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REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of August 10, 2018, by and between AIT THERAPEUTICS, INC.,
a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an
Illinois limited liability company (together with it permitted assigns, the “Buyer”). Capitalized terms
used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement by and between
the parties hereto, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the
“Purchase Agreement”).

 

WHEREAS:

 

The
Company has agreed, upon the terms and subject to the conditions of the Purchase Agreement, to sell to the Buyer up to Twenty
Million Dollars ($20,000,000) of Purchase Shares and to induce the Buyer to enter into the Purchase Agreement, the Company has
agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder,
or any similar successor statute (collectively, the “Securities Act”), and applicable state securities laws.

 

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

 

1.
DEFINITIONS.

 

As
used in this Agreement, the following terms shall have the following meanings:

 

a.
“Investor” means the Buyer, any transferee or assignee thereof to whom a Buyer assigns its rights under this
Agreement in accordance with Section 9 and who agrees to become bound by the provisions of this Agreement, and any transferee
or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement in accordance with Section 9 and
who agrees to become bound by the provisions of this Agreement.

 

b.
“Person” means any individual or entity including but not limited to any corporation, a limited liability company,
an association, a partnership, an organization, a business, an individual, a governmental or political subdivision thereof or
a governmental agency.

 

c.
“Register,” “registered,” and “registration” refer to a registration
effected by preparing and filing one or more registration statements of the Company in compliance with the Securities Act and
pursuant to Rule 415 under the Securities Act or any successor rule providing for offering securities on a continuous basis (“Rule
415”), and the declaration or ordering of effectiveness of such registration statement(s) by the United States Securities
and Exchange Commission (the “SEC”).

 

d.
“Registrable Securities” means all of the Purchase Shares, including, without limitation, all of the Initial
Purchase Shares (if any), that may, from time to time, be issued or become issuable to the Investor under the Purchase Agreement
(without regard to any limitation or restriction on purchases), and any and all shares of capital stock issued or issuable with
respect to the Purchase Shares or the Purchase Agreement as a result of any stock split, stock dividend, recapitalization, exchange
or similar event or otherwise, without regard to any limitation on purchases under the Purchase Agreement.

 

e.
“Registration Statement” means one or more registration statements of the Company covering only the sale of
the Registrable Securities.

 

    	 	 	 

    	 

    

 

2.
REGISTRATION.

 

a.
Mandatory Registration. The Company shall, within forty (40) Business Days after the date hereof, file with the SEC an
initial Registration Statement covering the maximum number of Registrable Securities as shall be permitted to be included thereon
in accordance with applicable SEC rules, regulations and interpretations so as to permit the resale of such Registrable Securities
by the Investor under Rule 415 under the Securities Act at then prevailing market prices (and not fixed prices), as mutually determined
by both the Company and the Investor in consultation with their respective legal counsel, subject to the aggregate number of authorized
shares of the Company’s Common Stock then available for issuance in its Certificate of Incorporation. The initial Registration
Statement shall register only the Registrable Securities. The Investor and its counsel shall have a reasonable opportunity to
review and comment upon such Registration Statement and any amendment or supplement to such Registration Statement and any related
prospectus prior to its filing with the SEC, and the Company shall give due consideration to all such comments. The Investor shall
furnish all information reasonably requested by the Company for inclusion therein. The Company shall use its commercially reasonable
efforts to have the Registration Statement and any amendment declared effective by the SEC at the earliest possible date. The
Company shall use commercially reasonable efforts to keep the Registration Statement effective pursuant to Rule 415 promulgated
under the Securities Act and available for the resale by the Investor of all of the Registrable Securities covered thereby at
all times until the date on which the Investor shall have resold all the Registrable Securities covered thereby and no Available
Amount remains under the Purchase Agreement (the “Registration Period”). The Registration Statement (including
any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of
the circumstances in which they were made, not misleading.

 

b.
Rule 424 Prospectus. The Company shall, as required by applicable securities regulations, from time to time file with the
SEC, pursuant to Rule 424 promulgated under the Securities Act, the prospectus and prospectus supplements, if any, to be used
in connection with sales of the Registrable Securities under the Registration Statement. The Investor and its counsel shall have
a reasonable opportunity to review and comment upon such prospectus prior to its filing with the SEC, and the Company shall give
due consideration to all such comments. The Investor shall use its reasonable best efforts to comment upon such prospectus within
one (1) Business Day from the date the Investor receives the final pre-filing version of such prospectus.

 

c.
Sufficient Number of Shares Registered. In the event the number of shares available under the Registration Statement is
insufficient to cover all of the Registrable Securities, the Company shall amend the Registration Statement or file a new Registration
Statement (a “New Registration Statement”), so as to cover all of such Registrable Securities (subject to the
limitations set forth in Section 2(a)) as soon as practicable, but in any event not later than ten (10) Business Days after the
necessity therefor arises, subject to any limits that may be imposed by the SEC pursuant to Rule 415 under the Securities Act.
The Company shall use its commercially reasonable efforts to cause such amendment and/or New Registration Statement to become
effective as soon as practicable following the filing thereof.

 

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d.
Offering. If the staff of the SEC (the “Staff”) or the SEC seeks to characterize any offering pursuant
to a Registration Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such
Registration Statement to become effective and be used for resales by the Investor under Rule 415 at then-prevailing market prices
(and not fixed prices), or if after the filing of the initial Registration Statement with the SEC pursuant to Section 2(a), the
Company is otherwise required by the Staff or the SEC to reduce the number of Registrable Securities included in such initial
Registration Statement, then the Company shall reduce the number of Registrable Securities to be included in such initial Registration
Statement (with the prior consent, which shall not be unreasonably withheld, of the Investor and its legal counsel as to the specific
Registrable Securities to be removed therefrom) until such time as the Staff and the SEC shall so permit such Registration Statement
to become effective and be used as aforesaid. In the event of any reduction in Registrable Securities pursuant to this paragraph,
the Company shall file one or more New Registration Statements in accordance with Section 2(c) until such time as all Registrable
Securities have been included in Registration Statements that have been declared effective and the prospectuses contained therein
is available for use by the Investor. Notwithstanding any provision herein or in the Purchase Agreement to the contrary, the Company’s
obligations to register Registrable Securities (and any related conditions to the Investor’s obligations) shall be qualified
as necessary to comport with any requirement of the SEC or the Staff as addressed in this Section 2(d).

