Document:

THIS WARRANT AND THE SECURITIES UNDERLYING
THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT
BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER SUCH SECURITIES ACT, ANY APPLICABLE STATE SECURITIES LAWS AND THE RULES AND REGULATIONS THEREUNDER. 

 

PROTEA BIOSCIENCES GROUP, INC.

 

WARRANT

 

TO PURCHASE COMMON STOCK OF THE COMPANY

 

	Warrant No. 534	Issue Date: March 6, 2013

 

FOR VALUE RECEIVED,
PROTEA BIOSCIENCES GROUP, INC., a Delaware corporation (the “Company”), grants the following rights to Summit Resources,
Inc., a West Virginia corporation, and its permitted assigns, heirs, executors and administrators (individually and collectively,
the “Holder”), as of the 6th day of March, 2013 (the “Issue Date”). This warrant (the “Warrant”)
has been issued by the Company in connection with that certain Warrant Purchase and Reimbursement Agreement by and between the
Company and Steve Antoline dated as of the Issue Date (the “Purchase Agreement”).

 

Section 1.         Grant.

 

The Holder is hereby
granted the right (collectively, the “Purchase Rights”), in accordance with the terms and conditions of this Warrant,
from the date hereof until the expiration of the “Exercise Period” (as defined below), to purchase from the Company
that number of fully paid and non-assessable shares of the common stock, par value $0.0001 per share (the “Common Stock”)
of the Company, set forth in Section 2 hereof, at the “Exercise Price” (as defined below), upon delivery of this Warrant
to the Company with the Notice of Exercise form attached as Exhibit 1 hereto, duly executed, and upon tender of the Exercise
Price for the shares of Common Stock to be purchased.

 

Section 2.         Number of Shares
of Common Stock Purchasable.

 

2.1       Subject to the other provisions
of this Section 2, this Warrant entitles the Holder to purchase from time to time up to 1,100,000 shares of the Company’s
Common Stock (the “Warrant Shares”).

 

2.2       In case prior to the expiration
of the Purchase Rights by exercise or by the terms of this Warrant, the Company shall undertake any reclassification, stock split,
reverse stock split, stock dividend or any similar proportionately-applied change (collectively, a “Reclassification”)
of outstanding shares of Common Stock (other than a change solely in, of, or from par value), the Holder shall thereafter be entitled,
upon exercise of this Warrant for the same total consideration as presently required, to purchase the kind and amount of shares
of stock and other securities and property receivable upon such Reclassification by a holder of the number of shares of Common
Stock which this Warrant entitles the Holder hereof to purchase immediately prior to such Reclassification. Notice of any such
Reclassification shall be given to the Holder pursuant to Section 12 hereof.

 

    	 

    	 

    

 

2.3       In case prior to the expiration
of the Purchase Rights by exercise or by the terms of this Warrant, the Company shall determine to consolidate or merge with, or
convey all, or substantially all, of its property or assets to, any other corporation or corporations, or dissolve, liquidate or
wind up, then, as a condition precedent to such consolidation, merger, conveyance, dissolution, liquidation or winding up, notice
shall be given to the Holder pursuant to Section 12 hereof and lawful and adequate provision shall be made whereby the Holder shall
thereafter have the right to receive from the Company or the successor corporation, as the case may be, upon the basis and upon
the terms and conditions specified in this Warrant, in lieu of the shares of Common Stock of the Company theretofore purchasable
upon the exercise of the Purchase Rights, such shares of stock, securities, or assets as may be issued or payable with respect
to, or in exchange for, the number of shares of Common Stock of the Company theretofore purchasable upon the exercise of the Purchase
Rights had such consolidation, merger, conveyance, dissolution, liquidation or winding up not taken place; and in any such event
the rights of the Holder to an adjustment of the number of shares of Common Stock purchasable upon the exercise of the Purchase
Rights as herein provided, shall continue and be preserved in respect of any stock or securities which the Holder becomes entitled
to purchase.

.

Section 3.         Exercise Period;
Registration Statement Notice.

 

3.1       The Purchase Rights represented
hereby shall be exercisable in whole or in part from time to time after the date of issuance of this Warrant until the earlier
of (i) a Qualified Public Offering or (ii) 5:00 p.m. Eastern time on the fifth anniversary of the Issue Date hereof (the “Exercise
Period”). For purposes of this Warrant, the term “Qualified Public Offering” shall mean the closing of a firm
commitment underwritten offering pursuant to an effective registration statement under the Securities Act covering the offer and
sale of Common Stock for the account of the Company in which the net cash proceeds to the Company (after deduction of underwriting
discounts and commissions) are at least $10,000,000.

 

3.2       The Company shall give the Holder
written notice, at the address of the Holder set forth on the Company’s books, not less than twenty days prior to the closing
of a Qualified Public Offering.

 

Section 4.         Exercise.

 

4.1       The Purchase Rights represented
by this Warrant are exercisable upon the terms and conditions set forth herein at the option of the Holder in whole at any time
and in part, but not for less than 100 shares at a time, at any time and from time to time during the Exercise Period upon the
delivery of the Notice of Exercise form attached hereto as Exhibit 1 to the Company with such notice duly executed and upon
payment in cash, wire transfer or bank cashier’s check of the Exercise Price. The Purchase Rights shall be deemed to have
been exercised, and the Holder shall be deemed to have become a stockholder of record of the Company for the purposes of receiving
dividends and for all other purposes whatsoever with respect to the shares of Common Stock so purchased, as of the date of delivery
of such properly executed notice accompanied by proper tender of the Exercise Price at the office of the Company. As promptly as
practicable on or after such date, and in any event within three (3) business days thereafter, the Company at its expense shall
issue and deliver, or cause to be issued and delivered, to the person or persons entitled to receive the same, a certificate or
certificates for the number of shares issuable upon such exercise. In the event that this Warrant is exercised in part, the Company
at its expense shall execute and deliver a new Warrant of like tenor exercisable for the number of shares for which this Warrant
may then be exercised.

 

4.2       In lieu of the payment methods
set forth in Section 4.1 above, in the event the Warrant Shares have not been registered under an effective registration
statement filed pursuant to the Securities Act prior to the earlier of: (i) one (1) year from the Issue Date of this Warrant; or
(ii) the closing of the Qualified Public Offering, the Holder may elect to exchange all or some of this Warrant for shares of Common
Stock equal to the value of the amount of the Warrant being exchanged on the date of exchange.  If Holder elects to exchange
this Warrant as provided in this Section 4.2, Holder shall tender to the Company the Warrant for the amount being exchanged,
along with written notice of Holder’s election to exchange some or all of the Warrant, and the Company shall issue to Holder
the number of shares of the Common Stock computed using the following formula:

 

    	 

    	 

    

 

	X =	Y (A-B)
	 	A

 

	Where:	X =	the number of shares of Common Stock to be issued to Holder.
	 	Y =	the number of shares of Common Stock purchasable under the amount of the Warrant being exchanged (as adjusted to the date of such calculation).
	 	A =	the Fair Market Value of one share of the Common Stock on the date that the notice of exercise is received by the Company.
	 	B =	Exercise Price (as adjusted to the date of such calculation).

