Document:

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), NOR UNDER ANY STATE SECURITIES LAW AND MAY NOT BE SOLD,
PLEDGED, OFFERED FOR SALE, ASSIGNED OR TRANSFERRED UNLESS (a) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER
THE SECURITIES ACT, AND ANY APPLICABLE STATE SECURITIES LAW REQUIREMENTS HAVE BEEN MET OR (B) EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS UNDER THE SECURITIES ACT AND THE REGISTRATION OR QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS ARE
AVAILABLE.

 

 

PROMISSORY NOTE

 

	$1,000,000	 	 	       February 1, 2012	 
	 	 	 	New York, New York	 

 

 

FOR VALUE RECEIVED,
Protalex, Inc., a Delaware corporation (the “Company”), promises to pay to the order of Niobe Ventures, LLC (“Holder”),
at the offices of Morse, Zelnick, Rose & Lander LLP, 405 Park Avenue, Suite 1401, New York, New York 10022, the principal sum
of One Million U.S. Dollars (U.S. $1,000,000) with interest thereon at the rate of three percent (3%) per annum. Any amounts
that remain unpaid after the Maturity Date shall thereafter bear interest at the rate of twelve percent (12%) per annum. Interest
as aforesaid shall be calculated on the basis of actual number of days elapsed over a year of 360 days.

 

The principal amount and
all accrued interest of this Note are due on February 1, 2014 (the “Maturity Date”). The Maturity Date is subject to
acceleration in accordance with Section 3.

 

This Note is subject to
the following additional provisions:

 

Section 1.Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Note the following terms shall have the following meanings:

 

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

 

“Event
of Default” shall have the meaning set forth in Section 4.

 

“Fundamental
Transaction” shall have the meaning set forth in Section 3.

 

“Original
Issue Date” means the date of the first issuance of this Note regardless of the number of transfers of any Note and regardless
of the number of instruments which may be issued to evidence such Note.

 

“Person”
means a corporation, an association, a partnership, organization, a business, an individual, a government or political subdivision
thereof or a governmental agency.

 

    	 

    	 

    
 

 

“Security
Agreement” means the Amended and Restated Security Agreement dated as of February 1, 2012 by and between the Company
and the Holder.

 

“Subsidiary”
means any Person in which the Company owns more than 50% of the outstanding equity.

 

“Transaction
Documents” means the Security Agreement and this Note.

 

Section 2.Registration of Transfers and Exchanges.

 

a)Different Denominations.
This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations as requested by
the Holder surrendering the same, No service charge will be made for such registration of transfer or exchange.

 

b)Reliance on
Note Register. Prior to due presentment to the Company for transfer of this Note, the Company and any agent of the Company
may treat the Person in whose name this Note is duly registered on the Company’s books and records as the owner hereof for
the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither
the Company nor any such agent shall be affected by notice to the contrary.

 

Section 3.Acceleration of Maturity Date.

 

If, at any time while this
Note is outstanding (A) the Company receives aggregate gross proceeds of $7,500,000 or more from the sale of any of its equity
securities, (B) the Company effects any merger or consolidation of the Company with or into another Person, (C) the Company effects
any sale of all or substantially all of its assets in one or a series of related transactions, (D) 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 (E) 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 (in any such case, a “Fundamental Transaction”), then, immediately prior to the occurrence
of such Fundamental Transaction the principal and accrued but unpaid interest payable hereunder shall automatically become, at
the Holder’s election, immediately due and payable in cash.

 

Section 4.Events of Default.

 

a)Event of Default.
Wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary
or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of
any administrative or governmental body):

 

i.any
default in the payment of (A) the principal, or (B) interest on this Note or any other note issued by the Company to the Holder
as and when the same shall become due and payable (whether on the Maturity Date or by acceleration or otherwise) which default
is not cured within ten (10) Business Days after written notice from the Holder;

 

ii.(A)
there is commenced against the Company or any Subsidiary thereof a case under any applicable bankruptcy or insolvency laws as now
or hereafter in effect or any successor thereto, or any other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect
relating to the Company or any Subsidiary thereof which remains undismissed for a period of 60 days; or (B) the Company or any
Subsidiary thereof is adjudicated by a court of competent jurisdiction insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or (C) the Company or any Subsidiary thereof suffers any appointment of any custodian
or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days.

