Document:

Exhibit 10.4

 

EXCHANGE AGREEMENT

 

This EXCHANGE AGREEMENT
(this “Agreement”) is made effective as of July 14, 2017 (the “Execution Date”) by and among
Avant Diagnostics, Inc., a Nevada corporation (the “Company”) and Coastal Investment Partners LLC (the “Investor”).

 

RECITALS

 

WHEREAS, the Company
and the Investor entered into certain Securities Purchase Agreement dated July 6, 2016 (the “Purchase Agreement”),
pursuant to which the Company issued to the Investor a convertible promissory note (the “Existing Note”), in
the aggregate principal amount of $225,000 and having an initial maturity date of January 5, 2017, in accordance with the terms
of the Purchase Agreement;

 

WHEREAS, the Company
acknowledges that the Existing Note is currently in default (collectively, the “Default”);

 

WHEREAS, the Company
desires, and the Investor agrees, that the Investor exchange (the “Exchange”) the Existing Note for a new convertible
promissory note (the “New Note”), in the form attached hereto as Exhibit A. The New Note shall have a
principal balance of $442,325.00 (three hundred forty thousand two five hundred fifty dollars) (which amount is original principal
of the Existing Note plus interest, and penalties minus $40,000, which reflects a prepayment of $50,000 with a 25% prepayment penalty),
a maturity date of July 14, 2019, accrue interest at a rate of eight (8%) per annum, a fixed conversion price equal to $0.06 per
share, and other terms as provided in this Agreement and the New Note. The shares of Common Stock in the New Note shall be referred
to as the “Conversion Shares”;

 

WHEREAS, each of the
Convertible Note and the Conversion Shares, is intended to qualify as an exempted security under Section 3(a)(9) of the Securities
Act of 1933, as amended (the “Securities Act”).

 

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

 

ARTICLE I

THE EXCHANGE

 

1.1 Closing.
Subject to the terms and conditions set forth in this Agreement, the Company and the Investor shall exchange the Existing
Note at the Note Outstanding Balance in consideration for the issuance of the New Note with a total principal balance of
$340,250.00. The closing of the Exchange and issuance of the Convertible Note (the “Closing”) shall take
place at the offices of the Company, on the date hereof or such other date as the parties shall agree (the “Closing
Date”).

 

1.2 Exchange.

 

(a) Investor
Obligations. At the Closing, the Investor shall deliver or promptly cause to be delivered to the Company (i) the Existing
Note, and (ii) an executed copy of this Agreement.

 

(b) Company
Obligations. At the Closing, the Company shall deliver or promptly cause to be delivered to the Investor (i) the New
Note, and (ii) an executed copy of this Agreement.

 

(c) Existing
Note. Effective as of the Closing Date, the Existing Note shall be deemed automatically canceled and of no further force
or effect and shall thereafter represent only the right to receive the New Note.

 

1.3 Pledge
Agreement. The Company shall grant a security interest in all of its assets (“Collateral”) to Holder to secure
Company’s repayment of the Note. The security interest shall be memorialized in the Pledge Agreement and shall be in such
form as attached hereto as Exhibit B.

 

     

     

    

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES

 

2.1 Investor
Representations and Warranties . The Investor hereby represents and warrants to the Company as follows on the
Execution Date and the Closing Date:

 

(a) Organization;
Authority. The Investor, if not a natural person, is an entity duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization. The Investor has the requisite power and authority to enter into and
to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. This
Agreement has been duly executed by the Investor, and when delivered by the Investor in accordance with the terms hereof,
will constitute the valid and legally binding obligation of the Investor, enforceable against it in accordance with its
terms.

 

(b) Ownership
of the Existing Note. The Investor is the sole owner of the Existing Note, free and clear of any and all liens, claims
and encumbrances of any kind. The Investor has not assigned any rights in the Existing Notes to any party.

  

(c) Investment
Intent. The Investor is acquiring the New Note as principal for its own account for investment purposes only and not with
a view to or for distributing or reselling such New Note or any part thereof, except pursuant to sales that are exempt from
the registration requirements of the Securities Act and/or sales registered under the Securities Act. The Investor does
not have any agreement or understanding, directly or indirectly, with any person or entity to distribute the New Note.
Notwithstanding anything in this Section 2.1(c) to the contrary, by making the representations herein, the Investor
does not agree to hold the New Note for any minimum or other specific term and reserves the right to dispose of the New Note
at any time in accordance with or pursuant to a registration statement or an exemption from the registration requirements
under the Securities Act.

 

(d) Investor
Status. At the time the Investor was offered the New Note, it was, at the date hereof it is, and on the date it converts
the New Note, it will be, an “accredited investor” as defined in Rule 501(a) of Regulation D under the
Securities Act. The Investor is not a broker-dealer.

 

(e) General
Solicitation. The Investor is not acquiring the New Note as a result of or subsequent to any advertisement,
article, notice or other communication regarding the New Note published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other general solicitation or general
advertisement.

 

(f) Reliance.
The Investor understands and acknowledges that (i) the New Note is being offered and sold to it without
registration under the Securities Act in a transaction that is exempt from the registration provisions of the Securities Act,
and (ii) the availability of such exemption depends in part on, and the Company will rely upon the accuracy and
truthfulness of, the foregoing representations, and the Investor hereby consents to such reliance.

