Document:

Exhibit 10.2

 

EXECUTION
COPY

 

NEITHER THE ISSUANCE NOR SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES FILED PURSUANT TO
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

 

	Principal Amount: $2,013,635.75	Issue Date: September 28, 2018

 

SENIOR SECURED PROMISSORY NOTE

 

FOR
VALUE RECEIVED, PRECISION THERAPEUTICS, INC., a Delaware corporation (hereinafter called the
“Borrower”), as of September 28, 2018 (the “Issue Date”), hereby promises to pay to the
order of L2 CAPITAL, LLC, a Kansas limited liability company, or its registered assigns (the
“Holder”) the principal sum of $2,013,635.75 (the “Principal Amount”), together
with interest at the rate of eight percent (8%) per annum (with the understanding that the initial twelve months of such
interest of each tranche funded shall be guaranteed), at maturity or upon acceleration or otherwise, as set forth herein (the
“Note”). The consideration to the Borrower for this Note is up to $1,750,000 (the
“Consideration”) in United States currency, due to the prorated original issuance discount of up to
$238,635.75 (the “OID”) and a $25,000.00 credit for Holder’s transactional expenses. The
Holder shall pay $1,400,000 of the Consideration (the “First Tranche”) within a reasonable
amount of time of the full execution of the securities purchase agreement (the “Purchase Agreement”) and
its ancillary transactional documents pursuant to which this Note is issued. At the closing of the First Tranche, the
outstanding principal amount under this Note shall be $1,615,908.70, consisting of the First Tranche plus the prorated
portion of the OID (as defined herein) and the $25,000.00 credit for the Holder’s transactional expenses. The Holder
shall pay such additional amounts of the Consideration and at such dates as set forth in the Purchase Agreement. The maturity
date for each tranche funded shall be twelve (12) months from the effective date of each payment (each, a “Maturity
Date”), and is the date upon which the principal sum, as well as any accrued and unpaid interest and other fees,
shall be due and payable. This Note may not be repaid in whole or in part except as otherwise explicitly set forth herein.
Any amount of principal or interest on this Note which is not paid by the Maturity Date shall bear interest at the rate of
the lesser of (i) eighteen percent (18%) per annum or (ii) the maximum amount allowed by law, from the due date thereof until
the same is paid (“Default Interest”). Interest shall commence accruing on the date that this Note is
issued and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder
(to the extent not converted into the Borrower’s common stock, par value $0.01 per share (the “Common
Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All
payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in
accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any
day which is not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the case
of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof
shall not be taken into account for purposes of determining the amount of interest due on such date. As used in this Note,
the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in
the city of New York, New York are authorized or required by law or executive order to remain closed.

 

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This Note is free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

This Note shall be
a senior secured obligation of the Borrower, with priority over all existing and future Indebtedness (as defined below) of the
Borrower as provided for herein. The obligations of the Borrower under this Note are secured pursuant to the terms of the security
agreement of even date herewith by and among the Borrower, its Subsidiaries, and the Secured Parties (as defined therein), as well
as being secured by the terms of the security agreement of even date herewith by and between the borrower and Helomics Holding
Corporation (“Helomics”), and such security interest includes but is not limited to all of the assets of the
Borrower and its Subsidiaries as well as of Helomics. So long as the Borrower shall have any obligation under this Note, the Borrower
shall not (directly or indirectly through any Subsidiary or affiliate) incur or suffer to exist or guarantee any Indebtedness that
is senior to or pari passu with (in priority of payment and performance) the Borrower’s obligations hereunder. For purposes
of this paragraph, the term “Borrower” shall include any Subsidiary of the Borrower in addition to the Borrower.
As used herein, the term “Indebtedness” means (a) all indebtedness of the Borrower for borrowed money or for
the deferred purchase price of property or services, including any type of letters of credit, but not including deferred purchase
price obligations in place as of the Issue Date and as disclosed in the SEC Documents or obligations to trade creditors incurred
in the ordinary course of business, (b) all obligations of the Borrower evidenced by notes, bonds, debentures or other similar
instruments, (c) purchase money indebtedness hereafter incurred by the Borrower to finance the purchase of fixed or capital assets,
including all capital lease obligations of the Borrower which do not exceed the purchase price of the assets funded, (d) all guarantee
obligations of the Borrower in respect of obligations of the kind referred to in clauses (a) through (c) above that the Borrower
would not be permitted to incur or enter into, and (e) all obligations of the kind referred to in clauses (a) through (d) above
that the Borrower is not permitted to incur or enter into that are secured and/or unsecured by (or for which the holder of such
obligation has an existing right, contingent or otherwise, to be secured and/or unsecured by) any lien or encumbrance on property
(including accounts and contract rights) owned by the Borrower, whether or not the Borrower has assumed or become liable for the
payment of such obligation.

 

The following additional terms
shall also apply to this Note:

 

ARTICLE I. [INTENTIONALLY OMITTED]

ARTICLE II. CERTAIN COVENANTS

 

2.1Distributions
on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s
written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property
or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional
shares of Common Stock or (b) directly or indirectly or through any Subsidiary make any other payment or distribution in respect
of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a majority
of the Borrower’s disinterested directors.

 

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2.2Restriction on Stock Repurchases.
So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s written consent
redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise) in any
one transaction or series of related transactions any shares of capital stock of the Borrower or any warrants, rights or options
to purchase or acquire any such shares.

 

2.3Piggyback Registration
Rights. The Borrower shall include on the registration statement required to be filed with the SEC by January 31, 2019,
pursuant to the Registration Rights Agreement between the parties, all shares issuable upon conversion of this Note (as
defined in the Purchase Agreement). Failure to do so will result in liquidated damages of 25% of the outstanding principal
balance of this Note, but not less than Fifteen Thousand and No/100 United States Dollars ($15,000), being immediately due
and payable to the Holder at its election in the form of cash payment or addition to the balance of this Note.