 

    	2

    	 

    

b)Remedies Upon
Event of Default. If any Event of Default occurs, the full principal amount of this Note, together with interest and other
amounts owing in respect thereof, to the date of acceleration shall become, at the Holder’s election, immediately due and
payable in cash. The Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of
any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies
hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Holder
at any time prior to payment hereunder and the Holder shall have all rights as a Note holder until such time, if any, as the full
payment under this Section shall have been received by it. No such rescission or annulment shall affect any subsequent Event of
Default or impair any right consequent thereon.

 

Section 5.Miscellaneous.

 

a)Notices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder shall be in writing and delivered
personally, by facsimile, sent by a nationally recognized overnight courier service, addressed to the Company, at 133 Summit Avenue,
Suite 22, Summit, NJ 07901, attention: Chief Financial Officer, or such other address or facsimile number as the Company may specify
for such purposes by notice to the Holder delivered in accordance with this Section. Any and all notices or other communications
or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, sent by a nationally
recognized overnight courier service addressed to the Holder at the facsimile, telephone number or address of such Holder appearing
on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of
the Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i)
the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified
in this Section prior to 5:30 p.m. (New York City time), (ii) the date after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile telephone number specified in this Section later than 5:30 p.m. (New York City time)
on any date and earlier than 11:59 p.m. (New York City time) on such date, (iii) the second Business Day following the date of
mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice
is required to be given.

 

b)Absolute Obligation.
Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company, which is absolute
and unconditional, to pay the principal of, interest and liquidated damages (if any) on, this Note at the time, place, and rate,
and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company.

 

c)Lost or Mutilated
Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution
for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note
for the principal amount of this Note so mutilated, lost, stolen or destroyed but only upon receipt of evidence of such loss, theft
or destruction of such Note, and of the ownership hereof; and indemnity, if requested, all reasonably satisfactory to the Company.

    	3

    	 

    
 

d)Security Interest.
This Note is a direct debt obligation of the Company and, pursuant to the Security Agreement all of the Company’s obligations
hereunder are secured by a first priority perfected security interest in all of the assets of the Company for the benefit of the
Holder.

 

e)Governing Law.
All questions concerning the construction, validity, enforcement and interpretation of this Note, and any claim, controversy or
dispute arising under or related to this Note, the relationship of the parties, and/or the interpretation and enforcement of the
rights and duties of the parties hereunder shall be governed by and construed and enforced in accordance with the internal laws
of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by any of the Transaction Documents (whether
brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced
in the state or federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”). Each
party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to
the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, or such New York Courts are improper
or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service
shall constitute good and sufficient service of process and notice thereof Nothing contained herein shall be deemed to limit in
any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this
Note or the transactions contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions
of this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney’s
fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

f)Waiver.
Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a
waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company or
the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note. Any waiver
must be in writing.

 

g)Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any
provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
If it shall be found that any interest or other amount deemed interest due hereunder violates applicable laws governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The
Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive
the Company from paying all or any portion of the principal of or interest on this Note as contemplated herein, wherever enacted,
now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture, and due Company
(to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it
will not, by resort to any such law, binder, delay or impeded the execution of any power herein granted to the Holder, but will
suffer and permit the execution of every such as though no such law has been enacted.

    	4

    	 

    
 

h)Next Business
Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day.

 

i)Headings.
The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit
or affect any of the provisions hereof.

 

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

 

 

	 	PROTALEX, INC.
	 	 
	 	 
	 	By: /s/ Kirk M. Warshaw
	 	       Kirk M. Warshaw, Chief Financial Officer

 

 

    	5SECOND AMENDED AND RESTATED SECURITY
AGREEMENT

THIS SECOND AMENDED
AND RESTATED SECURITY AGREEMENT (this “Agreement”), dated as of February 1, 2012, is made by and among Protalex,
Inc. a Delaware corporation, (the “Grantor”), and Niobe Ventures, LLC (the “Secured Party”)
and amends and restates in its entirety the Amended and Restated Security Agreement dated as of December 2, 2009 by and between
Grantor and Secured Party.

