Document:

Exhibit 10.2

 

Execution Copy

 

INVESTORS’ RIGHTS AGREEMENT

 

This Investors’ Rights Agreement (this “Agreement”)
is made and entered into as of June 29, 2017, by and among Transgenomic, Inc., a Delaware corporation (the “Company”),
and the several purchasers signatory hereto (each a “Purchaser” and collectively, the “Purchasers”).

 

 This Agreement is made pursuant to the Securities
Purchase Agreement, dated as of the date hereof between the Company and certain of the Purchasers (the “Purchase Agreement”).

 

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

 

1.             Definitions.
Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given
such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Affiliate” means, with
respect to any Person, any other Person which directly or indirectly controls, is controlled by, or is under common control with,
such Person.

 

“Business Day” means
a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business.

 

“Commission” means the
Securities and Exchange Commission.

 

“Common Stock” means
the common stock of the Company, par value $0.01 per share, and any securities into which such common stock may hereinafter be
reclassified.

 

“Company Notice” means
written notice from the Company notifying the selling Transferring Purchasers that the Company intends to exercise its Right of
First Refusal as to some or all of the Transfer Stock with respect to any Proposed Purchaser Transfer.

 

“Effective Date” means
the date that the Registration Statement filed pursuant to Section 2(a) is first declared effective by the Commission.

 

“Effectiveness Deadline”
means the one hundred thirty-fifth (135th) calendar day following the Initial Closing Date (or, in the event the Commission
reviews and has written comments to the Registration Statement, the one hundred eightieth (80th) calendar day following
the Initial Closing Date); provided, however, that if the Company is notified by the Commission that the Registration Statement
will not be reviewed or is no longer subject to further review and comments, the Effectiveness Deadline as to such Registration
Statement shall be the third (3rd) Trading Day following the date on which the Company is so notified if such date precedes
the dates otherwise required above; provided, further, that if the Effectiveness Deadline falls on a Saturday, Sunday or
other day that the Commission is closed for business, the Effectiveness Deadline shall be extended to the next Business Day on
which the Commission is open for business.

 

     

     

    

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Filing Deadline” means
the one hundred fifth (105th) calendar day following the Initial Closing Date, provided, however, that if the
Filing Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Filing Deadline shall
be extended to the next business day on which the Commission is open for business.

 

“Holder” or “Holders”
means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Investor Notice” means
written notice from a Purchaser notifying the Company and the selling Transferring Purchaser that such Purchaser intends to exercise
its Right of First Refusal Right as to a portion of the Transfer Stock with respect to any Proposed Purchaser Transfer.

 

“Person” means an individual
or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Preferred Stock” means
the Series A Senior Convertible Preferred Stock, par value $0.01 per share, and any securities into which such Series A Senior
Convertible Preferred Stock may hereinafter be reclassified.

 

“Proceeding” means an
action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as
a deposition), whether commenced or threatened.

 

“Proposed Purchaser Transfer”
means any assignment, sale, offer to sell, pledge, mortgage, hypothecation, encumbrance, disposition of or any other like transfer
or encumbering of any Transfer Stock (or any interest therein) proposed by any of the Purchasers.

 

“Proposed Transfer Notice”
means written notice from a Transferring Purchaser setting forth the terms and conditions of a Proposed Purchaser Transfer.

 

“Prospective Transferee”
means any person to whom a Transferring Purchaser proposes to make a Proposed Purchaser Transfer.

 

“Prospectus” means the
prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such
Prospectus.

 

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“Registrable Securities”
means all of (i) the Shares and (ii) any securities issued or issuable or distributable in respect of, or in substitution for,
any securities in (i) above upon any conversion, exercise, stock split, dividend or other distribution, merger, consolidation,
exchange, recapitalization or similar event (collectively, the “Company Shares”), provided, that
with respect to a particular Holder, such Holder’s Company Shares shall cease to be Registrable Securities upon the earliest
to occur of the following: (A) a Registration Statement with respect to the sale of such Registrable Securities has been declared
effective under the Securities Act and such Registrable Securities have been disposed of in accordance with the plan of distribution
set forth in such Registration Statement (in which case, only such security sold by the Holder shall cease to be a Registrable
Security); (B) if all of the Company Shares then owned by such Holder and its Affiliates could be sold in any ninety (90)-day period
pursuant to Rule 144 without restriction as to volume or manner of sale and the restrictive legends and stop orders have been removed
from such Holder’s Company Shares; or (C) such Company Shares are otherwise transferred, assigned, sold, conveyed or otherwise
disposed of.

 

“Registration Statement”
shall have the meaning set forth in Section 2(a).

 

“Right of First Refusal”
means the right, but not an obligation, of each Purchaser to purchase up to its pro rata portion (based upon the total number of
shares of Capital Stock then held by all Investors) of any Transfer Stock with respect to a Proposed Puchaser Transfer, on the
terms and conditions specified in the Proposed Transfer Notice.

 

“Rule 144” means Rule
144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 415” means Rule
415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 424” means Rule
424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“SEC Filings” shall
mean all reports, schedules, forms, statements and other documents filed or required to be filed by the Company with the Commission
pursuant to the requirements of the Securities Act or the Exchange Act, including material filed pursuant to Section 13(a)
or 15(c) of the Exchange Act, in each case, together with all exhibits, supplements, amendments and schedules thereto, and all
documents incorporated by reference therein.

 

“SEC Guidance” means
(i) any publicly-available written or oral guidance, comments, requirements or requests of the Commission staff and (ii) the Securities
Act.

 

“Secondary Notice” means
written notice from the Purchasers notifying the Company and the selling Transferring Purchaser that the Purchasers do not intend
to exercise their Right of First Refusal as to all shares of Transfer Stock with respect to any Proposed Purchaser Transfer.

 

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“Secondary Refusal Right”
means the right, but not an obligation, of each the Company to any Transfer Stock not purchased pursuant to the Right of First
Refusal, on the terms and conditions specified in the Proposed Transfer Notice.

 

“Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares” means the shares
of Common Stock issued or issuable upon conversion of the Preferred Stock

 

“Transfer Stock” means
shares of Preferred Stock owned by a Purchaser, but does not include any shares of Common Stock issued or issuable upon conversion
of Preferred Stock.

 

“Transferring Purchaser”
means any Purchaser proposing to transfer or sell shares of Preferred Stock; provided, however, that ******** (including
its Affiliates) shall not be deemed a Transferring Purchaser if ******** (including its Affiliates) proposes to transfer or sell
shares of Preferred Stock within sixty (60) days following the date of the this Agreement.

 

“Undersubscription Notice”
means written notice from a Purchaser notifying the Company and the selling Transferring Purchaser that such Purchaser intends
to exercise its option to purchase all or any portion of the Transfer Stock not purchased pursuant to the Right of First Refusal.

 

2.            Registration.

 

(a)          On
or prior to the Filing Deadline, the Company shall prepare and file with the Commission a registration statement covering the resale
of the Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415 or, if Rule 415 is not available
for offers and sales of the Registrable Securities, by such other means of distribution of Registrable Securities as the Holders
may reasonably specify, in respect of which the Company may use a Form S-3 registration statement (or any successor short
form registration statement available for such resale that permits incorporation by reference at least to the same extent as such
form) (“Form S-3”) or, if Form S-3 is not then available to the Company, on such form of registration
statement as is then available to effect a registration for resale of the Registrable Securities (together with the Form S-3, the
“Registration Statement”). The Registration Statement shall contain (except if otherwise required pursuant
to written comments received from the Commission upon a review of such Registration Statement) a “Plan of Distribution”
Section that will include all such transactions as the Holders may reasonably request in writing prior to the filing of the
Registration Statement and that can be included in the Registration Statement under the rules and regulations of the Commission;
provided, however, that no Holder shall be named as an “underwriter” in the Registration Statement without such
Holder’s prior written consent.