 

2.4Repayment
from Proceeds. While any portion of this Note is outstanding, if the Borrower receives cash proceeds from any source or
series of related or unrelated sources, including but not limited to, from payments from customers, the issuance of equity or
debt, the conversion of outstanding warrants of the Borrower, the issuance of securities pursuant to an equity line of credit
of the Borrower or the sale of assets, the Borrower shall, within one (1) business day of Borrower’s receipt of such
proceeds, inform the Holder of such receipt, following which the Holder shall have the right in its sole discretion to
require the Borrower to immediately apply up to 50% of such proceeds to repay all or any portion of the outstanding amounts
owed under this Note. Failure of the Borrower to comply with this provision shall constitute an Event of Default. The
foregoing repayment requirement in this Section shall not be applicable to securities offering transactions after the
Execution Date yielding in the aggregate less than $2,000,000 gross proceeds to the Borrower. In the event that such excess
proceeds are received by the Holder prior to the Maturity Date, the required prepayment shall be subject to the terms of Section
4.14 herein.

 

ARTICLE III. EVENTS OF DEFAULT

 

The occurrence of each
of the following events of default shall each be an “Event of Default”, with no right to notice or cue the right to
cure except as specifically stated:

 

3.1Failure to
Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note,
whether at the Maturity Date, upon acceleration, or otherwise.

 

3.2Conversion
and the Shares. The Borrower fails to reserve a sufficient amount of shares of common
stock as required under the terms of this Note (including without limitation, Section 1.3 of this Note), fails to issue
shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon
exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or
cause its transfer agent to transfer (issue) (electronically or in certificated form) shares of Common Stock issued to the Holder
upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent
not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated
form) shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required
by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer
agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any shares of
Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or
makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph)
and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations
shall not be rescinded in writing) for two (2) business days after the Holder shall have delivered a Notice of Conversion. It
is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of
this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer
agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process
a conversion (excluding for the avoidance of doubt, the conversion price which is the Holder’s obligation to pay), such
advanced funds shall be paid by the Borrower to the Holder within five (5) business days, either in cash or as an addition to
the balance of this Note, and such choice of payment method is at the discretion of the Borrower.

 

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3.3Breach of
Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any
documents entered into between the Borrower and the Holder and such breach continues for a period of three (3) days after
written notice thereof to the Borrower from the Holder or after five (5) days after the Borrower should have been aware of
the breach.

 

3.4Breach of
Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement
or certificate given in writing pursuant hereto or in connection herewith, shall be false or misleading in any material
respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights
of the Holder with respect to this Note.

 

3.5Receiver or
Trustee. The Borrower or any Subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply
for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or
such a receiver or trustee shall otherwise be appointed.

 

3.6Judgments.
Any money judgment, writ or similar process shall be entered or filed against the Borrower or any Subsidiary of the Borrower
or any of its property or other assets for more than $100,000, and shall remain unvacated, unbonded or unstayed for a period
of ten (10) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

 

3.7Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief
under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any
subsidiary of the Borrower and, in the case of involuntary proceedings, have not been dismissed within 61 days.

 

3.8Delisting of
Common Stock. The Borrower shall fail to maintain the listing or quotation of the Common Stock on the Trading Market or
an equivalent replacement exchange, the Nasdaq Global Market, the Nasdaq Capital Market, the New York Stock Exchange, the
NYSE American, or the OTCQB or OTCQX market places of the OTC Markets.

 

3.9Failure to
Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act
(including but not limited to becoming delinquent in its filings), and/or the Borrower shall cease to be subject to the
reporting requirements of the Exchange Act.

 

3.10Liquidation.
The Borrower commences any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.11Cessation
of Operations. The Borrower ceases operations or Borrower admits it is otherwise generally unable to pay its debts as
such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going
concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

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3.12Financial
Statement Restatement. There is a restatement of any financial statements filed by the Borrower with the SEC for any date
or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result of such
restatement would, by comparison to the unrestated financial statements, have constituted a material adverse effect on the Borrower
or the rights of the Holder with respect to this Note.

 

3.13Reverse
Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written notice to the
Holder, unless Holder waives this notice period.

 

3.14Replacement
of Transfer Agent. In the event that the Borrower replaces its transfer agent, and the Borrower fails to provide prior to
the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions (including but not limited to
the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to
Borrower and the Borrower that reserves the greater of the (i) total amount of shares previously held in reserve for this Note
with the Borrower’s immediately preceding transfer agent and (ii) Reserved Amount.

 

3.15Cross-Default.
Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default
by the Borrower of any covenant or other term or condition contained in any of the other financial instrument, including but not
limited to all convertible promissory notes currently issued, or hereafter issued, by the Borrower, to the Holder or any 3rd
party (the “Other Agreements”), shall, at the option of the Holder, be considered a default under this
Note, in which event the Holder shall be entitled to apply all rights and remedies of the Holder under the terms of this Note
by reason of a default under said Other Agreement or hereunder; provided, that any promissory notes of Helomics that are outstanding
as of the effective date of the Merger (as defined below) will not result in a default under this Note unless there is a default
in payment of such promissory notes which is not cured within 15 days.

 

3.16Inside Information.
Any attempt by the Borrower or its officers, directors, and/or affiliates to transmit, convey, disclose, or any actual transmittal,
conveyance, or disclosure by the Borrower or its officers, directors, and/or affiliates of, material non-public information concerning
the Borrower, to the Holder or its successors and assigns, which is not immediately cured by Borrower’s filing of a Form
8-K pursuant to Regulation FD on that same date.

 

3.17No bid.
The lowest Trading Price on the Trading Market or other applicable principal trading market for the Common Stock is equal to or
less than $0.01. “Trading Price” means, for any security as of any date, the lowest VWAP price on NASDAQ, or
applicable trading market (the “Trading Market”) as reported by a reliable reporting service designated by
the Holder (i.e., www.Nasdaq.com) or, if the Trading Market is not the principal trading
market for such security, on the principal securities exchange or trading market where such security is listed or traded or, if
the lowest intraday trading price of such security is not available in any of the foregoing manners, the lowest intraday price
of any market makers for such security that are quoted on the OTC Markets. “Trading Day” shall mean any day
on which the Common Stock is tradable for any period on the Trading Market, or on the principal securities exchange or other securities
market on which the Common Stock is then being traded.

