Document:

exhibit_10-4.htm

Exhibit 10.4

 

 

Via Electronic Mail

 

October 23, 2008

 

Dr. Tom Furness

RATLab, LLC

5607  40th Ave NE

Seattle, WA 98115

 

RE:           Letter Agreement

 

Dear Tom:

 

The purpose of this Letter (“Letter”) is to set forth the agreement between Visualant, Inc. and assigns (“VSUL”) and RATLAB, LLC, and affiliates (“RATLAB”), with respect to a resolution
of outstanding matters between the parties, proposed future collaboration between the parties and licensing and equity participation agreements whereby RATLAB and/or assigns will exploit the VSUL technology in certain enumerated fields of use.  RATLAB and VSUL are sometimes collectively referred to as “parties” and individually as a “party.”

 

 

1. SUMMARY OF TERMS.  The following paragraphs constitute a description of the parties’ agreements with respect to the transactions. Except as described herein, this Letter is binding on the parties and the provisions described below shall be enforceable against
the parties either in the manner set forth in the individual agreements referenced herein and attached hereto or as described below.

 

1.1  VSUL has provided a non-exclusive non-commercial license referenced in Exhibit A and made a part of this agreement by this reference.

1.2  VSUL has provided an exclusive, world-wide, commercial license to the RATLAB referenced in Exhibit B and made a part of this agreement by this reference.

1.3  RATLAB shall provide to VSUL a license on independently developed and RATLAB owned IP referenced in Exhibit C and made a part of this agreement by this reference.

1.4  In addition to the royalties payable to VSUL under the license described in Section 1.2, if at any time the RATLAB elects to create an affiliate to exploit the VSUL IP under the Section 1.2 license, the RATLAB will provide VSUL 10% of the initial equity of such affiliate in consideration for the granting of the Section 1.2
license to RATLAB.   The VSUL interest in such RATLAB affiliate shall benefit from the same preemptive rights and other protections, if any, enjoyed by the other founders and will be subject to the same dilution risk from additional investment, stock option grants, etc. as the other founders face.

 

 

 

 

 

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1.5 Upon request, VSUL may grant one or more non-exclusive or exclusive commercial licenses to the VSUL IP to the RATLAB in designated fields of use outside of the Exclusive Fields.  The scope and terms of such additional licenses will be negotiated in good faith at the time of grant and will reflect the royalty rates for the
Exclusive Fields, with equitable adjustments to reflect differences in scope, duration, industry, and other nuances inherent in the license.  The license agreement memorializing this intent is attached hereto as Exhibit D to this Letter and incorporated herein by this reference.

1.6  VSUL shall issue the RATLAB and RATLAB personnel VSUL common stock in the amounts and for the benefit of the individuals as set forth in Exhibit E to this the Letter and incorporated herein by this reference.  The common stock in the “vested column” for all individuals shall immediately vest.  The
additional common stock for Messrs Furness and Schowengerdt shall vest upon according to the schedule set forth in Exhibit F to the Letter and incorporated herein by this reference.

1.7  Upon receipt of debt or equity financing from any source in an amount of at least $100,000, VSUL shall pay the RATLAB the amount of $65,000 in cash for previously unpaid invoices, which amount shall bear simple interest at the annual rate of eighteen percent (18%), from June 1, 2007 until paid.  Upon payment
the RATLAB shall deliver the two demonstration units remaining to be delivered.

1.8  VSUL shall pay the RATLAB for work on an on-going basis on rates and pursuant to terms which are to be negotiated.

 

2. DEFINITIVE AGREEMENTS.  This agreement and the agreements attached hereto are the definitive agreements covering the transactions between the parties.

 

3.  MEDIATION.  The parties hereto agree that any disputes arising out of the interpretation of this Letter and/or the agreements attached hereto shall be adjudicated by JAMS in Seattle, WA applying the laws of the State of Washington.  The prevailing
party in any such matter determined by JAMS shall be paid their costs and attorneys fees.

 

4. CONFIDENTIALITY.  Any press releases or public announcements of activities relating to this Letter and its attached agreements shall be approved by both parties hereto.

 

5. DISCLAIMER OF LIABILITIES.  Except to the extent otherwise provided in this Letter and the agreements attached hereto each party shall be solely responsible for its own expenses, legal fees and consulting fees related to the negotiations described in this Letter.

 

 

 

 

 

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6. BINDING NATURE OF THIS LETTER. This Letter as a whole, is intended to constitute, and shall constitute a legal and binding obligation, contract or agreement between the parties, and is intended to be relied upon by any party as constituting such.

 

7. ENTIRE AGREEMENT.  This Letter and the other agreements attached hereto constitutes the entire agreement, and supersedes any and all prior agreements ( including, without limitation, the Confidential  Letter of Intent,
dated August 13,  2008) between the parties with regard to the transactions described in this Letter.  No amendment of any provision of this Letter of the other agreements attached hereto will be valid unless set forth in a written instrument signed by both parties.  In the event of any conflict between this Letter and any of the other agreements attached hereto, the terms of the applicable agreement will govern.

 

8. COUNTERPARTS.  This Agreement may be executed in two or more counterparts, each of which when so executed shall be deemed an original, but all of which taken together shall constitute one and the same document.

 

 

Sincerely,

 

 

/s/  Ron Erickson

Visualant, Inc.                                                                           

By: Ron Erickson

Its: Chairman                                                                           

ACCEPTED AND AGREED as of

23 OCT     , 2008

RATLAB, LLC

/s/ Dr. Tom Furness

Dr. Tom Furness, Manager

 

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EXHIBIT A

NON-COMMERCIAL LICENSE AGREEMENT

 

This Non-Commercial License Agreement (this "Agreement"), dated as of October 23, 2008, is made by and between Visualant, Inc., a Nevada corporation ("Visualant") and RatLab, LLC, a Washington limited liability company ("RatLab").  Visualant
and RatLab (sometimes referred to herein individually as a "Party" and collectively as the "Parties") therefore agree as follows:

 

Section 1.               Definitions

 

"Affiliate" means a corporation, limited liability company, joint venture or other entity of which RatLab or its members has ownership and control of at least fifty percent (50%) of all outstanding shares or securities or other ownership interests that represent the power to
direct the management and policies of such entity.

 

"Improvement" means any advancement, development, improvement, enhancement, correction, modification, adaptation, translation, transformation, annotation, extension, compilation, collective work or derivative work.

 

"Intellectual Property Rights" means any patent, copyright, trademark, trade secret, mask work, moral right or other intellectual property or proprietary right under the laws of any jurisdiction.

 

"Third Party" means any individual, corporation, limited liability company, partnership, trust, association, governmental authority or other entity that is not a Party.

 

"Third Party Infringement" means any past, present or future infringement, misappropriation, unauthorized use or other violation of any of the Visualant IP by any Third Party.

 

"Visualant IP" means:  (a) the Visualant Patents: (b) any other intellectual property assets listed in the attached Exhibit A; (c) any other intellectual property or proprietary rights
owned or controlled by Visualant that are necessary or useful for RatLab's exploitation of license granted pursuant to this Agreement; and (d) any Improvements to any of items described in (a), (b) or (c) above developed, created or invented by Visualant.

 

"Visualant Patent" means: (a) any patent or patent application owned or controlled by Visualant now or in the future listed, including any patents or patent applications listed under the heading of "Visualant Patents" in the attached Exhibit A,
and any patents that may issue from the pending patent applications listed in the attached Exhibit A; (b) any patent that may issue from any continuation or divisional that has priority based upon any of the patent applications described in (a) above; (c) any reissues, renewals, substitutions, re-examinations and extensions of any of the patents described in (a) or (b) above; and (d) any foreign patents corresponding
to any of the patents described in (a), (b) or (c) above.

 

 

 

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Section 2.               Non-Commercial License Grant

 

Visualant hereby grants to RatLab a non-exclusive, worldwide, non-transferable (except as described in Section 4.2), sublicensable, fully paid-up, perpetual, royalty-free right and license to use and exploit the Visualant IP for non-commercial purposes.  Without limiting the generality of the foregoing, the license and rights
granted under this Section 2.1 include, without limitation, the rights to do the following: (a) make, have made, use, distribute, have distributed, and import any items covered by the Visualant IP; (b) make Improvement to the Visualant IP; and (c) sublicense any of the licenses or rights granted hereunder.

 

Section 3.               Intellectual Property Rights

 

3.1           Administration and Prosecution of Intellectual Property Rights.  Visualant will control the prosecution, maintenance, registration and other management of the Visualant IP.  Visualant
will keep RatLab informed of the status of all prosecution, maintenance, registration and other management activities related to the Visualant IP and will provide RatLab with a reasonable opportunity to advise Visualant on such activities.  Without limiting the generality of the foregoing, if Visualant chooses to abandon any portion of the Visualant IP, Visualant will provide RatLab written notice at least sixty (60) days prior to the last allowable date for filing or taking any other action required
with respect to the prosecution, maintenance or registration of such portion of the Visualant IP and RatLab may, at any time thereafter, take actions necessary to preserve the Visualant IP.

 

3.2           Third Party Infringement.

 

(a)           If any Third Party Infringement comes to the attention of either Party, then such Party will give the other Party prompt written notice thereof (including, without limitation, a statement of the facts which are known by the Party giving the notice and which such Party
believes might reasonably serve as a basis for a claim of Third Party Infringement, together with a copy of any documentation evidencing the same).

 

(b)           Visualant will have the first right to respond to, address, and/or prosecute any alleged Third Party Infringement by securing cessation of the infringement or initiating an action or suit against the infringer or otherwise responding to, addressing and/or prosecuting
such alleged Third Party Infringement.  To exercise this first right, Visualant must initiate bona fide action to respond to, address, and/or prosecute any alleged Third Party Infringement within ninety (90) days of learning of such infringement.  If Visualant chooses to institute suit or action against an alleged infringer, Visualant may bring such suit in its own name (or, if required by law, in its and RatLab’s name) and at its own expense.  Further, if Visualant institutes
an action or suit against an alleged infringer as provided in this Agreement, then (i) RatLab will fully and promptly cooperate and assist Visualant in connection with any such suit or action, and Visualant will pay RatLab’s reasonable attorney fees and other out-of-pocket directly associated expenses, and (ii) Visualant will receive all damages, awards, or settlement proceeds.

 

 

 

 

 

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(c)           If Visualant fails, within ninety (90) days of learning of an alleged Third Party Infringement, to secure cessation of the alleged Third Party Infringement, institute suit against the alleged infringer, or to otherwise respond to, address and/or prosecute the alleged
Third Party Infringement, then RatLab may, upon written notice to Visualant, assume full right and responsibility to institute suit or action against the alleged infringer.  If RatLab elects to commence an action as described above, then RatLab may do so in its own name (or if required by law, in its own and Visualant’s name) and at its own expense.  Further, if RatLab institutes an action or suit against an alleged infringer as provided in this Agreement, then Visualant will fully and
promptly cooperate and assist RatLab in connection with the action or suit, and RatLab will pay all of Visualant’s reasonable attorney fees and other out-of-pocket directly associated expenses.  RatLab will not settle any suits or actions in any manner relating to the Visualant IP without obtaining the prior written consent of Visualant, which will not be unreasonably withheld, delayed or conditioned. After RatLab has recovered its reasonable attorney’s fees and other out-of-pocket expense
directly related to any action, suit, or settlement for infringement to Visualant IP, the remaining damages, awards, or settlement proceeds will be divided as follows:  fifty percent (50%) to Visualant and fifty percent (50%) to RatLab.

 

(d)           Neither RatLab nor Visualant is obligated under this Agreement to institute or prosecute a suit against any alleged infringer of the Visualant IP.