 

3.
RELATED OBLIGATIONS.

 

With
respect to the Registration Statement and whenever any Registrable Securities are to be registered pursuant to Section 2 including
on any New Registration Statement, the Company shall use its commercially reasonable efforts to effect the registration of the
Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall
have the following obligations:

 

a.
The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to
Rule 424 promulgated under the Securities Act, as may be necessary to keep the Registration Statement or any New Registration
Statement effective at all times during the Registration Period, and, during such period, comply with the provisions of the Securities
Act with respect to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any
New Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with
the intended methods of disposition by the Investor as set forth in such Registration Statement.

 

b.
The Company shall permit the Investor to review and comment upon the Registration Statement or any New Registration Statement
and all amendments and supplements thereto at least two (2) Business Days prior to their filing with the SEC, and not file any
such document in a form to which Investor reasonably objects. The Investor shall use its commercially reasonable efforts to comment
upon the Registration Statement or any New Registration Statement and any amendments or supplements thereto within two (2) Business
Days from the date the Investor receives the final version thereof. Company shall furnish to the Investor, without charge any
correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to the Registration Statement
or any New Registration Statement.

 

c.
Upon request of the Investor, the Company shall furnish to the Investor, (i) promptly after the same is prepared and filed with
the SEC, at least one copy of such Registration Statement and any amendment(s) thereto, including financial statements and schedules,
all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any Registration Statement, a
copy of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number
of copies as the Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final
prospectus, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by the Investor. For the avoidance of doubt, any filing available to the Investor via the SEC’s live EDGAR
system shall be deemed “furnished to the Investor” hereunder.

 

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d.
The Company shall use commercially reasonable efforts to (i) register and qualify the Registrable Securities covered by a Registration
Statement under such other securities or “blue sky” laws of such jurisdictions in the United States as the Investor
reasonably requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements
to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period,
(iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during
the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section
3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in
any such jurisdiction. The Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company
of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for
sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice
of the initiation or threatening of any proceeding for such purpose.

 

e.
As promptly as practicable after becoming aware of such event or facts, the Company shall notify the Investor in writing of the
happening of any event or existence of such facts as a result of which the prospectus included in any Registration Statement,
as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and promptly
prepare a supplement or amendment to such Registration Statement to correct such untrue statement or omission, and deliver a copy
of such supplement or amendment to the Investor (or such other number of copies as the Investor may reasonably request). The Company
shall also promptly notify the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment
has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness
shall be delivered to the Investor by email or facsimile on the same day of such effectiveness and by overnight mail), (ii) of
any request by the SEC for amendments or supplements to any Registration Statement or related prospectus or related information,
and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be
appropriate.

 

f.
The Company shall use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of any Registration Statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

 

g.
The Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the
same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities on the Principal
Market. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

 

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h.
The Company shall cooperate with the Investor to facilitate the timely issuance of the Registrable Securities to be offered pursuant
to any Registration Statement, it being agreed that such Registrable Securities shall be issued as DWAC Shares and in such denominations
or amounts as the Investor may reasonably request and registered in such names as the Investor may request.

 

i.
The Company shall at all times provide a transfer agent and registrar with respect to its Common Stock.

 

j.
If reasonably requested by the Investor, the Company shall (i) promptly incorporate in a prospectus supplement or post-effective
amendment such information as the Investor believes should be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase
price being paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of
such prospectus supplement or post-effective amendment as soon as practicable upon notification of the matters to be incorporated
in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement
or New Registration Statement.

 

k.
The Company shall use its commercially reasonable efforts to cause the Registrable Securities covered by any Registration Statement
to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition
of such Registrable Securities.

 

l.
Within one (1) Business Day after any Registration Statement which includes the Registrable Securities is declared effective by
the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Investor) confirmation that such Registration Statement has been declared effective by the SEC
in the form attached hereto as Exhibit A. Thereafter, if requested by the Buyer at any time, the Company shall require
its counsel to deliver to the Buyer a written confirmation whether or not the effectiveness of such Registration Statement has
lapsed at any time for any reason (including, without limitation, the issuance of a stop order) and whether or not the Registration
Statement is current and available to the Buyer for sale of all of the Registrable Securities.

 

m.
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of the Registrable
Securities pursuant to any Registration Statement.

 

4.
OBLIGATIONS OF THE INVESTOR.

 

a.
The Company shall notify the Investor in writing of the information the Company reasonably requires from the Investor in connection
with any Registration Statement hereunder. The Investor shall furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required
to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration
as the Company may reasonably request.

 

b.
The Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and
filing of any Registration Statement hereunder.

 

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c.
The Investor agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the
kind described in Section 3(f) or the first sentence of 3(e), the Investor will immediately discontinue disposition of Registrable
Securities pursuant to any Registration Statement(s) covering such Registrable Securities until the Investor’s receipt of
the copies of a notice regarding the resolution or withdrawal of the stop order or suspension as contemplated by Section 3(f)
or the supplemented or amended prospectus as contemplated by the first sentence of 3(e). Notwithstanding anything to the contrary,
the Company shall cause its transfer agent to promptly deliver shares of Common Stock without any restrictive legend in accordance
with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which an Investor
has entered into a contract for sale prior to the Investor’s receipt of a notice from the Company of the happening of any
event of the kind described in Section 3(f) or the first sentence of Section 3(e) and for which the Investor has not yet settled.

