Document:

OPTION AGREEMENT

 

This
Option Agreement (this “Agreement”), dated March 27, 2014 (the “Effective Date”), by and
among Protea Biosciences Group, Inc., a Delaware corporation, with offices at 955 Hartman Run Road, Morgantown, West Virginia (the
“Parent”), Protea Biosciences, Inc., a Delaware corporation (“Protea Sub”) with offices at
955 Hartman Run Road, Morgantown, West Virginia, ProteaBio Europe SAS, a corporation organized under the laws of France, with offices
at 290 chemin de Saint Dionisy- Jardin des Entreprises, 30980 Langlade, France (the “Subsidiary”),
on the one hand, and BioPharma d’Azur, Inc., a Delaware corporation, with offices at 1410 Broadway, 23rd Fl., New York, NY
10018 (the “Buyer” or “BioPharma”), on the other hand. The Parent, the Protea Sub and the
Subsidiary are sometimes each referred to herein as a “Seller” and collectively as the “Sellers”. The Parent,
the Protea Sub, the Subsidiary and the Buyer are referred to collectively herein as the “Parties” and individually
as a “Party.”

 

WHEREAS, the Parent
owns 100% of the outstanding capital stock of Protea Sub which owns 100% of the outstanding capital stock of the Subsidiary;

 

WHEREAS, the Sellers
and the Buyer have entered into a Memorandum of Understanding, dated March 19, 2014 (the “MOU”), relating to
the potential acquisition (the “Acquisition”) by the Buyer of substantially all of the assets of the Subsidiary
(the “Assets”) pursuant to a definitive Asset Purchase Agreement (the “APA”) to be negotiated
and entered into among the Parties substantially as described herein; and

 

NOW, THEREFORE, for good and valuable consideration,
the Parties agree as follows.

 

1.Exclusive Option Period to
Acquire the Assets. Subject to the terms and conditions contained herein, in consideration for Buyer’s non-refundable
payment of U.S. $300,000 (the “Option Fee”) to the Parent, for a period beginning as of the date of this Agreement
through and including the ninetieth day following the Effective Date (the “Option Period”), the Buyer shall
have the exclusive option to acquire the Assets (“Option”), which shall consist of all of the product rights, intellectual
property, know how, materials, data, facilities and personnel relating to the pharmaceutical research and development projects
and activities conducted by or through the Subsidiary which shall be specifically set forth on a schedule to the APA and will include
an assignment of the Seller’s rights, title and interest in and to the Amended and Restated Joint Research Agreement, by
and among Protea Sub, the Subsidiary and Laboratoires Mayoly Spindler SAS, dated March 22, 2010, as amended (the “Mayoly
Agreement”), in exchange for shares of preferred stock of the Buyer (the “Preferred Stock”) with such
rights as described in Section 7(b) of this Agreement.

 

2.
Exercise of the Option. The exercise of the Option and the
consummation of the transactions pursuant to the definitive APA is conditioned upon the Buyer raising gross proceeds from an equity
financing of not less than U.S. $300,000 (the “First Funding Amount”), excluding the Option Fee (the “Condition
Precedent”). So long as the Condition Precedent has been satisfied, the Buyer may notify the Seller of its intent to
exercise the Option in accordance with Section 8(b) of this Agreement at any time prior to the earlier of (i) the termination
of this Agreement in accordance with Section 8(a) herein and (ii) the expiration of the Option Period. Upon the consummation of
the transactions pursuant to the definitive APA, the Buyer shall deliver to the Parent payment equal to the First Funding Amount.

 

3.Expiration of the Option Period.
In the event the Option Agreement is terminated as provided in Section 8(a) herein or the Option Period expires as a result of
Buyer’s failure to exercise the Option, the Parent shall promptly issue to the Buyer, or its designees, such number of shares
of the Parent’s common stock (the “Parent Shares”) that is equal to the Option Fee divided by the greater
of (i) $0.55 and (ii) the twenty (20) day volume weighted average price of the Parent’s shares of common stock as reported
by Bloomberg L.P., if applicable (the “Conversion Price”). The Conversion Price shall be subject to appropriate
and proportionate adjustment for adjustment for stock dividends payable in shares of, forward or reverse stock splits and other
subdivisions and combinations of, and recapitalizations and like occurrences with respect to the common stock. The Shares will
be issued pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities
Act”), and will bear a customary restrictive legend to that effect.

 

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4.Change to Transaction Structure.
The Buyer and Seller may, upon their mutual consent and at any time, amend the provisions of Section 1 hereof for the purpose
of changing the type of securities or structure of the transaction contemplated by this Agreement; provided, however, that
any change to the terms of the transaction shall result in the Buyer acquiring the Assets as contemplated herein.

 

5.Representations
and Warranties of Buyer. Buyer makes the following representations and warranties to Seller effective as of the date hereof
(unless otherwise specifically provided herein), where applicable:

 

(a)Capitalization
of the Buyer. The authorized capital stock of the Buyer consists of 9,000,000 shares of common stock, par value $0.0001 per
share, of which there are 3,425,237 shares of common stock issued and outstanding. All of the issued and outstanding common stock
of the Buyer has been duly authorized, validly issued, fully paid and non-assessable.

 

(b)Due
Incorporation; Power. Buyer is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation, as applicable and no certificate of dissolution has been filed under the laws of its jurisdiction of organization.
Buyer has the corporate power to own its properties and to carry on its business as now being conducted. Buyer is not in violation
of any of the provisions of its Certificate of Incorporation or Bylaws.

 

(c)Authority.
Buyer has all requisite corporate power and authority to enter into this Agreement and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer
and constitutes the valid and binding obligations of Buyer enforceable against Buyer in accordance with its terms, except as enforceability
may be limited by bankruptcy and other laws affecting the rights and remedies of creditors generally and general principles of
equity. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will
not, conflict with, or result in any violation of, or default under (with or without notice or lapse of time, or both), or give
rise to a right of termination, cancellation or acceleration of any obligation or loss of any benefit under (i) any provision of
the Certificate of Incorporation or Bylaws of the Buyer or (ii) to the knowledge of the Buyer, any material mortgage, indenture,
lease, contract or other agreement or instrument, permit, concession, franchise, license, judgment, order, decree, statute, law,
ordinance, rule or regulation applicable to the Buyer, except where such conflict, violation, default, termination, cancellation
or acceleration with respect to the foregoing provisions of this clause (ii) could not have had and could not reasonably be expected
to have a material adverse effect on the Buyer.

 

(d)Broker’s
and Finders’ Fees. Buyer has not incurred, nor will it incur, directly or indirectly, any liability for brokerage or
finders’ fees or agents’ commissions or investment bankers’ fees or any similar charges in connection with this
Agreement or any transaction contemplated hereby.