 

3.3           Ownership of Improvements.

 

(a)           Visualant will be the owner of any Intellectual Property Right in any Improvement of the Visualant IP developed, created or invented by Visualant.

 

(b)           RatLab or its sublicensees will be the owner of any Intellectual Property Right in any Improvement of the Visualant IP developed, created or invented by RatLab or its sublicensees (subject to any Intellectual Property Rights of Visualant in the Visualant IP) and
RatLab will not be obligated to deliver to Visualant any such Improvement; provided, however, RatLab will promptly notify Visualant of any Improvements to the Visualant IP developed, created or invented by RatLab and will license such Improvements to Visualant pursuant to a separate agreement containing the same terms as are applicable to the "Visualant IP" licensed to RatLab on an exclusive basis pursuant to the Commercial License Agreement, dated October 23, 2008, between the Parties.

 

3.4           Reservation of Rights:  Ownership of IP.  Except as expressly provided in this Agreement, no title to or ownership of any Visualant IP or any proprietary rights associated with the Visualant
IP, is transferred to RatLab or any other person under this Agreement.  RatLab acknowledges and agrees that Visualant is the sole owner of all right, title and interest in and to the Visualant IP listed on Schedule A hereto, and RatLab agrees that at the request of Visualant, RatLab will execute all instruments and documents and will take all other action necessary to insure that Visualant has vested title to the Visualant IP.  RatLab represents and warrants that it will not undertake any
act or thing which in any way impairs or is intended to impair any part of the right, title, interest or goodwill of Visualant in the Visualant IP.

 

 

 

 

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Section 4.               Miscellaneous

 

4.1           Waiver; Amendments.  The failure of any Party to insist, in any one or more instances, upon performance of any of the terms, covenants or conditions of this Agreement will not be construed as a
waiver or a relinquishment of any right or claim granted or arising hereunder or of the future performance of any such term, covenant, or condition, and such failure will in no way affect the validity of this Agreement or the rights and obligations of the parties hereto.  This Agreement may not be modified, amended or supplemented except by an agreement in writing signed by Visualant and RatLab.

 

4.2           Assignment and Binding Effect.  Neither Party may transfer or assign its rights or obligations under this Agreement without the
express written consent of the other Party; provided, however, RatLab may assign any of its rights or obligations under this Agreement to an Affiliate without the prior written consent of Visualant, but subject to giving Visualant notice of such assignment and the terms and conditions thereof.  Subject to the foregoing, this Agreement will inure to the benefit of and will be binding upon the Parties and their respective successors and permitted assigns.

 

4.3           Governing Law.  This Agreement will be governed by and construed under the laws of the state of Washington, without giving effect to any contrary conflict of laws provisions.

 

4.4           Notices.  All notices and other communications hereunder will be in writing and will be deemed given (a) upon receipt if delivered personally (or if mailed by registered or certified mail),
(b) the day after dispatch if sent by overnight courier, (c) upon receipt if transmitted by telecopier or other means of facsimile transmission (and confirmed by a copy delivered in accordance with clause (a) or (b)), properly addressed to the parties at the following addresses:

 

	
RatLab:
	
RatLab, LLC.

	  	
4939 NE 65th Street

Seattle, WA  98115

 

	
Visualant:
	
Visualant, Inc.

	  	
500 Union Street, Ste. 406

Seattle, WA  98101

 

Any Party may change its address for such communications by giving notice thereof to the other parties in conformity with this Section.

 

4.5           Protection of the License in Bankruptcy.  The Parties expressly agree that the Visualant IP is "intellectual property" as defined in Section 101(35A) of the United States Bankruptcy Code,
11 U.S.C. Section 101 et. seq. (the "Bankruptcy Code").  In the event of any proceeding under the Bankruptcy Code for the bankruptcy, reorganization or protection of either Party, this Agreement shall be subject to Section 365(n) of the Bankruptcy Code.

 

4.6           Severability.  If any provision of this Agreement, or the application thereof, will for any reason and to any extent be held to be invalid or unenforceable, the remainder of this Agreement and
the application of such provision to other persons or circumstances will be interpreted so as best to reasonably effect the intent of the parties hereto.  The parties further agree to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the invalid or unenforceable provision.

 

 

 

 

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4.7           Counterparts.  This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all of which together will constitute one and the same instrument
notwithstanding that all Parties are not signatories to each counterpart.

 

4.8           Entire Agreement.  This Agreement (together with any exhibit or attachments) constitutes the entire agreement between the Parties hereto with respect to the subject matter of this Agreement and
supersedes all prior negotiations, understandings and agreements between the Parties with respect to the subject matter of this Agreement.

 

[Remainder of Page Left Intentionally Blank]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be made and executed by duly authorized officers.

	
Visualant, Inc.

 

By:                                                    
                   

Name:                                                                   

Title:                                                                      

Date Signed:                                                               
	
RatLab, LLC

 

By:                                                                       

Name:                                                                  

Title:                                                                    

Date Signed:                                                                

 

[Signature Page to Non-Coercial License Agreement]

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT A

VISUALANT IP

VISUALANT PATENTS

	
1.
	
Schowengerdt, B.T., Furness, T.A., Melville, R.D., Schroder, K.E., Burstein, R.A., and Chinthammit, W. SYSTEM AND METHOD OF EVALUATING AN OBJECT USING ELECTROMAGNETIC ENERGY. International Patent Application No. PCT/US2007/017082.

	
2.
	
Schowengerdt, B.T., Furness, T.A., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE DISTRIBUTED EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Patent Application No. 11/831,662.

	
3.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E., and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Patent Application No. 11/831,717.

	
4.
	
Schowengerdt, B.T., Furness, T.A., Melville, R.D., Schroder, K.E., Burstein, R.A., and Chinthammit, W. SYSTEM AND METHOD OF EVALUATING AN OBJECT USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/820,938.

	
5.
	
Schowengerdt, B.T., Furness, T.A., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE DISTRIBUTED EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/834,662.

	
6.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/834,589.

	
7.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/871,639.

	
8.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E., and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/883,312.

	
9.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E. , and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/890,446.

 

 

 

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EXHIBIT B

COMMERCIAL LICENSE AGREEMENT

 

This Commercial License Agreement (this "Agreement"), dated as of October 23, 2008 (the "Effective Date"), is made by and between Visualant, Inc., a Nevada corporation ("Visualant")
and RatLab, LLC, a Washington limited liability company ("RatLab").  Visualant and RatLab (sometimes referred to herein individually as a "Party" and collectively as the "Parties") therefore agree as follows:

 

Section 1.               Definitions

 

"Affiliate" means a corporation, limited liability company, joint venture or other entity of which RatLab or its members has ownership and control of at least fifty percent (50%) of all outstanding shares or securities or other ownership interests that represent the power to
direct the management and policies of such entity.

 

"Fields of Use" means the worldwide market for products and services relating to medical and healthcare testing (including medical diagnosis testing through both home and physician-provided healthcare solutions), agricultural testing (including both plant and animal, including
veterinary medical testing), environmental testing (including air and water testing), and gemology and jewelry.

 

"Gross Revenue" means any revenue actually received by RatLab, or a RatLab Affiliate, as a result of the sale to any of RatLab’s or RatLab Affiliate’s customers or end users of Licensed Products that incorporate one or more of the unexpired Visualant IP; provided,
however, that "Gross Revenue" does not include any (a) reimbursed expenses or costs that are passed through to a customer or end user (e.g., travel), (b) taxes collected by RatLab for remittance to governmental authorities, or (c) refunds or credits.

 

"Improvement" means any advancement, development, improvement, enhancement, correction, modification, adaptation, translation, transformation, annotation, extension, compilation, collective work or derivative work to or based upon the Visualant IP.

 

"Intellectual Property Rights" means any patent, copyright, trademark, trade secret, mask work, moral right or other intellectual property or proprietary right under the laws of any jurisdiction.

 

"License" means the license granted by Visualant to RatLab pursuant to Section 2.1 of this Agreement.

 

"Licensed Product" means any product or service of RatLab or its sublicensees intended for use in the Fields of Use and that incorporates or uses any of the Visualant IP.

 

"Third Party" means any individual, corporation, limited liability company, partnership, trust, association, governmental authority or other entity that is not a Party.

 

 

 

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"Third Party Infringement" means any past, present or future infringement, misappropriation, unauthorized use or other violation of any of the Visualant IP within the Field of Use by any Third Party.

 

"Visualant IP" means the Visualant Patents, any other intellectual property assets listed in the attached Exhibit A, and any other intellectual property or proprietary rights owned or controlled
by Visualant that are necessary or useful for exploitation of the Licensed Products.

 

"Visualant Patent" means:  (a) any patent or patent application owned or controlled by Visualant now or in the future listed, including any patents or patent applications listed under the heading of "Visualant Patents" in the attached Exhibit A,
and any patents that may issue from the pending patent applications listed in the attached Exhibit A; (b) any patent that may issue from any continuation or divisional that has priority based upon any of the patent applications described in (a) above; (c) any reissues, renewals, substitutions, re-examinations and extensions of any of the
patents described in (a) or (b) above; and (d) any foreign patents corresponding to any of the patents described in (a), (b) or (c) above.

 

Section 2.               License Grant; Covenants

 

2.1           License Grant.  Subject to the provisions of Section 2.2 below, Visualant hereby grants to RatLab an exclusive (within the Fields of Use), worldwide, non-transferable (except as described in Section
5.2), sublicensable (with the notice  of Visualant), royalty-bearing, right and license to use and exploit the Visualant IP within the Fields of Use.  Without limiting the generality of the foregoing, the license and rights granted herein include, without limitation, the rights to do the following: (a) make, have made, offer for sale, sell, use, distribute, have distributed, and import any products or services within the Fields of Use under the Visualant IP; (b) make Improvements of and to
the Visualant IP; (c) exercise any other rights under the Visualant IP, including the right to take any action against any past, present or future infringement of the Visualant IP in the Fields of Use; and (d) sublicense any of the licenses or rights granted hereunder, subject, however, to the prior notice  consent of Visualant.

 

2.2           Exclusivity.  During the Term, and so long as RatLab satisfies the milestones set forth in this Section 2.2 (the "Milestones") Visualant
will not grant to any Third Party any license under any of the Visualant IP to incorporate or utilize the Visualant IP in products or services intended for use in the Fields of Use.  The following Milestones will apply to RatLab's efforts to commercialize the Visualant IP:

 

(a)           Within six (6) months after the Effective Date, create an Affiliate for the purposes of commercializing the Visualant IP within the Fields of Use;

 

(b)           Within twenty-four (24) months after the Effective Date, obtain funding for such Affiliate so that the Affiliate can operate on a stand-alone basis (i.e., is able to support its own officers and staff, and conduct research either on its own or in conjunction with
RatLab);

 

(c)           Within thirty-six (36) months after the Effective Date, develop a demonstration unit of a Licensed Product; and

 

 

 

 

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(d)           Within forty-eight (48) months after the Effective Date, deliver the first License Fee to Visualant.

 

If RatLab fails to satisfy any of the Milestones, the restrictions on Visualant imposed by this Section 2.2 will terminate and RatLab's rights under the License will be non-exclusive for the remainder of the Term.