 

5.
EXPENSES OF REGISTRATION.

 

All
reasonable expenses, other than sales or brokerage commissions, incurred in connection with registrations, filings or qualifications
pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, and fees and disbursements of counsel for the Company, shall be paid by the Company.

 

6.
INDEMNIFICATION.

 

a.
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the
members, the directors, officers, partners, employees, agents, representatives of the Investor and each Person, if any, who controls
the Investor within the meaning of the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) (each, an “Indemnified Person”), against any losses, claims, damages, liabilities, judgments,
fines, penalties, charges, costs, attorneys’ fees, amounts paid in settlement or expenses, joint or several, (collectively,
“Claims”) incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation
or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or
the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced
or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material
fact in the Registration Statement, any New Registration Statement or any post-effective amendment thereto or in any filing made
in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction
in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged omission to state
a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement
or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company files
any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not
misleading, (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including,
without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable
Securities pursuant to the Registration Statement or any New Registration Statement or (iv) any material violation by the Company
of this Agreement (the matters in the foregoing clauses (i) through (iv) being, collectively, “Violations”).
The Company shall reimburse each Indemnified Person promptly as such expenses are incurred and are due and payable, for any reasonable
legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to
a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with
information about the Investor furnished in writing to the Company by any Indemnified Person expressly for use in connection with
the preparation of the Registration Statement, any New Registration Statement or any such amendment thereof or supplement thereto
or prospectus contained therein, if such Registration Statement, New Registration Statement or amendment thereof or supplement
thereto or prospectus contained therein was timely made available by the Company pursuant to Section 3(c) or Section 3(e); (ii)
with respect to any superseded prospectus, shall not inure to the benefit of any Indemnified Person from whom the Indemnified
Person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of any person
controlling such Indemnified Person) if the untrue statement or omission of material fact contained in the superseded prospectus
was corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available
by the Company pursuant to Section 3(c) or Section 3(e), and the Indemnified Person was promptly advised in writing not to use
the incorrect prospectus prior to the use giving rise to a violation and such Indemnified Person, notwithstanding such advice,
used it; (iii) shall not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause to
be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company pursuant
to Section 3(c) or Section 3(e); and (iv) shall not apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the
transfer of the Registrable Securities by the Investor pursuant to Section 9.

 

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b.
In connection with the Registration Statement or any New Registration Statement, the Investor agrees to indemnify, hold harmless
and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each
of its officers who signs the Registration Statement or any New Registration Statement, each Person, if any, who controls the
Company within the meaning of the Securities Act or the Exchange Act (collectively and together with an Indemnified Person, an
“Indemnified Party”), against any Claim or Indemnified Damages to which any of them may become subject, under
the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon
any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity
with written information about the Investor set forth on Exhibit B attached hereto and furnished to the Company by the
Investor expressly for use in connection with such registration statement; and, subject to Section 6(d), the Investor will reimburse
any legal or other expenses reasonably incurred by any Indemnified Party in connection with investigating or defending any such
Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution
contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior
written consent of the Investor, which consent shall not be unreasonably withheld; provided, further, however, that the Investor
shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds
to the Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive
the transfer of the Registrable Securities by the Investor pursuant to Section 9.

 

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c.
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained
by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying
party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party
and any other party represented by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate
fully with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying
party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified
Person which relates to such action or claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully
apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party
shall be liable for any settlement of any action, claim or proceeding effected without its written consent, provided, however,
that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without
the consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other
compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
Party or Indemnified Person of a release from all liability in respect to such claim or litigation. Following indemnification
as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person
with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure
to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not
relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to
the extent that the indemnifying party is prejudiced in its ability to defend such action.

 

d.
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

e.
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to law.

 

7.
CONTRIBUTION.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities
who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited
in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

 

8.
REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With
a view to making available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar
rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company to the public without
registration (“Rule 144”), the Company agrees, at the Company’s sole expense, to:

 

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a.
make and keep public information available, as those terms are understood and defined in Rule 144;

 

b.
file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the
Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is
required for the applicable provisions of Rule 144;

 

c.
furnish to the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting and or disclosure provisions of Rule 144, the Securities Act and the Exchange
Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by
the Company, and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant
to Rule 144 without registration; and

 

d.
take such additional action as is requested by the Investor to enable the Investor to sell the Registrable Securities pursuant
to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions
to the Company’s Transfer Agent as may be requested from time to time by the Investor and otherwise fully cooperate with
Investor and Investor’s broker to effect such sale of securities pursuant to Rule 144.

 

The
Company agrees that damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that
Investor shall, whether or not it is pursuing any remedies at law, be entitled to seek equitable relief in the form of a preliminary
or permanent injunctions, without having to post any bond or other security, upon any breach or threatened breach of any such
terms or provisions.

 

9.
ASSIGNMENT OF REGISTRATION RIGHTS.

 

The
Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor.
The Investor may not assign its rights under this Agreement without the written consent of the Company, other than to an affiliate
of the Investor controlled by Jonathan Cope or Josh Scheinfeld, in which case the assignee must agree in writing to be bound by
the terms and conditions of this Agreement.

 

10.
AMENDMENT OF REGISTRATION RIGHTS.

 

No
provision of this Agreement may be amended or waived by the parties from and after the earlier of (i) the Business Day immediately
preceding the Initial Purchase Date (as applicable) and (ii) the Business Day immediately preceding the date the initial Registration
Statement contemplated by Section 2(a) hereof is initially filed with the SEC. Subject to the immediately preceding sentence,
no provision of this Agreement may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived
other than in a written instrument signed by the party against whom enforcement of such waiver is sought. Failure of any party
to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall
not operate as a waiver thereof.