 

“Fair Market Value” of one
share of Common Stock as of a particular date shall mean: (i) if traded on a national securities exchange, the average volume weighted
average price reported by Bloomberg LP (“VWAP”) of the Common Stock of the Company on such exchange over the five (5)
trading days ending immediately prior to the applicable date of valuation; (ii) if quoted on the OTC Bulletin Board or an over
the counter market operated by OTC Markets Group, Inc or its successor, the average VWAP over the thirty (30) trading days ending
immediately prior to the applicable date of valuation; (iii) if determined in connection with a Qualified Public Offering, the
offering price of the Common Stock in the Qualified Public Offering; and (iv) except as set forth in (iii), if neither (i) nor
(ii) applies, the Fair Market Value shall be the value thereof, as agreed upon by the Company and the Holder; provided, however,
that if the Company and the Holder cannot agree on such value, such value shall be determined by an independent valuation firm
experienced in valuing businesses such as the Company and jointly selected in good faith by the Company and the Holder. Fees and
expenses of the valuation firm shall be paid for by the Company.

 

Section 5.         Exercise Price.

 

The exercise price for
each share of Common Stock issuable to the Holder hereunder shall be $1.10 per share subject to adjustment hereunder (the “Exercise
Price”).

 

Section 6.         Company’s
Warranties and Covenants as to Capital Stock.

 

The Company has taken
all action necessary and appropriate to properly authorize, reserve and issue those shares of Common Stock issuable to the Holder
pursuant to this Warrant including an authorization of issuance and setting of exercise price. The Common Stock deliverable on
the exercise of the Purchase Rights represented hereby shall, when issued, be duly and validly issued, fully paid and nonassessable.
The Company shall at all times reserve and hold available sufficient shares of Common Stock to satisfy all conversion and purchase
rights of all outstanding convertible securities and warrants.

 

    	 

    	 

    

 

Section 7.         Transfer; Compliance
With Securities Laws; Right of Company to Request Opinion of Counsel Confirming Such Compliance; Holder Responsible for Costs of
Transfer Including Reasonable Counsel Fees.

 

The Purchase Rights shall
be registered on the books of the Company, which shall be kept by it at its principal office for that purpose. This Warrant and
the Common Stock issuable upon exercise of the Purchase Rights, may not be transferred or assigned in whole or in part without
compliance with all applicable federal and state securities laws by the transferor and the transferee, including, if requested
by the Company, an opinion of counsel satisfactory to the Company to the effect that the transfer or assignment is in compliance
with applicable securities laws. Subject to such compliance, the Purchase Rights shall be transferable on said books, in whole
or in part, by the Holder in person or by duly authorized attorney upon surrender of this Warrant properly endorsed by the Holder
executing the Permitted Transfer or Assignment Form attached hereto and made a part hereof as Exhibit 2. All reasonable
and documented costs associated with any transfer or assignment, including, without limitation, the reasonable fees of counsel
to the Company shall be borne by the transferor or assignor. The Company agrees that, while the Purchase Rights remain valid and
outstanding, its stock transfer books shall not be closed for any purpose whatsoever except under arrangements which shall insure
to persons exercising warrants or applying for transfer of stock all rights and privileges which they might have had or received
if the stock transfer books had not been closed and they had exercised their Purchase Rights at any time during which such transfer
book shall have been closed.

 

Section 8.         Charges, Taxes
and Expenses.

 

Issuance of certificates
for shares of Common Stock issuable upon the exercise of this Warrant or any portion thereof (and issuance of a replacement Warrant
certificate in the event of partial exercise) shall be made without charge to the Holder hereof for any issue taxes or any other
incidental expenses in respect of the issuance of such certificates to and in the name of the registered Holder of this Warrant,
all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder of
this Warrant. Certificates will be issued in a name other than that of the Holder upon the request of a Holder and payment by the
Holder of any applicable transfer taxes and compliance with all applicable securities laws and with all applicable provisions of
this Warrant including but not limited to Section 7 hereof.

 

Section 9.         Exchange for
Other Denominations.

 

This Warrant is exchangeable
for new certificates of like tenor and date representing in the aggregate the right to purchase the number of shares purchasable
hereunder in denominations designated by the Holder at the time of surrender. In the event of the purchase, at any time prior to
the expiration of the Exercise Period, of less than all of the shares of Common Stock purchasable hereunder, the Company shall
cancel this Warrant upon surrender thereof, and shall promptly execute and deliver to the Holder hereof a new warrant of like tenor
and date for the balance of the shares purchasable hereunder.

 

Section 10.         Loss, Theft,
Destruction or Mutilation of Warrant.

 

Upon receipt by the Company
of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in case
of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon reimbursement to the Company of
all reasonable and documented expenses incidental thereto, and upon surrender of this Warrant, if mutilated, the Company shall
promptly make and deliver a new warrant of like tenor and date, in lieu of this Warrant and cancel this Warrant.

 

Section 11.         Registration
Rights.

 

The Warrant Shares are
subject to the registration rights set forth in Section 7 of the Purchase Agreement.

 

    	 

    	 

    

 

Section 12.         Notices Including
Certificate of Company In Event of Adjustment.

 

(a)          Whenever the number of
shares purchasable hereunder shall be adjusted pursuant to Section 2 hereof, the Company shall issue a certificate signed by its
Chief Financial Officer or its President or such other appropriate officer, setting forth, in reasonable detail, the event requiring
the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the number of shares purchasable
hereunder after giving effect to such adjustment, and shall cause a copy of such certificate to be mailed (by first-class mail,
postage prepaid) to the Holder of this Warrant.

 

(b)          In case:

 

(i)          the Company shall take a record
of the holders of its Common Stock for the purpose of entitling them to receive any dividend or other distribution, or any right
to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, or

 

(ii)         of any capital reorganization
of the Company, any reclassification of the capital stock of the Company, any consolidation or merger of the Company with or into
another corporation, or any conveyance of all or substantially all of the assets of the Company to another corporation, or

 

(iii)        of any voluntary dissolution,
liquidation or winding-up of the Company,

 

then, and in each such case, the Company
shall mail or deliver or cause to be mailed or delivered to the Holder or Holders a notice specifying, as the case may be, (A)
the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character
of such dividend, distribution or right, or (B) the date on which such reorganization, reclassification, consolidation, merger,
conveyance, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders
of record of Common Stock shall be entitled to exchange their shares of Common Stock for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such notice
shall be mailed or delivered at least 15 business days prior to the date therein specified.

 

(c)          All notices, requests, consents
and demands required by this Warrant shall be in writing and shall be personally delivered or mailed, postage prepaid, to the Company
at:

 

PROTEA BIOSCIENCES GROUP, INC.

955 Hartman Run Road

Morgantown, WV 26507

Attn: President

Fax: 304-292-7101

 

with a copy (which shall not constitute
notice) to:

 

Richardson & Patel LLP

The Chrysler Building

405 Lexington Avenue, 49th Floor

New York, New York 10174

Attn: David Feldman, Esq.