 

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3.18Prohibition
on Debt and Variable Securities. The Borrower, without written consent of the Holder, issues any Variable Security (as defined
herein), unless (i) the Borrower is permitted to pay off this Note in cash at the time of the issuance of the respective Variable
Security and (ii) the Borrower pays off this Note, pursuant to the terms of this Note, in cash at the time of the issuance of
the respective Variable Security. A “Variable Security” shall mean any security issued by the Borrower, not
subject to a floor price that is within fifty percent (50%) of the then current market price of the Common Stock, that (i) has
or may have conversion rights of any kind, contingent, conditional or otherwise in which the number of shares that may be issued
pursuant to such conversion right varies with the market price of the Common Stock; (ii) is or may become convertible into Common
Stock (including without limitation convertible debt, warrants or convertible preferred stock), with a conversion or exercise
price that varies with the market price of the common stock, even if such security only becomes convertible or exercisable following
an event of default, the passage of time, or another trigger event or condition; or (iii) was issued or may be issued in the future
in exchange for or in connection with any contract, security, or instrument, whether convertible or not, where the number of shares
of Common Stock issued or to be issued is based upon or related in any way to the market price of the Common Stock, including,
but not limited to, Common Stock issued in connection with a Section 3(a)(9) exchange, a Section 3(a)(10) settlement, or any other
similar settlement or exchange. Notwithstanding the foregoing, the Company shall not be deemed to be in default under this subsection
to the extent that it issues securities in compliance with obligations under written transaction documents that existed, unaltered,
prior to the Issue Date.

 

3.19Failure
to Approve Helomics Merger. The Borrower fails to acquire, on or before December 31, 2018, all required board, stockholder
and other approvals (including without limitation that certain “Parent Stockholder Consent” as defined in the Agreement
and Plan of Merger between the Borrower and Helomics) regarding the consummation of the Borrower’s merger with Helomics
(the “Merger”).

 

3.20Failure
to Repay Upon Qualified Offering. The Borrower completes an offering and/or sale of securities, or becomes a borrower under
any loan documents and/or credit facilities, on or after the Issue Date and fails to apply the proceeds of such offering, sale
or loan to the repayment of this Note to the extent required under Section 2.4, until this Note is repaid in its entirety
as required under Section 2.4.

 

UPON
THE OCCURRENCE OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE
BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT AMOUNT
(AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence of any Event of Default specified in Sections 3.1, 3.3,
3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.14,
3.15, 3.16, 3.17, 3.18, 3.19 and/or this 3.20, this Note shall become immediately due
and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 135%
(plus an additional 5% per each additional Event of Default that occurs hereunder) multiplied by the then outstanding entire
balance of this Note (including principal and accrued and unpaid interest) plus Default Interest from the date of the Event
of Default, if any, plus any amounts owed to the Holder pursuant to Sections 1.3(g) hereof (collectively, in the
aggregate of all of the above, the “Default Amount”), and all other amounts payable hereunder shall immediately
become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all
costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all
other rights and remedies available at law or in equity.

 

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Upon the earlier to
occur of an Event of Default or the filing of any Securities Act registration statement by the Borrower on a form other than Form
S-4 in connection with the Merger or Form S-8, subject to the Exchange Cap (as defined below), the Holder shall have the right
at any time thereafter to convert all or any part of the Note (including without limitation, the Principal Amount, accrued and
unpaid interests, Default Interest, and any other amounts owed to the Holder under the Note) into fully paid and non-assessable
shares of Common Stock of the Borrower at the conversion price, which is equal to the lesser of (i) $1.00 and (ii) 70% of the lowest
VWAP of the Common Stock during the twenty (20) Trading Day (as defined herein) period ending on either (i) the last complete Trading
Day prior to the conversion date or (ii) the conversion date, as determined by the Holder in its sole discretion upon such conversion
(subject to adjustment as provided in this Note) (the “Conversion Price”). In no event shall the Holder be entitled
to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of
shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed
beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any
other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein)
and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the
determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than
4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. “Trading
Day” shall mean any day on which the Common Stock is tradable for any period on the principal securities exchange or
other securities market on which the Common Stock is then being traded. All expenses incurred by Holder for the issuance and clearing
of the Common Stock into which this Note is convertible into shall immediately and automatically be added to the balance of the
Note at such time as the expenses are incurred by Holder. If, at any time when the Note is issued and outstanding, and either (A)
an Event of Default has occurred under this Note or (B) the Borrower has an filed an effective registration statement covering
the Holder’s sale of Conversion shares issued pursuant to this Note, the Borrower issues or sells, or is deemed to have issued
or sold, any shares of Common Stock for a consideration per share less than the Conversion Price in effect on the date of such
issuance (or deemed issuance) of such shares of Common Stock (a “Dilutive Issuance”), then the Holder shall
have the right, in Holder’s sole discretion on each conversion after such Dilutive Issuance, to utilize the price per share
of the Dilutive Issuance as the Conversion Price for such conversion. The Borrower is required at all times to have authorized
and reserved one and a half times (and upon the Merger Certification Date (as defined in the Purchase Agreement) two times) the
number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the Note as if an
Event of Default under the Note has occurred, even if an Event of Default has not occurred), and otherwise as set forth in the
Purchase Agreement (the “Reserved Amount”). Upon receipt by the Borrower from the Holder of a facsimile transmission
or e-mail (or other reasonable means of communication) of a notice of conversion in the form attached hereto as Exhibit A
(the “Notice of Conversion”), the Borrower shall issue and deliver or cause to be issued and delivered to or
upon the order of the Holder the Common Stock issuable upon such conversion within two (2) business days after such receipt (the
“Deadline”). Without in any way limiting the Holder’s right to pursue other remedies, including actual
damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is
not delivered by the Deadline, the Borrower shall pay to the Holder $3,000 per day in cash, for each day beyond the Deadline that
the Borrower fails to deliver such Common Stock. Until such time as the shares of Common Stock issuable upon conversion of this
Note have been registered under the Securities Act or otherwise may be sold pursuant to Rule 144 or other available exemption,
the Common Stock issuable upon conversion of this Note shall bear a restrictive legend in form, substance, and scope customary
for such legends. Notwithstanding anything in this Note to the contrary, and in addition to the beneficial ownership limitations
provided herein above, the sum of (a) the total number of shares of Common Stock that may be issued under this Note and (b) the
number of Inducement Shares, shall be limited to 1,874,830 shares of Common Stock (equal to 13.993% of the outstanding shares of
Common Stock of the Company as of the Issue Date hereof) (the “Exchange Cap”) The Exchange Cap shall be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction.
The Company and Holder agree that the Company shall not seek or obtain stockholder approval of issuance of a greater number of
shares upon conversion in excess of the Exchange Cap. In the event of a conversion by Holder that results in the issuance of a
number of shares equal to the Exchange Cap, the Maturity Date of each tranche of this Note shall be the earlier of (1) the date
ninety (90) days after the date of such conversion, or (2) the Maturity Date for such tranche set forth in the first paragraph
of this Note.