 

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(b)          The
Company shall use its commercially reasonable efforts to cause the Registration Statement to be declared effective by the Commission
as soon as practicable and no later than the Effectiveness Deadline (including filing with the Commission a request for acceleration
of effectiveness in accordance with Rule 461 promulgated under the Securities Act), and shall use its commercially reasonable efforts
to keep the Registration Statement continuously effective under the Securities Act until the earlier of (i) such time as all of
the Registrable Securities covered by such Registration Statement have been sold by the Holders or (ii) the date that all Registrable
Securities then owned by such Holder and its Affiliates could be sold in any ninety (90)-day period pursuant to Rule 144 without
restriction as to volume or manner of sale and the restrictive legends and stop orders have been removed from such Holder’s
Registrable Securities (the “Effectiveness Period”). The Company shall promptly notify the Holders of
the effectiveness of the Registration Statement and shall promptly, and in no event later than the second Trading Day after the
Company receives notice of the effectiveness of the Registration Statement, file a final Prospectus with the Commission, as required
by Rule 424(b).

 

(c)          Each
Holder agrees to promptly complete, execute, acknowledge and deliver such customary selling stockholder questionnaires and other
documents, certificates, instruments, representations and warranties and indemnities as may be reasonably requested by the Company
in connection with the filing of the Registration Statement and the inclusion of such Holder as a selling stockholder in the Registration
Statement. Each Holder further agrees that it shall not be entitled to be named as a selling securityholder in the Registration
Statement or use the Prospectus for offers and resales of Registrable Securities at any time, unless such Holder has furnished
to the Company such documents and information as described in the previous sentence. Each Holder acknowledges and agrees that the
information furnished in writing by the Holder as described in this Section 2(c) will be used by the Company in the
preparation of the Registration Statement and hereby consents to the inclusion of such information in the Registration Statement.

 

(d)          In
the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall
(i) register the resale of the Registrable Securities on another appropriate form reasonably acceptable to the Holders and (ii)
undertake to register the Registrable Securities on Form S-3 promptly after such form is available, provided, that the Company
shall maintain the effectiveness of the registration statement then in effect until such time as a registration statement on Form
S-3 covering the Registrable Securities has been declared effective by the Commission.

 

3.             Piggyback
Registration.

 

(a)          If
at any time or from time to time the Company shall determine to register (including for this purpose a registration effected by
the Company for securityholders other than Purchasers) any of its shares or other securities, (other than (i) in a registration
relating solely to employee benefit plans, (ii) a registration on Form S-4 or S-8 (or such other similar successor forms then in
effect under the Securities Act), (iii) a registration pursuant to which the Company is offering to exchange its own securities,
(iv) a registration statement relating solely to dividend reinvestment or similar plans, (v) a resale shelf registration statement
relating solely to debt securities of the Company that are convertible into Common Stock and the underlying shares of Common Stock,
(vi) a registration on any registration form that does not permit secondary sales, (viii) a registration of the Company’s
Common Stock on the Company’s current shelf registration statement (No. 333-201907) in connection with any public offering
of the Company’s Common Stock at any time within the six-month period following the date of this Agreement, or (vii) a registration
pursuant to Section 2 hereof), the Company will:

 

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		A.	promptly (but in no event less than ten (10) Business Days
before the effective date of the relevant Registration Statement) give to Purchasers written notice thereof; and

 

		B.	include in such registration (and any related qualification
under state securities laws or other compliance), and in any underwriting involved therein, all the Registrable Securities specified
in a written request or requests, made within five (5) Business Days after receipt of such written notice from the Company, by
a Purchaser, except as set forth in Section 4 below.

 

(b)          The
Company shall have the right to terminate or withdraw any registration initiated by it under this Section 3 prior to
the effectiveness of such registration whether or not any Purchaser has elected to include Registrable Securities in such registration.
The expenses of such withdrawn registration shall be borne by the Company in accordance with Section 6 hereof.

 

(c)          Notwithstanding
anything to the contrary herein, the Purchasers’ piggyback registration rights pursuant to this Section 3 will
be available for the entire term of this agreement provided, however, that such piggyback registration rights pursuant
to this Section 3 will not be available to the Purchasers (i) during any period in which the Registration Statement
has been declared and remains effective and (ii) commencing on the fourth anniversary of the Initial Closing Date.

 

4.            Underwriting
Requirements. If a registration pursuant to Section 3 is an underwritten offering, the right of Holders to registration
pursuant to Section 3 shall be conditioned upon Holders’ participation in such underwriting and the inclusion
of Holders’ Registrable Securities in the underwriting to the extent provided herein.  Holders shall, together with
the Company, enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting
by the Company. Any such participating Holder shall not be required to make any representations or warranties to, or agreements
with the Company or the underwriters in connection with such underwriting agreement other than representations, warranties or
agreements regarding such participating Holder, compliance with laws, such participating Holder’s title to the Registrable
Securities, such participating Holder’s authority to sell the Registrable Securities, such Holder’s intended method
of distribution, no conflicts with respect to the sale of Registrable Securities, absence of liens with respect to the Registrable
Securities, receipt of all required consents and approvals with respect to the entry into such underwriting agreement and the
sale of such Registrable Securities or any other representations required to be made by such participating Holder under applicable
law, rule or regulation, and the aggregate amount of the liability of such participating Holder in connection with such underwriting
agreement shall not exceed, except in the case of fraud or willful misconduct, such participating Holder’s net proceeds
(after deducting underwriting discounts and commissions) from such underwritten offering. Notwithstanding any other provision
of this Section 4, if the underwriter determines that marketing factors require a limitation of the number of shares
to be underwritten and advises the Company in writing, the Company shall so advise the participating Holders, and the number of
shares of such securities, including Registrable Securities, that may be included in the registration and underwriting shall be
allocated first to the Company, second to Purchasers and third to any other holders with registration rights.  Notwithstanding
the foregoing, no such reduction shall (i) reduce the securities being offered by the Company for its own account to be included
in the registration and underwriting, or (ii) reduce the amount of securities of Purchasers included in the registration
below twenty percent (20%) of the total amount of securities included in such registration. No securities excluded from the
underwriting by reason of the underwriter’s marketing limitation shall be included in such registration.  For the avoidance
of doubt, nothing in this Section 4 is intended to diminish the number of securities to be included by the Company
in the underwriting.

 

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5.            Registration
Procedures.

 

In connection with the Company’s registration
obligations hereunder, the Company shall:

 

(a)          Provide
copies to and permit counsel designated by the Holders to review each Registration Statement and any Prospectus, and all amendments
and supplements thereto, no fewer than five (5) days prior to their filing with the SEC and not file any document in a form to
which such Holder reasonably objects in good faith; provided, however, that the Company is notified of such objection in
writing at least one (1) Trading Day prior to such filing.