 

Section 3.               Intellectual Property Rights

 

3.1           Administration of Visualant IP.  Visualant will control the prosecution, maintenance, registration and other management of the Visualant IP.  Visualant will keep RatLab informed of the
status of all prosecution, maintenance, registration and other management activities related to the Visualant IP and will provide RatLab with a reasonable opportunity to advise Visualant on such activities.  Without limiting the generality of the foregoing, if Visualant chooses to abandon any portion of the Visualant IP, Visualant will provide RatLab written notice at least sixty (60) days prior to the last allowable date for filing or taking any other action required with respect to the prosecution,
maintenance or registration of such portion of the Visualant IP and RatLab may, at any time thereafter, take actions necessary to preserve the Visualant IP.

 

3.2           Third Party Infringement.

(a)           If any Third Party Infringement comes to the attention of either Party, then such Party will give the other Party prompt written notice thereof (including, without limitation, a statement of the facts which are known by the Party giving the notice and which such Party
believes might reasonably serve as a basis for a claim of Third Party Infringement, together with a copy of any documentation evidencing the same).

 

(b)           RatLab will have the first right to respond to, address, and/or prosecute any alleged Third Party Infringement by securing cessation of the infringement or initiating an action or suit against the infringer or otherwise responding to, addressing and/or prosecuting such
alleged Third Party Infringement.  To exercise this first right, RatLab must initiate bona fide action to respond to, address, and/or prosecute any alleged Third Party Infringement within ninety (90) days of learning of such infringement.  If RatLab chooses to institute suit or action against an alleged infringer, RatLab may bring such suit in its own name (or, if required by law, in its and Visualant’s name) and at its own expense.  Further, if RatLab institutes an action
or suit against an alleged infringer as provided in this Agreement, then (i) Visualant will fully and promptly cooperate and assist RatLab in connection with any such suit or action, and RatLab will pay Visualant’s reasonable attorneys fees and other out-of-pocket directly associated expenses.  RatLab will not settle any suits or actions in any manner relating to the Visualant IP without obtaining the prior written consent of RatLab, which will not be unreasonable withheld, delayed or conditioned.
After RatLab has recovered its reasonable attorney's fees and other out-of-pocket expenses directly related to any action, suit, or settlement for infringement of Visualant IP, the remaining damages, awards, or settlement proceeds will be divided as follows: fifty percent (50%) to RatLab and fifty percent (50%) to Visualant.

 

 

 

 

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(c)           If RatLab fails, within ninety (90) days of learning of an alleged Third Party Infringement, to secure cessation of the alleged Third Party Infringement, institute suit against the alleged infringer, or to otherwise respond to, address and/or prosecute the alleged Third
Party Infringement, then Visualant may, upon written notice to RatLab, assume full right and responsibility to institute suit or action against the alleged infringer.  If Visualant elects to commence an action as described above, then Visualant may do so in its own name (or if required by law, in its own and RatLab’s name) and at its won expense.  Further, if Visualant institutes an action or suit against an alleged infringer as provided in this Agreement, then RatLab will fully and
promptly cooperate and assist Visualant in connection with the action or suit, and Visualant will pay all of RatLab’s reasonable attorney fees and other out-of-pocket directly associated expenses.   Visualant will not settle any suits or actions in any manner relating to the Visualant IP without obtaining the prior written consent of RatLab, which will not be unreasonably withheld, delayed or conditioned. After Visualant has recovered its reasonable attorney’s fees and other out-of-pocket
expenses directly related to any action, suit, or settlement for infringement of Visualant IP, the remaining damages, awards, or settlement proceeds will be divided as follows:  fifty percent (50%) to Visualant and fifty percent (50%) to RatLab.

 

(d)           Neither RatLab nor Visualant is obligated under this Agreement to institute or prosecute a suit against any alleged infringer of the Visualant IP.

 

3.3           Ownership of Improvements.

 

(a)           By RatLab.

(i)           RatLab or its sublicensees will be the owner of any Intellectual Property Rights in any Improvement to the Visualant IP developed, created or invented by RatLab or its sublicensees at RatLab's expense and neither RatLab nor its sublicensees will be obligated to deliver
to Visualant any such Improvement pursuant to this Agreement; provided, however, RatLab will promptly notify Visualant of any such Improvements and license such Improvements to Visualant for use in certain fields of use pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the Visualant IP licensed to RatLab pursuant to this Agreement.

 

(ii)           Visualant will be the owner of any Intellectual Property Rights in any Improvement to the Visualant IP developed, created or invented by RatLab at Visualant's expense (e.g., pursuant to a separate research and development agreement or otherwise) and Visualant will not
be obligated to deliver to RatLab any such Improvement pursuant to this Agreement; provided, however, RatLab will promptly notify Visualant of any such Improvements and Visualant will license such Improvements to RatLab for use in the Fields of Use pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the Visualant IP licensed to RatLab pursuant to this Agreement.

 

 

 

 

14

 

 

(b)           By Visualant.  Visualant will be the owner of any Intellectual Property Right in any Improvement of the Visualant IP developed, created or invented by Visualant and Visualant will not be obligated
to deliver to RatLab any such Improvement pursuant this Agreement; provided, however, Visualant will promptly notify RatLab of any such Improvements and Visualant will license such Improvements to RatLab for use in the Fields of Use pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the Visualant IP licensed to RatLab pursuant to this Agreement.

 

3.4           Reservation of Rights; Ownership of IP.  Except as expressly provided in this Agreement, no title to or ownership of any Visualant IP is transferred to RatLab or any other person under this Agreement.  RatLab
acknowledges and agrees that Visualant is the sole owner of all right, title and interest in and to the Visualant IP listed on Schedule A hereto, and RatLab agrees that at the request of Visualant, RatLab will execute all instruments and documents and will take all other action necessary to insure that Visualant has vested title to the Visualant IP.  RatLab represents and warrants that it will not undertake any act or thing which in any
way impairs or is intended to impair any part of the right, title, interest or goodwill of Visualant in the Visualant IP.

 

Section 4.               Compensation

 

4.1           License Fee.  RatLab will pay Visualant five percent (5%) of the Gross Revenues received with respect to any Licensed Product incorporating one or more of the valid and unexpired Visualant
IP (the "License Fee").

 

4.2           Reporting and Payment.  Once RatLab satisfies the Milestone set forth in Section 2.2(d), within thirty (30) calendar days of the end of each subsequent calendar quarter (or portion thereof)
during the Term of this Agreement, RatLab will remit payment to Visualant for all License Fees earned during such calendar quarter (or portion thereof).  Each payment will be accompanied by a statement setting forth in reasonable detail the basis for such payment.  All amounts payable under this Agreement are payable in the lawful money of the United States.

 

4.3           Taxes.  RatLab will collect and pay any sales, use, excise, import or export value added or similar tax or duty not based on Visualant's or any of its affiliates' net income associated with
sales of the Licensed Products by RatLab.

 

Section 5.               Term and Termination

 

5.1           General.  Unless otherwise terminated pursuant to Section 5.2, the term of the License (the "Term") will commence as of the Effective
Date and will continue until the last to expire of the Visualant IP.

 

5.2           Early Termination.  RatLab may terminate this Agreement for its convenience upon thirty (30) days’ written notice to Visualant.  In addition, either Party may terminate the
Agreement by giving the other Party written notice of termination if:  (a) the other Party commits a material breach of this Agreement and fails to cure such breach within thirty (30) days after the non-breaching Party gives the breaching Party written notice of such breach; or (b) the bankruptcy, receivership or similar proceeding against the other Party which is not dismissed within thirty (30) days after it is commenced.

 

 

 

 

15

 

 

 

5.3           Effect of Expiration or Termination.  Upon any expiration or termination of the Term:  (a) the License will terminate immediately and automatically; provided, however, all sublicense
granted by RatLab  prior to the effective date of any termination of the Term will survive such termination; and (b) the Parties’ respective rights and obligations under Sections 3.3, 3.4, 5 and 6 of this Agreement will survive.

 

Section 6.               Miscellaneous

 

6.1           Waiver; Amendments.  The failure of any Party to insist, in any one or more instances, upon performance of any of the terms, covenants or conditions of this Agreement will not be construed as a
waiver or a relinquishment of any right or claim granted or arising hereunder or of the future performance of any such term, covenant, or condition, and such failure will in no way affect the validity of this Agreement or the rights and obligations of the parties hereto.  This Agreement may not be modified, amended or supplemented except by an agreement in writing signed by Visualant and RatLab.

 

6.2           Assignment and Binding Effect.  Neither Party may transfer or assign its rights or obligations under this Agreement without the
express written consent of the other Party; provided, however, RatLab may assign any of its rights or obligations under this Agreement to an Affiliate without the prior written consent of Visualant but subject to giving Visualant notice of such assignment and the terms and conditions thereof.  Subject to the foregoing, this Agreement will inure to the benefit of and will be binding upon the Parties and their respective successors and permitted assigns.

 

6.3           Governing Law.  This Agreement will be governed by and construed under the laws of the state of Washington, without giving effect to any contrary conflict of laws provisions.

 

6.4           Notices.  All notices and other communications hereunder will be in writing and will be deemed given (a) upon receipt if delivered personally (or if mailed by registered or certified mail),
(b) the day after dispatch if sent by overnight courier, (c) upon receipt if transmitted by telecopier or other means of facsimile transmission (and confirmed by a copy delivered in accordance with clause (a) or (b)), properly addressed to the parties at the following addresses:

	
RatLab:
	
RatLab, LLC.

	  	
4939 NE 65th Street

Seattle, WA  98115

 

	
Visualant:
	
Visualant, Inc.

	  	
500 Union Street, Ste. 406

Seattle, WA  98101

 

Any Party may change its address for such communications by giving notice thereof to the other parties in conformity with this Section.

 

 

 

16

 

 

 

6.5           Protection of the License in Bankruptcy.  The Parties expressly agree that the Visualant IP and RatLab Softwares "intellectual property" as defined in Section 101(35A) of the United States Bankruptcy
Code, 11 U.S.C. Section 101 et seq. (the "Bankruptcy Code").  In the event of any proceeding under the Bankruptcy Code for the bankruptcy, reorganization or protection of either Party, this Agreement shall be subject to Section 365(n) of the Bankruptcy Code.

 

6.6           Severability.  If any provision of this Agreement, or the application thereof, will for any reason and to any extent be held to be invalid or unenforceable, the remainder of this Agreement and
the application of such provision to other persons or circumstances will be interpreted so as best to reasonably effect the intent of the parties hereto.  The parties further agree to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the invalid or unenforceable provision.

 

6.7           Counterparts.  This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all of which together will constitute one and the same instrument
notwithstanding that all Parties are not signatories to each counterpart.

 

6.8           Entire Agreement.  This Agreement, together with any exhibit or attachments, constitutes the entire agreement between the Parties hereto with respect to the subject matter of this Agreement and
supersedes all prior negotiations, understandings and agreements between the Parties with respect to the subject matter of this Agreement.

 

[Remainder of Page Left Intentionally Blank]

 

 

 

 

 

 

 

 

 

17

 

EXHIBIT A

VISUALANT IP

VISUALANT PATENTS

	
1.
	
Schowengerdt, B.T., Furness, T.A., Melville, R.D., Schroder, K.E., Burstein, R.A., and Chinthammit, W. SYSTEM AND METHOD OF EVALUATING AN OBJECT USING ELECTROMAGNETIC ENERGY. International Patent Application No. PCT/US2007/017082.

	
2.
	
Schowengerdt, B.T., Furness, T.A., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE DISTRIBUTED EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Patent Application No. 11/831,662.

	
3.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E., and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Patent Application No. 11/831,717.

	
4.
	
Schowengerdt, B.T., Furness, T.A., Melville, R.D., Schroder, K.E., Burstein, R.A., and Chinthammit, W. SYSTEM AND METHOD OF EVALUATING AN OBJECT USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/820,938.

	
5.
	
