Document:

Exhibit
10.5

 

Execution
Version

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT, dated as of January 7, 2021 (as amended, supplemented or otherwise modified from time to time in accordance with
the provisions hereof, this “Agreement”), is made by INTERPACE BIOSCIENCES, INC., a Delaware corporation (the “Grantor”),
in favor of Ampersand 2018 Limited Partnership, a Delaware limited partnership, in its capacity as collateral agent pursuant to the Notes
(as hereinafter defined), as secured party (in such capacity, the “Secured Party”).

 

WHEREAS,
on the date hereof, the Secured Party has made a loan to the Grantor in an aggregate unpaid principal amount equal to $3,000,000.00 (the
“Ampersand Loan”), evidenced by that certain Secured Promissory Note of even date herewith (as amended, supplemented
or otherwise modified from time to time, the “Ampersand Note”) made by the Grantor and payable to the order of the
Secured Party, and 1315 Capital II, L.P., a Delaware limited partnership, has made a loan to the Grantor in an aggregate unpaid principal
amount equal to $2,000,000.00 (the “1315 Loan” and together with the Ampersand Loan, the “Loans”),
evidenced by that certain Secured Promissory Note of even date herewith (as amended, supplemented or otherwise modified from time to
time, the “1315 Note” and together with the Ampersand Note, the “Notes”) made by the Grantor and
payable to the order of the Secured Party. Capitalized terms used but not otherwise defined herein shall have the meanings assigned to
such terms in the Notes;

 

WHEREAS,
this Agreement is given by the Grantor in favor of the Secured Party to secure the payment and performance of all of the Secured Obligations;
and

 

WHEREAS,
it is a condition to the obligations of the Lenders to make the Loans under the Notes that the Grantor execute and deliver this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.
Definitions.

 

(a)
Unless otherwise specified herein, all references to Sections and Schedules herein are to Sections and Schedules of this Agreement.

 

(b)
Unless otherwise defined herein, terms used herein that are defined in the UCC shall have the meanings assigned to them in the UCC. However,
if a term is defined in Article 9 of the UCC differently than in another Article of the UCC, the term has the meaning specified in Article
9.

 

(c)
For purposes of this Agreement, the following terms shall have the following meanings:

 

“Collateral”
has the meaning set forth in Section 2.

 

“Event
of Default” has the meaning set forth in the Notes.

 

“First
Priority” means, with respect to any lien and security interest purported to be created in any Collateral pursuant to this
Agreement, such lien and security interest is the most senior lien to which such Collateral is subject (subject only to liens permitted
under the Notes).

 

    	 

     

    

 

“Perfection
Certificate” has the meaning set forth in Section 4.

 

“Proceeds”
means “proceeds” as such term is defined in section 9-102 of the UCC and, in any event, shall include, without limitation,
all dividends or other income from the Collateral, collections thereon or distributions with respect thereto.

 

“Secured
Obligations” has the meaning set forth in Section 3.

 

“UCC”
means the Uniform Commercial Code as in effect from time to time in the State of Delaware or, when the laws of any other state govern
the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the Uniform Commercial Code
as in effect from time to time in such state.

 

2.
Grant
of Security Interest. The Grantor hereby pledges
and grants to the Secured Party, and hereby creates a continuing First Priority lien and security interest in favor of the Secured Party
in and to all of its right, title and interest in and to the following, wherever located, whether now existing or hereafter from time
to time arising or acquired (collectively, the “Collateral”):

 

(a)
all fixtures and personal property of every kind and nature including all accounts (excluding health-care-insurance receivables), goods
(including inventory and equipment), documents (including, if applicable, electronic documents), instruments, promissory notes, chattel
paper (whether tangible or electronic), letters of credit, letter-of-credit rights (whether or not the letter of credit is evidenced
by a writing), securities and all other investment property, general intangibles (including all payment intangibles), money, deposit
accounts, and any other contract rights or rights to the payment of money; and

 

(b)
all Proceeds and products of each of the foregoing, all books and records relating to the foregoing, all supporting obligations related
thereto, and all accessions to, substitutions and replacements for, and rents, profits and products of, each of the foregoing, and any
and all Proceeds of any insurance, indemnity, warranty or guaranty payable to the Grantor from time to time with respect to any of the
foregoing.

 

Notwithstanding
anything herein to the contrary, in no event shall the Collateral include, and Grantor shall not be deemed to have granted a security
interest in, any of Grantor’s rights or interests in or under, any license, contract, permit, Instrument, Security or franchise
or any of its rights or interests thereunder to the extent, but only to the extent, that such a grant would, under the terms of such
license, contract, permit, Instrument, Security or franchise, result in a breach of the terms of, or constitute a default under, such
license, contract, permit, Instrument, Security or franchise (other than to the extent that any such term would be rendered ineffective
pursuant to the UCC or any other applicable law (including the Bankruptcy Code) or principles of equity); provided, that immediately
upon the ineffectiveness, lapse or termination of any such provision, the Collateral shall include, and Grantor shall be deemed to have
granted a security interest in, all such rights and interests as if such provision had never been in effect.