 

(g) Brokers
and Finders. The Investor has no knowledge of any person who will be entitled to or make a claim for payment of any
finder fee or other compensation as a result of the consummation of the transactions contemplated by this Agreement.

 

(h) Experience.
Investor has such knowledge, sophistication and experience in business and financial matters so as to be capable of
evaluating the merits and risks of the prospective investment in the New Note, and has so evaluated the merits and risks of
such investment. Investor is able to bear the economic risk of an investment in the New Note and, at the present time, is
able to afford a complete loss of such investment..

 

(i) Access
to Information . Such Investor acknowledges that it has had the opportunity to review this Agreement (including all exhibits
and schedules thereto) and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive
answers from, representatives of the Company concerning the terms and conditions of the New Note; (ii) access to information about
the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable
it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can
acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

    	 	2	 

     

    

 

2.2 Company
Representations and Warranties . The Company hereby makes the following representations and warranties to each
Investor on the Execution Date and on the Closing Date:

 

(a) Organization
and Qualification. The Company is a corporation incorporated, validly existing and in good standing under the laws of the
State of Nevada, with the requisite corporate power and authority to own and use its properties and assets and to carry on
its business as currently conducted. The Company is duly qualified as a foreign corporation to do business and is in good
standing in every jurisdiction where the nature of the business it conducts makes such qualification necessary, except where
the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result
in: (i) a material adverse effect on the legality, validity or enforceability of the New Note, or this Agreement, (ii) a
material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of
the Company, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely
basis its obligations under the New Note, or this Agreement (any of (i), (ii) or (iii), a ” Material Adverse
Effect”).

 

(b) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and to issue the New Note and the Conversion Shares, upon conversion of the Convertible Note
in accordance with the terms of the New Note, and otherwise to carry out its obligations hereunder and thereunder. The
execution, delivery and performance of this Agreement and any other agreements and the consummation of the transactions
contemplated hereby and thereby have been duly authorized by the Company’s Board of Directors, and no further consent
or authorization of the Company, its Board of Directors (including any committee thereof) or any class of the Company’s
stockholders is required. This Agreement, the New Note have been duly executed by the Company and, when delivered in
accordance with the terms hereof, will constitute the valid and binding obligations of the Company enforceable against the
Company, in accordance with their terms, except: (i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights
generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

  

(c) Issuance
of the New Note. The New Note is duly authorized and, when issued and paid for in accordance with this Agreement, will be
duly and validly issued, fully paid and nonassessable. The Conversion Shares, when issued in accordance with the terms of the
New Note, will be validly issued, fully paid and nonassessable, free and clear of all liens imposed by the Company other than
restrictions on transfer provided for in the New Note or under applicable securities laws.

 

(d) No
Conflicts. The execution, delivery and performance of this Agreement, and the New Note and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for
issuance, as applicable, of the Conversion Shares will not, (i) result in a violation of the articles of incorporation of the
Company, as amended (the ” Certificate of Incorporation “) or the bylaws of the Company (the
“Bylaws”) or (ii) result in a violation of any law, rule, regulation, order, judgment or decree (including
United States federal and state securities laws and regulations and rules or regulations of any self-regulatory organizations
to which either the Company or its securities are subject) applicable to the Company or by which any property or asset of the
Company is bound or affected. The Company is not in violation of its Certificate of Incorporation, Bylaws or other
organizational documents.

 

(e) Absence of
Certain Changes. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection
pursuant to any bankruptcy or receivership law nor does the Company have any knowledge or reason to believe that
its creditors intend to initiate involuntary bankruptcy proceedings with respect to the Company.

 

(f) Certain
Fees. No fees or commissions will be payable by the Company to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this
Agreement.

 

    	 	3	 

     

    

 

ARTICLE III

OTHER COVENANTS

 

3.1 Securities
Laws. The Investor acknowledges that the New Note, and the Conversion Shares, have not been registered under the
Securities Act and may only be disposed of pursuant to an available exemption from or in a transaction not subject to the
registration requirements of the Securities Act.

 

3.2 Restrictive
Legend. The Investor agrees to the imprinting of the following legend on the Convertible Note and Conversion Shares:

 

THESE SECURITIES
HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

3.3 Reservation
of Shares . The Company shall at all times have authorized and reserved for the purpose of issuance a sufficient number of
Conversion Shares.

 

ARTICLE IV

MISCELLANEOUS

 

4.1 Fees and
Expenses. Except as set forth in this Section 4.1, each party shall pay the fees and expenses of its advisers, counsel,
accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement. The Company shall pay all stamp and other taxes and
duties levied in connection with the issuance of the New Note.

 

4.2 Entire
Agreement; Amendments. This Agreement together with the exhibits and schedules hereto, dated as of the Execution Date,
contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged
into such documents, exhibits and schedules.