 

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ARTICLE IV. MISCELLANEOUS

 

4.1Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

4.2Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or
certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, facsimile, or electronic mail addressed as set forth below or to such other
address as such party shall have specified most recently by written notice. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery, upon electronic mail delivery, or delivery
by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated
below (if delivered on a business day during normal business hours where such notice is to be received), or the first
business day following such delivery (if delivered other than on a business day during normal business hours where such
notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully
prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

 

If
to the Borrower, to:

 

PRECISION THERAPEUTICS INC. 

2915 Commers Drive, Suite 900

Eagan, Minnesota 55121

Attention: Bob Myers, CFO

E-mail:
bmyers@skylinemedical.com

Phone: 651.389.4800

 

With a copy (which shall not constitute
notice) to:

 

Maslon LLP

3300 Wells Fargo Center, 90 S. Seventh
Street

Minneapolis, MN 55402

E-mail: martin.rosenbaum@maslon.com

Attention: Martin Rosenbaum

Phone: 612-672-8326

 

If
to the Holder:

 

L2 CAPITAL, LLC 

208 Ponce de Leon Ave.

Ste. 1600

San Juan, PR 00918

e-mail: accounting@ltwocapital.com

 

with a copy to that shall not constitute
notice:

 

K&L Gates LLP

200 S. Biscayne Blvd., Ste. 3900

Miami,
FL 33131

Attention: John D. Owens, III, Esq.

e-mail: john.owens@klgates.com

 

    8 

     

    

 

4.3Amendments.
This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The
term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument as originally
executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4Assignability.
This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder
and its successors and assigns. Notwithstanding anything to the contrary herein, the rights, interests or obligations of the
Borrower hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by the Borrower without the
prior signed written consent of the Holder, which consent may be withheld at the sole discretion of the Holder (any such
assignment or transfer shall be null and void if the Borrower does not obtain the prior signed written consent of the
Holder). This Note or any of the severable rights and obligations inuring to the benefit of or to be performed by Holder
hereunder may be assigned by Holder to a third party, in whole or in part, without the need to obtain the Borrower’s
consent thereto. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the
Securities Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in connection
with a bona fide margin account or other lending arrangement.

 

4.5Cost of
Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

4.6Governing
Law. This Note shall be governed by and interpreted in accordance with the laws of the State of Kansas without regard to
the principles of conflicts of law (whether of the State of Kansas or any other jurisdiction).

 

4.7Arbitration.
Any disputes, claims, or controversies arising out of or relating to this Note, or the
transactions, contemplated thereby, or the breach, termination, enforcement, interpretation or validity thereof, including
the determination of the scope or applicability of this Note to arbitrate, shall be referred to and resolved solely and
exclusively by binding arbitration to be conducted before the Judicial Arbitration and Mediation Service
(“JAMS” ), or its successor pursuant the expedited procedures set forth in the JAMS Comprehensive
Arbitration Rules and Procedures (the “Rules” ), including Rules 16.1 and 16.2 of those Rules. The
arbitration shall be held in New York, New York, before a tribunal consisting of three (3) arbitrators each of whom will be
selected in accordance with the “strike and rank” methodology set forth in Rule 15. Either party to this Note
may, without waiving any remedy under this Note, seek from any federal or state court sitting in the State of Kansas any
interim or provisional relief that is necessary to protect the rights or property of that party, pending the establishment of
the arbitral tribunal. The costs and expenses of such arbitration shall be paid by and be the sole responsibility of the
Borrower, including but not limited to the Holder’s attorneys’ fees and each arbitrator’s fees. The
arbitrators’ decision must set forth a reasoned basis for any award of damages or finding of liability. The
arbitrators’ decision and award will be made and delivered as soon as reasonably possible and in any case within sixty
(60) days’ following the conclusion of the arbitration hearing and shall be final and binding on the parties and may
be entered by any court having jurisdiction thereof. Notwithstanding the foregoing, the choice of arbitration shall not limit
the Holder’s exercise of remedies under the Uniform Commercial Code.

 

    9 

     

    

 

4.8JURY TRIAL
WAIVER. THE BORROWER AND THE HOLDER HEREBY WAIVE A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER
OF THE PARTIES HERETO AGAINST THE OTHER IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS NOTE.

 

4.9Certain
Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding Principal
Amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on
such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on
this Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a
penalty and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a
return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid
for such shares pursuant to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is not
plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity to
convert this Note into shares of Common Stock.

 

4.10Remedies.
The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for
a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the
Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law
or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing
any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic
loss and without any bond or other security being required.

 

4.11Section
3(a)(10) Transactions. If at any time while this Note is outstanding, the Borrower enters into a transaction structured
in accordance with, based upon, or related or pursuant to, in whole or in part, Section 3(a)(10) of the Securities Act (a
“3(a)(10) Transaction”), then a liquidated damages charge of 100% of the outstanding principal balance of
this Note at that time, will be assessed and will become immediately due and payable to the Holder, either in the form of
cash payment, an addition to the balance of this Note, or a combination of both forms of payment, as determined by the
Holder. The liquidated damages charge in this Section 4.11 shall be in addition to, and not in substitution of, any of
the other rights of the Holder under this Note.

 

4.12Restriction on Section 3(a)(9) Transactions. So long as this Note is outstanding, the Borrower shall not enter into any
3(a)(9) Transaction with any party other than the Holder, without prior written consent of the Holder. In the event that the Borrower
does enter into, or makes any issuance of Common Stock related to a 3(a)(9) Transaction while this Note is outstanding, a liquidated
damages charge of 25% of the outstanding principal balance of this Note, but not less than $15,000, will be assessed and will become
immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance of this Note.
“3(a)(9) Transaction” means a transaction structured in accordance with, based upon, or related or pursuant
to, in whole or in part, Section 3(a)(9) of the Securities Act. The liquidated damages charge in this Section 4.12 shall
be in addition to, and not in substitution of, any of the other rights of the Holder under this Note.