 

    	2

     

    

 

3.
Secured
Obligations. The Collateral secures the due and
prompt payment and performance of:

 

(a)
the obligations of the Grantor from time to time arising under the Notes, this Agreement or otherwise with respect to the due and prompt
payment of (i) the principal of and premium, if any, and interest on the Loans (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), when
and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and (ii) all other monetary
obligations, including fees, costs, attorneys’ fees and disbursements, reimbursement obligations, contract causes of action, expenses
and indemnities, whether primary, secondary, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter
arising, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership
or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Grantor under or in respect of the
Notes and this Agreement; and

 

(b)
all other covenants, duties, debts, obligations and liabilities of any kind of the Grantor under or in respect of the Notes, this Agreement
or any other document made, delivered or given in connection with any of the foregoing, in each case whether evidenced by a note or other
writing, whether allowed in any bankruptcy, insolvency, receivership or other similar proceeding, whether arising from an extension of
credit, issuance of a letter of credit, acceptance, loan, guaranty, indemnification or otherwise, and whether primary, secondary, direct
or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, fixed or otherwise (all such obligations,
covenants, duties, debts, liabilities, sums and expenses set forth in Section 3 being herein collectively called the “Secured
Obligations”).

 

4.
Perfection
of Security Interest and Further Assurances.

 

(a)
The Grantor shall, from time to time, as may be required by the Secured Party with respect to all Collateral, promptly take all actions
as may be requested by the Secured Party to perfect the security interest of the Secured Party in the Collateral, including, without
limitation, with respect to all Collateral over which control may be obtained within the meaning of sections 8-106, 9-104, 9-105, 9-106
and 9-107 of the UCC, as applicable, the Grantor shall promptly take all actions as may be requested from time to time by the Secured
Party so that control of such Collateral is obtained and at all times held by the Secured Party. All of the foregoing shall be at the
sole cost and expense of the Grantor.

 

(b)
The Grantor hereby irrevocably authorizes the Secured Party at any time and from time to time to file in any relevant jurisdiction any
financing statements and amendments thereto that contain the information required by Article 9 of the UCC of each applicable jurisdiction
for the filing of any financing statement or amendment relating to the Collateral, including any financing or continuation statements
or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by the
Grantor hereunder, without the signature of the Grantor where permitted by law, including the filing of a financing statement describing
the Collateral as all assets now owned or hereafter acquired by the Grantor, or words of similar effect. The Grantor agrees to provide
all information required by the Secured Party pursuant to this Section promptly to the Secured Party upon request.

 

    	3

     

    

 

(c)
The Grantor agrees that at any time and from time to time, at the expense of the Grantor, the Grantor will promptly execute and deliver
all further instruments and documents, obtain such agreements from third parties, and take all further action, that may be necessary
or desirable, or that the Secured Party may request, in order to create and/or maintain the validity, perfection or priority of and protect
any security interest granted or purported to be granted hereby or to enable the Secured Party to exercise and enforce its rights and
remedies hereunder or under any other agreement with respect to any Collateral.

 

5.
Representations
and Warranties. The Grantor represents and warrants
as follows:

 

(a)
It has previously delivered to the Secured Party a certificate signed by the Grantor and entitled “Perfection Certificate”
(“Perfection Certificate”), and that: (i) the Grantor’s exact legal name is that indicated on the Perfection
Certificate and on the signature page hereof, (ii) the Grantor is an organization of the type, and is organized in the jurisdiction,
set forth in the Perfection Certificate, (iii) the Perfection Certificate accurately sets forth the Grantor’s place of business
(or, if more than one, its chief executive office), and its mailing address, (iv) all other information set forth on the Perfection Certificate
relating to the Grantor is accurate and complete and (v) there has been no change in any such information since the date on which the
Perfection Certificate was signed by the Grantor.

 

(b)
All information set forth on the Perfection Certificate relating to the Collateral is accurate and complete and there has been no change
in any such information since the date on which the Perfection Certificate was signed by the Grantor.

 

(c)
At the time the Collateral becomes subject to the lien and security interest created by this Agreement, the Grantor will be the sole,
direct, legal and beneficial owner thereof, free and clear of any lien, security interest, encumbrance, claim, option or right of others
except for the security interest created by this Agreement and other liens permitted by the Notes.

 

(d)
The pledge of the Collateral pursuant to this Agreement creates a valid and perfected First Priority security interest in the Collateral,
securing the payment and performance when due of the Secured Obligations.

