Document:

EX-10.1

 Exhibit 10.1 

DEBT SETTLEMENT AGREEMENT 

This Debt Settlement Agreement (“Agreement”) is effective as of October 31, 2017 and is executed and entered into by and
among Precipio, Inc. (the “Company”), the creditors of the Company now or hereafter signatory hereto (the “Vendors”) and Collateral Services LLC. 

RECITALS 
 WHEREAS,
each Vendor has provided certain goods and/or services (the “Services”) to the Company; 
 WHEREAS, as of the date
hereof, each Vendor is owed (each such amount, an “Outstanding Amount”) for such Services provided by such Vendor which have not been paid; 

WHEREAS, as of the date hereof, no Vendor has received payment for any Outstanding Amount; and 

WHEREAS, the Vendors and the Company have agreed that the Company shall pay the Vendors the amounts set forth herein in accordance with
the terms of this Agreement in full satisfaction of such Services. 
 NOW THEREFORE, acknowledging that the above recitals are true
and correct and incorporating as if fully set forth herein, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

1. SETTLEMENT. The parties hereto agree as follows: 

(a) In full satisfaction of each Vendor’s Services, the Company covenants, agrees and promises to (a) pay to each Vendor, the amount
set forth on such Vendor’s signature page hereto opposite the heading ‘Settlement Amount’ (each such amount, a “Settlement Amount”), and (b) issue to each Vendor, if applicable, a warrant in the form attached
hereto as Exhibit A (each such warrant, a “Warrant”) to purchase the number of shares of common stock of the Company set forth on such Vendor’s signature page hereto opposite the heading ‘Warrant Amount’. 

(b) Each Settlement Amount shall be payable in forty-eight (48) equal monthly installments no later than the last day of each month
beginning with the month ending July 31, 2018 and ending with the month ending June 30, 2022. 
 (c) For the avoidance of doubt,
no payment in respect of any Outstanding Amount, Services or Settlement Amount shall be required until July 31, 2018. 
 (d) The
Company may prepay the Settlement Amounts, on a pro rata basis, at any time. Any such prepayment shall be applied to the remaining monthly installments in respect of such Settlement Amount in reverse order of maturity. 

(e) Upon payment in full of a Settlement Amount in accordance with the payment schedule set forth above, all claims by the Company against the
applicable Vendor and by such Vendor against the Company shall be waived and released and the Company shall have no further obligation to such Vendor. 

 2. SECURITY. The Settlement Amounts shall be supported by a security interest granted to
Collateral Services LLC, acting as collateral agent for the benefit of the Vendors (in such capacity, the “Collateral Agent”), pursuant to a Security Agreement entered into on the date hereof by and between the Company and the
Collateral Agent substantially in the form attached hereto as Exhibit B (the “Security Agreement”). 
 3.
WITHDRAWAL/RESERVATION OF RIGHT. The terms of this Agreement notwithstanding, following the occurrence of an Event of Default (as defined below), the Vendors shall have the right to, upon written notice to the Company within five
(5) business days after such Event of Default, withdraw from this Agreement and shall be entitled to pursue, on an unsecured basis, an amount equal to the difference of (a) the full amount of the Outstanding Amount of such Vendor
minus (b) the sum of (i) any portion of such Vendor’s Settlement Amount previously paid by the Company plus (ii) the number of warrant shares times (A) the closing price of the Company’s common stock on
the trading day prior to the Event of Default minus (B) $7.50. 
 4. DEFAULT. Each of the following shall constitute an
“Event of Default” hereunder: 
 (a) The Company’s failure to pay any installment of a Settlement Amount when due as
required by Section 1 hereof which remains uncured after the twenty-day period following receipt of written notice of such failure by the Company. 

(b) The Company’s breach of any material covenant set out in the Security Agreement. 

(c) The Company shall file a voluntary petition in bankruptcy or shall be adjudicated a bankrupt or insolvent, or shall file any petition or
answer seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself under any present or future federal, state or other statute, law or regulation relating to bankruptcy,
insolvency or other relief for debtors, or the Company shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of the Company or of all or any part of the Company’s assets, or the Company shall make any
general assignment for the benefit of creditors, or shall admit in writing the Company’s inability to pay its debts generally as they become due. 

(d) A court of competent jurisdiction shall enter an order, judgment or decree approving a petition filed against the Company seeking any
reorganization, dissolution or similar relief under any present or future federal, state or other statute, law or regulation relating to bankruptcy, insolvency or other relief for debtors, and such order, judgment or decree shall remain unvacated
and unstayed for an aggregate of sixty (60) days (whether or not consecutive) from the first date of entry thereof; or any trustee, receiver or liquidator of the Company shall be appointed without the consent or acquiescence of the Company and
such appointment shall remain unvacated and unstayed for an aggregate of sixty (60) days (whether or not consecutive). 
 (e) If at any
time any representation or warranty made by the Company in this Agreement or in the Security Agreement shall be incorrect or misleading in any material respect. 

  
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 5. WARRANTIES. 

(a) Each party executing this Agreement represents and warrants that both it and the person signing on behalf of such party are duly
authorized to execute the same, and that this Agreement constitutes the legal, valid and binding obligation of such party, enforceable against such party according to its terms. 

(b) Each Vendor represents and warrants that it is the sole and exclusive legal and beneficial owner of its Outstanding Amount, free and clear
of any security interests, agreements, restrictions, claims, liens, pledges, assessments and encumbrances of any kind or nature , and has the unrestricted power to settle such Outstanding Amount. 