Schowengerdt, B.T., Furness, T.A., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE DISTRIBUTED EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/834,662.

	
6.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/834,589.

	
7.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/871,639.

	
8.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E., and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/883,312.

	
9.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E. , and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/890,446.

 

 

 

 

18

 

 

EXHIBIT C

NON-EXCLUSIVE LICENSE AGREEMENT

(RATLAB SOFTWARE)

 

This Non-Exclusive License Agreement (this "Agreement"), dated as of October 23, 2008, is made by and between Visualant, Inc., a Nevada corporation ("Visualant") and RatLab, LLC, a Washington limited liability company ("RatLab").  Visualant
and RatLab (sometimes referred to herein individually as a "Party" and collectively as the "Parties") therefore agree as follows:

 

Section 1.               Definitions

 

"Affiliate" means a corporation, limited liability company, joint venture or other entity of which RatLab or its members has ownership and control of at least fifty percent (50%) of all outstanding shares or securities or other ownership interests that represent the power to
direct the management and policies of such entity.

 

"Confidential Information" means any confidential or proprietary information of a Party, including without limitation, trade secrets, functional and technical specifications, designs, drawings, translations, analysis, research, processes, computer programs (including, without
limitation, the RatLab Software), beta versions, algorithms, methods, ideas, "know how," and other technical information.

 

"Fields of Use" means the fields of use identified in the attached Exhibit A.

 

"Gross Revenue" means any revenue actually received by Visualant as a result of the sale to any of Visualant's customers or end users of Licensed Products; provided, however, that "Gross Revenue" does not include any (a) reimbursed expenses or costs that are passed through to
a customer or end user (e.g., travel), (b) taxes collected by Visualant for remittance to governmental authorities, or (c) refunds or credits.

 

"Improvement" means any advancement, development, improvement, enhancement, correction, modification, adaptation, translation, transformation, annotation, extension, compilation, collective work or derivative work.

 

"Intellectual Property Rights" means any patent, copyright, trademark, trade secret, mask work, moral right or other intellectual property or proprietary right under the laws of any jurisdiction.

 

"Licensed Product" means any product or service that includes the RatLab Software.

 

"RatLab Software" means the computer code (both source code and object code) and documentation listed in the attached Exhibit B.

 

"User" means an individual or entity to which Visualant provides a license to use the RatLab Software (as part of a Licensed Product) for such Licensee's own use and not for redistribution, subject to the restriction in Section 2.

 

 

 

19

 

 

 

Section 2.               License Grant; Restrictions

 

2.1           License Grant; Delivery of RatLab Software.  Subject to the terms and conditions of this Agreement including Visualant's payment of all fees due under this Agreement, RatLab hereby grants
to Visualant a non-exclusive, worldwide, non-transferable (except as described in Section 8.4), sublicensable, royalty-bearing right and license to do the following within the Fields of Use during the Term: (a) incorporate and utilize the RatLab Software in Licensed Products; (b) make Improvement to the RatLab Software for use in connection with the exercise of the rights described in Section 2.1(a); (c) incorporate the RatLab Software and Improvement to the RatLab Software into Licensed Products; (d) grant sublicenses
to Users to use the RatLab Software and Improvements to the RatLab Software in accordance with the terms and conditions of this Agreement; (e) make and use copies of the RatLab Software and Improvement to the RatLab Software in connection with the exercise of the rights described in subsections (a) through (d) of this Section 2.1; and (f) support and maintain the RatLab Software and Improvement to the RatLab Software.  Upon
execution of this Agreement, RatLab will deliver one or more master copies of the RatLab Software to Visualant.

 

2.2           No Third-Party Distribution.  Visualant may only sublicense rights to the RatLab Software directly to Users within the Fields of Use and may not market or distribute the RatLab Software through
any third party.  No User will have the right to further sublicense or distribute the RatLab Software to or through any third party.

 

2.3           User License Agreements.  Visualant must enter into a license agreement with each User, which agreement must:  (a) be no less protective of RatLab and the RatLab Software than this Agreement;
(b) provide for a limited, non-exclusive license to install and use the RatLab Software within Fields of Use and in accordance with this Agreement; (c) include a disclaimer that RatLab will have no liability to User including any liability for damages, whether direct, indirect, incidental or consequential or for loss of profits arising from or related to the use of the RatLab Software provided by Visualant to the User or Visualant's products or software; and (d) provide that RatLab is an intended third-party
beneficiary of such agreement.

 

2.4           Restrictions.  Visualant will not, and will not allow any User to: (a) make any copies of the RatLab Software or install the RatLab Software on any hardware or equipment other than a Licensed Product;
(b) de-compile, disassemble, or otherwise reverse engineer or attempt to reconstruct or discover any source code, algorithms or file formats or programming or interoperability interfaces of the RatLab Software or of any files contained or generated using the RatLab Software by any means whatsoever; (c) except for the rights granted to Visualant pursuant to Section 2.1(b), modify or create any derivative works from the RatLab Software or any part thereof or separate the RatLab Software into its component parts;
(d) merge the RatLab Software with any other software other than as expressly set forth in the documentation accompanying the RatLab Software (if any); (e) disclose to any third party any performance information or analysis relating to the RatLab Software; (f) except for the rights granted to Visualant pursuant to Section 2.1, sell, sublicense, lease, rent, loan, assign, convey or otherwise transfer the RatLab Software or any component thereof; (g) use the RatLab Software on a different operating system(s) than
that specified in the documentation accompanying the RatLab Software (if any); or (h) remove, obscure or alter any notice of copyright, trademark or other proprietary right appearing on or in the RatLab Software (including any component therein) or any documentation accompanying the RatLab Software.  Visualant will permit RatLab, at all reasonable times, and at RatLab's expense, to verify that the use of the RatLab is within the terms of this Agreement.

 

 

 

 

20

 

 

 

Section 3.               Intellectual Property Rights

 

3.1           Ownership of Improvements.

 

(a)           Visualant will be the owner of any Intellectual Property Right in any Improvement of the RatLab Software developed, created or invented by Visualant (subject to any Intellectual Property Rights of RatLab in the RatLab Software) [and Visualant will not be obligated to
deliver to RatLab any such Improvement pursuant to this Agreement; provided however, Visualant will promptly notify RatLab of any such Improvements and Visualant will license such Improvements to RatLab pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the "Visualant IP" licensed to RatLab on an exclusive basis pursuant to the Commercial License Agreement, dated October
23, 2008, between the Parties.

 

(b)           RatLab will be the owner of any Intellectual Property Right in any Improvement of the RatLab Software developed, created or invented by RatLab and RatLab will not be obligated to deliver to Visualant any such Improvement.

 

3.2           Reservation of Rights.  Except as expressly provided in this Agreement, no title to or ownership of any RatLab Software or any proprietary rights associated with the RatLab Software, is transferred
to Visualant or any other person under this Agreement.

 

Section 4.               Compensation

 

4.1           License Fee.  Visualant will pay RatLab five percent (5%) of the Gross Revenue received with respect to any Licensed Product incorporating any RatLab Software (the "License
Fee").

 

4.2           Reporting and Payment.  Within thirty (30) business days of the end of each calendar quarter (or portion thereof) during the Term of this Agreement, Visualant will remit payment to RatLab for all
License Fees earned during such calendar quarter (or portion thereof).  Each payment will be accompanied by a statement setting forth in reasonable detail the basis for such payment.  All amounts payable under this Agreement are payable in the lawful money of the United States.

 

4.3           Taxes.  Visualant will collect and pay any sales, use, excise, import or export value added or similar tax or duty not based on RatLab's or any of its affiliates' net income associated with sales
of the Licensed Products by Visualant.

 

Section 5.               Term and Termination

 

5.1           General.  Unless otherwise terminated pursuant to Section 5.2, the term of the License (the "Term") will commence as of the Effective
Date and will continue for a period of twenty (20) years.

 

 

 

 

21

 

 

 

5.2           Early Termination.  Either Party may terminate the Agreement by giving the other Party written notice of termination if:  (a) the other Party commits a material breach of this
Agreement and fails to cure such breach within thirty (30) days after the non-breaching Party gives the breaching Party written notice of such breach; or (b) the bankruptcy, receivership or similar proceeding against the other Party which is not dismissed within thirty (30) days after it is commenced.

 

5.3           Effect of Expiration or Termination.  Upon any expiration or termination of the Term:  (a) the license granted to Visualant pursuant to this Agreement will terminate immediately
and automatically; provided, however, all sublicense granted by Visualant prior to the effective date of any termination of the Term will survive such termination; and (b) the Parties' respective rights and obligations under Sections 2.4, 3, 5, 6 and 7 of this Agreement will survive.

 

Section 6.               Confidentiality

 

Each Party agrees to hold the Confidential Information of the other Party in the strictest confidence and not to disclose such Confidential Information to any third party, except as otherwise expressly provided by this Agreement.  Each Party will, however, be permitted to disclose relevant aspects of such Confidential Information
to its officers, employees, attorneys, or auditors, all on a need-to-know basis, provided that such individuals or entities have undertaken to protect the Confidential Information to the same extent as required under this Agreement.  Each Party will give the other Party notice immediately upon learning of any unauthorized use or disclosure of Confidential Information.  The obligations set forth in this Section 7
do not apply if and to the extent the Party receiving Confidential Information ("Receiving Party") establishes that:  (a) the information disclosed to the Receiving Party was already known to the Receiving Party, without obligation to keep it confidential; (b) the Receiving Party received the information in good faith from a third party lawfully in possession thereof without obligation to keep such information; (c) the information was publicly
known at the time of its receipt by the Receiving Party or has become publicly known other than by a breach of this Agreement; (d) the information is independently developed by the Receiving Party without use of the other Party's Confidential Information; or (e) the information is required to be disclosed by applicable statute or regulation or by judicial or administrative process; provided that, in the case of (e) above, the Receiving Party will use reasonable efforts under the circumstances to notify the other
Party of such requirements so as to provide such Party the opportunity to obtain such protective orders or other relief as the compelling court or other entity may grant.

 

Section 7.               Miscellaneous

 

7.1           No Warranties.  RATLAB MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH REGARD TO THE RATLAB SOFTWARE (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OR ANY IMPLIED WARRANTY ARISING OUT OF COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE).  FURTHER, RATLAB DOES NOT REPRESENT OR WARRANT THAT THE RATLAB SOFTWARE WILL MEET ALL OF VISUALANT'S OR ITS USERS' REQUIREMENTS, OR WILL ALWAYS BE AVAILABLE, ACCESSIBLE, UNINTERRUPTED, TIMELY, SECURE, ACCURATE, COMPLETE, ERROR-FREE, OR VIRUS-FREE.

 

 

 

22

 

 

 

7.2           Limitation of Liability.  EXCEPT FOR VIOLATION OF ANOTHER PARTY'S INTELLECTUAL PROPERTY RIGHTS OR BREACH OF SECTION 2.4, NEITHER PARTY'S AGGREGATE LIABILITY TO THE OTHER PARTY OR ANY THIRD PARTY
UNDER THIS AGREEMENT WILL EXCEED THE LICENSE FEES PAID BY VISUALANT UNDER THIS AGREEMENT, AND NEITHER PARTY WILL BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS, LOST REVENUE, LOST DATA, REPLACEMENT GOODS, OR INTERRUPTION OF USE OF ANY OF THE COCO PRODUCTS, WHETHER IN CONTRACT, TORT, NEGLIGENCE OR OTHERWISE, EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY THEREOF.

