Document:

INTELLECTUAL PROPERTY PURCHASE AND SERVICES AGREEMENT

THIS INTELLECTUAL PROPERTY PURCHASE AND SERVICES AGREEMENT (this "Agreement") is entered into to be effective as of the 1st day of August, 2018, by and among PREDICTIVE TECHNOLOGY GROUP, INC. ("Buyer") and the sellers identified in Exhibit A hereto (individually and collectively, the "Seller").

 

RECITALS

 

Seller is the owner the Intellectual Property (defined below).

 

Buyer and Seller have reached an understanding pursuant to which Buyer will acquire the Intellectual Property and compensate the Seller for assistance with filling a patent application for the Intellectual Property on the terms and conditions described herein.

 

IN CONSIDERATION OF the mutual covenants and agreements herein contained, and for such other good and valuable consideration, the receipt and adequacy of which is hereby admitted and acknowledged, the Parties hereto agree as follows:

1.0 DEFINITIONS.

 

1.1 "Agreement" shall have the meaning set forth in the first paragraph of this Agreement.

 

1.2 "Buyer" shall have the meaning set forth in the first paragraph of this Agreement.

 

1.3 "Closing" shall have the meaning set forth in Section 2.1 hereof.

 

1.4 "Closing Date" shall have the meaning set forth in Section 2.1 hereof.

 

1.5 "Knowledge" shall mean, in reference to a Party's knowledge or words of similar import, facts and matters which are actually known by such Party or its employees and representatives or facts or matters which reasonably should have been known by such Party or its employees or representatives in the ordinary course of business.

 

1.6 "Liens" shall mean any and all liens, mortgages, claims, options, conditional sales agreements, rights of refusal, security interests, pledges, deeds of trust or other charges or encumbrances, restrictions, legal or equitable claims or rights of any Person pursuant to the laws of the United States, any state, municipality or territory thereof.

 

1.7 "Material Adverse Change" shall mean any event, change or effect that is adverse to the condition (financial or otherwise), of the Intellectual Property; provided, however, that Material Adverse Change shall not include any event, change or effect, directly or indirectly, arising out of or attributable to: (a) general economic or political conditions, (b) conditions generally affecting the industries applicable to the Intellectual Property, (c) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof, (d) any action required or permitted by this Agreement or any action taken (or omitted to be taken) with the written consent of or at the written request of Buyer, (e) any matter of which Buyer is aware on the Effective Date, (t) any changes in applicable laws or accounting rules, (g) any natural or man-made disasters or acts of God, or (g) any failure by the Intellectual Property to meet any internal or published projections, forecasts or revenue or earnings projection.

 

1.8 "Parties" means Buyer and Seller. "Party" means one of the foregoing.

 

1.9 "Intellectual Property" has the meaning set forth in Exhibit B hereto.

 

1.10 "Person" means an individual, corporation, general partnership, limited partnership, limited liability company, joint venture, association, finn, joint stock company, trust, unincorporated association, or other business organization or entity, or any governmental agency or instrumentality.

1

 

1.11 "Purchase Price" shall have the meaning set forth in Section 3.2 hereof.

 

1.12 "Seller" shall have the meaning set forth in the first paragraph of this Agreement.

 

1.13 "Shares" shall have the meaning set forth in Section 3.2 hereof.

 

1.14 "Taxes" shall mean all income, gross receipts, goods and services, sales, retail sales, use, ad valorem, franchise, withholding, employment, payroll, excise, property, and other taxes, fees, assessments or charges of any kind whatever, together with any interest, penalties and other additions with respect thereto, imposed by any law of the United States, any state, municipality or territory thereof.

 

1.15 "Warrants" shall have the meaning set forth in Section 3.2 hereof.

 

2.0 CLOSING.

 

2.1 Closing. On the terms pursuant to this Agreement, the conveyance of the Intellectual Property by Seller to Buyer (the "Closing") shall take place at the offices of Buyer at 10:00 am on August 22, 2018 or such earlier date as shall select (the "Closing Date"), or as soon as reasonably practicable thereafter, upon the satisfaction of all conditions to Closing.

 

3.0 PURCHASE AND SALE OF INTELLECTUAL PROPERTY AND COMPENSATION FOR SERVICES.

 

3.1 Intellectual Property. At Closing, subject to the terms and conditions set forth in this Agreement, Seller will sell to Buyer, and Buyer will purchase from Seller, all of the Intellectual Property, free and clear of any and all Liens. Upon filling of patent application,inventors Kenneth Ward and Rakesh Chettier shall execute an assignment of the Intellectual Property in substantially the form set forth in Exhibit C hereto.

3.2 Purchase Price. The purchase price for the Intellectual Property and compensation for services performed in connection with this Agreement is warrants to purchase 16,500,000 (the "Warrants") shares of Buyer's common stock (the "Shares") at an exercise price equal to the closing price of Buyer's common stock on the date of Closing (the "Purchase Price"). Buyer shall issue the warrants to the Seller in the amounts and at the times set forth on Exhibit A hereto. The form of warrant is attached as Exhibit E, which warrant will have an exercise price equal to the closing price of Buyer's common stock on the date of Closing.

 

3.3 No Assumption of Liabilities. Notwithstanding anything to the contrary contained herein, Buyer shall not assume, and Seller shall remain liable for, any and all liabilities, obligations, claims and commitments of or against Seller arising before the Closing Date, whether the same are known or unknown, existing, contingent upon future events or circumstances, accrued, funded, unfunded or otherwise.

 

4.0 ADDITIONAL OBLIGATIONS

 

4.1 Further Cooperation. At the reasonable request of Buyer, Seller will execute and deliver such other instruments and do and perform such other acts and things as may be necessary for effecting completely the consummation of the transactions contemplated hereby.

 

4.2 Payment of Fees. Seller shall pay all maintenance fees, annuities, and the like due or payable on the Intellectual Property on or after the Effective Date until the Closing Date.

 

4.3 Data Protection and Privacy. With respect to all items listed on or delivered in connection with Exhibit B, Buyer will protect all data and maintain the privacy of all information and samples in compliance with all applicable laws, regulations, and those contractual obligations agreed by the Seller prior to the Closing Date.

 

2

4.4 Lock-Up. Seller, each individually, agree that, without the prior written consent of Buyer, for a period beginning on the date hereof and ending on the one year anniversary of the effective date of this Agreement, Seller will not, directly or indirectly, (1) offer for sale, sell, or otherwise transfer or dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the transfer or disposition by any person at any time in the future of Shares of Buyer's common stock received in connection with this agreement, (2) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of Shares of Buyer's common stock received in connection with this agreement, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Buyer's common stock or other securities, in cash or otherwise, or

(3) publicly disclose the intention to do any of the foregoing for a period commencing on the date hereof and ending on the one year anniversary of the date of this Agreement. Notwithstanding the foregoing or any other provision of this Agreement, (i) the Member may deposit the Shares with a lender for the purpose of getting a margin loan, provided that the lender is subject to the lock-up provisions described in this Section 4.3, and (ii) if the Chief Executive Officer and/or other executive officers of Buyer enter into lock-up arrangements in connection with a public financing or otherwise at the request of an underw1iter, investment banker and/or Buyer's Board of Directors then the lock-up arrangements described in this Section 4.3 shall become null, void and of no further force and effect and Seller, each individually, shall enter into lock-up arrangement in connection with the Shares on the same terms as the Chief Executive Officer and other executive officers.

5.0 REPRESENTATIONS AND WARRANTIES OF SELLER. Each Seller severally and not jointly hereby represents and warrants to Buyer that the statements contained in  this Section 5.0 are correct and complete as of the date hereof and as of the Closing Date as follows.

5.1 Status and Authority.

 

(a)

Power. Seller has all requisite power and authority to own, lease and sell the Intellectual Property.

(b)

Authorization of Transaction. Seller has the right, power and authority to enter into and perform this Agreement and any other agreement or instrument related hereto to which Seller is or will be a party in connection with this agreement. This Agreement and the other agreements and instruments related hereto to which Seller is or will be a party constitute the valid and binding agreements of Seller enforceable against Seller in accordance with their respective terms.

(c)

Absence of Violations or Conflicts. The execution, delivery and performance by Seller of this Agreement and any other agreement or instrument related hereto to which Seller is or will be a party do not and will not violate, conflict with, constitute a default under, modify or cancel (a) any agreement, contract, lease, license, instrument or other arrangement to which Seller is a party or by which Seller is bound or to which the Intellectual Property is subject; (b) any judgment, decree, or order of any governmental agency or court to which Seller is subject; or (c) any applicable law or regulation.

 

5.2 Absence of Certain Changes or Events. Since the effective date of this Agreement, there has not been:

 

(a)

any Material Adverse Change in or material damage or material loss to the Intellectual Property;

(b)

any sale, assignment or transfer of any of the Intellectual Property;

or

 

(c)

any agreement by or commitment of Seller to do or permit any of the foregoing.

 

3

5.3 Title to Intellectual Property. Except as would not constitute a Material Adverse Change, Seller owns all right, title, and interest to the Intellectual Property, including, without limitation, all right, title, and interest to sue for infringement of the Intellectual Property.

Except as would not constitute a Material Adverse Change, the Intellectual Property is free and clear of all liens, claims, mortgages, security interests, and other encumbrances.

5.4 Litigation and Other Proceedings. Except as would not constitute a Material Adverse Change, there is not any suit, claim, action, proceeding or governmental investigation directly or indirectly relating to the Intellectual Property known to the Seller that is pending or threatened in writing, nor is there presently any condition or set of facts which Seller reasonably expects to give rise to any such litigation. Except as would not constitute a Material Adverse Change, there are no decrees, injunctions or orders of any court, administrative or regulatory body, arbitration panel or governmental agency outstanding against Seller relating to any aspect of the Intellectual Property.

5.5 Intellectual Property.

(a)

Seller has never received any charge, complaint, claim, demand, or notice alleging any such interference, infringement, misappropriation, or violation (including any claim that Seller must license or refrain from using any intellectual property rights of any third party) pertaining to the Intellectual Property. To Seller's Knowledge, no third party has interfered with, infringed upon, misappropriated, or otherwise come into conflict with any Intellectual Property.

(b)

Seller is not a party to any license, agreement or arrangement, whether as a licensee, licensor, or otherwise, with respect to the Intellectual Property.

(c)

Seller is not aware of any facts or circumstances adversely affecting the validity and/or enforceability of the Intellectual Property.

 

5.6 Commissions. No Person has asserted or is entitled to any commission or broker's or finder's fee in connection with the sale of the Intellectual Property or any of the other transactions contemplated by this Agreement by reason of act or omission of Seller.

 

5.7 Securities Representations. Each Seller hereby represents and warrants to Buyer:

(a)

Seller understands and agrees that the Warrants and Shares (individually and collectively, the "securities") have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state of the U.S. and that the issuance of the securities is being done in reliance upon an exemption from registration afforded under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D.

(b)

Seller is an Accredited Investor as that term is defined in Exhibit D. Each Seller severally understands that the securities are being offered and sold to such Seller in reliance upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of such Seller set forth in this Agreement, in order that Buyer may determine the applicability and availability of the exemptions from registration of on which Buyer is relying.

4

(c)

Seller is able to bear the economic risk of an investment in the securities for an indefinite period of time, can afford the loss of the entire investment in the securities, and will, after making an investment in the securities, have sufficient means of providing for Seller's current needs and possible future contingencies. Additionally, Seller's overall commitment to investments that are not readily marketable is not disproportionate to Seller's net worth and this Subscription will not cause such overall commitment to become excessive.

(d)

The securities will not be sold by the Seller without registration under applicable securities acts or a proper exemption from such registration.

(e)

The securities are being acquired for the Seller's own account and risk, for investment purposes, and not on behalf of any other person or with a view to, or for resale in connection with, any distribution thereof within the meaning of the Securities Act. The Seller is aware that there are substantial restrictions on the transferability of the securities.

(f)

Seller has had access to any and all information concerning Buyer that the Seller considered necessary to make a proper evaluation of this investment. In making the decision to acquire the securities, Seller has relied solely upon its own independent investigations, and fully understands that there are no guarantees, assurances or promises in connection with any investment hereunder and understands that the particular tax consequences arising from this investment in Buyer will depend upon the individual circumstances of the Seller. The Seller further understands that no opinion is being given as to any securities  or tax matters involving the offering.

(g)

All of the information furnished by the Seller to Buyer is true, correct and complete in all material respects, and the Seller agrees to notify Buyer immediately of any change in any information set forth herein.

(h)

The Seller also understands and agrees that stop transfer instructions relating to the securities will be placed in the Buyer's transfer ledgers, and that the certificates evidencing the securities will bear legends in substantially the following form:

The securities represented by this certificate have not been registered under the Securities Act of 1933 (the "Act") and are "restricted securities" as that tennis defined in Rule 144 under the Act. The securities may not be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Act or pursuant to an exemption from registration under the Act, the availability of which is to be established to the satisfaction of the Company.

(i)

Seller has been given the unrestricted opportunity to ask questions of, and receive answers from, Buyer, or persons acting on its behalf, concerning the tenns and conditions of, and all other matters relating to the Buyer, and has been given the unrestricted opportunity to obtain such additional information with respect to the offering as he has desired.

(j)

Seller knows that the securities are offered and sold pursuant to exemptions from registration under the Securities Act, and state securities law based, in part, on these warranties and representations, which are the very essence of this Agreement, and constitute a material part of the bargained­ for consideration without which this Agreement would not have been executed.

(k)

By reason of the Seller's business or financial experience or the business or financial experience of professional advisors who are unaffiliated with and who are not compensated by Buyer or any affiliate or selling agent of Buyer, directly or indirectly, Seller has the capacity to protect Seller's own interest in connection with this transaction or has a pre-existing personal or business relationship with Buyer or one or more of its officers, directors or controlling persons consisting of personal or business contacts of a nature and duration such as would enable a reasonably prudent purchaser to be aware of the character, business acumen and general business and financial circumstances of such person with whom such relationship exists.

5

(1)

This Agreement when fully executed and delivered by the parties will constitute a valid and legally binding obligation of Seller, enforceable in accordance with its terms. Seller, if it is a partnership, joint venture, corporation, trust or other entity, was not formed or organized for the specific purpose of acquiring the securities. The purchase of the securities by the Seller, if it is an entity investor, is a permissible investment in accordance with the Seller's Articles of Incorporation, by-laws, partnership agreement, declaration of trust or other similar charter document, and has been duly approved by all requisite action by the entity's owners, directors, officers or other authorized managers. The person signing this document and all documents necessary to consummate the purchase of the securities has all requisite authority to sign such documents on behalf of Seller, if it is an entity investor.

 

5.8 Accuracy of Statements. To Seller's Knowledge, no representation, warranty or statement by Seller in this Agreement contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact, necessary to make the statements herein or therein not misleading.

 

5.9 No Other Representations or Warranties. Except for the representations and warranties contained in this Section 5, Seller has not made and does not make any other express or implied representations or warranties, either written or oral, on behalf of Seller or any other person or entity. Without limiting the foregoing, and notwithstanding anything in this Agreement to the contrary, Seller makes no representations or warranties (a) as to the future revenue, profitability or success of the Intellectual Property, (b) as to the actual or likely scope of claims, if any, that may issue from patents filled for the Intellectual Property.

 

6.0 REPRESENTATIONS AND WARRANTIES OF BUYER. Buyer hereby represents and warrants to Seller that the statements contained in this Section 6.0 are correct and complete as of the date hereof and as of the Closing Date as follows:

 

6.1 Status and Authority. Buyer is a corporation duly organized, validly existing and in good standing under the laws of its state of organization. Buyer has the right, power and authority to enter into and perform this Agreement and any other agreement or instrument related hereto to which Buyer is or will be a party. The execution, delivery and performance by Buyer of this Agreement and any other agreements and instruments related hereto to which Buyer is or will be a party prior to the date hereof have been duly authorized by all necessary corporate action in compliance with its Articles of Incorporation, Bylaws and applicable law. This Agreement and the other agreements and instruments related hereto to which Buyer is or will be a party constitute the valid and binding agreements of Buyer that are enforceable against Buyer in accordance with their respective terms.

6.2 Absence of Violations or Conflicts. The execution, delivery and performance by Buyer of this Agreement and the other agreements and instruments related hereto to which Buyer is or will be a party do not and will not violate, conflict with, or constitute a default under: (a) any contract, agreement, commitment, undertaking or understanding to which Buyer is a party; (b) any judgment, decree or order of any governmental or regulatory authority to which Buyer is subject; (c) any applicable law or regulation; or (d) Buyer's charter documents or Bylaws.

6

 

6.3 No Governmental Consents Required. No consent, notification, approval, order or authorization of, or registration, declaration or filing with, any governmental or regulatory authority is required on the part of Buyer in connection with its execution, delivery or performance of this Agreement.

 

6.4 Commissions. No Person has asserted or is entitled to any commission or broker's or finder's fee in connection with the sale of the Acquired Assets or any of the other transactions contemplated by this Agreement by reason of any act or omission of Buyer.

 

6.5 Shares Reserved. Buyer has authorized and reserved the Shares issuable upon exercise of the Warrants, and such Shares are not subject to any other reservation or held for any other purpose.