Fax: (917) 677-8165

 

and to the Holder at the address of such
Holder set forth in the Purchase Agreement executed by the original holder of this Warrant in connection with the purchase of the
Shares. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal
delivery to the party to be notified, (ii) when sent by confirmed facsimile if sent during normal business hours of the recipient,
if not, then on the next business day, (iii) five (5) days after having been sent by registered or certified mail, return receipt
requested, postage prepaid, or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day
delivery with written verification of receipt.

 

    	 

    	 

    

 

Section 13.         Miscellaneous.

 

This Warrant shall not
entitle the Holder to any of the rights of a stockholder of the Company. This Warrant shall be binding upon the Company’s
successors. This Warrant shall be governed, construed and enforced in accordance with the laws of the State of Delaware. In case
any provision of this Warrant shall be invalid, illegal or unenforceable, or partially invalid, illegal or unenforceable, the provision
shall be enforced to the extent, if any, that it may legally be enforced and the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby. This Warrant shall any term hereof may be changed, waived, discharged
or terminated only by a statement in writing signed by the party against which enforcement of such change, waiver, discharge or
termination is sought. The headings in this Warrant are for purposes of reference only, and shall not limit or otherwise affect
any of the terms hereof.

 

[Signatures appear on following page.]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed, under seal and delivered on its behalf as of the Issue Date set forth
above.

 

	 	PROTEA BIOSCIENCES GROUP, INC.
	 	 	 
	 	By:	
	 	 	Stephen Turner
	 	 	President

 

    	 

    	 

    

 

EXHIBIT 1

 

NOTICE OF EXERCISE PURSUANT TO

ATTACHED WARRANT

 

________________, 20___

 

To: PROTEA BIOSCIENCES GROUP, INC.

 

(1)         The undersigned, the Holder
of record of the attached Warrant of PROTEA BIOSCIENCES GROUP, INC., hereby exercises the option granted by the Purchase Rights
evidenced by the attached Warrant [and hereby tenders payment of the Exercise Price as determined by the Warrant] [on a “cashless”
basis as permitted by Section 4.2 of the Warrant] to purchase upon the terms set forth in such Warrant [________] shares of Common
Stock, which constitutes all [or a portion] of the shares of Common Stock issued pursuant to the Purchase Rights represented by
this Warrant of PROTEA BIOSCIENCES GROUP, INC. All capitalized terms used but not defined in this notice have the meanings assigned
to such terms in the Warrant.

 

(2)        In exercising this Warrant,
the undersigned hereby confirms and acknowledges that (a) the undersigned has complied with all terms and conditions of the Purchase
Agreement as defined in the Warrant, including the requirement that the offer and sale of the Shares was limited to “accredited”
investors only, (b) the shares of the Common Stock to be issued are being acquired solely for investment and solely for the account
of the undersigned, (c) the undersigned will not offer, sell or otherwise dispose of any such shares of Common Stock except under
circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities
laws, and (d) as required under the terms of the Purchase Agreement, the certificate or certificates representing said shares of
Common Stock shall bear a restrictive legend prohibiting and restricting transfer of such shares except in compliance with applicable
federal and state securities laws.

 

(3)        Please issue a certificate or
certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below.

 

(4)        Please issue a new Warrant for
the unexercised portion of the attached Warrant, if any, in the name of the undersigned or in such other name as is specified below:

 

	ATTEST:	HOLDER:	 
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

(If certificates for Common Stock or new
Warrants are requested in a name other than the undersigned, be advised that the delivery of the certificates and/or new Warrants
will be delayed until the Company assures itself that such change is permitted under Section 7 of the Warrant that such change
does not violate applicable federal and state securities laws.)

 

    	 

    	 

    

 

EXHIBIT 2

 

PERMITTED TRANSFER OR ASSIGNMENT FORM

 

NOTE: THIS ASSIGNMENT BEARS A RESTRICTIVE
LEGEND BELOW

 

FOR VALUE RECEIVED,
the undersigned Holder of record of this Warrant of PROTEA BIOSCIENCES GROUP, INC. (the “Company”), which is dated
___________, hereby sells, assigns and transfers unto the Assignee named below all of the rights, including, without limitation,
the Purchase Rights (as such term is defined in this Warrant) of the undersigned under the within Warrant, with respect to the
number of shares of Common Stock set forth below:

 

	Name of Transferee/Assignee	Address	No. of Shares

 

and does hereby irrevocably constitute
and appoint the Secretary of PROTEA BIOSCIENCES GROUP, INC. to make such transfer on the books of PROTEA BIOSCIENCES GROUP, INC.,
maintained for the purpose, with full power of substitution in the premises.

 

Attached hereto, if
and to the extent requested by the Company, is an opinion of counsel that the assignment does not violate or is exempt from, any
federal and state securities laws. As provided in the Warrant, including but not limited to Section 7 of the Warrant, the Company
may, in its sole discretion, decide whether such opinion is satisfactory, and Assignee and Holder agree to any reasonable delay
in transfer caused by such evaluation and further acknowledge and agree that they shall bear all reasonable and documented costs
associated with any transfer or assignment, including, without limitation, the reasonable fees of counsel to the Company shall
be borne by the transferor or assignor.

 

The undersigned also
represents that, by assignment hereof, the Assignee acknowledges that this Warrant and the shares of Common Stock to be issued
upon exercise hereof or conversion thereof are being acquired for investment and that the Assignee will not offer, sell or otherwise
dispose of this Warrant or any shares of stock to be issued upon exercise hereof or conversion thereof except under circumstances
which will not result in a violation of the Securities Act of 1933, as amended, or any state securities laws. Further, the Assignee
has acknowledged that upon exercise of this Warrant, the Assignee shall, if requested by the Company, confirm in writing, in a
form satisfactory to the Company, that the shares of Common Stock so purchased are being acquired for investment and not with a
view toward distribution or resale in violation of applicable securities laws.

 

Accordingly, the
following restrictive legend is made applicable to this assignment (and to this Warrant and securities covered by this Warrant
as assigned hereby to Assignee):

 

This Assignment and this Warrant and
the securities underlying this Warrant as assigned hereby, have not been registered under the Securities Act of 1933, as amended
(the “Securities Act”), and may not be offered, sold or otherwise transferred, assigned, pledged or hypothecated in
the absence of such registration or an exemption therefrom under such Securities Act, any applicable state securities laws and
the rules and regulations thereunder.

 

[Signatures appear on following page.]

 

    	 

    	 

    

 

	Dated: 	 	 	HOLDER:	 
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	Dated:	 	 	ASSIGNEE: 	 
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:THIS WARRANT AND THE SECURITIES UNDERLYING
THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT
BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER SUCH SECURITIES ACT, ANY APPLICABLE STATE SECURITIES LAWS AND THE RULES AND REGULATIONS THEREUNDER.

 

PROTEA BIOSCIENCES GROUP, INC.

