Document:

Exhibit 10.12

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of September 5th, 2017, is by and
between Avant Diagnostics, Inc., a Nevada corporation with offices located at 217 Perry Parkway, Suite 8, Gaithersburg, MD, 20877
(the “Company”), and Anand Gokel (the “Buyer”).

 

RECITALS

 

A.
The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities
registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and
Rule 506(b) of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange
Commission (the “SEC”) under the 1933 Act.

 

B.
The Company has authorized a new series of senior secured convertible notes of the Company substantially in the form
attached hereto as Exhibit A (the “Notes”), which Notes shall be convertible into shares of
the Company’s Common Stock (as defined below) or shares of series A convertible preferred stock, par value $0.001
per shares (the “Preferred Stock”) of the Company (such shares issuable pursuant to the terms of the
Notes upon conversion or otherwise, collectively, the “Note Conversion Shares”), in accordance with the
terms of the Notes. The Preferred Stock shall have such rights, preferences and designations as set forth in the certificate
of designations to be filed with the Nevada Secretary of State after the Closing Date.

 

C.
Pursuant to the purchase of the Notes, the Company will issue to the Buyer: (i) certain warrants substantially in the form
attached hereto as Exhibit B (the “Warrants”), which Warrants shall be exercisable into
shares of Common Stock (as defined below) of the Company (such shares issuable pursuant to the terms of the Notes upon
conversion or otherwise, collectively, the “Warrant Conversion Shares”), in accordance with the terms of
the Warrants; and (ii) certain Purchase Rights substantially in the form attached hereto as Exhibit C (the “Purchase
Rights”), which Purchase Rights shall be exercisable into shares of Common Stock (as defined herein) of the
Company (such shares issuable pursuant to the terms of the Purchase Rights upon conversion or otherwise, collectively, the “Purchase
Rights Conversion Shares”), in accordance with the terms of the Purchase Rights.

 

D.
The Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, Notes
in the aggregate amount of $75,000.00.

 

E.
The Notes, the Note Conversion Shares, the Warrants, the Warrant Conversion Shares, the Purchase Rights and the Purchase
Rights Conversion Shares are collectively referred to herein as the “Securities.”

 

F.
The Notes will rank senior to all outstanding and future indebtedness of the Company, and its Subsidiaries (as defined below)
and the Notes will be secured by a first priority perfected security interest in the Collateral. This security will be
evidenced by a Pledge Agreement in the form attached as Exhibit D. 

 

AGREEMENT

 

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

 

1.  PURCHASE
AND SALE OF NOTES.

 

(a)  Purchase
of Notes. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company
shall issue and sell to the Buyer, and the Buyer agrees to purchase from the Company on the First Closing a Note in the
original principal amount of $75,000.

 

(b)  First
Closing. The date of the Closing (the “Closing Date”) shall be September 5th, 2017 on which
(or such other date as is mutually agreed to by the Company and the Buyer). As may be used herein “Business
Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are
authorized or required by law to remain closed.

 

     

     

    

 

(c)  Form
of Payment. On the Closing Date, the Buyer shall pay $75,000 to the Company for the Note to be issued and sold to the
Buyer, by wire transfer of immediately available funds. and the Company shall deliver to the Buyer a Note in the principal
amount of $75,000.

 

(d)  Bonus
Equity. Upon delivery of the purchase price for the Notes on the Closing Date, the Company shall issue to the Buyer one
share of the Company’s common stock for every $0.50 of purchased Note.

 

(e)  No
Variable Rate Transactions. While the Note is due and payable, the Company shall not enter into any variable rate
transactions. “Variable Rate Transaction” means a transaction in which the Company (i) issues or sells any debt
or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive, additional
shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon,
and/or varies with, the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance
of such debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being reset at some
future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent
events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into
any agreement, including, but not limited to, an equity line of credit, whereby the Company may sell securities at a future
determined price.

 

(f)  Optional
Redemption. Following the six (6) month anniversary of the Closing Date, the Holder shall have the option to call on the
Company for the redemption of the Note from the Holder, provided that the Company has raised sufficient funds to repay this
Note. In the event of such optional redemption, the Holder shall be paid in the full principal amount and all other accrued
and unpaid interest to the date of redemption.

 

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(g)  Piggyback
Registration Rights. The Company shall include on the next registration statement the Company files with SEC (or on the subsequent
registration statement if such registration statement is withdrawn) all shares of Common Stock issuable upon conversion of the
Note and all shares issuable upon exercise of the Warrant and Purchase Rights, and the bonus equity shares granted (the “Registrable
Securities”). Failure to do so will result in liquidated damages of 25% of the outstanding principal balance of the
Note, but not less than $100,000, being immediately due and payable to the Purchaser at its election in the form of cash payment
provided however if the reason for such non-registration of all or any portion of the Registrable Securities is the result of
either (i) in the case of an underwritten offering, the managing underwriter as set forth below or (ii) SEC Guidance (as defined
below) under Rule 415 or similar rule which limits the number of Registrable Securities which may be included in a registration
statement with respect to Buyer, no liquidated damages will be due and payable in to Buyer as set forth above. Subject to the
terms of this Agreement, the Company shall use its commercially reasonable efforts to keep such registration statement continuously
effective under the 1933 Act until the first to occur of (A) the date that is one (1) year from the date the registration statement
is declared effective by the SEC (the “Cut-Off Date”) and (B) the date that all Registrable Securities
covered by such registration statement (i) have been sold, thereunder or pursuant to Rule 144, or (ii) may be sold without volume
or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current
public information requirement under Rule 144 (the “Effectiveness Period”). Notwithstanding the registration
obligations set forth in this Section, if the SEC informs the Company that all of the Registrable Securities cannot, as a result
of the application of Rule 415, be registered for resale on a single registration statement, the Company agrees to promptly inform
Buyer and use its commercially reasonable efforts to file amendments to any registration statement as required by the SEC, covering
the maximum number of Registrable Securities permitted to be registered by the SEC, on Form 5-1 or such other form available to
register for resale the Registrable Securities as a secondary offering; provided, however, that prior to filing such
amendment, the Company shall be obligated to use diligent efforts to advocate with the SEC for the registration of all of the
Registrable Securities in accordance with any (i) any publicly-available written or oral guidance of the SEC staff, or any comments,
requirements or requests of the SEC staff and (ii) the Securities Act (collectively, “SEC Guidance”), including
without limitation, Compliance and Disclosure Interpretation 612.09. Notwithstanding any other provision of this Agreement and
subject to the payment of liquidated damages set forth above, if the SEC or any SEC Guidance sets forth a limitation on the number
of Registrable Securities permitted to be registered on a particular registration statement (and notwithstanding that the Company
used diligent efforts to advocate with the Commission for the registration of all or a greater portion of Registrable Securities),
unless otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be
registered on such Registration Statement will be reduced as follows: (i) First, the Company shall reduce or eliminate any securities
to be included by any person other than Buyer; (ii) Second, subject to written approval by Buyer, the Company shall reduce the
Registrable Securities. In the event of a cutback hereunder, the Company shall give the Buyer at least five (5) Business Days
prior written notice. In the event the Company amends the any registration statement in accordance with the foregoing, the Company
will use its commercially reasonable efforts to file with the SEC, as promptly as allowed by the SEC or SEC Guidance provided
to the Company or to registrants of securities in general, one or more registration statements on Form 5-1 or such other form
available to register for resale those Registrable Securities that were not registered on any prior registration statement filed
with the SEC. In addition, if any rights granted pursuant to this Section  involves the inclusion of securities in connection
with an underwritten offering, and the managing underwriter (or, in the case of an offering that is not underwritten, an investment
banker) shall advise the Company that, in its opinion, the number of securities requested and otherwise proposed to be included
on such registration statement exceeds the number which can be sold in such offering without adversely affecting the marketability
of the offering, the Company will include in such Registration to the extent of the number which the Company is so advised can
be sold in such offering, first, the securities the Company proposes to sell for its own account on such registration statement
and second, the Registrable Securities of the Buyer requesting to be included on such registration statement.

 

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(j)  Pledge
Agreement. The Company shall grant a security interest in all of its assets (“Collateral”) to Holder to
secure Company’s repayment of the Note. The security interest shall be memorialized in the Pledge Agreement and shall be
in such form as attached hereto as Exhibit D.

 

(k)  Future
Financing. While the Note is due and payable, any future fmancing by Company, whether in debt or equity, shall require
prior written consent of holders of a majority of the Notes.

 

2.ISSUANCE
OF THE WARRANTS AND PURCHASE RIGHTS.

 

(a)  Issuance
of the Warrants. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the
Company shall issue to the Buyer, at any closing Warrants to purchase common shares of the Company at $0.06 (six cents) per
share. The amount of the warrants shall equal 200% (two hundred percent) of the principal of the issued Note and warrants
shall be exercisable for a period of three (3) years from the respective closing date and shall be in such form as attached
hereto as Exhibit B.