 

6.6 Absence of Certain Changes or Events. Since the effective date of this Agreement, there has not been:

(a) any Material Adverse Change in the business, financial results, or prospects of the Buyer;

 

(b) any entering into any agreement by or commitment of Buyer that could reasonably be expected to result in a Material Adverse Change, and the transactions contemplated hereby are not expect to result in an Material Adverse Change regarding Buyer.

 

6.7 Accuracy of Statements. To Buyer's Knowledge, no representation, warranty or statement by Seller in this Agreement contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact, necessary to make the statements herein or therein not misleading.

7.0 SELLER AND BUYER DELIVERIES.

 

7.1 Seller Deliveries. At Closing, Seller is delivering to Buyer the following:

(a)Assignments of Intellectual Property, in the form attached as Exhibit C; and

(b)Such other agreements, certificates, instruments, and documents as Buyer may reasonably request to carry out the intent of this Agreement.

 

7.2 Buyer Deliveries. At Closing, Buyer is delivering to Seller the following:

 

(a) the Purchase Price, except as otherwise stated in Exhibit A; and

(b) Such other agreements, certificates, instruments, and documents as Seller may reasonably request to carry out the intent of this Agreement.

7

8.0 CONDITIONS TO CLOSING. All of the following shall be conditions precedent to Buyer's obligation to consummate the transactions contemplated by this Agreement:

 

8.1 Accuracy of Seller's Representations and Warranties. Seller's representations and warranties, whether contained in this Agreement or contained in any written document delivered to Buyer pursuant hereto, shall be correct and complete in all material respects on as of the date when made and on and as of the Closing Date as if made on and as of that date, and Buyer shall have received a certificate dated as of the Closing Date signed by an officer of Seller attesting to the foregoing.

 

8.2 Accuracy of Buyer's Representations and Warranties. Buyer's representations and warranties, whether contained in this Agreement or contained in any written document delivered to Seller pursuant hereto, shall be correct and complete in all material respects on and as of the date when made and on and as of the Closing Date as if made on and as of that date, and Seller shall have received a certificate dated as of the Closing Date signed by an officer of Buyer attesting to the foregoing.

 

8.3 Deliveries. The parties shall have received (or waived) all of the items required to be delivered pursuant to Section 7.

9.0 TAXES. Seller shall pay all sales, retail sales, goods and services, excise, property transfer, documentary or stamp, and similar Taxes, if  any, arising  out of or related  to the  sale of the Intellectual Property or other transactions pursuant to or contemplated by this Agreement.

10.0 INDEMNIFICATION.

10.1 General Indemnification.

 

(a) By Seller. Subject to the provisions of this Section 10.0, each Seller severally (and not jointly) agrees to indemnify and defend Buyer and its successors and assigns and hold them harmless against and in respect of any and all loss, liability, cost, expense or damage (including, without limitation, reasonable legal and other professional fees and expenses, judgments and settlement payments) incurred or suffered by Buyer resulting from or by reason of any misrepresentation, breach, nonperformance or inaccuracy of any representation, warranty or covenant by Seller made or contained in this Agreement, or in any Exhibit, schedule, agreement, instrument, certificate, or document executed and delivered to Buyer pursuant to this Agreement or the transactions contemplated herein.

 

(b) By Buyer. Subject to the prov1s1ons of this Section 10.0, by execution of this Agreement, Buyer agrees to indemnify and defend Seller and their successors and assigns and hold them harmless against and in respect of any and all loss, liability, cost, expense or damage (including, without limitation, reasonable legal and other professional fees and expenses, judgments and settlement payments) incurred or suffered by Seller resulting from or by reason of any misrepresentation, breach, nonperformance or inaccuracy of any representation,warranty, or covenant by Buyer made or contained in this Agreement, or in any Exhibit, schedule, agreement, instrument, certificate or document executed and delivered to Seller by or on behalf of Buyer under or pursuant to this Agreement or the transactions contemplated herein.

8

 

10.2 Survival of Indemnification. The representations, warranties and indemnification contained in this Agreement shall survive until the expiration of the applicable statute of limitations.

 

11.0 MISCELLANEOUS.

 

11.1 Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, provincial, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word "including" shall mean including without limitation.

 

11.2 Notices. For purposes hereof, delivery of written notice shall be complete upon personal delivery, or upon mailing if mailed with proper postage paid by registered or certified mail, or upon delivery to a recognized, commercial overnight delivery service, addressed to the party at the address set forth below, or to such other mailing address as the parties hereto may designate by written notice given in accordance with this Section 10.2. Notice may also be given upon receipt of electronic facsimile, provided that any facsimile notice shall only be deemed received if (a) the transmission thereof is confirmed, and (b) facsimile notice is followed by written notice, made either by (i) personal delivery thereof, (ii) via deposit in certified mail return receipt requested, postage prepaid, or (iii) via delivery to a recognized commercial overnight delivery service within three (3) business days following the facsimile notice. Notices shall be addressed to the parties as follows:

 

Buyer:

Predictive Technology Group, Inc.

Attn: President

2735 Parleys Way, Suite 205 Salt Lake City, Utah 84109

Seller:

With a copy to:

Taueret Laboratories Attn: President

2749 Parleys Way, Suite 100 Salt Lake City, Utah 84109

 

Kenneth Ward

Post Office Box 17654 Holladay, Utah 84109

Any Party may change the address to which to send notices by notifying the other Party of such changes in writing in accordance with this section.

9

11.3 Specific Performance. Each of the Parties acknowledges and agrees that the other Party would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached. Accordingly, each of the Parties agrees that the other Party shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any action instituted in any court of the United States, any state, municipality or territory thereof having jurisdiction over the Parties and the matter in addition to any other remedy to which it may be entitled, at law or in equity.

 

11.4 Cooperation And Further Actions. The Parties agree to perform any and all acts and to execute and deliver any and all instruments, agreements and documents necessary or convenient to carry out the terms of this Agreement.

 

11.5 Binding on Successors and Assigns. This Agreement shall be binding upon, inure to the benefit of and be enforceable by and against Buyer and Seller and their respective successors and permitted assigns in accordance with the terms hereof. Seller shall not assign his interest under this Agreement without the prior written consent of Buyer.

 

11.6 Professional Fees. If a lawsuit, arbitration, or other proceedings are instituted by any Party to enforce any of the terms or conditions of this Agreement against any other Party hereto, the prevailing party in such litigation, arbitration, or proceedings shall be entitled, as an additional item of damages, to such reasonable attorneys; and other professional fees (including but not limited to expert witness fees), court costs, arbitrators' fees, arbitration administrative fees, travel expenses, and other out-of-pocket expenses or costs of such other proceedings as may be fixed by any court of competent jurisdiction, arbitrator, or other judicial or quasi-judicial body having jurisdiction thereof, whether or not such litigation or proceedings proceed to a final judgment or award. For the purposes of this Section 11.6, any Party receiving an arbitration award or a judgment for damages or other amounts shall be deemed to be the prevailing Party, regardless of amount of the damage awarded or whether the award or judgment was based upon all or some of such Party's claims or causes of action.

 

11.7 Governing Law: Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Utah without giving effect to any choice or conflicts of law provision or rule that would cause the application of the laws of any jurisdiction than the State of Utah. Each of the Parties submits to the jurisdiction of any state or federal court sitting in the County of Salt Lake, State of Utah in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court. Each Party also agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court. Each of the Parties waives any defense of inconvenient forum to the maintenance of any action or.proceeding so brought and waives any bond, surety or other security that might be required of any other party with respect thereto.

 

11.8 Expenses. Except to the extent otherwise provided in this Agreement, Seller and Buyer shall each bear its or his own expenses incurred in connection with this Agreement and the transactions herein contemplated, including, but not limited to, legal and accounting fees and expenses.

 

11.9 Miscellaneous. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of the remainder of this Agreement or any other provision of this Agreement. This Agreement embodies the entire agreement and understanding between the Parties relating to the subject matter of this Agreement and neither this Agreement nor any provision of this Agreement may be amended, waived, or discharged, except by a written instrument executed by the Party against whom enforcement of such amendment, waiver, or discharge is sought. All prior negotiations and agreements, whether oral or written, between the Parties are superseded by this Agreement, and there are no understandings or agreements other than those expressly set forth herein or in an Exhibit delivered pursuant hereto with respect to the subject matter hereof. This Agreement may be executed in counterparts each of which, taken together, shall constitute a complete agreement. One or more counterparts of this Agreement or any Exhibit hereto may be delivered via facsimile and such facsimile counterpart shall have the same effect as an original counterpart hereof. This Agreement is not intended and shall not be construed to create any rights in any Persons other than Buyer and Seller, and no Person shall assert any rights as third-party beneficiary hereunder.

[SIGNATURES  ON NEXT PAGE]

10

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives on the day and year first above written.

SELLER:

TAUERET LABORATORIES, L.L.C.

By: /s/ Allen Ward

Its: President

 

/s/ Kenneth Ward

Kenneth Ward Inventor

 

/s/ Rakesh Chettier

Rakesh Chettier Inventor

 

BUYER:

PREDICTIVE TECHNOLOGY GROUP, INC.

 

By: /s/ Bradley C. Robinson

Its: CEO

COUNTERPART SIGNATURE PAGE FOR MEMBERS

IN WITNESS WHEREOF, the undersigned member of TAUERET LABORATORIES , L.L.C. has executed and delivered this Securities Purchase Agreement as of the date first written above.

Member

Signed: /s/ Kenneth Ward

Printed name: Kenneth Ward

Title: member

 

11

P>

COUNTERPART SIGNATURE PAGE FOR MEMBERS

IN WITNESS WHEREOF, the undersigned member of TAUERET LABORATORIES, L.L.C. has executed and delivered this Securities Purchase Agreement as of the date first written above.

Member

Signed:/s/ Lesa Nelson 

Printed name: Lesa Nelson

Title: member

COUNTERPART SIGNATURE PAGE FOR MEMBERS

IN WITNESS WHEREOF, the undersigned member of TAUERET LABORATORIES, L.L.C. has executed and delivered this Securities Purchase Agreement as of the date first written above.

 

Member

Signed: /s/ Allen Ward

Printed name: Allen Ward

Title: President

12

COUNTERPART SIGNATURE PAGE FOR MEMBERS

IN WITNESS WHEREOF, the undersigned member of TAUERET LABORATORIES, L.L.C. has executed and delivered this Securities Purchase Agreement as of the date first written above.

Member

Signed:/s/ Linda F. Gould 

Printed name: Linda Gould

Title: VP Business Affair

COUNTERPART SIGNATURE PAGE FOR MEMBERS

IN WITNESS WHEREOF, the undersigned member of TAUERET LABORATORIES, L.L.C. has executed and delivered this Securities Purchase Agreement as of the date first written above.

Member

Signed:/s/Kathleen Brown 

Printed name: Kathleen Brown

Title: member

13

EXHIBIT A

(Sellers and Allocation of Purchase Price)

  			
	 

       

       

      Seller
	Warrants exercisable for the following number of Shares

    	 

       

       

      Time of Warrants Issuance

	Taueret Laboratories Member - Kenneth Ward Revocable Trust

    	10,591,620

      	at Closing

    
	Taueret Laboratories Member - Lesa Nelson

    	2,310,810

    	At Closing

    
	Taueret Laboratories Member - Allen Ward

    	1,020,000

    	At Closing

    
	Taueret Laboratories Member - Linda Gould

    	616,215

    	At Closing

    
	Taueret Laboratories Member - Kathleen Brown

    	461,355

    	At Closing

    
	Kenneth Ward

    	750,000

    	Upon filing of initial patent application relating to the Intellectual Property

    
	Rakesh Chettier

    	750,000

    	Upon filing of initial patent application relating to theIntellectual Property

    

Chettier and Ward and will work with Wilson Sonsini to get utility patent filed covering these markers within 60 days of Closing Date. Patent expenses will be paid by PRED and patent will owned by and be assigned to PRED. Payment to Ward and Chettier will not be delayed beyond this 60 day window due to delays caused by the law firm.

14

 

EXHIBIT B

(Description of Intellectual Property)

1.) Approximately 1,000 DDD-related DNA samples, related family records, relevant clinical records (including approximately 600 affected probands) and 800 ancestry matched control samples (based on principal component analysis). All data protection and patient confidentiality requirements outlined in the original research studies shall be observed and respected by the Buyer. These samples were all collected more than 10 years ago. A precise inventory of the DNA samples and clinical is not feasible, and some samples may have been consumed or have become degraded.

 

2.) Whole exome sequencing data on approximately 300 DDD samples, over 800 local controls, and published reference populations. Initial analysis shows several hundred DNA markers showing nominal significance for DDD association and approximately 15 showing genome-wide significance levels. These data will be submitted to attorneys (Wilson, Sonsini, Goodrich & Rosati) after closing for generating utility patent applications. These data were created using standard sequencing protocols and workmanlike research methods; no warranty is made, expressed, or implied as to the commercial usefulness of these data.

 

3.) Project plan, study paperwork, promotional study materials used in the research study including:

 

DDD Binder for Clinical Sites

1 - Front binder sheet.pdf 2 - Contact sheet.pdf

3- Inclusion-Exclusion sheet.pdf

4- Divider - Axial Research tab.pdf

5- Training Slides quorum 2-23-10.ppt 6 - Table of Contents 5-09.doc

7 - Divider -past patient tab.pdf 8 - Past Patient Protocol.doc

 

9 - Patient letter 6.16.09.doc 10 - DDD Response Card.docx

11 - Divider - Current patient tab.pdf 12 - Current Patient Protocol.doc

13 - Understanding the Consent Process.doc 14 - Divider - Forms & Docs tab.pdf

15 - Collaboration Agreement Orthopaedic Surgeon Final 7-31-09.doc 16 - Protocol 6-19-09.doc 17 - Compensation Info.docx

18 - Consent Form 2009.doc 19 - Assent Form 2009.doc

20- Medical Record Release 6-10-09.doc

21- DDD Brochure.pdf

22- Divider - Questionnaires tab.pdf

23-Surgical Questionnaire version 10.6.09.pdf

24-Non-Surgical Questionnaire version 10.6.09.pdf 25- Family History Form 2009.docx

26 - Back binder sheet.pdf

15

Physician Enrollment Materials

DDD enrollment.doc

DDD Sites 6-11-09.xlsx De-identified training slides 2_23_10.ppt Folder labels - cards.docx Past Patient Enrollment.doc

Training slides quorum IRB 2_23_10.ppt patient letter 6.16.09.doc

 

Database Fields & Reports

All samples export fields.docx

 

Forms & Labels

Chart Notes.xlsx

Fax Transmission covers DDD MRI & Notes.doc

DDD MRI only Request.doc DDD Notes only request.doc Intake Form 2009.pdfLabels

DDD File folder Checklist.doc

DDD Folder label Non-Surgical.docx DDD Folder label Surgical.docx Kit Labels

DNA outside labels.docx Small DNA labels.docx

Test tube labels De-identified.docx Test tube labels.docx Medical Record Release MRR 6-10-09.doc

MRR Spanish 6-10-09.docx Pedigree form.pdf Review Forms

CLINICAL NOTE REVIEW.doc

DISCOGRAPHY REVIEW.doc MRI Review Form.doc XRAY REVIEW FORM.doc

 

Inclusion - Exclusion Criteria

Criteria Cheat Sheet

Non-Surgery Cheat Sheet.docx

Surgery Cheat Sheet.docx Inclusion-Exclusion (in-design) Inclusion-Exclusion Card_9_22_09.pdf Inclusion-exclusion.docx Key Questions Inclusion or Exclusion.docx

 

IRB Materials

DDD_Separate study Closure

Axial_Ward_DDD_Closure Letter_4.23.12.pdf Axial_Ward_DDD_Closure_24563QMR_FE.doc Axial_Ward_DDD_Closure_24563QMR_FE.pdf

Continuing review Approval Documents

Axial_Ward_DDD_CR Approval_6.9.l l.pdf Axial_CR Report_24563QMRl_w sig_5.5.1 l.pdf Axial_CR SSR_24563QMRl_w sig_S.5.11 .pdf Axial_DDD_CR Report_24563QMR_5.5.1l.doc

Axial- DDD- CR SSR- 24563QMR-1- 5.5.11.doc

DDD approval documents_7.13.09 Advertisement

Axial_DDD_Approved advertisement_6.19.09.pdf Approval Letter Axial_DDD_Approval letter_7.13.09.pdf

Questionnaires

Axial_DDD_Approval letter for revised DDD questionnaires_l0.22.09.pdf Assent

Axial_DDD_Approved assent (7-17)_version1_7.13.09.pdf Brochure

Axial_DDD_Approved brochure_version 1_6.16.09.pdfDDD Brochure 8-18-09.pdf Combined approval documents from Quorum_7.13.09

Axial_DDD_Approval documents_24563qmr-1_7.13.09.pdf Axial_DDD_Approved recruitment documents_24563qmr-1_7.13.09.pdf

Consents

Adult Consent 2009 (Highlighted).docx

Assent 2009 On-site (Highlighted).doc Axial_DDD_Approved consent_version 1_7.13.09.pdf

16

Axial- Informed Consent Process- 6.25.09.doc Consent Checklists

Assent form checklist.doc Consent Form Checklist.doc Minor Consent Checklist.doc

DDD Onsite Adult-Minor Consent.doc IRB approval 8-10-07.pdf Minor Consent 2009 (Highlighted).doc Spanish