 

    10 

     

    

4.13Usury. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law
governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest
permitted under applicable law. The Borrower covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or
other law which would prohibit or forgive the Borrower from paying all or any portion of the principal of or interest on this Note
as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance
of this Note, and the Borrower (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted
to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

4.14Repayment. Notwithstanding anything to the contrary contained in this Note, the Borrower may repay any amount outstanding
under this Note, during the 30 calendar day period after the Issue Date, by making a payment to the Holder of an amount in cash
equal to 105% multiplied by the amount that the Borrower is repaying. Notwithstanding anything to the contrary contained in this
Note, the Borrower may repay any amount outstanding under this Note, during the 31st through 60th calendar day period after the
Issue Date, by making a payment to the Holder of an amount in cash equal to 110% multiplied by the amount that the Borrower is
repaying. Notwithstanding anything to the contrary contained in this Note, the Borrower may repay any amount outstanding under
this Note, during the 61st through 90th calendar day period after the Issue Date, by making a payment to the Holder of an amount
in cash equal to 115% multiplied by the amount that the Borrower is repaying. Notwithstanding anything to the contrary contained
in this Note, the Borrower may repay any amount outstanding under this Note, during the 91st through 120th calendar day period
after the Issue Date, by making a payment to the Holder of an amount in cash equal to 120% multiplied by the amount that the Borrower
is repaying. Notwithstanding anything to the contrary contained in this Note, the Borrower may repay any amount outstanding under
this Note, after the 120th calendar day after the Issue Date, including on and after the Maturity Date, by making a payment to
the Holder of an amount in cash equal to 125% multiplied by the amount that the Borrower is repaying. In order to repay this Note,
the Borrower shall provide notice to the Holder ten (10) business days prior to such respective repayment date, and the Holder
must receive such repayment within twelve (12) business days of the Holder’s receipt of the respective repayment notice,
but not sooner than ten (10) business days from the date of notice (the “Repayment Period”). The Holder may
convert the Note in whole or in part at any time during the Repayment Period, subject to the terms and conditions of this Note.
Any repayment hereunder shall be applied to the tranches funded under this Note in reverse chronological order (applied first to
the most recently funded tranches under this Note).

 

4.15Terms of Future
Financings. So long as this Note is outstanding, upon any issuance by the Borrower or any of its Subsidiaries of any security
with any term more favorable to the holder of such security or with a term in favor of the holder of such security that was not
similarly provided to the Holder in this Note, then the Borrower shall notify the Holder of such additional or more favorable term
and such term, at Holder’s option, shall become a part of the transaction documents with the Holder. The types of terms contained
in another security that may be more favorable to the holder of such security include, but are not limited to, terms addressing
conversion discounts, prepayment rate, conversion look back periods, interest rates, original issue discounts, stock sale price,
private placement price per share, and warrant coverage.

 

**
signature page to follow **

    11 

     

    

 

IN WITNESS
WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on the Issue Date.

 

PRECISION THERAPEUTICS, INC.

 

By: /s/ Bob Myers
                              

Name: Bob Myers

Title: Chief Financial Officer

 

 

 

    12 

     

    

 

 

EXHIBIT A -- NOTICE OF CONVERSION

 

The undersigned
hereby elects to convert $___________________ amount of this Note (defined below) into that number of shares of Common Stock
to be issued pursuant to the conversion of this Note (“Common Stock”) as set forth below, of Precision
Therapeutics, Inc., a Delaware corporation (the “Borrower”), according to the conditions of the senior
secured promissory note of the Borrower dated as of September 28, 2018 (the “Note”), as of the date
written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.

 

Box Checked as to applicable instructions:

 

 

	[ ]	The
Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned
or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
	 	 
	 	Name of DTC Prime

Broker: Account Number:

	 	 
	[ ]	The
undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set
forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below
or, if additional space is necessary, on an attachment hereto:
	 	 
	 	L2 CAPITAL, LLC

208 Ponce de Leon Ave.

Ste.
1600

San Juan, PR 00918e-mail:
investments@ltwocapital.com

 

 

	 	Date of Conversion:

                                                                                 
	 
	 	Applicable Conversion Price:

                                                                                 
	 
	 	Number of Shares of Common Stock to be Issued Pursuant to Conversion of this

        Notes:
	 
	 	Amount of Principal Balance Due remaining Under this Note after this

        conversion:
	 
	 	 	 
	 	 	 
	 	L2 CAPITAL, LLC

         

        By:______________________________

Name:___________________________

Title:_____________________________

Date:____________________________

	 

 

 

 

 

 

 

 

13Exhibit 10.3

 

 

EXECUTION COPY

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this
“Agreement”), dated as of September 28, 2018 (the “Execution Date”), is entered into by and
between PRECISION THERAPEUTICS INC., a Delaware corporation (the “Company”), and L2 CAPITAL, LLC,
a Kansas limited liability company (together with its permitted assigns, the “Buyer”). Capitalized terms used
herein and not otherwise defined herein shall have the respective meanings set forth in that certain Securities Purchase Agreement
by and between the parties hereto, dated as of the Execution Date (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 (i) an 8% Senior Secured Promissory Note
of the Company in the aggregate principal amount of US$2,013,635.75 (together with any note(s) issued in replacement thereof or
as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”), convertible
into shares of common stock, par value $0.01 share, of the Company (the “Common Stock”) subject to the terms
of the Note (the “Conversion Shares”), (ii) a warrant to acquire up to 939,261 shares (the “Warrant
Shares”) of Common Stock at an exercise price as set forth in that certain Common Stock Purchase Warrant dated as of
the Execution Date (the “Warrant”), upon the terms and subject to the limitations and conditions set forth in
the Warrant and (iii) 455,000 shares of Common Stock (the “Inducement Shares”, and together with the Conversion
Shares and Warrant Shares, the “Issuance Shares”) to induce the Buyer to enter into the Purchase Agreement,
and in connection therewith, 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 the 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.                  
“Initial Registration Statement” means a registration statement on Form S-3 covering the resale of all of the
Inducement Shares by the Investor.