 

(b)  Issuance
of the Purchase Rights. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below,
the Company shall issue, at any closing, to the Buyer Purchase Rights to purchase common shares of the Company at $0.06 (six
cents) per share. The amount of the Purchase Rights shall equal 800% (eight hundred percent) of the principal of the issued
Note and the Purchase Rights shall be exercisable for a period of thirty-six (36) months from the respective closing date and
shall be in such form as attached hereto as Exhibit C. The shares issued in connection with Purchase Rights cannot be sold
into the market for a period of eighteen (18) months from the respective closing date.

 

3.BUYER’S
REPRESENTATIONS AND WARRANTIES.

 

The
Buyer represents and warrants to the Company with respect to only itself that, as of the date hereof and as of the Closing Date:

 

(a)  Organization;
Authority. The Buyer is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

(b)   No
Public Sale or Distribution. The Buyer (i) is acquiring its Note, Warrant and Purchase Rights and (ii) upon conversion and/or
exercise of its Note, Warrant and/or Purchase Rights will acquire the Note Conversion Shares, the Warrant Conversion Shares and/or
the Purchase Rights Conversion Shares, issuable upon conversion and/or exercise thereof, respectively, in each case, for its own
account and not with a view towards, or for resale in connection with, the public sale or distribution thereof in violation of
applicable securities laws, except pursuant to sales registered or exempted under the 1933 Act; provided, however, by making the
representations herein, the Buyer does not agree, or make any representation or warranty, to hold any of the Securities for any
minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant
to a registration statement or an exemption from registration under the 1933 Act. The Buyer does not presently have any agreement
or understanding, directly or indirectly, with any Person to distribute any of the Securities in violation of applicable securities
laws. For purposes of this Agreement, “Person” means an individual, a limited liability company, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any Governmental Entity or any department
or agency thereof

 

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(c)  Accredited
Investor Status. At the time the Buyer was offered the Securities, it was, and as of the date hereof it is, and as of the
Closing Date and on each date on which it converts the Notes or exercises any Warrants or Purchase Rights, it will be an
“accredited investor” as that term is defined in Rule 501(a) of Regulation D promulgated under the 1933
Act.

 

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

 

(e)   Information.
The Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances and operations
of the Company and materials relating to the offer and sale of the Securities that have been requested by the Buyer. The Buyer
and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other
due diligence investigations conducted by the Buyer or its advisors, if any, or its representatives shall modify, amend or affect
the Buyer’s right to rely on the Company’s representations and warranties contained herein. The Buyer understands
that its investment in the Securities involves a high degree of risk. The Buyer has sought such accounting, legal and tax advice
as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

 

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

 

(g)  Transfer
or Resale. The Buyer understands that: (i) the Securities have not been and are not being registered under the 1933 Act
or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently
registered thereunder, (B) the Buyer shall have delivered to the Company (if requested by the Company) an opinion of counsel,
in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be
sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Buyer provides the Company with
reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated
under the 1933 Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the
Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144
is not applicable, any resale of the Securities under circumstances in which the seller (or the Person through whom the sale
is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other
exemption under the 1933 Act or the rules and regulations of the SEC promulgated thereunder; and (iii) except as otherwise
set forth herein, neither the Company nor any other Person is under any obligation to register the Securities under the 1933
Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. Notwithstanding the
foregoing, the Securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement
secured by the Securities and such pledge of Securities shall not be deemed to be a transfer, sale or assignment of the
Securities hereunder, and if the Buyer effects a pledge of Securities, the Buyer will not be required to provide the Company
with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction
Document (as defined in Section 3(b)), including, without limitation, this Section 2(g).

 

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(h)   Validity;
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Buyer and shall
constitute the legal, valid and binding obligations of the Buyer enforceable against the Buyer in accordance with their
respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the
enforcement of applicable creditors’ rights and remedies.

 

(i)  No
Conflicts. The execution, delivery and performance by the Buyer of this Agreement and the consummation by the Buyer of the
transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of the Buyer,
or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which the Buyer is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws) applicable to the Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts,
defaults, rights or violations which could not, individually or in the aggregate, reasonably be expected to have a material adverse
effect on the ability of the Buyer to perform its obligations hereunder.

 

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

 

(k)  General
Solicitation. Such Buyer is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented
at any seminar or any other general solicitation or general advertisement.

 

4.  REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to the Buyer that, as of the date hereof and as of the Closing Date:

 

(a)  Organization
and Qualification. The Company is duly organized and validly existing and in good standing under the laws of the
jurisdiction in which it is formed, and has the requisite power and authority to carry on its business as now being conducted
and as presently proposed to be conducted. The Company is duly qualified as a foreign entity to do business and is in good
standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such
qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably
be expected to have a Material Adverse Effect (as defined below). As used in this Agreement, “Material Adverse
Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations
(including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually
or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or any other
agreements or instruments to be entered into in connection herewith or therewith or (iii) the authority or ability of the
Company or any of its Subsidiaries to perform any of their respective obligations under any of the Transaction Documents (as
defined below). “Subsidiaries” means any Person in which the Company, directly or indirectly, controls or
operates all or any part of the business, operations or administration of such Person, and each of the foregoing, is
individually referred to herein as a “Subsidiary.”

 

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(b)  Authorization;
Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations under this
Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof. The
execution and delivery of this Agreement and the other Transaction Documents by the Company, and the consummation by the Company
of the transactions contemplated hereby and thereby have been duly authorized by the Company’s board of directors or other
governing body, as applicable, and (other than the potential filing with the SEC of a Form D and any other filings as may be required
by any state securities agencies) no further filing, consent or authorization is required by the Company, its Subsidiaries, their
respective boards of directors or their stockholders or other governing body. This Agreement has been, and the other Transaction
Documents to which it is a party will be prior to the Closing, duly executed and delivered by the Company, and each constitutes
the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its respective terms,
except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities law and
public policy, and the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding therefor may be brought. “Transaction Documents”
means, collectively, this Agreement, the Notes, the Warrants, the Purchase Rights, any Pledge documents creating a security
interest in the assets of the Company, and each of the other agreements and instruments entered into or delivered by any of the
parties hereto in connection with the transactions contemplated hereby and thereby, as may be amended from time to time.

 

(c)  Issuance
of Securities. The issuance of the Notes are duly authorized and upon issuance in accordance with the terms of the Transaction
Documents shall be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, mortgages, defects,
claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances (collectively
“Liens”) with respect to the issuance thereof. Upon issuance or conversion in accordance with the Notes, Warrants,
or Purchase Rights, the Note Conversion Shares, Warrant Conversion Shares, and/or Purchase Right Conversion Shares, respectively,
when issued and payment is made, if required, will be validly issued, fully paid and non-assessable and free from all preemptive
or similar rights or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder
of Common Stock. Subject to the accuracy of the representations and warranties of the Buyer in this Agreement, the offer and issuance
by the Company of the Securities is exempt from registration under the 1933 Act.

 

(d)  No
Conflicts. Except as otherwise set forth on Schedule 4(d), the execution, delivery and performance of the Transaction Documents
by the Company and its Subsidiaries and the consummation by the Company of the transactions contemplated hereby and thereby will
not (i) result in a violation of the Articles of Incorporation (as defined below) (including, without limitation, any certificate
of designation contained therein), By-Laws (as defined below), certificate of formation, memorandum of association, articles of
association, bylaws or other organizational documents of the Company , or any capital stock or other securities of the Company,
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in
any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material agreement,
indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law,
rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state securities laws and regulations
and including all applicable foreign, federal and state laws, rules and regulations) applicable to the Company or by which any
property or asset of the Company is bound or affected other than, in the case of clause (ii) above, such conflicts, defaults or
rights that could not reasonably be expected to have a Material Adverse Effect.

 

(e)  Consents. The
Company is not required to obtain any consent from, authorization or order of, or make any filing or registration with (other
than the potential filing with the SEC of any periodic report under the Company’s reporting obligations or a Form D and
any other filings as may be required by any federal or state securities agencies or the filing of any registration
statement pursuant to which the Buyer shall have any registration rights as contemplated by this Agreement), any Governmental
Entity (as defined below) or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver
or perform any of its respective obligations under or contemplated by the Transaction Documents, in each case, in accordance
with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the Company is
required to obtain pursuant to the preceding sentence have been or will be obtained or effected on or prior to the First
Closing Date, and the Company is not aware of any facts or circumstances which might prevent the Company from obtaining or
effecting any of the registration, application or filings contemplated by the Transaction Documents. “Governmental
Entity” means any nation, state, county, city, town, village, district, or other political jurisdiction of any
nature, federal, state, local, municipal, foreign, or other government, governmental or quasi-governmental authority of any
nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal),
multinational organization or body; or body exercising, or entitled to exercise, any administrative, executive, judicial,
legislative, police, regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing,
including any entity or enterprise owned or controlled by a government or a public international organization or any of the
foregoing.

