Document:

Exhibit 10.02

 

Execution Version

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this "Agreement"), dated as of September 7, 2018, by and between PRECIPIO, INC., a Delaware
corporation (the "Company"), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois
limited liability company (together with it permitted assigns, the “Buyer”). Capitalized terms used herein
and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement by and between the parties
hereto, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the "Purchase
Agreement").

 

WHEREAS:

 

The Company has agreed,
upon the terms and subject to the conditions of the Purchase Agreement, to sell to the Buyer up to Ten Million Dollars ($10,000,000)
of Purchase Shares and to induce the Buyer to enter into the Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute
(collectively, the "Securities Act"), and applicable state securities laws.

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Buyer hereby agree as follows:

 

		1.	DEFINITIONS.

 

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

 

a.           "Investor"
means the Buyer, any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement in accordance with
Section 9 and who agrees to become bound by the provisions of this Agreement, and any transferee or assignee thereof to whom a
transferee or assignee assigns its rights under this Agreement in accordance with Section 9 and who agrees to become bound by the
provisions of this Agreement.

 

b.           "Person"
means any individual or entity including but not limited to any corporation, a limited liability company, an association, a partnership,
an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

c.           "Register,"
 "registered," and "registration" refer to a registration effected by preparing and filing one
or more registration statements of the Company in compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act or any successor rule providing for offering securities on a continuous basis ("Rule 415"), and the declaration
or ordering of effectiveness of such registration statement(s) by the United States Securities and Exchange Commission (the "SEC").

 

d.           "Registrable
Securities" means all of the Commitment Shares and all of the Purchase Shares that may, from time to time, be issued or
become issuable to the Investor under the Purchase Agreement (without regard to any limitation or restriction on purchases), and
any and all shares of capital stock issued or issuable with respect to the Purchase Shares, the Commitment Shares or the Purchase
Agreement as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, without regard
to any limitation on purchases under the Purchase Agreement.

 

e.           "Registration
Statement" means one or more registration statements of the Company covering only the sale of the Registrable Securities.

 

     

     

    

 

		2.	REGISTRATION.

 

a.           Mandatory
Registration. The Company shall, within twenty (20) Business Days after the date hereof, file with the SEC an initial Registration
Statement covering the maximum number of Registrable Securities as shall be permitted to be included thereon in accordance with
applicable SEC rules, regulations and interpretations so as to permit the resale of such Registrable Securities by the Investor
under Rule 415 under the Securities Act at then prevailing market prices (and not fixed prices), as mutually determined by both
the Company and the Investor in consultation with their respective legal counsel, subject to the aggregate number of authorized
shares of the Company’s Common Stock then available for issuance in its Certificate of Incorporation. The initial Registration
Statement shall register only the Registrable Securities. The Investor and its counsel shall have a reasonable opportunity to review
and comment upon such Registration Statement and any amendment or supplement to such Registration Statement and any related prospectus
prior to its filing with the SEC, and the Company shall give due consideration to all such comments. The Investor shall furnish
all information reasonably requested by the Company for inclusion therein. The Company shall use its reasonable best efforts to
have the Registration Statement and any amendment declared effective by the SEC at the earliest possible date. The Company shall
use reasonable best efforts to keep the Registration Statement effective pursuant to Rule 415 promulgated under the Securities
Act and available for the resale by the Investor of all of the Registrable Securities covered thereby at all times until the date
on which the Investor shall have resold all the Registrable Securities covered thereby and no Available Amount remains under the
Purchase Agreement (the "Registration Period"). The Registration Statement (including any amendments or supplements
thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances in which they were
made, not misleading.

 

b.           Rule
424 Prospectus. The Company shall, as required by applicable securities regulations, from time to time file with the SEC, pursuant
to Rule 424 promulgated under the Securities Act, the prospectus and prospectus supplements, if any, to be used in connection with
sales of the Registrable Securities under the Registration Statement. The Investor and its counsel shall have a reasonable opportunity
to review and comment upon such prospectus prior to its filing with the SEC, and the Company shall give due consideration to all
such comments. The Investor shall use its reasonable best efforts to comment upon such prospectus within one (1) Business Day from
the date the Investor receives the final pre-filing version of such prospectus.

 

c.           Sufficient
Number of Shares Registered. In the event the number of shares available under the Registration Statement is insufficient to
cover all of the Registrable Securities, the Company shall amend the Registration Statement or file a new Registration Statement
(a ”New Registration Statement”), so as to cover all of such Registrable Securities (subject to the limitations
set forth in Section 2(a)) as soon as practicable, but in any event not later than ten (10) Business Days after the necessity therefor
arises, subject to any limits that may be imposed by the SEC pursuant to Rule 415 under the Securities Act. The Company shall use
its commercially reasonable efforts to cause such amendment and/or New Registration Statement to become effective as soon as practicable
following the filing thereof.

