Document:

EXHIBIT
10.2

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (the “Agreement”), dated as of April 28, 2017, by and between TEMPUS
APPLIED SOLUTIONS HOLDINGS, INC., a Delaware corporation (the “Company”), and SANTIAGO BUSINESS CO.
INTERNATIONAL LTD. (the “Purchaser”).

 

WITNESSETH:

 

WHEREAS,
the Company and the Purchaser have entered into a Note Purchase Agreement, dated as of April 28, 2017, (the “Purchase
Agreement”), pursuant to which, among other things, the Purchaser has agreed to purchase the Company’s 10%
Senior Secured Convertible Note due April 28, 2018 (the “Note”), which is convertible into Registrable
Securities; and

 

WHEREAS,
the execution of this Agreement by the Company and its delivery to the Purchaser a condition to the Purchaser’s obligations
under the Purchase Agreement,

 

NOW
THEREFORE, in consideration of the premises and the covenants and agreements set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which the parties hereto acknowledge, the parties agree as follows:

 

ARTICLE
1. DEFINITIONS

 

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

 

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

 

“Closing
Date” shall have the meaning set forth in the Purchase Agreement.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the Company’s Common Stock, par value $0.0001 per share.

 

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

 

“Filing
Date” means the date on which the Registration Statement is initially filed.

 

“Holder”
shall have the meaning set forth in the Note.

 

“Person”
means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

    	 		 

     

    

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering
of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to
the Prospectus, including post-effective amendments, and all material incorporated by reference in such Prospectus.

 

“Registrable
Securities” means the number of shares of Common Stock issuable to the Holder upon conversion of the Note; provided,
that any such securities shall cease to constitute “Registrable Securities” upon the earliest to occur of: (A) the
date on which such securities are disposed of pursuant to the Registration Statement; (B) the date on which such securities become
eligible for sale under Rule 144 (or any successor rule then in effect) promulgated under the Securities Act, without restriction
thereunder and restrictive legends have been removed from all certificates representing the applicable Registrable Securities;
and (C) the date on which such securities cease to be outstanding.

 

“Registration
Statement” means any registration statement contemplated by this Agreement, including (in each case) the Prospectus,
amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference in such registration statement.

 

“Rule
144” means Rule 144 promulgated by the Commission under the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule
158” means Rule 158 promulgated by the Commission under the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

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

 

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

 

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

 

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ARTICLE
2. RESALE REGISTRATION STATEMENT

 

2.1          Registration Statement. 
Within 30 days after the Closing Date and subject to Section 2.3, the Company shall prepare and file with the Commission the Registration
Statement, which shall be a “resale” registration statement providing for the resale of the Registrable Securities
pursuant to an offering to be made on a continuous basis under Rule 415.  The Registration Statement shall cover, to the
extent allowable under the Securities Act and the rules promulgated thereunder, such indeterminate number of additional shares
of Common Stock resulting from stock splits, stock dividends or similar transactions of and/or from the Registrable Securities. 
The Registration Statement may include only the Registrable Securities.  The Company shall use its reasonable best efforts
to cause the Registration Statement to be declared effective under the Securities Act and to keep the Registration Statement continuously
effective under the Securities Act until the earlier of (x) the date when all Registrable Securities covered by such Registration
Statement have been sold or (y) the date on which all Registrable Securities then held by the Purchaser, or which may be
acquired by the Purchaser upon conversion of the Note, may be sold without restriction pursuant to Rule 144, as determined by
counsel satisfactory to the Company in a written opinion addressed to the Company and its transfer agent.

 

2.2          Certain
Matters.  In the event that, due to limits imposed by the Commission, the Company is unable on the Registration Statement
to register for resale under Rule 415 of Regulation C under the Securities Act all of the Registrable Securities that it has agreed
to file pursuant to the first sentence of Section 2.1, the Company shall include in the Registration Statement, which may be a
subsequent Registration Statement if the Company is required, or determines that it is desirable, to withdraw the original Registration
Statement and file a new Registration Statement in order to rely on Rule 415 with respect to the full such amount of the Registrable
Securities permitted by the Commission.