 

WARRANT

 

TO PURCHASE COMMON STOCK OF THE COMPANY

 

	Warrant No. __	Issue Date: ___

 

FOR VALUE RECEIVED,
PROTEA BIOSCIENCES GROUP, INC., a Delaware corporation (the “Company”), grants the following rights to ___ and
its permitted assigns, heirs, executors and administrators (individually and collectively, the “Holder”), as of the
___ 2013 (“Issue Date”). This warrant (the “Warrant”) has been issued by the Company in connection with
a sale of up 6,000,000 shares (the “Shares”) of the Company’s common stock, par value $0.0001 per share (the
“Common Stock”), at a purchase price of $0.50 per Share and warrants to purchase up to 4,500,000 shares of Common Stock,
exercisable at an exercise price of $1.10 per share, for maximum aggregate proceeds equal to $3,000,000, pursuant to a limited
offering (the “Offering”) to “accredited investors” only (as defined in Rule 501(a) of Regulation D
under the Securities Act of 1933) pursuant to a Confidential Private Placement Memorandum, dated December 12, 2012, as supplemented
by the Supplement No. 1, dated January 9, 2013 and the Supplement No. 2, dated March 1, 2013, as may be further amended and/or
supplemented from time to time (the “Memorandum”).

 

Section 1.          Grant.

 

The Holder is hereby
granted the right (collectively, the “Purchase Rights”), in accordance with the terms and conditions of this Warrant,
from the date hereof until the expiration of the “Exercise Period” (as defined below), to purchase from the Company
that number of fully paid and non-assessable shares of the Common Stock of the Company, set forth in Section 2 hereof, at the “Exercise
Price” (as defined below), upon delivery of this Warrant to the Company with the Notice of Exercise form attached as Exhibit
1 hereto, duly executed, and upon tender of the Exercise Price for the shares of Common Stock to be purchased.

 

Section 2.          Number
of Shares of Common Stock Purchasable.

 

2.1          Subject
to the other provisions of this Section 2, this Warrant entitles the Holder to purchase from time to time up to ___ shares of the
Company’s Common Stock (the “Warrant Shares”).

 

    	 

    	 

    

 

2.2          In
case prior to the expiration of the Purchase Rights by exercise or by the terms of this Warrant, the Company shall undertake any
reclassification, stock split, reverse stock split, stock dividend or any similar proportionately-applied change (collectively,
a “Reclassification”) of outstanding shares of Common Stock (other than a change solely in, of, or from par value),
the Holder shall thereafter be entitled, upon exercise of this Warrant for the same total consideration as presently required,
to purchase the kind and amount of shares of stock and other securities and property receivable upon such Reclassification by a
holder of the number of shares of Common Stock which this Warrant entitles the Holder hereof to purchase immediately prior to such
Reclassification. Notice of any such Reclassification shall be given to the Holder pursuant to Section 12 hereof.

 

2.3          In
case prior to the expiration of the Purchase Rights by exercise or by the terms of this Warrant, the Company shall determine to
consolidate or merge with, or convey all, or substantially all, of its property or assets to, any other corporation or corporations,
or dissolve, liquidate or wind up, then, as a condition precedent to such consolidation, merger, conveyance, dissolution, liquidation
or winding up, notice shall be given to the Holder pursuant to Section 12 hereof and lawful and adequate provision shall be made
whereby the Holder shall thereafter have the right to receive from the Company or the successor corporation, as the case may be,
upon the basis and upon the terms and conditions specified in this Warrant, in lieu of the shares of Common Stock of the Company
theretofore purchasable upon the exercise of the Purchase Rights, such shares of stock, securities, or assets as may be issued
or payable with respect to, or in exchange for, the number of shares of Common Stock of the Company theretofore purchasable upon
the exercise of the Purchase Rights had such consolidation, merger, conveyance, dissolution, liquidation or winding up not taken
place; and in any such event the rights of the Holder to an adjustment of the number of shares of Common Stock purchasable upon
the exercise of the Purchase Rights as herein provided, shall continue and be preserved in respect of any stock or securities which
the Holder becomes entitled to purchase.

 

2.4          (a)
For purposes of this Section 2.4, the capitalized terms in this Section shall have the following meanings:

 

(i) “Additional
Shares of Common Stock” shall mean all shares of Common Stock issued or sold by the Corporation after the Issue Date, other
than Exempted Securities;

 

(ii) “Convertible
Securities” shall mean shares of Common Stock issued or deemed issued upon the conversion or exercise, as appropriate, of
any debt or equity securities of the Company which are convertible into or exercisable for shares of Common Stock of the Company;

 

(iii)   “Exempted
Securities” shall mean:

 

(v)         Convertible
Securities issued prior to the Issue Date, provided, however, that the agreements or instruments evidencing the Convertible Securities
have not been amended after the Issue Date so as to increase the number of shares of Common Stock issuable under the Convertible
Securities or to lower the conversion or exercise price, as appropriate, of the Convertible Securities;

 

    	 

    	 

    

 

(w)        shares
of Common Stock issued or deemed issued as a dividend or distribution on the Common Stock;

(x)         shares
of Common Stock issued or issuable upon the exercise of this Warrant;

(y)         shares
of Common Stock issued or issuable by reason of a stock split, split-up, or other distribution on shares of Common Stock; or

(z)         shares
of Common Stock issued or issuable to employees, consultants, directors or officers pursuant to an equity incentive plan, employment
agreement or other agreement as compensation for services provided to the Company.

 

(b) At any time after
the Issue Date through the expiration of the Purchase Rights set forth in this Warrant by exercise or the terms of this Warrant,
the Company issues or sells Additional Shares of Common Stock, for a consideration per Additional Share of Common Stock that is
less than $0.50 (as such amount may be adjusted proportionately for any Reclassification) (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 2(b) shall not operate to increase the Exercise Price.

 

Section 3.          Exercise
Period; Registration Statement Notice.

 

3.1          The
Purchase Rights represented hereby shall be exercisable in whole or in part from time to time after the date of issuance of this
Warrant until the earlier of (i) a Qualified Public Offering or (ii) 5:00 p.m. Eastern time on the fifth anniversary of the Issue
Date hereof (the “Exercise Period”). For purposes of this Warrant, the term “Qualified Public Offering”
shall mean the closing of a firm commitment underwritten offering pursuant to an effective registration statement under the Securities
Act covering the offer and sale of Common Stock for the account of the Company in which the net cash proceeds to the Company (after
deduction of underwriting discounts and commissions) are at least $10,000,000.

 

3.2          The
Company shall give the Holder written notice, at the address of the Holder set forth on the Company’s books, not less than
twenty days prior to the closing of a Qualified Public Offering.

 

    	 

    	 

    

 

Section 4.          Exercise.

 

4.1          The
Purchase Rights represented by this Warrant are exercisable upon the terms and conditions set forth herein at the option of the
Holder in whole at any time and in part, but not for less than 100 shares at a time, at any time and from time to time during the
Exercise Period upon the delivery of the Notice of Exercise form attached hereto as Exhibit 1 to the Company with such notice
duly executed and upon payment in cash, wire transfer or bank cashier’s check of the Exercise Price. The Purchase Rights
shall be deemed to have been exercised, and the Holder shall be deemed to have become a stockholder of record of the Company for
the purposes of receiving dividends and for all other purposes whatsoever with respect to the shares of Common Stock so purchased,
as of the date of delivery of such properly executed notice accompanied by proper tender of the Exercise Price at the office of
the Company. As promptly as practicable on or after such date, and in any event within three (3) business days thereafter, the
Company at its expense shall issue and deliver, or cause to be issued and delivered, to the person or persons entitled to receive
the same, a certificate or certificates for the number of shares issuable upon such exercise. In the event that this Warrant is
exercised in part, the Company at its expense shall execute and deliver a new Warrant of like tenor exercisable for the number
of shares for which this Warrant may then be exercised.