 

4.3 Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number or email at the email address specified in this Section prior to 6:00 p.m.
(Eastern time) on a business day, against electronic confirmation thereof, (ii) the business day after the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile number or email at the email
address specified in this Agreement later than 6:00 p.m. (Eastern time) on any date, against electronic confirmation thereof,
(iii) the business day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv)
upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications
shall be as follows:

 

	 	If to the Company: 	Avant Diagnostics, Inc.
	 	 	217 Perry Parkway,
Suite 8

Gaithersburg,
MD 20877

Facsimile No.:

Email:

Attn: Executive Director

 

	 	With
copies to (which shall	Sheppard,
    Mullin, Richter & Hampton LLP
	 	not
constitute notice):	30
    Rockefeller Plaza, 39th Floor
	 	 	New
    York, NY 10112
	 	 	Facsimile
    No.: (917) 438-6137
	 	 	Email:
    scohen@sheppardmullin.com
	 	 	Attn:
    Stephen A. Cohen
	 	 	 
	 	If
    to the Investors:	At
    the address of the Investor set forth on the signature page to this Agreement.

 

or such other address as may be designated
in writing hereafter, in the same manner, by such person or entity.

 

    	 	4	 

     

    

 

4.4 Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an
amendment, by the Company and by the Investor. No waiver of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any
manner impair the exercise of any such right accruing to it thereafter.

  

4.5
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be
deemed to limit or affect any of the provisions hereof.

 

4.6 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and
permitted assigns. The Investor may not assign this Agreement or any rights or obligations hereunder without the prior
written consent of the Company.

 

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

 

4.8 Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of
Nevada, without regard to the principles of conflicts of law thereof. The Company and the Investor irrevocably consent to the
jurisdiction of the United States federal courts and state courts located in the State of Nevada in any suit or
proceeding based on or arising under this Agreement and irrevocably agree that all claims in respect of such suit or
proceeding may be determined in such courts.

 

4.9 Survival.
The representations and warranties contained herein shall survive until the expiration of the first anniversary following the
Closing. The agreements and covenants contained herein shall survive the Closing and the delivery of the New Note until the
expiration of the applicable statute of limitations (if any) therefor.

 

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

 

4.11 Severability.
In case any one or more of the provisions of this Agreement shall be invalid or unenforceable in any respect, the validity
and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or
impaired thereby and the parties will attempt to agree upon a valid and enforceable provision which shall be a reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

4.12 Further
Assurances. The parties hereto agree that each shall execute and deliver any and all further agreements,
instruments, certificates and other documents, and shall take any and all action, as any of the parties hereto may reasonably
deem necessary or desirable in order to carry out the intent of the parties to this Agreement.

 

4.13 Attorneys’
Fees. If either party shall commence an action or proceeding to enforce any provisions relating to the obligations to
close the transactions contemplated by this Agreement prior to the Closing, then the prevailing party in such action or
proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred with
the investigation, preparation and prosecution of such action or proceeding.

 

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

 

[signature page follows]

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	 	COMPANY:
	 	 	 
	 	AVANT DIAGNOSTICS, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:

 

[additional signature page follows]

 

[Company Signature Page to Exchange Agreement]

 

    	 	6	 

     

    

 

	INVESTOR:	 
	 	 	 
	COASTAL INVESTMENT PARTNERS, LLC	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 

 

Email Address of Authorized Signatory:
____________________________

 

Facsimile Number of Authorized Signatory: ________________________

 

Address for Notice to Investor:

 

 

 

[Investor Signature Page to Exchange Agreement]

 

    	 	7	 

     

    

 

Exhibit A

 

[Form of New Note]

 

 

 

 

 

 

 

8Exhibit 10.5

 

PLEDGE AGREEMENT

 

THIS PLEDGE AGREEMENT
(as the same may be amended, restated or otherwise modified from time to time, this “Agreement”),
dated as of July 14, 2017, by and between AVANT DIAGNOSTICS, INC., a Nevada corporation, (the “Pledgor”),
and Coastal Investment Partners, LLC (the “Lender”).

 

PRELIMINARY STATEMENTS:

 

WHEREAS, Lender
has agreed to exchange their existing outstanding indebtedness in Pledgor for a new note (the “Exchange Note”)
pursuant to the terms of an exchange agreement entered into on the date hereof (the “Loan”), in reliance
on Pledgor’s agreement to enter into this Agreement as security for Pledgor’s payment(s) and performance(s) (hereinafter,
Pledgor’s “Obligations”) due to Lender pursuant to the Exchange Note, dated as of the date hereof,
in the principal amount of Four Hundred Forty Two Thousand Three Hundred Twenty Four Dollars ($442,324.00) issued by Pledgor, as
maker, in favor of Lender, as payee; and

 

WHEREAS, the
Exchange Note and all other agreements, documents or instruments executed or delivered by Pledgor in connection with the Loan (including
but not limited to (i) that certain Exchange Agreement, dated as of July 14, 2017, entered into by and between the Lender and the
Pledgor, and (ii) that certain Binding Side Letter, dated as of June 30, 2017, entered into by and between the Lender and Pledger)
are hereinafter collectively referred to as the “Loan Documents”; and

 

WHEREAS, Lender’s
agreement to execute the Loan is conditioned upon, among other things, the Pledgor entering into this Agreement and pledging a
first priority security interest to Lender in the Company’s Equipment Assets (as defined herein) and a second prior security
interest in the Company’s Intellectual Property Assets (as defined herein), all which are currently owned by Pledgor.

