Document:

Exhibit 10.3

 

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

 

FORM OF COMMON STOCK PURCHASE WARRANT

 

PROTEA
BIOSCIENCES GROUP, INC.

 

	Warrant No. [___]	Issue Date: May 22, 2015

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, _____________ (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on the
three year anniversary of the Final Closing Date under the Subscription Agreement (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Protea Biosciences Group, Inc., a Delaware corporation (the “Company”),
up to 7,500,000 shares (the “Warrant Shares”) of Common Stock. The purchase price of one share of Common
Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.              Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Warrant, (a) capitalized terms not otherwise defined
herein shall have the meanings set forth in the Subscription Agreement and (b) the following terms shall have the following meanings:

 

“Business
Day” means any day except any Saturday, any Sunday, any day which shall be a federal legal holiday in the United
States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental
action to close.

 

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

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

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“Subscription
Agreement” means the Subscription Agreement, dated as of May 14, 2015 among the Company and the original Holders,
as amended, modified or supplemented from time to time in accordance with its terms.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Trading
Day” means a day on which the New York Stock Exchange is open for business.

 

“Trading
Market” means the following markets or exchanges on which the Common Stock may be listed or quoted for trading on
the date in question: the NYSE MKT, LLC, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange or the OTC Bulletin Board, or the other OTC markets, including the OTCQX, OTCQB and OTC Pink markets.

 

“Transaction
Documents” shall have the meaning set forth in the Suscription Agreement.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a national securities exchange, the daily volume weighted average price of the Common Stock for such date
(or the nearest preceding date) on the trading market on which the Common Stock is then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. New York City time to 4:02 p.m. New York City time); (b) if the Common Stock is quoted
on the OTC Bulletin Board, the volume weighted average price of the Common Stock for such date (or the nearest preceding date)
on the OTC Bulletin Board; (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices
for the Common Stock are then reported on the OTC markets, including the OTCQX, OTCQB and OTC Pink markets, or in the “Pink
Sheets” published by Pink Sheets, LLC (or a similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price per share of the Common Stock so reported; or (d) in all other cases, the fair market value of a share
of Common Stock as determined by an independent appraiser selected in good faith by the Subscribers of a majority in interest
of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the
Company; provided that in each case where Bloomberg L.P. data is being relied upon, Holder shall provide to the Company a copy
of such information for the Company's records.

 

Section 2.              Exercise.

 

a)        Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or
agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing
on the books of the Company) of a duly executed notice of exercise (“Notice of Exercise”) form attached
hereto as Exhibit A; and, within three (3) Trading Days of the date said
Notice of Exercise is delivered to the Company, the Company shall have received payment of the aggregate Exercise Price of the
shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank. Notwithstanding anything herein
to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased
all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered
to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal
to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of
Warrant Shares purchased and the date of such purchases. In the event of any dispute or discrepancy, the records of the Company
shall be controlling and determinative in the absence of manifest error.

 

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b)        Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $0.3251,
subject to adjustment hereunder (the “Exercise Price”).

 

c)        Exercise
Limitations. Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise,
to the extent that after giving effect to such issuance after exercise, the Holder (together with the Holder’s affiliates,
and any other person or entity acting as a group together with the Holder or any of the Holder’s affiliates), would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of this Section, beneficial ownership shall
be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. Holder
is solely responsible for any schedules required to be filed in accordance therewith. The Company shall have no obligation to
verify or confirm the accuracy of such filings. In any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership
Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect
to the issuance of Warrant Shares issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’ prior
notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(c), provided
that the Beneficial Ownership Limitation may not exceed 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of Warrant Shares upon exercise of this Warrant held by the Holder and the provisions of this
Section 2(c) shall continue to apply, unless the Holder upon not less than 61 days’ prior notice to the Company determines
to waive the Beneficial Ownerhship Limitation requirements described in this Section 2(c) in its entirety. Any such increase or
decrease will not be effective until the 61st day after such notice is delivered to the Company. The limitations contained
in this paragraph shall apply to a successor holder of this Warrant.

 

 

1 A thirty pecent premium over
the conversion price.

 

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d)        Mechanics
of Exercise.

 

i.            Delivery
of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the Company’s transfer
agent (the “Transfer Agent”) to the Holder by crediting the account of the Holder’s prime broker
with the Depository Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if
the Company is then a participant in such system and either (A) there is an effective registration statement permitting the resale
of the Warrant Shares by the Holder or (B) the shares are eligible for resale without volume or manner-of-sale limitations pursuant
to Rule 144, and otherwise by physical delivery of certificates to the address specified by the Holder in the Notice of Exercise
within four (4) Trading Days from the delivery to the Company of the Notice of Exercise Form, surrender of this Warrant (if required)
and payment of the aggregate Exercise Price as set forth above (the “Warrant Share Delivery Date”).
This Warrant shall be deemed to have been exercised on the date the Exercise Price is received by the Company. The Warrant Shares
shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have
become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised by payment to the Company
of the Exercise Price and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance
of such shares, have been paid. If the Company is obligated to and fails for any reason to deliver to the Holder certificates
evidencing the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the
Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise, $10 per
Trading Day (increasing to $20 per Trading Day on the seventh Trading Day after such liquidated damages begin to accrue) for each
Trading Day after such Warrant Share Delivery Date until such certificates are delivered.

 

ii.         Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant
Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for
by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii.         Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing
the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind
such exercise.

 

iv.         Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails for any reason to deliver to the Holder such certificate or certificates by the Warrant Share Delivery Date,
and if after such Warrant Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open market transaction
or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of
a sale by the Holder of the Warrant Shares which the Holder was entitled to receive upon the conversion relating to such Warrant
Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the Holder (in addition
to any other remedies available to or elected by the Holder) the amount by which (x) the Holder’s total purchase price (including
any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number of Warrant Shares
that the Company was required to deliver to the Holder in connection with the exercise at issue multiplied by (2) the price at
which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise
was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common
Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example,
if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise
of this Warrant with respect to which the sale price of the Warrant Shares (including any brokerage commissions) giving rise to
such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence, the Company shall be required
to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in
respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’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 Warrant
Shares upon exercise of this Warrant as required pursuant to the terms hereof.

 

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v.           No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise, the Company
shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price or round up to the next whole share.

 

vi.         Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall
be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the assignment form (“Assignment
Form”) attached hereto as Exhibit B duly executed by the Holder and the Company may require, as a condition thereto,
the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

 

vii.         Closing
of Books. The Company will not close its shareholder books or records in any manner which prevents the timely exercise of
this Warrant, pursuant to the terms hereof.

 

Section 3.             Redemption
of Warrant. Commencing at any time after the date on which after the Common Stock closing bid price reported by Bloomberg
LP remains at an amount $0.752 per share (as adjusted
for forward or reverse stock splits, stock dividends or other similar proportionately-applied change) for at least twenty (20)
consecutive Trading Days (the “Call Condition”), the Company shall have the right, upon sixty (60) days’
notice to the Holder given not later than thirty (30) Trading Days after the date on which the Call Condition is satisfied (the
“Redemption Notice”) to redeem the number of Warrant Shares specified in the Redemption Notice, less
any amount previously exercised, at a price of $0.01 per Warrant Share (the “Redemption Price”), on
the date set forth in the Redemption Notice, but in no event earlier than sixty (60) days following the date of the receipt by
the Holder of the Redemption Notice (the “Redemption Date”). The Redemption Notice shall be provided
to the Holder promptly and in all events within five (5) Trading Days after Company announces its intention to exercise its redemptions
rights under this section. The Holder may exercise this Warrant at any time (in whole or in part) prior to the Redemption Date.
Any portion of this Warrant that is subject to the Call Condition which is not exercised by 5:30 p.m. (Eastern time) on the Redemption
Date shall no longer be exercisable and shall be returned to the Company (and, if not so returned, shall automatically be deemed
canceled), and the Company, upon its receipt of the unexercised portion of this Warrant, shall issue therefore in full and complete
satisfaction of its obligations under such called but unexercised portion of this Warrant to the Holder an amount equal to the
number of shares of Common Stock called but remaining unexercised multiplied by the Redemption Price. The Redemption Price shall
be mailed to such Holder at its address of record, and the Warrant shall be canceled.