 

2.3          Blackout
Period.  The Company may postpone the filing or effectiveness of any Registration Statement (or amendment or supplement
thereto) or suspend the use or effectiveness of any Registration Statement (and in each case suspend any other related action
otherwise contemplated hereunder) for a reasonable “blackout period” if the board of directors of the Company determines
in good faith that such registration or the sale by the Purchaser of Registrable Securities under such Registration Statement
at such time (i) would adversely affect a pending or proposed significant corporate event, or (ii) would require the disclosure
of material non-public information the disclosure of which at such time would, in the good faith judgment of the board of directors
of the Company, be materially adverse to the interests of the Company; provided that the filing or effectiveness of a Registration
Statement (or amendment or supplement thereto) by the Company may not be postponed and the use or effectiveness of any Registration
Statement may not be suspended (A) in the case of clause (i) above, for more than ten days after the abandonment or consummation
of any of the pending or proposed significant corporate event, proposed financing or the negotiations, discussions or pending
proposals with respect thereto; (B) in the case of clause (ii) above, until the earlier to occur of the filing by the Company
of its next succeeding Form 10-K or Form 10-Q or the date upon which such information is otherwise publicly disclosed by the Company;
or (C) in any event, in the case of either clause (i) or (ii) above, for more than 30 days after the date of the determination
of the board of directors of the Company; provided that the Company may not postpone the filing or effectiveness of a Registration
Statement (or amendment or supplement thereto) or suspend the use or effectiveness of any Registration Statement for more than
an aggregate of 30 days in any 365-day period.  In addition to the foregoing, the Company shall have the right to suspend
the Purchaser’s ability to use a Prospectus in connection with non-underwritten sales off of a Registration Statement during
each of its regular quarterly blackout periods applicable to directors and senior officers under the Company’s policies
in existence from time to time.  The Company shall not be required to effectuate an underwritten offering (during such a
regular quarterly blackout period or otherwise) to the extent the Company reasonably concludes, after consultation in good faith
with the Purchaser, that the Company cannot provide adequate, timely disclosure or satisfy other underwriting conditions in connection
with such offering without undue burden.

 

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2.4          Demand
Rights for Shelf Takedowns.  Subject to Sections 2.3 and 8.4, upon the written demand of the Purchaser, the Company
will facilitate in the manner described in this Agreement a “takedown” of Registerable Securities off of the Registration
Statement.

 

ARTICLE
3. NOTICES AND OTHER MATTERS

 

3.1          Notifications
Regarding Request for Takedown.  In order for the Purchaser to initiate a shelf takedown off of the Registration
Statement, the Purchaser must so notify the Company in writing indicating the number of Registrable Securities sought to be offered
and sold in such takedown and the proposed plan of distribution.  Pending any required public disclosure by the Company and
subject to applicable legal requirements, the parties will maintain the confidentiality of all notices and other communications
regarding any such proposed takedown.

 

3.2          Plan
of Distribution, Underwriters and Counsel.  If the Registrable Securities are proposed to be sold in an underwritten
offering, the Purchaser will be entitled to determine the plan of distribution and select the managing underwriters, and the Purchaser
will also be entitled to select counsel for the Purchaser (which may be the same as counsel for the Company).

 

3.3          Withdrawals. 
If the Purchaser has demanded a registered underwritten offering to be conducted, the Purchaser may, no later than the time at
which the public offering price and underwriters’ discount are determined with the managing underwriter, decline to sell
all or any portion of the Registrable Securities being offered for the Purchaser’s account.

 

3.4          Lockups. 
In connection with any underwritten offering of Registrable Securities, the Company will agree to be bound by customary lockup
restrictions in the applicable underwriting agreement.

 

ARTICLE
4. FACILITATING REGISTRATIONS AND OFFERINGS

 

4.1          Registration
Statements.  In connection with any Registration Statement, the Company will:

 

(a)          (i)
prepare and file with the Commission the Registration Statement covering the applicable Registrable Securities, (ii) file amendments
thereto as warranted, (iii) seek the effectiveness thereof, and (iv) file with the Commission such Prospectuses as may be required,
all in consultation with the Purchaser (or its representatives) and as reasonably necessary in order to permit the offer and sale
of such Registrable Securities in accordance with the applicable plan of distribution;

 

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(b)          (1) 
within a reasonable time prior to the filing of any Registration Statement, any Prospectus, any amendment to any Registration
Statement, any amendment or supplement to a Prospectus or any issuer free writing prospectus covering Registrable Securities,
provide copies of such documents to the Purchaser (or its representatives) and to the underwriter or underwriters of an underwritten
offering, if applicable, and to their respective counsel; fairly consider such reasonable changes in any such documents prior
to or after the filing thereof as the counsel to the Purchaser or the underwriter or the underwriters may request; and make such
of the representatives of the Company as shall be reasonably requested by the Purchaser or any underwriter available for discussion
of such documents;

 