 

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d.            Offering.
If the staff of the SEC (the “Staff”) or the SEC seeks to characterize any offering pursuant to a Registration
Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such Registration Statement
to become effective and be used for resales by the Investor under Rule 415 at then-prevailing market prices (and not fixed prices),
or if after the filing of the initial Registration Statement with the SEC pursuant to Section 2(a), the Company is otherwise required
by the Staff or the SEC to reduce the number of Registrable Securities included in such initial Registration Statement, then the
Company shall reduce the number of Registrable Securities to be included in such initial Registration Statement (with the prior
consent, which shall not be unreasonably withheld, of the Investor and its legal counsel as to the specific Registrable Securities
to be removed therefrom) until such time as the Staff and the SEC shall so permit such Registration Statement to become effective
and be used as aforesaid. In the event of any reduction in Registrable Securities pursuant to this paragraph, the Company shall
file one or more New Registration Statements in accordance with Section 2(c) until such time as all Registrable Securities have
been included in Registration Statements that have been declared effective and the prospectuses contained therein is available
for use by the Investor. Notwithstanding any provision herein or in the Purchase Agreement to the contrary, the Company’s
obligations to register Registrable Securities (and any related conditions to the Investor’s obligations) shall be qualified
as necessary to comport with any requirement of the SEC or the Staff as addressed in this Section 2(d).

 

		3.	RELATED OBLIGATIONS.

 

With respect to the Registration
Statement and whenever any Registrable Securities are to be registered pursuant to Section 2 including on any New Registration
Statement, the Company shall use its commercially reasonable efforts to effect the registration of the Registrable Securities in
accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

a.           The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule
424 promulgated under the Securities Act, as may be necessary to keep the Registration Statement or any New Registration Statement
effective at all times during the Registration Period, and, during such period, comply with the provisions of the Securities Act
with respect to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any New Registration
Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods
of disposition by the Investor as set forth in such Registration Statement.

 

b.           The
Company shall permit the Investor to review and comment upon the Registration Statement or any New Registration Statement and all
amendments and supplements thereto at least two (2) Business Days prior to their filing with the SEC, and not file any such document
in a form to which Investor reasonably objects. The Investor shall use its reasonable best efforts to comment upon the Registration
Statement or any New Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date
the Investor receives the final version thereof. Company shall furnish to the Investor, without charge any correspondence from
the SEC or the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New Registration
Statement.

 

c.           Upon
request of the Investor, the Company shall furnish to the Investor, (i) promptly after the same is prepared and filed with the
SEC, at least one copy of such Registration Statement and any amendment(s) thereto, including financial statements and schedules,
all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any Registration Statement, a
copy of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number
of copies as the Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final
prospectus, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by the Investor. For the avoidance of doubt, any filing available to the Investor via the SEC’s live EDGAR
system shall be deemed “furnished to the Investor” hereunder.

 

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d.           The
Company shall use commercially reasonable efforts to (i) register and qualify the Registrable Securities covered by a Registration
Statement under such other securities or "blue sky" laws of such jurisdictions in the United States as the Investor reasonably
requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to
such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period,
(iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during
the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section
3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any
such jurisdiction. The Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company
of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for
sale under the securities or "blue sky" laws of any jurisdiction in the United States or its receipt of actual notice
of the initiation or threatening of any proceeding for such purpose.

 

e.           As
promptly as practicable after becoming aware of such event or facts, the Company shall notify the Investor in writing of the happening
of any event or existence of such facts as a result of which the prospectus included in any Registration Statement, as then in
effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading, and promptly prepare
a supplement or amendment to such Registration Statement to correct such untrue statement or omission, and deliver a copy of such
supplement or amendment to the Investor (or such other number of copies as the Investor may reasonably request). The Company shall
also promptly notify the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has
been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness
shall be delivered to the Investor by email or facsimile on the same day of such effectiveness and by overnight mail), (ii) of
any request by the SEC for amendments or supplements to any Registration Statement or related prospectus or related information,
and (iii) of the Company's reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

 

f.            The
Company shall use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of any Registration Statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

 

g.           The
Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same
class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities on the Principal Market.
The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

 

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h.           The
Company shall cooperate with the Investor to facilitate the timely issuance of the Registrable Securities to be offered pursuant
to any Registration Statement, it being agreed that such Registrable Securities shall be issued as DWAC Shares and in such denominations
or amounts as the Investor may reasonably request and registered in such names as the Investor may request.

 

i.            The
Company shall at all times provide a transfer agent and registrar with respect to its Common Stock.