 

    

     

    

d.                 
“Register,” “Registered,” and “Registration” refer to a registration effected
by preparing and filing one or more registration statements and/or prospectus supplements of the Company in compliance with the
Securities Act and/or 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”).

 

e.                  
“Registrable Securities” means all of the Issuance Shares which have been, or which may, from time to time be
issued, including without limitation all of the shares of Common Stock which have been issued or will be issued 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 under the Transaction Documents, and shares of Common Stock issued to the Investor 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.

 

f.                  
“Registration Statement” means (i) one or more registration statements on Form S-3 or Form S-1 of the Company
(including the Initial Registration Statement) or (ii) one or more prospectus supplements to an effective registration statement
on Form S-3, which such prospectus supplements are eligible to register the Registrable Securities under the Securities Act, each
covering only the sale of the Registrable Securities.

 

2.       REGISTRATION.

 

a.                  
Mandatory Registration. The Company shall file with the SEC an Initial Registration Statement covering all of the Inducement
Shares, and use best efforts to cause such registration statement to become effective, before November 15, 2018. No later than
January 31, 2019, the Company shall cause the Conversion Shares to be registered on a Registration Statement, which for the avoidance
of doubt may include the Initial Registration Statement. The Investor and its counsel shall have a reasonable opportunity to review
and comment upon such Registration Statement(s) 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 any Registration Statement within two
(2) business days from the date the Investor receives the final pre-filing version of such prospectus. The Company shall also,
subject to Section 2(c), register the Warrant Shares under the Initial Registration Statement, and if all such Warrant Shares
are not able to be registered under the Initial Registration Statement, then the Company shall register any remaining Warrant Shares
under each other Registration Statement filed by the Company with the SEC.

 

b.                 
Rule 424 Prospectus. In addition to the Initial Registration Statement, and any other Registration Statement filed with
the SEC pursuant to Section 2(a), 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, such prospectuses and prospectus supplements, to
be used in connection with sales of the Registrable Securities under each Registration Statement. The Investor and its counsel
shall have a reasonable opportunity to review and comment upon such prospectuses 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

 

    	2

     

    

comment upon any prospectus within two (2) business days from the
date the Investor receives the final pre-filing version of such prospectus.

 

c.                  
Sufficient Number of Shares Registered. In the event that in accordance with applicable SEC rules, regulations and interpretations
the number of shares available under such Registration Statement(s) filed with the SEC pursuant to Section 2(a) shall be
insufficient to permit the sale and/or resale of such Registrable Securities by the Investor, including but not limited to 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 and otherwise to cover all of the Registrable Securities,
the Company shall amend the Initial 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(f)) 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 reasonable best efforts to cause such amendment
and/or New Registration Statement to become effective as soon as practicable following the filing thereof.

 

d.                 
Piggyback Registration. In the event that any of the Registrable Securities have not been included in a Registration Statement
filed with the SEC pursuant to Section 2(a) or a New Registration Statement pursuant to Section 2(c), and the Company
initially files any other registration statement under the Securities Act (other than on Form S-4, Form S-8, or with respect to
other employee related plans or rights offerings) (an “Other Registration Statement”) after sixty (60) days
following the Execution Date, then the Company shall include in such Other Registration Statement such Registrable Securities,
including any Warrant Shares, that have not been previously Registered.

 

e.                  
Effectiveness. The Investor and its counsel shall have a reasonable opportunity to review and comment upon any 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 reasonable comments. The Investor shall furnish all information reasonably
requested by the Company for inclusion therein. The Company shall use reasonable best efforts to keep all Registration Statements
effective, including but not limited to 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 earlier of (i) the date as of which
the Investor may sell all of the Registrable Securities without restriction pursuant to Rule 144 promulgated under the Securities
Act without any restrictions (including any restrictions under Rule 144(c) or Rule 144(i)) and (ii) the date on which the Investor
shall have sold all the Registrable Securities covered thereby (the “Registration Period”). In the Event that
that any Registration Statement filed hereunder is no longer effective and Rule 144 is available for sales of the Registrable Securities,
the company shall provide an opinion upon request of the Investor that the Investor may sell any such Registrable Securities held
by the Investor pursuant to Rule 144 with all costs related to such opinion to be borne by the Company. Each 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

 

    	3

     

    

misleading; provided that the Company makes no representations regarding
information regarding the Investor, the Registrable Securities held by it and the intended method of disposition of the Registrable
Securities held by it provided in writing by the Investor.

 

f.                  
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 or remain effective and be used for resales by the Investor under Rule 415 at then-prevailing
market prices (and not fixed prices) by comment letter or otherwise, or if after the filing of a 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 Registration Statement, then the Company shall reduce the number of Registrable Securities to be included
in such 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 prospectus 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(f).

 

g.                 
Leak Out. For a period of four months from the date the Initial Registration Statement is declared effective by the SEC,
and provided that the Company is in full compliance with and has not breached any provision of this Agreement, the Investor may
sell Registrable Securities under any Registration Statement, provided that the Investor does not sell, on any given day, a number
of shares of Registrable Securities that exceeds the greater of (i) 10% of the daily volume of the Common Stock for the period
ended one Trading Day prior to the date of such sale, as reported by the Nasdaq Capital Market; and (ii) such number of Registrable
Securities that equals (A) US$10,000, divided by, (B) the closing price of the Common Stock one Trading Day prior to the date of
such sale, as reported by the Nasdaq Capital Market.

 

3.       RELATED OBLIGATIONS.

 

With respect to a Registration Statement and
whenever any Registrable Securities are to be Registered pursuant to Section 2, including on any Other Registration Statement,
the Company shall use its reasonable best 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 on Form S-3 or S-1) 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

 

    	4

     

    

necessary to keep the Registration Statement or any Other 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 Other
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 seller or sellers thereof as set forth in such registration statement.

 

b.                 
The Company shall permit the Investor to review and comment upon each Registration Statement or any Other 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
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 Other Registration Statement and any amendments or supplements thereto within two (2) business days
from the date the Investor receives the final version thereof. The Company shall furnish to the Investor, without charge, and within
one (1) business day, any comments and/or any other correspondence from the SEC or the Staff to the Company or its representatives
relating to the Registration Statement or any Other Registration Statement. The Company shall respond to the SEC or the Staff,
as applicable, regarding the resolution of any such comments and/or correspondence as promptly as practicable and in any event
within two weeks upon receipt thereof.