(2)          within
a reasonable time prior to the filing of any document which is to be incorporated by reference into any Registration Statement
or a Prospectus covering Registrable Securities, provide copies of such document to counsel for the Purchaser and underwriters;
fairly consider such reasonable changes in such document prior to or after the filing thereof as counsel for the Purchaser or
such underwriter shall request; and make such of the representatives of the Company as shall be reasonably requested by such counsel
available for discussion of such document;

 

(c)          use
its commercially reasonable efforts to cause any Registration Statement and the related Prospectus and any amendment or supplement
thereto, as of the effective date of such Registration Statement, amendment or supplement and during the distribution of the registered
Registrable Securities (x) to comply in all material respects with the requirements of the Securities Act and the rules and regulations
of the Commission and (y) not to contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading;

 

(d)          notify
the Purchaser promptly, and, if requested by the Purchaser, confirm such advice in writing, (i) when any Registration Statement
has become effective and when any post-effective amendments and supplements thereto become effective if such Registration Statement
or post-effective amendment is not automatically effective upon filing pursuant to Rule 462, (ii) of the issuance by the Commission
or any U.S. state securities authority of any stop order, injunction or other order or requirement suspending the effectiveness
of any Registration Statement or the initiation of any proceedings for that purpose, (iii) if, between the effective date of any
Registration Statement and the closing of any sale of securities covered thereby pursuant to any agreement to which the Company
is a party, the representations and warranties of the Company contained in such agreement cease to be true and correct in all
material respects or if the Company receives any notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, and (iv) of the happening of any
event during the period any Registration Statement is effective as a result of which such Registration Statement or the related
Prospectus contains any 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; provided that the Purchaser, upon receiving written notice of an event
described in clauses (ii) to (iv) of this Section 4.1(d), shall discontinue (and direct any other person making offers and sales
of Registrable Securities on its behalf to discontinue) offers and sales of Registrable Securities pursuant to any Registration
Statement (other than those pursuant to a plan in effect prior to such event and that complies with Rule 10b5-1 under the Exchange
Act) until it is advised in writing by the Company that the use of the applicable Prospectus may be resumed and is furnished with
an amended or supplemented Prospectus;

 

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(e)          furnish
counsel for each underwriter, if any, and for the Purchaser with copies of any written correspondence with the Commission or any
state securities authority relating to the Registration Statement or Prospectus;

 

(f)          otherwise
use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, including making
available to its security holders an earnings statement covering at least 12 months which shall satisfy the provisions of Section
11(a) of the Securities Act and Rule 158 thereunder (or any similar provision then in force); and

 

(g)          use
its commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration Statement
at the earliest possible time.

 

4.2          Shelf
Takedowns.  In connection with any shelf takedown that is demanded by the Purchaser, the Company will:

 

(a)          cooperate
with the Purchaser and the sole underwriter or managing underwriter of an underwritten offering, if any, to facilitate the timely
preparation and delivery of certificates representing the Registrable Securities to be sold and not bearing any restrictive legends;
and enable such Registrable Securities to be in such denominations (consistent with the provisions of the governing documents
thereof), and registered in such names as the Purchaser or the sole underwriter or managing underwriter of an underwritten offering
of Registrable Securities, if any, may reasonably request at least five days prior to any sale of such Registrable Securities;

 

(b)          furnish
to the Purchaser and to each underwriter, if any, participating in the relevant offering, without charge, as many copies of the
applicable Prospectus, including each preliminary prospectus, and any amendment or supplement thereto and such other documents
as the Purchaser or underwriter may reasonably request in order to facilitate the public sale of the Registrable Securities, subject
to the other provisions of this Agreement; the Company hereby consents to the use of the Prospectus, including each preliminary
prospectus, by the Purchaser and each underwriter in connection with the offering and sale of the Registrable Securities covered
by the Prospectus or the preliminary prospectus;

 

(c)          (i)
use its commercially reasonable efforts to register or qualify the Registrable Securities being offered and sold under all applicable
U.S. state securities or “blue sky” laws of such jurisdictions as each underwriter shall reasonably request; (ii)
use reasonable efforts to keep each such registration or qualification effective during the period such Registration Statement
is required to be kept effective; and (iii) do any and all other acts and things which may be reasonably necessary or advisable
to enable each such underwriter, if any, and/or the Purchaser to consummate the disposition in each such jurisdiction of such
Registrable Securities owned by the Purchaser; provided, however, that the Company shall not be obligated to qualify as a foreign
corporation or as a dealer in securities in any jurisdiction in which it is not so qualified, to subject itself to taxation in
any such jurisdiction, or to consent to be subject to general service of process (other than service of process in connection
with such registration or qualification or any sale of Registrable Securities in connection therewith) in any such jurisdiction;

 

