Document:

Exhibit 4.2

 

 

Execution Copy

 

NEITHER THIS SECURITY NOR THE SECURITIES AS TO WHICH THIS SECURITY
MAY BE EXERCISED HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

PRECISION THERAPEUTICS INC.

 

Warrant Shares: 397,544

Date of Issuance: September 28, 2018

 

HIS COMMON STOCK PURCHASE WARRANT (the “Warrant”)
certifies that, for value received (in connection with the funding of the purchase price of $600,000, with respect to the first
tranche of $681,818.80 under that certain convertible promissory note in the original principal amount of $852,273.25 on September
28, 2018 by the Company (as defined below) to the Holder (as defined below)) (the “Note”), Peak One Opportunity
Fund, LP, a Delaware limited partnership (including any permitted and registered assigns, the “Holder”), is
entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or
after the date of issuance hereof, to purchase from Precision Therapeutics Inc., a Delaware corporation (the “Company”),
up to 397,544 shares of Common Stock (as defined below) (the “Warrant Shares”) (whereby such number may be adjusted
from time to time pursuant to the terms and conditions of this Warrant) (with the understanding that the Holder shall only be entitled
to the prorated number of Warrant Shares based upon each tranche funded, which number is 318,035 shares upon the funding of the
first tranche) at the Exercise Price per share then in effect. This Warrant is issued by the Company as of the date hereof in connection
with that certain securities purchase agreement dated September 28, 2018, by and among the Company and the Holder (the “Purchase
Agreement”). At the time that the subsequent tranche under the Note is funded by the Holder in cash, then on such funding
date, the Warrant Shares shall immediately and automatically be increased by 79,509 to a total of 397,544 shares.

 

Capitalized terms used in this Warrant shall
have the meanings set forth in the Purchase Agreement unless otherwise defined in the body of this Warrant or in Section 14
below. For purposes of this Warrant, the term “Exercise Price” shall mean $1.155 per share, subject to adjustment
as provided herein (including but not limited to cashless exercise), and the term “Exercise Period” shall mean
the period commencing on the six month anniversary of the Issuance Date and ending on 5:00 p.m. eastern standard time on the five-year
anniversary thereof.

 

1.       EXERCISE OF WARRANT  .

 

(a)       Mechanics
of Exercise. Subject to the terms and conditions hereof, the rights represented by this Warrant may be exercised in whole or
in part at any time or times during the Exercise Period by delivery of a written notice, in the form attached hereto as Exhibit
A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. The Holder shall not
be required to deliver the original Warrant in order to effect an exercise hereunder. Partial exercises of this Warrant resulting
in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding
number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. On or before
the third Trading Day (the “Warrant Share Delivery Date”) following the date on which the Company shall have
received the Exercise Notice, and upon receipt by the Company of payment to the Company of an amount equal to the applicable Exercise
Price multiplied by the number of Warrant Shares as to which all or a portion of this Warrant is being exercised (the “Aggregate
Exercise Price” and together with the Exercise Notice, the “Exercise Delivery Documents”) in cash
or

 

     

     

    

by wire transfer of immediately available funds (or by cashless
exercise if permitted under the terms of this Warrant, in which case there shall be no Aggregate Exercise Price provided), the
Company shall (or direct its transfer agent to) issue and dispatch by overnight courier to the address as specified in the Exercise
Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number
of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents,
the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to
which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares.
If this Warrant is submitted in connection with any exercise and the number of Warrant Shares represented by this Warrant submitted
for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable
and in no event later than three Business Days after any exercise and at its own expense, issue a new Warrant (in accordance with
Section 6) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise
under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised.

 

If the Company fails to cause its transfer agent
to transmit to the Holder the respective shares of Common Stock by the respective Warrant Share Delivery Date, then the Holder
will have the right to rescind such exercise in Holder’s sole discretion, and such failure shall be deemed an event of default
under the Note.

 

If, at any time during the Exercise Period,
there is no effective registration statement of the Company covering the Holder’s immediate resale of the Warrant Shares
without any limitations, then the Holder may elect to receive Warrant Shares pursuant to a cashless exercise, in lieu of a cash
exercise, equal to the value of this Warrant determined in the manner described below (or of any portion thereof remaining unexercised)
by surrender of this Warrant and a Notice of Exercise, in which event the Company shall issue to Holder a number of Common Stock
computed using the following formula:

 

X = Y (A-B)

A

 

Where X =the number of Shares to be issued to Holder.

 

Y =the number of Warrant Shares that the Holder elects to purchase
under this Warrant (at the date of such calculation).

 

A =the Market Price (at the date of such calculation).

 

B =Exercise Price (as adjusted to the date of such calculation).

 

(b)           
No Fractional Shares. No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment
pursuant hereto. All Warrant Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes
of determining whether the exercise would result in the issuance of any fractional share. If, after aggregation, the exercise would
result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the to Holder
otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then-current fair market
value of a Warrant Share by such fraction.

 

(c)           
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have
the right to exercise any portion of this Warrant, to the extent that after giving effect to issuance of Warrant Shares upon exercise
as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other persons
acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial
Ownership Limitation, as defined below. For purposes of the foregoing sentence, the number of shares of Common Stock beneficially
owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant
with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (i) exercise of the remaining, non-exercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates
and (ii) exercise or conversion of the unexercised or non-converted portion of any other securities of the Company (including without
limitation any other Common Stock Equivalents) subject to a

 

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limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for
purposes of this paragraph (d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act,
it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with
Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.
To the extent that the limitation contained in this paragraph applies, the determination of whether this Warrant is exercisable
(in relation to other securities owned by the Holder together with any affiliates) and of which portion of this Warrant is exercisable
shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s
determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates)
and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company
shall have no obligation to verify or confirm the accuracy of such determination.

 

For purposes of this paragraph, in determining
the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected
in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent
public announcement by the Company or (C) a more recent written notice by the Company or its transfer agent setting forth the number
of shares of Common Stock outstanding. Upon the request of a Holder, the Company shall within two Trading Days confirm to the Holder
the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon exercise of this Warrant. The limitations contained in this paragraph shall apply to a successor
Holder of this Warrant.

 

2.       ADJUSTMENTS.
The Exercise Price and the number of Warrant Shares shall be adjusted from time

 

to time as follows:

 

(a)       Distribution of Assets.
If the Company shall declare or make any dividend or other

 

distribution of its assets (or rights to acquire its assets) to
holders of shares of Common Stock, by way of return of capital or otherwise (including without limitation any distribution of cash,
stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement or other
similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such
case:

 

(i)             
any Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders
of shares of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such
record date, to a price determined by multiplying such Exercise Price by a fraction (i) the numerator of which shall be the Closing
Sale Price of the shares of Common Stock on the Trading Day immediately preceding such record date minus the value of the Distribution
(as determined in good faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (ii) the denominator
of which shall be the Closing Sale Price of the shares of Common Stock on the Trading Day immediately preceding such record date;
and

 

(ii)           
the number of Warrant Shares shall be increased to a number of shares equal to the number of shares of Common Stock obtainable
immediately prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock
entitled to receive the Distribution multiplied by the reciprocal of the fraction set forth in the immediately preceding clause
(i); provided, however, that in the event that the Distribution is of shares of common stock of a company (other than the Company)
whose common stock is traded on a national securities exchange or a national automated quotation system (“ Other Shares
of Common Stock”), then the Holder may elect to receive a warrant to purchase Other Shares of Common Stock in lieu of
an increase in the number of Warrant Shares, the terms of which shall be identical to those of this Warrant, except that such warrant
shall be exercisable into the number of shares of Other Shares of Common Stock that would have been payable to the Holder pursuant
to the Distribution had the Holder exercised this Warrant immediately prior to such record date and with an aggregate exercise
price equal to the product of the amount by which the exercise price of this Warrant was

 

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decreased with respect to the Distribution pursuant to
the terms of the immediately preceding clause (i) and the number of Warrant Shares calculated in accordance with the first part
of this clause (ii).

 

3.             
FUNDAMENTAL TRANSACTIONS  . If, at any time while this Warrant is outstanding, (i) the Company effects any merger of the
Company with or into another entity and the Company is not the surviving entity (such surviving entity, the “Successor
Entity”), (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions,
(iii) any tender offer or exchange offer (whether by the Company or by another individual or entity, and approved by the Company)
is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares of Common Stock for other
securities, cash or property and the holders of at least 50% of the Common Stock accept such offer, or (iv) the Company effects
any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of Common
Stock) (in any such case, a “ Fundamental Transaction ”), then, upon any subsequent exercise of this Warrant,
the Holder shall have the right to receive the number of shares of Common Stock of the Successor Entity or of the Company and any
additional consideration (the “Alternate Consideration”) receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a holder of the number of shares of Common Stock for which
this Warrant is exercisable immediately prior to such event (disregarding any limitation on exercise contained herein solely for
the purpose of such determination). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share
of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the
Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following
such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any Successor Entity in such Fundamental
Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder’s
right to exercise such warrant into Alternate Consideration.

 

4.             
NON-CIRCUMVENTION  . The Company covenants and agrees that it will not, by amendment of its certificate of incorporation,
bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale
of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required
to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par
value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii)
shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid
and non-assessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, for so long as this Warrant is outstanding,
have authorized and reserved, free from preemptive rights, three times the number of shares of Common Stock issuable under the
Warrant, or as otherwise required under the Purchase Agreement, to provide for the exercise of the rights represented by this Warrant
(without regard to any limitations on exercise).