 

4.2          In
lieu of the payment methods set forth in Section 4.1 above, in the event the Warrant Shares have not been registered under
an effective registration statement filed pursuant to the Securities Act prior to the earlier of: (i) one (1) year from the Issue
Date of this Warrant; or (ii) the closing of the Qualified Public Offering, the Holder may elect to exchange all or some of this
Warrant for shares of Common Stock equal to the value of the amount of the Warrant being exchanged on the date of exchange.  If
Holder elects to exchange this Warrant as provided in this Section 4.2, Holder shall tender to the Company the Warrant for
the amount being exchanged, along with written notice of Holder’s election to exchange some or all of the Warrant, and the
Company shall issue to Holder the number of shares of the Common Stock computed using the following formula:

 

	X =	Y (A-B)
	 	A

 

	Where:	X =	the number of shares of Common Stock to be issued to Holder.
	 	Y =	the number of shares of Common Stock purchasable under the amount of the Warrant being exchanged (as adjusted to the date of such calculation).
	 	A =	the Fair Market Value of one share of the Common Stock on the date that the notice of exercise is received by the Company.
	 	B =	Exercise Price (as adjusted to the date of such calculation).

 

“Fair Market Value” of one
share of Common Stock as of a particular date shall mean: (i) if traded on a national securities exchange, the average volume weighted
average price reported by Bloomberg LP (“VWAP”) of the Common Stock of the Company on such exchange over the five (5)
trading days ending immediately prior to the applicable date of valuation; (ii) if quoted on the OTC Bulletin Board or an over
the counter market operated by OTC Markets Group, Inc or its successor, the average VWAP over the thirty (30) trading days ending
immediately prior to the applicable date of valuation; (iii) if determined in connection with a Qualified Public Offering, the
offering price of the Common Stock in the Qualified Public Offering; and (iv) except as set forth in (iii), if neither (i) nor
(ii) applies, the Fair Market Value shall be the value thereof, as agreed upon by the Company and the Holder; provided, however,
that if the Company and the Holder cannot agree on such value, such value shall be determined by an independent valuation firm
experienced in valuing businesses such as the Company and jointly selected in good faith by the Company and the Holder. Fees and
expenses of the valuation firm shall be paid for by the Company.

 

    	 

    	 

    

 

Section 5.          Exercise
Price.

 

The exercise price for each share of Common
Stock issuable to the Holder hereunder shall be $1.10 per share subject to adjustment hereunder (the
“Exercise Price”).

 

Section 6.          Company’s
Warranties and Covenants as to Capital Stock.

 

The Company has taken all action necessary
and appropriate to properly authorize, reserve and issue those shares of Common Stock issuable to the Holder pursuant to this Warrant
including an authorization of issuance and setting of exercise price. The Common Stock deliverable on the exercise of the Purchase
Rights represented hereby shall, when issued, be duly and validly issued, fully paid and nonassessable. The Company shall at all
times reserve and hold available sufficient shares of Common Stock to satisfy all conversion and purchase rights of all outstanding
convertible securities and warrants.

 

Section 7.          Transfer;
Compliance With Securities Laws; Right of Company to Request Opinion of Counsel Confirming Such Compliance; Holder Responsible
for Costs of Transfer Including Reasonable Counsel Fees.

 

The Purchase Rights shall be registered
on the books of the Company, which shall be kept by it at its principal office for that purpose. This Warrant and the Common Stock
issuable upon exercise of the Purchase Rights, may not be transferred or assigned in whole or in part without compliance with all
applicable federal and state securities laws by the transferor and the transferee, including, if requested by the Company, an opinion
of counsel satisfactory to the Company to the effect that the transfer or assignment is in compliance with applicable securities
laws. Subject to such compliance, the Purchase Rights shall be transferable on said books, in whole or in part, by the Holder in
person or by duly authorized attorney upon surrender of this Warrant properly endorsed by the Holder executing the Permitted Transfer
or Assignment Form attached hereto and made a part hereof as Exhibit 2. All reasonable and documented costs associated with
any transfer or assignment, including, without limitation, the reasonable fees of counsel to the Company shall be borne by the
transferor or assignor. The Company agrees that, while the Purchase Rights remain valid and outstanding, its stock transfer books
shall not be closed for any purpose whatsoever except under arrangements which shall insure to persons exercising warrants or applying
for transfer of stock all rights and privileges which they might have had or received if the stock transfer books had not been
closed and they had exercised their Purchase Rights at any time during which such transfer book shall have been closed.

 

Section 8.          Charges,
Taxes and Expenses.

 

Issuance of certificates for shares of
Common Stock issuable upon the exercise of this Warrant or any portion thereof (and issuance of a replacement Warrant certificate
in the event of partial exercise) shall be made without charge to the Holder hereof for any issue taxes or any other incidental
expenses in respect of the issuance of such certificates to and in the name of the registered Holder of this Warrant, all of which
taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder of this Warrant.
Certificates will be issued in a name other than that of the Holder upon the request of a Holder and payment by the Holder of any
applicable transfer taxes and compliance with all applicable securities laws and with all applicable provisions of this Warrant
including but not limited to Section 7 hereof.

 

    	 

    	 

    

 

Section 9.          Exchange
for Other Denominations.

 

This Warrant is exchangeable for new certificates
of like tenor and date representing in the aggregate the right to purchase the number of shares purchasable hereunder in denominations
designated by the Holder at the time of surrender. In the event of the purchase, at any time prior to the expiration of the Exercise
Period, of less than all of the shares of Common Stock purchasable hereunder, the Company shall cancel this Warrant upon surrender
thereof, and shall promptly execute and deliver to the Holder hereof a new warrant of like tenor and date for the balance of the
shares purchasable hereunder.

 

Section 10.         Loss,
Theft, Destruction or Mutilation of Warrant.

 

Upon receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in case of loss, theft
or destruction, of indemnity or security reasonably satisfactory to it, and upon reimbursement to the Company of all reasonable
and documented expenses incidental thereto, and upon surrender of this Warrant, if mutilated, the Company shall promptly make and
deliver a new warrant of like tenor and date, in lieu of this Warrant and cancel this Warrant.

 

Section 11.         Registration
Rights.

 

11.1        For
purposes of this Section 11 the capitalized terms in this Section 11 shall have the following meanings:

 

(a)          “Family
Member” means a) with respect to any individual, such individual’s spouse, any descendants (whether natural or adopted),
any trust all of the beneficial interests of which are owned by any of such individuals or by any of such individuals together
with any organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, the estate of any such individual,
and any corporation, association, partnership or limited liability company all of the equity interests of which are owned by those
above described individuals, trusts or organizations and (b) with respect to any trust, the owners of the beneficial interests
of such trust.

 

(b)          “Holder”
means Harris Lydon and any of its respective successors and Permitted Assignees who acquire rights in accordance with this Agreement
with respect to any Registrable Securities (defined below) directly or indirectly from the Holder or from any Permitted Assignee
(defined below).