 

j.            If
reasonably requested by the Investor, the Company shall (i) promptly incorporate in a prospectus supplement or post-effective amendment
such information as the Investor believes should be included therein relating to the sale and distribution of Registrable Securities,
including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase price
being paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of such prospectus
supplement or post-effective amendment as soon as practicable upon notification of the matters to be incorporated in such prospectus
supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement or New Registration
Statement.

 

k.          The
Company shall use its commercially reasonable efforts to cause the Registrable Securities covered by any Registration Statement
to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition
of such Registrable Securities.

 

l.            Within
one (1) Business Day after any Registration Statement which includes the Registrable Securities is declared effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Investor) confirmation that such Registration Statement has been declared effective by the SEC in
the form attached hereto as Exhibit A. Thereafter, if requested by the Buyer at any time, the Company shall require its
counsel to deliver to the Buyer a written confirmation whether or not the effectiveness of such Registration Statement has lapsed
at any time for any reason (including, without limitation, the issuance of a stop order) and whether or not the Registration Statement
is current and available to the Buyer for sale of all of the Registrable Securities.

 

m.          The
Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of the Registrable
Securities pursuant to any Registration Statement.

 

		4.	OBLIGATIONS OF THE INVESTOR.

 

a.           The
Company shall notify the Investor in writing of the information the Company reasonably requires from the Investor in connection
with any Registration Statement hereunder. The Investor shall furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required
to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration
as the Company may reasonably request.

 

b.           The
Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing
of any Registration Statement hereunder.

 

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c.           The
Investor agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind
described in Section 3(f) or the first sentence of 3(e), the Investor will immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering such Registrable Securities until the Investor's receipt of the copies of a
notice regarding the resolution or withdrawal of the stop order or suspension as contemplated by Section 3(f) or the supplemented
or amended prospectus as contemplated by the first sentence of 3(e). Notwithstanding anything to the contrary, the Company shall
cause its transfer agent to promptly deliver shares of Common Stock without any restrictive legend in accordance with the terms
of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which an Investor has entered into
a contract for sale prior to the Investor's receipt of a notice from the Company of the happening of any event of the kind described
in Section 3(f) or the first sentence of Section 3(e) and for which the Investor has not yet settled.

 

		5.	EXPENSES OF REGISTRATION.

 

All reasonable expenses,
other than sales or brokerage commissions, incurred in connection with registrations, filings or qualifications pursuant to Sections
2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees
and disbursements of counsel for the Company, shall be paid by the Company.

 

		6.	INDEMNIFICATION.

 

a.           To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the members,
the directors, officers, partners, employees, agents, representatives of the Investor and each Person, if any, who controls the
Investor within the meaning of the Securities Act or the Securities Exchange Act of 1934, as amended (the "Exchange Act")
(each, an "Indemnified Person"), against any losses, claims, damages, liabilities, judgments, fines, penalties,
charges, costs, attorneys' fees, amounts paid in settlement or expenses, joint or several, (collectively, "Claims")
incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from
the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending
or threatened, whether or not an indemnified party is or may be a party thereto ("Indemnified Damages"), to which
any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof)
arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in the Registration Statement,
any New Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification
of the offering under the securities or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered ("Blue Sky Filing"), or the omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a
material fact contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement
thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made
therein, in light of the circumstances under which the statements therein were made, not misleading, (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any other law, including, without limitation, any state securities
law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to the Registration
Statement or any New Registration Statement or (iv) any material violation by the Company of this Agreement (the matters in the
foregoing clauses (i) through (iv) being, collectively, "Violations"). The Company shall reimburse each Indemnified
Person promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity with information about the Investor furnished
in writing to the Company by any Indemnified Person expressly for use in connection with the preparation of the Registration Statement,
any New Registration Statement or any such amendment thereof or supplement thereto or prospectus contained therein, if such Registration
Statement, New Registration Statement or amendment thereof or supplement thereto or prospectus contained therein was timely made
available by the Company pursuant to Section 3(c) or Section 3(e); (ii) with respect to any superseded prospectus, shall not inure
to the benefit of any Indemnified Person from whom the Indemnified Person asserting any such Claim purchased the Registrable Securities
that are the subject thereof (or to the benefit of any person controlling such Indemnified Person) if the untrue statement or omission
of material fact contained in the superseded prospectus was corrected in the revised prospectus, as then amended or supplemented,
if such revised prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e), and the Indemnified
Person was promptly advised in writing not to use the incorrect prospectus prior to the use giving rise to a violation and such
Indemnified Person, notwithstanding such advice, used it; (iii) shall not be available to the extent such Claim is based on a failure
of the Investor to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely
made available by the Company pursuant to Section 3(c) or Section 3(e); and (iv) shall not apply to amounts paid in settlement
of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
Person and shall survive the transfer of the Registrable Securities by the Investor pursuant to Section 9.