 

(e)
It has full power, authority and legal right to borrow the Loans and pledge the Collateral pursuant to this Agreement.

 

(f)
Each of this Agreement and the Notes has been duly authorized, executed and delivered by the Grantor and constitutes a legal, valid and
binding obligation of the Grantor enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally and subject to equitable principles (regardless of whether
enforcement is sought in equity or at law).

 

    	4

     

    

 

(g)
No authorization, approval, or other action by, and no notice to or filing with, any governmental authority or regulatory body is required
for the borrowing of the Loans and the pledge by the Grantor of the Collateral pursuant to this Agreement or for the execution and delivery
of the Notes and this Agreement by the Grantor or the performance by the Grantor of its obligations thereunder.

 

(h)
The execution and delivery of the Notes and this Agreement by the Grantor and the performance by the Grantor of its obligations thereunder,
will not violate any provision of any applicable law or regulation or any order, judgment, writ, award or decree of any court, arbitrator
or governmental authority, domestic or foreign, applicable to the Grantor or any of its property, or the organizational or governing
documents of the Grantor or any agreement or instrument to which the Grantor is party or by which it or its property is bound.

 

(i)
The Grantor has taken all action required on its part for control (as defined in sections 8-106, 9-104, 9-105, 9-106 and 9-107 of the
UCC, as applicable) to have been obtained by the Secured Party over all Collateral with respect to which such control may be obtained
pursuant to the UCC. No person other than the Secured Party has control or possession of all or any part of the Collateral.

 

6.
Voting,
Distributions and Receivables.

 

(a)
The Secured Party agrees that unless an Event of Default shall have occurred and be continuing, the Grantor may, to the extent the Grantor
has such right as a holder of the Collateral consisting of securities, other equity interests or indebtedness owed by any obligor, vote
and give consents, ratifications and waivers with respect thereto, except to the extent that, in the Secured Party’s reasonable
judgment, any such vote, consent, ratification or waiver could detract from the value thereof as Collateral or which could be inconsistent
with or result in any violation of any provision of the Notes or this Agreement.

 

(b)
If any Event of Default shall have occurred and be continuing, The Secured Party may, or at the request and option of the Secured Party
the Grantor shall, notify account debtors and other persons obligated on any of the Collateral of the security interest of the Secured
Party in any account, chattel paper, general intangible, instrument or other Collateral and that payment thereof is to be made directly
to the Secured Party.

 

7.
Covenants.
The Grantor covenants as follows:

 

(a)
The Grantor will not, without providing at least 30 days’ prior written notice to the Secured Party, change its legal name, identity,
type of organization, jurisdiction of organization, corporate structure, location of its chief executive office or its principal place
of business or its organizational identification number. The Grantor will, prior to any change described in the preceding sentence, take
all actions reasonably requested by the Secured Party to maintain the perfection and priority of the Secured Party’s security interest
in the Collateral.

 

    	5

     

    

 

(b)
The Collateral, to the extent not delivered to the Secured Party pursuant to Section 4, will be kept at those locations listed on the
Perfection Certificate and the Grantor will not remove the Collateral from such locations without providing at least 30 days’ prior
written notice to the Secured Party. The Grantor will, prior to any change described in the preceding sentence, take all actions reasonably
required by the Secured Party to maintain the perfection and priority of the Secured Party’s security interest in the Collateral.

 

(c)
The Grantor shall, at its own cost and expense, defend title to the Collateral and the First Priority lien and security interest of the
Secured Party therein against the claim of any person claiming against or through the Grantor and shall maintain and preserve such perfected
First Priority security interest for so long as this Agreement shall remain in effect.

 

(d)
The Grantor will not sell, offer to sell, dispose of, convey, assign or otherwise transfer, grant any option with respect to, restrict,
or grant, create, permit or suffer to exist any mortgage, pledge, lien, security interest, option, right of first offer, encumbrance
or other restriction or limitation of any nature whatsoever on, any of the Collateral or any interest therein except as expressly provided
for in the Notes or with the prior written consent of the Secured Party.

 

(e)
The Grantor will keep the Collateral in good order and repair and will not use the same in violation of law or any policy of insurance
thereon. The Grantor will permit the Secured Party, or its designee, to inspect the Collateral at any reasonable time, wherever located.

 

(f)
The Grantor will pay promptly when due all taxes, assessments, governmental charges, and levies upon the Collateral or incurred in connection
with the use or operation of the Collateral or incurred in connection with this Agreement.