 

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(f)  No
Integrated Offering. None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on their behalf
has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would require registration of any of the Securities under the 1933 Act, whether through integration with prior offerings
or otherwise, or cause this offering of the Securities to require approval of stockholders of the Company for purposes of the
1933 Act or under any applicable stockholder approval provisions, including, without limitation, under the rules and regulations
of any exchange or automated quotation system on which any of the securities of the Company are listed or designated for quotation.
None of the Company, its Subsidiaries, their affiliates nor any Person acting on their behalf will take any action or steps that
would require registration of any of the Securities under the 1933 Act or cause the offering of any of the Securities to be integrated
with other offerings of securities of the Company.

 

(g)  No
Undisclosed Events, Liabilities, Developments or Circumstances. Except as otherwise set forth on Schedule 4(g), no event,
liability, development or circumstance has occurred or exists, or is reasonably expected to exist or occur with respect to the
Company, any of its Subsidiaries or any of their respective businesses, properties, liabilities, prospects, operations (including
results thereof) or condition (financial or otherwise), that (i) would be required to be disclosed by the Company under applicable
securities laws on a registration statement on Form 5-1 filed with the SEC relating to an issuance and sale by the Company of
its Common Stock and which has not been publicly announced, (ii) could have a material adverse effect on the Buyer’s investment
hereunder or (iii) could have a Material Adverse Effect.

 

(h)  Conduct
of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of or in default
under its Articles of Incorporation, any certificate of designation, preferences or rights of any other outstanding series of
preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation,
memorandum of association, articles of association, Articles of Incorporation or Articles of Incorporation or bylaws, respectively.
Except as otherwise set forth on Schedule 4(h), neither the Company nor any of its Subsidiaries is in violation of any judgment,
decree or order or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither
the Company nor any of its Subsidiaries will conduct its business in violation of any of the foregoing, except in all cases for
possible violations which could not, individually or in the aggregate, have a Material Adverse Effect.

 

(i)  Transfer
Taxes. On a closing date, all stock transfer or other taxes (other than income or similar taxes) which are required to be
paid in connection with the issuance, sale and transfer of the Securities to be sold to the Buyer hereunder will be, or will have
been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

 

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

 

(k)  Money
Laundering. The Company and its Subsidiaries are in material compliance with, and have not previously violated, the USA
Patriot Act of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, without
limitation, the laws, regulations and Executive Orders and sanctions programs administered by the U.S. Office of Foreign
Assets Control, including, but not limited, to (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg.
49079 (2001)); and (ii) any regulations contained in 31 CFR, Subtitle B, Chapter V.

 

    	 	8	 

     

    

 

(1)  No
Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the
1933 Act (“Regulation D Securities”), none of the Company, any of its predecessors, any affiliated issuer,
any director, executive officer, other officer of the Company participating in the offering contemplated hereby, any
beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of
voting power, nor any promoter (as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any
capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer Covered
Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to
(viii) under the 1933 Act (a “Disqualification Event”), except for a Disqualification Event covered by
Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject
to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule
506(e), and has furnished to the Buyers a copy of any disclosures provided thereunder.

 

(m)  Other
Covered Persons. The Company is not aware of any Person that has been or will be paid (directly or indirectly)
remuneration for solicitation of Buyer or potential purchasers in connection with the sale of any Securities.

 

(n)  Shell
Company Status. The Company was an issuer identified in, or subject to, Rule 144(i).

 

5.  COVENANTS.

 

(a)  Reasonable
Best Efforts. The Buyer shall use its reasonable best efforts to timely satisfy each of the covenants hereunder and conditions
to be satisfied by it as provided in Section 6 of this Agreement. The Company shall use its reasonable best efforts to timely
satisfy each of the covenants hereunder and conditions to be satisfied by it as provided in Section 7 of this Agreement.

 

(b)  Regulatory
Filings. The Company shall make all necessary filings with respect to the Securities as required under securities laws. The
Company shall, on or before the Closing Date, take such action as the Company shall reasonably determine is necessary in order
to obtain an exemption for, or to, qualify the Securities for sale to the Buyer at the Closing pursuant to this Agreement under
applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification),
and shall provide evidence of any such action so taken to the Buyer on or prior to the Closing Date. Without limiting any other
obligation of the Company under this Agreement, the Company shall timely make all filings and reports relating to the offer and
sale of the Securities required under all applicable securities laws (including, without limitation, all applicable federal securities
laws and all applicable “Blue Sky” laws), and the Company shall comply with all applicable foreign, federal, state
and local laws, statutes, rules, regulations and the like relating to the offering and sale of the Securities to the Buyer.

 

(c)  Reporting
Status. Subsequent to the closings, the Company shall use its best efforts to timely file all reports required to be filed
with the SEC pursuant to the 1934 Act.

 

(d)  Use
of Proceeds. The Company will use the proceeds from the sale of the Securities for general corporate purposes.

 

(e)  Fees.
The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, transfer agent
fees, DTC (if applicable) fees or broker’s commissions (other than for Persons engaged by the Buyer) relating to or arising
out of the transactions contemplated hereby. Except as otherwise set forth in the Transaction Documents, each party to this Agreement
shall bear its own expenses in connection with the sale of the Securities to the Buyer.

 

(f)  Pledge
of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and agrees that
the Securities may be pledged by the Investor in connection with a bona fide margin agreement or other loan or financing arrangement
that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities
hereunder, and the Investor effecting a pledge of Securities will not be required to provide the Company with any notice thereof
or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document.

 

    	 	9	 

     

    

 

(g)  Conduct
of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or
regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect.

 

(h)  Conversion
and/or Exercise Procedures. The form of Conversion Notice (as defined in the Notes) included in the Notes and the Exercise
Notice (as defined in the Warrants and Purchase Rights) included in each of the Warrants and Purchase Rights, respectively, set
forth the totality of the procedures required of the Buyer in order to convert the Notes and/or exercise the Warrants and/or Purchase
Rights, respectively. The Company shall honor conversions of the Notes and/or exercise of the Warrants and/or Purchase Rights,
respectively, and shall deliver the Note Conversion Shares, the Warrant Conversion Shares and/or the Purchase Rights Conversion
Shares, respectively, in accordance with the terms, conditions and time periods set forth in the Notes, the Warrants and the Purchase
Rights, respectively.

 

(i)  Regulation
M. The Company will not take any action prohibited by Regulation M under the 1934 Act, in connection with the distribution
of the Securities contemplated hereby.

 

(j)  General
Solicitation. None of the Company, any of its affiliates (as defmed in Rule 501(b) under the 1933 Act) or any person acting
on behalf of the Company or such affiliate will solicit any offer to buy or offer or sell the Securities by means of any form
of general solicitation or general advertising within the meaning of Regulation D, including: (i) any advertisement, article,
notice or other communication published in any newspaper, magazine or similar medium or broadcast over television or radio; and
(ii) any seminar or meeting whose attendees have been invited by any general solicitation or general advertising.

 

(k)  No
Short Sales. So long as any Securities remain outstanding, the Buyer (or its successors or assigns) (the “Restricted
Persons”) shall not, directly or indirectly, engage in any “Short Sales” of the Common Stock (other than
any sale marked “short exempt” or any sale of shares deemed to be held “long” hereunder). For purposes
hereof, “Short Sales” shall mean “short sales” as defined in Rule 200 promulgated under Regulation
SHO under the 1934 Act (other than any sale marked “short exempt” or any sale of shares deemed to be held “long”
hereunder). Notwithstanding the foregoing, no “Short Sale” or “short” position shall be deemed to exist,
as a result of any failure by the Company (or its agents) to deliver Note Conversion Shares upon conversion of the Notes, Warrant
Conversion Shares and/or Purchase Right Conversion Shares upon the exercise of the Warrants and/or Purchase Rights, as applicable,
or to timely remove any legend from any such securities, to the Restricted Person converting such Notes, exercising such Warrants
and/or Purchase Rights or removing legends from any shares of Common Stock issuable upon conversion and/or exercise, as applicable.
For purposes of determining whether the Restricted Person is deemed to have a “long” position in the Common Stock,
at any given time of determination, the Restricted Person shall be deemed to hold “long” all Common Stock that is
either (i) then owned by the Restricted Person, if any, or (ii) issuable to the Restricted Person as Note Conversion Shares, Warrant
Conversion Shares, and/or Purchase Right Conversion Shares, as applicable, pursuant to the terms of the Notes, Warrants and/or
Purchase Rights, respectively then held by the Restricted Person, if any, pursuant to a valid Conversion Notice and/or Exercise
Notice delivered to the Company on or prior to the applicable time of determination. Notwithstanding the foregoing, nothing contained
herein shall (without implication that the contrary would otherwise be true) prohibit any Restricted Person from selling “long”
(as defmed under Rule 200 promulgated under Regulation SHO under the 1934 Act) the Securities or any other Common Stock then owned
by the Restricted Person.