 

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11.
MISCELLANEOUS.

 

a.
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered
owner of such Registrable Securities.

 

b.
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 or email (provided confirmation of transmission is mechanically or electronically generated and kept on file
by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in
each case properly addressed to the party to receive the same. The addresses for such communications shall be:

 

If
to the Company:

	 	AIT Therapeutics, Inc.
	 	825 East Gate Blvd., Suite 320
	 	Garden City, New York 11530
	 	Telephone:	(516)
    665-8200
	 	E-mail:	steve@ait-pharma.com
	 	Attention:
    	Steven
    Lisi

 

With
a copy to (which shall not constitute notice or service of process):

	 	Sichenzia Ross Ference Kesner LLP
	 	1185 Avenue of the Americas, 37th Floor
	 	New York, New York 10036
	 	Telephone:
	(212)
    930-9700
	 	Facsimile:	(212)
    930-9725
	 	E-mail:	gsichenzia@srfkllp.com
	 	Attention:	Gregory
    Sichenzia

 

If
to the Investor:

	 	Lincoln Park Capital Fund, LLC
	 	440 North Wells, Suite 410
	 	Chicago, IL 60654
	 	Telephone:	312-822-9300
	 	Facsimile:	312-822-9301
	 	E-mail:	jscheinfeld@lpcfunds.com/jcope@lpcfunds.com
	 	Attention:	Josh
    Scheinfeld/Jonathan Cope

 

With
a copy to (which shall not constitute notice or service of process):

	 	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
	 	666 Third Avenue
	 	New York, NY 10017
	 	Telephone:	(212)
    692-6267
	 	Facsimile:
    	(212)
    983-3115
	 	E-mail:
    	ajmarsico@mintz.com
	 	Attention:	Anthony
    J. Marsico, Esq.

 

    	 	10	 

    	 

    

 

or
at such other 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 three (3) Business 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 email account containing the time, date, recipient facsimile number or email
address, as applicable, or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of
personal service, receipt by facsimile or email, or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

c.
The corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its stockholders.
All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting the State of Illinois, County of Cook, for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each
party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this
Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF
ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

d.
This Agreement and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject
matter hereof and thereof. There are no restrictions, promises, warranties or undertakings among the parties hereto, other than
those set forth or referred to herein and therein. This Agreement and the Purchase Agreement supersede all prior agreements and
understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

e.
Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties hereto.

 

f.
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

g.
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile
transmission or by e-mail in a “.pdf” format data file of a copy of this Agreement bearing the signature of the party
so delivering this Agreement.

 

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

 

i.
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.

 

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

 

*
* * * * *

 

    	 	11	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be duly executed as of day and year first above
written.

 

	 	THE
    COMPANY:
	 	 	 
	 	AIT THERAPEUTICS, INC.
	 	 	 
	 	By:	/s/
    Steve Lisi
	 	Name:	Steve Lisi
	 	Title:	CEO
	 	 	 
	 	BUYER:
	 	 	 
	 	LINCOLN PARK CAPITAL FUND, LLC
	 	BY:	LINCOLN
    PARK CAPITAL, LLC
	 	BY:	ALEX
    NOAH INVESTORS, INC.
	 	 	 
	 	By:	/s/
    Jonathan Cope
	 	Name:     	Jonathan
    Cope
	 	Title:
    	President

 

    	 	12	 

    	 

    

 

EXHIBIT
A

 

TO
REGISTRATION RIGHTS AGREEMENT

 

FORM
OF NOTICE OF EFFECTIVENESS

OF
REGISTRATION STATEMENT

 

[Date]

 

[NAME/ADDRESS]

 

Re:
AIT Therapeutics, Inc.

 

Ladies
and Gentlemen:

 

We
are counsel to AIT Therapeutics, Inc., a Delaware corporation (the “Company”), and have represented the Company
in connection with that certain Purchase Agreement, dated as of August 10, 2018 (the “Purchase Agreement”),
entered into by and between the Company and Lincoln Park Capital Fund, LLC (the “Buyer”), pursuant to which
[the Company has issued to the Buyer shares of the Company’s common stock, par value $0.0001 per share (the “Common
Stock”),] and may in the future issue to the Buyer shares of Common Stock in an amount up to an aggregate of Twenty
Million Dollars ($20,000,000), in accordance with the terms of the Purchase Agreement. In connection with the transactions contemplated
by the Purchase Agreement, the Company has registered with the U.S. Securities and Exchange Commission (the “SEC”)
the following shares of Common Stock:

 

	 	(1)	[___________]
    shares of Common Stock that have been issued to the Buyer on [INSERT DATE OF ISSUANCE] (the “Initial Purchase Shares”);
    and
	 	 	 
	 	(2)	[____________]
    shares of Common Stock to be issued to the Buyer upon purchase by the Buyer from the Company from time to time in accordance
    with the terms of the Purchase Agreement (the “Purchase Shares”).

 

Pursuant
to the Purchase Agreement, the Company also has entered into a Registration Rights Agreement, dated as of August 10, 2018, with
the Buyer (the “Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to
register [the Initial Purchase Shares and] the Purchase Shares under the Securities Act of 1933, as amended (the “Securities
Act”). In connection with the Company’s obligations under the Purchase Agreement and the Registration Rights Agreement,
on [_________], 2018, the Company filed a Registration Statement (File No. 333-[_________]) (the “Registration Statement”)
with the SEC relating to the resale of [the Initial Purchase Shares and] the Purchase Shares.