 

WHEREAS, Lender
acknowledges and agrees that (i) the pledge of the Intellectual Property Assets, and the Lender’s secured position therein,
will be a junior priority position, subject to the senior priority position granted to Infusion 51a, LP (the “Senior
Lender”), pursuant to the terms of that certain pledge agreement, dated June 19, 2017, entered into by and between
the Pledgor and the Senior Lender (the “Senior Lien”) and (ii) the pledge of the Intellectual Property
Assets, and the Lender’s secured position therein, will be a silent pledge under which Lender may not affirmatively enforce
any of its rights under this Agreement in case of an Event of Default (such understanding, hereinafter referred to as the “No-Action
Pledge”). The No-Action Pledge secures a junior position in the Lender’s rights in the Intellectual Property
Assets in the event a third party makes a claim on the Intellectual Property Assets.

 

    	 		 

     

    

 

NOW THEREFORE,
to secure the Obligations of the Pledgor, and in consideration of the Lender making the Loan to the Pledgor, the Pledgor hereby
agrees for the benefit of the Lender as follows:

 

		1.	INTERPRETATION OF THIS AGREEMENT

 

		1.1	Terms defined

 

All capitalized terms
used herein but not defined herein shall have the respective meanings set forth in the Loan Documents. As used herein, the following
terms shall have the respective meanings set forth below:

 

(a)   
 “Collateral” shall mean all of Pledgor’s Equipment Assets, and Pledgor’s Intellectual
Property Assets, all rights and privileges related thereto, and all books and records relating thereto and all rights in and to
any insurance proceeds of the foregoing.

 

(b)  
“Equipment Assets” shall mean all equipment owned by Pledgor, as set forth on Exhibit A annexed
hereto.

 

(c)   
“Intellectual Property Assets” shall mean all of Pledgor’s intellectual property rights
as set forth on Exhibit B annexed hereto.

 

(d)  
“Lender” shall have the meaning set forth in the introductory paragraph hereof.

 

 

(d) “Loan
Documents” shall have the meaning set forth in the preliminary statement above.

 

(e)   
“Obligations” shall mean all of the obligations of Pledgor under the Loan Documents, and this
Agreement.

 

(f)   
 “Pledgor” shall have the meaning set forth in the introductory paragraph hereof.

 

(g)  
“Security Interest” shall have the meaning set forth in Section 2.1 hereof.

 

(h)  
“Uniform Commercial Code,” or “UCC” shall mean the Uniform Commercial
Code as in effect from time to time in the State of Nevada.

 

		1.2	Directly or Indirectly

 

Where any
provision herein refers to action to be taken by any party, or provides that such party is prohibited from taking any action, such
provision shall be applicable whether such action is taken directly or indirectly by such party.

 

		1.3	Section Headings and Construction

 

(a)   
Section Headings. The titles of the sections of this Agreement appear as a matter of convenience only, do not constitute
a part hereof and shall not affect the construction hereof. The words “herein,” “hereunder” and “hereto”
refer to this Agreement as a whole and not to any particular section or other subdivision. References to sections are, unless otherwise
specified, references to sections of this Agreement.

 

    	 	2	 

     

    

 

(b)  
Construction. Each covenant contained herein shall be construed (absent an express contrary provision herein) as
being independent of each other covenant contained herein, and compliance with any one covenant shall not (absent such an express
contrary provision) be deemed to excuse compliance with one or more other covenants.

 

		1.4	Governing Law

 

THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEVADA, AND THE FEDERAL
LAWS OF THE UNITED STATES OF AMERICA IN FORCE THEREIN, EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE
THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

 

		2.	GRANT OF SECURITY INTEREST

 

		2.1	Grant of Security Interest

 

As
security for the payment or performance, as the case may be, of the Obligations, the Pledgor does hereby pledge and grant a security
interest (the “Security Interest”) to the Lender in all of the Collateral.

 

		2.2	Perfection of Security Interest in Collateral

 

(a) Contemporaneously
with the execution of this Agreement, the Pledgor (i) shall deliver, or cause to be delivered, to the Lender, all instruments
evidencing the Collateral (ii) authorizes the Lender to file one or more financing statements under the Uniform Commercial Code,
with respect to the Security Interest, with the proper filing and recording agencies in any jurisdiction deemed proper by it,
(iii) shall register the pledge of the Collateral hereunder in its books and records, and/or (iv) take such other action as the
Lender may direct in order to perfect the Security Interest.

 

(b) Delivery of
Other Collateral.If the Pledgor shall become entitled to receive or shall receive any certificate or other
instrument, option or rights, or other similar property in respect of the Collateral, whether as an addition to, in
substitution of, or in exchange for such Collateral, or otherwise, the Pledgors agree:

 

(i) to
accept the same as the agent of the Lender;

 

(ii) to
hold the same in trust on behalf of and for the benefit of the Lender; and

 

(iii) to deliver the
same to the Lender, or to such other party as the Lender may direct, on or before the close of business on the second business
day following the receipt thereof by the Pledgor, in the exact form received, with the endorsement in blank of the Pledgor when
necessary and with appropriate undated powers of attorney duly executed in blank (with signatures properly guaranteed), when necessary,
to be held by the Lender, or such other party as directed by the Lender, subject to the terms of this Agreement, as additional
Collateral.