 

5.             
WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, this Warrant, in and of itself,
shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company. In addition, nothing contained
in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this
Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors
of the Company.

 

6.             
REISSUANCE.

 

(a)       Lost,
Stolen or Mutilated Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company will, on such terms as to
indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof),
issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

 

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(b)       Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant

 

pursuant to the terms of this Warrant, such new Warrant shall be
of like tenor with this Warrant, and shall have an issuance date, as indicated on the face of such new Warrant which is the same
as the Issuance Date.

 

7.        TRANSFER.

 

(a)           
Notice of Transfer. The Holder agrees to give written notice to the Company before transferring this Warrant or transferring
any Warrant Shares of such Holder’s intention to do so, describing briefly the manner of any proposed transfer. Promptly
upon receiving such written notice, the Company shall present copies thereof to the Company’s counsel. If the proposed transfer
may be effected without registration or qualification (under any federal or state securities laws), the Company, as promptly as
practicable, shall notify the Holder thereof, whereupon the Holder shall be entitled to transfer this Warrant or to dispose of
Warrant Shares received upon the previous exercise of this Warrant, all in accordance with the terms of the notice delivered by
the Holder to the Company; provided, however, that an appropriate legend may be endorsed on this Warrant or the certificates for
such Warrant Shares respecting restrictions upon transfer thereof necessary or advisable in the opinion of counsel and satisfactory
to the Company to prevent further transfers which would be in violation of Section 5 of the Securities Act and applicable state
securities laws; and provided further that the prospective transferee or purchaser shall execute the Assignment of Warrant attached
hereto as Exhibit B and such other documents and make such representations, warranties, and agreements as may be required
solely to comply with the exemptions relied upon by the Company for the transfer or disposition of the Warrant or Warrant Shares.

 

(b)           
If the proposed transfer or disposition of this Warrant or such Warrant Shares described in the written notice given pursuant
to this Section 7 may not be effected without registration or qualification of this Warrant or such Warrant Shares, the
Holder will limit its activities in respect to such transfer or disposition as are permitted by law.

 

(c)           
Any transferee of all or a portion of this Warrant shall succeed to the rights and benefits of the initial Holder of this Warrant
under the Purchase Agreement (registration rights, expenses, and indemnity).

 

8.       NOTICES  . Whenever notice
is required to be given under this Warrant, unless otherwise provided

 

herein, such notice shall be given in accordance with the notice
provisions contained in the Purchase Agreement. The Company shall provide the Holder with prompt written notice (i) immediately
upon any adjustment of the Exercise Price, setting forth in reasonable detail, the calculation of such adjustment and (ii) at least
20 days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution
upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any stock or other securities directly or
indirectly convertible into or exercisable or exchangeable for shares of Common Stock or other property, pro rata to the holders
of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation,
provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being
provided to the Holder.

 

9.       AMENDMENT AND WAIVER  .
The terms of this Warrant may be amended or waived (either

 

generally or in a particular instance and either retroactively or
prospectively) only with the written consent of the Company and the Holder.

 

10.       Governing Law. This Warrant
shall be governed by and interpreted in accordance with the laws

 

of the State of Nevada without regard to the principles of conflicts
of law (whether of the State of Nevada or any other jurisdiction).

 

11.       Venue; Severability; Attorney’s
Fees. Any action brought by either party against the other

 

concerning the transactions contemplated by this Warrant shall be
brought only in the state or federal courts of Miami-Dade County, Florida. The parties to this Warrant hereby irrevocably waive
any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction
or venue or based upon forum non conveniens. The costs and expenses of such action shall be paid by and be the sole responsibility
of the Company, including but not limited to the Holder’s attorneys’ fees and court fees. In the event that any provision
of this Warrant or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the

 

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extent that it may conflict therewith and shall be deemed modified
to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service
of process and consents to process being served in any suit, action or proceeding in connection with this Warrant or any other
Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any other manner permitted by law.

 

12.               
JURY TRIAL WAIVER. THE COMPANY AND THE HOLDER HEREBY WAIVE A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT
BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS WARRANT.

 

13.               
ACCEPTANCE  . Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms
and conditions contained herein.

 

14.               
CERTAIN DEFINITIONS  . For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)           
“Nasdaq” means www.Nasdaq.com.

 

(b)           
“Closing Sale Price” means, for any security as of any date, (i) the last closing trade price for such security
on the Principal Market, as reported by Nasdaq, or, if the Principal Market begins to operate on an extended hours basis and does
not designate the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported
by Nasdaq, or (ii) if the foregoing does not apply, the last trade price of such security in the over-the-counter market for such
security as reported by Nasdaq, or (iii) if no last trade price is reported for such security by Nasdaq, the average of the bid
and ask prices of any market makers for such security as reported by the OTC Markets. If the Closing Sale Price cannot be calculated
for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be
the fair market value as mutually determined by the Company and the Holder. All such determinations to be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

 

(c)           
“Common Stock” means the Company’s common stock, par value $0.01 per share, and any other class of securities
into which such securities may hereafter be reclassified or changed.

 

(d)           
“Common Stock Equivalents” means any securities of the Company that would entitle the holder thereof to acquire
at any time Common Stock, including without limitation any debt, preferred stock, rights, options, warrants or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

(e)           
“Principal Market” means the primary national securities exchange or marketplace on which the Common Stock is
then traded.

 

(f)            
“Market Price” means the highest traded price of the Common Stock during the thirty (30) Trading Days prior
to the date of the respective Exercise Notice.

 

(g)           
“Trading Day” means (i) any day on which the Common Stock is listed or quoted and traded on its Principal Market,
(ii) if the Common Stock is not then listed or quoted and traded on any national securities exchange, then a day on which trading
occurs on any over-the-counter markets, or (iii) if trading does not occur on the over-the-counter markets, any Business Day.

 

* * * * * * *

 

 

 

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IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed as of the Issuance Date set forth above.

 

	 	PRECISION THERAPEUTICS INC.
	 	 	 
	 	By: 	/s/ Bob Myers
	 	Name: 	Bob Myers
	 	Title:	Chief Financial Officer

 

 

Agreed & Accepted:

 

 

 

	 	PEAK ONE OPPORTUNITY FUND, LP
	 	By:	
         

         

        Its General Partner: PEAK ONE INVESTMENTS, LLC 

         

	 	By: 	/s/ Jason C. Goldstein
	 	Name:	Jason C. Goldstein
	 	Title: 	Managing Partner

 

 

 

 

 

 

 

 

 

 

 

 

 

    

     

    

EXHIBIT A 

 

EXERCISE NOTICE

 

(To be executed by the registered holder to exercise this Common
Stock Purchase Warrant)

 

THE UNDERSIGNED holder hereby exercises the right to purchase
____________________ of the shares of

 

Common Stock (“Warrant Shares”) of Precision Therapeutics Inc., a Delaware
corporation (the “Company”), evidenced by the attached copy of the Common Stock Purchase Warrant (the “Warrant”).
Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.       Form of Exercise Price  . The Holder
intends that payment of the Exercise Price shall be made as (check one):

 

☐ a cash exercise with respect to_________________ Warrant
Shares; or

☐ by cashless exercise pursuant to the Warrant.

 

		2.	Payment of Exercise Price  . If cash exercise is selected above, the holder shall pay the applicable Aggregate

 

Exercise Price in the sum of $_____________________ to the Company
in accordance with the terms of the Warrant.

 

		3.	Delivery of Warrant Shares  . The Company shall deliver to the holder__________________ Warrant Shares
                                                           in
 accordance with the terms of the Warrant.

 

Date:_______________________

 

(Print Name of Registered Holder)

 

By:________________________

Name: 

Title:

 

 

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EXHIBIT B 

 

ASSIGNMENT OF WARRANT

 

(To be signed only upon authorized transfer of the Warrant)

 

FOR VALUE RECEIVED , the undersigned hereby sells, assigns, and
transfers unto_____________________ the right to purchase________________ shares of common stock of Precision
Therapeutics Inc., to which the within Common Stock Purchase Warrant relates and appoints___________________, as
attorney-in-fact, to transfer said right on the books of Precision Therapeutics Inc. with full power of substitution and
re-substitution in the premises. By accepting such transfer, the transferee has agreed to be bound in all respects by the
terms and conditions of the within Warrant.

 

Date:_______________________

 

__________________________________

(Signature) *

 

__________________________________

(Name)

 

__________________________________

(Address)

 

__________________________________

(Social Security or Tax Identification No.)

 

* The signature on this Assignment of Warrant must correspond to
the name as written upon the face of the Common Stock Purchase Warrant in every particular without alteration or enlargement or
any change whatsoever. When signing on behalf of a corporation, partnership, trust or other entity, please indicate your position(s)
and title(s) with such entity.

 

 

 

 

 

 

 

9Exhibit 10.1

 

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE AGREEMENT (this
“Agreement”), dated as of September 28, 2018, (the “Execution Date”), is entered into by
and between PRECISION THERAPEUTICS INC., a Delaware corporation, (the “Company”), and L2 CAPITAL,
LLC, a Kansas limited liability company (the “Buyer”).