 

(b)          (i)
Prepare and file with the Commission such pre- and post-effective amendments and supplements, to the Registration Statement and
the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to
the applicable Registrable Securities for its Effectiveness Period; (ii) cause the related Prospectus to be amended or supplemented
by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed
pursuant to Rule 424; (iii) respond as promptly as reasonably practicable to any comments received from the Commission with respect
to the Registration Statement or any amendment thereto and, as promptly as reasonably possible, provide the Holders true and complete
copies of all correspondence from and to the Commission relating to such Registration Statement that pertains to the Holders as
“Selling Stockholders” but not any comments that would result in the disclosure to the Holders of material and non-public
information concerning the Company; and (iv) comply with the provisions of the Securities Act and the Exchange Act with respect
to the disposition of all Registrable Securities covered by the Registration Statement until such time as all of such Registrable
Securities shall have been disposed of (subject to the terms of this Agreement) in accordance with the intended methods of disposition
by the Holders thereof as set forth in such Registration Statement as so amended or in such Prospectus as so supplemented; provided,
however, that each Holder shall be responsible for the delivery of the Prospectus to the Persons to whom such Holder sells
any of the Registrable Securities (including in accordance with Rule 172 under the Securities Act), and each Holder agrees to dispose
of Registrable Securities in compliance with the “Plan of Distribution” described in the Registration Statement and
otherwise in compliance with applicable federal and state securities laws. In the case of amendments and supplements to the Registration
Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 5(b) by reason
of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous report under the Exchange Act, the Company
shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments
or supplements with the Commission on the same day on which the Exchange Act report which created the requirement for the Company
to amend or supplement such Registration Statement was filed.

 

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(c)          Notify
the Holders as promptly as reasonably practicable (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to
such filing): (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to the Registration Statement is
proposed to be filed; (B) of any comments from the Commission in writing on the Registration Statement that pertain to the Holders
as a “Selling Stockholder” or to the “Plan of Distribution” and all written responses thereto (excluding
any information that the Company believes would constitute material and non-public information) and (C) with respect to the Registration
Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other
Federal or state governmental authority for amendments or supplements to the Registration Statement or Prospectus or for additional
information that pertains to the Holders as “Selling Stockholders” or the “Plan of Distribution”; (iii)
of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness
of the Registration Statement or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities
for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; (v) of the occurrence of any
event or passage of time that makes the financial statements included in the Registration Statement ineligible for inclusion therein
or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein
by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other
documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein (in the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they
were made), not misleading and (vi) of the occurrence or existence of any pending corporate development with respect to the Company
that the Company believes may be material and that, in the determination of the Company, makes it not in the best interest of the
Company to allow continued availability of the Registration Statement or Prospectus, provided, that, any and all such information
shall remain confidential to each Holder until such information otherwise becomes public, unless disclosure by a Holder is required
by law; and provided, further, that notwithstanding each Holder’s agreement to keep such information confidential,
each such Holder makes no acknowledgement that any such information is material, non-public information.

 

(d)          Use
commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the
effectiveness of the Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any
of the Registrable Securities for sale in any jurisdiction, as soon as practicable.

 

(e)          If
requested by a Holder, furnish to such Holder, without charge, such number of conformed copies of the applicable Registration Statement
and Prospectus and each amendment thereto and all exhibits (including those previously furnished or incorporated by reference)
promptly after the filing of such documents with the Commission and to the extent reasonably requested by such Holder.

 

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(f)          Prior
to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities; provided, that the Company shall not be required to qualify generally
to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction
where it is not then so subject or file a general consent to service of process in any such jurisdiction.

 

(g)          If
requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing
Registrable Securities that may be delivered to a transferee pursuant to the Registration Statement, which certificates shall be
free, to the extent permitted by the Purchase Agreement and under law, of all restrictive legends, and to enable such Registrable
Securities to be in such denominations and registered in such names as any such Holders may reasonably request.

 

(h)          Following
the occurrence of any event contemplated by Section 5(c), as promptly as reasonably practicable (taking into account
the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature disclosure
of such event), prepare a supplement or amendment, including a post-effective amendment, to the Registration Statement or a supplement
to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, neither the Registration Statement nor any Prospectus will contain an 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
the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they were made),
not misleading. If the Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 5(c) above
to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend
use of such Prospectus. The Company will use its commercially reasonable efforts to ensure that the use of the Prospectus may be
resumed as promptly as is practicable.

 

(i)          In
the case of an underwritten offering, make such representations and warranties to and enter into customary agreements with the
participating Holders and the underwriters or agents, if any, in form, substance and scope as are customarily made by issuers in
secondary underwritten public offerings; and

 

(j)          Use
its commercially reasonable best efforts to comply with all applicable securities laws and make available to its security holders,
as soon as reasonably practicable, an earnings statement satisfying the provisions of Section 11(a) of the Securities Act
and the rules and regulations promulgated thereunder, to the extent not publicly available on the Commission’s Edgar System.

 

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6.          Registration
Expenses. All fees and expenses incident to the Company’s performance of or compliance with its obligations under this
Agreement (excluding any underwriting discounts and selling commissions relating to Registrable Securities sold under a Registration
Statement on behalf of a Holder, and all legal fees and expenses of legal counsel for any Holder) shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to the Registration Statement; provided, however, that in no
event shall the Company be responsible for any underwriting, broker or similar fees or commissions of any Holder. Other than the
legal fees of one outside counsel to the Holders in an amount not to exceed $50,000 in the aggregate in connection with the Company’s
obligations with respect to Registrable Securities hereunder, the Company shall not be responsible for any legal fees or other
costs of the Holders.

 

7.          Indemnification.

 

(a)          Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify, defend and hold harmless each
Holder, the officers, directors, agents, investment advisers, partners, members, managers, stockholders, Affiliates and employees
of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) and the officers, directors, partners, members, managers, stockholders, agents and employees of each such
controlling Person (collectively, the “Stockholder Parties”), to the fullest extent permitted by applicable
law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs
of preparation and investigation and reasonable attorneys’ fees) and expenses (collectively, “Losses”),
as incurred, that arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any
Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary
prospectus under which Registrable Securities were registered under the Securities Act, or arising out of or relating to any omission
or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein (in the
case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not
misleading, except to the extent, but only to the extent, that (A) such untrue statements, alleged untrue statements, omissions
or alleged omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder
expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method
of distribution of Registrable Securities and was reviewed and approved in writing by such Holder expressly for use in the Registration
Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (B) in the case of an occurrence
of an event of the type specified in Section 5(c)(iii), (iv) and (vi), related to the use by a Holder
of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or
defective, or (C) to the extent that any such Losses arise out of the Holder’s (or any other indemnified Person’s)
failure to send or give a copy of the Prospectus or supplement (as then amended or supplemented), if required, pursuant to Rule
172 under the Securities Act (or any successor rule) to the Persons asserting an untrue statement or alleged untrue statement or
alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities
to such Person if such statement or omission was corrected in such Prospectus or supplement, (ii) any violation or alleged violation
by the Company of any federal, state or common law rule or regulation applicable to the Company or any of its subsidiaries in connection
with any such registration, qualification, compliance or sale of the Registrable Securities or in connection with the performance
of its obligations under this Agreement, (iii) any failure to register or qualify Registrable Securities in any state where the
Company or its agents have affirmatively undertaken or agreed in writing that the Company (the undertaking of any underwriter being
attributed to the Company) will undertake such registration or qualification on behalf of the Holders of such Registrable Securities
(provided that in such instance the Company shall not be so liable if it has undertaken its reasonable best efforts to so
register or qualify such Registrable Securities and provided, further, that the Company shall in no event be required
to qualify to do business or to file a general consent to service of process in any state or jurisdiction unless the Company is
already subject to service in such state or jurisdiction and except as may be required under the Securities Act) or (iv) any actions
or inactions or proceedings in respect of the foregoing. The Company shall notify the Holders promptly of the institution, threat
or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the
Company is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of
an Indemnified Party (as defined in Section 7(c)) and shall survive the transfer of the Registrable Securities by the
Holders.