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(d)          use
its commercially reasonable efforts to cause all Registrable Securities being offered and sold pursuant to this Agreement to be
qualified for inclusion in or listed on any securities exchange on which the Common Stock issued by the Company are then so qualified
or listed if so requested by the Purchaser or if so requested by the underwriter or underwriters of an underwritten offering of
Registrable Securities, if any;

 

(e)          cooperate
and assist in any filings required to be made with such securities exchange and, solely with regard to an underwritten shelf takedown,
in the performance of any reasonable due diligence investigation by the underwriters;

 

(f)          solely
with regard to an underwritten shelf takedown, use its commercially reasonable efforts to facilitate the distribution and sale
of any Registrable Securities to be offered pursuant to this Agreement, including without limitation by making road show presentations,
holding meetings with and making calls to potential investors and taking such other actions as shall be reasonably requested by
the Purchaser or the lead managing underwriter;

 

(g)          solely
with regard to an underwritten shelf takedown, enter into underwriting agreements in customary form (including provisions with
respect to indemnification and contribution in customary form) and take all other customary and appropriate actions in order to
expedite or facilitate the disposition of such Registrable Securities and in connection therewith:

 

1.          make
such representations and warranties to the Purchaser and the underwriters in such form, substance and scope as are customarily
made by issuers to underwriters in similar underwritten offerings;

 

2.          obtain
opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the lead managing underwriter) addressed to the underwriters and, if reasonably obtainable, the Purchaser covering
the matters customarily covered in opinions delivered in similar underwritten offerings; and

 

3.          obtain
“cold comfort” letters and updates thereof from the Company’s independent certified public accountants addressed
to the underwriters, and, if reasonably obtainable, the Purchaser, which letters shall be customary in form and shall cover matters
of the type customarily covered in “cold comfort” letters to underwriters in connection with similar underwritten
offerings.

 

4.3          Due
Diligence.  In connection with each registration and offering of Registrable Securities to be sold by the Purchaser,
the Company will, in accordance with customary practice, make reasonably available for inspection by representatives of the Purchaser
and underwriters and any counsel or accountant retained by the Purchaser or underwriters all relevant financial and other records,
pertinent corporate documents and properties of the Company and cause appropriate officers, managers and employees of the Company
to supply all information reasonably requested by any such representative, underwriter, counsel or accountant in connection with
their due diligence exercise.  Such access to information, documents, personnel and other matters shall be provided to such
participants, at such times and in such manner as are customary for offerings of the relevant type and as do not unreasonably
burden the Company or unreasonably interfere with its operations.  All information, documents and other matters provided
or made accessible by the Company in connection with a registered offering hereunder shall be kept confidential pending any public
disclosure thereof by the Company and subject to applicable legal requirements.

 

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4.4          Information
from the Purchaser.  The Purchaser shall furnish to the Company such information regarding itself as is required
to be included in any Registration Statement, the ownership of Registrable Securities by the Purchaser and the proposed distribution
by the Purchaser of such Registrable Securities as the Company may from time to time reasonably request in writing.  The
Purchaser shall do so on the terms and conditions applicable to such offering and the applicable plan of distribution; provided
that the Purchaser shall not be required to make any representations or warranties to or agreements with the Company or the underwriters
other than representations, warranties or agreements regarding the Purchaser and the Purchaser’s Registrable Securities.

 

ARTICLE
5. REGISTRATION EXPENSES

 

All
fees and expenses incident to the performance of or compliance with this Agreement by the Company, except as and to the extent
specified in this Section 4, shall be borne by the Company whether or not the Registration Statement is filed or becomes effective
and whether or not any Registrable Securities are sold pursuant to the Registration Statement.  The fees and expenses referred
to in the foregoing sentence shall include, without limitation, and to the extent applicable (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings required to be made with each securities exchange
or market on which Registrable Securities are required hereunder to be listed, if any, (B) with respect to filing fees required
to be paid to the Financial Industry Regulatory Authority and (C) in compliance with state securities or Blue Sky laws (including,
without limitation, fees and disbursements of counsel for the Purchaser in connection with Blue Sky qualifications of the Registrable
Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions
as the Company may designate)), (ii) printing expenses (including, without limitation, expenses of printing certificates
for Registrable Securities and of printing prospectuses if the printing of prospectuses is requested by the Company), (iii) messenger,
telephone and delivery expenses, (iv) Securities Act liability insurance, if the Company elects to purchase such insurance,
and (v) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement, including, without limitation, the Company’s independent public accountants (including the
expenses of any comfort letters or costs associated with the delivery by independent public accountants of a comfort letter or
comfort letters).  In addition, the Company shall be responsible for all of its internal expenses incurred in connection
with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred
in connection with the listing of the Registrable Securities on any securities exchange if required hereunder.  The Company
shall not be responsible for any underwriters’, brokers’ and dealers’ discounts and commissions, transfer taxes
or other similar fees incurred by Purchaser in connection with the sale of the Registrable Securities.