 

WHEREAS, the Company and the Buyer are
executing and delivering this Agreement in reliance upon an exemption from securities registration afforded by the rules and regulations
as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act
of 1933, as amended (the “Securities Act”); and

 

WHEREAS, the Buyer desires to purchase
and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement (i) an 8% senior secured
promissory note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount of up to US$2,013,635.75
(together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance
with the terms thereof, the “Note”), convertible into shares (the “Conversion Shares”) of
common stock, par value $0.01 share, of the Company (the “Common Stock”), subject to the terms of the Note
including the “Exchange Cap” limitations set forth in Section 3.20 of the Note (the “Exchange Cap”),
(ii) a warrant to acquire up to that amount of shares (the “Warrant Shares”) of Common Stock set forth on the
Schedule of Buyers attached hereto at an exercise price as set forth in that certain Common Stock Purchase Warrant, in
the form attached hereto as Exhibit B (the “Warrant”), upon the terms and subject to the limitations
and conditions set forth in the Warrant and (iii) that amount of shares of Common Stock set forth on the Schedule of Buyers attached
hereto to be issued as an inducement to the Buyer to enter into this Agreement (the “Inducement Shares”).

 

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

 

1.       DEFINED TERMS. As used in
this Agreement, the following terms shall have

 

the following meanings specified or indicated (such meanings to
be equally applicable to both the singular and plural forms of the terms defined):

 

“Common Stock Equivalents”
means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible
into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Damages” shall mean any
loss, claim, damage, liability, cost and expense (including, without limitation, reasonable attorneys’ fees and disbursements
and costs and expenses of expert witnesses and investigation).

 

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

 

“Hazardous Material” means
and includes any hazardous, toxic or dangerous waste, substance or material, the generation, handling, storage, disposal, treatment
or emission of which is subject to any Environmental Law.

 

“Helomics” means Helomics Holding Corporation, a Delaware
corporation.

 

    	1

     

    

“Issuance Shares” means,
collectively, the Inducement Shares, the Conversion Shares and the Warrant Shares.

 

“Knowledge” including the
phrase “to the Company’s Knowledge” shall mean the actual knowledge after reasonable investigation of
the Company’s officers and directors.

 

“Lien” means a lien, charge,
pledge, security interest, encumbrance, right of first refusal, preemptive right or any other restriction.

 

“Material Adverse Effect”
shall mean any effect on the business, operations, properties, or financial condition of the Company and/or the Subsidiaries that
is material and adverse to the Company and/or the Subsidiaries and/or any condition, circumstance, or situation that prohibits
or otherwise materially interfere with the ability of the Company and/or the Subsidiaries to enter into and/or perform its obligations
under any Transaction Document.

 

“Person” shall mean an individual,
a corporation, a partnership, an association, a trust or other entity or organization, including a government or political subdivision
or an agency or instrumentality thereof.

 

“Registration Rights Agreement”
means that certain registration rights agreement in the form attached hereto as Exhibit C.

 

“Schedule of Buyers” means that certain schedule of buyers
attached hereto.

 

“Securities” means, collectively,
the Note, the Warrant, the Inducement Shares, the Conversion Shares and the Warrant Shares.

 

“Security Agreements” means
those certain security agreements in the form attached hereto as Exhibit D.

 

“Subsidiary” or “Subsidiaries”
means any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the
voting stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K
promulgated under the Securities Act.

 

“Transaction Documents”
shall mean this Agreement, the Note, the Warrant, the Registration Rights Agreement, the Transfer Agent Instruction Letter, the
Security Agreements and all schedules and exhibits hereto and thereto.

 

“Transfer Agent” shall mean
Corporate Stock Transfer, Inc., the current transfer agent of the Company, and any successor transfer agent of the Company.

 

“Transfer Agent Instruction Letter”
means the letter from the Company to the Transfer Agent which instructs the Transfer Agent to issue the Issuance Shares pursuant
to the Transaction Documents, in the form of Exhibit E attached hereto.

 

2.       PURCHASE AND SALE OF SECURITIES.

 

(a)       Purchase
of Securities. On the First Closing Date (as defined below), the Company shall sell and issue to the Buyer and the Buyer shall
purchase and fund such principal amount of Note as is set forth on the Schedule of Buyers attached hereto under “First
Tranche”, subject to the express terms of the Note (the “First Tranche”). On the First Closing Date,
the Company shall issue to Buyer as a commitment fee, the Warrant, subject to the terms therein. On the First Closing Date, the
Company shall also issue the Inducement Shares to Buyer as a commitment fee. On the Second Closing Date (as defined below), the
Company shall sell and issue to the Buyer and the Buyer shall purchase and fund such principal amount of Note as is set forth
on the Schedule of Buyers attached hereto under “Second Tranche”, subject to the express terms of the Note
(the “Second Tranche”). On the Second Closing Date, the Company shall issue to Buyer as a commitment fee, additional
Warrant Shares, subject to the terms of the Warrant. One Note shall be issued to the Buyer which will evidence the aggregate amounts
funded by the Buyer for the First Tranche and the Second Tranche. One Warrant certificate shall be issued to the Buyer which will
evidence the aggregate amounts Warrant Shares issued to the Buyer for the First Tranche and the Second Tranche.

 

    	2

     

    

(b)              
Closing Dates. Subject to the satisfaction (or written waiver) of the conditions set forth in Section 7 and
Section 8 below, the date and time of the issuance and sale of the Securities constituting the First Tranche pursuant to
this Agreement (the “First Closing Date”) shall be 5:00 P.M., Eastern Standard Time on or about September 28,
2018, or such other mutually agreed upon time. Subject to the satisfaction (or written waiver) of the conditions set forth in
Section 7 and Section 8 below, the date and time of the issuance and sale of the Securities constituting the Second
Tranche pursuant to this Agreement (the “Second Closing Date”, and with the First Closing Date, the “Closing
Dates” and each, a “Closing Date”) shall be within five (5) business days after the Merger Certification
Date (as defined in Section 8), or such other mutually agreed upon time. Each closing of the transactions contemplated
by this Agreement (each, a “Closing”) shall occur on the Closing Dates at such location as may be agreed to
by the parties.

 

(c)               
Form of Payment. On the First Closing Date, the Buyer shall pay the purchase price of $1,400,000 (the “First
Purchase Price”) for the First Tranche of $1,615,908.70 (which includes the OID (as defined in the Note) and $25,000.00
for the Buyer’s transactional expenses) under the Note, by wire transfer of immediately available funds, in accordance with
the Company’s written wiring instructions against delivery of the Note, pursuant to the terms of the Note. In the event
that the Buyer funds the Second Tranche under the Note, as contemplated by subsections (a) and (b) above, the Buyer shall pay
the purchase price of $350,000 (the “Second Purchase Price”, and with the First Purchase Price, each a “Purchase
Price”)) for the Second Tranche of $397,727.05 (which includes the OID (as defined in the Note) under the Note, by wire
transfer of immediately available funds, in accordance with the Company’s written wiring instructions against delivery of
the Note, pursuant to the terms of the Note.

 

3.       REPRESENTATIONS
AND WARRANTIES OF THE BUYER. The Buyer represents and warrants to the Company that:

 

(a)               
Investment Purpose. As of the Execution Date, the Buyer is purchasing the Securities for its own account for investment
only and not with a view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from
registration under the Securities Act; provided, however, that by making the representations herein, the Buyer does
not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities
at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act.

 

(b)              
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon
specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and
the eligibility of the Buyer to acquire the Securities.

 

    	3

     

    

(c)               
Information. The Buyer and its advisors, if any, have been furnished with all materials relating to the business,
finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested
by the Buyer or its advisors. The Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company.
Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose
such information unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer.
Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives
shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section
4 below. The Buyer understands that its investment in the Securities involves a significant degree of risk, including the
risk of loss of the Buyer’s entire investment. The Buyer is not aware of any facts that may constitute a breach of any of
the Company's representations and warranties made herein.

 

(d)              
Governmental Review. The Buyer understands that no United States federal or state agency or any other government
or governmental agency has passed upon or made any recommendation or endorsement of the Securities or the fairness or suitability
of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(e)               
Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not
being registered under the Securities Act or any applicable state securities laws, and the Securities may not be transferred unless
(a) the Securities are sold pursuant to an effective registration statement under the Securities Act, (b) the Buyer shall have
delivered to the Company, at the cost of the Company, an opinion of counsel that shall be in form, substance and scope customary
for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or
transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company (c) the Securities
are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the Securities Act (or a successor
rule) (“Rule 144”)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance
with this Section 3(e) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the
Securities are sold pursuant to Regulation S under the Securities Act (or a successor rule) (“Regulation S”),
and the Buyer shall have delivered to the Company, at the cost of the Company, an opinion of counsel that shall be in form, substance
and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any
sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said rule and further, if
said rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom
the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with
some other exemption under the Securities Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company
nor any other person is under any obligation to register such Securities under the Securities Act or any state securities laws
or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything
else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin
account or other lending arrangement.

 

(f)               
Legends. The Buyer understands that the Note and Warrant and, until such time as the Issuance Shares have been registered
under the Securities Act or may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities
as of a particular date that can then be immediately sold, the Issuance Shares may bear a restrictive legend in substantially
the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

    	4

     

    

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

  

The legend set forth above shall be removed
and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped, if, unless
otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective registration
statement filed under the Securities Act or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction
as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides the Company
with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the
effect that a public sale or transfer of such Security may be made without registration under the Securities Act, which opinion
shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including
those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery
requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer in accordance
with the preceding sentence with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule
144 or Regulation S, at the Deadline (as defined in the Note), it will be considered an Event of Default under the Note.

 

(g)               
Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed
and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in
accordance with its terms.

 

(h)              
Accredited Investor Status. The Buyer is (i) an “accredited investor” as that term is defined in Rule
501 of the General Rules and Regulations under the Securities Act by reason of Rule 501(a)(3) (an “Accredited Investor”),
(ii) experienced in making investments of the kind described in this Agreement and the related documents, (iii) able, by reason
of the business and financial experience of its officers (if an entity) and professional advisors (who are not affiliated with
or compensated in any way by the Company or any of its affiliates or selling agents), to protect its own interests in connection
with the transactions described in this Agreement, and the related documents, and (iv) able to afford the entire loss of its investment
in the Securities.