WHEREAS, the
Grantor has issued to the Secured Party a senior secured convertible promissory note in the principal amount of Two Million Dollars
($2,000,000) dated February 11, 2011 (such note, as amended or modified from time to time, the “$2MM Note”).

WHEREAS, the
Secured Party has made an additional loan to the Grantor and, in that connection, the Grantor has issued to the Secured Party a
secured promissory note in the principal amount of One Million Dollar ($1,000,000) dated of even date herewith (such note, as amended
or modified from time to time, the “New Note”).

WHEREAS,
the Grantor and the Secured Party have agreed to execute and deliver this Agreement, among other things, to secure the obligations
of the Grantor under the $2MM Note and the New Note (hereinafter collectively the “Notes”).

The Grantor and the
Secured Party hereby agree as follows:

SECTION 1.     
Definitions; Interpretation.

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

“Collateral”
means the property described on Exhibit A attached hereto and all Negotiable Collateral and Intellectual Property to the
extent not described on Exhibit A, except (i) to the extent any such property is nonassignable by its terms without the
consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable
law, including, without limitation, applicable provisions of the New York Uniform Commercial Code as amended or
supplemented from time to time.), or (ii) the granting of a security interest in such property is contrary to applicable law, provided
that upon the cessation of any such restriction or prohibition, such property shall automatically become part of the Collateral.

“Copyrights”
means any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship
and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now
or hereafter existing, created, acquired or held.

“Event of
Default” has the meaning set forth in the Notes.

“Intellectual
Property” means all of Grantor’s right, title, and interest in and to the following, except to the extent any security
interest hereunder would cause any application for a Trademark to be deemed invalidated, canceled or abandoned due to the grant
and/or enforcement of such security interest, including, without limitation, all U.S. trademark applications that are based on
an intent-to-use, unless and until such time that the grant and/or enforcement of the security interest will not affect the status
or validity of such trademark:

    	 

    	 

    

	 	(a)	Copyrights,
Trademarks and Patents; 
	 	 	 
		(b)	and all trade secrets, and any and all intellectual property rights in computer software and computer
software products now or hereafter existing, created, acquired or held;

		(c)	and all design rights which may be available to Grantor now or hereafter existing, created, acquired
or held;

		(d)	and all claims for damages by way of past, present and future infringement of any of the rights
included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the
intellectual property rights identified above;

		(e)	licenses or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees
and royalties arising from such use to the extent permitted by such license or rights;

		(f)	amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents; and

		(g)	proceeds and products of the foregoing, including without limitation all payments under insurance
or any indemnity or warranty payable in respect of any of the foregoing.

“Lien”
means any mortgage, deed of trust, pledge, security interest, assignment, deposit arrangement, charge or encumbrance, lien, or
other type of preferential arrangement.

“Obligations”
means the indebtedness, liabilities and other obligations of the Grantor to the Secured Party under Notes including without limitation,
the unpaid principal of the Notes and all interest accrued thereon payable by the Grantor to the Secured Party thereunder or in
connection therewith.

“Patents”
means all patents, patent applications and like protections, including, without limitation, improvements, divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same.

“Permitted
Liens” mean: (i) Liens in favor of the Secured Party in respect of the Obligations hereunder; (ii) Liens for taxes, fees,
assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings
and which are adequately reserved for in accordance with GAAP; (iii) Liens of materialmen, mechanics, warehousemen, carriers or
employees or other like Liens arising in the ordinary course of business and securing obligations either not delinquent or being
contested in good faith by appropriate proceedings; (iv) Liens consisting of deposits or pledges to secure the payment of worker’s
compensation, unemployment insurance or other social security benefits or obligations, or to secure the performance of bids, trade
contracts, leases, public or statutory obligations, surety or appeal bonds or other obligations of a like nature incurred in the
ordinary course of business; (v) easements, rights of way, servitudes or zoning or building restrictions and other minor encumbrances
on real property and irregularities in the title to such property which do not in the aggregate materially impair the use or value
of such property or risk the loss or forfeiture of title thereto; and (vi) Liens upon or in any equipment now or hereafter acquired
or held by the Grantor to secure the purchase price of such equipment or indebtedness incurred solely for the purpose of financing
or refinancing the acquisition of such equipment, provided that the Lien is confined solely to the equipment so acquired and accessions
thereon and proceeds thereof.