 

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.

 

d.                 
The Company shall use reasonable best efforts to maintain the registration of its Common Stock under Section 12(b) of the Securities
Act. If at any time, the Company’s common stock shall no longer remain registered under Section 12(b) of the Securities Act,
and the Company has or is required to file a Registration Statement hereunder, the Company shall provide contemporaneously with
(and in no case before) the filing of a Form 25 with the SEC, notice to the Investor. In such case, the Company shall (i) register
and qualify the Registrable Securities covered by a registration statement under such other securities or “blue sky”
laws of Puerto Rico, Kansas, New York, Florida and such other 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 any such
registrations and qualifications (including all Registration Statements) 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

 

    	5

     

    

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 reasonable best 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. In addition if the Company shall receive any comment letter from the SEC relating
to any registration statement under which Registrable Securities are Registered, Company shall notify the Investor of the issuance
of such order and use its reasonable best efforts to address such comments in a manner satisfactory to the SEC.

 

g.                 
The Company shall 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. The Company shall pay all fees and expenses in connection with satisfying its obligation under
this Section.

 

h.                 
The Company shall cooperate with the Investor to facilitate the timely preparation and delivery of DWAC Shares representing the
Registrable Securities to be offered pursuant to any registration statement. “DWAC Shares” means shares of Common
Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and without restriction on resale

 

    	6

     

    

and (iii) timely credited by the Company to the Investor’s
or its designee’s specified DWAC account with The Depository Trust Company (“DTC”) under the DTC/FAST
Program, or any similar program hereafter adopted by DTC performing substantially the same function.

 

i.                   
The Company shall at all times maintain the services of its Transfer Agent and registrar with respect to its Common Stock.

 

j.                   
If reasonably requested by the Investor, the Company shall (i) immediately 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.

 

k.                 
The Company shall use its reasonable best 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 Registrable Securities is ordered effective by the
SEC, or any prospectus supplement including Registrable Securities is filed with 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 Investor at any time, the Company shall require its counsel to deliver to the Investor a
written confirmation whether or not (i) the effectiveness of such registration statement has lapsed at any time for any reason
(including, without limitation, the issuance of a stop order), (ii) any comment letter has been issued by the SEC and (iii) whether
or not the registration statement is current and available to the Investor 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 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. Notwithstanding the foregoing, the Registration Statement

 

    	7

     

    

shall contain the “Plan of Distribution” and, if applicable
the “Selling Stockholder” section, each in substantially the form provided to the Company by the Investor.

 

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 or prospectus supplement hereunder.

 

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 Section 3(e), the Investor will immediately discontinue disposition
of Registrable Securities pursuant to any registration statement(s) covering such Registrable Securities until withdrawal of a
stop order contemplated by Section 3.f) or the Investor’s receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3.e). Notwithstanding anything to the contrary, the Company shall cause its Transfer Agent to promptly
issue DWAC Shares 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, each
Person, if any, who controls or is under common control with the Investor, the members, the directors, officers, partners, employees,
agents, representatives of the Investor and each Person, if any, who is an “affiliate” of 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 Person 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 a Registration Statement, any Other
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

 

    	8

     

    

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 a Registration Statement or any Other 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 or the Registrable Securities furnished in
writing to the Company by such Indemnified Person expressly for use in connection with the preparation of a Registration Statement,
any Other Registration Statement or any such amendment thereof or supplement thereto, if such prospectus 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 such person from whom the person asserting any such Claim purchased the Registrable Securities that
are the subject thereof (or to the benefit of any person controlling such 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.

 

b.       Investor agrees to indemnify and
hold harmless the Company, its officers,

 

directors and agents and each Person, if any, who controls the Company
within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and each of their respective representatives
to the same extent as the foregoing indemnity from the Company to Investor pursuant to Section 6(a), but only with respect
to a Claim arising out of or based upon a Violation which occurs as a direct result of and in reliance upon and in conformity with
information about such Investor or the Registrable Securities of such Investor furnished in writing to the Company by such Investor
expressly for use in connection with the preparation of a Registration Statement, any Other Registration Statement or any such
amendment thereof or

 

    	9

     

    

supplement thereto. Notwithstanding the foregoing, in no event will
the liability of Investor hereunder exceed the net proceeds actually received by Investor from the sale of its Registrable Securities
hereunder.

 

c.                  
Promptly after receipt by an Indemnified Person 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 shall, if a Claim in respect thereof
is to be made against the Company under this Section 6, deliver to the Company a written notice of the commencement thereof,
and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense
thereof with counsel mutually satisfactory to the Company and to the Indemnified Person; provided, however, that an Indemnified
Person shall have the right to retain its own counsel with the fees and expenses to be paid by the Company, if, in the reasonable
opinion of counsel retained by the Company, the representation by such counsel of the Indemnified Person and the Company would
be inappropriate due to actual or potential differing interests between such Indemnified Person and any other party represented
by such counsel in such proceeding. The Indemnified Person shall cooperate fully with the Company in connection with any negotiation
or defense of any such action or Claim by the Company and shall furnish to the Company all information reasonably available to
the Indemnified Person which relates to such action or Claim. The indemnifying party shall keep the Indemnified Person fully apprised
at all times as to the status of the defense or any settlement negotiations with respect thereto. The Company shall not be liable
for any settlement of any action, Claim or proceeding effectuated without its written consent, provided, however, that the Company
shall not unreasonably withhold, delay or condition its consent. The Company shall not, without the consent of the 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 Person of a release from all liability in respect to such
Claim or litigation. Following indemnification as provided for hereunder, the Company shall be subrogated to all rights of the
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 Company within a reasonable time of the commencement of any such action
shall not relieve the Company of any liability to the Indemnified Person under this Section 6, except to the extent that
the Company 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 Person
against the Company or others, and (ii) any liabilities the Company may be subject to pursuant to the law.

 

7.       CONTRIBUTION.

 

To the extent any indemnification by the Company
is prohibited or limited by law, the Company 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;

 

    	10

     

    

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.

 

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 “current public information” available, as such term is 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;

 

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 at the Company’s expense 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 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 Buyer, or any Investor as assignee pursuant to this
Section 9. The Buyer, or any Investor, may not assign its rights under this Agreement without the written consent of the
Company other than to an affiliate of such Investor.