 

    	 	3	 

     

    

 

		2.3	Further Assurances

 

The
Pledgor agrees, at its expense, to cooperate with the Lender and to execute and deliver, or cause to be executed and delivered,
all such powers, proxies, instruments and documents, and take all such actions, as the Lender may from time to time reasonably
request, for the better assuring and preserving of the perfection of the Security Interest herein granted to the Lender and the
rights and remedies created hereby.

 

		3.	REPRESENTATIONS, WARRANTIES AND COVENANTS

 

		3.1	Representations, Warranties and Covenants of Pledgor

 

The
Pledgor represents, warrants and covenants that:

 

(a) Right
to Grant Security Interest. The Pledgor has the right to pledge and grant the Security Interest in the Collateral, free
of any encumbrances other than the lien created hereby;

 

(b) Governmental
Authorities. The Pledgor’s execution and delivery of this Agreement and the pledging of the Collateral hereunder
does not require the consent, approval or authorization of, or filing, registration or qualification with, any governmental
authority having jurisdiction thereover (other than filing of UCC financing statements);

 

(c) Authority
to Pledge. The Pledgor has rights in and good and full title to the Collateral and has full right, power and authority to
pledge the Collateral as set forth herein and to execute, deliver and perform its obligations in accordance with the terms of
this Agreement, without the consent or approval of any other party (other than the consent of Senior Lender and Pledgor, in
accordance with Section 3.1(e), below);

 

(d) Validity
of Security Interest. Once the Security Interest in the Collateral hereunder is effective, by virtue of the execution and
delivery of this Agreement and the filing of the UCC financing statements in connection therewith, the
Lender’s Security Interest in the Collateral will be valid, legal and perfected; and

 

(e) Absence of
Other Liens. Subject to the Senior Lien and the rights of the Senior Lender, the Pledgor is the legal and equitable
owner of the Collateral free and clear of any pledge, security interest, lien, charge or other encumbrance of any nature
whatsoever, and the Pledgor will make no further sale, assignment, pledge, mortgage, hypothecation or transfer of the
Collateral.

 

    	 	4	 

     

    

 

		4.	EVENTS OF DEFAULT; REMEDIES

 

		4.1	Events of Default

 

The
occurrence, of any of the following shall constitute An “Event of Default”
under this Agreement:

 

(a) Covenants:
Pledgor shall fail to comply with any of the provisions hereof, and such failure continues for more than ten (10) days after
the date on which the Pledgor received written notice of such failure from the Lender, or otherwise should reasonably have
known of such failure; or

 

(b) Warranties
or Representations: Any warranty, representation or other written statement by or on behalf of any Pledgor contained
herein or in any certificate, instrument or other statement furnished in compliance herewith or with the Loan Documents shall
have been false or misleading in any material respect when made, or at anytime for so long as any of the Loan Documents
remain in force; or

 

(c) Collateral:
All or any part(s) of the Collateral shall be attached or levied upon or seized in any legal proceeding, or held by virtue of
any lien or distress, in any case for a period in excess of twenty (20) days; or

 

(d) Events of
Default Under Loan Documents:Any “Event of Default” exists under, and as defined in, the Loan
Documents.

 

		4.2	Remedies

 

At
any time during the continuance of an Event of Default, the Lender may take any or all of the following actions with respect to
the Collateral:

 

(a) The Lender may
exercise all of the rights and remedies of a secured party under the Uniform Commercial Code and other applicable law and all
of the rights and remedies conferred hereby, it being expressly understood that no such remedy is intended to be exclusive of
any other remedy or remedies, but each and every remedy shall be cumulative and shall be in addition to every other remedy
given herein or now or hereafter existing at law or in equity or by statute, and may be exercised from time to time as often
as may be deemed expedient by the Lender.

 

(b) The Lender
shall have the right, subject to the mandatory requirements of applicable law, to sell or otherwise dispose of all or any
part of the Collateral, at public or private sale or at any broker’s board or on any securities exchange, for cash,
upon credit or for future delivery as the Lender shall deem appropriate. Each purchaser at any such sale shall hold the
Collateral sold absolutely free from any claim or right on the part of the Pledgor, and the Pledgor hereby waives (to the
extent permitted by law) all rights of redemption, stay and appraisal that the Pledgor now has or may at any time in the
future have under any rule of law or statute now existing or hereafter enacted.

 

(c) No-Action Pledge.
The Lender may not exercise any rights under this Section 4.2 as it relates to the Intellectual Property Assets. Under the No-Action
Pledge the Lender may not affirmatively enforce any of its rights under this Agreement in the Event of Default. The No-Action
Pledge shall simply secure a junior position in the Lender’s rights in the Intellectual Property Assets in the event a third
party shall make a claim on the Intellectual Property Assets.

 

    	 	5	 

     

    

 

		4.3	Method of Sale and Conduct of Remedies

 

(a) The
Pledgor and the Lender agree that ten (10) days’ notice to Pledgor of any public or private sale or other
disposition of the Collateral or any portion thereof shall be reasonable notice thereof, and such sale shall be at such
locations as the Lender shall designate in such notice and during ordinary business hours, and any other requirement of
notice, demand or advertisement for sale, to the extent permitted by law, is hereby waived by the Pledgor. The Lender shall
have the right to bid on Collateral at any public sale.