(c) Each Vendor (i) understands that neither its Warrant nor the common stock underlying its Warrant has been registered under the
Securities Act of 1933, as amended (the “Securities Act”), nor have either been registered pursuant to the provisions of the securities laws or other laws of any other applicable jurisdictions, in reliance on exemptions for private
offerings contained in the laws of such jurisdictions, (ii) is an “accredited investor” as defined by the rules and regulations of the U.S. Securities and Exchange Commission pursuant to the Securities Act, (iii) is acquiring its
Warrant for its own account for the purpose of investment, and not with a view to any resale or other distribution thereof in violation of the Securities Act, (iv) is a sophisticated investor with such knowledge and experience in financial and
business matters as to be able to evaluate the merits and risks of an investment in its Warrant and that it is able to and must bear the economic risk of the investment in such Warrant for an indefinite period of time because such Warrant has not
been registered under the Securities Act, and therefore cannot be offered or sold unless such Warrant is subsequently registered under the Securities Act or an exemption from such registration is available, (v) has had the opportunity to ask
questions and obtain answers from management of the Company and has received information which such Vendor has reasonably requested, and (vi) understands the risks of an investment in the Company’s securities, which risks are described in
the Company’s public securities filings. 
 6. COMPLETE AGREEMENT. This Agreement, together with the Security Agreement, is the
complete agreement between the parties with respect to the settlement contemplated herein and supersedes all prior agreements and understandings with respect thereto. This Agreement may only be modified by a writing signed by the Company and the
Vendors then holding more than fifty percent (50%) of the outstanding Settlement Amounts then outstanding (such Vendors, the “Required Vendors”); provided that no such modification shall reduce or forgive the Settlement
Amount payable to a Vendor or change the provisions of this Section 6 without the consent of each Vendor directly and adversely affected thereby. 

  
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 7. NOTICES. All notices, requests, demands and other communications provided for hereunder
shall be in writing (including e-mail communication) and mailed, sent via e-mail or delivered: 

(a) If to the Company, at 4 Science Park, 3rd Floor, New Haven, Connecticut 06511, Attention: Ilan Danieli,
e-mail: idanieli@precipiodx.com or at such other address as shall be designated by the Company in a written notice to the other parties complying as to delivery with the terms of this Section 7, with a
copy, which shall not constitute notice, to Goodwin Procter LLP, 620 Eighth Avenue, New York, New York 10018, Attention: Stephen Davis, e-mail: sdavis@goodwinprocter.com. 

(b) If to a Vendor, either (i) at the address set forth on such Vendor’s signature page hereto or at such other address as to which
such Vendor may inform the other parties in writing in compliance with the terms of this Section 7, (ii) to the Collateral Agent, who shall promptly forward such communication to the applicable Vendor in accordance with the preceding
clause (i). 
 (c) If to Collateral Agent, at 515 Rockaway Avenue, Valley Stream, New York 11581, Attention: Barbara R. Mittman, e-mail: barbara@grushkomittman.com, or at such other address as shall be designated by the Collateral Agent in a written notice to the other parties in compliance with the terms of this Section 7. 

8. ACKNOWLEDGMENT. Each party hereto acknowledges that it has reviewed this Agreement in its entirety, has consulted such legal, tax or
other advisors as it deems appropriate and understands and agrees to each of the provisions of this Agreement and further acknowledges that it has entered into this Agreement voluntarily. 

9. APPLICABLE LAW; VENUE; NO JURY TRIAL. This Agreement shall be construed and interpreted in accordance with the laws of the State of
New York, and each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District
Court of the Southern District of New York, and any appellate court from any thereof for resolution of any dispute regarding, arising from, or in any way relating to this Agreement or the negotiations which gave rise to this Agreement. By executing
this Agreement the parties hereto agree to waive any defense or argument based on lack of personal jurisdiction, inconvenient forum, or any other objection or argument against the exercise of jurisdiction by the State of New York over the issues and
parties in this matter. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement, the Security
Agreement or the transactions contemplated hereby or thereby. 
 10. NO ADVICE. Each party enters into this Agreement freely and
voluntarily, and not upon any advice, statement or representation made by any other party hereto, by any agent or attorney of any other party hereto, or by any person in any way connected with any party hereto. 

11. BINDING EFFECT; NO ASSIGNMENT. Each party has carefully read and fully understand the terms of this Agreement and voluntarily
execute this Agreement. This Agreement shall be binding upon the parties hereto and shall inure to the benefit of the parties and their respective successors in interest. Notwithstanding the foregoing, the Company may not assign any of its rights or
obligations hereunder without the written consent of the Required Vendors and no Vendor may assign its rights or obligations hereunder without the written 

  
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consent of the Company; any assignment or attempted assignment by any party hereto without the requisite consent shall be null and void. Notwithstanding the foregoing, the Company may assign its
rights and obligations hereunder in connection with a sale of the business, whether through a merger, consolidation, transfer of all or substantially all of its assets, or in a similar transaction. 

12. SEVERABILITY. If any clause or provision of this Agreement is determined to be illegal, invalid or unenforceable under any present
or future law by the final judgment of a court of competent jurisdiction, the remainder of this Agreement will not be affected thereby. It is the intention of the parties that if any such provision is held to be invalid, illegal or unenforceable,
there will be added in lieu thereof a provision as similar in terms to such provision as is possible, and that such added provision will be legal, valid and enforceable. 

13. CONSTRUCTION. This Agreement shall be deemed to be the product of the joint drafting of the parties hereto and shall not be
construed against any party. In the event an ambiguity or question of intent or interpretation arises, no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 14. COUNTERPARTS. This Agreement may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. 