Axial_Approved Spanish translated assent (7-17)_6.26.09.pdf Axial_Approved Spanish translated consent_6.26.09.pdf Axial_DDD_Assent (7-17)_Spanish translation_S.5.09.pdf Axial_DDD_Consent_Spanish translation_S.5.09.pdf

Minor Assent Checklist - Spanish.docx Minor Consent Checklist - Spanish.docx Spanish Assent 2009.pdf

Spanish Consent 2009.pdf Family History Form

Axial_DDD_Approved family history form_version 1_6.16.09.pdfDDD Family History Form - SPAN.docx

Patient Letter

Axial_DDD_Approved patient letter_version 1, 6.16.09.doc Protocol

Axial_DDD_Approved protocol_version 1_6.16.09.pdf Questionnaires

De-Identified Questionnaire

De-Identified Non-Surgical Questionnaire.doc Non-surgical Questionnaire Axial_DDD_Non-Surgical Questionnaire_Version 2_10.6.09.pdf Axial_DDD_Pain questionnaires_Version 2 w highlighting_10.6.09.pdf Spanish Questionnaires

Non-Surgical Spanish Questionnaire.doc Surgical Spanish Questionnaire.doc Online Questionnaire

Axial_DDD_Approved online questionaire_7.13.09.pdf Surgical Questionnaire

Axial_DDD_Approved surgical questionnaire_version 1_6.16.09.pdf Axial_DDD_Surgical Questionnaire_Version 2_10.6.09.pdfDe-Identified Surgical Questionnaire.doc

Response Cards

Axial_DDD_Approved response card_S.29.09.doc Spanish translation documents Consent and assent Approval Letter

Axial_DDD_Approval letter for Spanish translation of consent and assent_8.5.09.pdf Axial_DDD_Assent (7-l7)_Spanish translation_S.5.09.pdf Axial_DDD_Consent_Spanish translation_8.5.09.pdf Translation Certificate

Axial_DDD_Consent and assent translation certificate_8.4.09.pdf

Questionnaires

Spanish Non-Surgical Questionnaire

Axial_DDD_Non-Surgical Questionnaire_Final_6 16 09_Spanish_ (2).doc Spanish Surgical Questionnaire

Axial_DDD_Surgical Questionnaire_Final_ 6 16 09_Spanish.doc Spanish Translation Approval documents

Spanish Translation Approval Letter Axial_DDD_Questionnaires approval letter_Spanish_8.25.09.pdf

17

Spanish Translation Certificates

Axial_DDD_Questionnaires translation certificate_Spanish_S.20.09.pdf DOD Spreadsheets

DOD sites in site start up spreadsheet_6.9.09.xlsx Site study documents

Axial Biotech_DDD collaboration agreement_Final_7.16.09.doc DOD approval letter Axial_DDD_Approval letter_7.13.09.pdfSite study documents

Axial_DDD Brochure_version 1_6.16.09 (2).pdf Axial_DDD_Advertisement_6.19.09.pdf Axial_DDD_Assent (7-17)_version 1_7.13.09.doc

Axial- ODD- Consent- version 1- 7.13.09.doc

Axial ODD CmTent Patient Collection Guidelines 10.13.09.doc Axial DOD De-identified Non-

Surgical questionnaire_6.16.09.pdf Axial_DDD_De-Identified Surgical Questionnaire_6.16.09.pdf Axial_DDD_Family History Form_version1_6.16.09.pdf Axial_DDD_Inclusion-Exclusion Form (2)_9_22_09.pdf

Axial_DDD_Medical Record Release form_6-10-09.pdf Axial_DDD_Non-Surgical Questionnaire_Version 2 w highlighting_l0.6.09.doc Axial_DDD _Non-Surgical Questionnaire_Version 2_10.6.09.doc Axial_DOD_Online questionaire_7.13.09.pdf

Axial_DDD_Pain questionnaires_Version 2 w highlighting_l0.6.09.doc Axial_DDD_Past Patient Collection Guidelines_l0.13.09.doc Axial_DDD_Patient letter_version 1_ 6.16.09 (3).doc

Axial- DOD- Protocol- version 1- 6.16.09.doc Axial_DDD_Response Card_S.29.09.pdf

Axial_DDD_Surgical Questionnaire_Version 2 w highlighting_l0.6.09.doc DOD_Spinal conditions

DOD sites in site start up spreadsheet_6.9.09.xlsx Site DOD study documents Axial_DDD Intake Fonn_5.6.09.pdf

Axial_DDD Non-Surgical Questionnaire_4.24.09.doc Axial_DDD patient letter_4.29.09.doc Axial_DOD Surgical Questionnaire_4.24.09.doc DOD_Current patient enrollment_2.4.09.doc DOD_Past patient enrollment_2.4.09.doc DOD_Patient Brochure_12.30.08.doc DOD_Response Cards 12.30.08.doc

New Site DOD documents

Axial Biotech_DDD collaboration agreement_Fina1_2.25.09.doc Axial_Consent Form _6.10.08.doc Axial_DDD Intake Form_5.6.09.pdf

Axial_DDD Non-Surgical Questionnaire_4.24.09.pdf Axial_DDD patient letter_4.29.09.doc

Axial_DDD Surgical Questionnaire_4.24.09.pdf Axial_DDD_Inclusion Exclusion Criteria_5.5.09.pdf Axial_Procotol_6.2008.doc

ODD_Current patient enrollment_2.4.09.doc DDD_Past patient enrollment_2.4.09.doc DDD_Patient Brochure_12.30.08.doc DOD_Response Cards_12.30.08.doc Research_ScoliScore Directory_2.27.09.pdf

 

Letters

Saliva sample Instructions_2.10.09.pdf Protocol

Axial_Procotol_6.2008.pdf Protocol 6-19-09.doc Consent Card Ltr.doc Copy for your Records.doc ODD 1st reminder.doc DOD 2nd Reminder.doc DDD 3rd Reminder.doc DDD Consent Cards.docx

DDD Not Collected Online Q.doc DDD Not Collected Resp card.doc DDD Saliva Kit ltr.doc

De-identified training letter.doc Mail-in Questionnaire.doc

Onsite Folders Letter (De-identified).doc Onsite Folders Letter (our IRB).doc Onsite Gift Card ltr.doc

18

Physician Materials Example

Kade Huntsman IM Ortho Envelope.docx Huntsman Logo.jpg

Patient letter.docx

Response cards K. Huntsman.doc

Salt Lake Orthopedic Clinic Kit Labels.docx

 

Response Cards

DDD Response Card 6-29-09.docx

 

Sample collection

Saliva Instructions Form.doc

 

4.) Gen DB records

 

GenDB contains birth, death, or marriage records for over 31,900,000 individuals who are ancestors or relatives of certain present day populations in the Intermountain West arranged in a MySQL database.

 

5.) DNA Biobank

 

Dr. Ward will make exclusive use of the existing biobank samples under his control available for pilot research for relevant gene discovery projects funded by Predictive, Pilot projects using these samples must be led by Dr. Ward serving as Principal Investigator, with reasonable budget and standard terms agreed to by Dr. Ward.

 

Examples of medical conditions with significant number of samples for pilot or confirmatory studies:

 

•

Polycystic ovarian syndrome

•

Preterm labor mothers and infants

•

Autoimmune diseases

•

Hypothyroidism

19

•

Essential hypertension (female-early onset)

•

Recurrent miscarriage

•

Morbid obesity (female-early onset)

•

Placental abruption

•

Ovarian cancer

•

Gestational diabetes

•

Intrauterine growth retardation- mothers and infants

•

Birth Defects

•

Left cardiac flow lesions

•

Juvenile onset diabetes

•

Fetal macrosomia

•

Dizygotic twins

•

Monozygotic twins

•

Other pregnancy complications

 

THESE SAMPLES WERE ALL COLLECTED MORE THAN 15 YEARS AGO. A PRECISE INVENTORY OF SAMPLES IS NOT FEASIBLE, AND SOME SAMPLES HAVE BEEN CONSUMED OR HAVE BECOME DEGRADED. SAMPLES CANNOT BE SOLD, AND AT PRESENT, THESE SAMPLES CAN ONLY BE USED FOR GENE DISCOVERY RESEARCH IN WHICH DR. WARD SERVES AS THE PRINCIPAL INVESTIGATOR. THE COLLECTION IS USEFUL FOR PILOT STUDIES AND CONFIRMATORY STUDIES, BUT NO WARRANTY IS MADE AS TO THEIR RELEVANCE OR USEFULNESS FOR ANY PARTICULAR DISEASE DISCOVERY TARGET.

20

EXHIBIT C

(Form  of Assignment)

Inventors:

Kenneth Ward

P.O. Box 17654

Salt Lake City, Utah 84117

Citizenship: US

Rakesh N. Chettier 

Assignee:

Predictive Technology Group, Inc. 2735 E. Parleys Way, Suite 205 Salt Lake City, UT 84109

BACKGROUND OF THE ASSIGNMENT

INVENTORS have conceived a certain new and useful invention disclosed in a United States patent application titled [INSERT TITLE OF INVENTION].

 

ASSIGNEE desires to acquire the entire right, title and interest in the invention and with respect to any Letters Patent or grant of rights equivalent thereto that may be granted with respect to the invention in both the United States and in all foreign countries.

 

THE PARTIES AGREE AS FOLLOWS:

 

For good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned INVENTORS hereby sell, assign, and transfer to Predictive Technology, Inc., a corporation of the state of Nevada, the entire right, title, and interest in the above-identified patent application executed concurrently herewith and to all divisional, continuing, substitute, renewal, reissue, and all other applications for  patent or the legal equivalent thereof which have been or may be filed in the United States and all countries foreign to the United States relating to any subject matter disclosed by the above­ identified patent application and hereby authorizes the Commissioner of Patents and Trademarks to issue such Letters Patent to ASSIGNEE for the sole use of ASSIGNEE, its successors, or assigns.

 

Specifically, ASSIGNEE is hereby authorized to apply for patents relating to the invention in its own name in countries where such procedure is proper; to claim the benefit of, file, and prosecute applications relating to the invention under any international conventions or treaties, if applicable. INVENTORS agree to execute applications relating to the invention in those countries and under those international conventions or treaties, if applicable, where it is necessary that the same be executed by the inventors, and to execute assignments of such applications and the resulting grant of patent rights or equivalents thereof to ASSIGNEE as well as all other necessary papers in relation to such applications and Letters Patent.

 

21

The INVENTORS further agree, at the request and expense of ASSIGNEE, to: execute all divisional, continuing, substitute, renewal, reissue, and any other documents relating thereto; execute all rightful oaths, declarations, assignments, powers of attorney, and other papers; communicate to the ASSIGNEE all facts and provide to the ASSIGNEE all documents and things known to the undersigned relating to the above-referenced Application for United States Letters Patent; testify as to the same in any interference, litigation, or other proceeding relating to the above-referenced application for United States Letters Patent; and in general, do everything reasonably possible which the ASSIGNEE shall consider desirable for vesting title to such Application for United States Letters Patent in the ASSIGNEE, and for securing, maintaining, defending, or enforcing valid and enforceable patent protection therefor.

 

The INVENTORS acknowledge that the sale, assignment, and transfer of rights and property set forth herein is and shall be irrevocable and binding upon the heirs, assigns, representatives and successors of each undersigned INVENTOR and extends to the successors, assigns, and nominees of the ASSIGNEE.

 

POWER OF ATTORNEY

 

In the event the ASSIGNEE is unable to secure any INVENTOR'S signature on any document necessary to apply for, prosecute, obtain, or enforce any patent, copyright, or other right or protection relating to any invention, whether due to mental or physical incapacity or other cause, each INVENTOR hereby irrevocably designates and appoints the ASSIGNEE and each of its duly authorized officers and agents as his or her agent and attorney-in-fact, to act for and in his or her behalf and stead to execute and file any such documents and to do all other lawfully permitted acts to further the prosecution, issuance, and enforcement of patents, copyrights, or other rights or protections with the same force and effect as if executed and delivered by the INVENTOR.

Signed on _____________, 2018. 

Kenneth Ward

 

Signed on  ______________, 2018.

 Rakesh N. Chettier

22

EXHIBIT D

(Definition of "Accredited Investor")

The term "accredited investor" means:

 

(1) Any bank as defined in section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Act; any insurance company as defined in section 2(a)(13) of the Securities Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 30l(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by

a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

(2) Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

 

(3) Any organization described in section 50l(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

 

(4) Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

 

(5) Any natural person whose individual net worth, or joint net worth with that person's spouse, exceeds $1,000,000.

 

(i) Except as provided in paragraph (a)(5)(ii) of this exhibit, for purposes of calculating net worth under this paragraph (a)(5):

 

(A)The person's primary residence shall not be included as an asset;

 

(B) Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and

 

(C) Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability;

 

23

(6) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

 

(7)Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Section 506(b)(2)(ii) of Regulation Das promulgated under the Securities Act; and

 

(8) Any entity in which all of the equity owners are accredited investor.

EXHIBIT E 

(Form of Warrant)

WARRANT

THEWARRANT EVIDENCED OR CONSTITUTED HEREBY, AND ALL SHARES OF COMMON STOCK DELIVERABLE UPON EXERCISE HEREUNDER, HAVE BEEN AND WILL BE ISSUED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("THE ACT") AND MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT REGISTRATION UNDER THE ACT UNLESS EITHER (A) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH SUCH DISPOSITION OR (B) THE SALE OF SUCH SECURITIES IS MADE PURSUANT TO SECURITIES AND EXCHANGE COMMISSION RULE 144.

No____________    Shares _____________________ 

WARRANT TO PURCHASE COMMON STOCK OF

PREDICTIVE TECHNOLOGY GROUP, INC.

Shares_______________

 

(Subject to Adjustment)

THIS CERTIFIES THAT, for value received,("Holder"), is entitled, subject to the terms and conditions of this Wan-ant, at any time or from time to time after the date hereof (the "Effective Date"), to purchase up to  shares of common stock, par value$ per share (the "Common Stock"), from Predictive Technology Group, Inc., acorporation (the "Company"), at an exercise price per share equal to$(the "Purchase Price"). This Wan-ant shall expire at 5:00 p.m. mountain time on (the "Expiration Date"). Both the number of shares of Common Stock purchasable upon exercise of this Wan-ant (the "Wan-ant Shares") and the Purchase Price are subject to adjustment and change as provided herein.

24

 

1. CERTAIN DEFINITIONS. As used in this Warrant the following terms shall have the following respective meanings:

1.1 "1933 Act" shall mean the Securities Act of 1933, as amended.

1.2 "Common Stock" shall mean the Common Stock of the Company and any other securities at any time receivable or issuable upon exercise of this Warrant.

 

 

1.3 "Fair Market Value" or "FMV" of a share of Common Stock as of a particular date shall mean:

 

 

i. If traded on a securities exchange, the Nasdaq National Market or the Nasdaq Small Cap Market, the Fair Market Value shall be deemed to be the average of the closing prices of the Common Stock of the Company on such exchange or market over the five(5) business days ending immediately prior to the applicable date of valuation;

 

ii. If actively traded over-the-counter, the Fair Market Value shall be deemed to be the average of the closing bid prices over the 14-day period ending immediately prior to the applicable date of valuation; and

 

iii. If there is no active public market, the Fair Market Value shall be the value as determined in good faith by the Company's Board of Directors upon a review of relevant factors, including due consideration of the Registered Holders' determination of the value of the Company.

 

1.4"SEC" shall mean the Securities and Exchange Commission.

 

2. EXERCISE OF WARRANT

 

2.1 Payment. Subject to compliance with the terms and conditions of this Warrant and applicable securities laws, this Warrant may be exercised, in whole or in part at any time or from time to time, on or before the Expiration Date by the delivery (including, without limitation, delivery by facsimile) of the form of Notice of Exercise attached hereto as Exhibit 1 (the "Notice of Exercise"), duly executed by the Holder, at the address of the Company as set forth herein, and as soon as practicable after such date, a.surrendering this Warrant at the address of the Company, and either

a  .providing payment, by check or by wire transfer, of an amount equal to the product obtained by multiplying the number of shares of Common Stock being purchased upon such exercise by the then effective Purchase Price (the "Exercise Amount"), or

b. electing, by written notice to the Company on the Notice of Exercise duly executed by the Holder, to receive a number of Warrant Shares, determined in accordance with the formula set forth below (the "Election"), in which event the Company shall issue to the Holder a number of Warrant Shares computed using the following formula: X=Y(A-B)

 

Where:

 

 X =The number of Warrant Shares to be issued to the Holder upon an Election.

 

 Y =The number of Warrant Shares in respect of which this Warrant is being exercised as adjusted to the date of the Election.

 

 A =The FMV of one Warrant Share on the date that the relevant Notice of Exercise is  received by the Company

 

 B = The Purchase Price (as adjusted to the date of the Election) in accordance with Section 4 hereof.

25

2.2 Common Stock Certificates; Fractional Shares. As soon as practicable on or after the date of an exercise of this Warrant, the Company shall deliver to the person or persons entitled to receive the same a certificate or certificates for the number of whole shares of Common Stock issuable upon such exercise. No fractional shares or scrip representing fractional shares of Common Stock shall be issued upon an exercise of this Warrant.