 

(i)                
Residency. The Buyer is a limited liability company organized under the laws of the State of Kansas.

 

4.       REPRESENTATIONS AND WARRANTIES OF
THE COMPANY. The Company represents and warrants to the Buyer that:

 

    	5

     

    

(a)               
Organization and Qualification. The Company is a corporation duly incorporated, validly existing and in good standing
under the laws of the State of Delaware, with the requisite corporate power and authority to own and use its properties and assets
and to carry on its business as currently conducted. Each of the Subsidiaries 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
corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted. Each
of the Company and the Subsidiaries is not in violation or default of any of the provisions of its respective certificate or articles
of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries 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 Material Adverse Effect and no
proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail
such power and authority or qualification.

 

(b)              
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and perform
its obligations under this Agreement and the other Transaction Documents. The execution and delivery of this Agreement and the
other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have
been duly authorized by all necessary corporate action and no further consent or authorization of the Company or its Board of
Directors or stockholders is required, except to the extent that stockholder approval would be required to remove the Exchange
Cap (as defined in the Note). Each of this Agreement and the other Transaction Documents has been duly executed and delivered
by the Company and constitutes a valid and binding obligation of the Company enforceable against the Company in accordance with
its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, or similar laws relating to, or
affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

 

(c)               
Capitalization. As of the Execution Date, the authorized capital stock of the Company is as set forth in the SEC
Documents (as defined below). Except as set forth on Schedule 4(c), the Company has not issued any capital stock since
its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options
under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s
employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the
date of the most recently filed periodic report under the Exchange Act. Except as disclosed in the SEC Documents, no shares are
reserved for issuance pursuant to the Company’s stock option plans, no shares are reserved for issuance pursuant to the
terms of any Common Stock Equivalents (other than the Note and the Warrant) exercisable for, or convertible into or exchangeable
for shares of Common Stock and sufficient shares are reserved for issuance upon conversion of the Note and the exercise of the
Warrant (as required by the Note, Warrant and Transfer Agent Instruction Letter). All of such outstanding shares of capital stock
are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable. No shares of capital stock of the
Company are subject to preemptive rights or any other similar rights of the shareholders of the Company or any liens or encumbrances
imposed through the actions or failure to act of the Company. Except as disclosed in the SEC Documents, as of the Execution Date,
(i) there are no outstanding options, warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements,
understandings, claims or other commitments or rights of any character whatsoever relating to, or securities or rights convertible
into or exchangeable for any shares of capital stock of the Company or any of its Subsidiaries, or arrangements by which the Company
or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries,
(ii) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale
of any of its or their securities under the Securities Act and (iii) there are no anti-dilution or price adjustment provisions
contained in any security issued by the Company (or in any agreement providing rights to security holders) that will be triggered
by the issuance of the Securities. The Company has filed in its SEC Documents true and correct copies of the Company’s Certificate
of Incorporation as in effect on the Execution Date (“Certificate of Incorporation”), the Company’s By-laws,
as in effect on the Execution Date (the “By-laws”), and the terms of all securities convertible into or exercisable
for Common Stock of the Company and the material rights of the holders thereof in respect thereto. The Company shall provide the
Buyer a certification of this representation signed by the Company’s Chief Executive Officer on behalf of the Company as
of each Closing Date.

 

    	6

     

    

(d)              
Issuance of Shares. The Inducement Shares are duly authorized and on the Execution Date will be validly issued,
fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue thereof with
the holders being entitled to all rights accorded to a holder of Common Stock. The Conversion Shares and Warrant Shares are duly
authorized and fully reserved for issuance and, upon conversion of the Note and the exercise of the Warrant in accordance with
their respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances
with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. The Issuance
Shares shall not be subject to preemptive rights or other similar rights of shareholders of the Company (except to the extent
already waived) and will not impose personal liability upon the holder thereof, other than restrictions on transfer provided for
in the Transaction Documents and under the Securities Act.

 

(e)               
Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common
Stock upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation
to issue Conversion Shares upon conversion of the Note in accordance with this Agreement, and the Note, subject to the Exchange
Cap, is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of
other shareholders of the Company.

 

(f)               
No Conflicts. The execution, delivery and performance of this Agreement and the other Transaction Documents by the
Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation,
the issuance and reservation for issuance of the Issuance Shares) will not (a) result in a violation of the Company’s or
any Subsidiary’s certificate or articles of incorporation, by-laws or other organizational or charter documents, (b) conflict
with, or constitute a material default (or an event that with notice or lapse of time or both would become a material default)
under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others
any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, instrument or any “lock-up”
or similar provision of any underwriting or similar agreement to which the Company or any Subsidiary is a party, or (c) result
in a violation of any federal, state or local law, rule, regulation, order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or any Subsidiary or by which any property or asset of the Company or any Subsidiary
is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations
as would not, individually or in the aggregate, have a Material Adverse Effect), nor is the Company otherwise in violation of,
conflict with or in default under any of the foregoing (except for such conflicts, defaults or violations with respect to clauses
(b) and (c) as would not, individually or in the aggregate, have a Material Adverse Effect). The business of the Company is not
being conducted in violation of any law, ordinance or regulation of any governmental entity, except for possible violations that
either singly or in the aggregate do not and will not have a Material Adverse Effect. The Company is not required under federal,
state or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with,
any court or governmental agency in order for it to issue the Issuance Shares or to execute, deliver or perform any of its obligations
under this Agreement or the other Transaction Documents (other than any SEC, FINRA or state securities filings that may be required
to be made by the Company subsequent to Closing or any registration statement that may be filed pursuant hereto or any filing
required by Nasdaq to the extent that the total number of Issuance Shares issued to the Buyer exceeds the Exchange Cap); provided
that, for purposes of the representation made in this sentence, the Company is assuming and relying upon the accuracy of the relevant
representations and agreements of the Buyer herein. The Company is not in violation of the listing requirements of the Nasdaq
Capital Market (“Nasdaq”), and does not reasonably anticipate that the Common Stock will be delisted by Nasdaq
in the foreseeable future. Except as set forth on Schedule 4(f), the Company and its Subsidiaries are unaware of any facts
or circumstances which might give rise to any of the foregoing; provided that the Company can provide no assurance that the trading
price of the Company’s common stock will not be below $1.00 during the foreseeable future.

 

    	7

     

    

(g)               
SEC Documents; Financial Statements. Except as set forth on Schedule 4(g), the Company has filed all reports,
schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, for the one (1) year preceding the Execution Date (or such shorter
period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits
thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Documents”)
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Documents prior to the expiration
of any such extension. As of their respective dates, the SEC Documents complied in all material respects with the requirements
of the Securities Act and the Exchange Act, as applicable, and other federal laws, rules and regulations applicable to such SEC
Documents, and none of the SEC Documents when filed contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The financial statements of the Company included in the SEC Documents (the “Financial
Statements”) comply as to form and substance in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC or other applicable rules and regulations with respect thereto. Such Financial Statements
have been prepared in accordance with generally accepted accounting principles applied on a consistent basis during the periods
involved (except (a) as may be otherwise indicated in such Financial Statements or the notes thereto or (b) in the case of unaudited
interim statements, to the extent they may not include footnotes or may be condensed or summary statements) and fairly present
in all material respects the financial position of the Company as of the dates thereof and the results of operations and cash
flows for the periods then ended (subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments).
The Company maintains a system of internal accounting controls appropriate for its size. There is no transaction, arrangement,
or other relationship between the Company and an unconsolidated or other off balance sheet entity that is not disclosed by the
Company in its Financial Statements or otherwise that would be reasonably likely to have a Material Adverse Effect. Except with
respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms
that neither it nor any other Person acting on its behalf has provided the Buyer or its agents or counsel with any information
that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that the
Buyer will rely on the foregoing representation in effecting transactions in securities of the Company.

 

(h)              
Absence of Certain Changes. No event has occurred that would have a Material Adverse Effect on the Company or any
Subsidiary that has not been disclosed in subsequent SEC filings. Without limiting the generality of the foregoing, except as
disclosed in the SEC Documents, neither the Company nor any of its Subsidiaries has:

 

(1)              
declared, set aside or paid any dividend or other distribution with respect to any shares of capital stock of the Company
or any of its Subsidiaries or any direct or indirect redemption, purchase or other acquisition of any such shares;

 

    	8

     

    

(2)              
sold, assigned, pledged, encumbered, transferred or otherwise disposed of any tangible asset of the Company or any of its
Subsidiaries (other than sales or the licensing of its products to customers in the ordinary course of business consistent with
past practice), or sold, assigned, pledged, encumbered, transferred or otherwise disposed of any Intellectual Property (as defined
below), other than licensing of products of the Company or its Subsidiaries in the ordinary course of business and on a non-exclusive
basis;

 

(3)              
entered into any licensing or other agreement with regard to the acquisition or disposition of any Intellectual Property
other than licenses in the ordinary course of business consistent with past practice or any amendment or consent with respect
to any licensing agreement filed or required to be filed with respect to any governmental authority;

 

(4)              
made capital expenditures, individually or in the aggregate, in excess of $100,000;

 

(5)              
incurred any obligation or liability (whether absolute, accrued, contingent or otherwise, and whether due or to become
due) on the Company’s behalf or any of its Subsidiaries, in excess of $100,000 individually, other than obligations under
customer contracts, current obligations and liabilities, in each case incurred in the ordinary course of business and consistent
with past practice;