    	2

    	 

    
 

“Person”
means an individual, corporation, partnership, joint venture, trust, unincorporated organization, governmental agency or authority,
or any other entity of whatever nature.

“Trademarks”
means any trademark and service mark rights, whether registered or not, applications to register and registrations of the same
and like protections, and the parts of the goodwill of the business connected with the use of and symbolized by such marks.

“UCC”
means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York.

(b)                
Where applicable and except as otherwise defined herein, terms used in this Agreement shall have the meanings assigned
to them in the UCC.

(c)                
In this Agreement, (i) the meaning of defined terms shall be equally applicable to both the singular and plural
forms of the terms defined; (ii) the captions and headings are for convenience of reference only and shall not affect the
construction of this Agreement; (iii) the words “hereof,” “herein,” “hereto,” “hereunder”
and the like mean and refer to this Agreement as a whole and not merely to the specific Article, Section, subsection, paragraph
or clause in which the respective word appears; (iv) the words “including,” “includes” and “include”
shall be deemed to be followed by the words “without limitation;” and (v) the term “or” shall not be limiting.

SECTION
2.      Security
Interest.

(a)                
Subject to the Permitted Liens, as security for the payment and performance of the Obligations, the Grantor hereby
pledges, assigns and grants to the Secured Party a security interest in all of the Grantor’s right, title and interest in,
to and under all of the Collateral (other than as set forth in Section 2(b) hereof).

(b)                
Notwithstanding the foregoing, except for fixtures (to the extent covered by Article 9 of the UCC), such grant
of a security interest shall not extend to, and the term “Collateral” shall not include, any asset which would be real
property under the law of the jurisdiction in which it is located.

(c)                
This Agreement shall create a continuing security interest in the Collateral that shall remain in effect until terminated
in accordance with the provisions hereof.

    	3

    	 

    
 

SECTION
3.      Financing
Statements, Etc. The Grantor hereby authorizes the Secured Party to file (with a copy thereof to be provided to the Grantor
contemporaneously therewith), at any time and from time to time thereafter, all financing statements, financing statement assignments,
continuation financing statements, and UCC filings, in form reasonably satisfactory to the Secured Party. The Grantor shall execute
and deliver and shall take all other action, as the Secured Party may reasonably request, to perfect and continue perfected, maintain
the priority of or provide notice of the security interest of the Secured Party in the Collateral (subject to the terms hereof)
and to accomplish the purposes of this Agreement. Without limiting the generality of the foregoing, the Grantor ratifies and authorizes
the filing by the Secured Party of any financing statements filed prior to the date hereof that accomplish the purposes of this
Agreement. 

SECTION
4.      Representations
and Warranties. The Grantor represents and warrants to the Secured Party that:

(a)Grantor is
a business entity duly formed, validly existing and in good standing under the law of the jurisdiction of its organization and
has all requisite power and authority to execute, deliver and perform its obligations under this Agreement.

(b)The execution,
delivery and performance by the Grantor of this Agreement has been duly authorized by all necessary corporate action of the Grantor,
and this Agreement constitutes the legal, valid and binding obligation of the Grantor, enforceable against the Grantor in accordance
with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other
laws of general application affecting enforcement of creditors’ rights generally, as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies.

(c)Except for
the filing of appropriate financing statements, no authorization, consent, approval, license, exemption of, or filing or registration
with, any governmental authority or agency, or approval or consent of any other Person, is required for the due execution, delivery
or performance by the Grantor of this Agreement unless the same has already been obtained or is being obtained simultaneously in
connection herewith.

(d)This Agreement
creates a security interest that is enforceable against the Collateral in which the Grantor now has rights and will create a security
interest that is enforceable against the Collateral in which the Grantor hereafter acquires rights at the time the Grantor acquires
any such rights.

(e)The Grantor
has the right and power to grant the security interests in the Collateral to the Secured Party in the Collateral, and the Grantor
is the sole and complete owner of the Collateral, free from any Lien other than the Permitted Liens.