2.3 Partial Exercise: Effective Date of Exercise. In case of any partial exercise of this Warrant, the Holder and the Company shall cancel this Warrant upon surrender hereof and shall execute and deliver a new Warrant of like tenor and date for the balance of the shares of Common Stock purchasable hereunder. This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided above. The Company acknowledges that the person entitled to receive the shares of Common Stock issuable upon exercise of this Warrant shall be treated for all purposes as the holder of record of such shares as of the close of business on the date the Holder is deemed to have exercised this Warrant.

 

3. TAXES. The Company shall pay all taxes and other governmental charges that may be imposed in respect of the delivery of shares upon exercise of this Warrant; provided, however, that the Company shall not be required to pay any tax or other charge imposed in connection with any transfer involved in the delivery of any certificate for shares of Common Stock in any name other than that of the Holder of this Warrant, and in such case the Company shall not be required to deliver any stock certificate until such tax or other charge has been paid, or it has been established to the Company's reasonable satisfaction that no tax or other charge is due.

 

4. ADJUSTMENT OF PURCHASE PRICE AND NUMBER OF COMMON STOCK. The number of shares of Common Stock deliverable upon exercise of this Warrant (or any shares of stock or other securities or property receivable upon exercise of this Warrant) and the Purchase Price are subject to adjustment upon occurrence of the following:

 

4.1 Adjustment for Stock Splits, Stock Subdivisions or Combinations of Shares of Common Stock. The Purchase Price of this Warrant shall be proportionally decreased and the number of shares of Common Stock deliverable upon exercise of this Warrant (or any shares of stock or other securities at the time deliverable upon exercise of this Warrant) shall be proportionally increased to reflect any stock split or subdivision of the Company's Common Stock. The Purchase Price of this Warrant shall be proportionally increased and the number of shares of Common Stock deliverable upon exercise of this Warrant (or any shares of stock or other securities at the time deliverable upon exercise of this Warrant) shall be proportionally decreased to reflect any combination of the Company's Common Stock.

 

4.2 Adjustment for Dividends or Distributions of Stock or Other Securities or Property. In case the Company shall make or issue, or shall fix a record date for the determination of eligible holders entitled to receive, a dividend or other distribution with respect to the Common Stock (or any shares of stock or other securities at the time issuable upon exercise of the Warrant) payable in (a) securities of the Company or (b) assets (excluding cash dividends paid or payable solely out of retained earnings), then, in each such case, the Registered Holder of this Warrant on exercise hereof at any time after the consummation, effective date or record date of such dividend or other distribution, shall receive, in addition to the shares of Common Stock (or such other stock or securities) issuable on such exercise prior to such date, and without the payment of additional consideration therefor, the securities or such other assets of the Company to which such Holder would have been entitled upon such date if such Holder had exercised this Warrant immediately prior to such making, issuance or record date.

 

4.3 Reclassification, Conversion. If the Company, by reclassification or conversion of securities or otherwise, shall change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter represent the right to acquire such number and kind of securities as would have been issuable if this Warrant had been exercised immediately prior to such reclassification or conversion or other change and the Purchase Price therefore shall be appropriately adjusted, all subject to further adjustment as provided in this Section 4.

 

26

4.4 Adjustment for Capital Reorganization. Merger or Consolidation. In case of any capital reorganization of the capital stock of the Company (other than a combination, reclassification, exchange or subdivision of shares otherwise provided for herein), or any merger or consolidation of the Company with or into another corporation, or the sale of all or substantially all the assets of the Company then, and in each such case, as a part of such reorganization, merger, consolidation, sale or transfer, lawful provision shall be made so that the Holder of this Warrant shall thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon payment of the Purchase Price then in effect, the number of shares of stock or other securities or property of the successor corporation resulting from such reorganization, merger, consolidation, sale or transfer that a holder of the shares deliverable upon exercise of this Warrant would have been entitled to receive in such reorganization, consolidation, merger, sale or transfer if this Warrant had been exercised immediately before such reorganization, merger, consolidation, sale or transfer, all subject to further adjustment as provided in this Section 4. The foregoing provisions of this Section 4.4 shall similarly apply to successive reorganizations, consolidations, mergers, sales and transfers and to the stock or securities of any other corporation that are at the time receivable upon the exercise of this Warrant. If the per-share consideration payable to the Holder hereof for shares in connection with any such transaction is in a form other than cash or marketable securities, then the value of such consideration shall be determined in good faith by the Company's Board of Directors. In all events, appropriate adjustment (as determined in good faith by the Company's Board of Directors) shall be made in the application of the provisions of this Warrant with respect to the rights and interests of the Holder after the transaction, to the end that the provisions of this Warrant shall be applicable after that event, as near as reasonably may be, in relation to any shares or other property deliverable after that event upon exercise of this Warrant.

5. LOSS OR MUTILATION. Upon receipt of evidence reasonably satisfactory the Company of the ownership of and the loss, theft, destruction or mutilation of this Warrant, and of indemnity reasonably satisfactory to him, and (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will cause to be executed and delivered in lieu thereof a new Warrant of like tenor as the lost, stolen, destroyed or mutilated Warrant.

 

6. REPRESENTATION AND COVENANT. The Company hereby covenants that all shares issuable upon exercise of this Warrant, when delivered upon such exercise, shall be validly issued, fully paid and nonassessable and free and clear of all liens, security interests, charges and other encumbrances or restrictions on sale and free and clear of all preemptive rights, except encumbrances or restrictions arising under federal or state securities laws. Further, the Company hereby covenants to reserve such number of authorized but unissued shares of Common Stock as needed for issuance upon exercise of this Warrant.

 

7. TRANSFER. This Warrant may not be transferred by the Holder without the prior written consent of the Company, which consent may not be unreasonably withheld, unless such transfer is to (i) any principal, shareholder, director or officer of any such entity, (ii) to any spouse, ancestor, descendant of any person referred to in clause (i), or (iii) any trust established for the benefit of any person referred to in clause (i) or clause (ii), or (iv) any person or entity controlling, controlled by or under common control with Holder. In the event of a transfer to which the Company has previously consented in writing, this Warrant and all rights hereunder may be transferred by the Holder upon delivery of the form of Assignment attached hereto as Exhibit 2 (the "Assignment"), duly executed by the Holder, surrender of this Warrant properly endorsed at the address of the Company and payment of any necessary transfer tax or other governmental charge imposed upon such transfer. Upon any partial transfer, the Holder and Company will cause to be issued and delivered to the Holder a new Warrant or Warrants with respect to the portion of this Warrant not so transferred. Each taker and holder of this Warrant, by taking or holding the same, consents and agrees that when this Warrant shall have been so endorsed, the person in possession of this Warrant may be treated by the Company, and all other persons dealing with this Warrant, as the absolute owner hereof for any purpose and as the person entitled to exercise the rights represented hereby, any notice to the contrary notwithstanding; provided, however that until a transfer of this Warrant is duly registered on the books of the Company, the Company may treat the Holder hereof as the owner for all purposes.

 

27

8. RESTRICTIONS ON TRANSFER. The Holder, by acceptance hereof, agrees that, absent an effective registration statement filed with the SEC under the 1933 Act, covering the disposition or sale of this Warrant or the Common Stock issued or issuable upon exercise hereof or the Common Stock issuable upon conversion thereof, as the case may be, and registration or qualification under applicable state securities laws, such Holder will not sell, transfer, pledge, or hypothecate any or all such Warrants or Common Stock, as the case may be, unless either (i) the Company has received an opinion of counsel, in form and substance reasonably satisfactory to the Company, to the effect that such registration is not required in connection with such disposition or (ii) the sale of such securities is made pursuant to SEC Rule 144.

 

9. COMPLIANCE WITH SECURITIES LAWS. By acceptance of this Warrant, the Holder hereby represents, warrants and covenants that he/she/it is an "accredited investor" as that tenn is defined under Rule 501 of Regulation D, that any shares of stock purchased upon exercise of this Warrant or acquired upon conversion thereof shall be acquired for investment only and not with a view to, or for sale in connection with, any distribution thereof, that the Holder has had such opportunity as such Holder has deemed adequate to obtain from representatives of the Companysuch information as is necessary to permit the Holder to evaluate the merits and risks of its investment in the Company; that the Holder is able to bear the economic risk of holding such shares as may be acquired pursuant to the exercise of this Warrant for an indefinite period; that the Holder understands that the shares of stock acquired pursuant to the exercise of this Warrant or acquired upon conversion thereof will not be registered under the 1933 Act (unless otherwise required pursuant to exercise by the Holder of the registration rights, if any, previously granted to the Holder) and will be "restricted securities" within the meaning of Rule 144 under the 1933 Act and that the exemption from registration under Rule 144 will not be available for at least one year from the date of exercise of this Warrant, and even then will not be available unless a public market then exists for the stock, adequate information concerning the Company is then available to the public, and other terms and conditions of Rule 144 are complied with; and that all stock certificates representing shares of stock issued to the Holder upon exercise of this Warrant or upon conversion of such shares may have affixed thereto a legend substantially in the following form:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

10. NO RIGHTS OR LIABILITIES AS STOCKHOLDERS. This Warrant shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company. In the absence of affirmative action by such Holder to purchase Common Stock by exercise of this Warrant, no provisions of this Warrant, and no enumeration herein of the rights or privileges of the Holder hereof shall cause such Holder hereof to be a holder of the Company for any purpose. Nothing set forth 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 shareholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 11, the Company shall provide the Holder with copies of the same notices and other information given to the shareholders of the Company generally, contemporaneously with the giving thereof to the shareholders.

 

11. NOTICES. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, return receipt requested, or by telecopier, or by email or otherwise delivered by hand or by messenger, addressed or telecopied to the person to whom such notice or communication is being given at its address set forth after its signature hereto. In order to be effective, a copy of any notice or communication sent by telecopier or email must be sent by registered or certified mail, postage prepaid, return receipt requested, or delivered personally to the person to whom such notice or communication is being at its address set forth after its signature hereto. If notice is provided by mail, notice shall be deemed to be given five (5) business days after proper deposit with the United States mail or nationally recognized overnight courier, or immediately upon personally delivery thereof, to person to whom such notice or communication is being at such address. If notice is provided by telecopier, notice shall be deemed to be given upon confirmation by the telecopier machine of the receipt of such notice at the telecopier number provided above. If notice is provided by email, notice shall be deemed to be given upon confirmation by the sender's email program of the receipt of such notice at the email address provided after the signature of the person to whom such notice or communication is being. The addresses set forth after the signatures hereto may be changed by written notice complying with the terms of this Section 12.

12. HEADINGS. The headings in this Warrant are for purposes of convenience in reference only, and shall not be deemed to constitute a part hereof.

28

13. LAW GOVERNING. This Warrant shall be construed and enforced in accordance with, and governed by, the laws of the internal laws of the State of Nevada, without giving effect to the principles of conflicts of law.

 

14. NOTICES OF RECORD DATE. In case:

 

i. the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time receivable upon the exercise of this Warrant), for the purpose of entitling them to receive any dividend or other distribution, or any right to subscribe for or purchase any shares of stock of any class or any other securities or to receive any other right; or

 

ii. of any consolidation or merger of the Company with or into another corporation, any capital reorganization of the Company, any reclassification of the capital stock of the Company, or any conveyance of all or substantially all of the assets of the Company to another corporation in which holders of the Company's stock are to receive stock, securities or property of another corporation; or

 

iii. of any voluntary or involuntary dissolution, liquidation or winding-up of the Company; or

 

iv. of any redemption of any outstanding capital stock of the Company; then, and in each such case, the Company will mail or cause to be mailed to the Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right and the amount and character of any such dividend, distribution or right, or (ii) the date on which such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation, winding-up, redemption or conversion is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such stock or securities as at the time are receivable upon the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such notice shall be delivered at least thirty (30) days prior to the date therein specified.

 

15. SEVERABILITY. If any term, provision, covenant or restriction of this Warrant is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Warrant shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

16. COUNTERPARTS. For the convenience of the parties, any number of counterparts of this Warrant may be executed by the parties hereto and each such executed counterpart shall be, and shall be deemed to be, an original instrument.

17. SATURDAYS, SUNDAYS AND HOLIDAYS. If the Expiration Date falls on a Saturday, Sunday or legal holiday, the Expiration Date shall automatically be extended until 5:00 p.m. on the next business day.

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized officer.

PREDICTIVE TECHNOLOGY GROUP, INC.

By: /s/ Bradley C Robinson

Title:President and CEO

 

Address for Notices:

2735 East Parleys Way, Suite 205 Salt Lake City, Utah 84109

 

29

SIGNATURE PAGE TO WARRANT

EXHIBIT 1

NOTICE OF EXERCISE

(To be executed upon exercise of Warrant)

WARRANT NO.

The undersigned hereby irrevocably elects to exercise the right of purchase represented by the within Warrant Certificate for, and to purchase thereunder, securities of Predictive Technology Group, Inc., Inc., as provided for therein, and (check the applicable box):

1 .Tenders herewith payment of the exercise price in full in the form of cash or a certified or official bank check in same-day funds in the amount of $ for such securities.

2. Pursuant to the cashless exercise feature set forth in Section 2.1(c).

Please issue a certificate or certificates for such securities in the name of, and pay any cash for any fractional share to (please print name, address and social security number):

 Name:

 

Address:

Signature:   

 

Note: The above signature should correspond exactly with the name on the first page of this Warrant Certificate or with the name of the assignee appearing in the assignment form below.

If said number of shares shall not be all the shares purchasable under the within Warrant Certificate, a new Warrant Certificate is to be issued in the name of said undersigned for the balance remaining of the shares purchasable thereunder rounded up to the next higher whole number of shares.

30

EXHIBIT 2

 ASSIGNMENT

(To be executed only upon assignment of Warrant Certificate)

WARRANT NO.-

For value received, hereby sells, assigns and transfers unto the within Warrant Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint   attorney, to transfer said Warrant Certificate on the books of the within-named Company with respect to the number of Warrants set forth below, with full power of substitution in the premises:

Name(s) of Assignee(s)

Address

# of Warrants

And if said number of Warrants shall not be all the Warrants represented by the Warrant Certificate, a new Warrant Certificate is to be issued in the name of said undersigned for the balance remaining of the Warrants registered by said Warrant Certificate.

Dated:                        , 20   

Signature: 

 

Notice: The signature to the foregoing Assignment must correspond to the name as written upon the face of this security in every particular, without alteration or any change whatsoever; signature(s) must be guaranteed by an eligible guarantor institution (banks, stock brokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program) pursuant to applicable rules promulgated by the SEC.

30Exhibit 10.5 

 

 

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE AGREEMENT, is effective as of August 22, 2018, is made by and among Predictive Technology Group, Inc. (“Acquiror Company”), a Nevada corporation, and each of the Persons listed on Exhibit A hereto.  

W I T N E S S E T H: 

WHEREAS, the Members have agreed to transfer to Acquiror Company, and Acquiror Company has agreed to acquire from the Members, 100% of the outstanding Membership Interests of Inception DX, LLC, a Utah limited liability company (the “Company”), in exchange for 15,500,000 shares of the Acquiror Company’s Common Stock to be issued on the Closing Date on the terms and conditions set forth herein; and 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, intending to be legally bound, the parties hereto hereby agree as follows: 

SECTION I

DEFINITIONS

Unless the context otherwise requires, the terms defined in this Section 1 will have the meanings herein specified for all purposes of this Agreement, applicable to both the singular and plural forms of any of the terms herein defined.

1.1

“Accredited Investor” has the meaning set forth in Regulation D under the Securities Act and as set forth in Exhibit C hereto.

1.2

“Acquiror Company Board” means the Board of Directors of the Acquiror Company.

1.3

“Acquiror Company Common Stock” means the Acquiror Company’s common stock, par value US $.001 per share.

1.4

 “Acquiror Company Shares” means the Acquiror Company Common Stock being issued to the Members pursuant hereto.

1.5

“Affiliate” means any Person that directly or indirectly controls, is controlled by or is under common control with the indicated Person.

1.6

“Agreement” means this Securities Purchase Agreement, including all Schedules and Exhibits hereto, as this Securities Purchase Agreement may be from time to time amended, modified or supplemented.

1.7

“Closing Date” has the meaning set forth in Section 2.4.

1.8

“Code” means the Internal Revenue Code of 1986, as amended.

1

 

1.9

“Company” has the meaning set forth in the first Recital of the Agreement.

1.10

“Company Units” means the fractional and proportional economic interest in the Company acquired by a Member representing the economic rights of a Member to share in distributions of cash and other property from the Company pursuant to the Utah Revised Uniform Limited Liability Company Act and this Agreement, together with the Member’s distributive share of the Company’s profits and losses. 

1.11

 “Commission” means the Securities and Exchange Commission or any other federal agency then administering the Securities Act.

1.12

“Company Balance Sheet” means the Company’s consolidated balance sheet at June 30, 2018.

1.13

“Company Board” means the Board of Managers of the Company.

1.14

“Company Subsidiaries” means all of the direct and indirect Subsidiaries of the Company. 

1.15

“Due Diligence Documents” shall mean the documents referenced in Section 2.5 hereto.

1.16

[Section Reserved]

1.17

“Environmental Laws” means any Law or other requirement relating to the environment, natural resources, or public or employee health and safety.

1.18

“Environmental Permit” means all licenses, permits, authorizations, approvals, franchises and rights required under any applicable Environmental Law or Order.

1.19

“Equity Security” means any stock or similar security, including, without limitation, securities containing equity features and securities containing profit participation features, or any security convertible into or exchangeable for, with or without consideration, any stock or similar security, or any security carrying any warrant, right or option to subscribe to or purchase any shares of capital stock, or any such warrant or right.