 

8.
Secured
Party Appointed Attorney-in-Fact. The Grantor hereby
appoints the Secured Party the Grantor’s attorney-in-fact, with full authority in the place and stead of the Grantor and in the
name of the Grantor or otherwise, from time to time during the continuance of an Event of Default in the Secured Party’s discretion
to take any action and to execute any instrument which the Secured Party may deem necessary or advisable to accomplish the purposes of
this Agreement (but the Secured Party shall not be obligated to and shall have no liability to the Grantor or any third party for failure
to do so or take action). This appointment, being coupled with an interest, shall be irrevocable. The Grantor hereby ratifies all that
said attorneys shall lawfully do or cause to be done by virtue hereof.

 

9.
Secured
Party May Perform. If the Grantor fails to perform
any obligation contained in this Agreement, the Secured Party may itself perform, or cause performance of, such obligation, and the expenses
of the Secured Party incurred in connection therewith shall be payable by the Grantor; provided that the Secured Party shall not be required
to perform or discharge any obligation of the Grantor.

 

10.
Reasonable
Care. The Secured Party shall have no duty with
respect to the care and preservation of the Collateral beyond the exercise of reasonable care. The Secured Party shall be deemed to have
exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment
substantially equal to that which the Secured Party accords its own property, it being understood that the Secured Party shall not have
any responsibility for (a) ascertaining or taking action with respect to any claims, the nature or sufficiency of any payment or performance
by any party under or pursuant to any agreement relating to the Collateral or other matters relative to any Collateral, whether or not
the Secured Party has or is deemed to have knowledge of such matters, or (b) taking any necessary steps to preserve rights against any
parties with respect to any Collateral. Nothing set forth in this Agreement, nor the exercise by the Secured Party of any of the rights
and remedies hereunder, shall relieve the Grantor from the performance of any obligation on the Grantor’s part to be performed
or observed in respect of any of the Collateral.

 

    	6

     

    

 

11.
Remedies
Upon Default.

 

(a)
If any Event of Default shall have occurred and be continuing, the Secured Party, without any other notice to or demand upon the Grantor,
may assert all rights and remedies of a secured party under the UCC or other applicable law, including, without limitation, the right
to take possession of, hold, collect, sell, lease, deliver, grant options to purchase or otherwise retain, liquidate or dispose of all
or any portion of the Collateral. If notice prior to disposition of the Collateral or any portion thereof is necessary under applicable
law, written notice mailed to the Grantor at its notice address as provided in Section 15 hereof ten (10) days prior to the date of such
disposition shall constitute reasonable notice, but notice given in any other reasonable manner shall be sufficient. So long as the sale
of the Collateral is made in a commercially reasonable manner, the Secured Party may sell such Collateral on such terms and to such purchaser(s)
as the Secured Party in its absolute discretion may choose, without assuming any credit risk and without any obligation to advertise
or give notice of any kind other than that necessary under applicable law. Without precluding any other methods of sale, the sale of
the Collateral or any portion thereof shall have been made in a commercially reasonable manner if conducted in conformity with reasonable
commercial practices of creditors disposing of similar property. To the extent permitted by applicable law, the Grantor waives all claims,
damages and demands it may acquire against the Secured Party arising out of the exercise by it of any rights hereunder. The Grantor hereby
waives and releases to the fullest extent permitted by law any right or equity of redemption with respect to the Collateral, whether
before or after sale hereunder, and all rights, if any, of marshalling the Collateral and any other security for the Secured Obligations
or otherwise. At any such sale, unless prohibited by applicable law, the Secured Party or any custodian may bid for and purchase all
or any part of the Collateral so sold free from any such right or equity of redemption. Neither the Secured Party nor any custodian shall
be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing, nor shall it be under any
obligation to take any action whatsoever with regard thereto. The Secured Party shall not be obligated to clean-up or otherwise prepare
the Collateral for sale.

 

(b)
If any Event of Default shall have occurred and be continuing, all rights of the Grantor to (i) exercise the voting and other consensual
rights it would otherwise be entitled to exercise pursuant to Section 6(a) and (ii) receive the dividends and other distributions which
it would otherwise be entitled to receive and retain pursuant to Section 6(b), shall immediately cease, and all such rights shall thereupon
become vested in the Secured Party, which shall have the sole right to exercise such voting and other consensual rights and receive and
hold such dividends and other distributions as Collateral.

 

    	7

     

    

 

(c)
If any Event of Default shall have occurred and be continuing, any cash held by the Secured Party as Collateral and all cash Proceeds
received by the Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral
shall be applied in whole or in part by the Secured Party to the payment of expenses incurred by the Secured Party in connection with
the foregoing or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights
of the Secured Party hereunder, including reasonable attorneys’ fees, and the balance of such proceeds shall be applied or set
off against all or any part of the Secured Obligations in such order as the Secured Party shall elect. Any surplus of such cash or cash
Proceeds held by the Secured Party and remaining after payment in full of all the Secured Obligations shall be paid over to the Grantor
or to whomsoever may be lawfully entitled to receive such surplus. The Grantor shall remain liable for any deficiency if such cash and
the cash Proceeds of any sale or other realization of the Collateral are insufficient to pay the Secured Obligations and the fees and
other charges of any attorneys employed by the Secured Party to collect such deficiency.