 

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b.           In
connection with the Registration Statement or any New Registration Statement, the Investor agrees to indemnify, hold harmless and
defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of
its officers who signs the Registration Statement or any New Registration Statement, each Person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act (collectively and together with an Indemnified Person, an "Indemnified
Party"), against any Claim or Indemnified Damages to which any of them may become subject, under the Securities Act, the
Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case
to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information about
the Investor set forth on Exhibit B attached hereto and furnished to the Company by the Investor expressly for use in connection
with such registration statement; and, subject to Section 6(d), the Investor will reimburse any legal or other expenses reasonably
incurred by any Indemnified Party in connection with investigating or defending any such Claim; provided, however, that the indemnity
agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply
to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Investor, which
consent shall not be unreasonably withheld; provided, further, however, that the Investor shall be liable under this Section 6(b)
for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the Investor as a result of the sale
of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities
by the Investor pursuant to Section 9.

 

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c.           Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall,
if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense
thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel
with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate
due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented
by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party
in connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim.
The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the
defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action,
claim or proceeding effected without its written consent, provided, however, that the indemnifying party shall not unreasonably
withhold, delay or condition its consent. No indemnifying party shall, without the consent of the Indemnified Party or Indemnified
Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability
in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated
to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating
to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified
Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability
to defend such action.

 

d.           The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

 

e.           The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to law.

 

		7.	CONTRIBUTION.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however,
that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation;
and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received
by such seller from the sale of such Registrable Securities.

 

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		8.	REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With a view to making available
to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation of the SEC
that may at any time permit the Investor to sell securities of the Company to the public without registration ("Rule 144"),
the Company agrees, at the Company’s sole expense, to:

 

a.           make
and keep public information available, as those terms are understood and defined in Rule 144;

 

b.           file
with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required
for the applicable provisions of Rule 144;

 

c.           furnish
to the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting and or disclosure provisions of Rule 144, the Securities Act and the Exchange Act, (ii)
a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company,
and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule
144 without registration; and

 

d.           take
such additional action as is requested by the Investor to enable the Investor to sell the Registrable Securities pursuant to Rule
144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to
the Company’s Transfer Agent as may be requested from time to time by the Investor and otherwise fully cooperate with Investor
and Investor’s broker to effect such sale of securities pursuant to Rule 144.

 

The Company agrees that damages
may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Investor shall, whether or not
it is pursuing any remedies at law, be entitled to seek equitable relief in the form of a preliminary or permanent injunctions,
without having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions.

 

		9.	ASSIGNMENT OF REGISTRATION RIGHTS.

 

The Company shall not assign
this Agreement or any rights or obligations hereunder without the prior written consent of the Investor. The Investor may not assign
its rights under this Agreement without the written consent of the Company, other than to an affiliate of the Investor controlled
by Jonathan Cope or Josh Scheinfeld, in which case the assignee must agree in writing to be bound by the terms and conditions of
this Agreement.

 

		10.	AMENDMENT OF REGISTRATION RIGHTS.

 

No provision of this Agreement
may be amended or waived by the parties from and after the date that is one Business Day immediately preceding the initial filing
of the Registration Statement with the SEC. Subject to the immediately preceding sentence, no provision of this Agreement may be
(i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written instrument
signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

 

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		11.	MISCELLANEOUS.

 

a.           A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered
owner of such Registrable Securities.

 

b.           Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the
sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses for such communications shall be:

 

If to the Company:

Precipio, Inc.

4 Science Park

New Haven, CT 06511

	Telephone:	203-787-7888
	E-mail:	ciberger@precipiodx.com
	Attention: 	Carl Iberger 

 

With a copy to (which shall not constitute
notice or service of process):

Goodwin Procter LLP

620 Eighth Avenue

New York, New York 10018

	Telephone:	212-813-8800
	Facsimile:	212-355-3333
	E-mail:	sdavis@goodwinlaw.com
	Attention:	Stephen M. Davis, Esq.

 

If to the Investor:

Lincoln Park Capital Fund, LLC

440 North Wells, Suite 410

Chicago, IL 60654

	Telephone:	312-822-9300
	Facsimile:	312-822-9301
	E-mail:	jscheinfeld@lpcfunds.com/jcope@lpcfunds.com
	Attention:	Josh Scheinfeld/Jonathan Cope

 

With a copy to (which shall
not constitute notice or service of process):

Mintz, Levin,
Cohn, Ferris, Glovsky and Popeo, P.C.

666 Third Avenue

New York, NY
10017

	Telephone:	212-692-6267
	Facsimile:	212-983-3115
	E-mail:	ajmarsico@mintz.com
	Attention:	Anthony J. Marsico, Esq.