 

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ARTICLE
6. INDEMNIFICATION

 

6.1          Indemnification
by the Company.  The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless
the Purchaser, its officers, directors, employees and affiliates, each Person who controls the Purchaser (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors and employees of each such controlling
Person (collectively, the “Purchaser Indemnified Parties”), to the full extent permitted by applicable
law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, costs of preparation
and attorneys’ and expert witnesses’ fees) and expenses (collectively, “Losses”) (as determined
by a court of competent jurisdiction in a final judgment not subject to appeal or review), to which the Purchaser Indemnified
Parties may become subject under the Securities Act or otherwise, arising out of or relating to any violation of securities laws
or untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of
prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case
of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not
misleading, except to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information
regarding the Purchaser furnished in writing to the Company by the Purchaser expressly for use therein.  The Company shall
notify the Purchaser promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection
with the transactions contemplated by this Agreement.  Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of any the Purchaser, the directors and officers of the Purchaser, or controlling Person
of the Purchaser, and shall survive the transfer of such securities held by the Purchaser.

 

6.2          Indemnification
by Purchaser.  The Purchaser shall indemnify and hold harmless the Company, its directors, officers
and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act), and the directors, officers and employees of such controlling Persons (collectively, the “Company
Indemnified Parties”), to the full extent permitted by applicable law, from and against all Losses (as determined
by a court of competent jurisdiction in a final judgment not subject to appeal or review), to which the Company Indemnified Parties
may become subject under the Securities Act or otherwise, arising solely out of or based solely upon any untrue statement of a
material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement
thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, to the extent, but only to the extent, that such untrue statement or
omission is contained in any information so furnished in writing by the Purchaser to the Company specifically for inclusion in
the Registration Statement or such Prospectus.  Notwithstanding anything to the contrary contained herein, the Purchaser
shall be liable under this Section 6.2 for only that amount as does not exceed the net proceeds to the Purchaser as a result of
the sale of Registrable Securities pursuant to such Registration Statement.

 

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

 

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

 

All
fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating
or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party,
as incurred, within 30 (30) Business Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately
determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnified Party shall
reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled
to indemnification hereunder).

 

6.4          Contribution. 
If a claim for indemnification under Sections 6.1 or 6.2 is due but unavailable to an Indemnified Party, then each Indemnifying
Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the
one hand and the Indemnified Party on the other in connection with the actions, statements or omissions that resulted in such
Losses as well as any other relevant equitable considerations.  The relative fault of such Indemnifying Party and Indemnified
Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates
to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such action, statement or omission.

 

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The
amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in
Section 6.3, any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for
in this Section was available to such party in accordance with its terms.  In no event shall the Company be required to contribute
an amount under this Section 6(d) in excess of the net proceeds received by it upon the sale of its Registrable Securities pursuant
to a Registration Statement giving rise to such contribution obligation.

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by
pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred
to in the immediately preceding paragraph.  No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person who was not also guilty of such fraudulent misrepresentation.

 

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

 

6.5          Survival. 
The agreements contained in this Section 6 shall survive the transfer of the Registered Securities by the Purchaser and sale of
all of the Registrable Securities pursuant to any registration statement and shall remain in full force and effect, regardless
of any investigation made by or on behalf of the Purchaser Indemnified Party.

 

ARTICLE
7. RULE 144

 

If
the Company is subject to the requirements of Section 13, 14 or 15(d) of the Exchange Act, the Company covenants that it will
file any reports required to be filed by it under the Securities Act and the Exchange Act, so as to enable the Purchaser to sell
Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule
144 under the Securities Act, as such rule may be amended from time to time, or any successor rule or regulation hereafter adopted
by the Commission.  Upon the request of the Purchaser, the Company will deliver to the Purchaser a written statement as to
whether it has complied with such requirements. Notwithstanding anything in this Agreement, the Company shall not be required
to register any of its equity securities under Section 12 of the Exchange Act in order to enable the Purchaser to dispose of Registrable
Securities under Rule 144.

 

    	 	11	 

     

    

 

ARTICLE
8. MISCELLANEOUS

 

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

 

8.2          No
Inconsistent Agreements.  The Company shall not enter into any such agreement with respect to its securities that
is inconsistent with or violates the rights granted to the Purchaser in this Agreement.