15. NO THIRD PARTY BENEFICIARIES. This Agreement shall not confer any rights or remedies upon any person or entity other than the
parties hereto. 
 16. AGENCY. The Collateral Agent shall have the rights, responsibilities and immunities set forth in
Exhibit C hereto, the terms of which are incorporated by reference into this Agreement. 
 [SIGNATURE PAGES
FOLLOW] 

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

			
	COMPANY
	
	PRECIPIO, INC.
		
	By:	 	/s/ Ilan Danieli
		 	Name: Ilan Danieli
		 	Title: President and Chief Executive Officer

 SIGNATURE PAGE TO 

SETTLEMENT AGREEMENT 

 
			
	COLLATERAL AGENT
	
	COLLATERAL SERVICES LLC
		
	By:	 	/s/ Barbara R. Mittman
		 	Name: Barbara R. Mittman
		 	Title: Managing Member

 SIGNATURE PAGE TO 

SETTLEMENT AGREEMENT 

 VENDOR: 
  

					
	Vendor Name:	  	 	  	
			
	Settlement Amount:	  	 	  	
			
	Monthly Installment:	  	 	  	
			
	Warrant Shares:	  	 	  	

  

					
			
	Signature:	  	 	  	
			
	Name of Signatory:	  	 	  	
			
	Title:	  	 	  	
			
	Date:	  	 	  	

  

			
		
	Address for Notices:	  	
		
	 	  	
		
	 	  	
		
	 	  	
		
	 	  	

  

			
		
	Wire Instructions:	  	
		
	 	  	
		
	 	  	
		
	 	  	
		
	 	  	

 SIGNATURE PAGE TO 

SETTLEMENT AGREEMENT 

 EXHIBIT A 

Form of Warrant 

(See attached) 

 EXHIBIT B 

Security Agreement 

(See attached) 

 EXHIBIT C 

Agency 
 1.
APPOINTMENT. The Vendors hereby designate Collateral Services LLC as collateral agent to act as specified herein and in this Agreement. Each Vendor shall be deemed to authorize the Collateral Agent to take such action on its behalf
under the provisions of the Agreement or the Security Agreement and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of the Collateral Agent by the terms hereof and thereof and
such other powers as are reasonably incidental thereto. The Collateral Agent may perform any of its duties hereunder by or through its agents or employees. 

2. NATURE OF DUTIES. The Collateral Agent shall have no duties or responsibilities except those expressly set forth in the
Agreement and the Security Agreement. Neither the Collateral Agent nor any of its partners, members, shareholders, officers, directors, employees or agents shall be liable to the Vendors for any action taken or omitted by it as such under the
Agreement or hereunder or in connection herewith or therewith, be responsible for the consequence of any oversight or error of judgment or answerable for any loss, unless caused solely by its or their gross negligence, bad faith or willful
misconduct as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction. The duties of the Collateral Agent shall be mechanical and administrative in nature; the Collateral Agent shall not have by reason of
this Agreement or the Security Agreement a fiduciary relationship in respect of the Company or any Vendor; nothing in the Agreement or the Security Agreement, expressed or implied, is intended to or shall be so construed as to impose upon the
Collateral Agent any obligations in respect of the Agreement or the Security Agreement except as expressly set forth herein and therein. 

3. LACK OF RELIANCE ON THE COLLATERAL AGENT. Independently and without reliance upon the Collateral Agent, each Vendor, to the extent
it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of the Company and its subsidiaries in connection with the Company’s obligations to such Vendor, the
transactions contemplated by this Agreement and the Security Agreement, and the taking or not taking of any action in connection therewith, and (ii) its own appraisal of the creditworthiness of the Company and its subsidiaries, and of the value
of the Collateral (as defined in the Security Agreement) from time to time, and the Collateral Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide any Vendor with any credit, market or other information
with respect thereto, whether coming into its possession before any obligations are incurred or at any time or times thereafter. The Collateral Agent shall not be responsible to the Company or any Vendor for any recitals, statements, information,
representations or warranties herein or in any document, certificate or other writing of other persons delivered by the Collateral Agent in connection herewith, or for the execution, effectiveness, genuineness, validity, enforceability,
collectibility, priority or sufficiency of the Agreement, the Security Agreement, or for the financial condition of the Company or the value of any of the Collateral, or be required to make any inquiry concerning either the performance or observance
of any of the terms, provisions or conditions of the Agreement or the Security Agreement, or the financial condition of the Company, or the value of any of the Collateral, or the existence or possible existence of any default or Event of Default
under this Agreement. 

 4. CERTAIN RIGHTS OF THE COLLATERAL AGENT. The Collateral Agent shall have the right to
take any action with respect to the Collateral, on behalf of all of the Vendors upon the written election of the Required Vendors. The Collateral Agent shall request written instructions from the Required Vendors with respect to any act or action
(including failure to act, but excluding matters of a purely administrative nature) in connection with the Agreement or the Security Agreement; if such instructions are not provided despite the Collateral Agent’s request therefor, the
Collateral Agent shall refrain from such act or taking such action; provided that (X) if such action is taken absent such written instruction, the Collateral Agent shall not be entitled to any indemnification from the Vendors in respect of
actions to be taken by the Collateral Agent, and (Y) if such action is not taken as a result of the failure to provide such written instruction, the Collateral Agent shall not incur liability to any Vendor by reason of so refraining. Without
limiting the foregoing, (a) no Vendor shall have any right of action whatsoever against the Collateral Agent as a result of the Collateral Agent acting or refraining from acting hereunder in accordance with the terms of this Agreement or the
Security Agreement, and the Company shall have no right to question or challenge the authority of, or the instructions given to, the Collateral Agent by the Required Vendors pursuant to the foregoing and (b) the Collateral Agent shall not be
required to take any action which the Collateral Agent believes (i) could reasonably be expected to expose it to personal liability or (ii) is contrary to this Agreement, the Security Agreement or applicable law. 