 

    	 	10	 

     

    

 

or at such other address and/or facsimile number
and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three
(3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's facsimile machine
or email account containing the time, date, recipient facsimile number or email address, as applicable, or (C) provided by a nationally
recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or email, or receipt
from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

c.           The
corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its stockholders.
All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by
the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than
the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
the State of Illinois, County of Cook, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

d.           This
Agreement and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or undertakings among the parties hereto, other than those
set forth or referred to herein and therein. This Agreement and the Purchase Agreement supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

 

e.           Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties hereto.

 

f.            The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

g.          This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
or by e-mail in a “.pdf” format data file of a copy of this Agreement bearing the signature of the party so delivering
this Agreement.

 

    	 	11	 

     

    

 

h.           Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

i.            The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

 

j.            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.

 

* * * * * *

 

    	 	12	 

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Registration Rights Agreement to be duly executed as of day and year first above written.

 

	 	THE COMPANY:
	 	 
	 	PRECIPIO, INC.
	 	 	 
	 	By:	/s/ Ilan Danieli
	 	Name: Ilan Danieli
	 	Title:  CEO
	 	 	 
	 	BUYER:
	 	 
	 	LINCOLN PARK CAPITAL FUND, LLC
	 	BY: LINCOLN PARK CAPITAL, LLC
	 	BY: ROCKLEDGE CAPITAL CORPORATION
	 	 	 
	 	By:	/s/ Josh Scheinfeld
	 	Name: Josh Scheinfeld
	 	Title: President

 

    	 	13	 

     

    

 

EXHIBIT A

 

TO REGISTRATION RIGHTS AGREEMENT

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

[Date]

 

[NAME/ADDRESS]

 

Re: Precipio, Inc.

 

Ladies and Gentlemen:

 

We are counsel to Precipio,
Inc., a Delaware corporation (the “Company”), and have represented the Company in connection with that certain
Purchase Agreement, dated as of September 7, 2018 (the “Purchase Agreement”), entered into by and between the
Company and Lincoln Park Capital Fund, LLC (the “Buyer”), pursuant to which the Company has issued to the Buyer
an aggregate of 600,000 shares of the Company's common stock, par value $0.01 per share (the “Common Stock”),
and may in the future issue to the Buyer shares of Common Stock in an amount up to an additional Ten Million Dollars ($10,000,000),
in accordance with the terms of the Purchase Agreement. In connection with the transactions contemplated by the Purchase Agreement,
the Company has registered with the U.S. Securities and Exchange Commission (the “SEC”) the following shares
of Common Stock:

 

		(1)	[_______________] shares of Common Stock to be issued
to the Buyer upon purchase by the Buyer from the Company from time to time in accordance with the terms of the Purchase Agreement
(the “Purchase Shares”); and

 

		(2)	600,000 shares of Common Stock that have been issued
to the Buyer as a commitment fee on the date of the Purchase Agreement (the “Commitment Shares”).

 

Pursuant to the Purchase
Agreement, the Company also has entered into a Registration Rights Agreement, dated as of September 7, 2018, with the Buyer (the
 “Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to register the Purchase
Shares and the Commitment Shares under the Securities Act of 1933, as amended (the “Securities Act”). In connection
with the Company's obligations under the Purchase Agreement and the Registration Rights Agreement, on [_________], 2018, the Company
filed a Registration Statement (File No. 333-[_________]) (the “Registration Statement”) with the SEC relating
to the resale of the Purchase Shares and the Commitment Shares.

 

In connection with the
foregoing, we advise you that the SEC has entered an order declaring the Registration Statement effective under the Securities
Act at [_____] [A.M./P.M.] on [__________], 2018 and we have no knowledge, after review of the stop order notification website
maintained by the SEC, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose
are pending before, or threatened by, the SEC and the Purchase Shares and the Commitment Shares are available for resale under
the Securities Act pursuant to the Registration Statement and may be issued without any restrictive legend or stop transfer orders
maintained against them.

 

	 	Very truly yours,
	 	 
	 	By:____________________

 

		cc:	Lincoln Park Capital Fund, LLC

 

     

     

    

 

EXHIBIT B

 

TO REGISTRATION RIGHTS AGREEMENT

 

Information About The Investor Furnished
To The Company By The Investor 

Expressly For Use In Connection With The
Registration Statement

 

Information With Respect to Lincoln Park
Capital

 

As of the date of the Purchase Agreement, Lincoln
Park Capital Fund, LLC, beneficially owned 600,000 shares of our common stock. Josh Scheinfeld and Jonathan Cope, the Managing
Members of Lincoln Park Capital, LLC, the manager of Lincoln Park Capital Fund, LLC, are deemed to be beneficial owners of all
of the shares of common stock owned by Lincoln Park Capital Fund, LLC. Messrs. Cope and Scheinfeld have shared voting and investment
power over the shares being offered under the prospectus filed with the SEC in connection with the transactions contemplated under
the Purchase Agreement. Lincoln Park Capital, LLC is not a licensed broker dealer or an affiliate of a licensed broker dealer.uhln_ex102.htm

EXHIBIT 10.2
  
 CRUZANI, INC.
  
