omission is contained in any information furnished in writing by
such Investor to the Company specifically for inclusion in such
Registration Statement or Prospectus or amendment or supplement
thereto. In no event shall the liability of an Investor be greater
in amount than the dollar amount of the proceeds (net of all
expenses paid by such Investor in connection with any claim
relating to this Section 6 and the amount of any damages such
Investor has otherwise been required to pay by reason of such
untrue statement or omission) received by such Investor upon the
sale of the Registrable Securities included in the Registration
Statement giving rise to such indemnification
obligation.

 

 

9

 

 

(c) Conduct
of Indemnification Proceedings.
Any person entitled to indemnification hereunder shall (i) give
prompt notice to the indemnifying party of any claim with respect
to which it seeks indemnification and (ii) permit such indemnifying
party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided
that any person entitled to
indemnification hereunder shall have the right to employ separate
counsel and to participate in the defense of such claim, but the
fees and expenses of such counsel shall be at the expense of such
person unless (a) the indemnifying party has agreed to pay such
fees or expenses, or (b) the indemnifying party shall have failed
to assume the defense of such claim and employ counsel reasonably
satisfactory to such person or (c) in the reasonable judgment of
any such person, based upon written advice of its counsel, a
conflict of interest exists between such person and the
indemnifying party with respect to such claims (in which case, if
the person notifies the indemnifying party in writing that such
person elects to employ separate counsel at the expense of the
indemnifying party, the indemnifying party shall not have the right
to assume the defense of such claim on behalf of such person);
and provided,
further,
that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its
obligations hereunder, except to the extent that such failure to
give notice shall materially adversely affect the indemnifying
party in the defense of any such claim or litigation. It is
understood that the indemnifying party shall not, in connection
with any proceeding in the same jurisdiction, be liable for fees or
expenses of more than one separate firm of attorneys at any time
for all such indemnified parties. No indemnifying party will,
except with the consent of the indemnified party, consent to entry
of any judgment or enter into any settlement that does not include
as an unconditional term thereof the giving by the claimant or
plaintiff to such indemnified party of a release from all liability
in respect of such claim or litigation.

 

(d) Contribution.
If for any reason the indemnification provided for in the preceding
paragraphs (a) and (b) is unavailable to an indemnified party or
insufficient to hold it harmless, other than as expressly specified
therein, then the indemnifying party shall contribute to the amount
paid or payable by the indemnified party as a result of such loss,
claim, damage or liability in such proportion as is appropriate to
reflect the relative fault of the indemnified party and the
indemnifying party, as well as any other relevant equitable
considerations. No person guilty of fraudulent misrepresentation
within the meaning of Section 11(f) of the 1933 Act shall be
entitled to contribution from any person not guilty of such
fraudulent misrepresentation. In no event shall the contribution
obligation of a holder of Registrable Securities be greater in
amount than the dollar amount of the proceeds (net of all expenses
paid by such holder in connection with any claim relating to this
Section 6 and the amount of any damages such holder has otherwise
been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission) received by it upon the
sale of the Registrable Securities giving rise to such contribution
obligation.

 

7.

Miscellaneous.

 

(a) Amendments
and Waivers. This Agreement may
be amended only by a writing signed by the Company and the Required
Investors. The Company may take any action herein prohibited, or
omit to perform any act herein required to be performed by it, only
if the Company shall have obtained the written consent to such
amendment, action or omission to act, of the Required
Investors.

 

 

10

 

 

(b) Notices.
All notices and other communications provided for or permitted
hereunder shall be made as set forth in Section 9.4 of the
Subscription Agreement.

 

(c) Assignments
and Transfers by Investors. The
provisions of this Agreement shall be binding upon and inure to the
benefit of the Investors and their respective successors and
assigns. An Investor may transfer or assign, in whole or from time
to time in part, to one or more persons its rights hereunder in
connection with the transfer of Registrable Securities by such
Investor to such person, provided that such Investor complies with
all laws applicable thereto and provides written notice of
assignment to the Company promptly after such assignment is
effected.

 

(d) Assignments
and Transfers by the Company.
This Agreement may not be assigned by the Company (whether by
operation of law or otherwise) without the prior written consent of
the Required Investors, provided, however, that in the event that
the Company is a party to a merger, consolidation, share exchange
or similar business combination transaction in which the Common
Stock is converted into the equity securities of another Person,
from and after the effective time of such transaction, such Person
shall, by virtue of such transaction, be deemed to have assumed the
obligations of the Company hereunder, the term
“Company” shall be deemed to refer to such Person and
the term “Registrable Securities” shall be deemed to
include the securities received by the Investors in connection with
such transaction unless such securities are otherwise freely
tradable by the Investors after giving effect to such
transaction.

 

(e) Benefits
of the Agreement. The terms and
conditions of this Agreement shall inure to the benefit of and be
binding upon the respective permitted successors and assigns of the
parties. 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.

 

(f) Counterparts;
Faxes. This Agreement may be
executed in two or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the
same instrument. This Agreement may also be executed via facsimile,
which shall be deemed an original.

 

(g) Titles
and Subtitles. The titles and
subtitles used in this Agreement are used for convenience only and
are not to be considered in construing or interpreting this
Agreement.

 

(h) Severability.
Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof but shall be
interpreted as if it were written so as to be enforceable to the
maximum extent permitted by applicable law, and any such
prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other
jurisdiction. To the extent permitted by applicable law, the
parties hereby waive any provision of law which renders any
provisions hereof prohibited or unenforceable in any
respect.

 

(i) Further
Assurances. The parties shall
execute and deliver all such further instruments and documents and
take all such other actions as may reasonably be required to carry
out the transactions contemplated hereby and to evidence the
fulfillment of the agreements herein contained.

 

 

11

 

 

(j) Entire
Agreement. This Agreement is
intended by the parties as a final expression of their agreement
and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the
subject matter contained herein. This Agreement supersedes all
prior agreements and understandings between the parties with
respect to such subject matter.

 

(k) Governing
Law; Consent to Jurisdiction; Waiver of Jury
Trial. This Agreement shall be
governed by, and construed in accordance with, the internal laws of
the State of New York without regard to the choice of law
principles thereof. Each of the parties hereto irrevocably submits
to the exclusive jurisdiction of the courts of the State of New
York located in New York County and the United States District
Court for the Southern District of New York for the purpose of any
suit, action, proceeding or judgment relating to or arising out of
this Agreement and the transactions contemplated hereby. Service of
process in connection with any such suit, action or proceeding may
be served on each party hereto anywhere in the world by the same
methods as are specified for the giving of notices under this
Agreement. Each of the parties hereto irrevocably consents to the
jurisdiction of any such court in any such suit, action or
proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of
any such suit, action or proceeding brought in such courts and
irrevocably waives any claim that any such suit, action or
proceeding brought in any such court has been brought in an
inconvenient forum. EACH OF THE PARTIES HERETO
WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH
RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN
CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 

 

IN
WITNESS WHEREOF, the parties have executed this Amended and
Restated Registration Rights Agreement or caused their duly
authorized officers to execute this Agreement as of the date first
above written.

 

 

	
The
Company:	
VISUALANT,
INCORPORATED

	

 

	
 	
 

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	
 

	

 

	

 

	

Name:
Ronald P. Erickson 

	

 

	

 

	

Title:
President and Chief Executive Officer 

	

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

	The
Investors:	[___________________________]
	
 

	
 

	
 

	
 

	
 

	

By:
_______________________________

	
 

	
Name:
[_____________________]

	
 

	
 

	
 

	
 

	
Address for
Notice: 

	[___________________________]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}]]