 

(d)          “Permitted
Assignee” means (a) with respect to a partnership, its partners or former partners in accordance with their partnership interests,
(b) with respect to a corporation, its stockholders in accordance with their interest in the corporation, (c) with respect to a
limited liability company, its members or former members in accordance with their interest in the limited liability company, (d)
with respect to an individual party, any Family Member of such party, (e) an entity that is controlled by, controls, or is under
common control with a transferor, or (f) a party to this Agreement.

 

    	 

    	 

    

 

(e)          “Registration
Effectiveness Deadline” means the date that is the later of (i) one hundred twenty (120) days following the Registration
Filing Deadline or (ii) one hundred eighty (180) days following the final Closing of the Offering.

 

(f)          “Registration
Filing Deadline” means the date that is one hundred twenty (120) days following the final closing of the Offering.

 

(g)          “Registrable
Securities” means the share of Common Stock underlying this Warrant and Shares issued in the Offering but excludes (i) any
Registrable Securities sold by a person in a transaction pursuant to registration statement filed under the Securities Act, or
(ii) any Registrable Securities that are at the time subject to an effective registration statement under the Securities Act.

 

11.2        Registration.

 

(a)          In
connection with the Offering, the Company has agreed to file with the Commission, a registration statement (the “Registration
Statement”) registering for resale all Registrable Securities issued in the Offering. The Registration Statement may include
other equity securities of the Company as the Company may determine in its sole discretion. The Company will agree to use best
efforts to cause the Registration Statement to be filed no later than the Registration Filing Deadline and to become effective
no later than the Registration Effectiveness Deadline. The Company will use commercially reasonably efforts to keep the Registration
Statement effective until the earlier of the date that is eighteen (18) months following the effective date of the Registration
Statement or such date when the Registrable Securities may be resold pursuant to Rule 144.

 

If the Commission does
not declare the Registration Statement effective as a result of the Commission’s determination that (y) Rule 415 may not
be relied upon for the registration of the resale of any or all of the Registrable Securities, and/or (z) a Holder of any Registrable
Securities must be named as an underwriter, the Holders understand and agree that the Company shall register in the Registration
Statement such number of Registrable Securities as is permitted by the Commission without naming such holder(s) as an underwriter
(unless such holder agrees to be named as an underwriter), provided, however, that the Company may reduce, on a pro rata basis,
the total number of Registrable Securities to be registered on behalf of each such Holder. In any such pro rata reduction,
the number of Registrable Securities to be registered on such Registration Statement or any subsequent registration statement shall
be determined in the following order: (i) first, the Investor Shares to be registered shall be registered on a pro rata basis
among the holders of the Investor Shares, and (ii) second the Registrable Warrant Shares to be registered shall be registered on
a pro rata basis among the holders of the Registrable Warrant Shares.

 

    	 

    	 

    

 

(b)          Registration
Filing Deadline Penalty. If the Registration Statement is not filed on or before the Registration Filing Deadline, the
Company shall pay to each Holder of Registrable Securities an amount in cash equal to one-half percent (0.5%) of the Purchase Price
paid by such Holder pursuant to this Agreement (the “Filing Deadline Penalty Amount”) on every thirty (30) day anniversary
of the Registration Filing Deadline until such failure is cured. The Filing Deadline Penalty Amount payable pursuant to this Section
11.2(b) shall be prorated for partial thirty (30) day periods. The maximum aggregate Filing Deadline Penalty Amount to be paid
by the Company to all Holders of Registrable Securities as a result of the failure to file the Registration Statement by the Registration
Filing Deadline shall be equal to three percent (3%) of the net proceeds received by the Company from the Offering (after deduction
of placement agent commissions and expenses). Notwithstanding the foregoing, no amounts shall be owed pursuant to this Section
11.2(b) with respect to any period during which all of the Holder’s Registrable Securities may be sold by such Holder under
Rule 144 or pursuant to another exemption from registration.  Moreover, no such payments shall be due and payable with respect
to any Registrable Securities the Company is unable to register due to limits imposed by the Commission’s interpretation
of Rule 415 under the Securities Act.

 

(c)          Registration
Effectiveness Deadline Penalty. If the Registration Statement is not declared effective on or before the Registration Effectiveness
Deadline, the Company shall issue to each Holder of Registrable Securities an amount of additional shares of Common Stock (the
“Penalty Shares”), valued at a price of $0.50 per share (subject to proportionate adjustment for forward or reverse
stock splits, stock dividends or other similar proportionately-applied changes), equal to one-half percent (0.5%) of the Purchase
Price paid by such Holder pursuant to this Agreement on every thirty (30) day anniversary of the Registration Effectiveness Deadline
until such failure is cured. The number of Penalty Shares issuable to any Holder pursuant to this Section 11.2(c) shall be prorated
for partial thirty (30) day periods. Notwithstanding anything to the contrary herein, the maximum aggregate number of Penalty Shares
to be issued to all Holders of Registrable Securities, in the aggregate, pursuant to this Section 11.2(c) as a result of the failure
of the Registration Statement to be declared effective by the Registration Effectiveness Deadline, together with the maximum aggregate
Filing Deadline Penalty Amount, payable pursuant to Section 11.2(b) above, if applicable, shall be equal to three percent (3%)
of the net proceeds received by the Company from the Offering (after deduction of placement agent commissions and expenses). Notwithstanding
the foregoing, no Effectiveness Deadline Penalties shall be owed with respect to any period during which all of the Holder’s
Registrable Securities may be sold by such Holder under Rule 144 or pursuant to another exemption from registration.  Moreover,
no such issuances shall be due and payable with respect to any Registrable Securities the Company is unable to register due to
limits imposed by the Commission’s interpretation of Rule 415 under the Securities Act.

 

11.3        Piggyback
Registration.   In the event the Company shall determine in its sole discretion to register with the Commission for
sale any Common Stock, for its own account or for the account of others, other than (i) a registration relating solely to employee
benefit plans or securities issued or issuable to employees, consultants (to the extent the securities owned or to be owned by
such consultants could be registered on Form S-8) or any of their Family Members (including a registration on Form S-8) or (ii)
a registration relating solely to a Securities Act Rule 145 transaction or a registration on Form S-4 in connection with a merger,
acquisition, divestiture, reorganization or similar event, the Company shall promptly give to the holders of the Registrable Securities
written notice thereof (and in no event shall such notice be given less than ten (10) calendar days prior to the filing of such
registration statement), and shall, include all of the Registrable Securities specified in a written request delivered by the Holder
thereof within five (5) calendar days after receipt of such written notice from the Company. Except with respect to the Registration
Statement filed pursuant to Section 11.2 above, the Company may, without the consent of the Holders, withdraw such registration
statement prior to its becoming effective if the Company or such other stockholders have elected to abandon the proposal to register
the securities proposed to be registered thereby.