5. RELIANCE. The Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any written notice,
statement, certificate or other document (whether transmitted physically or by e-mail) signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to this Agreement,
the Security Agreement and its duties hereunder and thereunder. Anything to the contrary notwithstanding, the Collateral Agent shall have no obligation whatsoever to any Vendor to assure that the Collateral exists or is owned by the Company or is
cared for, protected or insured or that the liens granted pursuant to the Agreement have been properly or sufficiently or lawfully created, or enforced or are entitled to any particular priority. 

6. PERMITTED SUBORDINATION AND RELEASE. The Required Vendors may instruct the Collateral Agent to agree to release in whole or in part
or to subordinate any Collateral to any claim or other actual or proposed security interest and may enter into any agreement with the Company to evidence such subordination. 

7. INDEMNIFICATION. To the extent that the Collateral Agent is not reimbursed and indemnified by the Company as, and to the
extent, provided for in this Agreement or the Security Agreement, the Vendors will jointly and severally reimburse and indemnify the Collateral Agent, in proportion to their initial Settlement Amounts, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Collateral Agent in performing its duties hereunder or
under this Agreement or the Security Agreement, or in any way relating to or arising out of this Agreement or the Security Agreement, except for those determined by a final judgment (not subject to further appeal) of a court of competent
jurisdiction to have resulted solely from the Collateral Agent’s own gross negligence, bad faith or willful misconduct. Prior to taking any action hereunder as Collateral Agent, the Collateral Agent may require each Vendor to deposit with it
sufficient sums as it determines in good faith is necessary to protect the Collateral Agent for costs and expenses associated with taking such action. 

 8. EXCULPATION. The Collateral Agent and its officers, employees, attorneys and agents,
shall not incur any liability whatsoever for the holding or delivery of documents or the taking of any other action in accordance with the terms and provisions of this Agreement (other than the filings of Uniform Commercial Code financing
statements), for any mistake or error in judgment, for compliance with any applicable law or any attachment, order or other directive of any court or other authority (irrespective of any conflicting term or provision of this Agreement), or for any
act or omission of any other person engaged by the Collateral Agent in connection with this Agreement, unless occasioned by the exculpated person’s own gross negligence, bad faith, willful misconduct or material breach of the terms of this
Agreement and or the Security Agreement; and each party hereto hereby waives any and all claims and actions whatsoever against the Collateral Agent and its officers, employees, attorneys and agents, arising out of or related directly or indirectly
to any or all of such foregoing exculpated acts, omissions and circumstances. 
 9. SEGREGATED FUNDS. Any funds held by the
Collateral Agent hereunder need not be segregated from other funds except to the extent required by law. The Collateral Agent shall be under no liability for interest on any funds received by it hereunder. 

10. RIGHTS AND REMEDIES NOT WAIVED. No act, omission or delay by the Collateral Agent shall constitute a waiver of the Collateral
Agent’s rights and remedies hereunder or otherwise. No single or partial waiver by the Collateral Agent of any default hereunder or right or remedy that it may have shall operate as a waiver of any other default, right or remedy or of the same
default, right or remedy on a future occasion. 
 11. FEES. Upon the execution of this agreement, the Company will pay the Collateral
Agent a fee of $2,500 and thereafter the sum of $2,500 per month on the first of each month for agreeing to act as the Collateral Agent hereunder and for reading and becoming familiar with the documents. All payments due to the Collateral Agent
under this Agreement including reimbursements must be paid when billed. Payments required pursuant to this Agreement shall be secured under the Security Agreement and shall rank pari passu to the Vendors’ interests in the
Settlement Amounts in right of payment and security. The Collateral Agent is hereby authorized to deduct any sums due the Collateral Agent from Collateral in the Collateral Agent’s possession. 

12. OTHER ACTIVITIES. The Collateral Agent may generally engage in any kind of business with any party hereto or any subsidiary,
representative, agent or affiliate thereof as if it had not entered into this Agreement; the Collateral Agent and its affiliates and their officers, directors, employees, and agents (including legal counsel) may now or hereafter be engaged in one or
more other transactions with any party hereto or act as trustee, agent or representative of any party hereto (collectively, the “Other Activities”) not the subject of this Agreement or the Security Agreement; without limiting the
forgoing, Collateral Agent and its affiliates and their officers, directors, employees, and agents (including legal counsel) shall not be responsible to account to any party hereto for such other activities. 

 13. RESIGNATION BY THE COLLATERAL AGENT. 

(a) The Collateral Agent may resign from the performance of all its functions and duties under the Agreement and the other transaction
documents at any time by giving 30 days’ prior written notice (as provided in the Agreement) to the Company and the Vendors. 
 (b)
Upon any such notice of resignation, the Required Vendors, shall appoint a successor Collateral Agent hereunder. 
 (c) If a successor to
the Collateral Agent shall not have been so appointed within said 30-day period, the Required Vendors shall hold the rights and obligations of the collateral agent hereunder until such time, if any, as the
Vendors appoint a new collateral as provided above. 
 (d) Such resignation shall take effect upon the earlier of (i) the appointment
of a successor agent pursuant to Sections 13(b) and 13(c) of this Exhibit C, or (ii) the effective date of such resignation. The Collateral Agent shall continue to serve until the effective date of the resignation or until
its successor accepts the appointment, but shall not be obligated to take any action hereunder. 
 (e) The Collateral Agent may deposit any
Collateral with the Supreme Court of the State of New York for New York County or any such other court in New York State that accepts such Collateral. 