 

(d)
If the Secured Party shall determine to exercise its rights to sell all or any of the Collateral pursuant to this Section, the Grantor
agrees that, upon request of the Secured Party, the Grantor will, at its own expense, do or cause to be done all such acts and things
as may be necessary to make such sale of the Collateral or any part thereof valid and binding and in compliance with applicable law.

 

12.
No
Waiver and Cumulative Remedies. The Secured Party
shall not by any act (except by a written instrument pursuant to Section 14), delay, indulgence, omission or otherwise be deemed to have
waived any right or remedy hereunder or to have acquiesced in any Event of Default. All rights and remedies herein provided are cumulative
and are not exclusive of any rights or remedies provided by law.

 

13.
SECURITY INTEREST ABSOLUTE. The Grantor hereby waives demand,
notice, protest, notice of acceptance of this Agreement, notice of loans made, credit extended, Collateral received or delivered or other
action taken in reliance hereon and all other demands and notices of any description. All rights of the Secured Party and liens and security
interests hereunder, and all Secured Obligations of the Grantor hereunder, shall be absolute and unconditional irrespective of:

 

(a)
any illegality or lack of validity or enforceability of any Secured Obligation or any related agreement or instrument;

 

(b)
any change in the time, place or manner of payment of, or in any other term of, the Secured Obligations, or any rescission, waiver, amendment
or other modification of the Notes, this Agreement or any other agreement, including any increase in the Secured Obligations resulting
from any extension of additional credit or otherwise;

 

(c)
any taking, exchange, substitution, release, impairment or non-perfection of any Collateral or any other collateral, or any taking, release,
impairment, amendment, waiver or other modification of any guaranty, for all or any of the Secured Obligations;

 

(d)
any manner of sale, disposition or application of proceeds of any Collateral or any other collateral or other assets to all or part of
the Secured Obligations;

 

    	8

     

    

 

(e)
any default, failure or delay, wilful or otherwise, in the performance of the Secured Obligations;

 

(f)
any defense, set-off or counterclaim (other than a defense of payment or performance) that may at any time be available to, or be asserted
by, the Grantor against the Secured Party; or

 

(g)
any other circumstance (including, without limitation, any statute of limitations) or manner of administering the Loans or any existence
of or reliance on any representation by the Secured Party that might vary the risk of the Grantor or otherwise operate as a defense available
to, or a legal or equitable discharge of, the Grantor or any other grantor, guarantor or surety.

 

14.
Amendments.
None of the terms or provisions of this Agreement may be amended, modified, supplemented, terminated or waived, and no consent to any
departure by the Grantor therefrom shall be effective unless the same shall be in writing and signed by the Secured Party and the Grantor,
and then such amendment, modification, supplement, waiver or consent shall be effective only in the specific instance and for the specific
purpose for which made or given.

 

15.
Addresses
For Notices. All notices and other communications
provided for in this Agreement shall be in writing and shall be given in the manner and become effective as set forth in the Notes, and
addressed to the respective parties at their addresses as specified on the signature pages hereof or as to either party at such other
address as shall be designated by such party in a written notice to each other party.

 

16.
Continuing
Security Interest; Further Actions. This Agreement
shall create a continuing First Priority lien and security interest in the Collateral and shall (a) subject to Section 17, remain in
full force and effect until payment and performance in full of the Secured Obligations, (b) be binding upon the Grantor, its successors
and assigns, and (c) inure to the benefit of the Secured Party and its successors, transferees and assigns; provided that the Grantor
may not assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the Secured
Party.

 

17.
Termination;
Release. On the date on which all Secured Obligations
have been paid and performed in full, the Secured Party will, at the request and sole expense of the Grantor, (a) duly assign, transfer
and deliver to or at the direction of the Grantor (without recourse and without any representation or warranty) such of the Collateral
as may then remain in the possession of the Secured Party, together with any monies at the time held by the Secured Party hereunder,
and (b) execute and deliver to the Grantor a proper instrument or instruments acknowledging the satisfaction and termination of this
Agreement.

 

18.
GOVERNING
LAW. This Agreement and the Notes and any claim,
controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement
or the Notes (except, as to the Notes, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be
governed by, and construed in accordance with, the laws of the State of Delaware. The other provisions of Sections 12.4 (Submission to
Jurisdiction), 12.5 (Venue) and 12.6 (Waiver of Jury Trial) of the Notes are incorporated herein, mutatis mutandis, as if a part hereof.