 

In
connection with the foregoing, we advise you that the SEC has entered an order declaring the Registration Statement effective
under the Securities Act at [_____] [A.M./P.M.] on [__________], 2018 and we have no knowledge, after review of the stop order
notification website maintained by the SEC, that any stop order suspending its effectiveness has been issued or that any proceedings
for that purpose are pending before, or threatened by, the SEC and [the Initial Purchase Shares and] the Purchase Shares are available
for resale under the Securities Act pursuant to the Registration Statement and may be issued without any restrictive legend or
stop transfer orders maintained against them.

 

	 	 	Very truly yours,
	 	                 	 	                      
	 	 	By:	 
	 	 	 	 
	cc:	Lincoln
    Park Capital Fund, LLC	 	 

 

    	 	 	 

    	 

    

 

EXHIBIT
B

 

TO
REGISTRATION RIGHTS AGREEMENT

 

Information
About The Investor Furnished To The Company By The Investor

Expressly
For Use In Connection With The Registration Statement

 

Information
With Respect to Lincoln Park Capital

 

As
of the date of the Purchase Agreement, Lincoln Park Capital Fund, LLC, beneficially owned [____________] shares of our common
stock. Josh Scheinfeld and Jonathan Cope, the Managing Members of Lincoln Park Capital, LLC, the manager of Lincoln Park Capital
Fund, LLC, are deemed to be beneficial owners of all of the shares of common stock owned by Lincoln Park Capital Fund, LLC. Messrs.
Cope and Scheinfeld have shared voting and investment power over the shares being offered under the prospectus filed with the
SEC in connection with the transactions contemplated under the Purchase Agreement. Lincoln Park Capital, LLC is not a licensed
broker dealer or an affiliate of a licensed broker dealer.Exhibit 10.1

 

Master Agreement

This Master Agreement (the "Agreement") effective as of the 30th day of September 2017 (the "Effective Date"), is entered into by and between TEO, Inc., a Nevada corporation ("TEO") and TEO Foods, Inc., a Nevada corporation (the "TEO Foods").  Teo and Teo Foods may hereinafter be referred to individually as a "Party" and collectively as the "Parties".

RECITALS

Whereas, Teo holds intellectual property it wishes to license to Teo Foods so that Teo Foods can produce and sell food products utilizing the Teo proprietary advanced food pasteurization/sterilization systems, the TEO graphic logo and name.

Whereas, Teo will utilize information obtained from the product development and production to adjust, revise, modify or otherwise improve its equipment, processes and procedures.

Whereas, Teo Foods will utilize information obtained from the development and production to develop product formulations which may benefit from the application of Teo's advanced pasteurization/sterilization systems and provide a competitive advantage in the marketplace.

Now therefore, in consideration of the mutual promises and covenants of this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

Article 1: Goals and Objectives

The Parties each have a strong desire to improve the quality and safety of food products through the use of Teo's advanced sterilization systems. Both Teo ́ and Teo Foods desire to generate revenue through the sale of food products prepared utilizing these advanced food pasteurization/sterilization systems.

Both Teo and TEO Foods desire to take advantage of the Teo technology to produce high quality shelf stable & refrigerated food products; maintaining a competitive advantage in the marketplace through continuous improvement and innovation utilizing these advanced processes.

Article 2: Contributions of the parties

Teo shall initially provide non-exclusive use of one of its advanced pasteurization/sterilization systems. Once production levels reach a three-month average level where annual use/royalty and service fees payable to Teo from food sales that will exceed $250,000, Teo Foods shall lease its own production system from Teo at reasonable terms to be negotiated in good faith by the Parties.

Subject to the parties' mutual agreement on the necessary details/logistics, Teo ́ shall provide technical staff necessary to, repair, adjust, revise, improve and maintain the pasteurization/sterilization system. This may include Teo's employees, consultants and sub-contractors. Teo may also operate for production at cost plus 10% or may train Teo Foods employees to operate, repair and maintain the sterilization systems.

Article 3: Intellectual Property

The Parties understand that the information obtained from the production process may benefit, improve or otherwise create new intellectual property. Therefore, the ownership of and use of any Intellectual property that may be created during this relationship shall be as follows:

Teo' shall hold all intellectual property relating to its advanced pasteurization/sterilization system that may result from the operation.  Teo' must maintain control over the evolution of its advanced systems. 

 

 

Exhibit 10.1 -- Page 1

Teo Foods will likely develop certain products and formulae which would include overall products, recipes, specifications and other formulations for products that it may intend for commercial sale. ("Product and Formulae").  All such Teo Foods Product and Formulae however modified or improved by Teo or Teo Foods on their own or jointly shall remain the sole and exclusive property of Teo Foods. Teo Foods Product and Formulae and all such modifications and improvements shall be for the exclusive use and benefit of Teo Foods and may not be used by Teo to manufacture or assist in the manufacture of products to be sold to or through any other person or entity other than Teo Foods or to be distributed by or on behalf of any person or entity other than Teo Foods.

The prior paragraph notwithstanding, any modifications made to the general guidelines (e.g. salt content or maximum component particulate size) of the Teo Foods Product and Formulae which are made by Teo for the purpose of improving compatibility related to the pasteurization/sterilization process shall not be the property of Teo Foods. Teo shall have complete and unrestricted rights to modifications made by Teo to the general guidelines related to pasteurization/sterilization process. Examples of these types of modifications that may be made by Teo include but are not limited to changes which relate to the dielectric properties of the formulae or to the size, shape placement or dispersion of components for pasteurization/sterilization compatibility.

 Teo and Teo Foods may develop certain intellectual property related to packaging, material handling, cooling, storage and product testing. Teo shall hold all rights to intellectual property related to its advanced pasteurization/sterilization system including related intellectual property developed for packaging, material handling, cooling, storage, quality control and validation testing. Teo Foods shall hold all intellectual property rights related to its Products and Formulae.