SECTION
5.      Covenants
of the Grantor. Until this Agreement has terminated in accordance with the terms hereof, the Grantor agrees to do the following:

(a)                
The Grantor shall give prompt written notice to the Secured Party (and in any event not later than ten (10) days
following any change described below in this subsection) of: (i) any change in the Grantor’s name; (ii) any changes in the
Grantor’s identity or structure in any manner which might make any financing statement filed hereunder incorrect or misleading;
or (iii) any change in jurisdiction of organization; provided that the Grantor shall not locate any Collateral outside
of the United States nor shall the Grantor change its jurisdiction of organization to a jurisdiction outside of the United States.

    	4

    	 

    
 

(b)                
The Grantor shall not surrender or lose possession of, sell, lease, rent or otherwise dispose of or transfer any
of the Collateral or any right or interest therein, except in the ordinary course of business consistent with past practice and
except to the extent of equipment that is obsolete or no longer useful to its business.

(c)                
The Grantor shall keep the Collateral free of all Liens except the Permitted Liens.

SECTION
6.      Collection
of Accounts. The Grantor shall endeavor in the first instance diligently to collect all amounts due or to become due on or
with respect to the accounts and other rights to payment. 

SECTION
7.      Authorization;
Secured Party Appointed Attorney-in-Fact. The Secured Party shall have the right, to, in the name of the Grantor, or in the
name of the Secured Party or otherwise, upon notice to, but without the requirement of assent by the Grantor, and the Grantor
hereby constitutes and appoints the Secured Party (and any employees or agents designated by a Secured Party) as the Grantor’s
true and lawful attorney-in-fact, with full power and authority to: (i) assert, adjust, sue for, compromise or release any claims
under any policies of insurance; and (ii), execute any and all such other documents and instruments, and do any and all acts and
things for and on behalf of the Grantor, that such Secured Party may deem necessary or advisable to maintain, protect, realize
upon and preserve the Collateral and the Secured Party’s security interests therein and to accomplish the purposes of this
Agreement. The Secured Party agrees that, except upon and during the continuance of an Event of Default, it shall not exercise
the power of attorney, or any rights granted to the Secured Party under this Section 7. The foregoing power of attorney is coupled
with an interest and is irrevocable so long as the Obligations have not been indefeasibly paid and performed in full and the commitments
not terminated. The Grantor hereby ratifies, to the extent permitted by law, all that the Secured Party shall lawfully and in
good faith do or cause to be done by virtue of and in compliance with this Section 7.

SECTION
8.      Remedies.

(a)                
Upon the occurrence and during the continuance of an Event of Default, the Secured Party shall have, in addition
to all other rights and remedies granted to the Secured Party in this Agreement or the Notes, all rights and remedies of a secured
party under the UCC and other applicable laws. Without limiting the generality of the foregoing, upon the occurrence and during
the continuance of an Event of Default, the Secured Party may sell, resell, lease, use, assign, license, sublicense, transfer or
otherwise dispose of any or all of the Collateral in its then condition or following any commercially reasonable preparation or
processing (utilizing in connection therewith any of Grantor’s assets, without charge or liability to any Secured Party therefor)
at public or private sale, by one or more contracts, in one or more parcels, at the same or different times, for cash or credit,
or for future delivery without assumption of any credit risk, all as the Secured Party deem advisable; provided, however, that
the Grantor shall be credited with the net proceeds of sale only when such proceeds are finally collected by the Secured Party.
Each Secured Party shall have the right upon any such public sale, and, to the extent permitted by law, upon any such private sale,
to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption, which right or equity of
redemption the Grantor hereby releases, to the extent permitted by law. The Grantor hereby agrees that the sending of notice by
ordinary mail, postage prepaid, to the address of the Grantor set forth herein or subsequent address that the Grantor provides
to the Secured Party in writing, of the place and time of any public sale or of the time after which any private sale or other
intended disposition is to be made, shall be deemed reasonable notice thereof if such notice is sent ten (10) business days prior
to the date of such sale or other disposition or the date on or after which such sale or other disposition may occur.