 

(b) The
Lender shall not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact
that notice of sale of such Collateral shall have been given. The Lender may, without notice or publication, adjourn any
public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for
sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned.

 

(c) In
case any sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be
retained by the Lender until the sale price is paid by the purchaser or purchasers thereof, but the Lender shall not incur
any liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case
of any such failure, such Collateral may be sold again upon like notice.

 

		4.4	Certain Securities Law Restrictions

 

Anything
herein to the contrary notwithstanding, and in view of the fact that federal and state securities laws may impose certain restrictions
on the method by which a sale of any securities constituting all or part of the Collateral may be effected after and during the
continuance of an Event of Default, the Pledgor agrees that, if an Event of Default shall exist hereunder, the Lender may, from
time to time, attempt to sell all or any part of any such securities by means of a private placement, restricting the bidders and
prospective purchasers to those who will represent or agree as to their investment intent or method of resale or both in a manner
reasonably required by the Lender to assure compliance with applicable securities laws. In so doing, the Lender may solicit offers
to buy such securities or any part thereof, for cash, from a limited number of investors deemed by the Lender to be responsible
parties who might be interested in purchasing such securities. If the Lender solicits such offers from not fewer than three (3)
such investors, then the acceptance by the Lender of the highest offer obtained therefrom shall be deemed to be a commercially
reasonable method of disposition of such securities.

 

    	 	6	 

     

    

 

		4.5	Lender Appointed Attorney-in-Fact

 

The
Pledgor hereby appoints the Lender as the Pledgor’s attorney-in-fact, with full authority to act in the place and stead of
the Pledgor and in the name of the Pledgor or otherwise at any time after an Event of Default shall exist, to take any action and
to execute any instrument which the Lender may deem necessary or advisable to accomplish the purposes of this Agreement, including,
without limitation:

 

(a) to
ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due
under or in respect of any of the Collateral,

 

(b) to receive,
endorse and collect all instruments made payable to the Pledgor representing any payment or distribution in respect of the
Collateral or any part thereof and to give full discharge for the same, and

 

(c) to
file any claims or take any action or institute any proceedings that the Lender may deem necessary or desirable for
the collection of any of the Collateral or otherwise to enforce the rights of the Lender with respect to any of the
Collateral.

 

The
Pledgor agree that the Lender shall not have any liability for any acts of commission or omission, or for any error of judgment
or mistake of fact or law, with respect to the exercise of the powers of attorney granted under this Section 4.5,
unless such liability shall be due to the willful misconduct or gross negligence of the Lender. The powers of attorney granted
under this Section 4.5 are coupled with and interest and shall be irrevocable for so long
as any of the Obligations shall not have been fully and finally paid.

 

		4.6	Performance by the Lender for the Pledgor

 

If
any Pledgor shall fail to do any act or thing that it has covenanted to do hereunder, or any representation or warranty of the
Pledgor shall be breached, the Lender, may at its option, but shall not be required to, do the same or cause it to be done, or
remedy any such breach, and charge the Pledgor therefor, and the Pledgor agrees to promptly reimburse the Lender therefor, with
interest at an interest rate per annum that is then borne by the Pledgor pursuant to the terms of the Exchange Note. The Pledgor
shall pay all sums so paid or incurred by the Lender in respect of any of the foregoing and all costs and expenses (including attorneys’
fees, legal expenses and court costs) that the Lender may incur in asserting, enforcing, defending or protecting the Security Interest
herein granted on, or rights and interest in, the Collateral, or any of their rights or remedies under this Agreement or in respect
of any of the transactions to be had hereunder and, until paid by the Pledgor with interest at the rate aforesaid, such sums shall
be secured by all of the Collateral and the proceeds from the sale thereof.

 

	5.	EFFECT OF SALE, ETC.

 

5.1 Title. Any
sale or sales pursuant to the provisions of this Agreement, whether under any right or power granted hereby or pursuant
to any legal proceedings, shall operate to divest the Pledgor of all right, title, interest, claim and demand whatsoever,
either at law or in equity, of, in and to the Collateral, or any part thereof, so sold, and any property so sold shall be
free and clear of any and all rights of redemption by, through or under the Pledgor.

 

    	 	7	 

     

    

 

5.2 Application
of Proceeds. The receipt by the Lender, or by any party authorized
under any judicial proceedings to make any such sale, of the proceeds of any such sale shall be a sufficient discharge to any
purchaser of the Collateral, or of any part thereof, sold as aforesaid; and no such purchaser shall be bound to see to the
application of such proceeds, or be bound to inquire as to the authorization, necessity or propriety of any such sale. In the
event that, at any such sale, the Lender is the successful purchaser, it shall be entitled, for the purpose of making
settlement or payment, to credit against the purchase price of such sale all or any portion of the Obligations.

 

		5.3	Restoration of Rights and Remedies

 

If
the Lender shall have instituted any proceeding to enforce any right or remedy hereunder, and such proceeding shall have been discontinued
or abandoned for any reason, or shall have been determined adversely to the Lender, then and in every such case, the Lender shall,
subject to any determination in any such proceeding, be restored severally and respectively to its former position hereunder, and
thereafter all rights and remedies of the Lender shall continue as though no such proceeding had been instituted.