 

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(b)          Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20
of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, arising out of or are based solely upon any untrue or alleged untrue
statement of a material fact contained in the Registration Statement, any Prospectus, or any form of prospectus, or in any amendment
or supplement thereto or in any preliminary prospectus under which Registrable Securities were registered under the Securities
Act, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus, or any form of prospectus or supplement thereto, in light of the
circumstances under which they were made) not misleading (i) to the extent that such untrue statements or omissions are based solely
upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or (ii) to
the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities
and was reviewed and approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such
form of Prospectus or in any amendment or supplement thereto, or (iii) in the case of an occurrence of an event of the type specified
in Section 5(c)(iii), (iv) and (vi), to the extent related to the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective. In no
event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received
by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

 

    	 	11	 

     

    

 

(c)          Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity
is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume
the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all
reasonable fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified
Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is
not subject to appeal or further review) that such failure shall have materially and adversely prejudiced the Indemnifying Party.

 

An Indemnified Party shall have the right to employ
separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall
be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees
and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including
any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been
advised by counsel that a conflict of interest exists if the same counsel were to represent such Indemnified Party and the Indemnifying
Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel
at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such
counsel shall be at the expense of the Indemnifying Party); provided, that the Indemnifying Party shall not be liable for
the fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties. The Indemnifying Party
shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be
unreasonably withheld, delayed or conditioned. No Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement
includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

Subject to the terms of this Agreement, all fees
and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating
or preparing to defend such Proceeding in a manner not inconsistent with this Section 7) shall be paid to the Indemnified
Party, as incurred, within twenty (20) Trading Days of written notice thereof to the Indemnifying Party; provided, that
the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to
such actions for which such Indemnified Party is finally judicially determined to not be entitled to indemnification hereunder).
The failure to deliver written notice to the Indemnifying Party within a reasonable time of the commencement of any such action
shall not relieve such Indemnifying Party of any liability to the Indemnified Party under this Section 7, except to
the extent that the Indemnifying Party is materially and adversely prejudiced in its ability to defend such action.

 

    	 	12	 

     

    

 

(d)          Contribution.
If a claim for indemnification under Section 7(a) or 7(b) is unavailable to an Indemnified Party or insufficient
to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party,
shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate
to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions
that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party
and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue
or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or
relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a
party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 7 was
available to such party in accordance with its terms.

 

The parties hereto agree that it would not be
just and equitable if contribution pursuant to this Section 7(d) were determined by pro rata allocation or by any other
method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 7(d), (A) no Holder shall be required to contribute, in the aggregate,
any amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason
of such untrue or alleged untrue statement or omission or alleged omission and (B) no contribution will be made under circumstances
where the maker of such contribution would not have been required to indemnify the Indemnified Party under the fault standards
set forth in this Section 7. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

(e)          The
remedies provided for in this Section 7 are not exclusive and shall not limit any rights or remedies which may be available
to any indemnified party at law or in equity or pursuant to any other agreement, including the Purchase Agreement; provided
that the indemnities provided in this Section 7 shall survive the transfer of any Registrable Securities by the Holder.

 

8.          Preemptive
Rights

 

(a)          General.
Each Purchaser has the right to purchase such Purchaser’s Pro Rata Share of any New Securities (each as defined below) that
the Company may from time to time issue after the date of this Agreement, provided, however, no Purchaser will have the right to
purchase any such New Securities if the Purchaser cannot demonstrate to the Company’s reasonable satisfaction that such Purchaser
is at the time of the proposed issuance of such New Securities an “accredited investor” as such term is defined in
Regulation D under the Securities Act. A Purchaser’s “Pro Rata Share” means the ratio of (a) the
number of shares of the Company’s Common Stock issued or issuable upon conversion of the shares of Preferred Stock owned
by such Purchaser, to (b) the Fully-Diluted Share Number. For purposes of this Agreement, the term “Fully-Diluted Share
Number” shall mean that number of shares of the Company’s capital stock equal to the sum of (i) all shares
of the Company’s capital stock (on an as-converted basis) issued and outstanding, assuming exercise or conversion of all
options, warrants and other convertible securities and (ii) all shares of the Company’s capital stock reserved and available
for future grant under any equity incentive or similar plan.

 

    	 	13	 

     

    

 

(b)          New
Securities. “New Securities” means any preferred stock of the Company, whether now authorized or
not, and rights, options or warrants to purchase preferred stock, and securities of any type whatsoever that are, or may become,
convertible or exchangeable into preferred stock; provided, however, that “New Securities” does not include: (a) shares
of preferred stock issuable upon exercise of any options, warrants, or rights to purchase any securities of the Company outstanding
as of the date of this Agreement and any securities issuable upon the conversion thereof or (b) shares of preferred stock issued
in connection with any stock split or stock dividend or recapitalization.

 

(c)          Procedures.
If the Company proposes to undertake an issuance of New Securities, it shall give notice to each Purchaser of its intention to
issue New Securities (the “Notice”), describing the type of New Securities and the price and the general
terms upon which the Company proposes to issue the New Securities. Each Purchaser will have (10) days from the date of notice,
to agree in writing to purchase such Purchaser’s Pro Rata Share of such New Securities for the price and upon the general
terms specified in the Notice by giving written notice to the Company and stating therein the quantity of New Securities to be
purchased (not to exceed such Purchaser’s Pro Rata Share).

 

(d)          Failure
to Exercise. If the Purchasers fail to exercise in full the right of first refusal within the 10 day period, then the Company
will have one hundred twenty (120) days thereafter to sell the New Securities with respect to which the Purchasers’ rights
of first refusal hereunder were not exercised, at a price and upon general terms not materially more favorable to the purchasers
thereof than specified in the Company’s Notice to the Purchasers. If the Company has not issued and sold the New Securities
within the 120 day period, then the Company shall not thereafter issue or sell any New Securities without again first offering
those New Securities to the Purchasers pursuant to this Section 8.

 

9.          Right
of First Refusal

 

(a)          Grant.
Subject to the terms of Section 9(f) below, each Transferring Purchaser hereby unconditionally and irrevocably grants to
the remaining Purchasers a Right of First Refusal to purchase all or any portion of Transfer Stock that such Transferring Purchaser
may propose to transfer in a Proposed Purchaser Transfer, at the same price and on the same terms and conditions as those offered
to the Prospective Transferee.

 

(b)          Notice.
Each Transferring Purchaser proposing to make a Proposed Purchaser Transfer must deliver a Proposed Transfer Notice to the Company
and each Purchaser not later than forty-five (45) days prior to the consummation of such Proposed Purchaser Transfer. Such Proposed
Transfer Notice shall contain the material terms and conditions (including price and form of consideration) of the Proposed Purchaser
Transfer Notice and the identity of the Prospective Transferee. To exercise its Right of First Refusal under this Section 9,
a Purchaser must deliver a Purchaser Notice to the selling Transferring Purchaser within fifteen (15) days after delivery of the
Proposed Transfer Notice. In the event of a conflict between this Agreement and any other agreement that may have been entered
into by a Transferring Purchaser with the Company that contains a preexisting right of first refusal, the Company and the Transferring
Purchaser acknowledge and agree that the terms of this Agreement shall control and the preexisting right of first refusal shall
be deemed satisfied by compliance with Section 9(a) and this Section 9(b).