14. RIGHTS WITH RESPECT TO COLLATERAL. Each Vendor agrees with all other Vendors and the Collateral Agent (i) that it shall
not, and shall not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant to any other agreement or otherwise (other than pursuant to this Agreement or the Security Agreement), or take or institute
any action against the Collateral Agent or any of the other Vendors in respect of the Collateral or its rights hereunder or under the Security Agreement (other than any such action arising from the breach by such person of this Agreement) and
(ii) that such Vendor has no other secured rights with respect to the Collateral other than as set forth in this Agreement or Security Agreement. Upon the acceptance of any appointment as collateral agent hereunder by a successor agent, such
successor agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring agent and the retiring agent shall be discharged from its duties and obligations under the Agreement. After Collateral
Agent’s resignation or removal hereunder as collateral agent, the provisions of the Agreement including this Exhibit C shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Collateral Agent.EX-10.2

 Exhibit 10.2 

SECURITY AGREEMENT 
 This
SECURITY AGREEMENT, dated as of October 31, 2017 (this “Agreement”), is entered into by and between Precipio, Inc., a Delaware corporation (the “Company”) and Collateral Services LLC, in its capacity as collateral
agent for the Vendors (as defined below) (the “Collateral Agent”). 
 W I T N E S S E T H: 

WHEREAS, the certain vendors of the Company (the “Vendors” and, together with the Collateral Agent, the “Secured
Parties”) have entered into a Debt Settlement Agreement, dated on or about the date hereof (the “Settlement Agreement”), with the Company and the Collateral Agent; and 

WHEREAS, in order to induce the Vendors to enter into the Settlement Agreement, the Company has agreed to execute and deliver to the
Collateral Agent this Agreement and to grant Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in certain property of the Company to secure the prompt payment, performance and discharge in full of all of the
Company’s obligations under the Settlement Agreement. 
 NOW, THEREFORE, in consideration of the agreements herein contained and for
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 1.
Certain Definitions. 
 (a) As used in this Agreement, the following terms shall have the meanings set forth in this Section 1.
Terms used but not otherwise defined in this Agreement that are defined in Article 8 or 9 of the UCC (such as “account,” “chattel paper,” “commercial tort claim,” “deposit account,” “document,”
“equipment,” “fixtures,” “general intangibles,” “goods,” “instruments,” “inventory,” “investment property,”
“letter-of-credit rights,” “proceeds” and “supporting obligations”) shall have the respective meanings given such terms in Article 8 or 9
of the UCC, as applicable. 
 (b) Capitalized terms used but not otherwise defined herein shall have the meanings attributed to them in the
Settlement Agreement. 
 (c) The following terms shall have the meanings set forth below: 

“Collateral” means all of the right, title and interest of the Company in, to and under all personal property and fixtures and interests in
such personal property and fixtures, wherever located, and whether now existing or hereafter arising or acquired from time to time, including, without limitation: 

(i) All goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks,
boats, ships, appliances, furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind and nature and wherever situated, together with all documents of title and documents

 
representing the same, all additions and accessions thereto, replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items used and useful in
connection with the Company’s businesses and all improvements thereto, and (B) all inventory; 
 (ii) All contract
rights and other general intangibles, including, without limitation, all partnership interests, membership interests, stock or other securities, agreements related to the Pledged Securities (as defined herein), licenses, distribution and other
agreements, computer software (whether “off-the-shelf,” licensed from any third party or developed by the Company), computer software development rights,
leases, franchises, customer lists, quality control procedures, grants and rights, goodwill, trademarks, service marks, trade styles, trade names, patents, patent applications, copyrights, and income tax refunds; 

(iii) All accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any
merchandising, goods, raw materials, timber cut or to be cut, oil, gas, hydrocarbons, and minerals extracted or to be extracted, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and guaranties
with respect to each account, including any right of stoppage in transit; 
 (iv) All documents, letter-of-credit rights, instruments and chattel paper; 

(v) All commercial tort claims; 

(vi) All deposit accounts and all cash (whether or not deposited in such deposit accounts); 

(vii) All investment property; 

(viii) All supporting obligations; 

(ix) All files, records, books of account, business papers, and computer programs; and 

(x) the products and proceeds of all of the foregoing Collateral set forth in clauses (i)-(ix) above; 

provided that, notwithstanding the foregoing, the security interest created by this Agreement shall not extend to, and the term “Collateral” shall
not include, any Excluded Property. 
 “Excluded Property” shall mean the following: (i) governmental licenses or
state or local franchises, charters and authorizations and any other property and assets to the extent that the Collateral Agent may not validly possess a security interest therein under applicable laws (including, without limitation, rules and
regulations of any governmental authority), or the pledge or creation of a security interest in which would require governmental consent, approval, license or authorization, other than to the extent such prohibition or limitation is rendered
ineffective under the anti-assignment provisions of the UCC or other applicable law 