 

5.  REGISTER;
TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)  Register. The
Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may
designate by notice to the holder of Securities), a register for the Notes, Warrants and Purchase Rights in which the Company
shall record the name and address of the Person in whose name the Notes, Warrants and Purchase Rights have been issued
(including the name and address of each transferee), the principal amount of the Notes and the number of shares represented
by the Warrants and Purchase Rights, respectively, held by the Person and the number of Note Conversion Shares issuable
pursuant to the terms of the Notes and number of Warrant Conversion Shares and Purchase Right Conversion Shares issuable
pursuant to the terms of the Warrants and/or the Purchase Rights, as applicable, held by the Person. The Company shall keep
the register open and available at all times during business hours for inspection of the Buyer or its legal
representatives.

 

    	 	10	 

     

    

 

(b)  Legends.
The Buyer understands that the Securities have been issued (or will be issued in the case of the Note Conversion Shares, Warrant
Conversion Shares, or Purchase Right Conversion Shares) pursuant to an exemption from registration or qualification under the
1933 Act and applicable state securities laws, and except as set forth below, the Securities shall bear any legend as required
by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of such stock certificates):

 

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

 

(c)  Removal
of Legends. Certificates evidencing Securities shall not be required to contain the legend set forth in Section 5(c) above
or any other legend (i) while a registration statement covering the resale of such Securities is effective under the 1933 Act
(a “Registration Statement”), (ii) following any sale of such Securities pursuant to Rule 144 (assuming the
transferor is not an affiliate of the Company), (iii) if such Securities are eligible to be sold, assigned or transferred under
Rule 144 (provided that the Buyer provides the Company with reasonable assurances that such Securities are eligible for sale,
assignment or transfer under Rule 144 which shall not include an opinion of the Buyer’s counsel), (iv) in connection with
a sale, assignment or other transfer (other than under Rule 144), provided that the Buyer provides the Company with an opinion
of counsel to the Buyer, in a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities
may be made without registration under the applicable requirements of the 1933 Act or (v) if such legend is not required under
applicable requirements of the 1933 Act (including, without limitation, controlling judicial interpretations and pronouncements
issued by the SEC). If a legend is not required pursuant to the foregoing, the Company shall no later than three (3) Business
Days (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement
of a trade initiated on the date the Buyer delivers such legended certificate representing such Securities to the Company) following
the delivery by the Buyer to the Company or the transfer agent (with notice to the Company) of a legended certificate representing
such Securities (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the
reissuance and/or transfer, if applicable), together with any other deliveries from the Buyer as may be required above in this
Section 5(d), as directed by the Buyer, either: (A) provided that the Company’s transfer agent is participating in the DTC
Fast Automated Securities Transfer Program and such securities are DTC eligible and such Securities are Note Conversion Shares,
Warrant Conversion Shares, or Purchase Right Conversion Shares, credit the aggregate number of shares of Common Stock to which
the Buyer shall be entitled to the Buyer’s or its designee’s balance account with DTC through its Deposit/Withdrawal
at Custodian system or (B) if the Company’s transfer agent is not participating in the DTC Fast Automated Securities Transfer
Program, issue and deliver (via reputable overnight courier) to the Buyer, a certificate representing such Securities that is
free from all restrictive and other legends, registered in the name of the Buyer or its designee (the date by which such credit
is so required to be made to the balance account of the Buyer’s or the Buyer’s designee with DTC or such certificate
is required to be delivered to the Buyer pursuant to the foregoing is referred to herein as the “Required Delivery Date”,
and the date such shares of Common Stock are actually delivered without restrictive legend to the Buyer or the Buyer’s
designee with DTC, as applicable, the “Share Delivery Date”). The Company shall be responsible for any transfer agent
fees or DTC fees with respect to any issuance of Securities or the removal of any legends with respect to any Securities in accordance
herewith.

 

    	 	11	 

     

    

 

(d)  Failure
to Timely Deliver; Buy-In. If the Company fails to, for any reason or for no reason, to issue and deliver (or cause to be
delivered) to the Buyer (or its designee) by the Required Delivery Date, either (I) if the Transfer Agent is not participating
in the DTC Fast Automated Securities Transfer Program or the Company’s securities are not DTC eligible, a certificate for
the number of Note Conversion Shares, Warrant Conversion Shares, or Purchase Right Conversion Shares to which the Buyer is entitled
and register such Note Conversion Shares, Warrant Conversion Shares, or Purchase Right Conversion Shares on the Company’s
share register or, (II) if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, to credit
the balance account of the Buyer or the Buyer’s designee with DTC for such number of Note Conversion Shares, Warrant Shares,
or Purchase Right Shares submitted for legend removal by the Buyer pursuant to Section 5(d) above (the event described in the
immediately foregoing clause (I) above, a “Delivery Failure”),then, in addition to all other remedies available
to the Buyer, the Company shall pay in cash to the Buyer on each day after the Share Delivery Date and during such Delivery Failure
an amount equal to 2% of the product of (A) the sum of the number of shares of Common Stock not issued to the Buyer on or prior
to the Required Delivery Date and to which the Buyer is entitled, and (B) any trading price of the Common Stock selected by the
Buyer in writing as in effect at any time during the period beginning on the date of the delivery by the Buyer to the Company
of the applicable Note Conversion Shares, Warrant Conversion Shares, or Purchase Right Conversion Shares and ending on the applicable
Share Delivery Date. In addition to the foregoing, if on or prior to the Required Delivery Date either (I) if the Transfer Agent
is not participating in the DTC Fast Automated Securities Transfer Program, the Company shall fail to issue and deliver a certificate
to the Buyer and register such shares of Common Stock on the Company’s share register or, if the Transfer Agent is participating
in the DTC Fast Automated Securities Transfer Program, credit the balance account of the Buyer or the Buyer’s designee with
DTC for the number of shares of Common Stock to which the Buyer submitted for legend removal by the Buyer pursuant to Section
5(d) above (ii) below or (II) a Delivery Failure occurs, and if on or after such Trading Day the Buyer purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Buyer of shares of Common Stock submitted
for legend removal by the Buyer pursuant to Section 5(d) above that the Buyer anticipated receiving from the Company (a “Buy-In”),
then the Company shall, within three (3) Business Days after the Buyer’s request and in the Buyer’s discretion,
either (i) pay cash to the Buyer in an amount equal to the Buyer’s total purchase price (including brokerage commissions
and other out-of-pocket expenses, if any, for the shares of Common Stock so purchased) (the “Buy-In Price”), at
which point the Company’s obligation to so deliver such certificate or credit the Buyer’s balance account shall terminate
and such shares shall be cancelled, or (ii) promptly honor its obligation to so deliver to the Buyer a certificate or certificates
or credit the balance account of the Buyer or the Buyer’s designee with DTC representing such number of shares of Common
Stock that would have been so delivered if the Company timely complied with its obligations hereunder and pay cash to the Buyer
in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Note Conversion
Shares, Warrant Shares, or Purchase Right Shares that the Company was required to deliver to the Buyer by the Required Delivery
Date multiplied by (B) the lowest Closing Sale Price (as defined in the Notes) of the Common Stock on any Trading Day during the
period commencing on the date of the delivery by the Buyer to the Company of the applicable Note Conversion Shares, Warrant Shares,
or Purchase Right Shares and ending on the date of such delivery and payment under this clause (ii). Nothing shall limit the Buyer’s
right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing
shares of Common Stock (or to electronically deliver such shares of Common Stock) as required pursuant to the terms hereof. Notwithstanding
anything herein to the contrary, with respect to any given Delivery Failure, this Section 5(e) shall not apply to the Buyer to
the extent the Company has already paid such amounts in full to the Buyer with respect to such Delivery Failure, as applicable,
pursuant to the analogous sections of the Note held by the Buyer.

 

    	 	12	 

     

    

 

6.  CONDITIONS
TO THE COMPANY’S OBLIGATION TO SELL.

 

(a)  The
obligation of the Company hereunder to issue and sell the Notes to the Buyer at any Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions, provided that these conditions are for the
Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing the Buyer with
prior written notice thereof:

 

(i)  The
Buyer shall have executed each of the other Transaction Documents to which it is a party and delivered the same to the
Company.

 

(ii)  The
Buyer shall have delivered to the Company the Purchase Price for the Note being purchased by the Buyer at the Closing by wire
transfer of immediately available.