 

    	 

    	 

    

 

Notwithstanding the
foregoing, if such registration undertaken by the Company is in connection with an underwritten public offering, and the underwriter
in such public offering reasonably determines that inclusion of all of the Registrable Securities in such registration would be
detrimental to the successful completion of the offering contemplated in such registration statement, and based on such determination
recommends inclusion in such registration statement of fewer or none of the Registrable Securities of the Holders, then (x) the
number of Registrable Securities of the Holders included in such registration statement shall be reduced pro-rata among such Holders
(based upon the number of Registrable Securities requested to be included in the registration), if the Company after consultation
with the underwriter(s) recommends the inclusion of fewer Registrable Securities, or (y) none of the Registrable Securities of
the Holders shall be included in such registration statement, if the Company after consultation with the underwriter(s) recommends
the inclusion of none of such Registrable Securities; provided, however, that if Securities are being offered for the account of
other persons or entities as well as the Company, such reduction shall not represent a greater fraction of the number of Registrable
Securities intended to be offered by the Holders than the fraction of similar reductions imposed on such other persons or entities
(other than the Company).

 

11.4        Expenses.
The Company shall bear all expenses incurred by the Company in compliance with the registration obligation of the Company, including,
without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company incurred
in connection with any registration, qualification or compliance pursuant to this Agreement and all underwriting discounts, selling
commissions and expense allowances applicable to the sale of any securities by the Company for its own account in any registration.
All underwriting discounts, selling commissions and expense allowances applicable to the sale by Holder of Registrable Securities
and all fees and disbursements of counsel for the Holder shall be borne by the Holder.

 

11.5        Indemnification.

 

(a)          To
the extent permitted by law, the Company will indemnify the Holder, each of its officers, directors, agents, employees and partners,
and each person controlling the Holder, with respect to each registration of Registrable Securities under the Securities Act and
qualification of Registrable Securities under state securities laws effected pursuant to this Agreement, against all claims, losses,
damages and liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based on (i) any untrue statement
(or alleged untrue statement) of a material fact contained in any prospectus, offering circular or other document prepared and
filed by the Company pursuant to which Registrable Securities were registered under the Securities Act (including any related registration
statement, notification or the like) incident to any such registration or qualification, or (ii) any omission (or alleged omission)
to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any
violation by the Company of the Securities Act or any rule or regulation thereunder applicable to the Company and relating to action
or inaction required of the Company in connection with any such registration or qualification, and subject to the provisions of
this section below, will reimburse the Holder, the Holder’s officers, directors, agents, employees and partners, and each
person controlling the Holder, for any legal and any other expenses as they are reasonably incurred in connection with investigating
and defending any such claim, loss, damage, liability or action, provided, however, that the Company will not be liable
to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any failure of the Holder or
the Holder’s representatives to distribute Registrable Securities in accordance with applicable laws (including failure to
deliver any required preliminary prospectus or final prospectus (or the final prospectus as amended and supplemented) at or before
the written confirmation of the sale of such Registrable Securities); nor shall the Company be liable in any such case for any
such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a violation which occurs in
reliance upon and in conformity with written information furnished expressly for use in connection with such registration by the
Holder, any such partner, officer, director, employee, agent or controlling person of the Holder, or any such underwriter or any
person who controls any such underwriter. Notwithstanding the foregoing, the indemnity contained in this subsection shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld).

 

    	 

    	 

    

 

(b)          To
the extent permitted by law, the Holder will indemnify the Company, and its directors, officers, agents, employees and each underwriter,
if any, of the Company’s securities covered by such a registration statement, each person who controls the Company or such
underwriter within the meaning of the Securities Act and the rules and regulations thereunder, against all claims, losses, damages
and liabilities (or actions in respect thereof) arising out of or based on any failure of the Holder or the Holder’s representatives
to distribute Registrable Securities in accordance with applicable laws (including failure to deliver any required preliminary
prospectus or final prospectus (or the final prospectus as amended and supplemented to the extent such amendment or supplement
is timely provided to the Holder as required herein) as required by applicable law); or any untrue statement (or alleged untrue
statement) of a material fact contained in any such registration statement, prospectus, offering circular or other document, or
any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, and will reimburse the Company, directors, officers, partners, persons, underwriters or control persons
for any legal or any other expenses as they are reasonably incurred in connection with investigating or defending any such claim,
loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue
statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document
in reliance upon and in conformity with written information furnished to the Company by the Holder for specific use in such registration
statement, prospectus, offering circular or other document; provided, however, that the obligations of the Holder hereunder shall
be limited to an amount equal to the net proceeds to the Holder from Registrable Securities sold under such registration statement,
prospectus, offering circular or other document as contemplated herein; provided, further, that the indemnity agreement contained
in this subsection shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement
is effected without the consent of the Holder, which consent shall not be unreasonably withheld or delayed.

 

    	 

    	 

    

 

(c)          Each
party entitled to indemnification under this section (the “Indemnified Party”) shall give notice to the party required
to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of
any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim
or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such
claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not unreasonably
be withheld), and the Indemnified Party may participate in such defense at such party’s expense; and provided further that
if counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the Indemnifying Party then the Indemnified Party may retain one separate
counsel at the expense of the Indemnifying Party; and provided further that the failure of any Indemnified Party to give notice
as provided herein shall not relieve the Indemnifying Party of its obligations under this Agreement unless and only to the extent
that such failure to give notice results in material prejudice to the Indemnifying Party. No Indemnifying Party, in the defense
of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or
enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or litigation. Each Indemnified Party shall furnish
such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall
be reasonably required in connection with defense of such claim and litigation resulting therefrom.

 

(d)          If
the indemnification provided for in this section is held by a court of competent jurisdiction to be unavailable to an Indemnified
Party with respect to any loss, liability, claim, damage or expense referred to herein, then the Indemnifying Party, in lieu of
indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result
of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying
Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions which resulted in
such loss, liability, claim, damage or expense as well as any other relevant equitable considerations. The relative fault of the
Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the Indemnifying
Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission.

 

Section 12.         Notices
Including Certificate of Company In Event of Adjustment.

 

(a)         Whenever
the number of shares purchasable hereunder shall be adjusted pursuant to Section 2 hereof, the Company shall issue a certificate
signed by its Chief Financial Officer or its President or such other appropriate officer, setting forth, in reasonable detail,
the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the number
of shares purchasable hereunder after giving effect to such adjustment, and shall cause a copy of such certificate to be mailed
(by first-class mail, postage prepaid) to the Holder of this Warrant.

 

    	 

    	 

    

 

(b)          In
case:

 

(i)          the
Company shall take a record of the holders of its Common Stock for the purpose of entitling them to receive any dividend or other
distribution, or any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive
any other right, or

 

(ii)         of
any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger
of the Company with or into another corporation, or any conveyance of all or substantially all of the assets of the Company to
another corporation, or

 

(iii)        of
any voluntary dissolution, liquidation or winding-up of the Company,

 

then, and in each such case, the Company
shall mail or deliver or cause to be mailed or delivered to the Holder or Holders a notice specifying, as the case may be, (A)
the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character
of such dividend, distribution or right, or (B) the date on which such reorganization, reclassification, consolidation, merger,
conveyance, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders
of record of Common Stock shall be entitled to exchange their shares of Common Stock for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such notice
shall be mailed or delivered at least 15 business days prior to the date therein specified.