 

7.3           Waiver; Amendments.  The failure of any Party to insist, in any one or more instances, upon performance of any of the terms, covenants or conditions of this Agreement will not be construed as a
waiver or a relinquishment of any right or claim granted or arising hereunder or of the future performance of any such term, covenant, or condition, and such failure will in no way affect the validity of this Agreement or the rights and obligations of the parties hereto.  This Agreement may not be modified, amended or supplemented except by an agreement in writing signed by Visualant and RatLab.

 

7.4           Assignment and Binding Effect.  Neither Party may transfer or assign its rights or obligations under this Agreement without the
express written consent of the other Party; provided, however, RatLab may assign any of its rights or obligations under this Agreement to an Affiliate without the prior written consent of Visualant.  Subject to the foregoing, this Agreement will inure to the benefit of and will be binding upon the Parties and their respective successors and permitted assigns.

7.5           Governing Law.  This Agreement will be governed by and construed under the laws of the state of Washington, without giving effect to any contrary conflict of laws provisions.

 

7.5           Notices.  All notices and other communications hereunder will be in writing and will be deemed given (a) upon receipt if delivered personally (or if mailed by registered or certified mail),
(b) the day after dispatch if sent by overnight courier, (c) upon receipt if transmitted by telecopier or other means of facsimile transmission (and confirmed by a copy delivered in accordance with clause (a) or (b)), properly addressed to the parties at the following addresses:

	
RatLab:
	
RatLab, LLC.

	  	
4939 NE 65th Street

Seattle, WA  98115

 

	
Visualant:
	
Visualant, Inc.

	  	
500 Union Street, Ste. 406

Seattle, WA  98101

 

 

 

 

23

 

 

 

Any Party may change its address for such communications by giving notice thereof to the other parties in conformity with this Section.

 

7.6           Protection of the License in Bankruptcy.  The Parties expressly agree that the RatLab Software is "intellectual property" as defined in Section 101(35A) of the United States Bankruptcy Code,
11 U.S.C. Section 101 et. seq. (the "Bankruptcy Code").  In the event of any proceeding under the Bankruptcy Code for the bankruptcy, reorganization or protection of either Party, this Agreement will be subject to Section 365(n) of the Bankruptcy Code.

 

7.7           Severability.  If any provision of this Agreement, or the application thereof, will for any reason and to any extent be held to be invalid or unenforceable, the remainder of this Agreement
and the application of such provision to other persons or circumstances will be interpreted so as best to reasonably effect the intent of the parties hereto.  The parties further agree to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the invalid or unenforceable provision.

 

7.8           Counterparts.  This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all of which together will constitute one and the same instrument
notwithstanding that all Parties are not signatories to each counterpart.

 

7.9           Entire Agreement.  This Agreement, together with any exhibit or attachments, constitutes the entire agreement between the Parties hereto with respect to the subject matter of this Agreement
and supersedes all prior negotiations, understandings and agreements between the Parties with respect to the subject matter of this Agreement.

 

[Remainder of Page Left Intentionally Blank]

 

 

 

 

 

 

 

 

 

 

 

24

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be made and executed by duly authorized officers.

	
Visualant, Inc.

 

By:                                                                      

Name:                                                                   

Title:                                                                   

Date Signed:                                                               
	
RatLab, LLC

 

By:                                                          
                     

Name:                                                                           

Title:                                                                              

Date Signed:                                                                

 

[Signature Page to Non-Exclusive License Agreement (RatLab Software)]

 

 

 

 

 

 

 

 

 

25

 

 

 

EXHIBIT A

 

FIELDS OF USE

 

1. Verification of authenticity of various manufactured goods or substances when compared against a prestored standard of the spectral signature of authentic goods.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

EXHIBIT B

 

RATLAB SOFTWARE

 

Cyclops - Labview VIs    Version "Working"

Cyclops - Labview VIs    Version 01a "Master Fingerprint"

Cyclops - Labview VIs    Version "Cyclops_main modding for 30 LEDs.vi"

Cyclops - Labview Vis    Version "Cyclop30_DEMO.vi"

Cyclops - Labview VIs    Speech recognition    Version "Cyclop30_DEMO_sound_SR.vi"

Cyclops - Labview VIs    Speech recognition    Version "Cyclop30_DEMO_record_playback.vi"

Cyclops - Labview Vis    Version "Cyclop30_DEMO_v2.vi"

Cyclops - Labview VIs    Speech recognition    Version "Cyclop30_DEMO_v2.vi" 

Cyclops - Labview VIs    Version "Cyclops_NYC_DEMO.llb"

Tetraclops - ARM 7 Firmware 1.0 Labview dependent - Version 1

Tetraclops - ARM 7 Firmware 1.0 Labview dependent - Version 2

Tetraclops - ARM 7 Firmware 1.0 Labview dependent - Version 3

Tetraclops - ARM 7 Firmware 1.0 Labview dependent - Version 4

Tetraclops - ARM 7 Firmware 1.0 Labview dependent - Version 5

Tetraclops - ARM 7 Firmware 1.0 Labview dependent - Version 6

Tetraclops - ARM 7 Firmware 1.0 Labview dependent - Version 7

Tetraclops - ARM 7 Firmware 1.0 Labview dependent - Version 8

Tetraclops - CPLD Firmware - Version 1

Tetraclops - CPLD Firmware - Version 2

Tetraclops - CPLD Firmware - Version 3

Tetraclops - CPLD Firmware - Version 4

Tetraclops - CPLD Firmware - Version 5

Tetraclops - CPLD Firmware - Version 6

Tetraclops - CPLD Firmware - Version 7

Tetraclops - CPLD Firmware - Version 8

Tetraclops - CPLD Firmware - Version 9

Tetraclops - Labview VIs - Version 1

Tetraclops - Labview VIs - Version 2

Tetraclops - Labview VIs - Version 3

Tetraclops - Labview VIs - Version 4

Tetraclops - Labview VIs - Version 5

Tetraclops - Labview VIs - Version 6

Tetraclops - Labview VIs - Version 7

Tetraclops - Labview VIs - Version 8

Tetraclops - Server software - Java + My SQL - Version 1

Tetraclops - PDA communication software + User Interface- C++    Version 1

Tetraclops - ARM 7 Firmware 2.0 Labview independent - Version 1

Simulator, initial import (rev 1)

Simulator, first working classifier (rev 14)

Simulator, first working pca (rev 57)

 

 

 

 

27

 

 

 

Simulator, first working ica (rev 75)

Spectrographic reconstruction - C++ called by web page - Initial Version

Simulator, first working probability method (rev 95)

Object authentication - C DLL, called by labview - Version 2.0

Object authentication - C DLL, called by labview - Version 3.0

Object authentication - C DLL, called by labview - Version 4.0

Spectrographic reconstruction – C DLL called by LabView – first alpha test (rev 121)

Object authentication - C DLL, called by labview - Version 5.0

Object authentication - C DLL, called by labview - Version 6.0

Object authentication - C DLL, called by labview - Version 7.0

Object authentication – Java run on Server - First alpha test (rev 7)

Spectrographic reconstruction - C++ called by web page - Current version

Spectrographic reconstruction - C DLL called by LabView – Vancouver trip (rev 137) 

Spectrographic reconstruction - C++ run local on PC (sent to CBN) Version 1

Object authentication - Java run on Server - SF Demo version (rev 56)

Simulator, set up to find best gel filters

Spectrographic reconstruction - C++ run local on PC Version 2

Spectrographic reconstruction - C++ run local on PC Version 3

Spectrographic reconstruction - Java run on Server - first alpha test (rev 49)

Spectrographic reconstruction - Java run on Server - black and white cal (rev 68)

Server-in-the-Sky networking algorithms (v. 1.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28

 

 

 

EXHIBIT D

TEMPLATE LICENSE AGREEMENT

 

This Commercial License Agreement (this "Agreement"), dated as of ______________ (the "Effective Date"), is made by and between Visualant, Inc., a Nevada corporation ("Visualant")
and RatLab, LLC, a Washington limited liability company ("RatLab").  Visualant and RatLab (sometimes referred to herein individually as a "Party" and collectively as the "Parties") therefore agree as follows:

 

Section 1.               Definitions

 

"Affiliate" means a corporation, limited liability company, joint venture or other entity of which RatLab or its members has ownership and control of at least fifty percent (50%) of all outstanding shares or securities or other ownership interests that represent the power to
direct the management and policies of such entity.

 

"Fields of Use" _______________________________________________________________________________________

 

"Gross Revenue" means any revenue actually received by RatLab, or a RatLab Affiliate, as a result of the sale to any of RatLab’s or RatLab Affiliate’s customers or end users of Licensed Products that incorporate one or more of the unexpired Visualant IP; provided,
however, that "Gross Revenue" does not include any (a) reimbursed expenses or costs that are passed through to a customer or end user (e.g., travel), (b) taxes collected by RatLab for remittance to governmental authorities, or (c) refunds or credits.

 

"Improvement" means any advancement, development, improvement, enhancement, correction, modification, adaptation, translation, transformation, annotation, extension, compilation, collective work or derivative work to or based upon the Visualant IP.

 

"Intellectual Property Rights" means any patent, copyright, trademark, trade secret, mask work, moral right or other intellectual property or proprietary right under the laws of any jurisdiction.

 

"License" means the license granted by Visualant to RatLab pursuant to Section 2.1 of this Agreement.

 

"Licensed Product" means any product or service of RatLab or its sublicensees intended for use in the Fields of Use and that incorporates or uses any of the Visualant IP.

 

"Third Party" means any individual, corporation, limited liability company, partnership, trust, association, governmental authority or other entity that is not a Party.

 

"Third Party Infringement" means any past, present or future infringement, misappropriation, unauthorized use or other violation of any of the Visualant IP within the Field of Use by any Third Party.

 

 

 

29

 

 

 

"Visualant IP" means the Visualant Patents, any other intellectual property assets listed in the attached Exhibit A, and any other intellectual property or proprietary rights owned or controlled
by Visualant that are necessary or useful for exploitation of the Licensed Products.

 

"Visualant Patent" means:  (a) any patent or patent application owned or controlled by Visualant now or in the future listed, including any patents or patent applications listed under the heading of "Visualant Patents" in the attached Exhibit A,
and any patents that may issue from the pending patent applications listed in the attached Exhibit A; (b) any patent that may issue from any continuation or divisional that has priority based upon any of the patent applications described in (a) above; (c) any reissues, renewals, substitutions, re-examinations and extensions of any of the
patents described in (a) or (b) above; and (d) any foreign patents corresponding to any of the patents described in (a), (b) or (c) above.

 

Section 2.               License Grant; Covenants

 

2.1           License Grant.  Subject to the provisions of Section 2.2 below, Visualant hereby grants to RatLab an exclusive (within the Fields of Use), worldwide, non-transferable (except as described in Section
5.2), sublicensable (with the notice  of Visualant), royalty-bearing, right and license to use and exploit the Visualant IP within the Fields of Use.  Without limiting the generality of the foregoing, the license and rights granted herein include, without limitation, the rights to do the following: (a) make, have made, offer for sale, sell, use, distribute, have distributed, and import any products or services within the Fields of Use under the Visualant IP; (b) make Improvements of and to
the Visualant IP; (c) exercise any other rights under the Visualant IP, including the right to take any action against any past, present or future infringement of the Visualant IP in the Fields of Use; and (d) sublicense any of the licenses or rights granted hereunder, subject, however, to the prior notice  consent of Visualant.