 

8.3          Amendments
and Waivers.  The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified
or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in
writing and signed by the Company and the Purchaser shall have consented thereto.

 

8.4          Termination
of Registration Rights.  This Agreement to register Registrable Securities for sale under the Securities Act shall
terminate on the earliest to occur of (i) the first date on which no Registrable Securities are outstanding or are issuable upon
conversion of the Note; and (ii) the fifth anniversary of the effective date of the Registration Statement filed pursuant to Section
2.1.  Notwithstanding any termination of this Agreement pursuant to this Section 8.4, the parties’ rights and obligations
under Article VI hereof shall continue in full force and effect in accordance with their respective terms.

 

8.5          Notices. 
Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and
shall be given in accordance with the notice provisions of the Purchase Agreement.

 

8.6          Successors
and Assigns.  (a)   This Agreement shall be binding upon and inure to the benefit of the parties and their
successors and permitted assigns and shall inure to the benefit of the Purchaser and its successors and permitted assigns. 
Neither party may assign this Agreement nor any of its rights or obligations hereunder without the prior written consent of the
other party.

 

(b)          In
the event the Company engages in a merger or consolidation in which the Registrable Securities are converted into securities of
another company, or if there are any changes in the Common Stock by way of share split, stock dividend, combination or reclassification,
appropriate arrangements will be made so that the registration rights provided under this Agreement continue to be provided to
the Purchaser by the issuer of such securities.  To the extent any new issuer, or any other company acquired by the Company
in a merger or consolidation, was bound by registration rights obligations that would conflict with the provisions of this Agreement,
the Company will, unless the Purchaser otherwise agrees, use commercially reasonable efforts to modify any such “inherited”
registration rights obligations so as not to interfere in any material respects with the rights provided under this Agreement.

 

    	 	12	 

     

    

 

8.7          Counterparts. 
This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have
been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same
counterpart.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile signature were the original thereof.

 

8.8          Entire
Agreement.  This Agreement constitutes the entire agreement and understanding between the parties in connection with
the subject matter of this Agreement and supersedes all previous proposals, representations, warranties, agreements or undertakings
relating thereto whether oral, written or otherwise and no party hereto has relied or is entitled to rely on any such proposals,
representations, warranties, agreements or undertakings.

 

8.9          Governing
Law; Jurisdiction.  This Agreement shall be governed by and construed in accordance with the internal laws of the
State of New York.  This Agreement shall not be interpreted or construed with any presumption against the party causing this
Agreement to be drafted.  The exclusive jurisdiction for the resolution of any conflicts regarding this Agreement shall be
in the courts of the Southern District of New York.  This exclusive jurisdiction is a material provision to this Agreement.

 

8.10        Waiver
of Jury Trial.  Each of the parties to this Agreement hereby unconditionally agrees to waive, to the fullest extent
permitted by applicable law, its respective rights to a jury trial of any claim or cause of action (whether based on contract,
tort or otherwise) based upon, arising out of or relating to this Agreement or the transactions contemplated hereby.  The
scope of this waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate
to the subject matter of this Agreement, including contract claims, tort claims and all other common law and statutory claims. 
Each party hereto: (i) acknowledges that this waiver is a material inducement to enter into this Agreement, that each has
already relied on this waiver in entering into this Agreement, and that each will continue to rely on this waiver in their related
future dealings, (ii) acknowledges that no representative, agent or attorney of any other party has represented, expressly or
otherwise, that such other party would not in the event of any action or proceeding, seek to enforce the foregoing waiver and
(iii) warrants and represents that it has reviewed this waiver with its legal counsel and that it knowingly and voluntarily
waives its jury trial rights following consultation with legal counsel.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 8.10
AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS
OR MODIFICATIONS TO THIS AGREEMENT.  In the event of litigation, this Agreement may be filed as a written consent to a trial
by the court.

 

8.11        Cumulative
Remedies.  The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

 

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

 

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

 

    	 	13	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Registration Rights Agreement to be duly executed by a person thereunto
authorized as of the date first indicated above.

 

	 	COMPANY:
	 	 	 
	 	TEMPUS
    APPLIED SOLUTIONS HOLDINGS, INC.
	 	 	 
	 	By:	/s/
    B. Scott Terry
	 	Name:	B.
    Scott Terry
	 	 	(print)
	 	Title:	CEO

 

	 	SANTIAGO
    BUSINESS CO. INTERNATIONAL LTD.
	 	 	 