 

19.
Counterparts.
This Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by different parties
hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute a single contract.
Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”)
format shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement and the Notes constitute the
entire contract among the parties with respect to the subject matter hereof and supersede all previous agreements and understandings,
oral or written, with respect thereto.

 

[signature
page follows]

 

    	9

     

    

 

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

 

	 	INTERPACE
    BIOSCIENCES, INC., as Grantor
	 	 
	 	By:	/S/
    Thomas W. Burnell
	 	Name:	Thomas
    W. Burnell
	 	Title:
    	President
    and CEO

 

	 	Address
    for Notices:
	 	 	Interpace
    Biosciences, Inc.

    Morris
    Corporate Center 1, Building C

    300
    Interpace Parkway

    Parsippany,
    NJ 07054

    Attention:
    Thomas W. Burnell, President and CEO

    Email: tburnell@interpace.com

 

[Signature
Page to Security Agreement]

 

    	 

     

    

 

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

 

	 	Ampersand 2018 Limited Partnership,

                                                                     as Collateral Agent and Secured Party

	 	 	 
	 	By:	AMP-18
    Management Company Limited

    Partnership,
    its General Partner

	 	 	 
	 	By:	AMP-18
    MC LLC, its General Partner
	 	 	 
	 	By:	/S/
    Herbert H. Hooper
	 	Name:	Herbert
    H. Hooper
	 	Title:	Managing
    Member

 

	 	Address
    for Notices: 
	 	 	 
	 	 	Ampersand
    2018 Limited Partnership

    c/o
    Ampersand Capital Partners

    55
    William Street, Suite 240

    Wellesley,
    MA 02481

    Attention:
    Dana L. Niles, Chief Operating Partner

    Email:
    dln@ampersandcapital.com

 

[Signature
Page to Security Agreement]Exhibit
10.1

 

EXCHANGE
AGREEMENT

 

THIS
EXCHANGE AGREEMENT (the “Agreement”) is dated as of May 6, 2021, by and between Staffing 360 Solutions, Inc., a Delaware
corporation (the “Company”), and Jackson Investment Group, LLC (“JIG”).

 

WHEREAS:

 

A.
As of the date hereof, JIG holds 6,172 shares of the Company’s Series E Convertible Preferred Stock, par value $0.00001 per share
(the “Series E Shares”), and 1,493 shares of Series E-1 Convertible Preferred Stock, par value $0.00001 per share (the “Series
E-1 Shares” and, collectively, the “Original Shares”);

 

B.
The Company and JIG desire to enter into this Agreement, pursuant to which the Company and JIG shall exchange the Series E Shares and
Series E-1 Shares for an equivalent number of newly issued shares of the Company’s Series G Convertible Preferred Stock, par value
$0.00001 per share (the “Series G Shares”) and Series G-1 Convertible Preferred Stock, par value $0.00001 per share (the
“Series G-1 Shares”; together with the Series G Shares, collectively, the “New Shares”) created pursuant to the
Certificate of Designations of Series G Convertible Preferred Stock (the “Certificate of Designation”), a copy of which is
attached hereto as Exhibit A;

 

C.
The exchange of (i) the Series E Shares for the Series G Shares and (ii) the Series E-1 Shares for the Series G-1 Shares at the Closing
are each being made in reliance upon the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended
(the “Securities Act”).

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree as follows:

 

1.
EXCHANGE.

 

(a)
Exchange. The closing (the “Closing”) of the Exchange (as defined herein) shall occur on the date hereof concurrently
with the execution of this Agreement, and pursuant to Section 3(a)(9) of the Securities Act, and at the Closing (i) JIG shall exchange
the Original Shares for the New Shares (the “Exchange”), and (ii) in consideration therefore, the Company shall issue to
JIG the New Shares, which New Shares shall be validly issued, fully paid and nonassessable and outstanding when so issued on the date
hereof. No additional consideration shall be paid by JIG to the Company, or by the Company to JIG, for the issuance of the New Shares
or the Exchange. The effectiveness of the Exchange is subject further to the execution and delivery by the Company and the Guarantors
(as defined in the NPA referenced below) to JIG of that certain Side Letter Amendment Agreement dated as of the date hereof, pursuant
to which certain provisions of that certain Second Amended and Restated Note Purchase Agreement, dated as of October 26, 2020, among
the Company and certain of its subsidiaries and JIG (as amended prior to the date hereof, the “NPA”) are being amended.

 

    	 

     

    

 

(b)
Delivery. In connection with the Exchange (a) JIG shall promptly following the Closing deliver to the Company the original stock
certificates previously issued and delivered by the Company to JIG representing the Original Shares, together with a stock power duly
endorsed to the Company, and (b) the Company shall furnish to JIG evidence that the Company has notified and instructed its stock transfer
agent to reflect on the stock transfer records of the Company JIG’s ownership of the New Shares. Upon consummation of the Exchange
and delivery by the Company to JIG of the evidence described in the immediately preceding clause above, all of JIG’s rights under
the Original Shares shall be extinguished as of the date hereof, and all of the Original Shares will be cancelled by the Company and
no longer be considered outstanding.