 

2.2           Exclusivity.  During the Term, and so long as RatLab satisfies the milestones set forth in this Section 2.2 (the "Milestones") Visualant
will not grant to any Third Party any license under any of the Visualant IP to incorporate or utilize the Visualant IP in products or services intended for use in the Fields of Use.  The following Milestones will apply to RatLab's efforts to commercialize the Visualant IP:

 

(a)           Within six (6) months after the Effective Date, create an Affiliate for the purposes of commercializing the Visualant IP within the Fields of Use;

 

(b)           Within twenty-four (24) months after the Effective Date, obtain funding for such Affiliate so that the Affiliate can operate on a stand-alone basis (i.e., is able to support its own officers and staff, and conduct research either on its own or in conjunction with
RatLab);

 

(c)           Within thirty-six (36) months after the Effective Date, develop a demonstration unit of a Licensed Product; and

 

(d)           Within forty-eight (48) months after the Effective Date, deliver the first License Fee to Visualant.

 

 

 

30

 

 

 

If RatLab fails to satisfy any of the Milestones, the restrictions on Visualant imposed by this Section 2.2 will terminate and RatLab's rights under the License will be non-exclusive for the remainder of the Term.

 

Section 3.               Intellectual Property Rights

 

3.1           Administration of Visualant IP.  Visualant will control the prosecution, maintenance, registration and other management of the Visualant IP.  Visualant will keep RatLab informed of the
status of all prosecution, maintenance, registration and other management activities related to the Visualant IP and will provide RatLab with a reasonable opportunity to advise Visualant on such activities.  Without limiting the generality of the foregoing, if Visualant chooses to abandon any portion of the Visualant IP, Visualant will provide RatLab written notice at least sixty (60) days prior to the last allowable date for filing or taking any other action required with respect to the prosecution,
maintenance or registration of such portion of the Visualant IP and RatLab may, at any time thereafter, take actions necessary to preserve the Visualant IP.

 

3.2           Third Party Infringement.

 

(a)           If any Third Party Infringement comes to the attention of either Party, then such Party will give the other Party prompt written notice thereof (including, without limitation, a statement
of the facts which are known by the Party giving the notice and which such Party believes might reasonably serve as a basis for a claim of Third Party Infringement, together with a copy of any documentation evidencing the same).

 

(b)           RatLab will have the first right to respond to, address, and/or prosecute any alleged Third Party Infringement by securing cessation of the infringement or initiating an action or suit against the infringer or otherwise responding to, addressing and/or prosecuting such
alleged Third Party Infringement.  To exercise this first right, RatLab must initiate bona fide action to respond to, address, and/or prosecute any alleged Third Party Infringement within ninety (90) days of learning of such infringement.  If RatLab chooses to institute suit or action against an alleged infringer, RatLab may bring such suit in its own name (or, if required by law, in its and Visualant’s name) and at its own expense.  Further, if RatLab institutes an action
or suit against an alleged infringer as provided in this Agreement, then (i) Visualant will fully and promptly cooperate and assist RatLab in connection with any such suit or action, and RatLab will pay Visualant’s reasonable attorneys fees and other out-of-pocket directly associated expenses.  RatLab will not settle any suits or actions in any manner relating to the Visualant IP without obtaining the prior written consent of RatLab, which will not be unreasonable withheld, delayed or conditioned.
After RatLab has recovered its reasonable attorney's fees and other out-of-pocket expenses directly related to any action, suit, or settlement for infringement of Visualant IP, the remaining damages, awards, or settlement proceeds will be divided as follows: fifty percent (50%) to RatLab and fifty percent (50%) to Visualant.

 

 

 

31

 

 

 

(c)           If RatLab fails, within ninety (90) days of learning of an alleged Third Party Infringement, to secure cessation of the alleged Third Party Infringement, institute suit against the alleged infringer, or to otherwise respond to, address and/or prosecute the alleged Third
Party Infringement, then Visualant may, upon written notice to RatLab, assume full right and responsibility to institute suit or action against the alleged infringer.  If Visualant elects to commence an action as described above, then Visualant may do so in its own name (or if required by law, in its own and RatLab’s name) and at its won expense.  Further, if Visualant institutes an action or suit against an alleged infringer as provided in this Agreement, then RatLab will fully and
promptly cooperate and assist Visualant in connection with the action or suit, and Visualant will pay all of RatLab’s reasonable attorney fees and other out-of-pocket directly associated expenses.   Visualant will not settle any suits or actions in any manner relating to the Visualant IP without obtaining the prior written consent of RatLab, which will not be unreasonably withheld, delayed or conditioned. After Visualant has recovered its reasonable attorney’s fees and other out-of-pocket
expenses directly related to any action, suit, or settlement for infringement of Visualant IP, the remaining damages, awards, or settlement proceeds will be divided as follows:  fifty percent (50%) to Visualant and fifty percent (50%) to RatLab.

 

(d)           Neither RatLab nor Visualant is obligated under this Agreement to institute or prosecute a suit against any alleged infringer of the Visualant IP.

 

3.3           Ownership of Improvements.

 

(a)           By RatLab.

 

(i)           RatLab or its sublicensees will be the owner of any Intellectual Property Rights in any Improvement to the Visualant IP developed, created or invented by RatLab or its sublicensees at RatLab's expense and neither RatLab nor its sublicensees
will be obligated to deliver to Visualant any such Improvement pursuant to this Agreement; provided, however, RatLab will promptly notify Visualant of any such Improvements and license such Improvements to Visualant for use in certain fields of use pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the Visualant IP licensed to RatLab pursuant to this Agreement.

 

(ii)           Visualant will be the owner of any Intellectual Property Rights in any Improvement to the Visualant IP developed, created or invented by RatLab at Visualant's expense (e.g., pursuant to a separate research and development agreement or otherwise) and Visualant will not
be obligated to deliver to RatLab any such Improvement pursuant to this Agreement; provided, however, RatLab will promptly notify Visualant of any such Improvements and Visualant will license such Improvements to RatLab for use in the Fields of Use pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the Visualant IP licensed to RatLab pursuant to this Agreement.

 

(b)           By Visualant.  Visualant will be the owner of any Intellectual Property Right in any Improvement of the Visualant IP developed, created or invented by Visualant and Visualant will not be obligated
to deliver to RatLab any such Improvement pursuant this Agreement; provided, however, Visualant will promptly notify RatLab of any such Improvements and Visualant will license such Improvements to RatLab for use in the Fields of Use pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the Visualant IP licensed to RatLab pursuant to this Agreement.

 

 

 

32

 

 

 

3.4           Reservation of Rights; Ownership of IP.  Except as expressly provided in this Agreement, no title to or ownership of any Visualant IP is transferred to RatLab or any other person under this Agreement.  RatLab
acknowledges and agrees that Visualant is the sole owner of all right, title and interest in and to the Visualant IP listed on Schedule A hereto, and RatLab agrees that at the request of Visualant, RatLab will execute all instruments and documents and will take all other action necessary to insure that Visualant has vested title to the Visualant IP.  RatLab represents and warrants that it will not undertake any act or thing which in any
way impairs or is intended to impair any part of the right, title, interest or goodwill of Visualant in the Visualant IP.

 

Section 4.               Compensation

 

4.1           License Fee.  RatLab will pay Visualant five percent (5%) of the Gross Revenues received with respect to any Licensed Product incorporating one or more of the valid and unexpired Visualant IP (the
"License Fee").

 

4.2           Reporting and Payment.  Once RatLab satisfies the Milestone set forth in Section 2.2(d), within thirty (30) calendar days of the end of each subsequent calendar quarter (or portion thereof) during
the Term of this Agreement, RatLab will remit payment to Visualant for all License Fees earned during such calendar quarter (or portion thereof).  Each payment will be accompanied by a statement setting forth in reasonable detail the basis for such payment.  All amounts payable under this Agreement are payable in the lawful money of the United States.

 

4.3           Taxes.  RatLab will collect and pay any sales, use, excise, import or export value added or similar tax or duty not based on Visualant's or any of its affiliates' net income associated with sales
of the Licensed Products by RatLab.

Section 5.               Term and Termination

 

5.1           General.  Unless otherwise terminated pursuant to Section 5.2, the term of the License (the "Term") will commence as of the Effective
Date and will continue until the last to expire of the Visualant IP.

 

5.2           Early Termination.  RatLab may terminate this Agreement for its convenience upon thirty (30) days’ written notice to Visualant.  In addition, either Party may terminate the
Agreement by giving the other Party written notice of termination if:  (a) the other Party commits a material breach of this Agreement and fails to cure such breach within thirty (30) days after the non-breaching Party gives the breaching Party written notice of such breach; or (b) the bankruptcy, receivership or similar proceeding against the other Party which is not dismissed within thirty (30) days after it is commenced.

 

5.3           Effect of Expiration or Termination.  Upon any expiration or termination of the Term:  (a) the License will terminate immediately and automatically; provided, however, all sublicense
granted by RatLab  prior to the effective date of any termination of the Term will survive such termination; and (b) the Parties’ respective rights and obligations under Sections 3.3, 3.4, 5 and 6 of this Agreement will survive.

 

 

 

33

 

 

 

Section 6.                      Miscellaneous

 

6.1           Waiver; Amendments.  The failure of any Party to insist, in any one or more instances, upon performance of any of the terms, covenants or conditions of this Agreement will not be construed as a
waiver or a relinquishment of any right or claim granted or arising hereunder or of the future performance of any such term, covenant, or condition, and such failure will in no way affect the validity of this Agreement or the rights and obligations of the parties hereto.  This Agreement may not be modified, amended or supplemented except by an agreement in writing signed by Visualant and RatLab.

 

6.2           Assignment and Binding Effect.  Neither Party may transfer or assign its rights or obligations under this Agreement without the
express written consent of the other Party; provided, however, RatLab may assign any of its rights or obligations under this Agreement to an Affiliate without the prior written consent of Visualant but subject to giving Visualant notice of such assignment and the terms and conditions thereof.  Subject to the foregoing, this Agreement will inure to the benefit of and will be binding upon the Parties and their respective successors and permitted assigns.

 

6.3           Governing Law.  This Agreement will be governed by and construed under the laws of the state of Washington, without giving effect to any contrary conflict of laws provisions.

 

6.4           Notices.  All notices and other communications hereunder will be in writing and will be deemed given (a) upon receipt if delivered personally (or if mailed by registered or certified mail),
(b) the day after dispatch if sent by overnight courier, (c) upon receipt if transmitted by telecopier or other means of facsimile transmission (and confirmed by a copy delivered in accordance with clause (a) or (b)), properly addressed to the parties at the following addresses:

	
RatLab:
	
RatLab, LLC.

	  	
4939 NE 65th Street

Seattle, WA  98115

 

	
Visualant:
	
Visualant, Inc.

	  	
500 Union Street, Ste. 406

Seattle, WA  98101

 

Any Party may change its address for such communications by giving notice thereof to the other parties in conformity with this Section.

 

6.5           Protection of the License in Bankruptcy.  The Parties expressly agree that the Visualant IP and RatLab Softwares "intellectual property" as defined in Section 101(35A) of the United States Bankruptcy
Code, 11 U.S.C. Section 101 et seq. (the "Bankruptcy Code").  In the event of any proceeding under the Bankruptcy Code for the bankruptcy, reorganization or protection of either Party, this Agreement shall be subject to Section 365(n) of the Bankruptcy Code.

 

 

 

34

 

 

 

6.6           Severability.  If any provision of this Agreement, or the application thereof, will for any reason and to any extent be held to be invalid or unenforceable, the remainder of this Agreement and
the application of such provision to other persons or circumstances will be interpreted so as best to reasonably effect the intent of the parties hereto.  The parties further agree to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the invalid or unenforceable provision.

 

6.7           Counterparts.  This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all of which together will constitute one and the same instrument
notwithstanding that all Parties are not signatories to each counterpart.