 

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(e) Investment
Knowledge. The Buyer has such knowledge and experience in business, financial and tax matters including, in particular, investing
in private placements of securities in companies similar to the Parent, so as to enable the Buyer to evaluate the merits and risks
of an investment in the Parent and to make an informed investment decision with respect thereto; and (ii) to reasonably be assumed
to have the capacity to protect the Buyer’s own interests in connection with the transaction contemplated by this Agreement.

 

(f)Restricted Shares.
The Buyer understands and acknowledges that: (i) the Parent Shares have not been, and when and if issued, will not be, registered
with the Securities and Exchange Commission (the “Commission”) under Section 5 of the Securities Act of 1933,
as amended (the “Securities Act”), in reliance upon one or more exemptions afforded by the Securities Act and/or rules
promulgated by the Commission pursuant thereto which may be selected by Parent in its sole discretion including, without limitation
(collectively and severally, the “Federal Exemptions”): (1) Section 4(2) of the Securities Act for private offerings;
and (2) Rule 506 of Regulation D promulgated under Section 4(2) of the Securities Act for private offerings; and (ii) the Parent
Shares have not been, and when and if issued, will not be, registered or qualified with any applicable state or territorial securities
regulatory agency in reliance upon one or more exemptions afforded from registration or qualification afforded under the securities
laws of such state or territory (the “Blue Sky Laws”) which exemptions may be selected by Parent in its sole
discretion (collectively and severally, the “Blue Sky Exemptions”).

 

(g)Access
to Information. During the course of the transaction contemplated by this Agreement, the Buyer has had the opportunity, to
the extent it determined to be necessary or relevant in order to evaluate the merits of an investment in the Parent Shares: (i)
to be provided with financial and other written information about the Seller to the extent the Seller has such information in its
possession or could acquire it without unreasonable effort or expense; (ii) to meet with representatives of the Buyer and to ask
questions and receive answers concerning the terms and conditions of this Agreement, the Parent Shares, and the business of the
Seller and its finances; (iii) to review all documents, books and records of the Seller, including the public filings of the Parent;
and (iv) to the extent the Buyer availed itself of this opportunity, received satisfactory information and answers.

 

(h)General
Solicitation. The Buyer did not become aware of this offering, through or as the result of any public or promotional seminar
or meeting to which the Buyer was invited by, or any solicitation of a subscription by, a person not previously known to the Buyer.

 

6.Representations
and Warranties of Sellers. The Sellers, severally, make the following representations and warranties to Buyer effective as
of the date hereof (unless otherwise specifically provided herein), where applicable:

 

(a)Capitalization
of the Seller. The authorized capital stock of the Parent consists of 200,000,000 shares of common stock, and 10,000,000 shares
of "blank check" preferred stock, par value $0.0001 per share, of which there are 65,467,735 shares of common stock issued
and outstanding and no shares of preferred stock issued and outstanding. All of the issued and outstanding common stock of the
Parent has been duly authorized, validly issued, fully paid and non-assessable. The Parent owns 100% of the issued and outstanding
capital stock of the Protea Sub and the Protea Sub owns 100% of the issued and outstanding capital stock of the Subsidiary.

 

(b)Due
Incorporation; Power. The Sellers are each corporations duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation, as applicable and no certificate of dissolution has been filed under the laws of its
jurisdiction of organization. Seller has the corporate power to own its properties and to carry on its business as now being conducted.
Seller is not in violation of any of the provisions of its Certificate of Incorporation or Bylaws, or applicable governing documents.

 

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(c)Authority.
The Sellers have all requisite corporate power and authority to enter into this Agreement and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of Sellers. This Agreement has been duly executed and delivered by the
Sellers and constitutes the valid and binding obligations of Sellers enforceable against the Sellers in accordance with its terms,
except as enforceability may be limited by bankruptcy and other laws affecting the rights and remedies of creditors generally and
general principles of equity. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated
hereby will not, conflict with, or result in any violation of, or default under (with or without notice or lapse of time, or both),
or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any benefit under (i) any provision
of the Certificate of Incorporation or Bylaws or other governing documents of the Sellers or (ii) to the knowledge of the Seller,
any material mortgage, indenture, lease, contract or other agreement or instrument, permit, concession, franchise, license, judgment,
order, decree, statute, law, ordinance, rule or regulation applicable to the Seller, except where such conflict, violation, default,
termination, cancellation or acceleration with respect to the foregoing provisions of this clause (ii) could not have had and could
not reasonably be expected to have a material adverse effect on the Seller.

 

(d) Mayoly
Agreement. The Sellers represent that as of the date of this Agreement the Mayoly Agreement is in full force and effect and
that the Seller is not in breach or violation of the terms of such agreement, other than those which have been waived.

 

7.Covenants
and Additional Agreements. The Seller and Buyer hereby each agree and covenant as follows:

 

(a)Exclusive
Dealing. From the date of this Agreement until the earlier of the date of (i) the termination of this Agreement as provided
in Section 8(a) herein or (iii) the expiration of the Option Period, neither the Seller, nor any of its officers, employees, directors,
managers, stockholders, other securities holders, advisors, representatives or affiliates shall directly or indirectly solicit,
initiate, entertain or accept any inquiries or proposals from, discuss or negotiate with, provide any non-public information to,
or consider the merits of any unsolicited inquiries or proposals from, any person or entity relating to any transaction involving
the sale or transfer of the Assets, including in connection with a merger or other business combination, except in the ordinary
course of business.

 

(b)Rights
of the Preferred Shares.

 

(i) The
Preferred Shares will automatically convert at a ratio (the “Conversion Ratio”) that shall result in the Parent
owning no less than thirty-three percent (33%) of the issued and outstanding shares of common stock of the Buyer on a fully diluted
basis (assuming conversion of the Preferred Shares and subject to any adjustment as provided below) (the “Conversion Shares”)
upon the consummation of a transaction that results in BioPharma becoming either a public reporting company that files (voluntarily
or otherwise) reports with the Securities and Exchange Commission pursuant to the rules and regulations promulgated under the Securities
Exchange Act of 1934, as amended (whether by means of an initial public offering, reverse merger, self-registration or otherwise)
or a public trading company that is quoted or listed on any U.S. securities exchange or quotation service (“Public Event”);
provided, that prior to the Public Event the Buyer shall have raised in an equity or equity-linked financing (“Subsequent
Financing”) no less than an aggregate of $6,000,000 (“Subsequent Financing Amount”) at a pre-money
valuation greater than $12,000,000. For a period beginning upon the closing of the Acquisition until the closing of the Subsequent
Financing, in the event that BioPharma issues or sells any shares of common stock, or other securities of BioPharma that are convertible,
exercisable or otherwise exchangeable for shares of BioPharma common stock at a price per share that is determined by a pre-money
valuation of less than $12,000,000, the Conversion Ratio of the Preferred Shares shall be adjusted on a full ratchet basis.