Article 4: License for use

Pursuant to the terms of this Agreement, Teo grants Teo Foods a nonexclusive, nontransferable license to use the following intellectual property:

 

a. Teo trademarks consisting of the graphic and word trademarks identified in the trademark license (Exhibit "A") to this Agreement for the sale of food products.

 

b. Teo intellectual property, to produce food products for sale using the Teo', Inc. advanced food sterilization systems.

 

c. Teo Foods shall be granted additional nonexclusive license to use subsequently granted or developed intellectual property consistent with the intent of this agreement to produce food products for sale using the Teo, Inc. advanced food sterilization systems.

Article 5: Payment for Licenses and Services

Teo Foods shall pay an initial licensing fee followed by additional use/royalty fees and services fees.

		a.	
License requires an initial $1,000,000 licensing fee payable in installments with the first installment of $100,000 due on or before June 30, 2018, the second installment of $300,000 due on or before December 31, 2018 and the remaining balance due in twelve equal monthly payments with the first due January 31, 2019.

		b.	
Commencing January 1, 2020, a use/royalty and service fee of 5.5% of gross revenue for food sales processed using the Teo intellectual property shall be payable quarterly.

		c.	
Should annual use/royalty and service fee for the 12-month period ended December 31, 2020 payable to Teo from food sales using the Teo intellectual property be less than $500,000 then Teo Foods may pay the difference to maintain the license.

		d.	
Should annual use/royalty and service fee for the 12-month period ended December 31, 2021 payable to Teo from food sales using the Teo intellectual property be less than $750,000 then Teo Foods may pay the difference to maintain the license.

 

 

  

Exhibit 10.1 -- Page 2

		e.	
Should annual use/royalty and service fee for the 12-month period ended December 31, 2022 payable to Teo from food sales using the Teo intellectual property be less than $1,000,000 then Teo Foods may pay the difference to maintain the license.

		f.	
Thereafter the minimum annual use/royalty and service fee shall increase 10% per year.

Article 6: Technology Limitations and Regulatory Requirements

The Parties understand that the Teo technologies are new and require validation in a commercial setting. Although the Parties are confident any unforeseen technical challenges can be overcome the possibility exists that limitations encountered cannot be overcome by the current state of technology. The parties intend and agree that products will initially be produced for sale as frozen or refrigerated. Teo Foods acknowledges and agrees that sale of products as shelf stable may require regulatory approvals that may never be granted by the related agencies in the regions where the products are intended to be sold. TEO Foods also acknowledges and agrees that the initial system which is being provided for non-exclusive use may not be available for production when requested. Teo will notify Teo Foods of any planned non-operation, maintenance or refit periods and coordinate to minimize any impact to product production requirements.

Article 7: Lease and Use of Production Systems

Pursuant to Article 2 of this Agreement, Teo shall initially provide non-exclusive use of one of its advanced pasteurization/sterilization systems. Once production levels reach a three-month average level where annual use/royalty and service fees payable to Teo from food sales that will exceed $500,000, Teo Foods shall lease its own production system from Teo at reasonable terms to be negotiated in good faith by the Parties.

Teo Foods may at any time lease its own production system from Teo. Lead time for delivery can exceed six months and Teo Foods shall be responsible to provide suitable facilities meeting all permit and other regulatory requirements that may apply to the operation of the systems. Any systems or components that have discontinued use shall revert to Teo for disposition at its sole discretion. The Teo advanced food pasteurization/sterilization systems or its components may not be transferred, used by or for any 3rd party without the written consent of Teo.

Article 8: Sterilization Process Data Access

All pasteurization/sterilization process data shall remain the sole property of Teo. System data shall be handled in a controlled manner and not distributed to unauthorized parties. Teo shall share sterilization process data with Teo Foods staff as required to maintain safety and improve product quality.

Teo Foods will allow Teo reasonable access to future systems deployed in Teo Foods facilities, including the production data from those systems, for the purpose of continual improvement of the existing systems and the development of more advanced systems.  Such access will be provided upon notice and approval of Teo Foods, which will not be unreasonable withheld.

The data contemplated by this Section 8 may not be disclosed to any third party without the prior written consent of Teo. This provision shall survive the termination or expiration of this Agreement.

Article 9: Confidentiality

The Parties agree that it is paramount to the success of their relationship that information be freely exchanged between to achieve their mutual goals. The information exchanged will likely include technical, strategic and financial information related to both Teo and Teo Foods.

 

 

Exhibit 10.1 -- Page 3

Therefore, all confidential business and technical information, including but not limited to Teo or Teo Foods, compositions, specifications, formulations, plans, strategies, the terms/existence of this Agreement, processing or equipment designs, disclosed in writing, mechanically, orally, or observed on either party's premises  (the "Proprietary Information") shall be kept confidential by the receiving party after the receipt thereof, using the same safeguards as it uses to protect its own commercially confidential information of a similar character, but at least using reasonable care. The receiving party shall not use, except to perform pursuant to this Agreement, or disclose the disclosing party's Proprietary Information without the prior express written consent of the disclosing party. The receiving party's obligations shall not apply to information that is: (a) proven to be already known to or otherwise in the possession of the receiving party at the time of receipt from the disclosing party; or (b) or becomes publicly available or otherwise in the public domain through no act or omission of the receiving party; or (c) rightfully obtained by the receiving party from any third party without restriction and without breach of a similar agreement; or (d) proven to be independently developed by the receiving party without use of the disclosing party's Proprietary Information; or (e) released by the disclosing party to any third party without restrictions.  The receiving party is entitled to disclose Proprietary Information as required pursuant to judicial action, or governmental regulations, provided that the receiving party notifies the disclosing party prior to such disclosure and cooperates with the disclosing party in the event the disclosing party elects to contest such disclosure. The receiving party agrees to reveal the Proprietary Information only to those agents, representatives, contractors, employees and affiliates who need to know the Proprietary Information, and who are informed by the receiving party of the confidential nature of the Proprietary Information.