 

 

2 Represents
3x the conversion price of $0.25

 

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Section 4.             Certain
Adjustments.

 

a)        Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any Warrant Shares issued by the Company upon exercise
of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become
effective immediately after the record date for the determination of shareholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b)         Subsequent
Rights Offerings. In addition to any adjustments pursuant to the other subsections of this Section 4, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”),
then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise
of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership
Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or,
if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant,
issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such
Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled
to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such
Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time,
if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

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c)        Pro
Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common
Stock (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants
to subscribe for or purchase any security other than the Common Stock, then in each such case the Exercise Price shall be adjusted
by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled
to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned
above, and of which the numerator shall be such VWAP on such record date less than the per share fair market value at such record
date of the portion of such assets or evidence of indebtedness or rights or warrants so distributed applicable to one outstanding
share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described
in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription
rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall
become effective immediately after the record date mentioned above.

 

d)        Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company effects any merger or consolidation of the
Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one or a series
of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property or (iv)
the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock
is effectively converted into or exchanged for other securities, cash or property (each “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would
have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, the number of shares
of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional
consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction
by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental
Transaction. For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply
to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock
in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable
manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are
given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be
given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental
Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity
in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing
the Holder’s right to exercise such warrant into Alternate Consideration. The terms of any agreement pursuant to which a
Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions
of this Section 4(d) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent
transaction analogous to a Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction
that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act,
or (3) a Fundamental Transaction involving a person or entity not traded on a national securities exchange, the Company or any
successor entity shall pay concurrently with the consummation of the Fundamental Transaction, and the Holder shall accept an amount
of cash equal to the value of this Warrant as determined in accordance with the Black Scholes Option Pricing Model obtained from
the “OV” function on Bloomberg L.P. using (A) a price per share of Common Stock equal to the VWAP of the Common Stock
for the Trading Day immediately preceding the date of consummation of the applicable Fundamental Transaction, (B) a risk-free
interest rate corresponding to the U.S. Treasury rate for a 30 day period immediately prior to the consummation of the applicable
Fundamental Transaction, (C) an expected volatility equal to the 100 day volatility obtained from the “HVT” function
on Bloomberg L.P. determined as of the Trading Day immediately following the public announcement of the applicable Fundamental
Transaction and (D) a remaining option time equal to the time between the date of the public announcement of such transaction
and the Termination Date; provided that in each case where Bloomberg L.P. data is being relied upon, Holder shall provide to the
Company a copy of such information for the Company's records.

 

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e)          If
at any time until the earliest of (1) the Termination Date, (2) the date that this Warrant is exercised in full, or (3) the date
that the Company’s shares of common stock are approved for an uplisting to a senior U.S. exchange such as The NASDAQ STOCK
MARKET or the NYSE MKT, the Company issues or sells any additional shares of Common Stock (“Additional Shares of Common
Stock”), excluding any shares of Common Stock sold in connection with an Exempt Issuance, for consideration per
share of Common Stock that is less than $0.325 (as such amount may be
adjusted for any stock dividend, stock split, stock combination, reclassification or similar transaction after the date hereof)
(a "Dilutive Issuance"), on the date of and immediately prior to the Dilutive Issuance, the Exercise Price,
then in effect, will be reduced concurrently with the Dilutive Issuance to a price (rounded to the nearest cent) calculated by
multiplying such Exercise Price by a fraction, of which (i) the numerator shall be the number of shares of Common Stock outstanding
on a fully diluted basis immediately prior to such Dilutive Issuance plus the number of shares of Common Stock which the aggregate
consideration received or to be received by the Company for the total number of Additional Shares of Common Stock issued pursuant
to the Dilutive Issuance would purchase at the Exercise Price; and (ii) the denominator shall be the number of shares of Common
Stock outstanding on a fully diluted basis immediately prior to such Dilutive Issuance plus the number of such Additional Shares
of Common Stock so issued. The provisions of this Section 4(e) shall not operate to increase the Exercise Price.

 

f)             Calculations.
All calculations under this Section 4 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 4, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

g)           Notice to
Holder.

 

i.            Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 4, the Company shall
promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

 

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ii.           Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any shareholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, of any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last
address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record
or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined
or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become
effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange
their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation,
merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing
thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder is entitled
to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering
such notice.

 

Section 5.             Transfer
of Warrant.

 

a)     Transferability.
Subject to compliance with any applicable securities laws and the conditions set forth in Section 5(d) herein and to the provisions
of the Subscription Agreement, this Warrant and all rights hereunder (including, without limitation, any registration rights)
are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated
agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder
or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue
to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
The Warrant, if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant
issued.

 

b)    New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of
the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed
by the Holder or its agent or attorney. Subject to compliance with Section 5(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Initial
Exercise Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c)    Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder,
and for all other purposes, absent actual notice to the contrary.

 

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d)    Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer
of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and
under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions pursuant
to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant,
as the case may be, comply with the provisions of the Subscription Agreement.

 

Section 6.             Miscellaneous.

 

a)    No
Rights as Shareholder Until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder
of the Company prior to the exercise hereof.

 

b)    Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c)    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.

 

d)    Authorized
Shares.

 

The Company
covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock one
hundred (100%) of the number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. In case such amount of Common Stock is insufficient at any time, the Company shall call and hold a special
meeting to increase the number of authorized shares of common stock. Management of the Company shall recommend to shareholders
to vote in favor of increasing the number of authorized shares of common stock.

 

The Company
further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty
of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the
purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading
Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise
of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant, be
duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company
in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

    	10

    	 

    

 

Except
and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its amended and restated certificate of incorporation, as amended, or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such
terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in
this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value
of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii)
take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and
nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable
the Company to perform its obligations under this Warrant.

 

Before
taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or
in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body or bodies having jurisdiction thereof.

 

e)      Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Subscription Agreement.

 

f)       Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions
upon resale imposed by state and federal securities laws.

 

g)      Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the fact that all
rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any provision
of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be
sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of
appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights,
powers or remedies hereunder.

 

h)      Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Subscription Agreement.

 

i)       Limitation
of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for
the purchase price of any Common Stock or as a shareholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

 

j)       Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

    	11

    	 

    

 

k)      Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Holder. The provisions
of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant and shall be enforceable by
the Holder or holder of Warrant Shares.

 

l)       Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

m)     Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

n)      Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

[Signature
Page Follows.]

 

    	12

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

 

	PROTEA BIOSCIENCES
    GROUP, INC.	 
	 	 
	By:	 	 
	 	Name: Steve Turner	 
	 	Title: Chief Executive Officer	 

 

    	 

    	 

    

 

EXHIBIT
A

 

NOTICE OF EXERCISE

 

TO:        PROTEA
BIOSCIENCES GROUP, INC.

 

(1)     The
undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant and
tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2)     Please
issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is
specified below:

 

	 	 	 

 

The Warrant Shares shall be delivered to the following DWAC
Account Number or by physical delivery of a certificate to:

 

	 	 	 

 

	 	 	 

 

	 	 	 

 

(3)     Accredited Investor.   The undersigned
is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity:

_______________________________________________________________________

 

Signature of Authorized Signatory of Investing Entity:

_________________________________________________

 

Name of Authorized Signatory:

___________________________________________________________________

 

Title of Authorized Signatory:

____________________________________________________________________

 

Date:

 

 

    	 

    	 

    

 

EXHIBIT
B

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED, [____] all of or [_______]
shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

_______________________________________________ whose address
is

 

_______________________________________________________________.

 

_______________________________________________________________

 

	 	Dated: ______________, _______

 

	 	Holder’s Signature:	 	 
	 	 	 
	 	Holder’s Address:	 	 
	 	 	 
	 	 	 	 

 

Signature Guaranteed: ___________________________________________

 

NOTE: The signature to this Assignment Form must correspond
with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be
guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.Exhibit 10.1

 

 

SPLIT-OFF AGREEMENT

 

This SPLIT-OFF AGREEMENT,
dated as of May 22, 2015 (this “Agreement”), is entered into by and among Akoustis Technologies, Inc., formerly
known as Danlax, Corp, a Nevada corporation (the “Seller”), Danlax Enterprise Corp., a Nevada corporation
(“Split-Off Subsidiary”), and Ivan Krikun (“Buyer”).