 

		5.4	Application of Proceeds

 

The
proceeds of any exercise of rights with respect to the Collateral, or any part thereof, and the proceeds and the avails of any
remedy under this Agreement shall be paid to the Lender and applied by the Lender in accordance with the Note.

 

		5.5	Waivers by Pledgor

 

(a) Acceptance.
The Pledgor hereby waives notice of acceptance of this Agreement. The Pledgor further waives presentment and demand for
payment of any of the Obligations, protest and notice of dishonor or default with respect to any of the Obligations, and all
notices to which the Pledgor might otherwise be entitled, except as otherwise expressly provided in this Agreement.

 

(b) Waiver of
Valuations, etc. The Pledgor (to the extent that it may lawfully do so) covenants that it shall not at any time insist
upon or plead, or in any manner claim or take the benefit or advantage of, any stay, valuation, appraisal, redemption or
extension law now or at any time hereafter in force that, but for this waiver, might be applicable to any sale made hereunder
or under any judgment, order or decree based on this Agreement, and the Pledgor (to the extent that it may lawfully do so)
hereby expressly waives and relinquishes all benefit and advantage of any and all such laws and hereby covenants that it will
not hinder, delay or impede the execution of any power in this Agreement or therein granted and delegated to the Lender, but
that it will suffer and permit the execution of every such power as though no such law or laws had been made or enacted.

 

    	 	8	 

     

    

 

(c) Dealings
with Pledgor and Others. The Pledgor does hereby waive: notice of the extension of credit from time to time by Lender
to Pledgor and the creation, existence or acquisition of any Obligations hereby secured, including, without limitation,
notice of the amount of any indebtedness of Pledgor to Lender from time to time (subject, however, to Pledgor’s right
to make inquiry of Lender to ascertain the amount of such indebtedness at any reasonable time); notice of adverse change in
Pledgor’s financial condition or of any other fact which might increase such Pledgor’s risk hereunder; notice of
presentment for payment, demand, protest and notice thereof as to any instrument executed by Pledgor in favor of Lender; to
the extent permitted under applicable law, notice of default; and all other notices and demands to which the Pledgor might
otherwise be entitled (except for any notices expressly required under the Agreement). The Pledgor further waives any
statutory or other rights to require Lender to institute suit against Pledgor or any other obligor or guarantor in respect of
the Obligations or to exhaust its rights and remedies against Pledgor or any other such obligor or guarantor. The Pledgor
accepts the full range of risk encompassed within a contract of continuing guaranty, including the possibility that the
Pledgor will incur indebtedness after its financial condition (including its ability to pay debts when they fall due) has
deteriorated. Pledgor waives the benefit of any applicable law having a contrary effect. The Pledgor further waives any
defense arising by reason of any disability or other defense of Pledgor or by reason of the cessation from any cause
whatsoever of the liability of Pledgor (except for payment in full of the Obligations), and any other legal or equitable
suretyship defense. Without limiting the foregoing, no Pledgor shall be relieved of its obligations hereunder by virtue of
any time or indulgences granted by Lender to Pledgor. The Pledgor hereby irrevocably appoints Pledgor as the
Pledgor’s agent such that any agreement made between Lender and Pledgor with respect to any waiver, release or
amendment of the terms of the Note and any other Loan Documents, shall be deemed to have been agreed and consented to by the
Pledgors and the execution of any document by Pledgor evidencing any such agreement shall be deemed to have been executed by
Pledgor as principal and as authorized agent of the Pledgors. Until all of the Obligations shall have been satisfied in full,
the Pledgors shall have no right of subrogation, reimbursement or indemnity whatsoever and no right of recourse to or with
respect to any assets or property of Pledgor or to any collateral for the Obligations. Nothing shall discharge or satisfy the
obligations secured hereby except the full payment of the Obligations. As between the Pledgors and Lender and at the option
of Lender, such Obligations shall forthwith become due and payable if there shall be filed against any one or more of Pledgor
or the Pledgors a petition under any bankruptcy, insolvency, reorganization or arrangement or similar laws for appointment of
a receiver or trustee, if any one or more of Pledgor or the Pledgors makes an assignment for the benefit of creditors, or if
an Event of Default shall exist. It is the intent of the parties that this Agreement shall remain in full force and effect
notwithstanding any act or thing that might otherwise operate as a legal or equitable discharge of a surety.

 

    	 	9	 

     

    

 

		6.	MISCELLANEOUS

 

		6.1	No Waiver

 

No
failure on the part of the Lender to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as
a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy by the Lender preclude any other
or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are
not exclusive of any other remedies provided by law. The Lender shall not be deemed to have waived any rights hereunder or under
any other agreement or instrument unless such waiver shall be in writing and signed by the Lender and the Pledgor.

 

		6.2	Lender’s Fees and Expenses

 

The
Pledgor will upon demand pay to the Lender the amount of any and all reasonable expenses, including the fees and expenses of its
counsel and of any experts or agents that the Lender may incur in connection with (i) the custody or preservation or, or the sale
of, collection from, or other realization upon, any of the Collateral, (ii) the exercise or enforcement of any of the rights of
the Lender hereunder, or (iii) the failure by the Pledgor to perform or observe any of the provisions hereof. In addition, the
Pledgor will indemnify and hold the Lender harmless from and against any and all liability incurred by the Lender hereunder or
in connection herewith, unless such liability shall be due to the willful misconduct or gross negligence of the Lender. Any such
amounts payable as provided hereunder or thereunder shall be secured hereby.