 

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

 

7.  CONDITIONS
TO THE BUYER’S OBLIGATION TO PURCHASE.

 

(a)  The
obligation of the Buyer hereunder to purchase its Note at the Closing is subject to the satisfaction, at or before the
Closing Date, of each of the following conditions, provided that these conditions are for the Buyer’s sole benefit and
may be waived by the Buyer at any time in its sole discretion by providing the Company with prior written notice
thereof:

 

(i)  The
Company shall have duly executed and delivered to the Buyer each of the Transaction Documents to which it is a party and the
Company shall have duly executed and delivered to the Buyer a Note being purchased by the Buyer at any Closing pursuant to
this Agreement; and

 

(ii)  Since
the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or
result in a Material Adverse Effect.

 

8.
MISCELLANEOUS.

 

(a)  Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of Nevada, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of Nevada or any other jurisdictions) that would cause the application of the laws
of any jurisdictions other than the State of Nevada. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES
NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

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

 

(c)  Headings;
Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine,
feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof’ and words of like import refer to this entire Agreement instead of just the provision
in which they are found.

 

    	 	13	 

     

    

 

(d)  Severability;
Maximum Payment Amounts. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or
unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable
shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability
of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so
modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof
and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective
expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred
upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s). Notwithstanding anything to the contrary contained in this Agreement or any other Transaction Document (and without
implication that the following is required or applicable), it is the intention of the parties that in no event shall amounts and
value paid by the Company and/or any of its Subsidiaries (as the case may be), or payable to or received by the Buyers, under
the Transaction Documents (including without limitation, any amounts that would be characterized as “interest” under
applicable law) exceed amounts permitted under any applicable law. Accordingly, if any obligation to pay, payment made to the
Buyer, or collection by the Buyer pursuant the Transaction Documents is finally judicially determined to be contrary to any such
applicable law, such obligation to pay, payment or collection shall be deemed to have been made by mutual mistake of the Buyer,
the Company and its Subsidiaries and such amount shall be deemed to have been adjusted with retroactive effect to the maximum
amount or rate of interest, as the case may be, as would not be so prohibited by the applicable law. Such adjustment shall be
effected, to the extent necessary, by reducing or refunding, at the option of the Buyer, the amount of interest or any other amounts
which would constitute unlawful amounts required to be paid or actually paid to the Buyer under the Transaction Documents. For
greater certainty, to the extent that any interest, charges, fees, expenses or other amounts required to be paid to or received
by the Buyer under any of the Transaction Documents or related thereto are held to be within the meaning of “interest”
or another applicable term to otherwise be violative of applicable law, such amounts shall be pro-rated over the period of time
to which they relate.

 

(e)  Entire
Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and
thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Buyer,
the Company, its Subsidiaries, their affiliates and Persons acting on their behalf, including, without limitation, any transactions
by the Buyer with respect to Common Stock or the Securities, and the other matters contained herein and therein, and this Agreement,
the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein
and therein contain the entire understanding of the parties solely with respect to the matters covered herein and therein; For
clarification purposes, the Recitals are part of this Agreement. No provision of this Agreement may be amended other than by an
instrument in writing signed by the Company and the Buyer.

 

(f)  Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement
must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by
the sending party) or electronic mail; or (iii) one (1) Business Day after deposit with an overnight courier service with next
day delivery specified, in each case, properly addressed to the party to receive the same. The addresses, facsimile numbers and
e-mail addresses for such communications shall be:

 

If
to the Company:

Avant
Diagnostics, Inc.

217
Perry Parkway

Suite
8

Gaithersburg,
MD 20977

Attention:
Philippe Goix, Chief Executive Officer

 

With
a copy (for informational purposes only) to:

 

Sheppard,
Mullin, Richter & Hampton LLP

30
Rockefeller Plaza, 39th Floor

New York, New York 10112

 

    	 	14	 

     

    

 

Telephone:
(212) 653-8700

Facsimile: (917) 438-6137

Attn:
Stephen A. Cohen, Esq.

E-Mail:
scohen@sheppardmullin.com

 

If
to the Buyer, to its address, e-mail address and facsimile number set forth on the Schedule of Buyers, with copies to the Buyer’s
representatives as set forth on the Schedule of Buyers, or to such other address, e-mail address and/or facsimile number and/or
to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5)
days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent,
waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine or e-mail containing
the time, date, recipient facsimile number and, with respect to each facsimile transmission, an image of the first page of such
transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(g)  Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns, including any purchasers of any of the Notes. The Company shall not assign this Agreement or any rights or obligations
hereunder without the prior written consent of the Buyer. The Buyer may assign some or all of its rights hereunder in connection
with any transfer of any of its Securities without the consent of the Company, in which event such assignee shall be deemed to
be a buyer hereunder with respect to such assigned rights.

 

(h)  No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(i)  Survival.
The representations, warranties, agreements and covenants shall survive any closing. The Buyer shall be responsible only for
its own representations, warranties, agreements and covenants hereunder.

 

(j)  Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

(k)  Construction.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the
generality or applicability of a more general representation or warranty. Each and every reference to share prices, shares of
Common Stock and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for any stock
splits, stock dividends, stock combinations, recapitalizations or other similar transactions that occur with respect to the Common
Stock after the date of this Agreement. It is expressly understood and agreed that for all purposes of this Agreement, and without
implication that the contrary would otherwise be true, neither transactions nor purchases nor sales shall include the location
and/or reservation of borrowable shares of Common Stock.

 

(1)  Remedies. The
Buyer and in the event of assignment by the Buyer of its rights and obligations hereunder, each holder of Securities,
shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such holders have
been granted at any time under any other agreement or contract and all of the rights which such holders have under any law.
Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically
(without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and
to exercise all other rights granted by law.

 

(m)  Withdrawal
Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the
Transaction Documents, whenever the Buyer exercises a right, election, demand or option under a Transaction Document and the
Company or any Subsidiary does not timely perform its related obligations within the periods therein provided, then the Buyer
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company or such Subsidiary (as
the case may be), any relevant notice, demand or election in whole or in part without prejudice to its future actions and
rights.

 

(n)  Saturdays,
Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the
next succeeding Business Day.

 

[signature
pages follow]

 

    	 	15	 

     

    

 

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

 

	 	COMPANY:
	 	 	 
	 	AVANT DIAGNOSTICS, INC.
	 	 	 
	 	By:	/s/
    Philippe Goix
	 	 	Name: Philippe Goix
	 	 	Title:   Chief Executive Officer

  

    	 	16	 

     

    

 

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

 

	 	BUYER:
	 	 	 
	 	By	/s/ Anand Gokel
	 	 	Name: Anand Gokel
	 	 	Title:   Individual

 

    	 	17	 

     

    

 

EXHIBIT
A

 

SENIOR
SECURED CONVERTIBLE PROMISSORY NOTE

 

    	 	18	 

     

    

 

EXHIBIT
B

 

WARRANTS

 

    	 	19	 

     

    

  

EXHIBIT
C

 

PURCHASE
RIGHTS

 

    	 	20	 

     

    

 

EXHIBIT
D

 

PLEDGE
AGREEMENT

 

    	 	21	 

     

    

 

AVANT
DIAGNOSTICS, INC. DISCLOSURE SCHEDULE

 

This
disclosure schedule (this “Disclosure Schedule”) delivered by Avant Diagnostics, Inc., a Nevada corporation (the “Company”)
has been prepared in connection with the Securities Purchase Agreement (the “Agreement”) dated as of September 1, 2017
by and among the Company and each buyer identified on the signatures pages thereto. Capitalized terms used but not defined herein
shall have the meanings ascribed to them in the Agreement.

 

This
Disclosure Schedule sets forth items the disclosure of which are necessary or appropriate either in response to an express disclosure
requirement contained in a provision of the Agreement or as an exception to one or more of the Company’s representations or warranties
contained in Article 4 of the Agreement. Any information set forth in one section of this Disclosure Schedule will be deemed
to apply to all other sections or subsections of the Agreement to the extent that such disclosure is applicable to such other
section(s) or subsection(s) on its face without additional investigation.

 

Headings
inserted in the sections or subsections of this Disclosure Schedule are for convenience of reference only and shall not have the
effect of amending or changing the express terms of the sections or subsections as set forth in the Agreement.

 

The
mere inclusion of any item in any section or subsection of this Disclosure Schedule as an exception to any representation or warranty
or otherwise shall not be deemed to constitute an admission by the Company including that such item was required to be disclosed,
or to otherwise imply (i) that any such item has had or would reasonably be expected to have a Material Adverse Effect or otherwise
represent an exception or material fact, event or circumstance for the purposes of the Agreement, (ii) that such item is or was
material under federal or state securities laws, (iii) that such item is or was outside the Company’s course of business, or (iv)
that such item meets or exceeds a monetary or other threshold specified for disclosure in the Agreement. Notwithstanding the foregoing,
no disclosure included in any section of this Disclosure Schedule will contravene or vary the text of the representations and
warranties set forth in the Agreement. Nothing this Disclosure Schedule shall constitute an admission of any liability or obligation
of the Company or any other party to any third party or shall confer or give to any third party any remedy, claim, liability,
reimbursement, cause of action, or other right.