 

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(ii)The
Conversion Shares issuable to the Seller shall contain customary piggy-back registration rights upon a Public Event, subject to
standard underwriter and cutbacks as shall be required by the Commission.

 

(iii)For
so long as the Parent owns at least twenty percent (20%) of the outstanding shares of common stock of the Buyer (assuming conversion
of the Preferred Shares), the Parent will have a right to designate one member of the Buyer’s board of directors.

 

(c)In
the event the Buyer has not provided evidence to the Seller that it has raised gross proceeds from an equity or equity-linked financing
of at least $2,000,000 (the “Funding Threshold Amount”) on or before the six month anniversary of the closing
of the Acquisition, the Assets, together with any funds the Buyer has raised in such equity or equity-linked financing and any
subsequent financing, will revert to the Seller in accordance with the terms of the APA and the Preferred Shares will be forfeited
by the Parent to the Buyer (the “Forfeiture Date”). In such event, the Parent will issue to the Buyer shares
of its common stock at the Conversion Price for the total dollar amount raised by the Buyer through the Forfeiture Date, including
the Option Fee and the First Funding Amount. Upon satisfaction of the Funding Threshold Amount, all rights of the Seller to the
Assets will terminate.

 

(d)Prior
to conversion or forfeiture, the Preferred Shares will vote together with the Buyer’s common stock on all matters to be voted
on by shareholders and will represent thirty-three percent (33%) of the outstanding voting stock of BioPharma, subject to adjustment
pursuant to Section 7(b) hereof. The Preferred Shares will have no other preferences over the common stock.

 

(e)Upon
the sale or transfer of the Assets by the Buyer, at any time following the consummation of the Acquisition, whether in connection
with a sale of assets, merger, or other business combination, the Parent will be entitled to ten percent (10%) of the net proceeds
received by the Buyer in connection with such sale.

 

(f)On
or prior to the closing of the Acquisition in accordance with the APA, BioPharma shall have entered into an employment agreement
with a person mutually agreed to by the Parties to serve as the Buyer’s Chief Executive Officer.

 

(g)The
Buyer will adopt a stock incentive plan covering 10% of its outstanding equity and will provide for option grants to members of
management in amounts to be mutually agreed upon by the Parties.

 

(h)The
Buyer agrees to use its best commercial efforts to raise $3,000,000 of gross proceeds in excess of the Funding Threshold Amount
on or prior to the first anniversary of the exercise of the Option. The Parent will use commercially reasonable efforts to assist
in such capital raising efforts if requested by the Buyer.

 

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(i)The
Parent agrees to provide accounting and administrative support as reasonably requested by the Buyer until the earlier of the (A)
the one year anniversary of the closing of the Acquisition pursuant to the APA or (B) the Forfeiture Date.

 

(j)Upon
the closing of the Acquisition, the Parties shall have received all board and shareholder approvals and other consents necessary
to consummate the Acquisition, including the assignment of the Mayoly Agreement.

 

(k)Upon
the closing of the Acquisition, the Parent will be entitled to the following royalty and milestone payments from the Buyer:

 

(i)$2,000,000 payable upon receipt of the first
FDA approval;

(ii)2.5% of annual net sales up to $100,000,000; and

(iii)1.5% of annual net sales in excess of $100,000,000.

 

(l)Confidentiality.
Each Party hereby agrees to maintain the confidentiality of all Confidential Information (defined below) provided to it by the
other Party and to return any materials and other information containing Confidential Information of the other Party in the event
that the Option is not exercised or the Acquisition is not consummated. For the purposes hereof, “Confidential Information”
shall mean any and all proprietary information and documents provided by the disclosing Party to the receiving Party, either directly
or indirectly, in writing, electronically, orally, by inspection of tangible objects, or otherwise unless such information has
been explicitly designated by the disclosing Party as not Confidential Information. Confidential Information shall not include
information that (i) at the time of use or disclosure by the receiving Party is in the public domain through no fault of, action
or failure to act by the receiving Party; (ii) becomes known to the receiving Party from a third-party source on a non-confidential
basis whom the receiving Party does not know to be subject to any obligation of confidentiality to the disclosing Party; (iii)
was known by the receiving Party prior to disclosure of such information by the disclosing Party to the receiving Party; or (iv)
was independently developed by the receiving Party, or on the receiving Party’s behalf, without any use of Confidential Information.
Notwithstanding the foregoing, in the event that disclosure of Confidential Information by a receiving Party is made to comply
with any request or inquiry of or by any governmental or regulatory authority (any of the foregoing, a “Governmental Requirement”),
it is agreed that prior to any such disclosure of such Confidential Information, the receiving Party will, unless such action would
violate or conflict with applicable law, provide the disclosing Party with prompt notice of such Governmental Requirement and the
Confidential Information so required to be disclosed, so that the disclosing Party may seek an appropriate protective order and/or
waive compliance with the provisions of this Agreement. It is further agreed that if, in the absence of a protective order or in
the absence of receipt of a waiver hereunder, the receiving Party is nonetheless, in the opinion of the receiving Party’s
counsel, compelled by Governmental Requirement to disclose any of such Confidential Information, the receiving Party, after notice
to the disclosing Party (unless such notice would violate or conflict with applicable law), may so disclose such Confidential Information
as required pursuant to Governmental Requirement without liability hereunder; provided, however, the receiving Party will
furnish only that portion of the Confidential Information which the receiving Party, in the opinion of the receiving Party’s
counsel, is legally compelled to disclose pursuant to the Governmental Requirement and will exercise reasonable efforts to cooperate
with the disclosing Party, at the disclosing Party’s expense, with the disclosing Party’s efforts to obtain an order
or other reliable assurance that confidential treatment will be accorded to the disclosed Confidential Information.

 

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(m)Public
Disclosure; Current Report on Form 8-K. Unless otherwise permitted by this Agreement, the Seller and Buyer shall consult with
each other before issuing any press release or otherwise making any public statement or making any other public (or non-confidential)
disclosure (whether or not in response to an inquiry) regarding the terms of this Agreement and the transactions contemplated hereby,
and neither shall issue any such press release or make any such statement or disclosure without the prior approval of the other
(which approval shall not be unreasonably withheld), except as may be required by law including, without limitation, the filing
of any required SEC documents. In furtherance thereof, the Parties hereby acknowledge and agree that Parent is required to file
a Current Report on Form 8-K within four (4) business days after the execution of this Agreement.

 

8.General Provisions.

 

(a)Termination.
This Agreement shall terminate and the Parties, except as otherwise provided in this Agreement, shall have no further rights or
obligations hereunder upon the first to occur of any of the following events: (i) Buyer shall provide Parent with written notice
of its election to terminate this Agreement; (ii) at the election of either Party, if the other Party has (A) breached any of its
representations, warranties or covenants contained herein or (B) failed to perform any of its material obligations hereunder and
has not cured such breach or failure within twenty (20) days after written notice by the other Party thereof; (iii) the expiration
of the Option Period; or (iv) the execution of the APA.