1.20

“Exchange” has the meaning set forth in Section 2.1.

1.21

“Exchange Act” means the Securities Exchange Act of 1934 or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the same will then be in effect.

1.22

“Exhibits” means the several exhibits referred to and identified in this Agreement.

1.23

“GAAP” means, with respect to any Person, United States generally accepted accounting principles applied on a consistent basis with such Person’s past practices.

1.24

“Governmental Authority” means any federal or national, state or provincial, municipal or local government, governmental authority, regulatory or administrative agency, governmental 

2

commission, department, board, bureau, agency or instrumentality, political subdivision, commission, court, tribunal, official, arbitrator or arbitral body, in each case whether U.S. or non-U.S.

1.25

 “Indebtedness” means any obligation, contingent or otherwise. Any obligation secured by a Lien on, or payable out of the proceeds of, or production from, property of the relevant party will be deemed to be Indebtedness.

1.26

“Intellectual Property” means all industrial and intellectual property, including, without limitation, all U.S. and non-U.S. patents, patent applications, patent rights, trademarks, trademark applications, common law trademarks, Internet domain names, trade names, service marks, service mark applications, common law service marks, and the goodwill associated therewith, copyrights, in both published and unpublished works, whether registered or unregistered, copyright applications, franchises, licenses, know-how, trade secrets, technical data, designs, customer lists, confidential and proprietary information, processes and formulae, all computer software programs or applications, layouts, inventions, development tools and all documentation and media constituting, describing or relating to the above, including manuals, memoranda, and records, whether such intellectual property has been created, applied for or obtained anywhere throughout the world.

1.27

“Laws” means, with respect to any Person, any U.S. or non-U.S. federal, national, state, provincial, local, municipal, international, multinational or other law (including common law), constitution, statute, code, ordinance, rule, regulation or treaty applicable to such Person.

1.28

“Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind, including, without limitation, any conditional sale or other title retention agreement, any lease in the nature thereof and the filing of or agreement to give any financing statement under the Uniform Commercial Code of any jurisdiction and including any lien or charge arising by Law.

1.29

“Material Acquiror Company Contract” means any and all agreements, contracts, arrangements, leases, commitments or otherwise, of the Acquiror Company, of the type and nature that the Acquiror Company is required to file with the Commission.

1.30

“Material Adverse Effect” means, when used with respect to the Acquiror Company, any change, effect or circumstance which, individually or in the aggregate, would reasonably be expected to (a) have a material adverse effect on the business, assets, financial condition or results of operations of the Acquiror Company, in each case taken as a whole or (b) materially impair the ability of the Acquiror Company or the Company, as the case may be, to perform their obligations under this Agreement, excluding any change, effect or circumstance resulting from (i) the announcement, pendency or consummation of the transactions contemplated by this Agreement, (ii) changes in the United States securities markets generally, or (iii) changes in general economic, currency exchange rate, political or regulatory conditions in industries in which the Acquiror Company operates.

3

1.31

“Material Company Contract” means any and all agreements, contracts, arrangements, leases, commitments or otherwise, of the Company, of the type that the Acquiror Company will be required to file with the Commission following the consummation of the Share Exchange.

1.32

 “Order” means any award, decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any Governmental Authority.

1.33

“Organizational Documents” means the articles or certificate of incorporation and operating agreement a limited liability company and any other document performing a similar function adopted or filed in connection with the creation, formation or organization of a Person; and any and all amendments to any of the foregoing.

1.34

“Permitted Liens” means (a) Liens for Taxes not yet payable or in respect of which the validity thereof is being contested in good faith by appropriate proceedings and for the payment of which the relevant party has made adequate reserves; (b) Liens in respect of pledges or deposits under workmen’s compensation laws or similar legislation, carriers, warehousemen, mechanics, laborers and materialmen and similar Liens, if the obligations secured by such Liens are not then delinquent or are being contested in good faith by appropriate proceedings conducted and for the payment of which the relevant party has made adequate reserves; and (c) statutory Liens incidental to the conduct of the business of the relevant party which were not incurred in connection with the borrowing of money or the obtaining of advances or credits and that do not in the aggregate materially detract from the value of its property or materially impair the use thereof in the operation of its business. 

1.35

“Person” shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization, Governmental Authority or other entity of any kind or nature.

1.36

 “Proceeding” means any action, arbitration, audit, hearing, investigation, litigation, or suit (whether civil, criminal, administrative or investigative) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Authority.

1.37

 “Regulation D” means Regulation D under the Securities Act, as the same may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission.

1.38

“Schedules” means the several schedules referred to and identified herein, setting forth certain disclosures, exceptions and other information, data and documents referred to at various places throughout this Agreement.

1.39

“SEC Documents” has the meaning set forth in Section 5.20.

1.40

“Section 4(a)(2)” means Section 4(a)(2) under the Securities Act, as the same may be amended from time to time, or any successor statute.

1.41

“Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the same will be in effect at the time.

4

1.42

“Members” and individually, a “Member”, means the Persons listed on Exhibit A hereto.

1.43

“Taxes” means all foreign, federal, state or local taxes, charges, fees, levies, imposts, duties and other assessments, as applicable, including, but not limited to, any income, alternative minimum or add-on, estimated, gross income, gross receipts, sales, use, transfer, transactions, intangibles, ad valorem, value-added, franchise, registration, title, license, capital, paid-up capital, profits, withholding, payroll, employment, unemployment, excise, severance, stamp, occupation, premium, real property, recording, personal property, federal highway use, commercial rent, environmental (including, but not limited to, taxes under Section 59A of the Code) or windfall profit tax, custom, duty or other tax, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest, penalties or additions to tax with respect to any of the foregoing; and “Tax” means any of the foregoing Taxes.

1.44

“Tax Group” means any federal, state, local or foreign consolidated, affiliated, combined, unitary or other similar group of which the Acquiror Company is now or was formerly a member.

1.45

“Tax Return” means any return, declaration, report, claim for refund or credit, information return, statement or other similar document filed with any Governmental Authority with respect to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

1.46

“Transaction Documents” means, collectively, all agreements, instruments and other documents to be executed and delivered in connection with the transactions contemplated by this Agreement.

1.47

“U.S.” means the United States of America.

SECTION II

EXCHANGE OF SECURITIES AND CONSIDERATION

2.1

Securities Exchange. At the Closing, each Member shall transfer to the Acquiror Company the number of Company Units set out forth on the form attached hereto as Exhibit B, and, in consideration therefor, and subject to Section 2.2 hereof, Acquiror Company shall issue to such Member the number of shares of Acquiror Company Common Stock so set forth in Exhibit B (the “Exchange”). The total shares of Acquiror Company Common Stock to be issued to the Members shall be FIFTEEN MILLION FIVE HUNDRED THOUSAND SHARES (15,500,000). 

2.2

Withholding. The Acquiror Company shall be entitled to deduct and withhold from the number of Acquiror Company Shares otherwise payable pursuant to this Agreement to any Member such amounts as it is required to deduct and withhold with respect to the making of such payment under the Code or any provision of state, local, provincial or foreign tax Law. To the extent that amounts are so withheld, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Member in respect of which such deduction and withholding was made. 

5

2.3

Closing Date. The closing of the Exchange will occur on or before August 20, 2018, at such date as all of the closing conditions set forth in Sections VII and VIII have been satisfied or waived (the “Closing Date”). 

2.4

Due Diligence Period; Termination.  The Members must have provided provide Acquiror Company with such due diligence documents as relating to Company as the Acquiror Company may reasonably request. The Acquiror Company has had adequate time to review the Due Diligence Documents. The Acquiror Company is satisfied with and approves  all aspects of the Due Diligence Documents.  

SECTION III

REPRESENTATIONS AND WARRANTIES REGARDING MEMBERS

3.1

Generally. Each Member, severally and not jointly, hereby represents and warrants to the Acquiror Company as of the date hereof and as of the Closing Date: 

3.1.1   Authority. Such Member has the right, power, authority and capacity to execute and deliver this Agreement and each of the Transaction Documents to which such Member is a party, to consummate the transactions contemplated by this Agreement and each of the Transaction Documents to which such Member is a party, and to perform such Member’s obligations under this Agreement and each of the Transaction Documents to which such Member is a party. This Agreement has been, and each of the Transaction Documents to which such Member is a party will be, duly and validly authorized and approved, executed and delivered by such Member. Assuming this Agreement and the Transaction Documents have been duly and validly authorized, executed and delivered by the parties thereto other than such Member, this Agreement is, and each of the Transaction Documents to which such Member is a party have been, duly authorized, executed and delivered by such Member and constitutes the legal, valid and binding obligation of such Member, enforceable against such Member in accordance with their respective terms, except as such enforcement is limited by general equitable principles, or by bankruptcy, insolvency and other similar Laws affecting the enforcement of creditors rights generally.

3.1.2   No Conflict. Neither the execution or delivery by such Member of this Agreement or any Transaction Document to which such Member is a party, nor the consummation or performance by such Member of the transactions contemplated hereby or thereby will, directly or indirectly, (a) contravene, conflict with, or result in a violation of any provision of the Organization Documents of such Member (if such Member is not a natural person); (b) contravene, conflict with, constitute a default (or an event or condition which, with notice or lapse of time or both, would constitute a default) under, or result in the termination or acceleration of, any agreement or instrument to which such Member is a party or by which the properties or assets of such Member are bound; or (c) contravene, conflict with, or result in a violation of, any Law or Order to which such Member, or any of the properties or assets of such Member, may be subject.

3.1.3   Ownership of Company Units. Such Member owns, of record and beneficially, and has good, valid and indefeasible title to and the right to transfer to the Acquiror Company pursuant to this Agreement, such Member’s Company Units free and clear of any and all Liens. 

6

There are no options, rights, voting trusts, stockholder agreements or any other contracts or understandings to which such Member is a party or by which such Member or such Member’s Company Units are bound with respect to the issuance, sale, transfer, voting or registration of such Member’s Company Units. At the Closing Date, the Acquiror Company will acquire good, valid and marketable title to such Member’s Company Units free and clear of any and all Liens, and upon the entry of the Acquiror Company into the register of members of the Company, the Acquiror Company shall have acquired good, valid and marketable title to such Member’s Company Units free and clear of any and all Liens. 

3.1.4   Litigation. There is no pending Proceeding against such Member that challenges, or may have the effect of preventing, delaying or making illegal, or otherwise interfering with, any of the transactions contemplated by this Agreement and, to the knowledge of such Member, no such Proceeding has been threatened, and no event or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement of any such Proceeding.

3.1.5   No Brokers or Finders. No Person has, or as a result of the transactions contemplated herein will have, any right or valid claim against such Member for any commission, fee or other compensation as a finder or broker, or in any similar capacity, and such Member will indemnify and hold the Acquiror Company harmless against any liability or expense arising out of, or in connection with, any such claim.

3.2

Investment Representations. Each Member, severally and not jointly, hereby represents and warrants to the Acquiror Company:

3.2.1   Acknowledgment. Each Member understands and agrees that the Acquiror Company Shares to be issued pursuant to has not been registered under the Securities Act or the securities laws of any state of the U.S. and that the issuance of the Acquiror Company Shares is being effected in reliance upon an exemption from registration afforded under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D. 

3.2.2   Status. That such Member is an Accredited Investor. Each Member severally understands that the Acquiror Company Shares are being offered and sold to such Member in reliance upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of such Member set forth in this Agreement, in order that the Acquiror Company may determine the applicability and availability of the exemptions from registration of the Acquiror Company Shares on which the Acquiror Company is relying.

3.2.3   Additional Representations and Warranties of Accredited Investors. Each Member, severally and not jointly, further makes the representations and warranties to the Acquiror Company set forth on Exhibit D.

3.2.4   Stock Legends. Each Member hereby agrees with the Acquiror Company as follows:

(a)

Securities Act Legend - Accredited Investors. The certificates evidencing the Acquiror Company Shares issued to those Members, and each certificate issued in transfer thereof, will bear the following legend:

7

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, IN WHICH CASE THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE COMPANY AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.

(b)

Other Legends. The certificates representing such Acquiror Company Shares, and each certificate issued in transfer thereof, will also bear any other legend required under any applicable Law, including, without limitation, any U.S. state corporate and state securities law, or contract.

(c)

Opinion. No Member will transfer any or all of the Acquiror Company absent an effective registration statement under the Securities Act and applicable state securities law covering the disposition of such Member’s Acquiror Company Shares, without first providing the Acquiror Company with an opinion of counsel (which counsel and opinion are reasonably satisfactory to the Acquiror Company) to the effect that such transfer will be exempt from the registration and the prospectus delivery requirements of the Securities Act and the registration or qualification requirements of any applicable U.S. state securities laws.

(d)

Consent. Each Member understands and acknowledges that the Acquiror Company may refuse to transfer the Acquiror Company Shares, unless such Member complies with this Section 3.2.4 and any other restrictions on transferability set forth in Exhibit D. Each Member consents to the Acquiror Company making a notation on its records or giving instructions to any transfer agent of the Acquiror Company’s Common Stock in order to implement the restrictions on transfer of the Acquiror Company Shares.

SECTION IV

REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY

Each Member, severally and not jointly, represents and warrants to the Acquiror Company as of the date hereof and as of the Closing Date as follows:

4.1

Organization and Qualification. The Company is duly incorporated and validly existing under the laws of the State of Utah, has all requisite authority and power (corporate and other), governmental licenses, authorizations, consents and approvals to carry on its business as presently conducted and as contemplated to be conducted, to own, hold and operate its properties and assets as now owned, held and operated by it, to enter into this Agreement, to carry out the provisions hereof, except where the failure to be so organized, existing and in good standing or to have such authority or power will not, in the aggregate, cause a Material Adverse Effect. The Company is duly qualified, licensed or domesticated as a foreign corporation in good standing in each jurisdiction wherein the nature of its activities or its properties owned or leased makes such qualification, licensing or domestication necessary, except where the failure to be so qualified, licensed or domesticated will not have a Material Adverse Effect. 

8

 

4.2

Material Assets. The financial statements of the Company provided to Acquiror Company set forth the material properties and assets (real and personal) owned or leased by the Company. A list of all assets of the Company is attached as Exhibit E. The Company has good and marketable title to all of the assets identified in Exhibit E, free and clear of all title defects, liens, restrictions, claims, charges, security interests, or other encumbrances of any nature whatsoever, including any mortgages, leases, chattel mortgages, conditional sales contracts, collateral security arrangements, or other title or interest retention arrangements. 

4.3

Organizational Documents. True, correct and complete copies of the Organizational Documents of the Company and three amendments have been delivered to the Acquiror Company prior to the execution of this Agreement, and no action has been taken to further amend or repeal such Organizational Documents. The Company is not in violation or breach of any of the provisions of its Organizational Documents, except for such violations or breaches as would not have a Material Adverse Effect. 

4.4

Authorization and Validity of this Agreement. The recording of the transfer of the Company Units and the delivery of new certificates representing the Company Units registered in the name of Acquiror Company are within the Company’s corporate powers, have been duly authorized by all necessary corporate action, do not require from the Board or Members of the Company any consent or approval that has not been validly and lawfully obtained, require no authorization, consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality of government that has not been validly and lawfully obtained, filed or registered, as the case may be, except for those that, if not obtained or made would not have a Material Adverse Effect.

4.5

No Violation. None of the execution, delivery or performance by the Company of any Transaction Document to which the Company is a party, nor the consummation by the Company of the transactions contemplated hereby violates any provision of its Organizational Documents, or violates or conflicts with, or constitute a default (or an event or condition which, with notice or lapse of time or both, would constitute a default) under, or result in the termination or acceleration of, or result in the creation of imposition of any material Lien under, any material agreement or instrument to which the Company is a party or by which the Company is or will be bound or subject, or violate any laws. 

4.6

Binding Obligations. Assuming each such agreement and instrument has been duly and validly authorized, executed and delivered by the other Parties thereto, all agreements or instruments contemplated hereby to which the Company is a party, have been duly authorized, executed and delivered by the Company and are the legal, valid and binding Agreement of the Company and is enforceable against the Company in accordance with its terms, except as such enforcement is limited by general equitable principles, or by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors rights generally.

9

 

4.7

Securities Laws. Assuming the accuracy of the representations and warranties of the Members contained in Section III and Exhibit D, neither the Company nor the Members have any reason to believe that the issuance of the Acquiror Company Shares pursuant to this Agreement is not exempt from the registration and prospectus delivery requirements of the Securities Act.

4.8

Capitalization and Related Matters.

4.8.1   Capitalization. The issued membership interests of the Company consists of ten million fully paid Units. There are no outstanding or authorized options, warrants, calls, subscriptions, rights (including any preemptive rights or rights of first refusal), agreements or commitments of any character obligating the Company to issue any preferred equity or any other equity ownership of the Company. All issued and outstanding Company Units are duly authorized, validly issued, fully paid and nonassessable and have not been issued in violation of any preemptive or similar rights.

4.8.2   No Redemption Requirements. There are no outstanding contractual obligations (contingent or otherwise) of the Company to retire, repurchase, redeem or otherwise acquire any outstanding Company Units or other equity of, or other ownership interests in, the Company or to provide funds to or make any investment (in the form of a loan, capital contribution or otherwise) in any other entity.