 

    	11

     

    

10.           
AMENDMENT OF REGISTRATION RIGHTS.

 

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.

 

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 email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party)
if delivered on a business day during normal business hours where such notice is to be received, or the first business day following
such delivery (if delivered other than on a business day during normal business hours where such notice is to be received); or
(iii) one (1) business day after timely 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:

 

PRECISION THERAPEUTICS INC. 

2915 Commers Drive, Suite 900 

Eagan, Minnesota 55121 

Attention: Bob Myers, CFO 

E-mail: bmyers@skylinemedical.com>

Phone: 651.389.4800

 

With a copy (which shall not constitute notice) to:

 

Maslon LLP 

3300 Wells Fargo Center, 90 S. Seventh Street 

Minneapolis, MN 55402 

E-mail: martin.rosenbaum@maslon.com 

Attention: Martin Rosenbaum 

Phone: 612-672-8326

 

    	12

     

    

If to the Investor:

 

L2 Capital, LLC 

208 Ponce de Leon Ave., Suite 1600 

San Juan, PR 00918 

Email: investments@ltwocapital.com

Attention: Adam Long, Managing Partner

 

with a copy (that shall not constitute notice) to:

 

K&L Gates LLP 

200 S. Biscayne Blvd., Suite 3900 

Miami, FL 33131 

E-mail: john.owens@klgates.com 

Attention: John D. Owens, III, Esq.

 

or at such other address and/or email address 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 email account containing the time, date,
recipient email address, as applicable, and an image of the first page of such transmission or (C) provided by a nationally recognized
overnight delivery service, shall be rebuttable evidence of personal service, receipt by 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 Kansas shall govern all issues concerning this Agreement. All other questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of
Kansas, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Kansas or any
other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Kansas.

 

d.                 
Any disputes, Claims, or controversies hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein shall be referred to and resolved solely and exclusively by binding arbitration to be conducted before the Judicial Arbitration
and Mediation Service (“JAMS”), or its successor pursuant the expedited procedures set forth in the JAMS Comprehensive
Arbitration Rules and Procedures (the “Rules”), including Rules 16.1 and 16.2 of those Rules. The arbitration
shall be held in New York, New York, before a tribunal consisting of three (3) arbitrators each of whom will be selected in accordance
with the “strike and rank” methodology set forth in Rule 15. Either party to this Agreement may, without waiving any
remedy under this Agreement, seek from any federal or state court sitting in the State of Kansas any interim or provisional relief
that is necessary to protect the rights or property of that party, pending the establishment of the arbitral tribunal. The costs
and expenses of such arbitration shall be paid by and be the sole responsibility of the Company, including but not limited to the
Investor’s attorneys’ fees and each arbitrator’s fees. The arbitrators' decision must set forth a reasoned basis
for any award of damages or finding of liability. The arbitrators' decision and award will be made and delivered as soon as reasonably
possibly and in any case

 

    	13

     

    

within sixty (60) days' following the conclusion of the
arbitration hearing and shall be final and binding on the parties and may be entered by any court having jurisdiction thereof.

 

e.                  
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.

 

f.                  
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.

 

g.                 
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, 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.

 

h.                 
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.

 

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

 

j.                   
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.

 

k.                 
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.

 

l.                   
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.

 

m.               
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.

 

* * * * * *

 

    	14

     

    

IN WITNESS WHEREOF, the parties have caused this Agreement
to be duly executed as of the Execution Date.

 

THE COMPANY: 

 

PRECISION THERAPEUTICS INC.

 

By: /s/ Bob Myers 

Name: Bob Myers

Title: Chief Financial Officer

 

 

 

BUYER:

 

L2 CAPITAL, LLC

 

By: /s/ Adam Long

Title: Managing Partner

 

 

 

 

 

 

    

     

    

EXHIBIT A

 

TO REGISTRATION RIGHTS AGREEMENT

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

, 2018

 

Corporate Stock Transfer, Inc.

3200 Cherry Creek South Drive

Suite 430

Denver, CO 80209

 

Re: EFFECTIVENESS OF REGISTRATION STATEMENT

 

Ladies and Gentlemen:

 

We are counsel to Precision Therapeutics
Inc., a Delaware corporation (the “Company”), and have represented the Company in connection with that
certain Securities Purchase Agreement, dated as of September 28, 2018 (the “Purchase Agreement”), entered into
by and between the Company and L2 Capital, LLC (the “Buyer”) to sell to the Buyer an 8% Senior Secured Promissory
Note of the Company in the aggregate principal amount of US$2,013,635.75 (together with any note(s) issued in replacement thereof
or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”),
convertible into shares of common stock, par value $0.01 share, of the Company (the “Common Stock”) subject
to the terms of the Note (the “Conversion Shares”), (ii) a warrant to acquire up to 939,261 shares (the “Warrant
Shares”) of Common Stock at an exercise price as set forth in that certain Common Stock Purchase Warrant dated as of
the September 28, 2018 (the “Warrant”), upon the terms and subject to the limitations and conditions set forth
in the Warrant and (iii) 455,000 shares of Common Stock to be issued as an inducement to the Buyer to enter into this Agreement
(the “Inducement Shares”, and together with the Conversion Shares and Warrant Shares, the “Issuance
Shares”). In connection with the transactions contemplated by the Purchase Agreement, the Company has registered with
the U.S. Securities & Exchange Commission [________] Shares of Common Stock issued and/or to be issuable to the Buyer
upon purchase from the Company by the Buyer from time to time in accordance with the Purchase Agreement (the “Shares”).

 

Pursuant to the Purchase Agreement, the
Company also has entered into a Registration Rights Agreement, of even date with the Purchase Agreement with the Buyer (the
“Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to register the
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 Securities and Exchange Commission (the “SEC”) relating to the resale of
[              ] shares of Common Stock issued and/or to be issuable under the Purchase Agreement (the “Registered
Shares”).

 

    

     

    

 

In connection with the foregoing, we
advise you that a member of the SEC’s staff has advised us by telephone 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 telephonic inquiry of a member of the SEC’s staff, 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 Registered Shares are available for resale under the Securities Act pursuant to the Registration Statement and may be
issued without any restrictive legend.

 

Very truly yours,

[Company Counsel]

 

By:____________________________

 

cc:           L2 Capital, LLC

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