 

RECITALS:

 

WHEREAS, Seller
is the owner of all of the issued and outstanding capital stock of Split-Off Subsidiary; Split-Off Subsidiary is a wholly owned
subsidiary of Seller which will acquire the business assets and liabilities previously held by Seller; and Seller has no other
businesses or operations prior to the Merger (as defined herein);

 

WHEREAS, contemporaneously
with the execution of this Agreement, Seller, Akoustis, Inc., a Delaware corporation (“PrivateCo”), a
newly-formed wholly-owned subsidiary of Seller, Akoustis Acquisition Corp., a Delaware corporation (“Acquisition Sub”),
and certain other parties thereto, will enter into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”)
pursuant to which Acquisition Sub will merge with and into PrivateCo with PrivateCo remaining as the surviving entity (the “Merger”);
and the equity holders of PrivateCo will receive securities of Seller in exchange for their equity interests in PrivateCo;

 

WHEREAS, the
execution, delivery of this Agreement, and the consummation of the assignment, assumption, purchase and sale transactions contemplated
by this Agreement are conditions to the completion of the Merger pursuant to the Merger Agreement, and Seller has represented to
PrivateCo in the Merger Agreement that the transactions contemplated by this Agreement will be consummated prior to or contemporaneously
with the closing of the Merger, and PrivateCo relied on such representation in entering into the Merger Agreement;

 

WHEREAS, Buyer
desires to purchase the Shares (as defined in Section 2.1) from Seller, and to assume, as between Seller and Buyer, all responsibility
for any debts, obligations and liabilities of Seller (prior to the Merger) and Split-Off Subsidiary, on the terms and subject to
the conditions specified in this Agreement; and

 

WHEREAS, Seller
desires to sell and transfer the Shares to Buyer, on the terms and subject to the conditions specified in this Agreement;

 

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

 

I.     ASSIGNMENT
AND ASSUMPTION OF SELLER’S ASSETS AND LIABILITIES. 

 

Subject to the terms and conditions provided
below:

 

    	 

    	 

    

 

1.1           Assignment
of Assets. Seller hereby contributes, assigns, conveys and transfers to Split-Off Subsidiary, and Split-Off Subsidiary
hereby receives, acquires and accepts, all assets and properties of Seller as of the Closing Date (as defined below) immediately
prior to giving effect to the Effective Time, including but not limited to the following, but excluding in all cases (i) the
right, title and assets of Seller in, to and under the Merger Agreement and all other agreements and instruments referred to therein
(collectively, the “Transaction Documents”), and (ii) the capital stock of PrivateCo and Split-Off Subsidiary:

 

(a)          all
cash and cash equivalents (having an approximate value of $0);

 

(b)          all
accounts receivable (having an approximate value of $0);

 

(c)          all
inventories of raw materials, work in process, parts, supplies and finished products;

 

(d)          all
right, title and interest, of record, beneficial or otherwise, in and to and stock, membership interests, partnership interests
or other equity or ownership interests in any corporation, limited liability company, partnership or other entity, and all bonds,
debentures, notes or other securities;

 

(e)          all
of Seller’s rights, title and interests in, to and under all contracts, agreements, leases, licenses (including software
licenses), supply agreements, consulting agreements, commitments, purchase orders, customer orders and work orders, and including
all of Seller’s rights thereunder to use and possess equipment provided by third parties, and all representations, warranties,
covenants and guarantees related to the foregoing (provided that, to the extent any of the foregoing or any claim or right or benefit
arising thereunder or resulting therefrom is not assignable by its terms or the assignment thereof shall require the consent or
approval of another party thereto, this Agreement shall not constitute an assignment thereof if an attempted assignment would be
in violation of the terms thereof or if such consent is not obtained prior to the Effective Time, and in lieu thereof Seller shall
reasonably cooperate with Split-Off Subsidiary in any reasonable arrangement designed to provide Split-Off Subsidiary the benefits
thereunder or any claim or right arising thereunder);

 

(f)          all
intellectual property, including but not limited to issued patents, patent applications (whether or not patents are issued thereon
and whether modified, withdrawn or resubmitted), unpatented inventions, product designs, copyrights (whether registered or unregistered),
know-how, technology, trade secrets, technical information, notebooks, drawings, software, computer coding (both object and source)
and all documentation, manuals and drawings related thereto, trademarks or service marks and applications therefor, unregistered
trademarks or service marks, trade names, logos and icons and all rights to sue or recover for the infringement or misappropriation
thereof;

 

(g)          all
fixed assets, including but not limited to the machinery, equipment, furniture, vehicles, office equipment and other tangible personal
property owned or leased by Seller;

 

(h)          all
customer lists, business records, customer records and files, customer financial records, and all other files and information related
to customers, all customer proposals, all open service agreements with customers and all uncompleted customer contracts and agreements;
and

 

    	2

    	 

    

 

(i)          to
the extent legally assignable, all licenses, permits, certificates, approvals and authorizations issued by Governmental Entities
and necessary to own, lease or operate the assets and properties of Seller and to conduct Seller’s business as it is presently
conducted;

 

all of the foregoing being referred to
herein as the “Assigned Assets.”

 

1.2           Assignment
and Assumption of Liabilities. Seller hereby assigns to Split-Off Subsidiary, and Split-Off Subsidiary hereby assumes and
agrees to pay, honor and discharge all debts, adverse claims, liabilities, judgments and obligations, including tax obligations,
of Seller as of the Closing Date immediately prior to the Effective Time, whether accrued, contingent or otherwise and whether
known or unknown, including those arising under any law (including the common law) or any rule or regulation of any Governmental
Entity or imposed by any court or any arbitrator in a binding arbitration resulting from, arising out of or relating to the assets,
activities, operations, actions or omissions of Seller, or products manufactured or sold thereby or services provided thereby,
or under contracts, agreements (whether written or oral), leases, commitments or undertakings thereof, but excluding
in all cases the obligations of Seller under the Transaction Documents (all of the foregoing being referred to herein as the
“Assigned Liabilities”).

 

The assignment and
assumption of Seller’s assets and liabilities provided for in this Article I is referred to as the “Assignment.”

 

II.          PURCHASE
AND SALE OF STOCK.

 

2.1           Purchased
Shares. Subject to the terms and conditions provided below, Seller shall sell and transfer to Buyer and Buyer shall purchase
from Seller, on the Closing Date (as defined in Section 3.1), all of the issued and outstanding shares of capital stock of Split-Off
Subsidiary (the “Shares”), as set forth in Exhibit A attached hereto.

 

2.2           Purchase
Price. The purchase price for the Shares shall consist of the transfer and delivery by Buyer to Seller of the type and
number of shares of common stock and other securities of Seller that Buyer owns (the “Purchase Price Securities”),
as set forth in Exhibit A attached hereto, deliverable as provided in Section 3.3.

 

III.         CLOSING.

 

3.1           Closing.
The closing of the transactions contemplated in this Agreement (the “Closing”) shall take place prior to or
contemporaneously with the closing of the Merger immediately prior to the Effective Time. The date on which the Closing occurs
shall be referred to herein as the “Closing Date.”

 

3.2           Transfer
of Shares. At the Closing, Seller shall deliver to Buyer certificates representing the Shares purchased by Buyer, duly
endorsed to Buyer or as directed by Buyer, which delivery shall vest Buyer with good and marketable title to such Shares, free
and clear of all liens and encumbrances.

 

    	3

    	 

    

 

3.3           Payment
of Purchase Price. At the Closing, Buyer shall deliver to Seller a certificate or certificates representing Buyer’s
Purchase Price Securities duly endorsed to Seller, which delivery shall vest Seller with good and marketable title to the Purchase
Price Securities, free and clear of all liens and encumbrances.

 

3.4           Transfer
of Records. On or before the Closing, Seller shall transfer to Split-Off Subsidiary all existing corporate books and records
in Seller’s possession relating to Split-Off Subsidiary and its business, including but not limited to all agreements, litigation
files, real estate files, personnel files and filings with governmental agencies; provided, however, when any such documents
relate to both Seller and Split-Off Subsidiary, only copies of such documents need be furnished. On or before the Closing, Buyer
and Split-Off Subsidiary shall transfer to Seller all existing corporate books and records in the possession of Buyer or Split-Off
Subsidiary relating to Seller, including but not limited to all corporate minute books, stock ledgers, certificates and corporate
seals of Seller and all agreements, litigation files, real property files, personnel files and filings with governmental agencies;
provided, however, when any such documents relate to both Seller and Split-Off Subsidiary or its business, only copies of
such documents need be furnished.