 

    	 	22	 

     

    

 

Schedule
4(d)

 

In
connection with certain convertible promissory notes issued by the Company between May 2016 and the date of this Agreement, the
Company is required to obtain the consent of certain noteholders in connection with their investment. The Company is currently
working with these investors to obtain the proper consents in connection with the transactions contemplated by this Agreement.

 

Schedule
4(g)

 

See
a description of all subsequent events included in the Form 10-Q for the quarter ended June 30, 2016, as filed with the Securities
and Exchange Commission in September 2017.

 

The
Company has been sued by its former legal counsels for past due fees for services rendered. The Company is working with the former
counsels to settle all disputes.

 

The
Company is currently in default under its lease agreement for its Gaithersburg, MD facility. Schedule 4(h)

 

The
Company is currently in default under its obligations for its CLIA license in the State of Maryland.

 

 

23Exhibit
10.13

 

PLEDGE
AGREEMENT

 

THIS
PLEDGE AGREEMENT (as the same may be amended, restated or otherwise modified from time to time, this “Agreement”),
dated as of September 5th, 2017, by and between AVANT DIAGNOSTICS, INC., a Nevada corporation, (the “Pledgor”),
and Anand Gokel (the “Lender”).

 

PRELIMINARY
STATEMENTS:

 

WHEREAS,
as of the date set forth above, the Lender has agreed to purchase Seventy-five Thousand Dollars ($75,000) of Senior Secured
Convertible Notes of Pledgor (collectively, the “Loan”), partially in reliance on Pledgor’s agreement to enter
into this Agreement as further security for Pledgor’s payment and performance (hereinafter, Pledgor’s “Obligations”)
under the Loan by Pledgor, as maker, in favor of Lender, as payee; and

 

WHEREAS,
the Note and all other agreements, documents or instruments executed or delivered by Pledgor others in connection with the
Loan (including but not limited to the Securities Purchase Agreement, dated September 5, 2017) are hereinafter collectively referred
to as the “Loan Documents”; and

 

WHEREAS,
Lender’s agreement to make the Loan is conditioned upon, among other things, the Pledgor entering into this Agreement and
pledging a security interest to Lender in and to all of the respective Assets Pledgor owns.

 

NOW
THEREFORE, to secure the Obligations of the Pledgor, and in consideration of the Lender making the Loan to the Pledgor, the
Pledgor hereby agrees for the benefit of the Lender as follows:

 

1.
INTERPRETATION OF THIS AGREEMENT

 

1.1  Terms
defined

 

All
capitalized terms used herein but not defined herein shall have the respective meanings set forth in the Loan Documents from Pledgor
to Lender of even date herewith which secures the Loan. As used herein, the following terms shall have the respective meanings
set forth below:

 

 (a) “Collateral” shall mean all of Pledgor’s Assets, all rights and privileges related thereto, and all books and records relating thereto and all rights in and to any insurance proceeds of the foregoing, and which are listed on Exhibit A.

 

(b)  “Lender”
shall have the meaning set forth in the introductory paragraph hereof.

 

    

     

    

 

(d)  “Loan
Documents” shall have the meaning set forth in the preliminary statement above.

 

(e)  “Obligations”
shall mean all of the obligations of Pledgor under the Loan Documents, and all obligations of Pledgor pursuant to this Agreement.

 

(f)  “Pledgor”
shall have the meaning set forth in the introductory paragraph hereof.

 

(g)  “Security
Interest” shall have the meaning set forth in Section 2.1 hereof.

 

(h) “Uniform
Commercial Code” shall mean the Uniform Commercial Code as in effect from time to time in the State of Nevada.

 

1.2  Directly
or Indirectly

 

Where
any provision herein refers to action to be taken by any party, or provides that such party is prohibited from taking any action,
such provision shall be applicable whether such action is taken directly or indirectly by such party.

 

1.3
Section Headings and Construction

 

(a)  Section
Headings. The titles of the sections of this Agreement appear as a matter of convenience only, do not constitute a part hereof
and shall not affect the construction hereof. The words “herein,” “hereunder” and “hereto” refer
to this Agreement as a whole and not to any particular section or other subdivision. References to sections are, unless otherwise
specified, references to sections of this Agreement.

 

(b)  Construction.
Each covenant contained herein shall be construed (absent an express contrary provision herein) as being independent of each
other covenant contained herein, and compliance with any one covenant shall not (absent such an express contrary provision) be
deemed to excuse compliance with one or more other covenants.

 

1.4
Governing Law

 

THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEVADA, AND THE FEDERAL
LAWS OF THE UNITED STATES OF AMERICA IN FORCE THEREIN, EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD
REQUIRE THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

 

    -2-

     

    

 

2.
GRANT OF SECURITY INTEREST

 

2.1  Grant
of Security Interest

 

As
security for the payment or performance, as the case may be, of the Obligations, the Pledgor does hereby pledge and grant a security
interest (the “Security Interest”) to the Lender in all of the Collateral.

 

2.2
Perfection of Security Interest in Collateral

 

(a)  Contemporaneously
with the execution of this Agreement, the Pledgor (i) shall deliver, or cause to be delivered, to the Lender, all instruments
evidencing the Collateral (ii) authorizes the Lender to file one or more financing statements under the Uniform Commercial Code,
with respect to the Security Interest, with the proper filing and recording agencies in any jurisdiction deemed proper by it,
(iii) shall register the pledge of the Collateral hereunder in its books and records, and/or (iv) take such other action as the
Lender may direct in order to perfect the Security Interest.

 

(b)  Delivery
of Other Collateral. If the Pledgor shall become entitled to receive or shall receive any certificate or other instrument,
option or rights or other similar property in respect of the Collateral, whether as an addition to, in substitution of, or in
exchange for, such Collateral or otherwise, the Pledgors agree:

 

(i)  to
accept the same as the agent of the Lender;

 

(ii)  to
hold the same in trust on behalf of and for the benefit of the Lender; and

 

(iii)  to
deliver the same to the Lender, or to such other party as the Lender may direct, on or before the close of business on the second
business day following the receipt thereof by the Pledgor, in the exact form received, with the endorsement in blank of the Pledgor
when necessary and with appropriate undated powers of attorney duly executed in blank (with signatures properly guaranteed), when
necessary, to be held by the Lender, or such other party as directed by the Lender, subject to the terms of this Agreement, as
additional Collateral.

 

2.3
Further Assurances

 

The
Pledgor agrees, at its expense, to cooperate with the Lender and to execute and deliver, or cause to be executed and delivered,
all such powers, proxies, instruments and documents, and take all such actions, as the Lender may from time to time reasonably
request, for the better assuring and preserving of the perfection of the Security Interest herein granted to the Lender and the
rights and remedies created hereby.

 

    -3-

     

    

 

3.
REPRESENTATIONS, WARRANTIES AND COVENANTS 

 

3.1
Representations, Warranties and Covenants of Pledgor

 

The
Pledgor represents, warrants and covenants that:

 

(a)  Right
to Grant Security Interest. The Pledgor has the right to pledge and grant a security interest in the Collateral free of any
encumbrances other than the lien created hereby;

 

(b)  Governmental
Authorities. The Pledgor’s execution and delivery of this Agreement and the pledging of the Collateral hereunder does not
require the consent, approval or authorization of, or filing, registration or qualification with, any governmental authority having
jurisdiction thereover (other than filing of UCC financing statements);

 

(c)  Authority
to Pledge. The Pledgor has rights in and good title to the Collateral and has full right, power and authority to pledge the
Collateral pursuant hereto and to execute, deliver and perform his obligations in accordance with the terms of this Agreement,
without the consent or approval of any other party (other than the consent of Pledgor, which consent is set forth below);

 

(d)  Validity
of Security Interest. Once the pledge of the Collateral hereunder is effective by virtue of the execution and delivery of
this Agreement and the filing of the UCC financing statements in connection therewith, the Lender will have a valid, legal and
perfected first and prior security interest in all of the Collateral, and no party, other than the Lender shall have priority
in such security interest; and

 

(e)  Absence
of Other Liens. The Pledgor is the legal and equitable owner of the Collateral free and clear of any pledge, security interest,
lien, charge or other encumbrance of any nature whatsoever, and the Pledgor will make no further sale, assignment, pledge, mortgage,
hypothecation or transfer of the Collateral.