4.8.3   Duly Authorized. The issuance of the Company Units has been duly authorized, and the Company Units have been validly issued and are fully paid and nonassessable. 

4.9

Members. Exhibit A contains a true and complete list of the names and addresses of the record and beneficial holders of all of the outstanding membership interests. Except as expressly provided in this Agreement or as set forth on a Schedule hereto, no holder of Company Units or any other security of the Company or any other Person is entitled to any preemptive right, right of first refusal or similar right as a result of the issuance of the Company Units or otherwise. There is no voting trust, agreement or arrangement among any of the Members of any capital stock of the Company affecting the exercise of the voting rights of any such capital stock. 

4.10

Compliance with Laws and Other Instruments. Except as would not have a Material Adverse Effect, the business and operations of the Company have been and are being conducted in accordance with all applicable foreign, federal, state and local laws, rules and regulations and all applicable orders, injunctions, decrees, writs, judgments, determinations and awards of all courts and governmental agencies and instrumentalities. Except as would not have a Material Adverse Effect, the Company is not, or is alleged to be, in violation of, or (with or without notice or lapse of time or both) in default under, or in breach of, any term or provision of its Organizational Documents or of any indenture, loan or credit agreement, note, deed of trust, mortgage, security agreement or other material agreement, lease, license or other instrument, commitment, 

10

obligation or arrangement to which the Company is a party or by which the Company’s properties, assets or rights are bound or affected. To the knowledge of the Members, no other party to any material contract, agreement, lease, license, commitment, instrument or other obligation to which the Company is a party is (with or without notice or lapse of time or both) in default thereunder or in breach of any term thereof. The Company is not subject to any obligation or restriction of any kind or character, nor is there, to the knowledge of the Members, any event or circumstance relating to the Company that materially and adversely affects in any way its business, properties, assets or prospects or that would prevent or make burdensome its performance of or compliance with all or any part of this Agreement or the consummation of the transactions contemplated hereby or thereby.

4.11

Certain Proceedings. There is no pending Proceeding that has been commenced against the Company and that challenges, or may have the effect of preventing, delaying, making illegal, or otherwise interfering with, any of the transactions contemplated in this Agreement. To the Members’ knowledge, no such Proceeding has been threatened.

4.12

No Brokers or Finders. No person has, or as a result of the transactions contemplated herein will have, any right or valid claim against the Company for any commission, fee or other compensation as a finder or broker, or in any similar capacity, and the Members will indemnify and hold the Acquiror Company harmless against any liability or expense arising out of, or in connection with, any such claim.

4.13

Absence of Undisclosed Liabilities. Except as set forth in the Transaction Documents, the Company does not have any material debt, obligation or liability (whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due, whether or not known to the Members) arising out of any transaction entered into at or prior to the Closing Date or any act or omission at or prior to the Closing Date, except to the extent set forth on or reserved against on the Company Balance Sheet, incurred in the ordinary course of business or incurred in connection with the transactions contemplated in the Transaction Documents. The Company Balance Sheet provides a true and fair view of the assets and liabilities (whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due, whether or not known to the Members) as at June 30, 2018, in all material respects. The Company has not changed its method of accounting or the accounting principles or practices used in preparation of the Company Balance Sheet.

4.14

 Changes. Except as set forth in the Transaction Documents, the Company has, since June 30:

4.14.1   Ordinary Course of Business. Conducted its business or entered into any transaction other than in the usual and ordinary course of business, except for the Transaction Documents. 

4.14.2   Adverse Changes. Suffered or experienced any change in, or affecting, its condition (financial or otherwise), properties, assets, liabilities, business, operations, results of operations or prospects other than changes, events or conditions in the usual and ordinary course of its business, none of which would have a Material Adverse Effect;

4.14.3   Loans. Made any loans or advances to any Person;

11

4.14.4   Liens. Created or permitted to exist any material Lien on any material property or asset of the Company, other than Permitted Liens;

4.14.5   Material Company Contracts. Terminated or modified any Material Company Contract, except for termination upon expiration in accordance with the terms thereof;

4.14.6   Claims. Released, waived or cancelled any claims or rights relating to or affecting the Company, except in the ordinary course of business or in connection with the Transaction Documents and the transactions contemplated thereby;

4.14.7   Discharged Liabilities. Paid, discharged or satisfied any claim, obligation or liability in excess of US $15,000 in the aggregate, except for liabilities incurred prior to the date of this Agreement in the ordinary course of business or in connection with the Transaction Documents and the transaction contemplated thereby;

4.14.8   Indebtedness. Created, incurred, assumed or otherwise become liable for any Indebtedness in excess of US $10,000 in the aggregate, except in the ordinary course of business or in connection with the Transaction Documents and the transactions contemplated thereby;

4.14.9   Guarantees. Guaranteed or endorsed any obligation or net worth of any Person;

4.14.10   Acquisitions. Acquired the capital stock or other securities or any ownership interest in, or any assets of, any other Person;

4.14.11   Agreements. Except as set forth in the Transaction Documents, entered into any agreement, or otherwise obligated itself, to do any of the foregoing.

4.15

Material Company Contracts. The Company has made available to the Acquiror Company, prior to the date of this Agreement, true, correct and complete copies of each written Material Company Contract, including each amendment, supplement and modification thereto. Each Material Company Contract is a valid and binding agreement of the Company that is party thereto, except as such enforcement is limited by general equitable principles, or by bankruptcy, insolvency and other similar Laws affecting the enforcement of creditors rights generally, and is in full force and effect. 

4.16

Tax Returns and Audits. 

4.16.1   Tax Returns. The Company has filed all Tax Returns required to be filed by or on behalf of the Company and has paid all Taxes that the Company is required to have been paid (whether or not reflected on any Tax Return). (a) no Governmental Authority in any jurisdiction has made a claim, assertion or threat to Company that the Company is or may be subject to taxation by such jurisdiction; (b) there are no Liens with respect to Taxes on the Company’s property or assets other than Permitted Liens; and (c) there are no Tax rulings, requests for rulings, or closing agreements relating to the Company for any period (or portion of a period) that would affect any period after the date hereof.

12

4.16.2   No Disputes. To the knowledge of the Members, there is no pending audit, examination, investigation, dispute, proceeding or claim with respect to any Taxes of the Company, nor is any such claim or dispute pending or contemplated. 

4.17

Material Assets. The financial statements of the Company provided to Acquiring Company set forth the material properties and assets (real and personal) owned or leased by the Company. 

4.18

Litigation; Orders. There is no Proceeding (whether federal, state, local or foreign) pending or, to the knowledge of the Members, threatened against or affecting the Company or the Company properties, assets, business or employees. To the knowledge of the Members, there is no fact that might result in or form the basis for any such Proceeding. The Company is not subject to any Orders.

4.19

Intellectual Property. 

4.19.1   To the knowledge of the Members, the Company has no intellectual property except for lab protocalls that were contrinbutred by Dr. Ken Ward (the “Company Intellectual Property”). The Company owns the Company Intellectual Property. No Company Intellectual Property was conceived or developed directly or indirectly with or pursuant to government funding or a government contract. To the knowledge of the Members, the Company Intellectual Property and the Company’s use of such Company Intellectual Property does not infringe or misappropriate any proprietary or intellectual property rights of any third party (“Infringement”). The Company has not received any communication alleging or suggesting that or questioning whether the Company has been or may be (whether in its current or proposed business or otherwise) engaged in, liable for or contributing to any Infringement.

4.19.2    There is, to the knowledge of the Members, no unauthorized Use, disclosure, infringement or misappropriation of any of the Company Intellectual Property by any third party, including any employee, former employee, contractor or former contractor of the Company. The Company has not indemnified any third party against infringement of any third party Intellectual Property rights.

4.19.3   The Company have taken commercially reasonable steps to protect and preserve the confidentiality of the Company’s trade secrets that are not otherwise disclosed in published patents or patent applications or registered copyrights (the “Company Confidential Information”). 

4.19.4   To the Members’ knowledge, the Company is not using without authorization or permission (i) any inventions of any of its past or present employees or past or present contractors made prior to or outside the scope of their employment by the Company or (ii) any confidential information or trade secrets of any former employer of any such person.

4.20

Stock Option Plans; Employee Benefits. 

4.20.1   The Company has no stock option plans providing for the grant by the Company of stock options to directors, officers or employees.

13

4.20.2   The Company has no employee benefit plans, defined compensation plans, or arrangements covering their present and former employees or providing benefits to such persons in respect of services provided the Company.

4.21

Environmental and Safety Matters. Except as would not have a Material Adverse Effect:

4.21.1   The Company has at all time been and is in compliance with all Environmental Laws applicable to such companies.

4.21.2   There are no Proceedings pending or threatened against the Company alleging the violation of any Environmental Law or Environmental Permit applicable to tbe Company or alleging that the Company is a potentially responsible party for any environmental site contamination.

4.22

Title to and Condition of Properties. The Company owns no real property, and holds under valid leases or other rights to use all real property, plants, machinery and equipment necessary for the conduct of the business of the Company as presently conducted, except where the failure to own or hold such property, plants, machinery and equipment would not have a Material Adverse Effect on the Company.

4.23

Due Diligence Documents. The Company has made available to the Acquiror Company, true, correct and complete copies of the Due Diligence Documents as they related to the Company, including each amendment, supplement and modification thereto. 

SECTION V

REPRESENTATIONS AND WARRANTIES OF THE ACQUIROR COMPANY 

The Acquiror Company represents and warrants to the Members and the Company as of the date hereof and as of the Closing Date as follows: 

5.1

Organization and Qualification. The Acquiror Company is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, has all requisite authority and power (corporate and other), governmental licenses, authorizations, consents and approvals to carry on its business as presently conducted and to own, hold and operate its properties and assets as now owned, held and operated by it, except where the failure to be so organized, existing and in good standing, or to have such authority and power, governmental licenses, authorizations, consents or approvals would not have a Material Adverse Effect. The Acquiror Company is duly qualified, licensed or domesticated as a foreign corporation in good standing in each jurisdiction wherein the nature of its activities or its properties owned, held or operated makes such qualification, licensing or domestication necessary, except where the failure to be so duly qualified, licensed or domesticated and in good standing would not have a Material Adverse Effect. 

5.2

Organizational Documents. True, correct and complete copies of the Organizational Documents of the Acquiror Company have been delivered to the Company prior to the execution of this Agreement, and no action has been taken to amend or repeal such Organizational Documents. The Acquiror Company is not in violation or breach of any of the provisions of its Organizational Documents. 

14

5.3

Authorization. The Acquiror Company has all requisite authority and power (corporate and other), governmental licenses, authorizations, consents and approvals to enter into this Agreement and each of the Transaction Documents to which the Acquiror Company is a party, to consummate the transactions contemplated by this Agreement and each of the Transaction Documents to which the Acquiror Company is a party and to perform its obligations under this Agreement and each of the Transaction Documents to which the Acquiror Company is a party. The execution, delivery and performance by the Acquiror Company of this Agreement and each of the Transaction Documents to which the Acquiror Company is a party have been duly authorized by all necessary corporate action and do not require from the Acquiror Company Board or the stockholders of the Acquiror Company any consent or approval that has not been validly and lawfully obtained. The execution, delivery and performance by the Acquiror Company of this Agreement and each of the Transaction Documents to which the Acquiror Company is a party requires no authorization, consent, approval, license, exemption of or filing or registration with any Governmental Authority or other Person, other than filings required by the Commission for transactions of the type contemplated by this Agreement. 

5.4

No Violation.  None of the execution, delivery or performance by the Acquiror Company of this Agreement or any Transaction Document to which the Acquiror Company is a party, nor the consummation by the Acquiror Company of the transactions contemplated hereby will (a) violate any provision of its Organizational Documents, (b) violate or conflict with, or constitute a default (or an event or condition which, with notice or lapse of time or both, would constitute a default) under, or result in the termination or acceleration of, or result in the creation of imposition of any material Lien under, any material agreement or instrument to which the Acquiror Company is a party or by which the Acquiror Company is or will be bound or subject, or violate any laws, (c) contravene, conflict with, or result in a violation of, any Law or Order to which the Acquiror Company, or any of the properties or assets owned or used by the Acquiror Company, may be subject; or (d) contravene, conflict with, or result in a violation of, the terms or requirements of, or give any Governmental Authority the right to revoke, withdraw, suspend, cancel, terminate or modify, any licenses, permits, authorizations, approvals, franchises or other rights held by the Acquiror Company or that otherwise relate to the business of, or any of the properties or assets owned or used by, the Acquiror Company, except, in the case of clause (b), (c), or (d), for any such contraventions, conflicts, violations, or other occurrences as would not have a Material Adverse Effect.

5.5

Binding Obligations. Assuming this Agreement and the Transaction Documents have been duly and validly authorized, executed and delivered by the parties thereto other than the Acquiror Company, this Agreement and each of the Transaction Documents to which the Acquiror Company is a party are duly authorized, executed and delivered by the Acquiror Company and constitutes the legal, valid and binding obligations of the Acquiror Company, enforceable against the Acquiror Company in accordance with their respective terms, except as such enforcement is limited by general equitable principles, or by bankruptcy, insolvency and other similar Laws affecting the enforcement of creditors rights generally.

5.6

Securities Laws. Assuming the accuracy of the representations and warranties of the Members contained in Section 3 and Exhibit D, and assuming further that no action has been taken by the Company or their representatives which would effect the availability of an exemption from registration under the Securities Act, the issuance of the Acquiror Company Shares pursuant to this Agreement is exempt from the registration and prospectus delivery requirements of the Securities Act. Further, Acquiror Company is an Accredited Investor. 

15

 

5.7

Capitalization and Related Matters.

5.7.1   Capitalization. The authorized capital stock of the Acquiror Company consists of 900,000,000 shares of Common Stock having a par value of $.001 per share and 10,000,000 shares of preferred stock having a par value of $.001per share. Immediately prior to the Closing, approximately 224,500,000 shares of Common Stock will be outstanding and no shars of preferred stock will be outstanding. All issued and outstanding shares of Acquiror Company Common Stock are duly authorized, validly issued, fully paid and nonassessable, and have not been issued in violation of any preemptive or similar rights. At the Closing Date, the Acquiror Company will have sufficient authorized and unissued Acquiror Company Common Stock to consummate the transactions contemplated hereby. 

5.7.2   No Redemption Requirements. Except as set forth in the SEC Documents, there are no outstanding contractual obligations (contingent or otherwise) of the Acquiror Company to retire, repurchase, redeem or otherwise acquire any outstanding shares of capital stock of, or other ownership interests in, the Acquiror Company or to provide funds to or make any investment (in the form of a loan, capital contribution or otherwise) in any other Person.

5.7.3   Duly Authorized. The issuance of the Acquiror Company Shares has been duly authorized and, upon issuance in accordance with the terms of this Agreement, the Acquiror Company Shares will have been validly issued and fully paid, and will be nonassessable, have the rights, preferences and privileges specified, will be free of preemptive rights and will be free and clear of all Liens and restrictions, other than Liens created by the Members and restrictions on transfer imposed by this Agreement and the Securities Act.

5.8

Compliance with Laws. Except as would not have a Material Adverse Effect, the business and operations of the Acquiror Company have been and are being conducted in accordance with all applicable Laws and Orders. The Acquiror Company has not received notice of any violation (or any Proceeding involving an allegation of any violation) of any applicable Law or Order by or affecting such Acquiror Company and, to the knowledge of the Acquiror Company, no Proceeding involving an allegation of violation of any applicable Law or Order is threatened or contemplated. The Acquiror Company is not subject to any obligation or restriction of any kind or character, nor is there, to the knowledge of the Acquiror Company, any event or circumstance relating to the Acquiror Company, that materially and adversely affects in any way its business, properties, assets or prospects or that prohibits the Acquiror Company from entering into this Agreement or would prevent or make burdensome its performance of or compliance with all or any part of this Agreement or the consummation of the transactions contemplated hereby. 

5.9

Certain Proceedings. There is no pending Proceeding that has been commenced against the Acquiror Company and that challenges, or may have the effect of preventing, delaying, making illegal, or otherwise interfering with, any of the transactions contemplated by this Agreement. To the knowledge of the Acquiror Company, no such Proceeding has been threatened.

16

5.10

No Brokers or Finders. No Person has, or as a result of the transactions contemplated herein will have, any right or valid claim against the Acquiror Company for any commission, fee or other compensation as a finder or broker, or in any similar capacity, and the Acquiror Company will indemnify and hold the Company harmless against any liability or expense arising out of, or in connection with, any such claim.

5.11

Absence of Undisclosed Liabilities. As of the date hereof, the Acquiror Company has no debt, obligation or liability (whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due, whether or not known to the Acquiror Company) (an “Acquiror Company Liability”) except those show in the SEC Documents. 