 

3.5           Instruments
of Assignment. At the Closing, Seller and Split-Off Subsidiary shall deliver to each other such instruments providing for
the Assignment as the other may reasonably request (the “Instruments of Assignment”).

 

IV.          BUYER’S
REPRESENTATIONS AND WARRANTIES. Buyer represents and warrants to Seller and Split-Off Subsidiary that:

 

4.1           Capacity
and Enforceability. Buyer has the legal capacity to execute and deliver this Agreement and the documents to be executed
and delivered by Buyer at the Closing pursuant to the transactions contemplated hereby. This Agreement and all such documents constitute
valid and binding agreements of Buyer, enforceable in accordance with their terms.

 

4.2           Compliance.
Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby by Buyer will
result in the breach of any term or provision of, or constitute a default under, or violate any agreement, indenture, instrument,
order, law or regulation to which Buyer is a party or by which Buyer is bound.

 

    	4

    	 

    

 

4.3           Purchase
for Investment. Buyer is financially able to bear the economic risks of acquiring the Shares and the other transaction
contemplated hereby and has no need for liquidity in his investment in the Shares. Buyer has such knowledge and experience in financial
and business matters in general, and with respect to businesses of a nature similar to the business of Split-Off Subsidiary (after
giving effect to the Assignment), so as to be capable of evaluating the merits and risks of, and making an informed business decision
with regard to, the acquisition of the Shares and the other transactions contemplated hereby. Buyer is acquiring the Shares solely
for his own account and not with a view to or for resale in connection with any distribution or public offering thereof, within
the meaning of any applicable securities laws and regulations, unless such distribution or offering is registered under the Securities
Act of 1933, as amended (the “Securities Act”), or an exemption from such registration is available. Buyer has (i)
received all the information he has deemed necessary to make an informed decision with respect to the acquisition of the Shares
and the other transactions contemplated hereby; (ii) had an opportunity to make such investigation as he has desired pertaining
to Split-Off Subsidiary (after giving effect to the Assignment) and the acquisition of an interest therein and the other transactions
contemplated hereby, and to verify the information which is, and has been, made available to him; and (iii) had the opportunity
to ask questions of Seller concerning Split-Off Subsidiary (after giving effect to the Assignment). Buyer acknowledges that Buyer
is a current director and officer of Seller and Split-Off Subsidiary and, as such, has actual knowledge of the business, operations
and financial affairs of Split-Off Subsidiary (after giving effect to the Assignment). Buyer has received no public solicitation
or advertisement with respect to the offer or sale of the Shares. Buyer realizes that the Shares are “restricted securities”
as that term is defined in Rule 144 promulgated by the Securities and Exchange Commission under the Securities Act, the resale
of the Shares is restricted by federal and state securities laws and, accordingly, the Shares must be held indefinitely unless
their resale is subsequently registered under the Securities Act or an exemption from such registration is available for their
resale. Buyer understands that any resale of the Shares by him must be registered under the Securities Act (and any applicable
state securities law) or be effected in circumstances that, in the opinion of counsel for Split-Off Subsidiary at the time, create
an exemption or otherwise do not require registration under the Securities Act (or applicable state securities laws). Buyer acknowledges
and consents that certificates now or hereafter issued for the Shares will bear a legend substantially as follows:

 

THE SECURITIES EVIDENCED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR QUALIFIED
UNDER ANY APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”), HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD,
PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND QUALIFICATION
UNDER THE STATE ACTS OR PURSUANT TO EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATION REQUIREMENTS (INCLUDING, IN THE CASE OF
THE SECURITIES ACT, THE EXEMPTIONS AFFORDED BY SECTION 4(1) OF THE SECURITIES ACT AND RULE 144 THEREUNDER). AS A PRECONDITION TO
ANY SUCH TRANSFER, THE ISSUER OF THESE SECURITIES SHALL BE FURNISHED WITH AN OPINION OF COUNSEL OPINING AS TO THE AVAILABILITY
OF EXEMPTIONS FROM SUCH REGISTRATION AND QUALIFICATION AND/OR SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY THERETO THAT ANY SUCH
TRANSFER WILL NOT VIOLATE THE SECURITIES LAWS.

 

Buyer understands
that the Shares are being sold to him pursuant to the exemption from registration contained in Section 4(1) of the Securities
Act and that Seller is relying upon the representations made herein as one of the bases for claiming the Section 4(1) exemption.

 

    	5

    	 

    

 

4.4           Liabilities.
Following the Closing, Seller will have no liability for any debts, liabilities or obligations of Split-Off Subsidiary or its business
or activities, or the business or activities of Seller prior to the Closing that are unrelated to the business of PrivateCo, and
there are no outstanding guaranties, performance or payment bonds, letters of credit or other contingent contractual obligations
that have been undertaken by Seller directly or indirectly in relation to Split-Off Subsidiary or its business, or the business
of Seller prior to the Closing that are unrelated to the business of PrivateCo, and that may survive the Closing.

 

4.5           Title
to Purchase Price Securities. Buyer is the sole record and beneficial owner of the Purchase Price Securities. At Closing,
Buyer will have good and marketable title to the Purchase Price Securities, which Purchase Price Securities are, and at the Closing
will be, free and clear of all options, warrants, pledges, claims, liens and encumbrances, and any restrictions or limitations
prohibiting or restricting transfer to Seller, except for restrictions on transfer as contemplated by applicable securities laws.

 

V.            SELLER’S AND SPLIT-OFF SUBSIDIARY’S
REPRESENTATIONS AND WARRANTIES. Seller and Split-Off Subsidiary, as applicable, represent and warrant to Buyer that:

 

5.1           Organization
and Good Standing. Each of Seller and Split-Off Subsidiary is a corporation duly incorporated, validly existing, and in
good standing under the laws of the State of Nevada.

 

5.2           Authority
and Enforceability. The execution and delivery of this Agreement and the documents to be executed and delivered at the
Closing pursuant to the transactions contemplated hereby, and performance in accordance with the terms hereof and thereof, have
been duly authorized by Seller and Split-Off Subsidiary and all such documents constitute valid and binding agreements of Seller
and Split-Off Subsidiary enforceable in accordance with their terms.

 

5.3           Title
to Shares. Seller is the sole record and beneficial owner of the Shares. At Closing, Seller will have good and marketable
title to the Shares, which Shares are, and at the Closing will be, free and clear of all options, warrants, pledges, claims, liens
and encumbrances, and any restrictions or limitations prohibiting or restricting transfer to Buyer, except for restrictions on
transfer as contemplated by Section 4.3 above. The Shares constitute all of the issued and outstanding shares of capital stock
of Split-Off Subsidiary.

 

5.4           Representations
in Merger Agreement. Split-Off Subsidiary represents and warrants that all of the representations and warranties by Seller,
insofar as they relate to Split-Off Subsidiary, contained in the Merger Agreement are true and correct.

 

VI.          OBLIGATIONS
OF BUYER PENDING CLOSING. Buyer covenants and agrees that between the date hereof and the Closing:

 

6.1           Not
Impair Performance. Buyer shall not take any intentional action that would cause the conditions upon the obligations of
the parties hereto to effect the transactions contemplated hereby not to be fulfilled, including, without limitation, taking or
causing to be taken any action that would cause the representations and warranties made by any party herein not to be true, correct
and accurate as of the Closing, or in any way impairing the ability of Seller to satisfy its obligations as provided in Article
VII.

 

    	6

    	 

    

 

6.2           Assist
Performance. Buyer shall exercise reasonable best efforts to cause to be fulfilled those conditions precedent to Seller’s
obligations to consummate the transactions contemplated hereby which are dependent upon actions of Buyer and to make and/or obtain
any necessary filings and consents in order to consummate the transactions contemplated by this Agreement.