 

(c)
Other Documents. The Company and JIG shall execute and/or deliver such other documents and agreements as are reasonably necessary
to effectuate the Exchange, in each case, at the sole cost and expense of the Company.

 

2.
REPRESENTATIONS AND WARRANTIES

 

(a)
JIG Representations and Warranties. JIG hereby represents and warrants to the Company as follows:

 

i.
Organization; Authority. JIG is duly incorporated or formed, validly existing and in good standing under the laws of its jurisdiction
of formation, with full capacity, right, limited liability company power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement and
performance by JIG of the transactions contemplated by this Agreement have been duly authorized by all necessary limited liability company
action on the part of JIG. This Agreement has been duly executed by JIG, and when delivered by JIG in accordance with the terms hereof,
will constitute the valid and legally binding obligation of JIG, enforceable against it 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.

 

ii.
Understandings or Arrangements. JIG is acquiring the New Shares hereunder as principal for its own account and has no direct or
indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such New Shares (this representation
and warranty not limiting JIG’s right to sell the New Shares pursuant to any effective registration statement or otherwise in compliance
with applicable federal and state securities laws). JIG is acquiring the New Shares hereunder in the ordinary course of its business.

 

iii.
Reliance on Exemptions. JIG understands that the New Shares are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of the Securities Act and state securities laws, and that the Company is relying upon the truth and
accuracy of, and JIG’s compliance with, the representations, warranties, covenants, agreements, acknowledgments and understandings
of JIG contained in this Agreement in order to determine the availability of such exemptions and the eligibility of JIG to acquire the
New Shares.

 

    	 

     

    

 

iv.
Risk of Loss. JIG understands that its investment in the New Shares hereunder involves a significant degree of risk, including
a risk of total loss of JIG’s investment, and JIG has full cognizance of and understands all of the risk factors related to its
purchase of the New Shares, including, but not limited to, those risk factors included in all reports, schedules, forms, statements and
other documents filed by the Company under the Securities Act and the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof, including the exhibits
thereto and documents incorporated by reference therein. JIG understands that no representation is being made as to the future value
of the New Shares.

 

v.
Investor Status. At the time JIG was offered the New Shares hereunder, it was, and as of the date hereof it is, and on each date
on which it converts any New Shares it will be either: (i) an “accredited investor” as defined in Rule 501 of Regulation
D promulgated under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A under the Securities
Act.

 

vi.
Experience of JIG. JIG, either alone or together with its representatives, has such knowledge, sophistication and experience in
business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the New Shares,
and has so evaluated the merits and risks of such investment. JIG is able to bear the economic risk of an investment in the New Shares
and, at the present time, is able to afford a complete loss of such investment.

 

(b)
Company Representations and Warranties.

 

i.
Organization and Qualification. The Company is an entity duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use
its properties and assets and to carry on its business as currently conducted. The Company is not in violation nor default of any of
the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents (other
than in respect of any violation or default related to there being an inadequate number of shares of common stock (“Common Shares”)
of the Company available for issuance if JIG were to convert into Common Shares any or all of its Series E and/or Series E-1 Preferred
Stock). The Company is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction
in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to
be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in a (i) a material adverse
effect on the legality, validity or enforceability of this Agreement, (ii) a material adverse effect on the results of operations, assets,
business, prospects or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole, or (iii) a material
adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement
(any of (i), (ii) or (iii), a “Material Adverse Effect”) and no action, claim, suit, investigation or proceeding (including,
without limitation, an informal investigation or partial proceeding, such as a deposition), whether commenced or threatened has been
instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority
or qualification.

 

    	 

     

    

 

ii.
Authorization; Enforcement. The Company 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 and under the Certificate of Designation.
The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby and by
the Certificate of Designation 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 herewith (other than
with respect to the Reverse Stock Split (as defined in the Certificate of Designation)). This Agreement has been (or upon delivery will
have been) duly executed by the Company and, when delivered in accordance with the terms hereof, together with the Certificate of Designation,
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.

 

iii.
No Conflicts. The execution, delivery and performance by the Company of this Agreement, the issuance and sale of the New Shares
hereunder and the consummation by it of the transactions contemplated hereby and by the Certificate of Designation do not and will not:
(i) conflict with or violate any provision of the Company’s certificate or articles of incorporation, bylaws or other organizational
or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become
a default) under, result in the creation of any lien upon any of the properties or assets of the Company, or give to others any rights
of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility,
debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the Company is a party or by which
any property or asset of the Company is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject, or by
which any property or asset of the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as could
not have or reasonably be expected to result in a Material Adverse Effect.