 

6.8           Entire Agreement.  This Agreement, together with any exhibit or attachments, constitutes the entire agreement between the Parties hereto with respect to the subject matter of this Agreement and
supersedes all prior negotiations, understandings and agreements between the Parties with respect to the subject matter of this Agreement.

 

[Remainder of Page Left Intentionally Blank]

 

 

 

 

 

 

 

 

 

 

35

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be made and executed by duly authorized officers.

	
Visualant, Inc.

 

By:                                                         
                    

Name:                                                                         

Title:                                                    
                      

Date Signed:                                                               
	
RatLab, LLC

 

By:                                                                
              

Name:                                                                          

Title:                                                  
                         

Date Signed:                                                                

 

[Signature Page to Commercial License Agreement]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36

 

 

EXHIBIT A

VISUALANT IP

VISUALANT PATENTS

	
19.
	
Schowengerdt, B.T., Furness, T.A., Melville, R.D., Schroder, K.E., Burstein, R.A., and Chinthammit, W. SYSTEM AND METHOD OF EVALUATING AN OBJECT USING ELECTROMAGNETIC ENERGY. International Patent Application No. PCT/US2007/017082.

	
20.
	
Schowengerdt, B.T., Furness, T.A., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE DISTRIBUTED EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Patent Application No. 11/831,662.

	
21.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E., and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Patent Application No. 11/831,717.

	
22.
	
Schowengerdt, B.T., Furness, T.A., Melville, R.D., Schroder, K.E., Burstein, R.A., and Chinthammit, W. SYSTEM AND METHOD OF EVALUATING AN OBJECT USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/820,938.

	
23.
	
Schowengerdt, B.T., Furness, T.A., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE DISTRIBUTED EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/834,662.

	
24.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/834,589.

	
25.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/871,639.

	
26.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E., and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/883,312.

	
27.
	
Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E. , and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/890,446.

 

 

 

37

 

EXHIBIT E

	
Name
	
SHARES VESTED
	
SHARES TO VEST per Exhibit F

	
Furness, Thomas
	
700,000
	
500,000

	
Schowengerdt, Brian
	
700,000
	
500,000

	
Walker, Nicholas
	
80000
	  
	
Melville, Ross
	
100000
	  
	
Burstein, Bob
	
80000
	  
	
Burnette, John
	
80000
	  
	
Chinthammit, Winyu
	
20000
	  
	
Schroder, Konrad
	
80000
	  
	
Jones, Alden
	
10000
	  
	  	  	  
	
TOTAL
	
1,850,000
	
1,000,000

 

 

38

 

 

 

EXHIBIT F

VSUL Common Stock Vesting Schedule for each of Furness and Schowengerdt

150,000 shall vest upon the completion of the demonstration to JFE and/or another Japanese company associated with Visualant KK.  In the case that this milestone cannot be met with a Japanese Company, alternatively a demonstration to any international company associated with VSUL or Visualant KK.

150,000 shall vest upon the closing of a financing for the RATLAB affiliate that is developing commercial applications with in the Exclusive Fields.

200,000 shall vest upon the first commercial sale of a product developed pursuant to the Exclusive Fields license.

 

 

 

 

 

 

 

 

 

39Uranium Hunter Corporation: Exhibit 10.1 - Prepared by TNT Filings
   Inc.

    Exhibit 10.1 

Uranium Hunter Corporation 

2009 Consultant Stock Option, SAR and Stock Bonus Plan 

 ARTICLE 1 

 General Provisions 

1.1     Purpose. The purpose of the Uranium Hunter Corporation 2009 Consultant Stock Option, SAR and Stock Bonus Plan (the “Plan”) shall be to retain and compensate
independent consultants (the "Participants") of Uranium Hunter Corporation (the "Company") and its subsidiaries, if any, by way of granting (i) non-qualified stock options ("Stock Options"), (ii) non-qualified stock options with stock appreciation
rights attached ("Stock Option SAR’s"), and (iii) stock bonuses. Directors and officers of the Company are not eligible to participate in this Plan. In addition, no person shall be a Participant in this Plan in consideration for consulting or
other services related to capital raising activities for the Company or related to any stock promotion activities for the Company. For the purpose of this Plan, Stock Option SAR’s are sometimes collectively herein called "SAR’s;" and Stock
Options. The Stock Options to be granted are intended to be "non-qualified stock options" as described in Sections 83 and 421 of the Code. Furthermore, under the Plan, the terms "parent" and "subsidiary" shall have the same meaning as set forth in
Subsections (e) and (f) of Section 425 of the Code unless the context herein clearly indicates to the contrary. 

1.2     General. The terms and provisions of this Article I shall be applicable to Stock Options and SAR’s unless the context herein clearly indicates to the contrary.

1.3     Administration of the Plan. The Plan shall be administered by the Stock Plan Committee (the "Committee") appointed by the Board of Directors (the "Board") of the Company
and consisting of at least one member from the Board. The members of the Committee shall serve at the pleasure of the Board. The Committee shall have the power where consistent with the general purpose and intent of the Plan to (i) modify the
requirements of the Plan to conform with the law or to meet special circumstances not anticipated or covered in the Plan, (ii) suspend or discontinue the Plan, (iii) establish policies and (iv) adopt rules and regulations and prescribe forms for
carrying out the purposes and provisions of the Plan including the form of any "stock option agreements" ("Stock Option Agreements"). Unless otherwise provided in the Plan, the Committee shall have the authority to interpret and construe the Plan,
and determine all questions arising under the Plan and any agreement made pursuant to the Plan. Any interpretation, decision or determination made by the Committee shall be final, binding and conclusive. A majority of the Committee shall constitute
a quorum, and an act of the majority of the members present at any meeting at which a quorum is present shall be the act of the Committee. 

1.4     Shares Subject to the Plan.  Shares of stock ("Stock") covered by Stock Options, SAR’s, and stock bonuses shall consist of 20,000,000 shares of the Common Stock,
$.001 par value, of the Company. Either authorized and unissued shares or treasury shares may be delivered pursuant to the Plan. If any Option for shares of Stock, granted to a Participant lapses, or is otherwise terminated, the Committee may
grant Stock Options, SAR’s and stock bonuses for such shares of Stock to other Participants. However, neither Stock Options nor SAR’s shall be granted again for shares of Stock which have been subject to SAR’s which are surrendered in
exchange for cash or shares of Stock issued pursuant to the exercise of SAR’s as provided in Article II hereof. 

1.5     Participation in the Plan. The Committee shall determine from time to time those Participants who are to be granted Stock Options, SAR’s and stock bonuses and the
number of shares of Stock covered thereby.

1.6     Determination of Fair Market Value. As used in the Plan, "fair market value" shall mean on any particular day (i) if the Stock is listed or admitted for trading on any
national securities exchange or the National Market System of the Financial Industry Regulatory Authority (FINRA), Automated Quotation System, the last sale price, or if no sale occurred, the mean between the closing high bid and low asked
quotations, for such day of the Stock on the principal securities exchange on which shares of Stock are listed, (ii) if Stock is not traded on any national securities exchange but is quoted on the National Association of Securities Dealers, Inc.,
Automated Quotation System, the NASD electronic bulletin board, or any similar system of automated dissemination of quotations or securities prices in common use, the mean between the closing high bid and low asked quotations for such day of the
Stock on such system, (iii) if neither clause (i) nor (ii) is applicable, the mean between the high bid and low asked quotations for the Stock as reported by the National Quotation Bureau, Incorporated if at least two securities dealers have
inserted both bid and asked quotations for shares of the Stock on at least five (5) of the ten (10) preceding days, (iv) in lieu of the above, if actual transactions in the shares of Stock are reported on a consolidated transaction reporting system,
the last sale price of the shares of Stock on such system or, (v) if none of the conditions set forth above is met, the fair market value of shares of Stock as determined by the Board. Provided, for purposes of determining "fair market value" of the
Common Stock of the Company, such value shall be determined without regard to any restriction other than a restriction which will never lapse. 

1.7     Adjustments Upon Changes in Capitalization. The aggregate number of shares of Stock under Stock Options granted under the Plan, the Option Price and the total number of
shares of Stock which may be purchased by a Participant on exercise of a Stock Option shall be approximately adjusted by the Committee to reflect any recapitalization, stock split, merger, consolidation, reorganization, combination, liquidation,
stock dividend or similar transaction involving the Company except that a dissolution or liquidation of the Company or a merger or consolidation in which the Company is not the surviving or the resulting corporation, shall cause the Plan and any
Stock Option, or SAR granted thereunder, to terminate upon the effective date of such dissolution, liquidation, merger or consolidation.  Provided, that for the purposes of this Section 1.7, if any merger, consolidation or combination occurs in
which the Company is not the surviving corporation and is the result of a mere change in the identity, form or place of organization of the Company accomplished in accordance with Section 368(a)(1)(F) of the Code, then, such event will not cause a termination. Appropriate adjustment may also be made by the Committee in the
terms of a SAR to reflect any of the foregoing changes. 

1.8     Amendment and Termination of the Plan. The Plan shall terminate at midnight, December 20, 2012, but prior thereto may be altered, changed, modified, amended or terminated
by written amendment approved by the Board. Provided, that no action of the Board may, without the approval of the Board of Directors, increase the aggregate number of shares of Stock which may be purchased under Stock Options, SAR’s or stock
bonuses granted under the Plan; or withdraw the administration of the Plan from the Committee. Except as provided in this Article I, no amendment, modification or termination of the Plan shall in any manner adversely affect any Stock Option or SAR
theretofore granted under the Plan without the consent of the affected Participant. 

1.9     Effective Date. The Plan shall be effective December 21, 2009. 

1.10     Securities Law Requirements. The Company shall have no liability to issue any Stock hereunder unless the issuance of such shares would comply with any applicable federal
or state securities laws or any other applicable law or regulations thereunder. 

1.11     Separate Certificates.  Separate certificates representing the Common Stock of the Company to be delivered to a Participant upon the exercise of any Stock Option, or SAR
will be issued to such Participant. 

1.12     Payment for Stock; Receipt of Stock or Cash in Lieu of Payment. 

             (a)     Payment for Stock. Payment for shares of Stock acquired under this Plan shall be made in full and in cash or check made payable to the Company.
Provided, payment for shares of Stock purchased under this Plan may also be made in Common Stock of the Company or a combination of cash and Common Stock of the Company in the event that the purchase of shares is pursuant to the exercise of rights
under an SAR attached to the Option and which is exercisable on the date of exercise of the Option. In the event that Common Stock of the Company is utilized in consideration for the purchase of Stock upon the exercise of a Stock Option, then, such
Common Stock shall be valued at the "fair market value" as defined in Section 1.6 of the Plan. 

             (b)     Receipt of Stock or Cash in Lieu of Payment. Furthermore, a Participant may exercise an Option without payment of the Option Price in the event that
the exercise is pursuant to rights under an SAR attached to the Option and which is exercisable on the date of exercise of the Option. In the event an Option with an SAR attached is exercised without payment of the Option Price, the Participant
shall be entitled to receive either (i) a cash payment from the Company equal to the excess of the total fair market value of the shares of Stock on such date as determined with respect to which the Option is being exercised over the total cash
Option Price of such shares of Stock as set forth in the Option or (ii) that number of whole shares of Stock as is determined by dividing (A) an amount equal to the fair market value per share of Stock on the date of exercise into (B) an amount
equal to the excess of the total fair market value of the shares of Stock on such date with respect to which the Option is being exercised over the total cash Option Price of such shares of Stock as set forth in the Option, and fractional shares
will be rounded to the next lowest number and the Participant will receive cash in lieu thereof.