This provision shall survive the termination or expiration of this Agreement.

Article 10: Term, Termination and Modification

This Agreement shall remain in force until terminated by mutual written consent of the Parties or as otherwise set forth herein.

The Parties shall each have the right to terminate this Agreement upon sixty (60) days written notice of a breach of the terms of this agreement. The Party that has received notice of a breach shall have this notice period to cure the breach.  No waiver shall occur in the event a Party does not give notice of a breach.

Teo shall have the right to terminate this Agreement immediately upon and without written notice to Teo Foods in the event of any affirmative act of insolvency by Teo Foods, or upon the appointment of any receiver or trustee to take possession of the properties of Teo Foods or upon the winding-up, sale, consolidation, merger or any sequestration by governmental authority of Teo Foods.

This Agreement can be modified by mutual written consent of the Parties. The Parties may further define this agreement in writing as may be required based on the terms and understandings established in this agreement.

Inasmuch as a breach of the covenants contained in this Agreement are not fully measurable in money damages, the Parties further agree that either Party shall be entitled to injunctive relief in any court of competent jurisdiction to enjoin any such breach or threatened breach hereof by such other Party, together with such provable money damages as may be awarded by any such court.

Non-disclosure and intellectual property provisions shall survive termination of this agreement between the Parties.

 

Exhibit 10.1 -- Page 4

  

Article 11: Representations and Warranties

Each Party hereby represents and warrants that:

		(a)	
They shall comply with all applicable federal, state, and local laws, rules, regulations, ordinances, and industry standards;

		(b)	
The execution, delivery and performance of the Agreement are not prohibited by, and do not violate, any provision or result in any material breach of the Articles of Incorporation or bylaws or equivalent organizational documents;

		(c)	
No consent, approval, authorization or order of, and no filing with or notification to, any governmental agency, body, regulatory authority, bureau, commission or instrumentality or other person or entity is required to be obtained in connection with the execution, delivery and performance of this Agreement; and

		(d)	
They have all necessary rights in and to any processes, designs, formulations, compositions, specifications, inventions, discoveries, methods, improvements, or know-how provided hereunder such that the other Party's use, distribution, or manufacture of Products based upon or related to such processes, designs, formulations, compositions, specifications, inventions, discoveries, methods, improvements, or know-how, will not infringe upon or violate the rights of any third parties.

Article 12: Indemnity

Each party (as "Indemnifying Party") shall defend, indemnify and hold harmless the other party, together with all subsidiaries, divisions, affiliates, parents, assigns, directors, officers, agents and employees of such party (collectively the "Indemnified Party") from and against any and all claims, demands, actions, causes of action, proceedings, judgments and other liabilities, obligations, losses, damages, costs and expenses (including reasonable attorneys' fees and costs) of any nature (collectively, the "Claims") to the extent they are due to or arise from: (i) the breach of any representation, warranty or obligation contained in this Agreement by the Indemnifying Party; or (ii) any unauthorized disclosure by the Indemnifying Party.

The foregoing indemnification obligations shall not apply to the extent the claims are due to or arise from the negligence or intentional misconduct of the Indemnified Party.  In no event will the Indemnifying Party be liable for any incidental, consequential or indirect damages arising from loss of goodwill, profits or revenue.

The Indemnifying Party's obligation is conditioned upon the Indemnified Party: (i) advising the Indemnifying Party of the Claims, within such a time frame as not to materially prejudice the rights of the Indemnifying Party; and (ii) assisting the Indemnifying Party and its representatives in the investigation and defense (at the Indemnifying Party's cost and expense) of the Claims for which indemnification is sought.  This agreement of indemnity shall not be valid as to any settlement of Claims or offer of settlement or compromise without the prior written approval of the Indemnifying Party, such consent to not be unreasonably withheld or delayed.

Waiver by either Party of any breach or failure to enforce any of the terms or conditions of this Agreement at any time shall not in any way affect, limit or waive such Party's rights thereafter to enforce and compel strict compliance with every term and condition hereof.

 

  

Exhibit 10.1 -- Page 5

Article 13: General Terms

If any term or provision contained herein shall hereafter be held to be invalid or unenforceable, this Agreement shall be construed as if not containing such term or provision and the other rights and obligations of the Parties hereunder shall continue in force accordingly.  Should such invalid or unenforceable term affect the essence of this Agreement, the Parties shall immediately attempt in good faith to negotiate a valid and enforceable provision in replacement thereof.

Neither Party may assign this Agreement or any rights or obligations hereunder without the other Party's express prior written consent, such consent not to be unreasonably withheld or delayed.

This Agreement shall be interpreted, governed and enforced in accordance with the laws of the state of California without regard to its choice of law provisions.

This Agreement contains the entire agreement and understanding between the Parties hereto with respect to the subject matter hereof and merges and supersedes all prior discussions and writings with respect thereto, and there are no warranties or representations except for those specifically set forth herein.  No modification or alteration of this Agreement shall be effective unless made in writing and signed by the Parties hereto.

 

 

Exhibit 10.1 -- Page 6

Article 14: Contacts

	
For:

	 	
For:

	
Teo, Inc.

	 	
Teo Foods, Inc.

	
455 54th St., Suite 102

	 	
C/O Teo, Inc.

	
San Diego, California 92114

	 	
455 54th St., Suite 102

	 	 	
San Diego, California 92114

	
Jeffrey H. Mackay, Esq.

	 	 
	
CEO, Director

	 	 
	
4871 Narragansett Ave.

	 	
Jeffrey H. Mackay, Esq.