 September 7, 2018
  
 Sandrea (Dee) Gibson
 Recipe Food Co.
696 Queen Street West Toronto ON M6J 1E7
 Canada
  
 Dear Ms. Gibson:
  
 Cruzani, Inc. (“CRUZ”or “Buyer”) is pleased to submit this binding letter of intent (“Letter”) regarding the acquisition (the “Transaction”) by CRUZ, of the stock of 2603088 Ontario Inc. operating as “Recipe Food Co.” (the “Company”), currently wholly owned by Sandrea (Dee) Gibson (“Dee”) from the treasury of the Company (Dee, the Buyer and the Company are hereinafter collectively referred to as the “Parties” and individually, a “Party”) – in accordance with the preliminary terms and conditions proposed in this Letter, including the Term Sheet attached hereby as “Attachment A” (the “Term Sheet”).
  
  	1.	Definitive and Collateral Agreements. The Parties shall incorporate the terms and conditions expressed in this Letter in a definitive agreement (the “Definitive Agreement), which will provide for a simultaneous signing and closing, meaning that the Parties will sign the Definitive Agreement and complete the transaction on the Closing Date (as defined herein), which will be the same day. Other closing agreements to give effect to arrangements collateral to the Transaction shall be negotiated by the Parties concurrently with the negotiation of the Definitive Agreement.
	  
	  

	2.	Confidentiality. The existence and contents of this Letter and the Term Sheet, and terms and negotiations regarding the Transaction, are intended to be confidential. Neither Party shall discuss with or disclose to any third party the existence or contents of this Letter or Term Sheet or the discussions of the Parties regarding a potential transaction, except (i) with the express prior written consent of the other Party, (ii) as required by law, (iii) with such Party’s directors, officers, employees, attorneys, lenders (and in the case of Buyer, its prospective lenders and other sources of capital), accountants, or advisors (collectively, “Representatives”) directly and solely for the purpose of evaluating and consummating the Transaction, including taking the actions contemplated by this Letter, and (iv) disclosures by each of the Seller and the Seller to their shareholders; provided, however, that each Party shall be responsible for any breach of the confidentiality provisions of this paragraph 2 by its Representatives and/or equity holders.
	  
	  

	3.	Announcements. Following the closing of the Transaction (the “Closing”), Buyer may in its discretion make a public announcement regarding the Transaction; provided, however, that Buyer shall provide Seller a reasonable opportunity to review the content in advance of such public announcement.

   
  	 
	 
	 
 
	 

  
 Recipe Food Co.
 Page 2
  
  	4.	Expenses. Each Party will each be responsible for their own legal and accounting fees and other out-of-pocket costs and expenses related to the negotiation, due diligence, documentation and closing of the Transaction.
	  
	  

	5.	No Shop/Exclusivity. The Seller and the Company, and each of her and its affiliates, owners, directors, officers, employees or Representatives shall not, directly or indirectly, through affiliates or otherwise, enter into or conduct or participate in discussions, or furnish information to, any other person, or solicit or initiate or continue any negotiations, proposals or offers of any kind with respect to a sale of the equity interests or assets of the Seller, or a merger, consolidation, business combination, recapitalization, financing, liquidation, dissolution or similar transaction involving the Seller or any other transaction which would prevent or impede the completion of the Transaction on or after the date first written above and prior to the termination of this Letter in accordance with paragraph 9 hereof, except in furtherance of the Transaction with Buyer.
	  
	  

	6.	Representations, Warranties and Indemnities. In the Definitive Agreement, among other customary terms and conditions, the Seller and the Company will provide joint and several representations, warranties and indemnities covering, among other things, the assets, liabilities, operations, agreements, and business of the Seller, authority to enter into, and the enforceability of the Definitive Agreement against Seller and the Company. The Definitive Agreement will provide for the Seller and the Company to jointly and severally defend and indemnify CRUZ and Buyer and their respective affiliates and hold each of them harmless from and against all pre-Closing liabilities of the Seller and the Company, and any breaches of the warranties, representations and covenants of the Seller and/or the Company and any other specific matters identified by CRUZ in its due diligence and set forth in the Definitive Agreement. The Buyer shall provide representations, indemnities and warranties as are customary in this type of transaction. The final form of all representations, warranties and indemnities will be subject to the approval of legal counsel to the Parties.
	  