 

VII.         OBLIGATIONS
OF SELLER AND SPLIT-OFF SUBSIDIARY PENDING CLOSING. Seller and Split-Off Subsidiary covenant and agree that between the
date hereof and the Closing:

 

7.1           Business
as Usual. Split-Off Subsidiary shall operate and Seller shall cause Split-Off Subsidiary to operate in accordance with
past practices and shall use best efforts to preserve its goodwill and the goodwill of its employees, customers and others having
business dealings with Split-Off Subsidiary. Without limiting the generality of the foregoing, from the date of this Agreement
until the Closing Date, Split-Off Subsidiary shall (a) make all normal and customary repairs to its equipment, assets and facilities,
(b) keep in force all insurance, (c) preserve in full force and effect all material franchises, licenses, contracts and real property
interests and comply in all material respects with all laws and regulations, (d) collect all accounts receivable and pay all trade
creditors in the ordinary course of business at intervals historically experienced, and (e) preserve and maintain Split-Off Subsidiary’s
assets in their current operating condition and repair, ordinary wear and tear excepted. From the date of this Agreement until
the Closing Date, Split-Off Subsidiary shall not (i) amend, terminate or surrender any material franchise, license, contract or
real property interest, or (ii) sell or dispose of any of its assets except in the ordinary course of business. Neither Split-Off
Subsidiary nor Seller shall take or omit to take any action that results in Buyer incurring any liability or obligation prior to
or in connection with the Closing.

 

7.2           Not
Impair Performance. Seller shall not take any intentional action that would cause the conditions upon the obligations of
the parties hereto to effect the transactions contemplated hereby not to be fulfilled, including, without limitation, taking or
causing to be taken any action which would cause the representations and warranties made by any party herein not to be materially
true, correct and accurate as of the Closing, or in any way impairing the ability of Buyer to satisfy his obligations as provided
in Article VI.

 

7.3           Assist
Performance. Seller shall exercise its reasonable best efforts to cause to be fulfilled those conditions precedent to Buyer’s
obligations to consummate the transactions contemplated hereby which are dependent upon the actions of Seller and to work with
Buyer to make and/or obtain any necessary filings and consents. Seller shall cause Split-Off Subsidiary to comply with its obligations
under this Agreement.

 

VIII.         SELLER’S
AND SPLIT-OFF SUBSIDIARY’S CONDITIONS PRECEDENT TO CLOSING. The obligations of Seller and Split-Off Subsidiary to
close the transactions contemplated by this Agreement are subject to the satisfaction at or prior to the Closing of each of the
following conditions precedent (any or all of which may be waived by Seller and PrivateCo in writing):

 

    	7

    	 

    

 

8.1           Representations
and Warranties; Performance. All representations and warranties of Buyer contained in this Agreement shall have been true
and correct, in all material respects, when made and shall be true and correct, in all material respects, at and as of the Closing,
with the same effect as though such representations and warranties were made at and as of the Closing. Buyer shall have performed
and complied with all covenants and agreements and satisfied all conditions, in all material respects, required by this Agreement
to be performed or complied with or satisfied by Buyer at or prior to the Closing.

 

8.2           Additional
Documents. Buyer shall deliver or cause to be delivered such additional documents as may be necessary in connection with
the consummation of the transactions contemplated by this Agreement and the performance of their obligations hereunder.

 

8.3           Release
by Split-Off Subsidiary. At the Closing, Split-Off Subsidiary shall execute and deliver to Seller a general release which
in substance and effect releases Seller and PrivateCo from any and all liabilities and obligations that Seller and PrivateCo may
owe to Split-Off Subsidiary in any capacity, and from any and all claims that Split-Off Subsidiary may have against Seller, PrivateCo
or their respective managers, members, officers, directors, stockholders, employees and agents (other than those arising pursuant
to this Agreement or any document delivered in connection with this Agreement).

 

8.4           Completion
of Merger. The closing of the Merger pursuant to the Merger Agreement, and all of the transactions contemplated thereby,
shall occur simultaneously.

 

IX.          BUYER’S
CONDITIONS PRECEDENT TO CLOSING. The obligation of Buyer to close the transactions contemplated by this Agreement is subject
to the satisfaction at or prior to the Closing of each of the following conditions precedent (any and all of which may be waived
by Buyer in writing):

 

9.1           Representations
and Warranties; Performance. All representations and warranties of Seller and Split-Off Subsidiary contained in this Agreement
shall have been true and correct, in all material respects, when made and shall be true and correct, in all material respects,
at and as of the Closing with the same effect as though such representations and warranties were made at and as of the Closing.
Seller and Split-Off Subsidiary shall have performed and complied with all covenants and agreements and satisfied all conditions,
in all material respects, required by this Agreement to be performed or complied with or satisfied by them at or prior to the Closing.

 

X.           OTHER
AGREEMENTS.

 

10.1         Expenses.
Each party hereto shall bear its expenses separately incurred in connection with this Agreement and with the performance of its
obligations hereunder.

 

10.2         Confidentiality.
Buyer shall not make any public announcements concerning this transaction without the prior written agreement of PrivateCo, other
than as may be required by applicable law or judicial process. If for any reason the transactions contemplated hereby are not consummated,
then Buyer shall return any information received by Buyer from Seller or Split-Off Subsidiary, and Buyer shall cause all confidential
information obtained by Buyer concerning Split-Off Subsidiary and its business to be treated as such.

 

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10.3         Brokers’
Fees. In connection with the transaction specifically contemplated by this Agreement, no party to this Agreement has employed
the services of a broker and each agrees to indemnify the other against all claims of any third parties for fees and commissions
of any brokers claiming a fee or commission related to the transactions contemplated hereby.

 

10.4         Access
to Information Post-Closing; Cooperation.

 

(a)          Following
the Closing, Buyer and Split-Off Subsidiary shall afford to Seller and its authorized accountants, counsel and other designated
representatives, reasonable access (and including using reasonable efforts to give access to persons or firms possessing information)
and duplicating rights during normal business hours to allow records, books, contracts, instruments, computer data and other data
and information (collectively, “Information”) within the possession or control of Buyer or Split-Off Subsidiary
insofar as such access is reasonably required by Seller. Information may be requested under this Section 10.4(a) for, without limitation,
audit, accounting, claims, litigation and tax purposes, as well as for purposes of fulfilling disclosure and reporting obligations
and performing this Agreement and the transactions contemplated hereby. No files, books or records of Split-Off Subsidiary existing
at the Closing Date shall be destroyed by Buyer or Split-Off Subsidiary after Closing but prior to the expiration of any period
during which such files, books or records are required to be maintained and preserved by applicable law without giving Seller at
least 30 days’ prior written notice, during which time Seller shall have the right to examine and to remove any such files,
books and records prior to their destruction.

 

(b)          Following
the Closing, Seller shall afford to Split-Off Subsidiary and its authorized accountants, counsel and other designated representatives
reasonable access (including using reasonable efforts to give access to persons or firms possessing information) and duplicating
rights during normal business hours to Information within Seller’s possession or control relating to the business of Split-Off
Subsidiary insofar as such access is reasonably required by Buyer. Information may be requested under this Section 10.4(b) for,
without limitation, audit, accounting, claims, litigation and tax purposes as well as for purposes of fulfilling disclosure and
reporting obligations and for performing this Agreement and the transactions contemplated hereby. No files, books or records of
Split-Off Subsidiary existing at the Closing Date shall be destroyed by Seller after Closing but prior to the expiration of any
period during which such files, books or records are required to be maintained and preserved by applicable law without giving Buyer
at least 30 days’ prior written notice, during which time Buyer shall have the right to examine and to remove any such files,
books and records prior to their destruction.

 

(c)          At
all times following the Closing, Seller, Buyer and Split-Off Subsidiary shall use their reasonable efforts to make available to
the other on written request, the current and former officers, directors, employees and agents of Seller or Split-Off Subsidiary
for any of the purposes set forth in Section 10.4(a) or (b) above or as witnesses to the extent that such persons may reasonably
be required in connection with any legal, administrative or other proceedings in which Seller or Split-Off Subsidiary may from
time to be involved.

 

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(d)          The
party to whom any Information or witnesses are provided under this Section 10.4 shall reimburse the provider thereof for all out-of-pocket
expenses actually and reasonably incurred in providing such Information or witnesses.