	
San Diego, CA 92107

	 	
CEO, Director

	
(619) 758-1973 office

	 	
4871 Narragansett Ave.

	
 (619) 222-4764 fax

	 	
San Diego, CA 92107

	
jeff@teofoods.com

	 	
(619) 758-1973 office

	 	 	
 (619) 222-4764 fax

	
or

	 	
jeff@teofoods.com

	
John O'Keefe

	 	 
	
CFO, Director

	 	 
	
5307 Emerald Brook

	 	 
	
Houston, TX 77041

	 	 
	
(713)725-1876 cellular

	 	 
	
john@teofoods.com

	 	 

  

Article 15: Approval

IN WITNESS whereof, the Parties hereto have caused this Agreement to be executed by their authorized representatives.

This Agreement shall be effective as of September 30, 2017.

 

	
For:

	
For:

	
Teo', Inc.

	
Teo Foods, Inc.

	 	 
	 

/s/ Jeffrey H. Mackay

	
/s/ Jeffrey H. Mackay

	
Jeffrey H. Mackay, Esq.

	
Jeffrey H. Mackay, Esq.

	
CEO, Director

	
CEO, Director

	 	 

 

Exhibit 10.1 -- Page 7

Exhibit "A"

TRADEMARK NON-EXCLISIVE LICENSE

This Nonexclusive License is effective as of September 30, 2017 and granted pursuant to the Master Agreement by and between Teo Inc. (hereinafter called OWNER), a Corporation, organized and existing under the laws of Nevada and Teo Foods, Inc. (hereinafter called USER), a Corporation, organized and existing under the laws of Nevada.

WHEREAS, OWNER is the owner of the trademarks and service marks (hereinafter called Marks) and registrations thereof listed on Schedule "A" and

WHEREAS, USER is desirous of using the Marks in connection with its business;

NOW, THEREFORE, in consideration of the foregoing and of the mutual promises hereinafter set forth, the parties agree as follows:

1. GRANT OF LICENSE

OWNER grants to USER a nonexclusive, nontransferable license to use the Marks in its name and in connection with the goods and services covered by the registrations referred to in Schedule A and USER accepts the license subject to the following terms and conditions.

2. OWNERSHIP OF MARKS

USER acknowledges the ownership of the Marks in OWNER, agrees that it will do nothing inconsistent with such ownership and that all use of the Marks by USER shall inure to the benefit of and be on behalf of OWNER, and agrees to assist OWNER in recording this Agreement with appropriate government authorities. USER agrees that nothing in this License shall give USER any right, title or interest in the Marks other than the right to use the Marks in accordance with this License and USER agrees that is will not attack the title of OWNER to the Marks or attack the validity of this License.

3. QUALITY STANDARDS

USER agrees that the nature and quality of: all services rendered by USER in connection with the Marks; all goods sold by USER under the Marks; and all related advertising, promotional and other related uses of the Marks by USER shall conform to standards set by and be under the control of OWNER.

4. QUALITY MAINTENANCE

USER agrees to cooperate with OWNER in facilitating OWNER's control of such nature and quality, to permit reasonable inspection of USER's operation, and to supply OWNER with specimens of all uses of the Marks upon request. USER shall comply with all applicable laws and regulations and obtain all appropriate government approvals pertaining to the sale, distribution and advertising of goods and services covered by this License.

5. FORM OF USE

USER agrees to use the marks only in the form and manner and with appropriate legends as prescribed from time to time by OWNER, and not to use any other trademark or service mark in combination with any of the Marks without prior written approval of OWNER.

Exhibit 10.1 -- Page 8

6. INFRINGEMENT PROCEEDINGS

USER agrees to notify OWNER of any unauthorized use of the Marks by others promptly as it comes to USER's attention. OWNER shall have the sole right and discretion to bring infringement or unfair competition proceedings involving the Marks.

7. TERM

This Agreement shall continue in force and effect for the terms of the registrations issued for said Marks listed in Schedule "A" and all renewals thereof, unless sooner terminated as provided for herein.

8. TERMINATION FOR CAUSE

OWNER shall have the right to terminate this License immediately without notice to USER in the event of any affirmative act of insolvency by USER, or upon the appointment of any receiver or trustee to take possession of the properties of USER or upon the winding-up, sale, consolidation, merger or any sequestration by governmental authority of USER, upon breach of any of the provisions hereof by USER or upon the terms of Article 10: Term, Termination and Modification of the Master Agreement by and between the OWNER and USER.

9. EFFECT OF TERMINATION

Upon termination of this Agreement USER agrees to immediately discontinue all use of the Marks and any term confusingly similar thereto, and to delete the same from its corporate or business name, to cooperate with OWNER or its appointed agent to apply to the appropriate authorities to cancel recording of this Agreement from all government records, to destroy all printed materials bearing any of the Marks, and that all rights in the Marks and the good will connected therewith shall remain the property of OWNER.

10. INTERPRETATION OF AGREEMENT

It is agreed that this Agreement may be interpreted according to the laws of the State of California, United States of America.

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

 

	
For:

	
For:

	
Teo', Inc.

	
Teo Foods, Inc.

	 	 
	 

/s/ Jeffrey H. Mackay

	
/s/ Jeffrey H. Mackay

	
Jeffrey H. Mackay, Esq.

	
Jeffrey H. Mackay, Esq.

	
CEO, Director

	
CEO, Director

	 	 

 

Exhibit 10.1 -- Page 9

Schedule "A" to the Trademark Non-Exclusive License between TEO and TEO Foods.

 "TEO"   meaning "to make warm" in Scots Gaelic

"Restaurant Quality Meals Fresh from Your Pantry"

Exhibit 10.1 -- Page 10

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