 

    	 	14	 

     

    

 

(c)          Undersubscription
of Transfer Stock. If options to purchase have been exercised by the Purchasers with respect to some but not all of the Transfer
Stock by the end of the fifteen (15)-day period specified in the second to last sentence of Section 9(b) (the “Purchaser
Notice Period”), then the Company shall, immediately after the expiration of the Purchaser Notice Period, send written
notice (the “Company Undersubscription Notice”) to those Purchasers who fully exercised their Right of First
Refusal within the Purchaser Notice Period (the “Exercising Purchasers”). Each Exercising Purchaser shall, subject
to the provisions of this Section 9(c), have an additional option to purchase all or any part of the balance of any such
remaining unsubscribed shares of Transfer Stock on the terms and conditions set forth in the Proposed Transfer Notice. To exercise
such option, an Exercising Purchaser must deliver an Undersubscription Notice to the selling Transferring Purchaser and the Company
within ten (10) days after the expiration of the Purchaser Notice Period. In the event there are two (2) or more such Exercising
Purchasers that choose to exercise the last-mentioned option for a total number of remaining shares in excess of the number available,
the remaining shares available for purchase under this Section 9(c) shall be allocated to each such Exercising Purchaser
based on that portion of the New Securities for which Purchasers were entitled to purchase but that were not purchased by the Purchasers
which is equal to the ratio of (a) the number of shares of Preferred Stock owned by such Exercising Purchaser immediately prior
to the issuance of New Securities (assuming full conversion of the Preferred Stock and exercise of all outstanding convertible
securities, rights, options and warrants, directly or indirectly, into Common Stock held by said Exercising Purchaser) to (b) the
total number of shares of Preferred Stock then held by all Exercising Purchasers (assuming full conversion of the Preferred Stock
into Common Stock held by all Exercising Purchasers) who wish to purchase such unsubscribed shares. If the options to purchase
the remaining shares are exercised in full by the Exercising Purchasers, the Company shall immediately notify all of the Exercising
Purchasers and the selling Transferring Purchasers of that fact.

 

(d)          Grant
of Secondary Refusal Right to Company. Subject to the terms of Section 9(f) below, each Transferring Purchaser hereby
unconditionally and irrevocably grants to the Company a Secondary Refusal Right to purchase all or any portion of the Transfer
Stock not purchased by the Purchasers pursuant to the Right of First Refusal, as provided in this Section 9(d). If the Purchasers
do not intend to exercise their Right of First Refusal with respect to all Transfer Stock subject to a Proposed Purchaser Transfer,
the Purchasers must deliver a Secondary Notice to the selling Transferring Purchaser and to the Company to that effect no later
than fifteen (15) days after the selling Transferring Purchaser delivers the Proposed Transfer Notice to the Purchaser. To exercise
its Secondary Refusal Right, the Company must deliver a Company Notice to the selling Transferring Purchaser and the Purchasers
within ten (10) days after the Company’s deadline for its delivery of the Secondary Notice as provided in the preceding sentence.
The Company may assign its Secondary Refusal Right in its sole discretion.

 

    	 	15	 

     

    

 

(e)          Consideration;
Closing. If the consideration proposed to be paid for the Transfer Stock is in property, services or other non-cash consideration,
the fair market value of the consideration shall be as determined in good faith by the Company’s Board of Directors and as
set forth in the Company Notice. If the Company or any Purchaser cannot for any reason pay for the Transfer Stock in the same form
of non-cash consideration, the Company or such Purchaser may pay the cash value equivalent thereof, as determined in good faith
by the Board of Directors and as set forth in the Company Notice. The closing of the purchase of Transfer Stock by the Company
and the Purchasers shall take place, and all payments from the Company and the Purchasers shall have been delivered to the selling
Transferring Purchaser, by the later of (i) the date specified in the Proposed Transfer Notice as the intended date of the Proposed
Purchaser Transfer and (ii) forty-five (45) days after delivery of the Proposed Transfer Notice.

 

(f)          Exempted
Transfers. Notwithstanding the foregoing or anything to the contrary herein, the provisions of this Section 9 shall
not apply: (a) in the case of a Transferring Purchaser that is an entity, upon a transfer by such Transferring Purchaser to its
Affiliates, stockholders, members, partners or other equity holders or (b) in the case of a Transferring Purchaser that is a natural
person, upon a transfer of Transfer Stock by such Transferring Purchaser made for bona fide estate planning purposes, either during
his or her lifetime or on death by will or intestacy to his or her spouse, child (natural or adopted), or any other direct lineal
descendant of such Transferring Purchaser (or his or her spouse) (all of the foregoing collectively referred to as “family
members”), or any other relative/person approved by unanimous consent of the full Board of Directors of the Company, or any
custodian or trustee of any trust, partnership or limited liability company for the benefit of, or the ownership interests of which
are owned wholly by, such Transferring Purchaser or any such family members; provided that in the case of clause(s) (a)
or (b), the Transferring Purchaser shall deliver prior written notice to the Purchasers of such transfer and such shares of Transfer
Stock shall at all times remain subject to the terms and restrictions set forth in this Agreement and such transferee shall, as
a condition to such issuance, deliver a counterpart signature page to this Agreement as confirmation that such transferee shall
be bound by all the terms and conditions of this Agreement as a Purchaser (but only with respect to the securities so transferred
to the transferee); and provided, in the case of any transfer pursuant to clause (a) or (b) above, that such transfer is
made pursuant to a transaction in which there is no consideration actually paid for such transfer.

 

10.       
Board Designation.

 

(i)          The
Company hereby agrees that the Purchasers may, upon written notice to the Company by the Purchasers holding a majority of the then-outstanding
Preferred Stock (the “Majority Purchasers”) (which notice shall indicate the number of securities each
Purchaser then owns in the Company), elect to cause, and the Company shall cause, its Board of Directors promptly to appoint two
(2) individuals selected by such Purchasers (each, a “Designated Director” and together, the “Designated
Directors”) to the Board of Directors, and to nominate for election at each meeting of the stockholders of the Company
at which members of the Board of Directors (or members of the applicable class of the Board of Directors, as the case may be) are
elected and included within the slate of directors contained in the Company’s proxy statement, provided that such Designated
Directors are reasonably acceptable to the nominating committee (or equivalent committee or the full Board of Directors, as applicable)
of the Board of Directors and to the management of the Company. The Company shall create vacancies on the Board of Directors, if
needed, to cause the Designated Directors to be appointed or elected, as the case may be, to the Board of Directors pursuant to
this Section 10.

 

    	 	16	 

     

    

 

(ii)         The
Company shall have the right to block a Designated Director from serving on the Board of Directors or require that such Designated
Director resign from the Board of Directors, if such Designated Director holds, or is nominated to hold, a management position
or board seat at a company that the Board of Directors reasonably and in good faith determines directly competes with the Company.

 

(iii)        In
the event the Designated Director is nominated for election at a meeting of the stockholders of the Company but is not elected
by the stockholders, the Company’s obligations pursuant to this Section 10 shall terminate and the Company shall have
no further obligations under this Section 10.

 

(iv)        During
the time that the Purchasers have a right to designate directors pursuant to this Section 10, in the event a vacancy is
created by the death, disability, retirement, resignation or removal of a Designated Director (other than pursuant to 10(c)),
the Majority Purchasers may upon written notice to the Company (which notice shall indicate the number of securities each Purchaser
then owns in the Company) appoint a new Designated Director to fill the resulting vacancy and the Company shall cause such person
to be promptly appointed to the Board of Directors, and nominated for election at each meeting of the stockholders of the Company
at which members of the Board of Directors are elected and included within the slate of directors contained in the Company’s
proxy statement, provided that such Designated Director is reasonably acceptable to the nominating committee (or equivalent committee
or the full Board of Directors, as applicable) of the Board of Directors and to the management of the Company.