 

(6)              
had any Lien on any property of the Company or any of its Subsidiaries except as disclosed in the SEC Documents or described
on Schedule 4(h)(6);

 

(7)              
made any payment, discharge, satisfaction or settlement of any suit, action, claim, arbitration, proceeding or obligation
of the Company or any of its Subsidiaries, except in the ordinary course of business and consistent with past practice;

 

(8)              
affected any split, combination or reclassification of any equity securities;

 

(9)              
sustained any material loss, destruction or damage to any property of the Company or any Subsidiary, whether or not insured;

 

(10)          
affected any acceleration or prepayment of any indebtedness for borrowed money or the refunding of any such indebtedness;

 

(11)          
experienced any labor trouble involving the Company or any Subsidiary or any material change in their personnel or the
terms and conditions of employment;

 

(12)          
made any waiver of any valuable right, whether by contract or otherwise;

 

(13)          
made any loan or extension of credit to any officer or employee of the Company;

 

(14)          
made any change in the independent public accountants of the Company or its Subsidiaries or any material change in the
accounting methods or accounting practices followed by the Company or its Subsidiaries, as applicable, or any material change
in depreciation or amortization policies or rates;

 

(15)          
experienced any resignation or termination of any officer, key employee or group of employees of the Company or any of
its Subsidiaries;

 

    	9

     

    

(16)          
affected any change in any compensation arrangement or agreement with any employee, officer, director or stockholder that
would result in the aggregate compensation to such Person in such year to exceed $100,000, except as disclosed on Schedule
4(h)(16);

 

(17)          
affected any material increase in the compensation of employees of the Company or its Subsidiaries (including any increase
pursuant to any written bonus, pension, profit sharing or other benefit or compensation plan, policy or arrangement or commitment),
or any increase in any such compensation or bonus payable to any officer, stockholder, director, consultant or agent of the Company
or any of its Subsidiaries having an annual salary or remuneration in excess of $100,000, except as disclosed on Schedule 4(h)(17);

 

(18)          
made any revaluation of any of their respective assets, including, without limitation, writing down the value of capitalized
inventory or writing off notes or accounts receivable or any sale of assets other than in the ordinary course of business;

 

(19)          
made any acquisition or disposition of any material assets (or any contract or arrangement therefor), or any other material
transaction by the Company or any Subsidiary otherwise than for fair value in the ordinary course of business;

 

(20)          
written-down the value of any asset of the Company or its Subsidiaries or written-off as uncollectible of any accounts
or notes receivable or any portion thereof except in the ordinary course of business and in a magnitude consistent with historical
practice;

 

(21)          
cancelled any debts or claims or any material amendment, termination or waiver of any rights of the Company or its Subsidiaries;
or

 

(22)          
entered into any agreement, whether in writing or otherwise, to take any of the actions specified in the foregoing items
(1) through (21), except as disclosed on Schedule 4(h)(22).

 

(i)       Absence
of Litigation. Except as disclosed in the SEC Documents or as set forth on Schedule 4(i), there are no actions, suits,
investigations, inquiries or proceedings pending or, to the Knowledge of the Company, threatened against or affecting the Company,
any Subsidiary or any of their respective properties, nor has the Company received any written or oral notice of any such action,
suit, proceeding, inquiry or investigation, which would have a Material Adverse Effect or would require disclosure under the Securities
Act or the Exchange Act. No judgment, order, writ, injunction or decree or award has been issued by or, to the Knowledge of the
Company, requested of any court, arbitrator or governmental agency which would have a Material Adverse Effect. Except as disclosed
in the SEC Documents or as set forth on Schedule 4(i) there has not been, and to the Knowledge of the Company, there is
not pending or contemplated, any investigation by the SEC involving the Company, any Subsidiary or any current or former director
or officer of the Company or any Subsidiary.

 

(j)                
Patents, Copyrights, etc. The Company and the Subsidiaries own or possess adequate rights or licenses
to use all material trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights,
copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their
respective businesses as now conducted (“Intellectual Property”). None of the Company’s, nor any Subsidiary’s
Intellectual Property rights have expired or terminated, or, by the terms and conditions thereof, could expire or terminate within
two years from the Execution Date, except expirations or terminations which could not be reasonably expected to have a Material
Adverse Effect. The Company does not have any Knowledge of any infringement by the Company and/or any Subsidiary of any material
trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service
mark registrations, trade secret or other similar rights of others, or of any such development of similar or identical trade secrets
or technical information by others, and there is no claim, action or proceeding being made or brought against, or to the Company’s
Knowledge, being threatened against, the Company and/or any Subsidiary regarding trademark, trade name, patents, patent rights,
invention, copyright, license, service names, service marks, service mark registrations, trade secret or other infringement, which
could reasonably be expected to have a Material Adverse Effect.

 

    	10

     

    

(k)              
Tax Status. The Company and each of its Subsidiaries has made or filed all federal and material state and foreign
income and all other material tax returns, reports and declarations required by any jurisdiction to which it is subject (unless
and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate
for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that
are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested
in good faith and has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent
to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. The
Company has not executed a waiver with respect to the statute of limitations relating to the assessment or collection of any foreign,
federal, state or local tax. None of the Company’s tax returns is presently being audited by any taxing authority.

 

(l)                
Certain Transactions. Except as set forth in the SEC Documents, none of the officers or directors of the Company
or any Subsidiary, and to the Knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a
party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the Knowledge
of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director,
trustee or partner, in each case in excess of the lesser of (i) $120,000 or (ii) one percent of the average of the Company’s
total assets at year end for the last two completed fiscal years, other than for (i) payment of salary or consulting fees for
services rendered, (ii) reimbursement for expenses incurred on behalf of the Company or any Subsidiary and (iii) other employee
benefits, including stock option agreements under any stock option plan of the Company.

 

(m)            
Disclosure. All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement
and provided to the Buyer pursuant in connection with the transactions contemplated hereby is true and correct in all material
respects and the Company has not omitted to state any material fact necessary in order to make the statements made herein or therein,
in light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or exists with
respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions,
which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been
so publicly announced or disclosed (assuming for this purpose that the Company’s reports filed under the Exchange Act are
being incorporated into an effective registration statement filed by the Company under the Securities Act).

 

(n)              
Acknowledgment Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that the Buyer
is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions
contemplated hereby and thereby and that the Buyer is neither (i) an officer or director of the Company or any of its Subsidiaries,
nor (ii) an “affiliate” (as defined in Rule 144) of the Company or any of its Subsidiaries. The Company further acknowledges
that the Buyer is not acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar
capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given
by a Buyer or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated
hereby and thereby is merely incidental to the Buyer’s purchase of the Securities. The Company further represents to the
Buyer that the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation
by the Company and its representatives.

 

    	11

     

    

(o)              
No Integrated Offering. Neither the Company, nor any person acting on its or their behalf, has directly or indirectly
made any offers or sales in any security or solicited any offers to buy any security under circumstances that would require registration
under the Securities Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer will not
be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any shareholder
approval provisions applicable to the Company or its securities.

 

(p)              
No Brokers. Dawson James Securities (“Dawson”) is entitled to a commission payable by the Company
in connection with the transactions contemplated by this transaction; otherwise, the Company has taken no action which would give
rise to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this Agreement or
the transactions contemplated hereby.

 

(q)              
Permits; Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and
operate its properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”),
and there is no action pending or, to the Knowledge of the Company, threatened regarding suspension or cancellation of any of
the Company Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of
the Company Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received any notification
with respect to possible conflicts, defaults or violations of applicable laws, except for notices relating to possible conflicts,
defaults or violations, which conflicts, defaults or violations would not have a Material Adverse Effect.

 

(r)                
Environmental Matters. The Company is in compliance with all applicable Environmental Laws in all respects except
where the failure to comply does not have and could not reasonably be expected to have a Material Adverse Effect. For purposes
of the foregoing: “Environmental Laws” means, collectively, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended, the Superfund Amendments and Reauthorization Act of 1986, the Resource Conservation and
Recovery Act, the Toxic Substances Control Act, as amended, the Clean Air Act, as amended, the Clean Water Act, as amended, any
other “Superfund” or “Superlien” law or any other applicable federal, state or local statute, law, ordinance,
code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, the
environment or any Hazardous Material.

 

(s)               
Title to Property. Except as disclosed in the SEC Documents, the Company and each Subsidiary has good and marketable
title in fee simple to all real property owned by it and good and marketable title in all personal property owned by it that is
material to the business of the Company and each Subsidiary, in each case free and clear of all Liens and, except for Liens as
do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made
of such property by the Company or any Subsidiary and Liens for the payment of federal, state or other taxes, the payment of which
is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company or any Subsidiary
is held under valid, subsisting and enforceable leases with which the Company is in compliance with such exceptions as are not
material and do not interfere with the use made and proposed to be made of such property and buildings by the Company or any Subsidiary.

 

    	12

     

    

(t)                
Internal Accounting Controls. Except as disclosed in the SEC Documents the Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient, in the judgment of the Company’s board of directors, to provide
reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s
general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Company is in compliance with all provisions of
the Sarbanes-Oxley Act of 2002, as amended, which are applicable to it.

 

(u)              
Foreign Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee
or other person acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the
Company, used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political
activity; made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate
funds; violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any
bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or
employee.