    	5

    	 

    
 

(b)                
The cash proceeds actually received from the sale or other disposition or collection of the Collateral, and any other
amounts received in respect of the Collateral the application of which is not otherwise provided for herein shall be applied first,
to the payment of the reasonable costs and expenses of the Secured Party in exercising or enforcing their rights hereunder and
in collecting or attempting to collect any of the Collateral, and to the payment of all other amounts payable to the Secured Party
pursuant to Section 12 hereof; and second, to the payment of the Obligations. Any surplus thereof that exists after payment
and performance in full of the Obligations shall be promptly paid over to the Grantor or otherwise disposed of in accordance with
the UCC or other applicable law. The Grantor shall remain liable to the Secured Party for any deficiency that exists after any
sale or other disposition or collection of the Collateral.

SECTION
9.      Certain
Waivers. 

(a)    
The Grantor waives, to the fullest extent permitted by law: (i) any right of redemption with respect to the
Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling of the Collateral or other collateral
or security for the Obligations; (ii) any right to require the Secured Party to: (A) proceed against any Person, (B) exhaust
any other collateral or security for any of the Obligations, (C) pursue any remedy in the Secured Party’s power or (D) except
as provided herein or in any of the Notes, make or give any presentments, demands for performance, notices of nonperformance, protests,
notices of protests or notices of dishonor in connection with any of the Collateral; and (iii) all claims, damages and demands
against the Secured Party arising out of the repossession, retention, sale or application of the proceeds of any sale of the Collateral.

SECTION
10.  Notices. All notices
or other communications which are required or permitted hereunder shall be in writing and sufficient if delivered personally or
sent by nationally-recognized overnight courier or by registered or certified mail, postage prepaid, return receipt requested
or by facsimile, with confirmation as provided above addressed as follows:

If to Grantor:

 

Protalex, Inc.

133
Summit Avenue, Suite 22,

Summit, NJ 07901

Attention: Chief
Financial Officer

 

    	6

    	 

    
 

With copies to:

 

Morse, Zelnick,
Rose & Lander LLP

405 Park Avenue,

Suite 1401

New York, NY 10022

Attention:
Kenneth S. Rose, Esq.

Fax: 212-208-6809

 

If to the Secured Party:

 

Niobe Ventures, LLC

c/o Arnold P. Kling

410 Park Avenue, Suite 1710

New York, NY 10022

Attention: Arnold Kling, Managing Member

Fax: 212-713-1818

 

With a copy to:

 

Morse, Zelnick, Rose & Lander LLP

405 Park Avenue, Suite 1401

New York, NY 10022

Attention: Kenneth S. Rose, Esq.

Fax:
212-208-6809

 

SECTION
11.  No Waiver; Cumulative
Remedies. No failure on the part of the Secured Party to exercise, and no delay in exercising, any right, remedy, power or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power
or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The
rights and remedies under this Agreement are cumulative and not exclusive of any rights, remedies, powers and privileges that
may otherwise be available to the Secured Party.

SECTION
12.  Costs and Expenses.
The Grantor agrees to pay all reasonable costs and expenses of the Secured Party, in connection with the enforcement and preservation
of any rights or interests under, this Agreement and the protection, sale or collection of, or other realization upon, any of
the Collateral, including all reasonable expenses of taking, collecting, holding, sorting, handling, preparing for sale, selling
or the like and other such expenses of sales and collections of the Collateral. 

SECTION
13.  Binding Effect.
This Agreement shall be binding upon, inure to the benefit of and be enforceable by the Grantor, the Secured Party and their respective
successors and assigns.

SECTION
14.  Governing Law.
This Agreement shall be governed by and construed under the laws of the State of New York without regard to principles of conflict
of laws.

    	7

    	 

    
 

SECTION
15.  Entire Agreement; Amendment.
This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and shall not be amended
except by the written agreement of the Grantor and the Secured Party. Notwithstanding the foregoing, this Agreement may not be
amended and any term hereunder may not be waived with respect to any Secured Party without the written consent of such Secured
Party unless such amendment or waiver applies to all Secured Party in the same fashion.