 

(v)         Notwithstanding
the foregoing, the rights of the Majority Purchasers to designate directors shall at all times be subject to applicable rules and
published guidance of Nasdaq. The Designated Director must at all times be considered “independent” as determined in
accordance with the rules of the Nasdaq.

 

(vi)        The
right of the Purchasers to designate a director pursuant to this Section 4.11 shall terminate at the time when the Purchasers
no longer hold at least 50% of the Preferred Stock owned, in the aggregate, at the time of this Agreement (the “Termination
Date”). For purposes of clarity, in the event either of the Designated Director’s term ends following the Termination
Date, the Company shall be under no obligation to re-designate or otherwise nominate such Designated Director or any other director
pursuant to this Section 10 following the Termination Date.

 

11.        Miscellaneous.

 

(a)          Term.  This
Agreement shall terminate with respect to any Holder, (i) if all of the Registrable Securities held by such Holder have been sold
in a registration pursuant to the Securities Act or pursuant to an exemption therefrom or (ii) if all of the Registrable Securities
then owned by such Holder and its Affiliates could be sold in any ninety (90)-day period pursuant to Rule 144 without restriction
as to volume or manner of sale and the restrictive legends and stop orders have been removed from such Holder’s Registrable
Securities. Notwithstanding the foregoing, the rights and obligations of the parties set forth in Sections 7 and 8
shall survive the termination or expiration of this Agreement.

 

    	 	17	 

     

    

 

(b)          Misstatements
or Omissions. Notwithstanding any other provisions of this Agreement to the contrary, the Company shall cause (i) each Registration
Statement (as of the effective date of such Registration Statement), any amendment thereof (as of the effective date thereof) or
supplement thereto (as of its date), (A) to comply in all material respects with applicable SEC Guidance and (B) not to contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein not misleading, and (ii) any related Prospectus (including any preliminary Prospectus) or issuer free
writing prospectus and any amendment thereof or supplement thereto, as of its date, (A) to comply in all material respects with
applicable SEC Guidance and (B) not to contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, not misleading; provided, however, the
Company shall have no such obligations or liabilities with respect to any written information pertaining to any Holder that is
furnished in writing to the Company by or on behalf of such Holder specifically for inclusion therein or to the extent that such
information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed
and approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus
or in any amendment or supplement thereto.

 

(c)          Rules
144 and Regulation S.  The Company covenants that it will file the reports required to be filed by it under the Securities
Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder (or, if the Company is not required
to file such reports, it will, upon the reasonable request of any Holder, make publicly available such necessary information for
so long as necessary to permit sales pursuant to Rules 144 or Regulation S under the Securities Act), and it will take such further
action as any Holder may reasonably request, all to the extent required from time to time to enable the Holders, to sell Registrable
Securities without registration under the Securities Act within the limitation of the exemptions provided by (i) Rules 144 or Regulation
S under the Securities Act, as such Rules may be amended from time to time, or (ii) any similar rule or regulation hereafter adopted
by the Commission.  Upon the reasonable request of a Holder, the Company will deliver to such Holder a written statement
as to whether it has complied with such requirements and, if not, the specifics thereof.

 

(d)          Remedies.
In the event of a breach by the Company or by a Holder of any of their obligations under this Agreement, each Holder or the Company,
as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery
of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each Holder agree that
monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions
of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach,
it shall waive the defense that a remedy at law would be adequate.

 

    	 	18	 

     

    

 

(e)          No
Other Registration Rights. Other than as disclosed in the Company’s SEC Filings, no Person has any right to cause the
Company to effect the registration under the Securities Act covering the transfer of any securities of the Company and the Company
shall not prior to the Effective Date enter into any agreement providing any such right to any of its security holders.

 

(f)          Compliance.
Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to the Registration
Statement and shall sell the Registrable Securities only in accordance with a method of distribution described in the Registration
Statement.

 

(g)          Discontinued
Disposition. If the Company shall furnish to the Holders a certificate signed by the Chief Executive Officer or equivalent
senior executive officer of the Company advising such Holder of the occurrence of any event of the kind described in 5(c)(iii),
(iv) and (vi), then the Company may suspend use of such Registration Statement covering the Registrable Securities (a “Shelf
Suspension”); provided, however, that the Company shall not be permitted to exercise a Shelf Suspension
more than twice, or for more than an aggregate of 45 calendar days, in each case, during any 12-month period. Each Holder agrees
that, upon delivery of any certificate by the Company set forth in the first sentence of this Section, such Holder will forthwith
discontinue disposition of Registrable Securities pursuant to the applicable Registration Statement until the Company informs such
Holder in accordance with this Section 8(h) that the Shelf Suspension has been terminated.  The Shelf Suspension
shall not contain any material, non-public information of the Company.  In the case of a Shelf Suspension, the Holders
agree to suspend use of the applicable Prospectus and any issuer free writing prospectus in connection with any sale or purchase
of, or offer to sell or purchase, Registrable Securities, upon delivery of the notice referred to above.  The Company
shall immediately notify the Holders upon the termination of any Shelf Suspension, amend or supplement the Prospectus and any issuer
free writing prospectus, if necessary, so it does not contain a material misstatement of fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading and furnish to the Holders such numbers
of copies of the Prospectus and any issuer free writing prospectus as so amended or supplemented as the Holders may reasonably
request.  The Company agrees, if necessary, to supplement or make amendments to each Registration Statement if required
by the registration form used by the Company for the applicable Registration Statement or by SEC Guidance, or as may reasonably
be requested by any Holder.

 

(h)          No
Inconsistent Agreements.  The Company is not currently a party to, and shall not hereafter enter into any agreement with
respect to its securities that would have the effect of impairing the rights granted to the Holders by this Agreement or otherwise
conflicts with the provisions hereof.

 

    	 	19	 

     

    

 

(i)          Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented,
or waived unless the same shall be in writing and signed by the Company and each of the Holders who, together with its affiliates,
then beneficially owns at least 700,000 shares of Registrable Securities (subject to adjustment for stock splits, combinations,
dividends, recapitalizations and the like following the date hereof), provided, that any party may give a waiver as to itself.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively
to the rights of a given Holder and that does not directly or indirectly affect the rights of other Holders may be given by Holders
of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions
of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the immediately preceding
sentence.

 

(j)          Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as
set forth in the Purchase Agreement.

 

(k)          Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the parties and their successors and permitted
assigns. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except
as expressly provided in this Agreement. The rights and obligations set forth herein may not be assigned, in whole or in part,
by any Purchaser without the Company’s prior written consent.

 

(l)          Binding
Effect.  Except as otherwise provided in this Agreement, the terms and provisions of this Agreement shall be binding
on and inure to the benefit of each of the parties hereto and their respective successors.

 

(m)          Third
Party Beneficiaries.  Nothing in this Agreement, express or implied, is intended or shall be construed to confer
upon any Person not a party hereto (other than those Persons entitled to indemnity or contribution hereunder, each of whom shall
be a third party beneficiary thereof) any right, remedy or claim under or by virtue of this Agreement.

 

(n)          Execution
and Counterparts. This Agreement may be executed in two or more counterparts, each of which when so executed shall be deemed
to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign
the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf”
format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such facsimile or “.pdf” signature were the original thereof.