5.12

Changes. Except as set forth in the Transaction Documents, the Acquiror Company has not, since June 30, 2018:

5.12.1   Ordinary Course of Business. Conducted its business or entered into any transaction other than in the usual and ordinary course of business, except for the Transaction Documents;

5.12.2   Adverse Changes. Suffered or experienced any change in, or affecting, its condition (financial or otherwise), properties, assets, liabilities, business, operations, results of operations or prospects other than changes, events or conditions in the usual and ordinary course of its business, none of which would have a Material Adverse Effect;

5.12.3   Claims. Released, waived or cancelled any claims or rights relating to or affecting the Acquiror Company in excess of US $500,000 in the aggregate or instituted or settled any Proceeding involving in excess of US $500,000 in the aggregate, except in the ordinary course of business or in connection with the Transaction Documents;

5.12.4   Discharged Liabilities. Paid, discharged or satisfied any claim, obligation or liability in excess of US $500,000 in the aggregate, except for liabilities incurred prior to the date of this Agreement in the ordinary course of business or in connection with the Transaction Documents;

5.12.5   Indebtedness. Created, incurred, assumed or otherwise become liable for any Indebtedness in excess of US $500,000 in the aggregate, except in the ordinary course of business or in connection with the Transaction Documents;

5.12.6   Guarantees. Guaranteed or endorsed any obligation or net worth of any Person;

5.12.7   Accounting. Changed its method of accounting or the accounting principles or practices utilized in the preparation of its financial statements, other than as required by GAAP; or

5.12.8   Agreements. Except as set forth in the SEC Documents and the Transaction Documents, entered into any agreement, or otherwise obligated itself, to do any of the foregoing.

5.13

Material Acquiror Company Contracts. The Acquiror Company has made available to the Company, prior to the date of this Agreement, true, correct and complete copies of each written Material Acquiror 

17

Company Contract, including each amendment, supplement and modification thereto. Each Material Acquiror Company Contract is a valid and binding agreement of the Acquiror Company that is party thereto. Except as would not have a Material Adverse Effect, the Acquiror Company is not in breach or default of any Material Acquiror Company Contract to which it is a party and, to the knowledge of the Acquiror Company, no other party to any Material Acquiror Company Contract is in breach or default thereof. Except as such enforcement is limited by general equitable principles, or by bankruptcy, insolvency and other similar Laws affecting the enforcement of creditors rights generally, and is in full force and effect. 

5.14

Employees. No director, officer or employee of the Acquiror Company is a party to, or is otherwise bound by, any contract (including any confidentiality, noncompetition or proprietary rights agreement) with any other Person that in any way adversely affects or will materially affect (a) the performance of his or her duties as a director, officer or employee of the Acquiror Company or (b) the ability of the Acquiror Company to conduct its business. 

5.15

Tax Returns and Audits. 

5.15.1   Tax Returns. The Acquiror Company has filed all Tax Returns required to be filed by or on behalf of the Acquiror Company and have paid all Taxes of the Acquiror Company required to have been paid (whether or not reflected on any Tax Return). Except as set forth in the SEC Documents, (a) no Governmental Authority in any jurisdiction has made a claim, assertion or threat to the Acquiror Company that the Acquiror Company is or may be subject to taxation by such jurisdiction; (b) there are no Liens with respect to Taxes on the Acquiror Company’s property or assets other than Permitted Liens; and (c) there are no Tax rulings, requests for rulings, or closing agreements relating to the Acquiror Company for any period (or portion of a period) that would affect any period after the date hereof.

5.15.2   No Disputes. There is no pending audit, examination, investigation, dispute, proceeding or claim with respect to any Taxes of the Acquiror Company, nor is any such claim or dispute pending or contemplated. The Acquiror Company has delivered to the Company true, correct and complete copies of all Tax Returns, if any, examination reports and statements of deficiencies assessed or asserted against or agreed to by the Acquiror Company since their inception and any and all correspondence with respect to the foregoing.

5.15.3   Not a U.S. Real Property Holding Corporation. The Acquiror Company is not and has not been a United States real property holding corporation within the meaning of Section 897(c)(2) of the Code at any time during the applicable period specified in Section 897(c)(1)(A)(ii) of the Code. 

5.15.4   No Tax Allocation, Sharing. The Acquiror Company is not a party to any Tax allocation or sharing agreement. Other than with respect to the Tax Group of which the Acquiror Company is the common parent, the Acquiror Company (a) has been a member of a Tax Group filing a consolidated income Tax Return under Section 1501 of the Code (or any similar provision of state, local or foreign law), and (b) has any liability for Taxes for any Person under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or foreign law) as a transferee or successor, by contract or otherwise.

18

5.16

Material Assets. The financial statements of the Acquiror Company reflect the material properties and assets (real and personal) owned or leased by the Acquiror Company.

5.17

Litigation; Orders. Except for (i) the lawsuit filed by Robert Greeen, Troy Menlove and TRJ, LLC in the Third Judicial District Court against Jack Turner, Acquiror Company and Predictive Biotech, Inc. in July 2018 and (ii) the dispute between Acquiror Company and Mike Schramm, there is no Proceeding (whether federal, state, local or foreign) pending or, to the knowledge of the Acquiror Company, threatened against or affecting the Acquiror Company or the Acquiror Company’s properties, assets, business or employees. Except as disclosued above, to the knowledge of the Acquiror Company, there is no fact that might result in or form the basis for any such Proceeding. The Acquiror Company is not subject to any Orders.

5.18

[Section Reserved] 

5.19

Title to and Condition of Properties. The Acquiror Company owns (with good and marketable title in the case of real property) or holds under valid leases or other rights to use all real property, plants, machinery, equipment and other personal property necessary for the conduct of its business as presently conducted, free and clear of all Liens, except Permitted Liens.

5.20

Financial Statements. The Acquiror Company is not required to register any of its securities under Section 12 of the Exchange Act and is not required to file reports under Section 15(d) of the Exchange Act. The Acquiror Company provided the disclosures required by to maintain its listing in the over the counter market (the “SEC Documents”). As of their respective dates, the SEC Documents, when filed, did not contain any untrue statement of a material fact. The Company will file a Form 10 with the Securities and Exchange Commission. 

5.21

Stock Option Plans; Employee Benefits. The Company has a stock option plan and other employee benefit plans in place. 

5.22

Environmental and Safety Matters. Except as would not have a Material Adverse Effect:

5.22.1   The Acquiror Company has at all time been and is in compliance with all Environmental Laws applicable to the Acquiror Company.

5.22.2   There are no Proceedings pending or threatened against the Acquiror Company alleging the violation of any Environmental Law or Environmental Permit applicable to the Acquiror Company or alleging that the Acquiror Company is a potentially responsible party for any environmental site contamination.

5.23

Money Laundering Laws. The operations of the Acquiror Company is and has been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all U.S. and non-U.S. jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority (collectively, the “Money Laundering Laws”) and no Proceeding involving the Acquiror Company with respect to the Money Laundering Laws is pending or, to the knowledge of the Acquiror Company, threatened.

19

5.24

Board Recommendation. The Acquiror Company Board, by unanimous written consent, has determined that this Agreement and the transactions contemplated by this Agreement are advisable and in the best interests of the Acquiror Company’s stockholders and has duly authorized this Agreement and the transactions contemplated by this Agreement.

SECTION VI

NO LOCK-UP 

6.1

No Lock-Up. The Acquiror Company Common Stock will not be subject to lock-up arrangements pursuant to this Agreement. The Company will provide reasonably cooperation in the efforts of any Member to remove a Rule 144 restriction in connection with a sale of such Acquiror Company Common Stock. 

SECTION VII

CONDITIONS PRECEDENT OF THE ACQUIROR COMPANY

The Acquiror Company’s obligation to acquire the Company Units and to take the other actions required to be taken by the Acquiror Company at the Closing Date is subject to the satisfaction, at or prior to the Closing Date, of each of the following conditions (any of which may be waived by the Acquiror Company, in whole or in part): 

7.1

Accuracy of Representations. The representations and warranties of the Members set forth in this Agreement or in any Schedule or certificate delivered pursuant hereto that are not qualified as to materiality shall be true and correct in all material respects as of the date of this Agreement except to the extent a representation or warranty is expressly limited by its terms to another date and without giving effect to any supplemental Schedule. The representations and warranties of the Members set forth in this Agreement or in any Schedule or certificate delivered pursuant hereto that are qualified as to materiality shall be true and correct in all respects as of the date of this Agreement, except to the extent a representation or warranty is expressly limited by its terms to another date and without giving effect to any supplemental Schedule.

7.2

Performance by the Company and Members.

7.2.1   All of the covenants and obligations that the Members are required to perform or to comply with pursuant to this Agreement (considered collectively), and each of these covenants and obligations (considered individually), must have been duly performed and complied with in all material respects.

7.2.2   Each document required to be delivered by the Members pursuant to this Agreement must have been delivered.

7.3

No Force Majeure Event. There shall not have been any delay, error, failure or interruption in the conduct of the business of the Company, or any loss, injury, delay, damage, distress, or other casualty, due to force majeure including but not limited to (a) acts of God; (b) fire or explosion; (c) war, acts of terrorism or other civil unrest; or (d) national emergency.

20

7.4

Consents. All material consents, waivers, approvals, authorizations or orders required to be obtained, and all filings required to be made, by the Company and/or the Members for the authorization, execution and delivery of this Agreement and the consummation by them of the transactions contemplated by this Agreement, shall have been obtained and made by the Company or the Members, as the case may be, except where the failure to receive such consents, waivers, approvals, authorizations or orders or to make such filings would not have a Material Adverse Effect on the Company or the Acquiror Company. 

7.5

Documents. The Members must deliver to the Acquiror Company at the Closing (i) share certificates evidencing the number of Company Units held by each Member (as set forth on Exhibit B), along with executed share transfer forms transferring such Company Units to the Acquiror Company together with a certified copy of a board resolution of the Company approving the registration of the transfer of such Company Units, and (ii) each of the Transaction Documents to which the Company and/or the Members is a party, duly executed. 

7.6

No Proceedings. There must not have been commenced or threatened against the Acquiror Company, the Company or any Member, or against any Affiliate thereof, any Proceeding (which Proceeding remains unresolved as of the Closing Date) (a) involving any challenge to, or seeking damages or other relief in connection with, any of the transactions contemplated by this Agreement, or (b) that may have the effect of preventing, delaying, making illegal, or otherwise interfering with any of the transactions contemplated by this Agreement.

SECTION VIII

CONDITIONS PRECEDENT OF THE MEMBERS

The Members’ obligation to transfer the Company Units and to take the other actions required to be taken by the Members in advance of or at the Closing Date are subject to the satisfaction, at or prior to the Closing Date, of each of the following conditions (any of which may be waived by the Members jointly, in whole or in part):

8.1

Accuracy of Representations. The representations and warranties of the Acquiror Company set forth in this Agreement or in any Schedule or certificate delivered pursuant hereto that are not qualified as to materiality shall be true and correct in all material respects as of the date of this Agreement except to the extent a representation or warranty is expressly limited by its terms to another date and without giving effect to any supplemental Schedule. The representations and warranties of the Acquiror Company and Members set forth in this Agreement or in any Schedule or certificate delivered pursuant hereto that are qualified as to materiality shall be true and correct in all respects as of the date of this Agreement, except to the extent a representation or warranty is expressly limited by its terms to another date and without giving effect to any supplemental Schedule.

8.2

Performance by the Acquiror Company.

8.2.1   All of the covenants and obligations that the Acquiror Company are required to perform or to comply with pursuant to this Agreement (considered collectively), and each of these covenants and obligations (considered individually), must have been performed and complied with in all respects, including, without limitation, the actions relating to the directors of the Acquiror Company. 

21

 

8.2.2   Each document required to be delivered by the Acquiror Company pursuant to this Agreement must have been delivered.

8.3

No Force Majeure Event. There shall not have been any delay, error, failure or interruption in the conduct of the business of the Acquiror Company, or any loss, injury, delay, damage, distress, or other casualty, due to force majeure including but not limited to (a) acts of God; (b) fire or explosion; (c) war, acts of terrorism or other civil unrest; or (d) national emergency.

8.4

Consents. All material consents, waivers, approvals, authorizations or orders required to be obtained, and all filings required to be made, by the Acquiror Company for the authorization, execution and delivery of this Agreement and the consummation by it of the transactions contemplated by this Agreement, shall have been obtained and made by the Acquiror Company, except where the failure to receive such consents, waivers, approvals, authorizations or orders or to make such filings would not have a Material Adverse Effect on the Company or the Acquiror Company.

8.5

Documents. The Acquiror Company must have caused the following documents to be delivered to the Members: (i) each of the Transaction Documents to which the Acquiror Company is a party, duly executed; and (ii) certificates representing the Acquiror Company Shares issued in the names of the Members identified in Exhibit B hereto. 

8.6

No Proceedings. Since the date of this Agreement, there must not have been commenced or threatened against the Acquiror Company, the Company or any Member, or against any Affiliate thereof, any Proceeding (which Proceeding remains unresolved as of the date of this Agreement) (a) involving any challenge to, or seeking damages or other relief in connection with, any of the transactions contemplated hereby, or (b) that may have the effect of preventing, delaying, making illegal, or otherwise interfering with any of the transactions contemplated hereby.

SECTION IX

GENERAL PROVISIONS

9.1

Expenses. Except as otherwise expressly provided in this Agreement, each party shall be responsible for its expenses incurred in connection with the preparation, execution, and performance of this Agreement and the transactions contemplated by this Agreement, including all fees and expenses of agents, representatives, counsel, and accountants. 

9.2

Public Announcements. The Acquiror Company will, if required, file a Current Report on Form 8-K disclosing the consummation of the transactions consummated on the Closing. Prior to the Closing Date, the Company and the Acquiror Company shall consult with each other in issuing any other press releases or otherwise making public statements or filings and other communications with the Commission or any regulatory agency or stock market or trading facility with respect to the transactions contemplated hereby and neither party shall issue any such press release or otherwise make any such public statement, filings or other communications without the prior written consent of the other, which consent shall not be unreasonably withheld or delayed, except that no prior consent shall be required if such disclosure is required by law, in which case the disclosing party shall provide the other party with prior notice of such public statement, filing or other communication and shall incorporate into such public statement, filing or other communication the reasonable comments of the other party. 

22

9.3

Confidentiality.

9.3.1   Subsequent to the date of this Agreement, the Acquiror Company, the Members and the Company will maintain in confidence, and will cause their respective directors, officers, employees, agents, and advisors to maintain in confidence, any written, oral, or other information obtained in confidence from another party in connection with this Agreement or the transactions contemplated by this Agreement, unless (a) such information is already known to such party or to others not bound by a duty of confidentiality or such information becomes publicly available through no fault of such party, (b) the use of such information is necessary or appropriate in making any required filing with the Commission, or obtaining any consent or approval required for the consummation of the transactions contemplated by this Agreement, or (c) the furnishing or use of such information is required by or necessary or appropriate in connection with legal proceedings.

9.3.2   In the event that any party is required to disclose any information of another party pursuant to clause (b) or (c) of Section 9.3.1, the party requested or required to make the disclosure (the “disclosing party”) shall provide the party that provided such information (the “providing party”) with prompt notice of any such requirement so that the providing party may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Section 9.3. If, in the absence of a protective order or other remedy or the receipt of a waiver by the providing party, the disclosing party is nonetheless, in the opinion of counsel, legally compelled to disclose the information of the providing party, the disclosing party may, without liability hereunder, disclose only that portion of the providing party’s information which such counsel advises is legally required to be disclosed, provided that the disclosing party exercises its reasonable efforts to preserve the confidentiality of the providing party’s information, including, without limitation, by cooperating with the providing party to obtain an appropriate protective order or other relief assurance that confidential treatment will be accorded the providing party’s information.

9.3.3   If the transactions contemplated by this Agreement are not consummated, each party will return or destroy as much of such written information as the other party may reasonably request.

9.3.4   Nothing contained herein will effect the continued effectiveness of the Confidentiality Agreement previously executed by Acquiror Company and the Company. 

9.4

Notices. All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by telecopier (with written confirmation of receipt), or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and telecopier numbers set forth below (or to such other addresses and telecopier numbers as a party may designate by written notice to the other parties): 

23

 

  		
	If to Acquiror Company:

    Predictive Technology Group, Inc.

    Attn: CEO

    2735 Parleys Way, Suite 205

    Salt Lake City, Utah 84109

    	 
	 	 
	If to the Company:

    

    2735 Parleys Way, Suite 205

    Salt Lake City, Utah 84109

    

    

    

    If to the a Member

    

    To the Member at the address set forth in Exhibit A hereto.

    	with a copy to:

    

    Kenneth Ward

    PO Box 17654

    Salt Lake City, Utah 84117

    

    

    

9.5

Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Utah with respect to contracts made and to be fully performed therein, without regard to the conflicts of laws principles thereof. The parties hereto hereby agree that any suit or proceeding arising under this Agreement, or in connection with the consummation of the transactions contemplated hereby, shall be brought solely in a federal or state court located in Utah. By its execution hereof, each party hereto consents and irrevocably submits to the in personam jurisdiction of the federal and state courts located in Utah and agree that any process in any suit or proceeding commenced in such courts under this Agreement may be served upon it personally or by certified or registered mail, return receipt requested, or by Federal Express or other courier service, with the same force and effect as if personally served upon the applicable party in Utah and in the city or county in which such other court is located. The parties hereto each waive any claim that any such jurisdiction is not a convenient forum for any such suit or proceeding and any defense of lack of in personam jurisdiction with respect thereto. 

9.6

Further Assurances. The parties agree (a) to furnish upon request to each other such further information, (b) to execute and deliver to each other such other documents, and (c) to do such other acts and things, all as the other party may reasonably request for the purpose of carrying out the intent of this Agreement and the documents referred to in this Agreement.