	  

	7.	Closing Cooperation. This Letter and entering into the Definitive Agreement is binding on the Parties, and in connection therewith, the Parties intend for the Closing to occur on a date to be determined (the “Closing Date”). Each Party also intends to negotiate the Definitive Agreement, perform and facilitate all due diligence and take all other steps in a timely fashion so as to facilitate the Transaction by executing the Definitive Agreement on or before the proposed Closing Date.
	  
	  

	8.	Due Diligence: Access to Personnel, Books and Records. At all times prior to the consummation of the Transaction or the earlier termination of this Letter in accordance with paragraph 9, Dee and the Company shall afford to CRUZ and its representatives, agents and employees such access to the Company’s management and key personnel, books and records, agreements, licenses and any other information directly related to the proposed Transaction that may be reasonably requested. The consummation of the Transaction is contingent on the satisfactory completion of due diligence, in CRUZ’s sole discretion, that would include, but is not limited to, the customary review of operating and financial information, due diligence on assets, environmental, organizational and other business and legal issues, and interviews of the Seller’s material customers and suppliers, which interviews shall be coordinated through Seller and the Company so as not to unreasonably interfere with the Seller’s relationships with such suppliers.

  
  	 
	 
	 
 
	 

  
 Recipe Food Co.
 Page 3
  
  	9.	Termination. This Letter shall terminate (unless extended by mutual written agreement of the Parties) upon the earliest to occur of (i) written notice of such termination by CRUZ to the Seller and the Company, (ii) execution of the Definitive Agreement, or (iii) October 31, 2018; provided, however, that the provisions of paragraphs 2, 4, 5, 9, 10, 12 and 13 shall survive any termination of this Letter.
	  
	  

	10.	No Oral Agreements. Subject to the foregoing, this Letter sets out the understanding of the Parties as of this date, and there are no other written or oral agreements or understandings among the Parties and no agreement shall be deemed entered into as a result of the course of conduct of either Party. No modification or amendment to this Letter may be made except by an instrument in writing signed by duly authorized officers or agents of all of the Parties executing this Letter.
	  
	  

	11.	Conditions to Closing. The closing of this Transaction shall be subject to the satisfaction with Buyer’s business, legal, and accounting due diligence investigations and review of the Company.
	  
	  

	12.	Governing Law. This Letter will be governed by and construed in accordance with the laws of the Province of Ontario, excluding any conflict of law provisions that would render the law of another jurisdiction applicable. The Parties agree that any disputes regarding this Letter shall be subject to the exclusive jurisdiction of the provincial and federal courts located in Toronto, Ontario.
	  
	  

	13.	Counterparts. This Letter may be executed in one or more counterparts, including by email in portable document format, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

    
 If the terms and conditions of this Letter reflect our mutual understanding and intentions, please sign and return the enclosed counterpart of this Letter before 5:00 p.m., Eastern time, on August 29, 2018.
  
  	 Sincerely,
  
 Cruzani, Inc.
	
	 	 	 
	By:		
		Everett M. Dickson, President	 
	 	 	 

  
 AGREED AND ACCEPTED:
  
 This 29th day of August, 2018
  
 2603088 Ontario Inc., operating as “Recipe Food Co.”
  
  	 	 	 
	By:		
	 Name: 
	Sandrea (Dee) Gibson 	 
	Title: 	 Director
	 
	 	 	 

   
 Sandrea (Dee) Gibson
  
 Individually ___________________________
  
  	 
	 
	 
 
	 

  
 “Attachment A”
  
 Term Sheet
 Recipe Food Co.
  
  	 Seller
	 2603088 Ontario Inc., operating as “Recipe Food Co.” (the “Company”)

	  
	  

	 Purchaser
	 Cruzani, Inc. (“Buyer”)

	  
	  

	 Transaction
	 Acquisition by Buyer of stock of the Company from treasury of the Company equal to an amount representing 80% of the issued and outstanding stock of the Company. 

	  
	  

	 Closing Date
	 TBD (such date of Closing, the “Closing Date”)

	  
	  

	 Consideration
  
	 Upon execution of this letter, Buyer will begin to contribute tranches of up to CAD $237,000 to the Company to redeem the Company’s current investors, which may be in the form of cash or securities of the Buyer.

	  
	  

	 Employment Agreement
  
	 Buyer and Seller will enter into a mutually agreeable employment agreement, pursuant to which, in addition to other typical and customary terms and conditions, including restrictive covenants, the Seller will receive a salary of CAD $72,000, per annum, which will be increased to CAD $100,000 per annum when the Company is financially capable of supporting the increased salary, which will be determined on a mutually agreeable basis.

	  
	  

	 Claw Back
  
	 The Definitive Agreement shall contain mutually agreeable provisions, which shall provide that, based on achievement of mutually agreeable benchmarks of multiples of return of capital to the Buyer in connection with a mutually agreeable pro forma financial statement, Dee will have the opportunity to earn back up to 50% of the equity of the Company.