 

(e)          Seller,
Buyer, Split-Off Subsidiary and their respective employees and agents shall each hold in strict confidence all Information concerning
the other party in their possession or furnished by the other or the other’s representative pursuant to this Agreement with
the same degree of care as such party utilizes as to such party’s own confidential information (except to the extent that
such Information is (i) in the public domain through no fault of such party or (ii) later lawfully acquired from any other source
by such party), and each party shall not release or disclose such Information to any other person, except such party’s auditors,
attorneys, financial advisors, bankers, other consultants and advisors or persons to whom such party has a valid obligation to
disclose such Information, unless compelled to disclose such Information by judicial or administrative process or, as advised by
its counsel, by other requirements of law.

 

(f)          Seller,
Buyer and Split-Off Subsidiary shall each use their best efforts to forward promptly to the other party all notices, claims, correspondence
and other materials which are received and determined to pertain to the other party.

 

10.5         Guarantees,
Surety Bonds and Letter of Credit Obligations. In the event that Seller is obligated for any debts, obligations or liabilities
of Split-Off Subsidiary by virtue of any outstanding guarantee, performance or surety bond or letter of credit provided or arranged
by Seller on or prior to the Closing Date, Buyer and Split-Off Subsidiary shall use their best efforts to cause to be issued replacements
of such bonds, letters of credit and guarantees and to obtain any amendments, novations, releases and approvals necessary to release
and discharge fully Seller from any liability thereunder following the Closing. Buyer and Split-Off Subsidiary, jointly and severally,
shall be responsible for, and shall indemnify, hold harmless and defend Seller from and against, any costs or losses incurred by
Seller arising from such bonds, letters of credit and guarantees and any liabilities arising therefrom and shall reimburse Seller
for any payments that Seller may be required to pay pursuant to enforcement of its obligations relating to such bonds, letters
of credit and guarantees.

 

10.6         Filings
and Consents. Buyer, at his risk, shall determine what, if any, filings and consents must be made and/or obtained prior
to Closing to consummate the purchase and sale of the Shares. Buyer shall indemnify the Seller Indemnified Parties (as defined
in Section 12.1 below) against any Losses (as defined in Section 12.1 below) incurred by such Seller Indemnified Parties by virtue
of the failure to make and/or obtain any such filings or consents. Recognizing that the failure to make and/or obtain any filings
or consents may cause Seller to incur Losses or otherwise adversely affect Seller, Buyer and Split-Off Subsidiary confirm that
the provisions of this Section 10.6 will not limit Seller’s right to treat such failure as the failure of a condition precedent
to Seller’s obligation to close pursuant to Article VIII above.

 

10.7         Insurance.
Buyer acknowledges that on the Closing Date, effective as of the Closing, any insurance coverage and bonds provided by Seller for
Buyer or for Split-Off Subsidiary, and all certificates of insurance evidencing that Buyer or Split-Off Subsidiary maintain any
required insurance by virtue of insurance provided by Seller, will terminate with respect to any insured damages resulting from
matters occurring subsequent to Closing.

 

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10.8         Agreements
Regarding Taxes.

 

(a)          Tax
Sharing Agreements. Any tax sharing agreement between Seller and Split-Off Subsidiary is terminated as of the Closing Date
and will have no further effect for any taxable year (whether the current year, a future year or a past year).

 

(b)          Returns
for Periods Through the Closing Date. Seller will include the income and loss of Split-Off Subsidiary (including any deferred
income triggered into income by Reg. §1.1502-13 and any excess loss accounts taken into income under Reg. §1.1502-19)
on Seller’s consolidated federal income tax returns for all periods through the Closing Date and pay any federal income taxes
attributable to such income. Seller and Split-Off Subsidiary agree to allocate income, gain, loss, deductions and credits between
the period up to Closing (the “Pre-Closing Period”) and the period after Closing (the “Post-Closing
Period”) based on a closing of the books of Split-Off Subsidiary, and both Seller and Split-Off Subsidiary agree not
to make an election under Reg. §1.1502-76(b)(2)(ii) to ratably allocate the year’s items of income, gain, loss, deduction
and credit. Seller, Split-Off Subsidiary and Buyer agree to report all transactions not in the ordinary course of business occurring
on the Closing Date after Buyer’s purchase of the Shares on Split-Off Subsidiary’s tax returns to the extent permitted
by Reg. §1.1502-76(b)(1)(ii)(B). Buyer agrees to indemnify Seller for any additional tax owed by Seller (including tax owed
by Seller due to this indemnification payment) resulting from any transaction engaged in by Split-Off Subsidiary or Seller (not
related to the Merger) during the Pre-Closing Period or on the Closing Date before Buyer’s purchase of the Shares. Split-Off
Subsidiary will furnish tax information to Seller for inclusion in Seller’s consolidated federal income tax return for the
period which includes the Closing Date in accordance with Split-Off Subsidiary’s past custom and practice.

 

(c)          Audits.
Seller will allow Split-Off Subsidiary and its counsel to participate at Split-Off Subsidiary’s expense in any audit of Seller’s
consolidated federal income tax returns to the extent that such audit raises issues that relate to and increase the tax liability
of Split-Off Subsidiary. Seller shall have the absolute right, in its sole discretion, to engage professionals and direct the representation
of Seller in connection with any such audit and the resolution thereof, without receiving the consent of Buyer or Split-Off Subsidiary
or any other party acting on behalf of Buyer or Split-Off Subsidiary, provided that Seller will not settle any such audit in a
manner which would materially adversely affect Split-Off Subsidiary after the Closing Date unless such settlement would be reasonable
in the case of a person that owned Split-Off Subsidiary both before and after the Closing Date. In the event that after Closing
any tax authority informs Buyer or Split-Off Subsidiary of any notice of proposed audit, claim, assessment or other dispute concerning
an amount of taxes which pertain to Seller, or to Split-Off Subsidiary during the period prior to Closing, Buyer or Split-Off Subsidiary
must promptly notify Seller of the same within 15 calendar days of the date of the notice from the tax authority. In the event
Buyers or Split-Off Subsidiary do not notify Seller within such 15 day period, Buyer and Split-Off Subsidiary, jointly and severally,
will indemnify Seller for any incremental interest, penalty or other assessments resulting from the delay in giving notice. To
the extent of any conflict or inconsistency, the provisions of this Section 10.8 shall control over the provisions of Section 12.2
below.

 

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(d)          Cooperation
on Tax Matters. Buyer, Seller and Split-Off Subsidiary shall cooperate fully, as and to the extent reasonably requested by
any party, in connection with the filing of tax returns pursuant to this Section and any audit, litigation or other proceeding
with respect to taxes. Such cooperation shall include the retention and (upon the other party’s request) the provision of
records and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available
on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. Split-Off
Subsidiary shall (i) retain all books and records with respect to tax matters pertinent to Split-Off Subsidiary and Seller relating
to any taxable period beginning before the Closing Date until the expiration of the statute of limitations (and, to the extent
notified by Seller, any extensions thereof) of the respective taxable periods, and abide by all record retention agreements entered
into with any taxing authority, and (ii) give Seller reasonable written notice prior to transferring, destroying or discarding
any such books and records and, if Seller so requests, Buyer agrees to cause Split-Off Subsidiary to allow Seller to take possession
of such books and records.

 

10.9         ERISA.
Effective as of the Closing Date, Split-Off Subsidiary shall terminate its participation in, and withdraw from, any employee benefit
plans sponsored by Seller, and Seller and Buyer shall cooperate fully in such termination and withdrawal. Without limitation, Split-Off
Subsidiary shall be solely responsible for (i) all liabilities under those employee benefit plans notwithstanding any status as
an employee benefit plan sponsored by Seller, and (ii) all liabilities for the payment of vacation pay, severance benefits, and
similar obligations, including, without limitation, amounts which are accrued but unpaid as of the Closing Date with respect thereto.
Buyer and Split-Off Subsidiary acknowledge and agree that Split-Off Subsidiary is solely responsible for providing continuation
health coverage, as required under the Consolidated Omnibus Reconciliation Act of 1985, as amended (“COBRA”),
to each person, if any, participating in an employee benefit plan subject to COBRA with respect to such employee benefit plan as
of the Closing Date, including, without limitation, any person whose employment with Split-Off Subsidiary is terminated after the
Closing Date.