 

iv.
Issuance of the New Shares. The New Shares to be issued hereunder are duly authorized and, when issued and paid for in accordance
with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens imposed by the Company.
The Common Shares of the Company to be received upon the exercise of any conversion of the New Shares pursuant to the Certificate of
Designation will be validly issued, fully paid and nonassessable, free and clear of all liens imposed by the Company. Upon and following
the Reverse Stock Split Date (as defined in the Certificate of Designation), the Company hereby covenants and agrees (i) to reserve and
keep available out of its authorized but unissued capital stock, for the purpose of effecting the conversion of any and all New Shares
(including any additional shares of Series G-1 Shares issued after the date hereof in accordance with the Certificate of Designation),
such number of its duly authorized Common Shares as shall from time to time be sufficient to effect the conversion of all outstanding
New Shares (including any additional shares of Series G-1 Shares issued after the date hereof in accordance with the Certificate of Designation)
and (ii) if at any time after such date the number of authorized but unissued Common Shares shall not be sufficient to effect the conversion
of all then outstanding shares of the New Shares (including any additional shares of Series G-1 Shares issued after the date hereof in
accordance with the Certificate of Designation), then the Company shall take such corporate action as may be necessary to increase its
authorized but unissued Common Shares to such number of shares as shall be sufficient for such purposes, including, without limitation,
engaging in best efforts to obtain the requisite stockholder approval of any necessary amendment to the Certificate of Incorporation,
and any failure by the Company to comply with the foregoing covenants shall constitute a Preferred Default (as such term is defined in
the Certificate of Designation). The Company further acknowledges and agrees that notwithstanding anything herein or in the Certificate
of Designation to the contrary, if the Company fails by June 30, 2021 for any reason whatsoever to increase its authorized and unissued
Common Shares to such number of Common Shares as shall be sufficient to cover the conversion of all New Shares (including any additional
shares of Series G-1 Shares issued after the date hereof in accordance with the Certificate of Designation) into Common Shares in accordance
with the Certificate of Designation as well as all of the Common Shares issuable upon exercise by JIG of the Existing Warrant (as such
term is defined in the NPA), then such failure shall constitute an immediate Preferred Default (as such term is defined in the Certificate
of Designation).

 

    	 

     

    

 

3.
MISCELLANEOUS.

 

(a)
No Commissions. Neither the Company nor JIG has paid or given, or will pay or give, to any person, any commission or other remuneration,
directly or indirectly, in connection with the transactions contemplated by this Agreement.

 

(b)
Notice. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be
in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified,
return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
via electronic mail, in each case addressed as set forth below or to such other address as such party shall have specified most recently
by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand
delivery at the address or number designated below (if delivered on a business day during normal business hours where such notice is
to be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received), (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur or (c) on the date sent
by e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next
Business Day if sent after normal business hours of the recipient. The addresses for such communications shall be: (i) if to the Company,
to: 641 Lexington Avenue, Suite 2701, New York, New York 10022, Attn: Brendan Flood, Chief Executive Officer, E-mail: brendan.flood@staffing360solutions.com,
with a copy by electronic mail only to (which shall not constitute notice): Rick Werner, 30 Rockefeller Plaza, 26th Floor, New York,
New York 10112, E-mail: rick.werner@haynesboone.com, and (ii) if to JIG, to: the addresses indicated on the signature pages hereto.

 

[The
remainder of the page is intentionally left blank]

 

    	 

     

    

 

IN
WITNESS WHEREOF, JIG and the Company have caused their respective signature pages to this Exchange Agreement to be duly executed as of
the date first written above.

 

	STAFFING
    360 SOLUTIONS, INC. 	 
	 	 	 
	By:	/s/
    Brendan Flood	 
	 	 	 
	Name:	Brendan
Flood	 
	 	 	 
	Title:	Chairman
and Chief Executive Officer	 

 

Address
for Notice to Company:

Staffing
360 Solutions

641
Lexington Avenue, Suite 2701

New
York, NY 10022

 

Email
Address for Notice: Brendan.Flood@Staffing360Solutions.com

 

Facsimile
Number for Notice: 646-507-5725

 

    	 

     

    

 

	JACKSON
    INVESTMENT GROUP, LLC: 	 
	 	 	 
	By:	/s/
Richard L. Jackson	 
	 	 	 
	Name:	Richard
L. Jackson	 
	 	 	 
	Title:	Chief
Executive Officer	 

 

Number
of Series E Shares and Series E-1 Shares exchanged:

 

Series
E Shares: 6,172

 

Series
E-1 Shares: 1,493

 

Address
for Notice to JIG: See Section 10.1 of NPA

 

    	 

     

    

 

Exhibit
A —Certificate of Designation

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