 

		6.3	Benefits of this Agreement

 

All warranties, representations
and covenants made by the Pledgor herein or in any certificate or other document or instrument delivered by it shall be considered
to have been relied upon by the Lender and shall survive the delivery to the Lender of the Collateral regardless of any investigation
made by the Lender. All statements in any such certificate or other instrument shall constitute warranties and representations
by the Pledgor hereunder. This Agreement shall be binding upon the Pledgor and their respective heirs and assigns, and shall inure
to the benefit of and be enforceable by the Lender and its successors and assigns.

 

		6.4	Obligations Absolute; Recourse; No Marshaling

 

(a) This Agreement
is an absolute, unconditional, continuing and irrevocable obligation of the Pledgor and shall remain in full force and effect
without respect to future changes in conditions, including change of law or any invalidity or irregularity with respect to
the issuance of any obligations of Pledgor to Lender or with respect to the execution and delivery of any agreement between
Pledgor and Lender. The Pledgor further agrees that to the extent Pledgor makes a payment or payments to Lender, which
payment or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or
required, for any of the foregoing reasons or for any other reason, to be repaid or paid over to a trustee, receiver or any
other party under any bankruptcy, insolvency or similar law, then, to the extent of such payment or repayment, the
Obligations or part thereof intended to be satisfied shall be revived and continued in full force and effect as if said
payment had not been made.

 

    	 	10	 

     

    

 

(b) Lender shall
have the right to seek recourse against the Collateral to the full extent provided for herein, which rights shall be absolute
and shall not in any way be impaired, deferred or otherwise diminished by reason of any inability of Lender to claim the full
amount of the Obligations from Pledgor under any applicable law. No election to proceed in one form of action or proceeding,
or against any party, or on any obligation, shall constitute a waiver of Lender’s right to proceed in any other form of
action or proceeding or against other parties unless Lender has expressly waived such right in writing. Specifically, but
without limiting the generality of the foregoing, no action or proceeding by Lender against Pledgor, any guarantor of the
Obligations or any other party, under any document or instrument evidencing or securing the Obligations shall serve to
diminish the liability of the Pledgor hereunder, except to the extent Lender fully and unconditionally realizes full
indefeasible payment of the Obligations by such action or proceeding, notwithstanding the effect of any such action or
proceeding upon the Pledgor’s right of subrogation, reimbursement or contribution against Pledgor or any other
party.

 

(c) The
Pledgor consents and agrees that Lender shall be under no obligation to marshal any assets in favor of the Pledgor, or
against or in payment of any or all of the Obligations.

 

		6.5	Actions by Lender

 

The Pledgor consents
and agrees that, without notice to Pledgor and without affecting or impairing the obligations of Pledgor hereunder, Lender may,
by action or inaction: compromise, settle, extend the time for payment of the Obligations with Pledgor or any party liable therefor;
release Pledgor or any party from its liability for the Obligations; release all or any part of the security for the Obligations;
modify any instruments or agreements relating to the Obligations (except this Agreement); extend the time for making any deposit
or granting a security interest in property securing the Obligations; or refuse or fail to enforce its rights under any agreement
or instrument evidencing or securing the Obligations.

 

		6.6	Notices

 

All notices or demands
by either party to the other relating to this Agreement shall be in writing and sent in accordance with the Loan Documents; provided
that notices or demands to Pledgor shall be sent to Pledgor at the address for the Pledgor.

 

		6.7	Severability

 

In case any one or more
of the provisions contained in this Agreement shall be invalid, illegal or unenforceable, the remaining provisions contained herein
shall not in any way be affected or impaired.

 

    	 	11	 

     

    

 

		6.8	Counterparts

 

This Agreement may be
executed in one or more counterparts and shall be effective when at least one counterpart shall have been executed by each party
hereto, and each set of counterparts that, collectively, show execution by each party hereto shall constitute one duplicate original.

 

		6.9	Amendments

 

No provision of this
Agreement shall be waived, amended, modified or supplemented except by a written instrument executed by the Pledgor and the Lender.

 

		6.10	Termination

 

Pledgor acknowledge that
this Agreement and the Security Interest shall terminate when all the Obligations have been fully and finally paid, at which time
the Lender shall deliver to the Pledgor all certificates, if any, evidencing the Collateral then held by it and such other documents
as the Pledgor shall reasonably request to evidence such termination (all at the expense of the Pledgor).

 

(the rest of the page left intentionally
blank)

 

    	 	12	 

     

    

 

IN WITNESS WHEREOF,
the Pledgor has executed and delivered this Pledge and Security Agreement as of the date first above written.

 

	 	AVANT DIAGNOSTICS, INC.
	 	 	 
	 	By:	/s/ Gerald Commissiong
	 	Name:	Gerald Commissiong
	 	Title:	Executive Director

  

    	 	13	 

     

    

 

Exhibit A

 

Pledgor’s Equipment Assets

 

 

 

 

    	 	14	 

     

    

 

Exhibit B

 

Pledgor’s Intellectual Property Assets

 

 

 

 

15

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