1.13     Incurrence of Disability.  A Participant shall be deemed to have terminated consulting and incurred a disability ("Disability") if such Participant suffers a physical or
mental condition which, in the judgment of the Committee, totally and permanently prevents a Participant from engaging in any substantial gainful consulting with the Company or a subsidiary.

1.14     Grants of Options and Stock Option Agreement.  Each Stock Option and/or SAR granted under this Plan shall be evidenced by the minutes of a meeting of the Committee or by
the written consent of the Committee and by a written Stock Option Agreement effective on the date of grant and executed by the Company and the Participant.  Each Option granted hereunder shall contain such terms, restrictions and conditions as the
Committee may determine, which terms, restrictions and conditions may or may not be the same in each case. 

1.15     Use of Proceeds. The proceeds received by the Company from the sale of Stock pursuant to the exercise of Options granted under the Plan shall be added to the Company's
general funds and used for general corporate purposes. 

1.16     Non-Transferability of Options.  Except as otherwise herein provided, any Option or SAR granted shall not be transferable otherwise than by will or the laws of descent
and distribution, and the Option may be exercised, during the lifetime of the Participant, only by him or her. More particularly (but without limiting the generality of the foregoing), the Option and/or SAR may not be assigned, transferred (except
as provided above), pledged or hypothecated in any way, shall not be assignable by operation of law and shall not be subject to execution, attachment, or similar process.  Any attempted assignment, transfer, pledge, hypothecation, or other
disposition of the Option and/or SAR contrary to the provisions hereof shall be null and void and without effect. 

1.17     Additional Documents on Death of Participant. No transfer of an Option and/or SAR by the Participant by will or the laws of descent and distribution shall be effective to
bind the Company unless the Company shall have been furnished with written notice and an unauthenticated copy of the will and/or such other evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by
the successor to the Option and/or SAR of the terms and conditions of such Option and/or SAR. 

1.18     Changes in Consultant Relationships. So long as the Participant shall continue to be a consultant of the Company or any one of its subsidiaries, any Option granted to him
or her shall not be affected by any change of duties or position. Nothing in the Plan or in any Stock Option Agreement which relates to the Plan shall confer upon any Participant any right to continue as a consultant of the Company or of any of its subsidiaries, or interfere in any way with the right of the
Company or any of its subsidiaries to terminate the consulting arrangement at any time. 

1.19     Shareholder Rights. No Participant shall have a right as a shareholder with respect to any shares of Stock subject to an Option prior to the purchase of such shares of
Stock by exercise of the Option. 

1.20     Right to Exercise Upon Company Ceasing to Exist. Where dissolution or liquidation of the Company or any merger consolidation or combination in which the Company is not
the surviving corporation occurs, the Participant shall have the right immediately prior to such dissolution, liquidation, merger, consolidation or combination, as the case may be, to exercise, in whole or in part, his or her then remaining Options
whether or not then exercisable, but limited to that number of shares that can be acquired without causing the Participant to have an "excess parachute payment" as determined under Section 280G of the Code determined by taking into account all of
Participant's "parachute payments" determined under Section 280G of the Code. Provided, the foregoing notwithstanding, after the Participant has been afforded the opportunity to exercise his or her then remaining Options as provided in this Section
1.21, and to the extent such Options are not timely exercised as provided in this Section 1.21, then, the terms and provisions of this Plan and any Stock Option Agreement will thereafter continue in effect, and the Participant will be entitled to
exercise any such remaining and unexercised Options in accordance with the terms and provisions of this Plan and such Stock Option Agreement as such Options thereafter become exercisable. Provided further, that for the purposes of this Section 1.21,
if any merger, consolidation or combination occurs in which the Company is not the surviving corporation and is the result of a mere change in the identity, form, or place of organization of the Company accomplished in accordance with Section
368(a)(1)(F) of the Code, then, such event shall not cause an acceleration of the exercisability of any such Options granted hereunder.

1.21     Assumption of Outstanding Options and SAR’s.  To the extent permitted by the then applicable provisions of the Code, any successor to the Company succeeding to, or
assigned the business of, the Company as the result of or in connection with a corporate merger, consolidation, combination, reorganization or liquidation transaction shall assume Options and SAR’s outstanding under the Plan or issue new
Options and/or SAR’s in place of outstanding Options and/or SAR’s under the Plan, as determined in its sole discretion. 

 ARTICLE II 

 Terms of Stock Options and Exercise 

2.1     General Terms. 

            (a)     Grant and Terms for Stock Options. Stock Options shall be granted by the Committee on the following terms and conditions: No Stock Option shall be
exercisable within six months from the date of grant (except as specifically provided in Subsection 2.l(c) hereof, with regard to the death or Disability of a Participant), nor more than five years after the date of grant. Subject to such
limitation, the Committee shall have the discretion to fix the period (the "Option Period") during which any Stock Option may be exercised. Stock Options granted shall not be transferable except by will or by the laws of descent and distribution,
Stock Options shall be exercisable only by the Participant while actively retained as a consultant by the Company or a subsidiary, except that (i) any such Stock Option granted and which is otherwise exercisable, may be exercised by the personal
representative of a deceased Participant within 12 months after the death of such Participant (but not beyond the Option Period of such Stock Option), (ii) if a Participant terminates his position as a consultant with the Company or a subsidiary on
account of Retirement, such Participant may exercise any Stock Option which is otherwise exercisable at any time within three months of such date of termination and (iii) if a Participant terminates his position as a consultant with the Company or a
subsidiary on account of incurring a Disability, such Participant may exercise any Stock Option which is otherwise exercisable at any time within 12 months of such date of termination. If a Participant should die during the applicable three-month or
12-month period following the date of such Participant's termination on account of Disability, the rights of the personal representative of such deceased Participant as such relate to any Stock Options granted to such deceased Participant shall be
governed in accordance with Subsection 2.1(a)(i) of this Article II. 

            (b)     Option Price.  The option price ("Option Price") for shares of Stock subject to a Stock Option shall be determined by the Committee, but in no event
shall the Option Price of Stock Options be less than 85% of the "fair market value" of the Stock on the date of grant. 

            (c)     Acceleration of Otherwise Unexercisable Stock Option on Death, Disability or Other Special Circumstances. The Committee, in its sole discretion, may
permit (i) a Participant who terminates his position as a consultant due to a Disability, (ii) the personal representative of a deceased Participant, or (iii) any other Participant who terminates his position as a consultant upon the occurrence of
special circumstances (as determined by the Committee) to exercise and purchase (within three months of such date of termination of consulting arrangement, or 12 months in the case of a deceased or disabled Participant; all or any part of the shares
subject to Stock Option on the date of the Participant's Disability, death, or as the Committee otherwise so determines, notwithstanding that all installments, if any, with respect to such Stock Option, had not accrued on such date. Provided, such
discretionary authority of the Committee shall not be exercised with respect to any Stock Option (or portion thereof) if the applicable six-month waiting period for exercise had not expired except in the event of the death or disability of the
Participant when the personal representative of the deceased Participant or the disabled Participant may, with the consent of the Committee, exercise such Stock Option notwithstanding the fact that the applicable six-month waiting period had not yet
expired. 

            (d)     Number of Stock Options Granted. Participants may be granted more than one Stock Option. In making any such determination, the Committee shall obtain
the advice and recommendation of the officers of the Company or a subsidiary which have supervisory authority over such Participants. The granting of a Stock Option under the Plan shall not affect any outstanding Stock Option previously granted to a Participant under the Plan. 

             (e)     Notice of Exercise Stock Option. Upon exercise of a stock option, a Participant shall give written notice to the Secretary of the Company, or other
officer designated by the Committee, at the Company's principal executive office. No Stock shall be issued to any Participant until the Company receives full payment for the Stock purchased, if applicable, and any required state and federal
withholding taxes. 

 ARTICLE III  

 SAR’s 

 3.1     General Terms. 

            (a)     Grant and Terms of SAR’s.  The Committee may grant SAR’s to Participants in connection with Stock Options granted under the Plan. SAR’s
shall not be exercisable (i) earlier than six months from the date of grant except as specifically provided in Subsection 3.l(b) hereof in the case of the death or Disability of a Participant, and (ii) shall terminate at such time as the Committee
determines and shall be exercised only upon surrender of the related Stock Option and only to the extent that the related Stock Option (or the portion thereof as to which the SAR is exercisable) is exercised. SAR’s may be exercised only by the
Participant while actively engaged as a consultant by the Company or a subsidiary except that (i) any SAR’s previously granted to a Participant which are otherwise exercisable may be exercised, with the approval of the Committee, by the
personal representative of a deceased Participant, even if such death should occur within six months of the date of grant (but not beyond the expiration date of such SAR), and (ii) if a Participant terminates his position as a consultant with the
Company or a subsidiary, as the case may be, on account of incurring a Disability, such Participant may exercise any SAR’s which are otherwise exercisable, with the approval of the Committee, anytime within 12 months of termination by
Disability. If a Participant should die during the applicable three-month period following the applicable 12 month period following the date of termination on account of Disability, the rights of the personal representative of such deceased
Participant as such relate to any SAR’s granted to such deceased Participant shall be governed in accordance with (i) of the second sentence of this Subsection 3.l(a) of this Article III. The applicable SAR shall (i) terminate upon the
termination of the underlying Stock Option, as the case may be, (ii) only be transferable at the same time and under the same conditions as the underlying Stock Option is transferable, (iii) only be exercised when the underlying Stock Option is
exercised, and (iv) may be exercised only if there is a positive spread between the Option Price, as applicable and the "fair market value" of the Stock for which the SAR is exercised. 

             (b)     Acceleration of Otherwise Unexercisable SAR’s upon Death, Disability or Other Special Circumstances. The Committee, in its sole discretion, may permit (i) a Participant who terminates his position as a consultant with the Company or a subsidiary due to a Disability, (ii) the personal representative of such deceased Participant, or
(iii) any other Participant who terminates employment as  a consultant with the Company or a subsidiary upon the occurrence of special circumstances (as determined by the Committee) to exercise (within 12 months in the case of a disabled or deceased
Participant) all or any part of any such SAR’s previously granted to such Participant as of the date of such Participant's Disability, death, or as the Committee otherwise so determines, notwithstanding that all installments, if any with
respect to such SAR’s, had not accrued on such date. Provided, such discretionary authority of the Committee may not be exercised with respect to any SAR (or portion thereof if the applicable six-month waiting period for exercise had not
expired as of such date, except (i) in the event of the Disability of the Participant or (ii) the death of the Participant, when such disabled Participant or the personal representative of such deceased Participant may, with the consent of the
Committee, exercise such SAR’s notwithstanding the fact that the applicable six-month waiting period had not yet expired. 

             (c)     Form of Payment of SAR’s. The Participant may request the method and combination of payment upon the exercise of a SAR; however, the Committee
has the final authority to determine whether the value of the SAR shall be paid in cash or shares of Stock or both. Upon exercise of a SAR, the holder is entitled to receive the excess amount of the "fair market value" of the Stock (as of the date
of exercise) for which the SAR is exercised over the Option Price, as applicable, under the related Stock Option, as the case may be. All applicable federal and state withholding taxes will be paid by the Participant to the Company upon the exercise
of a SAR since the excess amount described above will be required to be included within taxable income in accordance with Sections 61 and 83 of the Code. 

	
Uranium Hunter Corporation
	
	
 
	
	
 
	
	
 
	
	
By: /s/ Reno J. Calibrigo
	
	
Reno J. Calibrigo, Chief Executive Officer and President
	
	
 
	
	
Date Plan adopted and approved by the Board of Directors:
	
	
December 21, 2009.

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