 

(b)Notices.
All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally or by commercial
delivery service, or mailed by registered or certified mail (return receipt requested) or sent via facsimile (with confirmation
of receipt) to each Party at their addresses set forth at the beginning of this Agreement (or at such other address for a Party
as shall be specified by like notice).

 

(c)Counterparts;
Signatures. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all
of which together shall constitute one and the same Agreement. Delivery by fax or electronic image of an executed counterpart of
a signature page to the Agreement shall be effective as delivery of an original executed counterpart of this Agreement.

 

(d)Severability.
In the event that any one or more of the provisions of this Agreement shall be held invalid, illegal or unenforceable in any respect,
or the validity, legality and enforceability of any one or more of the provisions contained herein shall be held to be excessively
broad as to duration, activity or subject, such provision shall be construed by limiting and reducing such provision so as to be
enforceable to the maximum extent compatible with applicable law.

 

(e)Entire
Agreement; Assignment; Parties in Interest. This Agreement and the documents and instruments and other agreements specifically
referred to herein or delivered pursuant hereto: (i) constitute the entire agreement among the Parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, both written and oral, among the Parties with respect to the
subject matter hereof; (ii) are not intended to confer upon any other person or entity any rights or remedies hereunder, except
as specifically provided in this Agreement; and (iii) shall not be assigned by operation of law or otherwise except as otherwise
specifically provided herein. No representations, warranties, inducements, promises or agreements, oral or written, by or among
the Parties not contained herein shall be of any force of effect. This Agreement and its rights and obligations hereunder may not
be assigned without the prior written consent of the Parties.

 

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(f)Governing
Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New York,
without regard to the laws that might otherwise govern under applicable principles of conflicts of law. Each of the Parties hereto
irrevocably consents to the exclusive jurisdiction of the federal court for the Southern District of New York and the New York
State Supreme Court located in New York County, New York, in connection with any matter based upon or arising out of this Agreement
or the matters contemplated herein, and also agrees that process may be served upon them in any manner authorized by the laws of
the State of New York for such persons and waives and covenants not to assert or plead any objection which they might otherwise
have to such jurisdiction and such process.

 

 

[SIGNATURE PAGE FOLLOWS.]

 

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The Parties have executed
this Agreement as of the date first set forth above. 

 

	 	SELLERS
	 	 	 
	 	PROTEA BIOSCIENCES GROUP, INC. 
	 	 
	 	 	 
	 	By:	/s/ Stephen Turner
	 	 	Stephen Turner, Chief Executive Officer
	 	 	 
	 	 	 
	 	PROTEA BIOSCIENCES, INC. 
	 	 
	 	 	 
		By:	/s/ Stephen Turner
	 	 	Stephen Turner, Chief Executive Officer
	 	 	 
	 	 	 
	 	PROTEABIO EUROPE SAS
	 	 
	 	 	 
	 	By:	/s/ Daniel Dupret
	 	 	Daniel Dupret, President
	 	 	 
	 	 	 
	 	BUYER
	 	 	 
	 	BIOPHARMA D’AZUR, INC.
	 	 
	 	 	 
	 	By: 	/s/ Matthew Balk
	 	 	Matthew Balk, President

 

    	9THIS AMENDED AND RESTATED COMMON STOCK
PURCHASE WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS PROVIDED HEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED
OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR SUCH OFFER, SALE, TRANSFER,
PLEDGE OR HYPOTHECATION IS PERMITTED UNDER RULE 144 OF THE ACT OR IS OTHERWISE EXEMPT FROM SUCH REGISTRATION.

 

THIS AMENDED AND RESTATED COMMON STOCK
PURCHASE WARRANT IS SUBJECT TO THE TERMS AND CONDITIONS OF AN INVESTMENT AGREEMENT DATED AS OF FEBRUARY 25, 2014, AS AMENDED FROM
TIME TO TIME.

 

AMENDED AND RESTATED COMMON STOCK PURCHASE
WARRANT

 

(COMMERCIAL INCENTIVE)

 

THE MANAGEMENT NETWORK GROUP, INC.

 

	Warrant Shares: 3,400,000	Issue Date: May 8, 2014

 

THIS AMENDED AND RESTATED
COMMON STOCK PURCHASE WARRANT (COMMERCIAL INCENTIVE) (this “Warrant”) is issued in exchange, replacement and
substitution for the Common Stock Purchase Warrant (Commercial Incentive) (the “Original Warrant”) originally
issued by The Management Network Group, Inc., a Delaware corporation (“Company”) to Elutions, Inc., a Delaware
corporation, its successors and permitted assigns (together, “Holder”), on March 18, 2014 (the “Original
Issue Date”). Company certifies that, for value received, Holder is entitled, at any time on or after the Issue Date
specified above (the “Issue Date”) and prior to 5:00 p.m., New York City time, on the sixth (6th) anniversary
of the Original Issue Date (the “Expiration Date”), to purchase from Company up to the number of fully paid
and non-assessable shares (the “Shares”) of Common Stock, par value $0.005 per share, of Company (the “Common
Stock”), specified as Warrant Shares above (the “Warrant Shares”) at the applicable exercise price
per Share set forth in Section 1 of this Warrant (the “Warrant Exercise Price”), in each case subject
to the adjustments and provisions and upon the terms and conditions set forth in this Warrant. The Warrant Exercise Price for Warrant
Shares shall become locked in with respect to the applicable Exercise Price (“Locked In”) as provided in Section
1 and Appendix 1 attached hereto. The Warrant Shares shall vest and become exercisable (“Vested”)
as provided in Section 2 and Appendix 1 attached hereto.

 

This Warrant has been
issued pursuant to an Investment Agreement, dated as of February 25, 2014, between Company and Holder (as amended by Amendment
No. 1 to the Investment Agreement, dated as of May 8, 2014, and as it may be further amended from time to time in accordance with
its terms, the “Investment Agreement”). Each capitalized term used herein and not otherwise defined has the
meaning given to such term in the Investment Agreement.

 

    	 

    	 

    

 

1.           EXERCISE PRICE

 

The Warrant Exercise
Price for each of the Warrant Shares, on a per share basis, shall be as follows, subject to the vesting provisions in Section
2 and Appendix 1 to this Warrant, the exercise requirements set forth in Section 3 of this Warrant, the adjustments
provided for in Section 4 of this Warrant, and all other provisions of this Warrant:

 

(a)           for any Warrant
Shares Locked In or Vested from and after the Original Issue Date through the first anniversary of the Original Issue Date, the
Warrant Exercise Price shall be $3.85 per share;

 

(b)           for any Warrant
Shares Locked In or Vested after the first anniversary of the Original Issue Date through the second anniversary of the Original
Issue Date, the Warrant Exercise Price shall be $4.10 per share;

 

(c)           for any Warrant
Shares Locked In or Vested after the second anniversary of the Original Issue Date through the third anniversary of the Original
Issue Date, the Warrant Exercise Price shall be $4.35 per share;

 

(d)           for any Warrant
Shares Locked In or Vested after the third anniversary of the Original Issue Date through the fourth anniversary of the Original
Issue Date, the Warrant Exercise Price shall be $4.60 per share; and

 

(e)           for any Warrant
Shares Locked In or Vested after the fourth anniversary of the Original Issue Date through the fifth anniversary of the Original
Issue Date, the Warrant Exercise Price shall be $4.85 per share; provided that for the avoidance of doubt this Warrant shall not
be exercisable with respect to Warrant Shares that are not Vested as of the fifth (5th) anniversary of the Original
Issue Date.