  
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notwithstanding such prohibition or limitation, (ii) any particular asset or right under contract, if the pledge thereof or the security interest therein is prohibited or restricted by
applicable Law (including any requirement thereunder to obtain the consent of any Governmental Authority, regulatory authority or similar third party), other than to the extent such prohibition or restriction is rendered ineffective under the
anti-assignment provisions of the UCC or other applicable law notwithstanding such prohibition or restriction, (iii) “margin stock” as such term is defined in Regulation U of the Board of Governors of the Federal Reserve System of the
United States of America as in effect from time to time, (iv) equity interests in any person other than wholly-owned subsidiaries of the Company to the extent (X) the organizational documents or other agreements with other holders of
equity interests of such person do not permit or restrict the pledge of such equity interest or (Y) the pledge of such equity interests (including any exercise of remedies) would result in a change of control, repurchase obligation or other
adverse consequence to any of the Company or such subsidiary, (v) any lease, license, contract, other agreement or document or any property subject to a purchase money security interest, capital lease obligations or similar arrangement, in each
case to the extent that a grant of a security interest therein would require the consent of a third party (unless such consent has been received), violate or invalidate such lease, license, contract, other agreement or document or purchase money,
capital lease or similar arrangement or create a right of termination in favor of any party thereto other than the Loan Parties after giving effect to the applicable anti-assignment provisions of the UCC or other applicable law, other than proceeds
and receivables thereof, the assignment of which is expressly deemed effective under the UCC or other law notwithstanding such prohibition, (vi) any intent-to-use
trademark application prior to the filing of a “Statement of Use” or “Amendment to Allege Use” with respect thereto, to the extent, if any, that, and solely during the period, if any, in which the grant of a security interest
therein would impair the validity or enforceability of such intent-to-use trademark application under applicable federal law, (vii) assets in circumstances where
the cost, burden, difficulty or consequence of obtaining a security interest or perfection thereof in such assets, including, without limitation, the cost of title insurance, surveys or flood insurance (if necessary), would be excessive in light of
the practical benefit to the Secured Parties afforded thereby as reasonably determined by the Company in consultation with the Required Vendors; provided that “Excluded Property” shall not include any proceeds of any Excluded Property
referred to in the foregoing clauses (i) through (vii) (unless such proceeds would constitute Excluded Property referred to in clauses (i) through (vii)). 

“Obligations” means, collectively, the obligations of the Company to pay the Settlement Amounts as provided for in the Settlement Agreement,
and indemnification and expense reimbursement obligations provided for in the Settlement Agreement and this Agreement. 
 “Security
Interest” and “Security Interests” has the meaning set forth in Section 2. 
 “UCC” means the Uniform
Commercial Code of the State of New York and or any other applicable law of any state or states which has jurisdiction with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of the parties that
defined terms in the UCC should be construed in their broadest sense so that the term “Collateral” will be construed in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that broaden the
definitions, they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones shall be controlling. 

  
 3 

 2. Grant of Security Interest in Collateral. As an inducement for the Secured Parties to enter into the
Settlement Agreement and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations, the Company hereby unconditionally and irrevocably pledges, grants and hypothecates to the Secured
Parties a security interest in and to, a lien upon and a right of set-off against all of their respective right, title and interest of whatsoever kind and nature in and to, the Collateral (each a
“Security Interest” and, collectively, the “Security Interests”). 
 3. Financing Statement Only. For the avoidance
of doubt, notwithstanding anything to the contrarty herein, the Security Interests granted herein shall be perfected only by the filing of appropriate UCC-1 financing statements, and no other perfection action
shall be required or permitted hereunder unless and until the Required Vendors shall have requested otherwise in writing upon and during the occurrence of an Event of Default. 

4. Representations and Warranties. 
 (a)
Each party executing this Agreement represents and warrants that both it and the person signing on behalf of such party are duly authorized to execute the same, and that this Agreement constitutes the legal, valid and binding obligation of such
party, enforceable against such party according to its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization and similar laws of general application relating to or affecting the rights and remedies
of creditors and by general principles of equity. 
 (b) As of the date hereof, the Company represents and warrants to the Secured Parties
as follows: 
 (i) The chief executive office and place of business of the Company where its books of account and records are
kept (other than temporarily at the offices of its attorneys or accountants) as of the date hereof is forth on Schedule 4(b)(i) attached hereto. 

(ii) This Agreement creates in favor of the Secured Parties a valid security interest in the Collateral. 

(iii) The Company was organized and remains organized solely under the laws of the State of Delaware; as of the date hereof the
Company’s organizational identification number is 2723702. 
 (iv) (i) the Company has no trade names except as set
forth on Schedule 4(b)(iv) attached hereto, (ii) the Company has not used any name other than that stated in the preamble hereto or as set forth on Schedule 4(b)(iv) for the preceding five years, and (iii) no entity has
merged with or into the Company or been acquired by the Company within the past five years except as set forth on Schedule 4(b)(iv). 

  
 4 

 5. Covenants of the Company. The Company covenants, until the termination of this
Agreement in accordance with its terms, covenants and agrees with, the Secured Parties as follows: 
 (a) Each Debtor shall at all times
maintain its books of account and records relating to the Collateral at its principal place of business set forth on Schedule 4(b) attached hereto and may not relocate such books of account and records (except in the ordinary course of sales)
or relocate its chief executive office to a new location unless, in any such case, it delivers to the Collateral Agent at least 15 days prior to such relocation written notice of such relocation and the new location thereof (which must be within the
United States). 
 (b) The Company hereby authorizes the Collateral Agent to file one or more financing statements under the UCC, with
respect to the Security Interests, with the proper filing and recording agencies in any jurisdiction reasonably deemed proper by it. 
 (c)
Upon reasonable request of the Collateral Agent (acting upon the direction of the Required Vendors), the Company will sign and deliver to the Collateral Agent at any time or from time to time one or more financing statements pursuant to the UCC in
form reasonably satisfactory to the Collateral Agent and will pay the cost of filing the same in all public offices wherever filing is, or is reasonably deemed by the Collateral Agent to be, necessary to effect the rights and obligations provided
for herein. Without limiting the generality of the foregoing, the Company shall be responsible for all fees, taxes and other amounts necessary to maintain the Security Interests as required hereunder. 