 

(o)          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Purchase Agreement.

 

(p)          Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

    	 	20	 

     

    

 

(q)          Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their good faith reasonable
efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.

 

(r)          Headings.
The headings in this Agreement are for convenience only and shall not limit or otherwise affect the meaning hereof.

 

(s)          Recapitalization.  The
provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all equity securities of the
Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be
issued in respect of, in conversion of, in exchange for or in substitution of, the Registrable Securities and shall be appropriately
adjusted for any stock dividends, splits, reverse splits, combinations, recapitalizations and the like occurring after the date
hereof.

 

(t)          Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under this Agreement are several and
not joint with the obligations of any other Purchaser hereunder, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser hereunder. The decision of each Purchaser to purchase the Securities pursuant to the
Transaction Documents has been made independently of any other Purchaser. Nothing contained herein or in any other agreement or
document delivered at any closing, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute
the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the
Purchasers are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement.
Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making its investment
hereunder and that no Purchaser will be acting as agent of such Purchaser in connection with monitoring its investment in the Securities
or enforcing its rights under the Transaction Documents. Each Purchaser shall be entitled to protect and enforce its rights, including,
without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined
as an additional party in any Proceeding for such purpose. The Company acknowledges that each of the Purchasers has been provided
with the same Investors’ Rights Agreement for the purpose of closing a transaction with multiple Purchasers and not because
it was required or requested to do so by any Purchaser.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	21	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Investors’ Rights Agreement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	Transgenomic, INC.
	 	 	 
	 	By:	/s/ Paul Kinnon
	 	 	Name: Paul Kinnon
	 	 	Title: President and Chief Executive Officer

 

Signature
Page to Investors’ Rights Agreement

 

    	 	22	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Investors’ Rights Agreement as of the date first written above.

 

PURCHASERS:

 

By:_/s/______________________________

Name:

Title:

 

    	 	23	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Investors’ Rights Agreement as of the date first written above.

 

PURCHASERS:

 

 

 

By:/s/______________________________

Name:

 

    	 	24	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Investors’ Rights Agreement as of the date first written above.

 

PURCHASERS:

 

 

 

By:/s/______________________________

Name:

 

    	 	25	 

     

    

 

WITNESS WHEREOF, the parties have executed
this Investors’ Rights Agreement as of the date first written above.

 

PURCHASERS:

 

 

 

 

 

By:_/s/__________________________

Name:

Title:

 

Address:

 

 

 

 

 

 

 

 

 

By:_/s/______________________________

Name:

Title:

 

Address:

 

 

 

 

 

 

 

 

 

 

 

By:_/s/____________________________

Name:

Title:

Address:

 

    	 	26Exhibit 10.3

 

EXCHANGE AGREEMENT

 

THIS EXCHANGE AGREEMENT
(the “Agreement”), dated as of June 29, 2017, is made by and between Precipio, Inc. (formerly Transgenomic,
Inc.), a Delaware corporation (“Company”), and the holders of certain 4% Promissory Notes of the Company, dated April
12, 2017 ( the “Note”) and common stock purchase warrants, dated as of April 12, 2017 (the “Warrants”),
held by the parties signatory hereto (the “Holders”).

 

WHEREAS, pursuant to
that certain Securities Purchase Agreement (the “Purchase Agreement”), dated as of April 12, 2017, by and between the
Company and the Holders, whereby, among other things, the Holders purchased from the Company certain Notes in the principal amounts
set forth on the signature page hereto and certain Warrants to purchase shares of the Company’s Common Stock amounts set
forth on the signature page hereto; and

 

WHEREAS, subject to the
terms and conditions set forth in this Agreement and pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the
“Securities Act”), the Company desires to exchange with the Holders, and the Holders desires to exchange with the Company,
the Note for a new note in the same principal amount, but which contains certain modified terms (the “New Note”); and

 

WHEREAS, subject to the
terms and conditions set forth in this Agreement and pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the
“Securities Act”), the Company desires to exchange with the Holders, and the Holders desires to exchange with the Company,
the Warrant for a new warrant to purchase additional shares of Common Stock (the “New Warrant”).

 

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

 

1.          Terms
of the Exchange. The Company and Holder agree that each Holder will exchange the Note and the Warrant and will relinquish any
and all other rights he may have under the Note or the Warrant in exchange for the New Note, in the form attached hereto as Exhibit
A and the New Warrant in the form of Exhibit B, in amounts set forth on Schedule B (collectively, the “Securities”).
Upon any repayment or conversion of the New Note, interest at the rate of 4% per annum shall be paid on the principal amount of
the original Note, from the period April 12, 2017, through the date hereof (to be paid in the same form as amounts being paid or
issued on the New Note).

 

2.          Closing.
Upon satisfaction of the conditions set forth herein, a closing shall occur at the principal offices of the Company, or such other
location as the parties shall mutually agree. At closing, Holder shall deliver certificates representing the Note to the Company
and the Company shall deliver to the Holder a certificate evidencing the New Note.

 

3.          Further
Assurances. 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 any 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. 

 

4.          Representations
and Warranties of the Holder. Each Holder represents and warrants as of the date hereof and as of the closing to the Company
as follows:

 

     

     

    

 

a.           Authorization;
Enforcement. The Holder has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder.  The execution and
delivery of this Agreement by the Holder and the consummation by it of the transactions contemplated hereby and thereby have been
duly authorized by all necessary action on the part of the Holder and no further action is required by the Holder.  This
Agreement has been (or upon delivery will have been) duly executed by the Holder and, when delivered in accordance with the terms
hereof, will constitute the valid and binding obligation of the Holder enforceable against the Holder in accordance with its terms,
except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other
laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law.

 

c.           Information
Regarding Holder. Holder is an “accredited investor”, as such term is defined in Rule 501 of Regulation D promulgated
by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act, is experienced
in investments and business matters, has made investments of a speculative nature and has purchased securities of companies in
private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business
matters as to enable the Holder to utilize the information made available by the Company to evaluate the merits and risks of and
to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. Holder
has the authority and is duly and legally qualified to purchase and own the Securities. Holder is able to bear the risk of such
investment for an indefinite period and to afford a complete loss thereof.

 

d.           Legend.
The Holder understands that the Securities have been issued (or will be issued in the case of the shares of Common Stock issuable
upon conversion of the New Note or exercise of the New Warrant) pursuant to an exemption from registration or qualification under
the Securities Act and applicable state securities laws, and except as set forth below, the Securities shall bear any legend as
required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of such stock certificates):

 

[NEITHER THE ISSUANCE AND SALE OF
THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN][THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT 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 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED
BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD OR ELIGIBLE TO BE 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.

 

5.          Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties to the Holder:

 

    	 	2	 

     

    

 

a.           Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and each of the other agreements entered into by the parties hereto in connection with the transactions
contemplated by this Agreement (collectively, the “Exchange Documents”) and otherwise to carry out its obligations
hereunder and thereunder.  The execution and delivery of this Agreement by the Company and the consummation by it of
the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and
no further action is required by the Company, the Board of Directors of the Company or the Company’s stockholders in connection
therewith, including, without limitation, the issuance of the New Note and the New Warrant and the reservation for issuance and
issuance of shares issuable upon conversion of the New Note and exercise of the New Warrant have been duly authorized by the Company's
Board of Directors and no further filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders.  This
Agreement has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms
hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its
terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

b.           Organization
and Qualification. Each of the Company and its subsidiaries (the “Subsidiaries”) are entities duly organized and
validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power
and authorization to own their properties and to carry on their business as now being conducted and as presently proposed to be
conducted. Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good
standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect.
As used in this Agreement, “Material Adverse Effect” means any material adverse effect on (i) the business, properties,
assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or
any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Exchange Documents
or (iii) the authority or ability of the Company to perform any of its obligations under any of the Exchange Documents. Other than
its Subsidiaries, there is no Person (as defined below) in which the Company, directly or indirectly, owns capital stock or holds
an equity or similar interest. “Person” means an individual, a limited liability company, a partnership, a joint venture,
a corporation, a trust, an unincorporated organization, any other entity and any governmental entity or any department or agency
thereof.