 

4.
EVENTS OF DEFAULT; REMEDIES 

 

4.1
Events of Default

 

An
“Event of Default” shall exist if any of the following occurs and is continuing:

 

(a)  Covenants:
Any Pledgor shall fail to comply with any of the provisions hereof, and such failure continues for more than ten (10) days
after the date on which the Pledgor shall have received written notice of such failure from the Lender; or

 

(b)  Warranties
or Representations: Any warranty, representation or other written statement by or on behalf of any Pledgor contained herein
or in any certificate, instrument or other statement furnished in compliance herewith or with the Loan Documents shall have been
false or misleading in any material respect when made; or

 

    -4-

     

    

 

(c)  Collateral:
All or any part of the Collateral shall be attached or levied upon or seized in any legal proceeding, or held by virtue of
any lien or distress, in any case for a period in excess of twenty (20) days; or

 

(d)  Events
of Default Under Loan Documents: Any “Event of Default” exists under and as defined in the Loan Documents.

 

4.2
Remedies

 

At
any time during the continuance of an Event of Default, the Lender may take any or all of the following actions with respect to
the Collateral:

 

(a)  The
Lender may exercise all of the rights and remedies of a secured party under the Uniform Commercial Code and other applicable law
and all of the rights and remedies conferred hereby, it being expressly understood that no such remedy is intended to be exclusive
of any other remedy or remedies, but each and every remedy shall be cumulative and shall be in addition to every other remedy
given herein or now or hereafter existing at law or in equity or by statute, and may be exercised from time to time as often as
may be deemed expedient by the Lender.

 

(b)  The
Lender shall have the right, subject to the mandatory requirements of applicable law, to sell or otherwise dispose of all or any
part of the Collateral, at public or private sale or at any broker’s board or on any securities exchange, for cash, upon credit
or for future delivery as the Lender shall deem appropriate. Each purchaser at any such sale shall hold the Collateral sold absolutely
free from any claim or right on the part of the Pledgor, and the Pledgor hereby waives (to the extent permitted by law) all rights
of redemption, stay and appraisal that the Pledgor now has or may at any time in the future have under any rule of law or statute
now existing or hereafter enacted.

 

4.3
Method of Sale and Conduct of Remedies

 

(a)  The
Pledgor and the Lender agree that ten (10) days’ notice to any Pledgor of any or private sale or other disposition of the Collateral
or any portion thereof shall be reasonable notice thereof, and such sale shall be at such locations as the Lender shall designate
in such notice and during ordinary business hours, and any other requirement of notice, demand or advertisement for sale, to the
extent permitted by law, is hereby waived by the Pledgor. The Lender shall have the right to bid at any public sale.

 

(b)  The
Lender shall not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that
notice of sale of such Collateral shall have been given. The Lender may, without notice or publication, adjourn any public or
private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such
sale may, without further notice, be made at the time and place to which the same was so adjourned.

 

    -5-

     

    

 

(c)
In case any sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be
retained by the Lender until the sale price is paid by the purchaser or purchasers thereof, but the Lender shall not incur any
liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any
such failure, such Collateral may be sold again upon like notice.

 

4.4  Certain
Securities Law Restrictions

 

Anything
herein to the contrary notwithstanding, and in view of the fact that federal and state securities laws may impose certain restrictions
on the method by which a sale of any securities constituting all or part of the Collateral may be effected after and during the
continuance of an Event of Default, the Pledgor agrees that, if an Event of Default shall exist hereunder, the Lender may, from
time to time, attempt to sell all or any part of any such securities by means of a private placement, restricting the bidders
and prospective purchasers to those who will represent or agree as to their investment intent or method of resale or both in a
manner reasonably required by the Lender to assure compliance with applicable securities laws. In so doing, the Lender may solicit
offers to buy such securities or any part thereof, for cash, from a limited number of investors deemed by the Lender to be responsible
parties who might be interested in purchasing such securities. If the Lender solicits such offers from not fewer than three (3)
such investors, then the acceptance by the Lender of the highest offer obtained therefrom shall be deemed to be a commercially
reasonable method of disposition of such securities.

 

4.5
Lender Appointed Attorney-in-Fact

 

The
Pledgor hereby appoints the Lender as the Pledgor’s attorney-in-fact, with full authority to act in the place and stead of the
Pledgor and in the name of the Pledgor or otherwise at any time after an Event of Default shall exist, to take any action and
to execute any instrument which the Lender may deem necessary or advisable to accomplish the purposes of this Agreement, including,
without limitation:

 

(a)  to
ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under
or in respect of any of the Collateral,

 

(b)  to
receive, endorse and collect all instruments made payable to the Pledgor representing any payment or Distribution in respect of
the Collateral or any part thereof and to give full discharge for the same, and

 

(c)  to
file any claims or take any action or institute any proceedings that the Lender may deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce the rights of the Lender with respect to any of the Collateral.

 

The
Pledgor agree that the Lender shall not have any liability for any acts of commission or omission, or for any error of judgment
or mistake of fact or law, with respect to the exercise of the powers of attorney granted under this Section 4.5, unless such
liability shall be due to the willful misconduct or gross negligence of the Lender. The powers of attorney granted under this
Section 4.5 are coupled with and interest and shall be irrevocable for so long as any of the Obligations shall not have been fully
and finally paid.

 

    -6-

     

    

 

4.6
Performance by the Lender for the Pledgor

 

If
any Pledgor shall fail to do any act or thing that it has covenanted to do hereunder, or any representation or warranty of the
Pledgor shall be breached, the Lender, may at its option, but shall not be required to, do the same or cause it to be done, or
remedy any such breach, and charge the Pledgor therefor, and the Pledgor agrees to promptly reimburse the Lender therefor, with
interest at an interest rate per annum that is then borne by the Pledgor pursuant to the terms of the Note. The Pledgor shall
pay all sums so paid or incurred by the Lender in respect of any of the foregoing and all costs and expenses (including attorneys’
fees, legal expenses and court costs) that the Lender may incur in asserting, enforcing, defending or protecting the Security
Interest herein granted on, or rights and interest in, the Collateral, or any of their rights or remedies under this Agreement
or in respect of any of the transactions to be had hereunder and, until paid by the Pledgor with interest at the rate aforesaid,
such sums shall be secured by all of the Collateral and the proceeds from the sale thereof.

 

5.  Effect
of Sale, etc.

 

5.1  Title. Any
sale or sales pursuant to the provisions of this Agreement, whether under any right or power granted hereby or pursuant to
any legal proceedings, shall operate to divest the Pledgor of all right, title, interest, claim and demand whatsoever,
either at law or in equity, of, in and to the Collateral, or any part thereof, so sold, and any property so sold shall be
free and clear of any and all rights of redemption by, through or under the Pledgor.

 

5.2
Application of Proceeds. The receipt by the Lender, or by any party authorized under any judicial proceedings to make
any such sale, of the proceeds of any such sale shall be a sufficient discharge to any purchaser of the Collateral, or of any
part thereof, sold as aforesaid; and no such purchaser shall be bound to see to the application of such proceeds, or be bound
to inquire as to the authorization, necessity or propriety of any such sale. In the event that, at any such sale, the Lender is
the successful purchaser, it shall be entitled, for the purpose of making settlement or payment, to credit against the purchase
price of such sale all or any portion of the Obligations.

 

    -7-

     

    

 

5.3
Restoration of Rights and Remedies

 

If
the Lender shall have instituted any proceeding to enforce any right or remedy hereunder, and such proceeding shall have been
discontinued or abandoned for any reason, or shall have been determined adversely to the Lender, then and in every such case,
the Lender shall, subject to any determination in any such proceeding, be restored severally and respectively to its former position
hereunder, and thereafter all rights and remedies of the Lender shall continue as though no such proceeding had been instituted.

 

5.4
Application of Proceeds

 

The
proceeds of any exercise of rights with respect to the Collateral, or any part thereof, and the proceeds and the avails of any
remedy under this Agreement shall be paid to the Lender and applied by the Lender in accordance with the Note.

 

5.5  Waivers
by Pledgor

 

(a)  Acceptance.
The Pledgor hereby waive notice of acceptance of this Agreement. The Pledgor further waives presentment and demand for payment
of any of the Obligations, protest and notice of dishonor or default with respect to any of the Obligations, and all notices to
which the Pledgor might otherwise be entitled, except as otherwise expressly provided in this Agreement.

 

(b)  Waiver
of Valuations, etc.  The Pledgor (to the extent that it may lawfully do so) covenants that it shall not at any time
insist upon or plead, or in any manner claim or take the benefit or advantage of, any stay, valuation, appraisal, redemption or
extension law now or at any time hereafter in force that, but for this waiver, might be applicable to any sale made hereunder
or under any judgment, order or decree based on this Agreement, and the Pledgor (to the extent that it may lawfully do so) hereby
expressly waives and relinquishes all benefit and advantage of any and all such laws and hereby covenants that it will not hinder,
delay or impede the execution of any power in this Agreement or therein granted and delegated to the Lender, but that it will
suffer and permit the execution of every such power as though no such law or laws had been made or enacted.