 

(c)          All
notices, requests, consents and demands required by this Warrant shall be in writing and shall be personally delivered or mailed,
postage prepaid, to the Company at:

 

PROTEA BIOSCIENCES
GROUP, INC.

955 Hartman Run Road

Morgantown, WV 26507

Attn:  President

Fax:  304-292-7101

 

with a copy (which shall not constitute
notice) to:

 

Richardson & Patel
LLP

The Chrysler Building

405 Lexington Avenue,
49th Floor

New York, New York
10174

Attn:  David
Feldman, Esq.

Fax:  (917)
677-8165

 

    	 

    	 

    

 

and to the Holder at the following address:

 

Brookline Group, LLC

2501 Twentieth Place
South

Suite 275

Birmingham, Alabama
35223

Attention: Mr. Madding
King

 

All notices required or permitted hereunder
shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) when sent
by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (iii) five
(5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day
after deposit with a nationally recognized overnight courier, specifying next day delivery with written verification of receipt.

 

Section 13.         Miscellaneous.        This
Warrant shall not entitle the Holder to any of the rights of a stockholder of the Company. This Warrant shall be binding upon
the Company’s successors. This Warrant shall be governed, construed and enforced in accordance with the laws of the State
of Delaware. In case any provision of this Warrant shall be invalid, illegal or unenforceable, or partially invalid, illegal or
unenforceable, the provision shall be enforced to the extent, if any, that it may legally be enforced and the validity, legality
and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. This Warrant shall any term
hereof may be changed, waived, discharged or terminated only by a statement in writing signed by the party against which enforcement
of such change, waiver, discharge or termination is sought. The headings in this Warrant are for purposes of reference only, and
shall not limit or otherwise affect any of the terms hereof.

 

[Signatures appear on following page.]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be duly executed, under seal and delivered on its behalf as of the Issue Date set forth above.

 

	 	PROTEA BIOSCIENCES GROUP, INC.
			 
	 	By:	
	 	 	Stephen Turner
	 	 	President

 

    	 

    	 

    

 

EXHIBIT 1

 

NOTICE OF EXERCISE PURSUANT TO

ATTACHED WARRANT

 

____________________, 20___

 

To:  PROTEA BIOSCIENCES GROUP,
INC.

 

(1)         The
undersigned, the Holder of record of the attached Warrant of PROTEA BIOSCIENCES GROUP, INC., hereby exercises the option granted
by the Purchase Rights evidenced by the attached Warrant [and hereby tenders payment of the Exercise Price as determined by the
Warrant] [on a “cashless” basis as permitted by Section 4.2 of the Warrant] to purchase upon the terms set forth in
such Warrant [________] shares of Common Stock, which constitutes all [or a portion] of the shares of Common Stock issued pursuant
to the Purchase Rights represented by this Warrant of PROTEA BIOSCIENCES GROUP, INC. All capitalized terms used but not defined
in this notice have the meanings assigned to such terms in the Warrant.

 

(2)         In
exercising this Warrant, the undersigned hereby confirms and acknowledges that (a) the undersigned has complied with all terms
and conditions of the Offering as defined in the Warrant, including the requirement that the Offering was limited to “accredited”
investors only, (b) the shares of the Common Stock to be issued are being acquired solely for investment and solely for the account
of the undersigned, (c) the undersigned will not offer, sell or otherwise dispose of any such shares of Common Stock except under
circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities
laws, and (d) as required under the terms of the Offering, the certificate or certificates representing said shares of Common Stock
shall bear a restrictive legend prohibiting and restricting transfer of such shares except in compliance with applicable federal
and state securities laws.

 

(3)         Please
issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name
as is specified below.

 

(4)         Please
issue a new Warrant for the unexercised portion of the attached Warrant, if any, in the name of the undersigned or in such other
name as is specified below:

 

	ATTEST:	HOLDER:	 

 

	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

(If certificates for Common Stock or new
Warrants are requested in a name other than the undersigned, be advised that the delivery of the certificates and/or new Warrants
will be delayed until the Company assures itself that such change is permitted under Section 7 of the Warrant that such change
does not violate applicable federal and state securities laws.)

 

    	 

    	 

    

 

EXHIBIT 2

 

PERMITTED TRANSFER OR ASSIGNMENT FORM

 

NOTE: THIS ASSIGNMENT BEARS A RESTRICTIVE
LEGEND BELOW

 

FOR VALUE RECEIVED,
the undersigned Holder of record of this Warrant of PROTEA BIOSCIENCES GROUP, INC. (the “Company”), which is dated
___________, hereby sells, assigns and transfers unto the Assignee named below all of the rights, including, without limitation,
the Purchase Rights (as such term is defined in this Warrant) of the undersigned under the within Warrant, with respect to the
number of shares of Common Stock set forth below:

 

	Name of Transferee/Assignee	Address	No. of Shares

 

and does hereby irrevocably constitute
and appoint the Secretary of PROTEA BIOSCIENCES GROUP, INC. to make such transfer on the books of PROTEA BIOSCIENCES GROUP, INC.,
maintained for the purpose, with full power of substitution in the premises.

 

Attached hereto, if
and to the extent requested by the Company, is an opinion of counsel that the assignment does not violate or is exempt from, any
federal and state securities laws. As provided in the Warrant, including but not limited to Section 7 of the Warrant, the Company
may, in its sole discretion, decide whether such opinion is satisfactory, and Assignee and Holder agree to any reasonable delay
in transfer caused by such evaluation and further acknowledge and agree that they shall bear all reasonable and documented costs
associated with any transfer or assignment, including, without limitation, the reasonable fees of counsel to the Company shall
be borne by the transferor or assignor.

 

The undersigned also
represents that, by assignment hereof, the Assignee acknowledges that this Warrant and the shares of Common Stock to be issued
upon exercise hereof or conversion thereof are being acquired for investment and that the Assignee will not offer, sell or otherwise
dispose of this Warrant or any shares of stock to be issued upon exercise hereof or conversion thereof except under circumstances
which will not result in a violation of the Securities Act of 1933, as amended, or any state securities laws. Further, the Assignee
has acknowledged that upon exercise of this Warrant, the Assignee shall, if requested by the Company, confirm in writing, in a
form satisfactory to the Company, that the shares of Common Stock so purchased are being acquired for investment and not with a
view toward distribution or resale in violation of applicable securities laws.

 

Accordingly, the
following restrictive legend is made applicable to this assignment (and to this Warrant and securities covered by this Warrant
as assigned hereby to Assignee):

 

This Assignment and this Warrant and
the securities underlying this Warrant as assigned hereby, have not been registered under the Securities Act of 1933, as amended
(the “Securities Act”), and may not be offered, sold or otherwise transferred, assigned, pledged or hypothecated in
the absence of such registration or an exemption therefrom under such Securities Act, any applicable state securities laws and
the rules and regulations thereunder.

 

[Signatures appear on following page.]

 

    	 

    	 

    

 

	Dated: __________________	HOLDER:	 

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

	Dated: __________________	ASSIGNEE:	 

 

	 	By:	 
	 	Name:	 
	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00217-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00217-of-00352.parquet"}]]