 

(v)              
Solvency. The Company (after giving effect to the transactions contemplated by this Agreement) is solvent (i.e.,
its assets have a fair market value in excess of the amount required to pay its probable liabilities on its existing debts as
they become absolute and matured) and currently the Company has no information that would lead it to reasonably conclude that
the Company would not, after giving effect to the transaction contemplated by this Agreement, have the ability to, nor does it
intend to take any action that would impair its ability to, pay its debts from time to time incurred in connection therewith as
such debts mature. Except as disclosed in the SEC Documents or on Schedule 4(v), the Company did not receive a qualified
opinion from its auditors with respect to its most recent fiscal year end and, after giving effect to the transactions contemplated
by this Agreement, does not anticipate or know of any basis upon which its auditors might issue a qualified opinion in respect
of its current fiscal year. For the avoidance of doubt any qualification of the auditors’ opinion relating to the Company’s
ability to continue as a “going concern” shall not, by itself, be a violation of this Section 4(v).

 

(w)             
Insurance. The Company and each Subsidiary is insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and each Subsidiary is engaged. Neither the Company, nor any Subsidiary has been refused any insurance coverage
sought or applied for, and the Company has no reason to believe that it or any Subsidiary will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business at a cost that would not materially and adversely affect the condition, financial or otherwise, or the earnings,
business or operations of the Company, taken as a whole.

 

(x)              
Breach of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties
set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it
will be considered an Event of Default under the Note.

 

    	13

     

    

(y)              
No General Solicitation; Placement Agent. Neither the Company, nor any of its Subsidiaries or affiliates, nor any
Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning
of Regulation D) in connection with the offer or sale of the Securities. Neither the Company nor any of its Subsidiaries has engaged
any placement agent or other agent other than Dawson in connection with the sale of the Securities. In the event that a broker-dealer
or other agent or advisory is engaged by the Company subsequent to the initial Closing, the Company shall be responsible for the
payment of any placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for persons engaged
by any Buyer or its investment advisor) relating to or arising out of the transactions contemplated hereby in connection with
the sale of the Securities. The Company shall pay, and hold the Buyer harmless against, any liability, loss or expense (including,
without limitation, attorney’s fees and out-of-pocket expenses) arising in connection with any such claim.

 

(z)               
No Undisclosed Events, Liabilities, Developments or Circumstances. Except as set forth in the SEC Documents or on
Schedule 3(z) hereto, the Company and its Subsidiaries have no liabilities or obligations of any nature (whether accrued,
absolute, contingent, unasserted or otherwise and whether due or to become due) other than those liabilities or obligations that
are disclosed in the Financial Statements or which do not exceed, individually in excess of $50,000 and in the aggregate in excess
of $200,000. The reserves, if any, established by the Company or the lack of reserves, if applicable, are reasonable based upon
facts and circumstances known by the Company on the Execution Date and there are no loss contingencies that are required to be
accrued by the Statement of Financial Accounting Standard No. 5 of the Financial Accounting Standards Board which are not provided
for in the Financial Statements.

 

(aa)Management. During the past
five year period, no current or former officer or director or, to the Knowledge of the Company, stockholder of the Company or
any of its Subsidiaries has been the subject of any matter that would require disclosure under Paragraph (f) of Rule 401 of Regulation
S-K that has not been publicly disclosed.

 

(bb)Assets; Title. Except as disclosed
on Schedule 4(bb), each of the Company and its Subsidiaries has good and valid title to, or a valid leasehold interest
in, as applicable, all of its properties and assets, free and clear of all Liens except (i) any Lien for taxes not yet due or
delinquent or being contested in good faith by appropriate proceedings for which adequate reserves have been established in accordance
with GAAP, (ii) any statutory Lien arising in the ordinary course of business by operation of law with respect to a liability
that is not yet due or delinquent, (iii) any Lien created by operation of law, such as materialmen’s liens, mechanics’
liens and other similar liens, arising in the ordinary course of business with respect to a liability that is not yet due or delinquent
or that are being contested in good faith by appropriate proceedings, and (iv) such as have been disposed of in the ordinary course
of business. To the Company’s Knowledge, all tangible personal property owned by the Company and its Subsidiaries has been
maintained in good operating condition and repair, except (x) for ordinary wear and tear, and (y) where such failure would not
have a Material Adverse Effect. To the Company’s Knowledge, all assets leased by the Company or any of its Subsidiaries
are in the condition required by the terms of the lease applicable thereto during the term of such lease and upon the expiration
thereof. To the Company’s Knowledge, the Company and its Subsidiaries have good and marketable title in fee simple to all
real property and good and marketable title to all personal property owned by them which is material to the business of the Company
and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects. Any real property and facilities held
under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such
exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by
the Company and its Subsidiaries.

 

    	14

     

    

(cc)Subsidiary Rights. Except as
set forth on Schedule 4(cc) the Company or one of its Subsidiaries has the unrestricted right to vote, and to receive dividends
and distributions on, all equity securities of its Subsidiaries as owned by the Company or such Subsidiary.

 

(dd) Investment Company Status. The
Company is not, and upon consummation of the sale of the Securities will not be, an “investment company,” a company
controlled by an “investment company” or an “affiliated person” of, or “promoter” or “principal
underwriter” for, an “investment company” as such terms are defined in the Investment Company Act of 1940, as
amended.

 

(ee)Illegal or Unauthorized Payments;
Political Contributions. Neither the Company or any of its Subsidiaries nor, to the Knowledge of the Company, any of the officers,
directors, employees, agents or other representatives of the Company or any of its Subsidiaries or any other business entity or
enterprise with which the Company or any Subsidiary is or has been affiliated or associated, has, directly or indirectly, made
or authorized any payment, contribution or gift of money, property, or services, whether or not in contravention of applicable
law, (a) as a kickback or bribe to any Person or (b) to any political organization, or the holder of or any aspirant to any elective
or appointive public office except for personal political contributions not involving the direct or indirect use of funds of the
Company or any of its Subsidiaries.

 

(ff)Transfer Taxes. On the Closing
Date, all stock transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with
the sale and transfer of the Securities to be sold to the Buyer 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.

 

(gg) Books and Records. To the Company’s
Knowledge, the books of account, ledgers, order books, records and documents of the Company and its Subsidiaries accurately and
completely reflect all information relating to the respective businesses of the Company and its Subsidiaries, the nature, acquisition,
maintenance, location and collection of each of their respective assets, and the nature of all transactions giving rise to material
obligations or accounts receivable of the Company or its Subsidiaries, as the case may be, except where the failure to so reflect
such information would not have a Material Adverse Effect. To the Company’s Knowledge, the minute books of the Company and
its Subsidiaries contain accurate records in all material respects of all meetings and accurately reflect all other actions taken
by the stockholders, boards of directors and all committees of the boards of directors, and other governing Persons of the Company
and its Subsidiaries, respectively.

 

(hh) Money Laundering. The Company
and its Subsidiaries are in compliance with, and have not previously violated, the USA PATRIOT ACT of 2001 and all other applicable
U.S. and non-U.S. anti-money laundering laws and regulations, including, but not limited to, the laws, regulations and Executive
Orders and sanctions programs administered by the U.S. Office of Foreign Assets Control, including, but not limited, to (i) Executive
Order 13224 of September 23, 2001 entitled, “Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten
to Commit, or Support Terrorism” (66 Fed. Reg. 49079 (2001)); and (ii) any regulations contained in 31 CFR, Subtitle B,
Chapter V.

 

(ii)       [Intentionally Omitted.]

 

(jj)Shell Company Status. The Company
is not currently an issuer identified in Rule 144(i)(1)(i) under the Securities Act, and, if it was at any time previously been
such an issuer, then the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, has filed
all reports and other materials required to be filed by Section 13 or 15(d) of the Exchange Act, as applicable during the preceding
12 months, and, as of a date at least one year prior to the Execution Date, has filed current “Form 10 information”
with the SEC (as defined in Rule 144(i)(3) of the Securities Act) reflecting its status as an entity that is no longer an issuer
described in Rule 144(i)(1)(i) of the Securities Act.

 

    	15

     

    

(kk)No Disqualification Events.
With respect to Securities to be offered and sold hereunder in reliance on Rule 506 under the Securities Act (“Regulation
D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer,
other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule
405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered
Person” and, together, “Issuer Covered Persons”) is subject to any of the “bad actor”
disqualifying events described in Rule 506(d)(1)(i)-(viii) under the Securities Act (each, a “Disqualification Event”),
except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine
whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable,
with its disclosure obligations under Rule 506(e), and has furnished to the Buyers a copy of any disclosures provided thereunder.

 

(ll)Other Covered Persons. The Company
is not aware of any Person (other than any Issuer Covered Person) that has been or will be paid (directly or indirectly) remuneration
for solicitation of buyers or potential purchasers in connection with the sale of any Regulation D Securities.

 

(mm) Absence of Schedules. In the event
that at First Closing Date, the Company does not deliver and attached hereto any disclosure schedule contemplated by this Agreement,
the Company hereby acknowledges and agrees that (i) each such undelivered disclosure schedule shall be deemed to read as follows:
“Nothing to Disclose”, and (ii) the Buyer has not otherwise waived delivery of such disclosure schedule.

 

5.       COVENANTS.

 

(a)       Best
Efforts. The parties shall use their commercially reasonable best efforts to satisfy timely each of the conditions described
in Section 6 and 7 of this Agreement.

 

(b)              
Use of Proceeds. The Company shall use the proceeds from the sale of the Note for working capital and other general
corporate purposes and shall not, directly or indirectly, use such proceeds for any loan to or investment in any other corporation,
partnership, enterprise or other person (except in connection with its currently existing direct or indirect Subsidiaries), except
that the Company may use such proceeds to make loans and advances to Helomics.