 

The applicable Warrant
Exercise Price for any Warrant Shares shall be determined based upon the date that such Warrant Shares become Locked-In or Vested,
as applicable.

 

2.           VESTING

 

(a)           Subject to the
terms and conditions of this Warrant and the Investment Agreement, and notwithstanding any status as Locked In, Warrant Shares
shall not become exercisable unless such Warrant Shares become Vested as provided in Appendix 1.

 

(b)           Anything in this
Warrant to the contrary notwithstanding, this Warrant may not be exercised in whole or in part and no Purchase Rights may be granted
or exercised (i) unless and until the Company has received the Required Approval with respect to the issuance of Warrant Shares
and the other transactions contemplated hereby or (ii) at any time from and after 5:00 p.m., New York City time, on the Expiration
Date. If the Company fails to receive the Required Approval with respect to the issuance of Warrant Shares and the other transactions
contemplated hereby, then this Warrant shall thereafter be void and of no further force and effect.

 

    	2

    	 

    

 

3.           EXERCISE

 

This Warrant shall be exercisable into
shares of Common Stock, on the terms and conditions set forth in this Section 3.

 

3.1           Method of
Exercise. Holder may, subject to the vesting provisions in Section 2 of this Warrant, the adjustments provided for in
Section 4 of this Warrant, and all other provisions of this Warrant, exercise this Warrant in whole or in part to purchase
Warrant Shares that have become Vested for cash by delivering to Company, in accordance with Section 9.2, (a) a duly executed
Notice of Exercise in substantially the form attached as Appendix 2 and (b) the original of this Warrant. Unless Holder
is exercising the conversion right provided for in Section 3.2, Holder shall also deliver to Company a wire transfer of
immediately available funds (to an account designated by Company), or, if Holder desires an alternative method of delivery of the
funds, such other form of payment acceptable to Company, in the amount of the aggregate Warrant Exercise Price for the Warrant
Shares being purchased. With respect to any exercise or conversion of this Warrant, the Holder may not exercise or convert this
Warrant for fewer Warrant Shares than 1,000 Warrant Shares or if less, the full number of Warrant Shares that may then be acquired
upon exercise or conversion of this Warrant.

 

3.2           Cashless
Conversion Right. In lieu of exercising this Warrant to purchase Warrant Shares for cash in accordance with Section 3.1,
Holder may, at its option, exercise this Warrant on a cashless basis for Warrant Shares that become Vested in a fiscal year of
the Company, provided that such cashless exercise occurs not later than 60 days following the end of such fiscal year of the Company
in which such Warrant Shares have Vested, with net conversion based on the Assumed Value per Share. Such cashless conversion shall
be effected without any obligation to pay the Warrant Exercise Price, into that number of Warrant Shares determined by (x) multiplying
the number of Warrant Shares being exercised by (y) the quotient of (1)(A) the Assumed Value of one Share of Common Stock minus
(B) the Warrant Exercise Price of one Warrant Share divided by (2) the Assumed Value of one Share of Common Stock. The Assumed
Value of one Share shall be determined pursuant to Section 3.3. Holder may exercise such conversion right under this Warrant
in whole or in part by delivering to Company, in accordance with Section 9.2, (a) a duly executed Notice of Exercise in
substantially the form attached as Appendix 2 and (b) the original of this Warrant. With respect to any Warrant Shares vesting
in any fiscal year of the Company, to the extent that the Holder fails to exercise such right under this Warrant with respect to
such Warrant Shares on a cashless basis within 60 days following the end of such fiscal year of the Company as provided in this
Section 3.2, Holder shall no longer have the right to exercise such right under this Warrant with respect to such Warrant
Shares on a cashless basis as provided in this Section 3.2, but may otherwise exercise the Warrant thereafter with respect
to such Warrant Shares and pay the exercise price by wire transfer of immediately available funds as provided in this Warrant.
For the avoidance of doubt, the number of Warrant Shares that are Locked In and Vested shall be reduced by the number of such Warrant
Shares being exercised, provided that the maximum number of Shares that may be issued under this Warrant shall be reduced only
by the number of Warrant Shares that are actually issued. For example, if the Assumed Value of one share of Common Stock is $8.20
and the Warrant Exercise Price of one Warrant Share is $4.10, and the Warrant is being exercised with respect to 500,000 Locked
In and Vested Warrant Shares, resulting in the issuance of 250,000 Warrant Shares, then the number of Warrant Shares that are Locked
In and Vested shall be reduced by 500,000 Warrant Shares and the maximum number of Warrant Shares that may be issued under this
Warrant shall be reduced by 250,000 Warrant Shares.

 

    	3

    	 

    

 

3.3           Assumed Value.
For purposes of this Warrant, “Assumed Value” shall mean, with respect to one Share of Common Stock for any
date, the price determined as follows: (a) the 30-day volume weighted average price of the Common Stock (the dollar value of all
Common Stock trading on the applicable Principal Trading Market for the applicable 30-day period, divided by the total trading
volume or the applicable Principal Trading Market, for such 30-day period) for the 30-day period ending on the last day of the
respective fiscal year (subject to proportionate adjustment for stock splits, subdivisions and combinations of shares and similar
events affecting the Common Stock), or (b) if the Common Stock is not so listed or quoted, as reasonably determined by the Company
Board and Holder; provided, that if the Company Board and Holder cannot determine the price of one Share of Common Stock, then
such price shall be determined in the same manner as determination of a Closing Price pursuant to Section 6.11 of the Investment
Agreement.

 

3.4           Delivery
of Certificate and New Warrant. On or before 4:00 p.m., New York City time, on the third Business Day following the date of
receipt or transmittal of an Exercise Notice and, to the extent applicable, the aggregate Warrant Exercise Price and receipt by
Company of this Warrant, Company shall issue and deliver to the address as specified in the Exercise Notice (if given by Holder,
otherwise to the address of Holder as set forth in Company’s records), a certificate, registered in the name of Holder or
its designee, for the number of Shares to which Holder shall be entitled together with cash for any fractional interest. Company
shall, as soon as reasonably practicable and in no event later than three Business Days after receipt of this Warrant and the other
items above and at its own expense, issue and deliver to Holder a new Warrant, substantially identical hereto, representing the
outstanding Warrant Shares not exercised.