9.7

Waiver. The rights and remedies of the parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay by any party in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement will operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege will preclude any other or further exercise of such right, power, 

24

 

or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by applicable law, (a) no claim or right arising out of this Agreement or the documents referred to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other party; (b) no waiver that may be given by a party will be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation of such party or of the right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement or the documents referred to in this Agreement.

9.8

Entire Agreement and Modification. This Agreement supersedes all prior agreements between the parties with respect to its subject matter and constitutes (along with the documents referred to in this Agreement) a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter. This Agreement may not be amended except by a written agreement executed by the party against whom the enforcement of such amendment is sought.

9.9

Assignments, Successors, and No Third-Party Rights. No party may assign any of its rights under this Agreement without the prior consent of the other parties. Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon, and inure to the benefit of and be enforceable by the respective successors and permitted assigns of the parties. Nothing expressed or referred to in this Agreement will be construed to give any Person other than the parties to this Agreement any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the parties to this Agreement and their successors and assigns.

9.10

Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

9.11

Section Headings, Construction. The headings of Sections in this Agreement are provided for convenience only and will not affect its construction or interpretation. All references to “Section” or “Sections” refer to the corresponding Section or Sections of this Agreement. All words used in this Agreement will be construed to be of such gender or number as the circumstances require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms.

9.12

Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original agreement, but all of which taken together shall constitute one and the same instrument. Execution and delivery of this Agreement by facsimile transmission (including the delivery of documents in Adobe PDF format) shall constitute execution and delivery of this Agreement for all purposes, with the same force and effect as execution and delivery of an original manually signed copy hereof.

9.13

No Shop. Until the earlier of the Closing Date or the date of termination of this Agreement, neither the Company nor any Member shall (nor will they permit any of their respective Affiliates to), directly or indirectly, take any 

25

of the following actions with any Person other than Acquiror Company and its designees: (i) solicit, encourage, initiate or participate in any negotiations or discussions with respect to, any offer or proposal to acquire (A) the  Company and/or any of its assets or (B) any interest in the Company whether by merger, purchase of assets, tender offer or otherwise, or effect any such transaction to the extent such transaction would be consummated prior to the earlier of the consummation of the transactions contemplated hereby or the termination of this Agreement, (ii) assist or cooperate with any Person to make any proposal to purchase any significant interest in the Company or any of the  Company’s assets, or (iii) enter into any agreement with any Person providing for the acquisition of the Company or the Company's assets (whether by way of merger, purchase of assets, tender offer or otherwise).  In the event the Company or any Member or any of their respective Affiliates shall receive any offer or proposal, directly or indirectly, of the type referred to in clauses (i) or (iii) above, Members shall immediately inform Acquiror Company as to any such offer or proposal and will cooperate with Acquiror Company by furnishing any information it may reasonably request.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

26

COUNTERPART SIGNATURE PAGE

IN WITNESS WHEREOF, the parties have executed and delivered this Securities Purchase Agreement as of the date first written above.

		
	Acquiror Company:

	 
	Predictive Technology Group, Inc. 

 

Signed: /s/ Bradley C. Robinson

Printed name: Bradley C. Robinson

Title: CEO

	 
	AGREED AND APPROVED:

 

Inception DX, LLC

Signed: /s/ Kenneth Ward

Printed name: Kenneth Ward

Title: Managing Member

	 
	 	 

 

27

COUNTERPART SIGNATURE PAGE FOR MEMBERS

IN WITNESS WHEREOF, the undersigned Member has executed and delivered this Securities Purchase Agreement as of the date first written above.

		
	Member 

 

Signed: /s/ Stephen William Jennings

Printed name: Stephen William Jennings

Title: Member

	 

COUNTERPART SIGNATURE PAGE FOR MEMBERS

IN WITNESS WHEREOF, the undersigned Member has executed and delivered this Securities Purchase Agreement as of the date first written above.

		
	Member 

Signed: /s/ Kenneth Ward

Printed name: Kenneth Ward

Title: Member

	 

28

EXHIBIT A

MEMBERS

Name and Address of Member

		
	 	 

Dr. Kenneth Ward

PO Box 17654

Salt Lake City, Utah 84117

Inception DX Cayman LTD

89 Nexis Way

Cayman Islands

A-1

EXHIBIT B

COMPANY UNITS AND ACQUIROR COMPANY SHARES TO BE EXCHANGED

					
	 	 	 Number of Company
	 Number of Acquiror 

	 	 	Common Units to be 
	 Common Shares to be 

	 
	 
	 Delivered by Member 
	 Issued to Member 

	 	Dr. Kenneth Ward	4,000,000
	1,500,000

	 	Inception DX Cayman LTD	6,000,000
	14,000,000

 

    

B-1

EXHIBIT C

Definition of “Accredited Investor”

The term “accredited investor” means:

(1) Any bank as defined in section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Act; any insurance company as defined in section 2(a)(13) of the Securities Act; any investment company registered under the Investment Company Act of 1940 or business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

(2) Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

(3) Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000; 

(4) Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

(5) Any natural person whose individual net worth, or joint net worth with that person's spouse, exceeds $1,000,000.

(i) Except as provided in paragraph (a)(5)(ii) of this exhibit, for purposes of calculating net worth under this paragraph (a)(5):

(A) The person's primary residence shall not be included as an asset;

(B) Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and

(C) Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability;

C-1

(6) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; 

(7) Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Section 506(b)(2)(ii) of Regulation D as promulgated under the Securities Act; and 

(8) Any entity in which all of the equity owners are accredited investors.

C-2

EXHIBIT D

ACCREDITED INVESTOR REPRESENTATIONS

Each Member, severally and not jointly, further represents and warrants to the Acquiror Company as follows:

1.

Such Member qualifies as an Accredited Investor on the basis set forth on its signature page to this Agreement.

2.

Such Member has sufficient knowledge and experience in finance, securities, investments and other business matters to be able to protect such Member’s interests in connection with the transactions contemplated by this Agreement.

3.

Such Member has consulted, to the extent that it has deemed necessary, with its tax, legal, accounting and financial advisors concerning its investment in the Acquiror Company Shares.

4.

Such Member understands the various risks of an investment in the Acquiror Company Shares and can afford to bear such risks for an indefinite period of time, including, without limitation, the risk of losing its entire investment in the Acquiror Company Shares.

5.

Such Member has had access to the Acquiror Company’s publicly filed reports.

6.

Such Member has been furnished during the course of the transactions contemplated by this Agreement with all other public information regarding the Acquiror Company that such Member has requested and all such public information is sufficient for such Member to evaluate the risks of investing in the Acquiror Company Shares.

7.

Such Member has been afforded the opportunity to ask questions of and receive answers concerning the Acquiror Company and the terms and conditions of the issuance of the Acquiror Company Shares.

8.

Such Member is not relying on any representations and warranties concerning the Acquiror Company made by the Acquiror Company or any officer, employee or agent of the Acquiror Company, other than those contained in this Agreement.

9.

Such Member is acquiring the Acquiror Company Shares for such Member’s own account, for investment and not for distribution or resale to others.

10.

Such Member will not sell or otherwise transfer the Acquiror Company Shares, unless either (a) the transfer of such securities is registered under the Securities Act or (b) an exemption from registration of such securities is available.

11.

Such Member understands and acknowledges that the Acquiror Company is under no obligation to register the Acquiror Company Shares for sale under the Securities Act, except as set forth in the Registration Rights Agreement.

D-1

12.

Such Member consents to the placement of a legend on any certificate or other document evidencing the Acquiror Company Shares substantially in the form set forth in Section 3.2.4(a).

13.

Such Member represents that the address furnished by such Member on its signature page to this Agreement and in Exhibit A is such Member’s principal residence if he is an individual or its principal business address if it is a corporation or other entity.

14.

Such Member understands and acknowledges that the Acquiror Company Shares have not been recommended by any federal or state securities commission or regulatory authority, that the foregoing authorities have not confirmed the accuracy or determined the adequacy of any information concerning the Acquiror Company that has been supplied to such Member and that any representation to the contrary is a criminal offense.

15.

Such Member acknowledges that the representations, warranties and agreements made by such Member herein shall survive the execution and delivery of this Agreement and the purchase of the Acquiror Company Shares.

D-2

EXHIBIT E

ASSETS OF THE COMPANY

1.

Laboratory Equipment

• Two Quant Studio Genotyping Systems & Accufills 

• Three ION Proton Next Generation DNA Sequencers, Servers, & Chef Systems

• ABI 3730XL DNA Sequencer

2.

Gen DB records- birth, death, or marriage records for over 31,900,000 individuals who are ancestors or relatives of certain present day populations in the Intermountain West arranged in a MySQL database.

3.

400,000 Units of Juneau Biosciences LLC and Acquiror Company agreement that Juneau will use InceptionDX lab for running ARTGuide test

4.

Initial CLIA registration and CLIA lab protocols based on modifications of protocols current used by Taueret Laboratories LLC.  Examples include: 

		
	

Examination

	Clinical Indications for Testing

	Examination

	Long term storage of Oragene®/saliva samples

	Examination

	Cross Contamination Prevention

	Examination

	PCR Laboratory Practices

	Examination

	Assay Validation

	Examination

	Analytical Controls

	Examination

	Controls Master Document

	Examination

	PharmaRisk® Testing Using the QuantStudioTM 12K Flex OpenArray® System

	Examination

	PharmaRisk® Marker List

	Facility & Resource Management

	Gel Doc XR Maintenance

	Facility & Resource Management

	Pipette Maintenance

	Facility & Resource Management

	Centrifuge Log

	Facility & Resource Management

	Biomek FX Maintenance

	Facility & Resource Management

	Incubator Maintenance

	Facility & Resource Management

	Temperature Log

	Facility & Resource Management

	Water Purification System

	Facility & Resource Management

	Analytical Balance Calibration Form

	Facility & Resource Management

	NanoDrop Maintenance

	Facility & Resource Management

	LIMS User Manual

	Facility & Resource Management

	Reagent Receiving

	Facility & Resource Management

	ABI 7900HT Fast Real-Time PCR System Maintenance

	Facility & Resource Management

	Refrigerator - Freezer Maintenance

	Facility & Resource Management

	Water Usage and Water Quality

	Facility & Resource Management

	LIMS Changes Validation Form

	Facility & Resource Management

	Computer Systems Procedures

E-1

		
	Facility & Resource Management

	LIS Downtime Record

	Facility & Resource Management

	Hardware/Software Addition Record

	Facility & Resource Management

	Ductless HEPA Containment Hood Maintenance

	Facility & Resource Management

	Ductless HEPA Containment Hood Log

	Facility & Resource Management

	Incident, Error, and Accident Log

	Facility & Resource Management

	GeneChip Scanner 3000 Log

	Facility & Resource Management

	Fluidics Station Log

	Facility & Resource Management

	Thermal Cycler Performance Verification

	Facility & Resource Management

	Thermal Cycler Performance Verification Log

	Facility & Resource Management

	Affymetrix Hybridization Oven Temperature Log

	Facility & Resource Management

	Room Temperature Log

	Facility & Resource Management

	Laboratory Humidity Log

	Facility & Resource Management

	PharmaRisk Multi-Panel Requisition Form

	Personnel

	Laboratory Organizational Chart

	Personnel

	Laboratory Director/Assistant Laboratory Director Job Description

	Personnel

	Laboratory Director Delegated Responsibilities

	Personnel

	Technical Supervisor Job Description

	Personnel

	Laboratory Manager Job Description

	Personnel

	General Supervisor Job Description

	Personnel

	Laboratory Technologist/Senior Laboratory Technologist Job Description

	Personnel

	Laboratory Assistant Job Description

	Personnel

	Quality Assurance Supervisor Job Description

	Personnel

	Training & Competency

	Personnel

	Employee Signature Log

	Personnel

	Injury and Illness Report

	Personnel

	Hepatitis B Vaccine Declination

	Personnel

	Employee Quality/Safety Communication

	Personnel

	Employee Quality/Safety Communication Form

	Personnel

	Personnel SOP Checklist

	Personnel

	Continuing Education

	Personnel

	Visual Color Discrimination Testing

	Personnel

	Continuing Education Log

	Personnel

	Visual Color Discrimination Test Results

	Personnel

	Consent for Tuberculosis (TB) Screening

	Personnel

	Personnel

	Personnel

	Laboratory Aide Job Description

	Personnel

	Customer Service Manager Job Description

	Personnel

	Customer Service Representative Job Description

	Personnel

	Affiliated Genetics, Inc. Confidentiality Agreement

	Personnel

	Critical Task List

	Personnel

	Personnel Competency Assessment

E-2

		
	Post-Examination

	Long-Term Stability of DNA from Saliva Samples Stored in the Oragene® Self-Collection Kit

	Post-Examination

	Data Transfer to the TranslationalTM Software System for ADR Report Generation

	Post-Examination

	PharmaRisk® Analysis

	Post-Examination

	Releasing Laboratory Test Results to a Patient's Designee, or a Patient's Personal Representative

	Post-Examination

	Authorization to Release Protected Health Information

	Post-Examination

	Reporting Policy

	Post-Examination

	Positive Control (PC2639) Genotypes

	Post-Examination

	PharmaRisk® Data Review

	Post-Examination

	PharmaRisk® Reporting

	Post-Examination

	PharmaRisk® Expendable/Ignorable Panel Analytes Tables

	Pre-Examination

	Specimen Loss, Alteration or Contamination

	Pre-Examination

	Specimen Disposal Guidelines

	Pre-Examination

	Handling Correspondence

	Pre-Examination

	Manual Extraction of Oragene Saliva Specimens

	Pre-Examination

	Manual Extraction of Oragene Saliva Specimens - 500 μL Specimen Volume

	Pre-Examination

	DNA Extraction from 300 μL Whole Blood Using Gentra Puregene Reagents

	Pre-Examination

	DNA Extraction from 3 mL Whole Blood Using a Gentra Puregene Blood Kit

	Pre-Examination

	PharmaRisk® Sample Collection Instructions - Blood

	Pre-Examination

	PharmaRisk® Sample Collection Instructions - Cheek Swab

	Pre-Examination

	Pharma RiskTM Requisition Form -Cardiac

	Pre-Examination

	Pharma RiskTM Requisition Form -General

	Pre-Examination

	Pharma RiskTM Requisition Form - Pain

	Pre-Examination

	Pharma RiskTM Requisition Form - Geriatric

	Pre-Examination

	Pharma RiskTM Requisition Form - Psychiatric

	Pre-Examination

	DNA Purification from 2 Puritan Swabs Using a Gentra Purgene Kit

	Pre-Examination

	Sample Quantification Using the μQuant

	Pre-Examination

	DNA Quantification Using the NanoDrop 1000 Spectrophotometer

	Pre-Examination

	Specimen Receiving

	Pre-Examination

	Accessioning

	Pre-Examination

	Specimen Acceptance and Rejection Criteria

	Pre-Examination

	DNA Extraction from Two Buccal Swab Samples Using the Chemagen Magnetic Separation Module I

	Public Health Preparedness & Reporting

	Patient Safety Goals

	Quality Assessment & Improvement

	Proficiency Testing

E-3

		
	Quality Assessment & Improvement

	Laboratory Meeting Attendance Register

	Quality Assessment & Improvement

	Internal Proficiency Testing Summary

	Quality Assessment & Improvement

	Monitoring of Turnaround Time

	Quality Assessment & Improvement

	Systems Quality Monitoring

	Quality Assessment & Improvement

	Occurrence Report

	Quality Assessment & Improvement

	Quality Improvement Evaluation Form

	Quality Assessment & Improvement

	HIPAA Audit Form

	Quality Assessment & Improvement

	PharmaRisk® Laboratory Workflow

	Quality Management

	Accreditation Status

	Quality Management

	HIPAA Policy

	Quality Management

	Document Control

	Quality Management

	Evaluation of Contingency Plan in the Event of a Failure

	Quality Management

	Quality Management Plan

	Quality Management

	Quality Management Annual Review Form

	Quality Management

	LAP Laboratory Activity Menu

	Safety

	Workplace Safety and health Program

	Safety

	Safety Meeting Minutes

	Safety

	Employee Safety SuggestionForm, Workplace Hazards, Property Damage

	Safety

	Log of Work-Related Injuries and Illnesses

	Safety

	Investigation of Work-Related Injury and Illness

	Safety

	Safe Work Practices and Procedures

	Safety

	Laboratory Security Policy

	Safety

	Chemical Hygiene Plan

	Safety

	Chemical Spill Procedures

	Safety

	Biological Material Spill Procedure

	Safety

	Chemical Overexposure Report

	Safety

	Hazards Awareness

	Safety

	Fire Emergencies

	Safety

	Accidents and First Aid

	Safety

	Emergency Evacuation Route

	Safety

	Personnel Safety Acknowledgement Form

	Safety

	Emergency Contact List

	Safety

	Emergency Shower/Eyewash Maintenance Log

	Safety

	Emergency Preparedness Plan

	Validation

	Drug Sensitivity/Vascular Risk Panel Taqman Validation

	Validation

	Drug Sensitivity/Vascular Risk Panel Taqman Validation

	Validation

	Fragile X (FX) CGG repeat and Methylation Validation

	Validation

	Translational Software Transmission of Data and Reports Validation

	Validation

	PharmaRisk Adverse Drug Reaction Assay-OpenArray 128 Format and CNV for Duplication/Deletion of the CYP2D6 Gene Validation

		
	Validation

	Chemagen Extracted DNA Validation

E-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]