 

XI.          TERMINATION.
This Agreement may be terminated at, or at any time prior to, the Closing by mutual written consent of Seller, Buyer and PrivateCo.

 

If this Agreement is
terminated as provided herein, it shall become wholly void and of no further force and effect and there shall be no further liability
or obligation on the part of any party except to pay such expenses as are required of such party.

 

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XII.         INDEMNIFICATION.

 

12.1         Indemnification
by Buyer and Split-Off Subsidiary. Buyer and Split-Off Subsidiary, jointly and severally, covenant and agree to indemnify,
defend, protect and hold harmless Seller and PrivateCo, and their respective officers, directors, employees, stockholders, agents,
representatives and Affiliates (collectively, the “Seller Indemnified Parties”) at all times from and after
the date of this Agreement from and against all losses, liabilities, damages, claims, actions, suits, proceedings, demands, assessments,
adjustments, costs and expenses (including specifically, but without limitation, reasonable attorneys’ fees and expenses
of investigation), whether or not involving a third party claim and regardless of any negligence of any Seller Indemnified Party
(collectively, “Losses”), incurred by any Seller Indemnified Party as a result of or arising from (i) any breach
of the representations and warranties of Buyer set forth herein or in certificates delivered in connection herewith, (ii) any breach
or nonfulfillment of any covenant or agreement (including any other agreement of Buyers to indemnify set forth in this Agreement)
on the part of Buyer under this Agreement, (iii) any Assigned Asset or Assigned Liability or any other debt, liability or obligation
of Split-Off Subsidiary, (iv) the conduct and operations, (A) prior to Closing, of the business of Seller unrelated to the assets
that are the subject of the Merger, (B) whether before or after Closing, of (X) the business of Seller pertaining to the Assigned
Assets and Assigned Liabilities or (Y) the business of Split-Off Subsidiary, (v) claims asserted (including claims for payment
of taxes), whether before or after Closing, (A) against Split-Off Subsidiary or (B) pertaining to the Assigned Assets and Assigned
Liabilities or to the business of Seller prior to the Closing, or (vi) any federal or state income tax payable by Seller or PrivateCo
and attributable to the transactions contemplated by this Agreement or to the business of Seller prior to the Closing. For the
purposes of this Agreement, an “Affiliate” is a person or entity that directly, or indirectly through one or more intermediaries,
controls or is controlled by, or is under common control with, another specified person or entity.

 

12.2         Third
Party Claims.

 

(a)          Defense.
If any claim or liability (a “Third-Party Claim”) should be asserted against any of the Seller Indemnified Parties
(the “Indemnitees”) by a third party after the Closing for which Buyer has an indemnification obligation under
the terms of Section 12.1, then the Indemnitee shall notify Buyer (collectively, the “Indemnitor”) within 20
days after the Third-Party Claim is asserted by a third party (said notification being referred to as a “Claim Notice”)
and give the Indemnitor a reasonable opportunity to take part in any examination of the books and records of the Indemnitee relating
to such Third-Party Claim and to assume the defense of such Third-Party Claim and, in connection therewith, to conduct any proceedings
or negotiations relating thereto and necessary or appropriate to defend the Indemnitee and/or settle the Third-Party Claim. The
expenses (including reasonable attorneys’ fees) of all negotiations, proceedings, contests, lawsuits or settlements with
respect to any Third-Party Claim shall be borne by the Indemnitor. If the Indemnitor agrees to assume the defense of any Third-Party
Claim in writing within 20 days after the Claim Notice of such Third-Party Claim has been delivered, through counsel reasonably
satisfactory to Indemnitee, then the Indemnitor shall be entitled to control the conduct of such defense, and any decision to settle
such Third-Party Claim, and shall be responsible for any expenses of the Indemnitee in connection with the defense of such Third-Party
Claim so long as the Indemnitor continues such defense until the final resolution of such Third-Party Claim. The Indemnitor shall
be responsible for paying all settlements made or judgments entered with respect to any Third-Party Claim the defense of which
has been assumed by the Indemnitor. Except as provided in subsection (b) below, both the Indemnitor and the Indemnitee must approve
any settlement of a Third-Party Claim. A failure by the Indemnitee to timely give the Claim Notice shall not excuse Indemnitor
from any indemnification liability except only to the extent that the Indemnitor is materially and adversely prejudiced by such
failure.

 

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(b)          Failure
to Defend. If the Indemnitor shall not agree to assume the defense of any Third-Party Claim in writing within 20 days after
the Claim Notice of such Third-Party Claim has been delivered, or shall fail to continue such defense until the final resolution
of such Third-Party Claim, then the Indemnitee may defend against such Third-Party Claim in such manner as it may deem appropriate
and the Indemnitee may settle such Third-Party Claim, in its sole discretion, on such terms as it may deem appropriate; provided
however, that the Indemnitor shall (i) promptly reimburse the Indemnitee for the amount of all settlement payments and expenses,
legal and otherwise, incurred by the Indemnitee in connection with the defense or settlement of such Third-Party Claim, or (ii)
shall pay, in advance of any settlement or proceedings and in installments as reasonably agreed to by the parties, such sums and
expenses reasonably expected to be incurred in connection with the defense of the Third-Party Claim and any settlement thereof.
If no settlement of such Third-Party Claim is made, then the Indemnitor shall satisfy any judgment rendered with respect to such
Third-Party Claim before the Indemnitee is required to do so, and pay all expenses, legal or otherwise, incurred by the Indemnitee
in the defense against such Third-Party Claim.

 

12.3         Non-Third-Party
Claims. Upon discovery of any claim for which Buyer has an indemnification obligation under the terms of Section 12.1 which
does not involve a claim by a third party against the Indemnitee, the Indemnitee shall give prompt notice to Buyer of such claim
and, in any case, shall give Buyer such notice within 30 days of such discovery. A failure by Indemnitee to timely give the foregoing
notice to Buyer shall not excuse Buyer from any indemnification liability except to the extent that Buyer is materially and adversely
prejudiced by such failure.

 

12.4         Survival.
Except as otherwise provided in this Section 12.4, all representations and warranties made by Buyer, Split-Off Subsidiary and Seller
in connection with this Agreement shall survive the Closing. Anything in this Agreement to the contrary notwithstanding, the liability
of all Indemnitors under this Article XII shall terminate on the third (3rd) anniversary of the Closing Date, except with respect
to (a) liability for any item as to which, prior to the third (3rd) anniversary of the Closing Date, any Indemnitee shall have
asserted a Claim in writing, which Claim shall identify its basis with reasonable specificity, in which case the liability for
such Claim shall continue until it shall have been finally settled, decided or adjudicated, (b) liability of any party for Losses
for which such party has an indemnification obligation, incurred as a result of such party’s breach of any covenant or agreement
to be performed by such party after the Closing, (c) liability of Buyer for Losses incurred by a Seller Indemnified Party due to
breaches of its representations and warranties in Article IV of this Agreement, and (d) liability of Buyer for Losses arising out
of Third-Party Claims for which Buyer has an indemnification obligation, which liability shall survive until the statute of limitation
applicable to any third party’s right to assert a Third-Party Claim bars assertion of such claim.

 

XIII.         MISCELLANEOUS.

 

13.1         Definitions.
Capitalized terms used herein without definition have the meanings ascribed to them in the Merger Agreement.

 

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13.2         Notices.
All notices and communications required or permitted hereunder shall be in writing and deemed given when received by means of the
United States mail, addressed to the party to be notified, postage prepaid and registered or certified with return receipt requested,
or personal delivery, or overnight courier, as follows:

 

(a)          If
to Seller, addressed to:

 

Akoustis Technologies, Inc.

f/k/a Danlax, Corp.

Transportnaya Street, 58-7

Nizhneudinsk, Russia 665106

Attn: Ivan Krikun

Telephone: 702 605-4427

Facsimile:

 

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

 

CKR Law LLP

1330 Avenue of the Americas,
35th Floor

New York, NY 10022

Attention: Mark Crone, Esq.

Telephone: 212-400-6900

Facsimile: 212-400-6901

 

(b)          If
to Buyer or Split-Off Subsidiary, addressed to:

 

Ivan Krikun

Transportnaya Street, 58-7

Nizhneudinsk, Russia 665106

Telephone: 702 605-4427

Facsimile:

 

or to such other address as any party hereto
shall specify pursuant to this Section 13.2 from time to time.