 

3.5           Reservation
of Shares Issuable upon Exercise. Company shall reserve and keep available out of its authorized but unissued Common Stock,
solely for the purpose of effecting the exercise of this Warrant, such number of Shares as shall from time to time be sufficient
to effect the exercise of all of the Warrant Shares; and if at any time the number of Shares shall not be sufficient to effect
the exercise of all of the Warrant Shares, in addition to such other remedies as shall be available to the Holder, Company shall
take such action as may be necessary to increase its authorized but unissued Common Stock to such number of shares as shall be
sufficient for such purposes.

 

4.           ADJUSTMENTS
TO THE SHARES. The applicable Warrant Exercise Price and the number of Warrant Shares obtainable
upon exercise of this Warrant shall each be subject to adjustment from time to time as provided in this Section 4.

 

    	4

    	 

    

 

4.1           Stock Dividends,
Splits, Etc. If, at any time while this Warrant is outstanding, Company declares or pays a dividend or other distribution on
the outstanding shares of the Common Stock payable in additional shares of the Common Stock or other securities (including rights
to acquire securities), then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without cost to Holder,
the total number of shares of Common Stock or the total number and kind of other securities, as applicable, to which Holder would
have been entitled had Holder held such Shares as of the date on which a record is taken for such dividend or other distribution.
If Company subdivides the outstanding shares of the Common Stock by reclassification or otherwise into a greater number of shares,
the number of Shares purchasable hereunder shall be proportionately increased and the Warrant Exercise Price shall be proportionately
decreased as of the date on which a record is taken for such subdivision. If the outstanding shares of the Common Stock are combined
or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Exercise Price shall be proportionately
increased and the number of Shares purchasable hereunder shall be proportionately decreased as of the date on which a record is
taken for such combination or consolidation.

 

4.2           Reorganization,
Reclassification, Exchange, Conversion or Substitution. Upon any reorganization, reclassification (other than a subdivision,
combination or consolidation referred to in Section 4.1), exchange, conversion, substitution, merger, sale of all or substantially
all of the Company’s assets followed by a liquidation of Company or similar event affecting the outstanding shares of the
Common Stock at any time while this Warrant is outstanding (“Reorganization Event”), Holder shall be entitled
to receive (either directly or upon subsequent liquidation), upon exercise or conversion of this Warrant, the number and kind of
securities and property that Holder would have received for the Shares if this Warrant had been exercised in full immediately before
such Reorganization Event, at an aggregate Warrant Exercise Price not exceeding the aggregate Warrant Exercise Price in effect
as of immediately prior thereto. The provisions of this Section 4.2 shall similarly apply to successive Reorganization Events.
Notwithstanding anything to the contrary contained herein, with respect to any Reorganization Event, the Holder may elect prior
to the record date or consummation date (if there is no record date) of such Reorganization Event to exercise this Warrant in whole
or in part to the extent then exercisable instead of giving effect to the provisions contained in this Section 4.2 with
respect to this Warrant.

 

4.3           Distributions.
If Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock evidences of its indebtedness
or other assets (excluding (a) evidences of indebtedness and other assets referred to in Section 4.1 or Section 4.2
above or Section 4.8, and (b) dividends or distributions paid in cash), then in each such case the Warrant Exercise Price
shall be adjusted by multiplying the Warrant Exercise Price in effect immediately prior to the record date fixed for determination
of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the Closing Price determined
as of the record date mentioned above and of which the numerator shall be the Closing Price on such record date less the then per
share fair market value at such record date of the portion of such evidences of indebtedness or assets so distributed with respect
to one outstanding share of Common Stock. The net amount of any fair market value of any consideration other than cash or marketable
securities shall be determined in good faith jointly by the Company Board and the Holder; provided, however, that if such net amount
of fair market value received cannot be determined by the Company Board and Holder, then such net amount of fair market value received
shall be determined in the same manner as determination of a Closing Price pursuant to Section 6.11 of the Investment Agreement.

 

    	5

    	 

    

 

4.4           Fractional
Shares. No fractional Share shall be issuable upon exercise of this Warrant and the number of Shares to be issued shall be
rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise of this Warrant, Company shall
eliminate such fractional share interest by paying Holder cash in the amount computed by multiplying the fractional interest by
the Closing Price of a full Share on the date of exercise.

 

4.5           Certificate
as to Adjustments. Upon each adjustment of the Warrant Exercise Price, the Common Stock and/or number of Shares, or upon the
occurrence of any transaction or event described in this Section 4 (including, without limitation, the grant of new securities
or other property issuable upon exercise or conversion of this Warrant as a result of a Reorganization Event), Company shall promptly
notify Holder thereof in writing, and, at Company’s expense, promptly compute such adjustment, and furnish Holder with a
certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based. In
addition, Company shall promptly, following any such adjustment, furnish Holder a certificate setting forth the Warrant Exercise
Price, Common Stock and number of Shares in effect upon the date thereof and the series of adjustments leading to such Warrant
Exercise Price, Common Stock and number of Shares.

 

4.6           Additional
Anti-Dilution Rights. In order to prevent dilution of the purchase rights granted under this Warrant, the Warrant Exercise
Price and the number of Warrant Shares issuable upon exercise of this Warrant shall also be subject to adjustment from time to
time as provided in this Section 4.6.

 

(a)           Adjustment
to Warrant Exercise Price Upon Issuance of Common Stock. Except as provided in Section 4.6(d) and except in the case
of an event described in Section 4.1, Section 4.2, or Section 4.3, if the Company shall, at any time or from
time to time after the Original Issue Date, issue or sell any shares of Common Stock (except as a result of the exercise or conversion
of any outstanding Options and/or Convertible Securities not prohibited from being outstanding by the Investment Agreement) without
consideration or for consideration per share less than the Market Price in effect immediately prior to such issuance or sale, then
immediately upon such issuance or sale, the Warrant Exercise Price in effect immediately prior to such issuance or sale shall be
reduced (and in no event increased) to a Warrant Exercise Price equal to the product obtained by multiplying the Warrant Exercise
Price by a fraction:

 

(i)           the numerator
of which shall be the sum of (A) the number of shares of Common Stock Deemed Outstanding immediately prior to such issuance or
sale plus (B) the aggregate number of shares of Common Stock which the aggregate amount of consideration, if any, received by the
Company upon such issuance or sale would purchase at the Market Price; and

 

(ii)           the denominator
of which shall be the number of shares of Common Stock Deemed Outstanding immediately after such issuance or sale.