 

(c)               
Financial Information. The Company agrees to send or make available the following reports to the Buyer until the
Buyer transfers, assigns, or sells all of the Securities: (i) within ten (10) days after the filing with the SEC, a copy of its
Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K; (ii) within one (1) day after
release, copies of all press releases issued by the Company or any of its Subsidiaries; and (iii) contemporaneously with the making
available or giving to the shareholders of the Company, copies of any notices or other information the Company makes available
or gives to such shareholders. For the avoidance of doubt, filing the documents required in (i) above via EDGAR or releasing any
documents set forth in (ii) above via a recognized wire service shall satisfy the delivery requirements of this Section 5(c).

 

(d)              
Listing. The Company shall work in good faith to secure the listing of the Issuance Shares upon each national securities
exchange or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice
of issuance) and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock
shall be so listed, such listing of all Conversion Shares and Warrant Shares from time to time issuable upon conversion of the
Note and exercise of the Warrant. The Company will obtain and, so long as the Buyer owns any of the Securities, maintain the listing
and trading of its Common Stock on Nasdaq, any equivalent replacement exchange, the New York Stock Exchange (“NYSE”),
the NYSE American or the OTCQB or OTCQX market places of the OTC Markets and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”)
and such exchanges, as applicable.

 

    	16

     

    

(e)               
Corporate Existence. So long as the Buyer beneficially owns the Note, the Company shall maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or
sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i)
assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith
and (ii) is a publicly traded corporation whose Common Stock is listed for trading on Nasdaq, NYSE, or NYSE American.

 

(f)               
No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under
circumstances that would require registration of the Securities being offered or sold hereunder under the Securities Act or cause
the offering of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder
approval provision applicable to the Company or its securities.

 

(g)               
Failure to Comply with the Exchange Act. So long as the Buyer beneficially owns the Note and/or the Warrant, the
Company shall comply with the reporting requirements of the Exchange Act; and the Company shall continue to be subject to the
reporting requirements of the Exchange Act.

 

(h)              
Breach of Covenants. If the Company materially breaches any of the covenants set forth in this Section 5,
then in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default
under the Note.

 

(i)                
Reservation of Shares. The Company covenants that while the Note and Warrant remain outstanding, the Company will
reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for
the issuance of the Conversion Shares and Warrant Shares, as follows: (i) until the Merger Certification Date, the Company must
authorize and reserve 1.5 times (150%) of the number of shares that would be issuable upon full, unconditioned, conversion of
the Note and the Warrant, and (ii) on and after the Merger Certification Date, the Company must authorize and reserve 2 times
(200%) of the number of shares that would be issuable upon full, unconditioned, conversion of the Note and the Warrant; which
such reserved amounts under foregoing items (i) and (ii) shall be increased by the Company from time to time in accordance with
its obligations under such Securities.

 

(j)                
Indemnification. Each party hereto (an “Indemnifying Party”) agrees to indemnify and hold harmless
the other party along with its officers, directors, employees, and authorized agents, and each Person or entity, if any, who controls
such party within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act or the rules and regulations
thereunder (an “Indemnified Party”) from and against any Damages, joint or several, and any action in respect
thereof to which the Indemnified Party becomes subject to, resulting from, arising out of or relating to any misrepresentation,
breach of warranty or nonfulfillment of or failure to perform any covenant or agreement on the part of the Indemnifying Party
contained in this Agreement.

 

    	17

     

    

(k)              
Repayment upon Offering. In the event that the Company completes any offering or sale of securities (i) after the
Execution Date, and (ii) after aggregate proceeds to the Company from any and all post-Execution Date offerings has exceeded $2,000,000,
50% of the further proceeds from each such offering shall first be applied to the repayment of the Note until the same shall have
been paid and satisfied in full.

 

(l)                
Variable Rate Transactions. The Company covenants and agrees that it will not, without the prior written consent
of the Buyer, enter into any equity line of credit agreement with any other party or enter into any transaction resulting in,
or with, any Variable Security Holders, excluding the Buyer, without the Buyer’s prior written consent, which consent may
be granted or withheld in the Buyer’s sole and absolute discretion unless the process of such transaction are used first
and primarily to repay the Note in full; provided that such arrangements evidenced by written agreements that exist as of the
Execution Date shall not be subject to the provisions of this Section 5(l). “Variable Security Holder”
means any holder of any securities of the Company that are not subject to a conversion/exercise price having a floor price that
is within 50% of the Company’s then current market price, and (A) have or may have conversion rights of any kind, contingent,
conditional or otherwise, in which the number of shares that may be issued pursuant to such conversion right varies with the market
price of the Common Stock, and/or (B) are or may become convertible into Common Stock (including without limitation convertible
debt, warrants or convertible preferred stock), with a conversion price that varies with the market price of the Common Stock,
even if such security only becomes convertible following an event of default, the passage of time, or another trigger event or
condition.

 

(m)            
Buyer’s Trading Activity. Neither the Buyer nor its affiliates has an open short position (or other hedging
or similar transactions) in the common stock of the Company and the Buyer agree that it shall not, and that it will cause its
affiliates not to, engage in any short sales of or hedging transactions with respect to the common stock of the Company while
the Securities are outstanding.

 

6.       TRANSFER
AGENT INSTRUCTIONS. Prior to registration of the Issuance Shares under the Securities Act or the date on which the Issuance
Shares may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of a particular date that can
then be immediately sold, all such certificates shall bear the restrictive legend specified in Section 3(f) of this Agreement.
The Company warrants that: (i) no stop transfer instructions will be given by the Company to its Transfer Agent and that the Securities
shall otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement
and the Note and Warrant; (ii) it will not direct its Transfer Agent not to transfer or delay, impair, and/or hinder its Transfer
Agent in transferring (or issuing) (electronically or in certificated form) any certificate for Conversion Shares or Warrant Shares
to be issued to the Buyer upon conversion or exercise of or otherwise pursuant to the Note or Warrant as and when required by
the Note, Warrant and this Agreement; and (iii) it will not fail to remove (or direct its Transfer Agent not to remove or impairs,
delays, and/or hinders its Transfer Agent from removing) any restrictive legend (or to withdraw any stop transfer instructions
in respect thereof) on any certificate for any Issuance Shares as contemplated by the terms of this Agreement, the Note and the
Warrant. Nothing in this Section shall affect in any way the Buyer’s obligations and agreement to comply with all applicable
prospectus delivery requirements, if any, upon re-sale of the Securities. If the Buyer provides the Company (which shall be at
the cost of the Company), with (i) an opinion of counsel in form, substance and scope customary for opinions in comparable transactions,
to the effect that a public sale or transfer of such Securities may be made without registration under the Securities Act and
such sale or transfer is effected or (ii) the Buyer provides reasonable assurances that the Securities can be sold pursuant to
Rule 144, the Company shall permit the transfer, and, in the case of the Issuance Shares, promptly instruct its Transfer Agent
to issue one or more certificates, free from restrictive legend, in such name and in such denominations as specified by the Buyer.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating
the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Section may be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Section, that the Buyer shall be entitled, in addition to all other available remedies,
to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing economic loss and without
any bond or other security being required.

 

    	18

     

    

7.       CONDITIONS
PRECEDENT TO THE COMPANY’S OBLIGATIONS TO SELL. The obligation of the Company hereunder to issue and sell the Note,
Warrant and Inducement Shares to the Buyer at the Closings is subject to the satisfaction, at or before the applicable Closing
Date of each of the following conditions thereto, provided that these conditions are for the Company’s sole benefit and
may be waived by the Company at any time in its sole discretion:

 

(a)               
The Buyer shall have executed this Agreement and delivered the same to the Company.

 

(b)              
The Buyer shall have delivered the applicable Purchase Price in accordance with Section 2(c) above.

 

(c)               
The representations and warranties of the Buyer shall be true and correct in all material respects as of the date when
made and as of the applicable Closing Date as though made at that time (except for representations and warranties that speak as
of a specific date), and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the subject
Closing Date.

 

(d)              
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization
having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

8.       CONDITIONS
PRECEDENT TO THE BUYER’S OBLIGATION TO PURCHASE. The obligation of the Buyer hereunder to purchase and fund each of
the First Tranche and Second Tranche of the Note at the Closings is subject to the satisfaction, at or before the applicable Closing
Date of each of the following conditions, provided that these conditions are for the Buyer’s sole benefit and may be waived
by the Buyer at any time in its sole discretion:

 

(a)               
The Company shall have executed this Agreement and delivered the same to the Buyer on the First Closing Date.

 

(b)              
The Company shall have delivered to the Buyer the duly executed Note in accordance with Section 2(a) above on the
First Closing Date.

 

(c)               
The Company shall have delivered to the Buyer the duly executed Warrant in accordance with Section 2(a) above on
the First Closing Date.

 

(d)              
The Company shall have delivered to the Buyer the Inducement Shares on the First Closing Date.

 

(e)               
The Company shall have delivered to the Buyer the duly executed Registration Rights Agreement on the First Closing Date.

 

    	19

     

    

(f)               
The Company shall have delivered to the Buyer the duly executed Transfer Agent Instruction Letter on the First Closing
Date.

 

(g)               
Each of the Company and Helomics shall have delivered duly executed copies of the Security Agreement to the Buyer on the
First Closing Date.

 

(h)              
The Company shall have delivered a copy of its Directors’ resolutions relating to the transactions contemplated hereby,
the form of which is attached hereto as Exhibit E, on the First Closing Date.

