Visualant Incorporated entered into a Letter of Intent with Sumitomo Precision Products Co., Ltd. Under the terms of the LOI, the parties intend to enter into a Joint Development Agreement for the commercialization of Visualant's patented Spectral Pattern Matching (SPM) technology. SPP and Visualant are expected to enter into a license agreement which will provide SPP with an exclusive license to access all related IP of the SPM technology in an exclusive territory. The maximum initial license payment under such a license agreement would be USD 1 million. The exact amount of the initial payment and the terms of the exclusive territory are to be determined by the parties. The parties have been working together since 2011, developing and testing the SPM products, analyzing the market potential for the SPM technology and developing a product plan.