 

c.           No
Conflict. The execution, delivery and performance of the Exchange Documents by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the New Note and New Warrant
and reservation for issuance and issuance of the shares thereunder) will not (i) result in a violation of the Certificate of Incorporation
(as defined below) or other organizational documents of the Company or any of its Subsidiaries, any capital stock of the Company
or any of its Subsidiaries or Bylaws (as defined below) of the Company or any of its Subsidiaries, (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of
its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
foreign, federal and state securities laws and regulations and the rules and regulations of the Company’s principal trading
market (the “Principal Market”) applicable to the Company or any of its Subsidiaries or by which any property or asset
of the Company or any of its Subsidiaries is bound or affected except, in the case of clause (ii) or (iii) above, to the extent
such violations that could not reasonably be expected to have a Material Adverse Effect.

 

    	 	3	 

     

    

 

d.           No
Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make
any filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person
in order for it to execute, deliver or perform any of its respective obligations under or contemplated by the Exchange Documents,
in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which
the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior
to the date of this Agreement, and neither the Company nor any of its Subsidiaries is aware of any facts or circumstances which
might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings
contemplated by the Exchange Documents. The Company is not in violation of the requirements of the Principal Market and has no
knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of the Common Stock in the foreseeable
future. The Company has obtained all necessary consents and approvals from the Principal Market, including, if required, a Listing
of Additional Shares application covering the listing of the shares with the Principal Market.

 

e.           Securities
Law Exemptions. Assuming the accuracy of the representations and warranties of the Holder contained herein, the offer and issuance
by the Company of the Securities is exempt from registration under the Securities Act. The offer and issuance of the Securities
is exempt from registration under the Securities Act pursuant to the exemption provided by Section 3(a)(9) thereof. The Company
covenants and represents to the Holder that neither the Company nor any of its Subsidiaries has received, anticipates receiving,
has any agreement to receive or has been given any promise to receive any consideration from the Holder or any other Person in
connection with the transactions contemplated by the Exchange Documents.

 

f.            Issuance
of Securities. The issuance of the New Note and New Warrant are duly authorized and upon issuance in accordance with the terms
of the Exchange Documents shall be validly issued, fully paid and non-assessable and free from all taxes, liens, charges and other
encumbrances with respect to the issue thereof. Upon issuance or conversion in accordance with the terms of the New Note or the
New Warrant, the shares of Common Stock and Series A Preferred Stock, when issued, will be validly issued, fully paid and nonassessable
and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof,
with the holders being entitled to all rights accorded to a holder of Common Stock or Series A Preferred Stock, respectively.

 

g.           Transfer
Taxes. As of the date of this Agreement, all share transfer or other taxes (other than income or similar taxes) which are required
to be paid in connection with the issuance of the New Note to be exchanged with the Holder hereunder will be, or will have been,
fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

  

6.         Additional
Acknowledgments. The Holder and the Company confirm that the Company has not received any consideration for the transactions
contemplated by this Agreement. Pursuant to Rule 144 promulgated by the Commission pursuant to the Securities Act and the rules
and regulations promulgated thereunder as such Rule 144 may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such Rule 144, the holding period of the New Note (including
the shares upon conversion of the New Note and exercise of the New Warrant) tacks back to April 12, 2017, the original issue date
of the Note and the Warrant. The Company agrees not to take a position contrary to this paragraph.

 

    	 	4	 

     

    

 

7.         Additional
Payment to Dominion. In addition to the Note and Warrant exchange, solely with respect to Dominion Capital, LLC (“Dominion”),
upon repayment of the New Note, the Company shall pay Dominion an additional payment in the amount $40,000.

 

8.         Miscellaneous.

 

a.           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns.

 

b.           Governing
Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed under the laws of the State of New
York without regard to the choice of law principles thereof. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the State of New York located in The City of New York, Borough of Manhattan for the
adjudication of any dispute hereunder or in connection herewith or therewith or with any transaction contemplated hereby or thereby,
and hereby irrevocably waives any objection that such suit, action or proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any manner permitted by law. 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 WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

c.           Severability.
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.

 

d.           Counterparts/Execution.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that
any signature is delivered by facsimile transmission or by an e-mail which contains an electronic file of an executed signature
page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such facsimile or electronic file signature page (as the case may be) were an
original thereof.

 

e.           Notices.
Any notice or communication permitted or required hereunder shall be in writing and shall be deemed sufficiently given if hand-delivered
or sent (i) postage prepaid by registered mail, return receipt requested, or (ii) by facsimile, to the respective parties as set
forth below, or to such other address as either party may notify the other in writing.

 

	If to the Company, to:	Precipio, Inc.
	 	 
	 	Attention:  

 

If to Holders,
to the address set forth on the signature page of the Holder

 

f.            Expenses.
The Company shall pay costs and expenses of counsel for the Note holders in the amount of $10,000 in connection herewith.

 

    	 	5	 

     

    

 

g.           Entire
Agreement; Amendments. This Agreement constitutes the entire agreement between the parties with regard to the subject matter
hereof and thereof, superseding all prior agreements or understandings, whether written or oral, between or among the parties.
This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be
waived, only by a written instrument signed by all parties, or, in the case of a waiver, by the party waiving compliance. Except
as expressly stated herein, no delay on the part of any party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder preclude any other
or future exercise of any other right, power or privilege hereunder.

 

h.           Headings.
The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this
Agreement. 

 

j.            Listing.
The Company shall use reasonable best efforts to promptly secure the listing or designation for quotation (as the case may be)
of all of the shares of Common Stock issuable upon conversion the New Note or exercise of the New Warrant, upon the Principal Market
or any other national securities exchange or automated quotation system, upon which the Common Stock is then listed or designated
for quotation (as the case may be) (subject to official notice of issuance) (but in no event later than the date of this Agreement)
and shall use reasonable best efforts to maintain such listing or designation for quotation (as the case may be) of all such shares
from time to time issuable under the terms of this Agreement on such national securities exchange or automated quotation system.
The Company shall maintain the Common Stock’s listing or authorization for quotation (as the case may be) on the Principal
Market, The New York Stock Exchange, the NYSE MKT, the Nasdaq Global Market, the Nasdaq Global Select Market, the OTCQB or the
OTCQX or any successor thereto (each, an “Eligible Market”). Neither the Company nor any of its Subsidiaries shall
take any action which could be reasonably expected to result in the delisting or suspension of the Common Stock on an Eligible
Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 8(j).

 

(Signature Pages Follow)

 

    	 	6	 

     

    

 

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

 

	PRECIPIO, INC.	 
	 	 	 
	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

	HOLDER:  	 
	 	 	 
	By:	 	 
	 	 	 
	Address for Notices:	 
	 	 
	 	 
	 	 
	 	 
	 	 
	Address for delivery of Securities:

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