(d) The Company shall maintain with financially sound and reputable insurers, insurance against loss or damage of the kinds and in the amounts
customarily insured against by entities of established reputation having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances by other such entities and otherwise as is prudent for entities
engaged in similar businesses 
 (e) Upon and during the continuance of an Event of Default, following the written request of the Required
Vendors, the Company shall promptly execute and deliver to the Collateral Agent such further deeds, mortgages, assignments, security agreements, financing statements or other instruments, documents, certificates and assurances and take such further
action as the Required Vendors may from time to time request in writing and may in their reasonable discretion deem necessary to perfect, protect or enforce the Security Interests. 

(f) Upon and during the continuance of an Event of Default, following the written request of the Required Vendors, the Company shall permit
the Collateral Agent and its representatives and agents to inspect the Collateral during normal business hours and upon reasonable prior notice, and to make copies of records pertaining to the Collateral as may be reasonably requested by the
Collateral Agent from time to time. 
 (g) The Company shall at all times preserve and keep in full force and effect its existence and good
standing. 
 (h) The Company will not change its name, type of organization, jurisdiction of organization, organizational identification
number (if it has one), legal or corporate structure, or add any new fictitious name unless it provides at least 15 days prior written notice to the Collateral Agent of such change. 

  
 5 

 (i) To the extent that any Collateral is in the possession of any third party, the Company shall,
upon and during the continuance of an Event of Default, at the written request of the Required Vendors, shall join with the Collateral Agent in notifying such third party of the Secured Parties’ security interest in such Collateral and shall
use commercially reasonable efforts to obtain an acknowledgement and agreement from such third party with respect to the Collateral, in form and substance reasonably satisfactory to the Required Vendors. 

6. Duty to Hold In Trust. Upon and during the continuance of an Event of Default, following the written request of the Required Vendors, the Company
shall, upon receipt of any revenue, income, dividend, interest or other sums subject to the Security Interests, or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in trust
for the Secured Parties and shall forthwith endorse and transfer any such sums or instruments, or both, to the Collateral Agent for distribution to the Secured Parties, pro-rata in proportion to their
respective then-currently outstanding Obligations for application to the satisfaction of the Obligations. 
 7. Rights and Remedies Upon Default.

 (a) Upon and during the continuance of any Event of Default, the Collateral Agent shall have the right to exercise, upon the written
direction of the Required Vendors, all of the remedies conferred hereunder and under the Settlement Agreement, and the Collateral Agent shall have all the rights and remedies of a secured party under the UCC. 

(b) The Collateral Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be
considered adversely to affect the commercial reasonableness of any sale of the Collateral. The Collateral Agent may but is under no obligation to do so (other than as and to the extent provided for in the Settlement Agreement) acting upon the
written direction of the Required Vendors, sell the Collateral without giving any warranties and may specifically disclaim such warranties. 
 8.
Applications of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder or from payments made on account of any insurance policy insuring any portion of the Collateral shall be applied then to
satisfaction of the Obligations pro rata among the Secured Parties (based on then-outstanding Settlement Amounts at the time of any such determination), after which the Secured Parties shall pay to the Company any surplus proceeds. If, upon the
sale, license or other disposition of the Collateral, the proceeds thereof are insufficient to pay all amounts to which the Secured Parties are legally entitled, the Company will be liable for the deficiency. To the extent permitted by applicable
law, the Company waives all claims, damages and demands against the Collateral Agent arising out of the repossession, removal, retention or sale of the Collateral at the direction of the Required Vendors, unless due solely to the gross negligence,
bad faith or willful misconduct of the Collateral Agent as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction. 

9. Responsibility for Collateral. The Company assumes all liabilities and responsibility in connection with all Collateral, and the Obligations shall
in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its unavailability for 

  
 6 

 
any reason. Without limiting the generality of the foregoing, (a) the Collateral Agent (i) has no duty (either before or after an Event of Default) to collect any amounts in respect of
the Collateral or to preserve any rights relating to the Collateral, nor (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b) the Company shall remain obligated
and liable under each contract or agreement included in the Collateral to be observed or performed by the Company thereunder. The Collateral Agent shall not have any obligation or liability under any such contract or agreement by reason of or
arising out of this Agreement or the receipt by the Collateral Agent of any payment relating to any of the Collateral, nor shall the Collateral Agent be obligated in any manner to perform any of the obligations of the Company under or pursuant to
any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment received by the Collateral Agent in respect of the Collateral or as to the sufficiency of any performance by any party under any such contract or
agreement, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to the Collateral Agent or to which the Collateral Agent or may be entitled at any time or
times. 
 10. Security Interests Absolute. All rights of the Secured Parties and all obligations of the Company hereunder, shall be absolute and
unconditional, irrespective of: (a) any change in the time, manner or place of payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the
Settlement Agreement or this Agreement, (b) any exchange, release or non-perfection of any of the Collateral, (c) any action by the Collateral Agent, acting upon the written direction of the Required
Vendors, to obtain, adjust, settle and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral, or (e) any other circumstance which might otherwise constitute a discharge of all or any
part of the Security Interests granted hereby. In the event that at any time any transfer of any Collateral or any payment received by the Secured Parties hereunder shall be deemed by final order of a court of competent jurisdiction to have been a
voidable preference or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise due to any party other than the Secured Parties, then, in any such event, the Company’s obligations
hereunder shall be reinstated. 
 11. Term of Agreement. This Agreement and the Security Interest shall terminate on the date on which all
Obligations (other than contingent indemnification obligations for which no claim has been asserted) have been paid or discharged or as provided in the Settlement Agreement. 

12. Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be made in accordance
with Section 7 of the Settlement Agreement. 
 13. Miscellaneous. 

(a) No course of dealing between the Company and the Collateral Agent, nor any failure to exercise, nor any delay in exercising, on the part
of the Collateral Agent, any right, power or privilege hereunder or under the Settlement Agreement shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. 

  
 7 

 (b) All of the rights and remedies of the Collateral Agent with respect to the Collateral,
whether established hereby or by the Settlement Agreement, this Agreement or by law shall be cumulative and may be exercised singly or concurrently. 

(c) This Agreement, together with the Settlement Agreement, is the complete agreement between the parties with respect to the settlement
contemplated herein and supersedes all prior agreements and understandings with respect thereto. This Agreement may only be modified by a writing signed by the Company and the Collateral Agent (acting upon the written direction of the Required
Vendors). 
 (d) If any clause or provision of this Agreement is determined to be illegal, invalid or unenforceable under any present or
future law by the final judgment of a court of competent jurisdiction, the remainder of this Agreement will not be affected thereby. It is the intention of the parties that if any such provision is held to be invalid, illegal or unenforceable, there
will be added in lieu thereof a provision as similar in terms to such provision as is possible, and that such added provision will be legal, valid and enforceable. 

(e) No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any
such right. 
 (f) The Company may not assign any of its rights or obligations hereunder without the written consent of the Collateral
Agent, acting upon the written direction of the Required Vendors and the Collateral Agent may not assign its rights or obligations hereunder other than in connection with its resignation as Collateral Agent pursuant to Section 13 of
Exhibit C to the Settlement Agreement; any assignment or attempted assignment by any party hereto without the requisite consent shall be null and void. Notwithstanding the foregoing, the Company may assign its rights and obligations hereunder
in connection with a sale of the business, whether through a merger, consolidation, transfer of all or substantially all of its assets, or in a similar transaction. 

(g) This Agreement shall be construed and interpreted in accordance with the laws of the State of New York, and each party hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof for resolution of any dispute regarding, arising from, or in any way relating to this Agreement or the negotiations which gave rise to this Agreement. By executing this Agreement the parties hereto
agree to waive any defense or argument based on lack of personal jurisdiction, inconvenient forum, or any other objection or argument against the exercise of jurisdiction by the State of New York over the issues and parties in this matter. Each
party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement, the Settlement Agreement or the transactions
contemplated hereby or thereby. 

  
 8 

 (h) This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. 

(i) The Company shall indemnify, reimburse and hold harmless the Collateral Agent and its officers, directors, employees and agents (and any
other persons with other titles that have similar functions) (collectively, “Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties, suits, costs and expenses, of any kind or nature, (including fees
relating to the cost of investigating and defending any of the foregoing) imposed on, incurred by or asserted against such Indemnitee by the Company in any way related to or arising from or alleged to arise from this Agreement, the Settlement
Agreement or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses which result from the gross negligence, bad faith or willful misconduct of the Indemnitee as determined by a final, nonappealable
decision of a court of competent jurisdiction. This indemnification provision is in addition to, and not in limitation of, any other indemnification provision in the Settlement Agreement or any other agreement, instrument or other document executed
or delivered in connection herewith or therewith. 
 (j) Nothing in this Agreement shall be construed to subject Collateral Agent to
liability as a partner in the Company or any if its direct or indirect subsidiaries that is a partnership or as a member in the Company or any of its direct or indirect subsidiaries that is a limited liability company, nor shall Collateral Agent be
deemed to have assumed any obligations under any partnership agreement or limited liability company agreement, as applicable, of the Company or any if its direct or indirect subsidiaries or otherwise, unless and until the Collateral Agent exercises
its right to be substituted for the Company as a partner or member, as applicable, pursuant hereto. 
 (k) To the extent that the grant of
the security interest in the Collateral and the enforcement of the terms hereof require the consent, approval or action of any direct or indirect wholly-owned subsidiary of the Company or compliance with any provisions of any of the Organizational
Documents, the Company hereby grants such consent and approval and waives any such noncompliance with the terms of said documents. 

[SIGNATURE PAGES FOLLOW] 

  
 9 

 IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed on
the day and year first above written. 
 COMPANY: 

PRECIPIO, INC. 
  

			
	By:	 	/s/ Ilan Danieli
		 	Name: Ilan Danieli
		 	Title: Chief Executive Officer

 SIGNATURE PAGE TO 

SECURITY AGREEMENT 

 COLLATERAL AGENT: 

COLLATERAL SERVICES LLC 
  

			
	By:	 	/s/ Barbara Mittman
		 	Name: Barbara R. Mittman
		 	Its: Managing Member

 SIGNATURE PAGE TO 

SECURITY AGREEMENT 

 Schedule 4(b)(i) 

Precipio, Inc. 
 4 Science Park 

New Haven, CT 06511 
 Schedule 4(b)(iv) 

On June 29, 2017 the Company changed its name from Transgenomic, Inc. to Precipio, Inc. 

On June 29, 2017 New Haven Labs Inc. (“Merger Sub”) a wholly-owned subsidiary of the Company merged with and into Precipio Diagnostics, LLC,
with Precipio Diagnostics surviving the Merger as a wholly-owned subsidiary of the Company.

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