	  
	  

	 Working Capital
  
	 Upon the execution of this Letter, and until the Closing of the Definitive Agreement, Buyer will begin to provide working capital to fund the Company’s operations as needed on a mutually agreeable basis in the amounts set forth on Schedule 1. For greater certainty, the Definitive Agreement shall provide that working capital shall continue to be advanced to the Company on the terms set forth herein and on Schedule 1.

	  
	  

	 Indemnities
  
	 ·
	 Fundamental reps (e.g., organization, capitalization, authority, enforceability, title, taxes, employee benefits, and environmental), other than taxes, employee benefits and environmental, will survive indefinitely. Taxes, employee benefits and environmental will survive for 90 days following the expiration of the statute of limitations period. Other reps will survive for 24 months from the Closing Date. Fraud is an exception to all time and amount limits.

	  
	 ·
	 Subject to final confirmatory diligence, claims on reps capped at CAD $200,000.00, which will be accounted for as an offset against the Seller’s equity in Buyer.

	  
	  

	 Non-Compete / Non-Solicitation
  
	 Seller will be bound by a five-year non-compete/non-solicitation/confidential information agreement (the “General Non-Compete”). Among other customary provisions, the General Non-Compete will restrict the Seller from (a) participating, directly or indirectly, as an owner, employee (or in a similar function) or lender of any entity (other than CRUZ) that provides services similar to those provided by the Company as of the Closing Date or (b) directly or indirectly advising or consulting with customers of the Company with respect to the products or services provided by the Company or that the Company is contemplating providing as of the Closing Date.

  
  	 
	 A-1

	 
 
	 

  
 	 Basis of Proposal
	 CRUZ’s proposal set forth herein assumes that (i) the Company has been run in the ordinary course from December 31, 2017, through the Closing Date such that the Seller has not incurred a material reduction of its asset base and (ii) there has been no material adverse change in the Company’s operations, business prospects, or financial condition since December 31, 2017. Other assumptions upon which this proposal is based are as follows:

	  
	  

	  
	 ·
	 Financial and other information disclosed by the Seller accurately represent the historical performance and condition of the Seller

	  
	 ·
	 Assets of the Company are in good repair and working condition (ordinary wear and tear excepted) and will meet the historical and current requirements of the Company and Buyer

	  
	 ·
	 Prior to Closing, the Company will conduct its operations in the normal course, consistent with past practices and the management plan

	  
	 ·
	 No dividends (or equivalent distributions) will be made from the date hereof through the Closing Date, other than normal course quarterly tax distributions if applicable

	  
	 ·
	 No material threatened or actual litigation that could be expected to create a liability for the Company exists

	  
	 ·
	 No material environmental liabilities, product liability claims, or other material unrecorded liabilities exist

	  
	 ·
	 Company will pay off any intercompany loans on or before the Closing Date

	  
	 ·
	 Ability to retain substantially all employees of the Company post-Closing

	  
	 ·
	 Continued support from existing vendors of the Company

	  
	 ·
	 Company has a normal and adequate level of working capital at Closing

  Consequence of Failure to Make Advance Pursuant to Schedule
  
 If an advance required to be made between the execution of this Letter and the Closing of the Definitive Agreement is not made, (i) all amounts previously advanced by the Buyer shall convert to a debt owing by the Company to the Buyer, and (ii) the Company shall purchase and the Buyer shall sell the stock of the Company owned by the Buyer to the Company at the price of $0.000001 per share. The Definitive Agreement shall contain similar unwinding provisions, except that the Definitive Agreement shall more specifically delineate what constitutes an event of default giving rise to the consequences stated in this paragraph. 
  
 Future Restaurants/Ventures
  
 The ownership structure of future restaurants or other ventures will be agreed to by the parties at the relevant time, acting reasonably.
  
 Timing of Advances
  
 Advances required to be made pursuant to Schedule 1 shall be made as needed on a mutually agreeable basis between execution of this Letter and the Closing of the Definitive Agreement.
  
  	 
	 A-2

	 
 
	 

  
 “Schedule 1”
  
 Interim Working Capital
 Recipe Food Co.
  
  
  	 Type of funds
	  
	 Date of Tranche 
	  
	 Amount (CAD) 

	 Working Capital 
	  
	 September 2018 
	  
	 $40,000.00 

	  
	  
	 Each subsequent month
	  
	 $30,000.00 (this includes Ms. Gibsons’ Salary) The parties will mutually agree to increases or decreases as necessary. 

	 Coach House expansion
	  
	 TBD – likely October
	  
	 As needed to fund expansion Including necessary equipment

   
     
  	 S-1

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