	 	By:	                      
	 	Name:	 
	 	 	(print)
	 	Title:	 
	 	 	 

 

14Exhibit 4.1 Placement Agent Warrant

EXHIBIT 4.1

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES LAW, AND MAY NOT BE OFFERED, ASSIGNED, TRANSFERRED, PLEDGED, HYPOTHECATED, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, AND SUCH REGISTRATION OR QUALIFICATION AS MAY BE NECESSARY UNDER THE SECURITIES LAWS OF ANY STATE, OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION OR QUALIFICATION IS NOT REQUIRED. 

FRESH MEDICAL LABORATORIES, INC.

WARRANT TO PURCHASE COMMON STOCK

Issue Date: ___________

1. Grant. For value received, Fresh Medical Laboratories, Inc., a Delaware corporation (the “Corporation”), hereby grants to [______________, a [_____________] (the “Holder”), the right to purchase up to a maximum of [___________] shares (the “Warrant Shares”) of the Corporation’s Common Stock, $0.001 par value per share (the “Common Stock”), subject to adjustment from time to time as set forth herein, at the exercise price per Warrant Share set forth in Section 3 below. 

2. Exercise Period. The right to exercise this Warrant, in whole or in part, begins on the Issue Date. The right to exercise this Warrant expires on the earlier to occur of (a) [1], and (b) the date provided in Section 4(b) in connection with a Change of Control Transaction, as defined in Section 4(b), (such earlier date, the “Expiration Date”). 

3. Exercise Price. The exercise price (“Exercise Price”) of this Warrant is $0.65 per Warrant Share, subject to adjustment from time to time as set forth herein.

4. Adjustments. 

(a)  Adjustment for Split, Stock Dividend or Consolidation. 

(i) If the Corporation (A) pays a dividend or makes a distribution on its Common Stock in shares of its Common Stock, (B) subdivides or reclassifies its outstanding shares of Common Stock into a greater number of shares, or (C) combines or reclassifies its outstanding shares of Common Stock into a smaller number of shares (each, an “Adjustment Event”), the number of Warrant Shares issuable hereunder immediately prior to such Adjustment Event shall be proportionately adjusted so that the Holder will receive, upon exercise, the aggregate number and kind of shares of capital stock of the Corporation which it would have owned immediately following such Adjustment Event if the Holder had exercised this Warrant immediately prior to such Adjustment Event. The Exercise Price shall also be proportionately adjusted such that the aggregate Exercise Price for all the Warrant Shares issuable hereunder remains unchanged following such Adjustment Event.

(ii) The adjustment shall become effective immediately after the record date in the case of a dividend or distribution and immediately after the effective date in the case of a subdivision, combination or reclassification.

(iii) The adjustment shall be made successively whenever any Adjustment Event occurs.

________

1. 3 years from issue date.

(b)  Change of Control. If there is a Change of Control Transaction, the Corporation shall provide the Holder with not less than ten (10) days advanced written notice of the expected closing of the Change of Control Transaction. The Holder may exercise this Warrant at any time prior to the closing of such Change of Control Transaction, and may make any such exercise contingent upon the actual occurrence of such Change of Control Transaction. The right to exercise this Warrant shall expire upon the closing of such Change of Control Transaction. As used herein, “Change of Control Transaction” means one or more transactions resulting in (i) the liquidation, dissolution or winding up of the Corporation; (ii) the sale, transfer or exclusive license of all or substantially all of the assets of the Corporation; (iii) a merger or consolidation of the Corporation with another entity where the owners of the capital stock of the Corporation prior to such merger or consolidation do not own, directly or indirectly, more than 50% of the capital stock of the surviving corporation; or (iv) any person or entity, or a group of persons or entities in a single or related series of transactions, becoming the owner of more than 50% of the then outstanding capital stock of the Corporation. 

(c)  Adjustment for Reorganization. If the Corporation consolidates or merges with or into another person or entity (and such event is not a Change of Control Transaction) or effects any recapitalization or reorganization (any such action, a “Reorganization”), there shall thereafter be deliverable, upon exercise of this Warrant and payment of a proportionately adjusted Exercise Price (in lieu of the number of Warrant Shares theretofore deliverable) the number of shares of stock or other securities or property to which a holder of the number of shares of Common Stock that would otherwise have been deliverable upon exercise of this Warrant would have been entitled upon such Reorganization if such Warrant had been exercised in full immediately prior to such Reorganization. 

5. Availability of Shares. The Corporation will reserve and keep available for issuance and delivery upon the exercise of this Warrant such number of its authorized but unissued shares of Common Stock or other securities of the Corporation as will be sufficient to permit the exercise in full of this Warrant. Upon issuance, each of the Warrant Shares will be validly issued, fully paid and nonassessable, free and clear of all liens, security interests, charges and other encumbrances or restrictions on sale and free and clear of all preemptive rights.