SECTION
16.  Severability. Whenever
possible, each provision of this Agreement shall be interpreted in such manner as to be valid, legal and enforceable under all
applicable laws and regulations. If, however, any provision of this Agreement shall be invalid, illegal or unenforceable under
any such law or regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum
requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be invalid, illegal or unenforceable
only to the extent of such invalidity, illegality or limitation on enforceability without affecting the remaining provisions of
this Agreement, or the validity, legality or enforceability of such provision in any other jurisdiction.

SECTION
17.  Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

SECTION
18.  Termination. Upon
the payment and performance in full of all Obligations, this Agreement shall terminate and the Secured Party shall promptly, at
the cost of the Grantor, execute and deliver to the Grantor such documents and instruments reasonably requested by the Grantor
as shall be necessary to evidence termination of all security interests given by the Grantor to the Secured Party hereunder; provided,
however, that the obligations of the Grantor under Section 12 hereof shall survive such termination.

 

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

 

	 	GRANTOR:
	 	 
	 	PROTALEX, INC.
	 	 
	 	By:/s/ Kirk M. Warshaw
	 	Kirk M. Warshaw, Chief Financial Officer
	 	 
	 	 
	 	NIOBE VENTURES, LLC
	 	 
	 	By: /s/ Arnold P.
Kling
	 	Arnold P. Kling, Manager

  

    	8

    	 

    
 

EXHIBIT A

COLLATERAL DESCRIPTION ATTACHMENT TO
SECOND AMENDED AND RESTATED SECURITY AGREEMENT

DEBTORPROTALEX, INC., a Delaware corporation

 

SECURED PARTY:Niobe Ventures, LLC

All personal property of Grantor (herein referred to
as “Grantor” or “Debtor”) whether presently existing or hereafter created or acquired, and wherever located
including, without limitation:

		(a)	all accounts (including health-care-insurance receivables), chattel paper (including tangible and
electronic chattel paper), deposit accounts, documents (including negotiable documents), equipment (including all accessions and
additions thereto), general intangibles (including payment intangibles and software), goods (including fixtures), instruments (including
promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including
returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money,
and all of Grantor’s books and records with respect to any of the foregoing, and the computers and equipment containing
said books and records; provided that notwithstanding the foregoing, "Collateral" shall not include more than 65% of
the stock of any subsidiary that is not incorporated, formed or organized under the laws of the United States, any state thereof
or the District of Columbia (a "Foreign Subsidiary"), or more than 65% of the stock of any subsidiary substantially all
of the assets of which are stock in Foreign Subsidiaries;

		(b)	all common law and statutory copyrights and copyright registrations, applications for registration,
now existing or hereafter arising, in the United States of America or in any foreign jurisdiction, obtained or to be obtained on
or in connection with any of the foregoing, or any parts thereof or any underlying or component elements of any of the foregoing,
together with the right to copyright and all rights to renew or extend such copyrights and the right (but not the obligation) of
Secured Party to sue in their own name and/or in the name of the Debtor for past, present and future infringements of copyright;

		(c)	all trademarks, service marks, trade names and service names and the goodwill associated therewith,
together with the right to trademark and all rights to renew or extend such trademarks and the right (but not the obligation) of
Secured Party to sue in their own name and/or in the name of the Debtor for past, present and future infringements of trademark;

		(d)	all (i) patents and patent applications filed in the United States Patent and Trademark Office
or any similar office of any foreign jurisdiction, and interests under patent license agreements, including, without limitation,
the inventions and improvements described and claimed therein, (ii) licenses pertaining to any patent whether Debtor is licensor
or licensee, (iii) income, royalties, damages, payments, accounts and accounts receivable now or hereafter due and/or payable under
and with respect thereto, including, without limitation, damages and payments for past, present or future infringements thereof,
(iv) right (but not the obligation) to sue in the name of Debtor and/or in the name of Secured Party for past, present and future
infringements thereof, (v) rights corresponding thereto throughout the world in all jurisdictions in which such patents have been
issued or applied for, and (vi) reissues, divisions, continuations, renewals, extensions and continuations-in-part with respect
to any of the foregoing; and

		(e)	any and all cash proceeds and/or non-cash proceeds of any of the foregoing, including, without
limitation, insurance proceeds, and all supporting obligations and the security therefor or for any right to payment. All terms
above have the meanings given to them in the New York Uniform Commercial Code, as amended or supplemented from time to
time.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}]]