 

    	6

    	 

    

 

For purposes of this
Warrant, “Market Price” shall mean, with respect to one Share of Common Stock for any date, the price determined
as follows: (a) the 30-day volume weighted average price of the Common Stock (determined by dividing the dollar value of all Common
Stock trading on the applicable Principal Trading Market for the applicable 30-day period, by the total trading volume on the applicable
Principal Trading Market, for such 30-day period) for the 30-day period ending on the date of determination (subject to proportionate
adjustment for stock splits, subdivisions and combinations of shares and similar events affecting the Common Stock), or (b) if
the Common Stock is not so listed or quoted, as reasonably determined by the Company Board and Holder; provided, that if the Company
Board and Holder cannot determine the Market Price of one Share of Common Stock, then such Market Price shall be determined in
the same manner as determination of a Closing Price pursuant to Section 6.11 of the Investment Agreement.

 

For purposes of determining
the adjusted Warrant Exercise Price under this Section 4.6(a), if the Company shall, at any time or from time to time after
the Original Issue Date, issue or sell any shares of Common Stock: (A) for consideration other than cash, the amount of the consideration
other than cash received by the Company shall be the fair market value of such consideration, except where such consideration consists
of marketable securities, in which case the amount of consideration received by the Company shall be the closing price (as reflected
on any securities exchange, quotation system or association or similar pricing system covering such security) for such securities
as of the end of business on the date of receipt of such securities; (B) for no specifically allocated consideration in connection
with an issuance or sale of other securities of the Company, together comprising one integrated transaction, the amount of the
consideration therefor shall be deemed to be the fair market value of such portion of the aggregate consideration received by the
Company in such transaction as is attributable to such shares of Common Stock issued in such transaction; or (C) to the owners
of the non-surviving entity in connection with any merger in which the Company is the surviving corporation, the amount of consideration
therefor shall be deemed to be the fair market value of such portion of the net assets and business of the non-surviving entity
as is attributable to such shares of Common Stock issued to such owners. The net amount of any consideration and the fair market
value of any consideration other than cash or marketable securities shall be determined in good faith jointly by the Company Board
and the Holder; provided, however, that if such net amount of cash consideration and/or fair market value received cannot be determined
by the Company Board and Holder, then such net amount of consideration and/or fair market value received shall be determined in
the same manner as determination of a Closing Price pursuant to Section 6.11 of the Investment Agreement.

 

(b)           Adjustment
to Number of Warrant Shares Upon Adjustment to Warrant Exercise Price. Upon any and each adjustment of the Warrant Exercise
Price as provided in Section 4.6(a), the number of Warrant Shares issuable upon the exercise of this Warrant immediately
prior to any such adjustment shall be increased to a number of Warrant Shares equal to the quotient obtained by dividing:

 

(i)           the product
of (A) the Warrant Exercise Price in effect immediately prior to any such adjustment multiplied by (B) the number of Warrant Shares
issuable upon exercise of this Warrant immediately prior to any such adjustment; by

 

    	7

    	 

    

 

(ii)           the Warrant
Exercise Price resulting from such adjustment.

 

(c)           Certain Events.
If any event of the type contemplated by the provisions of this Section 4 but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features)
occurs, then the Company Board shall make an appropriate adjustment in the Warrant Exercise Price and the number of Warrant Shares
issuable upon exercise of this Warrant so as to protect the rights of the Holder in a manner consistent with the provisions of
this Section 4; provided, that no such adjustment pursuant to this Section 4.6(c) shall increase the Warrant Exercise
Price or decrease the number of Warrant Shares issuable as otherwise determined pursuant to this Section 4. In addition,
the Company will not, by amendment of its Certificate of Incorporation or Bylaws or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such
terms and conditions and in the taking of all such action as may be necessary or appropriate in order to protect the rights of
the Holder against impairment.

 

(d)           Exceptions
To Adjustment Upon Issuance of Common Stock. Anything herein to the contrary notwithstanding, there shall be no adjustment
to the Warrant Exercise Price or the number of Warrant Shares issuable upon exercise of this Warrant with respect to any Excluded
Issuance.

 

4.7           Notices.
In the event:

 

(a)           that the Company
shall take a record of the holders of its Common Stock (or other capital stock or securities at the time issuable upon exercise
of the Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, to receive any right
to subscribe for or purchase any shares of capital stock of any class or any other securities, or to receive any other security;

 

(b)           of any Reorganization
Event;

 

(c)           of the voluntary
or involuntary dissolution, liquidation or winding-up of the Company; or

 

(d)           that any other
event occurs that would result in any adjustment to the Warrant Exercise Price or the number of Warrant Shares issuable to Holder
pursuant to this Section 4;

 

then, and in each such case, the Company
shall send or cause to be sent to the Holder on the earlier of (i) at least 10 days prior to the applicable record date or the
applicable expected effective date, as the case may be, for such event and (ii) the date upon which the Company sends such written
notice to the other holders of Common Stock (or other capital stock or securities at the time issuable upon exercise of the Warrant)
of such event, a written notice specifying, as the case may be, (A) the record date for such dividend, distribution, or other right
or action, and a description of such dividend, distribution or other right, along with copies of all relevant materials related
to such event (including, without limitation, any indentures related to indebtedness distributed to stockholders), or (B) the effective
date on which such Reorganization Event, sale, dissolution, liquidation or winding-up is proposed to take place, and the date,
if any is to be fixed, as of which the books of the Company shall close or a record shall be taken with respect to which the holders
of record of Common Stock (or such other Capital Stock or securities at the time issuable upon exercise of the Warrant) shall be
entitled to exchange their shares of Common Stock (or such other Capital Stock or securities) for securities or other property
deliverable upon such Reorganization Event, sale, dissolution, liquidation or winding-up, and the amount per share and character
of such exchange applicable to the Warrant and the Warrant Shares (including, without limitation, the number, class and series
or other designation of such new securities or other property issuable upon exercise or conversion of this Warrant as a result
of such Reorganization Event).

 

    	8

    	 

    

 

4.8           Purchase
Rights. Without duplicating any purchase rights granted under the Investment Agreement or any other warrant or other instrument,
in addition to any adjustments pursuant to this Section 4, if at any time the Company grants or issues or sells any Options
or rights to purchase stock, warrants, securities or other property pro rata to the record holders of Common Stock (the “Purchase
Rights”), then the Holder shall be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate
Purchase Rights which the Holder would have acquired if the Holder had held the number of Warrant Shares acquirable upon complete
exercise of this Warrant immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase
Rights, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant,
issue or sale of such Purchase Rights. Anything herein to the contrary notwithstanding, the Holder shall not be entitled to the
Purchase Rights granted herein with respect to any Excluded Issuances.

 

5.           CERTAIN AGREEMENTS

 

Company hereby covenants and agrees as
follows:

 

5.1           Shares to
be Fully Paid. All Warrant Shares shall, upon issuance in accordance with the terms of this Warrant, be duly and validly issued,
fully paid and non-assessable, free and clear of all Liens. Upon delivery to the Holder of the Warrant Shares, good and valid title
to the Warrant Shares shall pass to the Holder free and clear of all Liens.