6. Listing; Stock Issuance. The Corporation shall secure and maintain the listing of the Warrant Shares upon each securities exchange or over-the-counter market upon which securities of the same class or series issued by the Corporation are listed, if any. Upon exercise of this Warrant, the Corporation will use its best efforts to cause stock certificates representing the shares of Common Stock purchased pursuant to the exercise to be issued in the names of Holder or, subject to compliance with the Act the Holder’s nominees or assignees, as appropriate at the time of such exercise.

7. No Voting Rights; Limitations of Liability. Prior to exercise, this Warrant will not entitle the Holder to any voting rights or other rights as a stockholder of the Corporation not granted herein. No provision of this Warrant, in the absence of affirmative action by the Holder to exercise this Warrant, and no enumeration in this Warrant of the rights or privileges of the Holder, will give rise to any liability of such Holder for the Exercise Price.

8. Exercise Procedure. 

(a)  To exercise this Warrant, the Holder must deliver to the principal office of the Corporation (prior to the Expiration Date) this Warrant, the irrevocable subscription substantially in the form of Exhibit A attached hereto, and the Exercise Price. The Holder may deliver the Exercise Price by any of the following methods, at its option: (i) in legal tender, (ii) by bank cashier's or certified check, or (iii) by wire transfer to an account designated by the Corporation. Upon exercise, the Corporation, at its sole expense (including the payment of any documentary, stamp, issue or transfer taxes), will issue and deliver to Holder, within 10 days after the date on which the Holder exercises this Warrant, certificates for the Warrant Shares purchased hereunder. The Warrant Shares shall be deemed issued, and the Holder deemed the holder of record of such Warrant Shares, as of the opening of business on the date on which the Holder exercises this Warrant.

(b)  In the event this Warrant is partially exercised, the Corporation shall issue and deliver to the Holder, within 10 days after the date of exercise, a new Warrant of like tenor to purchase that number of Warrant Shares with respect to which such partial exercise did not apply.

9. Securities Laws. Neither the sale of this Warrant nor the issuance of any of the Warrant Shares upon exercise of this Warrant have been registered under the Act or under the securities laws of any state. The issuance of the Warrant Shares upon exercise of this Warrant shall be subject to compliance with all applicable Federal and state securities laws. Until the Warrant Shares have been registered under the Act and registered and qualified under the securities laws of any state in question, the Corporation shall cause each certificate evidencing any Warrant Shares to bear the following legend and such other legends as may be required by applicable law:

THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THE SHARES MAY NOT BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, AND SUCH REGISTRATION OR QUALIFICATION AS MAY BE NECESSARY UNDER THE SECURITIES LAWS OF ANY STATE, OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION OR QUALIFICATION IS NOT REQUIRED.

10. Transfer. The Corporation will register this Warrant on its books and keep such books at its offices. Neither this Warrant nor any of the Warrant Shares (when issued) may be sold, assigned, transferred, pledged or hypothecated or otherwise disposed of except as permitted by (i) any effective registration statement under the Act and by the securities laws of any state in question, or (ii) with an opinion of counsel reasonably satisfactory to the Corporation stating that such registration under the Act and registration or qualification under the securities laws of any state is not required.

11. Replacement of Warrant. If the Holder provides evidence that this Warrant or any certificate or certificates representing the Warrant Shares have been lost, stolen, destroyed or mutilated, the Corporation (at the request and expense of the Holder) will issue a replacement warrant upon reasonably satisfactory indemnification by the Holder.

12. Governing Law. The internal laws of the State of Delaware (other than its conflicts of law rules) govern this Warrant.

IN WITNESS WHEREOF, the Corporation has caused this Warrant to be duly executed and delivered on its behalf by the officer whose signature appears below, as of the date first written above.

FRESH MEDICAL LABORATORIES, INC.

By: ___________________________________

Name:

Title: 

EXHIBIT A

IRREVOCABLE SUBSCRIPTION

To:__________________________

The undersigned hereby elects to exercise its right under the attached Warrant by purchasing ____ shares of the Common Stock of Fresh Medical Laboratories, Inc., a Delaware corporation, and hereby irrevocably subscribes to such issue. The certificates for such shares shall be issued in the name of:

______________________________

(Name)

______________________________

(Address)

______________________________

(Taxpayer Number)

and delivered to:

______________________________

(Name)

______________________________

(Address)

The aggregate Exercise Price of $______ per share is enclosed.

Date:_______________

Signed:______________________________________________

(Name of Holder, Please Print)

________________________________________

(Address)

________________________________________

(Signature)

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