 

(i)                
With respect only to the Second Closing, the Company shall have made a public announcement regarding, and delivered a written
certification to the Buyer in form and substance satisfactory to the Buyer, confirming that the Company has received all required
approvals (including without limitation, board and stockholder approvals, and that certain “Parent Stockholder Consent”
as defined in the Agreement and Plan of Merger dated June 28, 2018 between the Company and Helomics) to complete its contemplated
merger with Helomics. The date of delivery of such certification is referred to in this agreement as the “Merger Certification
Date.”

 

(j)                
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization
having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated
by this Agreement, as of each Closing Date.

 

(k)              
No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including
but not limited to a change in the Exchange Act reporting status of the Company or the failure of the Company to be timely in
its Exchange Act reporting obligations, as of each Closing Date.

 

(l)                
The Issuance Shares shall have been authorized for trading and quotation on Nasdaq and trading in the Common Stock on Nasdaq
shall not have been suspended by the SEC or Nasdaq, as of each Closing Date.

 

(m)            
The representations and warranties of the Company shall be true and correct in all material respects as of the date when
made and as of each Closing Date as though made at such time (except for representations and warranties that speak as of a specific
date, which shall be true and correct in all material respects as of such specific date) and the Company shall have performed,
satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be
performed, satisfied or complied with by the Company at or prior to each Closing Date. The Buyer shall have received a certificate
or certificates, executed by the chief executive officer of the Company, dated as of each Closing Date, to the foregoing effect
and as to such other matters as may be reasonably requested by the Buyer, in the form set forth as Exhibit F.

 

9.       GOVERNING LAW; MISCELLANEOUS.

 

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

 

    	20

     

    

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

 

(c)               
JURY TRIAL WAIVER. THE COMPANY AND THE BUYER HEREBY WAIVE A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THE TRANSACTION
DOCUMENTS.

 

(d)              
Counterparts; Signatures by Electronic Mail. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which 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. This Agreement, once executed by a party, may be
delivered to the other party hereto by electronic mail transmission of a copy of this Agreement bearing the signature of the party
so delivering this Agreement.

 

(e)               
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect
the interpretation of, this Agreement.

 

(f)               
Severability. In the event that any provision of this Agreement or of any of the Transaction Documents is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which
may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

 

(g)               
Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest
of the Buyer.

 

(h)              
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid,
or (d) transmitted by hand delivery, telegram, or e-mail as a PDF, addressed as set forth below or to such other address as such
party shall have specified most recently by written notice given in accordance herewith. Any notice or other communication required
or permitted to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by e-mail at the address designated
below (if delivered on a business day during normal business hours where such notice is to be received), or the first business
day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be
received) or (ii) on the second business day following the date of mailing by express courier service or on the fifth business
day after deposited in the mail, in each case, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur.

 

    	21

     

    

If to the Company, to:

 

PRECISION THERAPEUTICS INC. 

2915 Commers Drive, Suite 900 

Eagan, Minnesota 55121 

Attention: Bob Myers, CFO 

E-mail: bmyers@skylinemedical.com>

Phone: 651.389.4800

 

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

 

Maslon LLP 

3300 Wells Fargo Center, 90 S. Seventh Street 

Minneapolis, MN 55402 

E-mail: martin.rosenbaum@maslon.com 

Attention: Martin Rosenbaum

Phone: 612-672-8326

 

If to the Buyer, to:

 

L2 CAPITAL, LLC 

208 Ponce de Leon Ave., Suite 1600 

San Juan, PR 00918 

Email: investments@ltwocapital.com 

Attention: Adam Long, Managing Partner 

Phone: 816.960.0100

 

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

 

K&L Gates LLP 

200 S. Biscayne Blvd., Suite 3900

Miami, FL 33131 

E-mail: john.owens@klgates.com

Attention: John D. Owens, III, Esq.

Phone: 305.539.3328

 

Either party hereto may from time to time change
its address or e-mail for notices under this Section 9(h) by giving at least ten (10) days’ prior written notice
of such changed address to the other party hereto.

 

(i)                
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the
prior written consent of the other. Notwithstanding the foregoing, subject to Section 3(e), the Buyer may assign its rights
hereunder to any person that purchases Securities in a private transaction from the Buyer or to any of its “affiliates,”
as that term is defined under the Exchange Act, without the consent of the Company.

 

    	22

     

    

(j)                
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

(k)              
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the Closing hereunder. The Company agrees to indemnify and hold harmless the Buyer and all their officers, directors,
employees and agents for loss or damage arising as a result of or related to any breach by the Company of any of its representations,
warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement
of expenses as they are incurred.

 

(l)                
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 the other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

 

(m)       No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

(n)       Remedies.

 

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

 

(ii)              
In addition to any other remedy provided herein or in any document executed in connection herewith, the Company shall pay
the Buyer for all costs, fees and expenses in connection with any arbitration, litigation, contest, dispute, suit or any other
action to enforce any rights of the Buyer against the Company in connection herewith, including, but not limited to, costs and
expenses and attorneys’ fees, and costs and time charges of counsel to the Buyer. In furtherance of the foregoing, the Company
shall pay an amount equal to $25,000 to the Buyer immediately upon the Buyer’s filing of any arbitration, litigation, contest,
dispute, suit or any other action to enforce any rights of the Buyer against the Company in connection herewith, which such amount
shall be used to pay the Buyer’s attorneys’ fees, cost and expenses. Additional amounts shall be paid by the Company
to the Buyer immediately upon the Company’s receipt of invoices from the Buyer’s attorney evidencing the charges and
fees assessed in connection with any such arbitration, litigation, contest, dispute, suit or any other action to enforce any rights
of the Buyer and, upon receiving such invoices which indicate outstanding fees in excess of $25,000 at any time, the Company shall
promptly pay an additional $25,000 to the Buyer to be used in satisfaction of additional attorneys’ fees, and costs and
time charges of counsel to the Buyer. Further, the Company agrees to save and hold the Buyer harmless from and against any and
all liabilities with respect to or resulting from any delay in paying or omission to pay such costs and expenses. In the event
that the Company is the prevailing party in any such action, Buyer shall refund all such amounts.

 

    	23

     

    

(o)       Publicity.
The Company, and the Buyer shall have the right to review a reasonable period of time before issuance of any press releases, SEC,
Nasdaq (or other applicable trading market), or FINRA filings, or any other public statements with respect to the transactions
contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of the Buyer,
to make any press release or SEC, Nasdaq (or other applicable trading market) or FINRA filings with respect to such transactions
as is required by applicable law and regulations (although the Buyer shall be consulted by the Company in connection with any
such press release prior to its release and shall be provided with a copy thereof).

 

** signature page follows **

 

IN WITNESS WHEREOF, the Buyer and the
Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of the Execution
Date.

 

 

 

    	24

     

    

IN WITNESS WHEREOF, the Buyer and the
Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of the Execution
Date.

 

COMPANY:

 

PRECISION THERAPEUTICS, INC.

 

By: /s/ Bob Myers

Name: Bob Myers

Title: CFO

 

BUYER:

 

L2 CAPITAL, LLC

 

By: /s/ Adam Long 

Name: Adam Long 

Title: Managing Partner

 

 

 

 

 

 

 

 

 

    	25

     

    

SCHEDULE OF BUYERS

 

FIRST TRANCHE

 

	(1)	(2)	(3)	(4)	(5)	(6)	(7)
	Buyer	Address
    and E-mail	Aggregate
    Note Face Value	Aggregate 

    Number of 

    Warrants	Inducement
    

    Shares	Purchase
    

    Price	Legal
    Representative’s 

    Address and E-mail
	 	 	 	 	 	 	 
	L2
    Capital, LLC	208 Ponce de Leon Ave. 

        Ste. 1600 

        San Juan, PR 00918 

        Attn: Adam Long, Managing Partner 

        E-mail: investments@ltwocapital.com

         
	$1,615,908.70	753,741	455,000	$1,400,000	K&L Gates, LLP 

        200 S. Biscayne Blvd. 

        Ste. 3900 

        Miami, FL 33131 

        Attn:John D. Owens III, Esq.

        E-mail: john.owens@klgates.com

         

 

 

SECOND TRANCHE

 

	(1)	(2)	(3)	(4)	(5)	(6)	(7)
	Buyer	Address
    and E-mail	Aggregate
    Note Face Value	Aggregate 

    Number of 

    Warrants	Inducement
    

    Shares	Purchase
    

    Price	Legal
    Representative’s 

    Address and E-mail
	 	 	 	 	 	 	 
	L2
    Capital, LLC	208 Ponce de Leon Ave. 

        Ste. 1600 

        San Juan, PR 00918 

        Attn: Adam Long, Managing Partner 

        E-mail: investments@ltwocapital.com

         
	$397,727.05	As set forth 

    in the 

    Warrant	0	$350,000	K&L Gates, LLP 

        200 S. Biscayne Blvd. 

        Ste. 3900 

        Miami, FL 33131 

        Attn:John D. Owens III, Esq. E-mail: john.owens@klgates.com

         

 

 

    	26

     

    

SCHEDULES

 

	Exhibit A	 	Form of Convertible Promissory Note 
	Exhibit B	 	Form of Warrant 
	Exhibit C	 	Form of Registration Rights Agreement 
	Exhibit D	 	Form of Security Agreement 
	Exhibit E	 	Form of Transfer Agent Instruction Letter 
	Exhibit F	 	Form of Board Consent 
	Exhibit G	 	Form of Officer’s Certificate

 

 

 

 

 

 

 

 

 

 

 

 

 

27

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