 

13.3         Exercise
of Rights and Remedies. Except as otherwise provided herein, no delay of or omission in the exercise of any right, power
or remedy accruing to any party as a result of any breach or default by any other party under this Agreement shall impair any such
right, power or remedy, nor shall it be construed as a waiver of or acquiescence in any such breach or default, or of any similar
breach or default occurring later; nor shall any waiver of any single breach or default be deemed a waiver of any other breach
or default occurring before or after that waiver.

 

13.4         Time.
Time is of the essence with respect to this Agreement.

 

13.5         Reformation
and Severability. In case any provision of this Agreement shall be invalid, illegal or unenforceable, it shall, to the
extent possible, be modified in such manner as to be valid, legal and enforceable but so as to most nearly retain the intent of
the parties, and if such modification is not possible, such provision shall be severed from this Agreement, and in either case
the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired
thereby.

 

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13.6         Further
Acts and Assurances. From and after the Closing, Seller, Buyer and Split-Off Subsidiary agree that each will act in a manner
supporting compliance, including compliance by its Affiliates, with all of its obligations under this Agreement and, from time
to time, shall, at the request of another party hereto, and without further consideration, cause the execution and delivery of
such other instruments of conveyance, transfer, assignment or assumption and take such other action or execute such other documents
as such party may reasonably request in order more effectively to convey, transfer to and vest in Buyer, and to put Split-Off Subsidiary
in possession of, all Assigned Assets and Assigned Liabilities, and to convey, transfer to and vest in Seller and Buyer, and to
them in possession of, the Purchase Price Securities and the Shares (respectively), and, in the case of any contracts and rights
that cannot be effectively transferred without the consent or approval of another person that is unobtainable, to use its best
reasonable efforts to ensure that Split-Off Subsidiary receives the benefits thereof to the maximum extent permissible in accordance
with applicable law or other applicable restrictions, and shall perform such other acts which may be reasonably necessary to effectuate
the purposes of this Agreement.

 

13.7         Entire
Agreement; Amendments. This Agreement contains the entire understanding of the parties relating to the subject matter contained
herein. This Agreement cannot be amended or changed except through a written instrument signed by all of the parties hereto and
by PrivateCo. No provisions of this Agreement or any rights hereunder may be waived by any party without the prior written consent
of PrivateCo.

 

13.8         Assignment.
No party may assign his, her or its rights or obligations hereunder, in whole or in part, without the prior written consent of
the other parties.

 

13.9        Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving
effect to principles of conflicts or choice of laws thereof.

 

13.10       Counterparts.
This Agreement may be executed in one or more counterparts, with the same effect as if all parties had signed the same document.
Each such counterpart shall be an original, but all such counterparts taken together shall constitute a single agreement. In the
event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile
signature page was an original thereof.

 

13.11       Section
Headings and Gender. The section headings used herein are inserted for reference purposes only and shall not in any way
affect the meaning or interpretation of this Agreement. All personal pronouns used in this Agreement shall include the other genders,
whether used in the masculine, feminine or neuter and the singular shall include the plural, and vice versa, whenever and as often
as may be appropriate.

 

13.12       Third-Party
Beneficiary. Each of Seller, Buyer and Split-Off Subsidiary acknowledges and agrees that this Agreement is entered into
for the express benefit of PrivateCo, and that PrivateCo is relying hereon and on the consummation of the transactions contemplated
by this Agreement in entering into and performing its obligations under the Merger Agreement, and that PrivateCo shall be in all
respects entitled to the benefit hereof and to enforce this Agreement as a result of any breach hereof.

 

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13.13      Specific
Performance; Remedies. Each of the parties to this Agreement acknowledges and agrees that, if any provision of this Agreement
is not performed in accordance with its specific terms or is otherwise breached, irreparable damages would be incurred by the other
parties to this Agreement and by PrivateCo. Accordingly, the parties to this Agreement agree that any party or PrivateCo will be
entitled to seek an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically
this Agreement and its terms and provisions in any action instituted in any court of the United States or any state thereof having
jurisdiction over the parties and the matter, subject to Section 13.9, in addition to any other remedy to which they may be entitled,
at law or in equity. Except as expressly provided herein, the rights, obligations and remedies created by this Agreement are cumulative
and are in addition to any other rights, obligations or remedies otherwise available at law or in equity, and nothing herein will
be considered an election of remedies.

 

13.14       Submission
to Jurisdiction; Process Agent; No Jury Trial.

 

(a)          Each
party to the Agreement hereby submits to the jurisdiction of any state or federal court sitting in the Borough of Manhattan, City
and State of New York, in any action arising out of or relating to this Agreement, and agrees that all claims in respect of the
action may be heard and determined in any such court. Each party to the Agreement also agrees not to bring any action arising out
of or relating to this Agreement in any other court. Each party to the Agreement agrees that a final judgment in any action so
brought will be conclusive and may be enforced by action on the judgment or in any other manner provided at law or in equity. Each
party to the Agreement waives any defense of inconvenient forum to the maintenance of any action so brought and waives any bond,
surety or other security that might be required of any other party with respect thereto.

 

(b)          EACH
PARTY TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RIGHTS TO JURY TRIAL OF ANY DISPUTE BASED UPON OR ARISING OUT OF THIS AGREEMENT
OR ANY OTHER AGREEMENTS RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR ANY DEALINGS AMONG THEM RELATING TO THE TRANSACTIONS
CONTEMPLATED HEREBY. The scope of this waiver is intended to be all encompassing of any and all actions that may be filed in any
court and that relate to the subject matter of the transactions, including contract claims, tort claims, breach of duty claims
and all other common law and statutory claims. Each party to the Agreement hereby acknowledges that this waiver is a material inducement
to enter into a business relationship and that they will continue to rely on the waiver in their related future dealings. Each
party to the Agreement further represents and warrants that it has reviewed this waiver with its legal counsel, and that each knowingly
and voluntarily waives its jury trial rights following consultation with legal counsel. NOTWITHSTANDING ANYTHING TO THE CONTRARY
HEREIN, THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED ORALLY OR IN WRITING, AND THE WAIVER WILL APPLY TO ANY
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING HERETO. In
the event of commencement of any action, this Agreement may be filed as a written consent to trial by a court.

 

    	17

    	 

    

 

13.15      Construction.
The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of
intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption
or burden of proof will arise favoring or disfavoring any party because of the authorship of any provision of this Agreement. Any
reference to any federal, state, local or foreign law will be deemed also to refer to law as amended and all rules and regulations
promulgated thereunder, unless the context requires otherwise. The words “include,” “includes,”
and “including” will be deemed to be followed by “without limitation.” The words “this
Agreement,” “herein,” “hereof,” “hereby,” “hereunder,”
and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited.
The parties hereto intend that each representation, warranty and covenant contained herein will have independent significance.
If any party hereto has breached any representation, warranty or covenant contained herein in any respect, the fact that there
exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity)
which that party has not breached will not detract from or mitigate the fact that such party is in breach of the first representation,
warranty or covenant.

 

[Signature page follows this page.]

 

    	18

    	 

    

 

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

 

	 	SELLER:
	 	 
	 	AKOUSTIS TECHNOLOGIES, INC.
	 	f/k/a Danlax, Corp.
	 	 	 
	 	By:	         /s/ Ivan Krikun
	 	 	         Name: Ivan Krikun
	 	 	         Title: President
	 	 	 
	 	SPLIT-OFF SUBSIDIARY
	 	 	 
	 	By:	         /s/ Ivan Krikun
	 	 	         Name: Ivan Krikun
	 	 	         Title: President
	 	 	 
	 	 	BUYER:
	 	 	 
	 	 	/s/ Ivan Krikun
	 	 	Ivan Krikun

 

    	19

    	 

    

 

EXHIBIT A

 

	Buyer	 	Purchase Price

Security	 	Number of Shares	 	Certificate No(s).
	Ivan Krikun	 	Common Stock	 	9,000,000	 	1001
	 	 	Common Stock	 	854,019	 	1066

 

 

	Split-Off Subsidiary	 	Shares	 	Number of Shares	 	Certificate No(s).
	Danlax Enterprise Corp.	 	Common Stock	 	100	 	1

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