 

    -8-

     

    

 

(c)Dealings
with Pledgor and Others.The Pledgor does hereby waive: notice of the extension of credit from time to time by Lender
to Pledgor and the creation, existence or acquisition of any Obligations hereby secured, including, without limitation,
notice of the amount of any indebtedness of Pledgor to Lender from time to time (subject, however, to Pledgor’s right to make
inquiry of Lender to ascertain the amount of such indebtedness at any reasonable time); notice of adverse change in Pledgor’s
financial condition or of any other fact which might increase such Pledgor’s risk hereunder; notice of presentment for
payment, demand, protest and notice thereof as to any instrument executed by Pledgor in favor of Lender; to the extent
permitted under applicable law, notice of default; and all other notices and demands to which the Pledgor might otherwise be
entitled (except for any notices expressly required under the Agreement). The Pledgor further waives any statutory or other
rights to require Lender to institute suit against Pledgor or any other obligor or guarantor in respect of the Obligations or
to exhaust its rights and remedies against Pledgor or any other such obligor or guarantor. The Pledgor accepts the full range
of risk encompassed within a contract of continuing guaranty, including the possibility that the Pledgor will incur
indebtedness after its financial condition (including its ability to pay debts when they fall due) has deteriorated. Pledgor
waives the benefit of any applicable law having a contrary effect. The Pledgor further waives any defense arising by reason
of any disability or other defense of Pledgor or by reason of the cessation from any cause whatsoever of the liability of
Pledgor (except for payment in full of the Obligations), and any other legal or equitable suretyship defense. Without
limiting the foregoing, no Pledgor shall not be relieved of its obligations hereunder by virtue of any time or indulgences
granted by Lender to Pledgor. The Pledgor hereby irrevocably appoints Pledgor as the Pledgor’s agent such that any agreement
made between Lender and Pledgor with respect to any waiver, release or amendment of the terms of the Note and any other Loan
Documents, shall be deemed to have been agreed and consented to by the Pledgors and the execution of any document by Pledgor
evidencing any such agreement shall be deemed to have been executed by Pledgor as principal and as authorized agent of the
Pledgors. Until all of the Obligations shall have been satisfied in full, the Pledgors shall have no right of subrogation,
reimbursement or indemnity whatsoever and no right of recourse to or with respect to any assets or property of Pledgor or to
any collateral for the Obligations. Nothing shall discharge or satisfy the obligations secured hereby except the full payment
of the Obligations. As between the Pledgors and Lender and at the option of Lender, such Obligations shall forthwith become
due and payable if there shall be filed against any one or more of Pledgor or the Pledgors a petition under any
bankruptcy, insolvency, reorganization or arrangement or similar laws for appointment of a receiver or trustee, if any one or
more of Pledgor or the Pledgors makes an assignment for the benefit of creditors, or if an Event of Default shall exist. It
is the intent of the parties that this Agreement shall remain in full force and effect notwithstanding any act or thing that
might otherwise operate as a legal or equitable discharge of a surety.

 

6.
MISCELLANEOUS

 

6.1
No Waiver

 

No
failure on the part of the Lender to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy by the Lender preclude any other
or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are
not exclusive of any other remedies provided by law. The Lender shall not be deemed to have waived any rights hereunder or under
any other agreement or instrument unless such waiver shall be in writing and signed by the Lender and the Pledgor.

 

    -9-

     

    

 

6.2
Lender’s Fees and Expenses

 

The
Pledgor will upon demand pay to the Lender the amount of any and all reasonable expenses, including the fees and expenses of
its counsel and of any experts or agents that the Lender may incur in connection with (i) the custody or preservation or, or
the sale of, collection from, or other realization upon, any of the Collateral, (ii) the exercise or enforcement of any of
the rights of the Lender hereunder, or (iii) the failure by the Pledgor to perform or observe any of the provisions hereof.
In addition, the Pledgor will indemnify and hold the Lender harmless from and against any and all liability incurred by the
Lender hereunder or in connection herewith, unless such liability shall be due to the willful misconduct or gross negligence
of the Lender. Any such amounts payable as provided hereunder or thereunder shall be secured hereby.

 

6.3
Benefits of this Agreement

 

All
warranties, representations and covenants made by the Pledgor herein or in any certificate or other document or instrument delivered
by it shall be considered to have been relied upon by the Lender and shall survive the delivery to the Lender of the Collateral
regardless of any investigation made by the Lender. All statements in any such certificate or other instrument shall constitute
warranties and representations by the Pledgor hereunder. This Agreement shall be binding upon the Pledgor and their respective
heirs and assigns, and shall inure to the benefit of and be enforceable by the Lender and its successors and assigns.

 

6.4
Obligations Absolute; Recourse; No Marshaling

 

(a)  This
Agreement is an absolute, unconditional, continuing and irrevocable obligation of the Pledgor and shall remain in full force and
effect without respect to future changes in conditions, including change of law or any invalidity or irregularity with respect
to the issuance of any obligations of Pledgor to Lender or with respect to the execution and delivery of any agreement between
Pledgor and Lender. The Pledgor further agrees that to the extent Pledgor makes a payment or payments to Lender, which payment
or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required,
for any of the foregoing reasons or for any other reason, to be repaid or paid over to a trustee, receiver or any other party
under any bankruptcy, insolvency or similar law, then, to the extent of such payment or repayment, the Obligations or part thereof
intended to be satisfied shall be revived and continued in full force and effect as if said payment had not been made.

 

(b)  Lender
shall have the right to seek recourse against the Collateral to the full extent provided for herein, which rights shall be absolute
and shall not in any way be impaired, deferred or otherwise diminished by reason of any inability of Lender to claim the full
amount of the Obligations from Pledgor under any applicable law. No election to proceed in one form of action or proceeding, or
against any party, or on any obligation, shall constitute a waiver of Lender’s right to proceed in any other form of action or
proceeding or against other parties unless Lender has expressly waived such right in writing. Specifically, but without limiting
the generality of the foregoing, no action or proceeding by Lender against Pledgor, any guarantor of the Obligations or any other
party, under any document or instrument evidencing or securing the Obligations shall serve to diminish the liability of the Pledgor
hereunder, except to the extent Lender fully and unconditionally realizes full indefeasible payment of the Obligations by such
action or proceeding, notwithstanding the effect of any such action or proceeding upon the Pledgor’s right of subrogation, reimbursement
or contribution against Pledgor or any other party.

 

    -10-

     

    

 

(c)
The Pledgor consents and agrees that Lender shall be under no obligation to marshal any assets in favor of the Pledgor, or against
or in payment of any or all of the Obligations.

 

6.5 Actions by Lender

 

The
Pledgor consents and agrees that, without notice to Pledgor and without affecting or impairing the obligations of Pledgor hereunder,
Lender may, by action or inaction: compromise, settle, extend the time for payment of the Obligations with Pledgor or any party
liable therefor; release Pledgor or any party from its liability for the Obligations; release all or any part of the security
for the Obligations; modify any instruments or agreements relating to the Obligations (except this Agreement); extend the time
for making any deposit or granting a security interest in property securing the Obligations; or refuse or fail to enforce its
rights under any agreement or instrument evidencing or securing the Obligations.

 

6.6
Notices

 

All
notices or demands by either party to the other relating to this Agreement shall be in writing and sent in accordance with the
Loan Documents; provided that notices or demands to Pledgor shall be sent to Pledgor at the address for the Pledgor.

 

6.7
Severability

 

In
case any one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable, the remaining provisions
contained herein shall not in any way be affected or impaired.

 

6.8
Counterparts

 

This
Agreement may be executed in one or more counterparts and shall be effective when at least one counterpart shall have been executed
by each party hereto, and each set of counterparts that, collectively, show execution by each party hereto shall constitute one
duplicate original.

 

6.9
Amendments

 

No
provision of this Agreement shall be waived, amended, modified or supplemented except by a written instrument executed by the
Pledgor and the Lender.

 

6.10
Termination

 

Pledgor
acknowledge that this Agreement and the Security Interest shall terminate when all the Obligations have been fully and
finally paid, at which time the Lender shall deliver to the Pledgor all certificates, if any, evidencing the Collateral then
held by it and such other documents as the Pledgor shall reasonably request to evidence such termination (all at the expense
of the Pledgor).

 

(the
rest of the page left intentionally blank)

 

    -11-

     

    

  

IN
WITNESS WHEREOF, the Pledgor has executed and delivered this Pledge and Security Agreement as of the date first above written.

 

	 	AVANT
    DIAGNOSTICS, INC.
	 	 	 
	 	By:	/s/
    Philippe Goix
	 	Name:	Philippe
    Goix
	 	Title:	Chief
    Executive Officer 

 

    -12-

     

    

 

Exhibit A

 Pledgor’s
Assets

 

 

 

-13-

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