 

5.2           Reservation
of Shares. Until the Expiration Date, Company shall at all times reserve and keep available out of its authorized but unissued
Common Stock, solely for the purpose of effecting the full exercise of this Warrant, such number of Shares as shall from time to
time be sufficient to effect the exercise with respect to all of the Warrant Shares that may be received pursuant to this Warrant;
and if at any time the number of Shares shall not be sufficient to effect the full exercise of this Warrant, in addition to such
other remedies as shall be available to the Holder, Company shall take such action as may be necessary to increase its authorized
but unissued Common Stock to such number of shares as shall be sufficient for such purposes.

 

5.3           Successors
and Assigns. This Warrant shall be binding upon any entity succeeding to Company by merger, consolidation, or acquisition of
all or substantially all Company’s assets or all or substantially all of Company’s outstanding capital stock or otherwise.

 

5.4           No Rights
as a Stockholder. Except as otherwise provided in this Warrant, the Holder of this Warrant shall not be deemed the holder of
Shares for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, as such, any of the
rights of a stockholder of Company or any right to vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, or to give or withhold consent to any Company action (whether upon a merger, conveyance or otherwise) or
to receive notice of meetings, or to receive dividends or subscription rights or otherwise until this Warrant shall have been exercised
or converted and the Shares issuable upon the exercise or conversion hereof shall have been issued as provided herein.

 

    	9

    	 

    

 

6.           TRANSFER AND
REPLACEMENT OF WARRANT

 

6.1           Restriction
on Transfer. Neither this Warrant nor the Warrant Shares to be received upon exercise or conversion of this Warrant have been
registered under the Securities Act or under the securities Laws of any state and Company shall have no obligation to register
the resale of this Warrant or the Warrant Shares under the Securities Act or under the securities Laws of any state, except in
the case of the Warrant Shares to the extent provided in the Registration Rights Agreement. In addition to the restrictions set
forth below, this Warrant and the Warrant Shares may not be transferred (a) if such action would constitute a violation of any
federal or state securities Laws or a breach of the conditions to any exemption from registration thereunder (including a loss
of the exemptions under the Securities Act, or applicable state securities Laws) on which Company relied in connection with the
issuance of this Warrant and any Warrant Shares upon exercise or conversion thereof and (b) unless and until one of the following
has occurred: (i) registration of the resale of this Warrant and/or Warrant Shares, as the case may be, under the Act, and such
registration or qualification as may be necessary under the securities laws of any state, has become effective, or (ii) the Holder
has delivered to Company an opinion of counsel reasonably satisfactory to Company that such registration or qualification is not
required and such action will not constitute a breach of the conditions to any exemption from registration thereunder (including
a loss of the exemptions under the Act, or applicable state securities laws) on which Company relied in issuing this Warrant and
any Warrant Shares upon exercise or conversion thereof. In addition to the foregoing restrictions, this Warrant is subject to the
restrictions set forth in the Investment Agreement and neither this Warrant nor any interest herein may be assigned, pledged, sold
or otherwise transferred without the prior written consent of Company in its sole discretion. Any purported assignment prohibited
by the Investment Agreement or this Warrant shall be void.

 

6.2           Stock Legend.
All Shares issued upon exercise or conversion in whole or in part of this Warrant shall have stamped or imprinted thereron a legend
to the following effect:

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS
OF ANY STATE AND, EXCEPT AS PROVIDED HEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS
AND UNTIL REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR SUCH OFFER, SALE, TRANSFER, PLEDGE OR HYPOTHECATION
IS PERMITTED UNDER RULE 144 OF THE ACT OR IS OTHERWISE EXEMPT FROM SUCH REGISTRATION. THE SECURITIES ARE ALSO SUBJECT TO THE TERMS
AND CONDITIONS OF AN INVESTMENT AGREEMENT DATED AS OF FEBRUARY 25, 2014, AS AMENDED FROM TIME TO TIME.

 

    	10

    	 

    

 

6.3           Replacement
of Warrant. Upon receipt of evidence reasonably satisfactory to Company of the loss, theft, destruction or mutilation of this
Warrant and, in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement and bond reasonably satisfactory
in form and amount to Company, or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, Company,
at its expense, shall execute and deliver, in lieu thereof, a new Warrant of like tenor.

 

6.4           Cancellation.
Upon the surrender of this Warrant in connection with any transfer, exchange or replacement, this Warrant shall be promptly canceled
by Company. The Original Warrant is hereby canceled.

 

6.5           Register.
Company shall maintain, at its principal executive offices (or such other office or agency of Company as it may designated by notice
to Holder), a register for this Warrant, in which Company shall record the name and address of the Person in whose name this Warrant
has been issued, as well as the name and address of each transferee and each prior owner of this Warrant.

 

7.           REGISTRATION
RIGHTS

 

The shares of Common Stock issuable upon
exercise or conversion of this Warrant shall be “Registrable Common Shares” under that certain Registration Rights
Agreement, dated as of March 18, 2014, by and between Company and Holder.

 

8.           [Intentionally
Omitted]

 

9.           MISCELLANEOUS

 

9.1           Term.
This Warrant is exercisable or convertible in whole or in part at any time and from time to time on or before the Expiration Date.

 

9.2           Notices.
All notices, demands, requests, consents or other communications to be given or delivered under or by reason of the provisions
of this Warrant shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (a) personal delivery
to the party to be notified, or (b) one (1) Business Day after deposit with a nationally recognized overnight courier, freight
prepaid, specifying next business day delivery, with written verification of delivery. If any time period for giving notice or
taking action hereunder expires on a day that is not a Business Day, the time period shall automatically be extended to the Business
Day immediately following such day. Such notices, demands, requests, consents and other communications shall be sent to the following
Persons at the following addresses.

 

    	11

    	 

    

 

if to Company, to:

 

The Management Network Group

7300 College Boulevard, Suite 302

Overland Park, KS 66210

Attention: CEO/President and General
Counsel

 

if to Holder, to:

 

Elutions, Inc.

601 East Twiggs Street

Tampa, Florida 33602

Attention: Chairman/CEO and General
Counsel

 

or to such other address or to the attention
of such other person as the recipient party has specified by prior written notice to the sending party.

 

9.3           Waivers.
The rights and remedies provided for herein are cumulative and not exclusive of any right or remedy that may be available to Holder
whether at law, in equity, or otherwise. No delay, forbearance, or neglect by Holder, whether in one or more instances, in the
exercise of any right, power, privilege, or remedy hereunder or in the enforcement of any term or condition of this Warrant shall
constitute or be construed as a waiver thereof. No waiver of any provision hereof, or consent required hereunder, or any consent
or departure from this Warrant, shall be valid or binding unless expressly and affirmatively made in writing and duly executed
by Holder. No waiver shall constitute or be construed as a continuing waiver or a waiver in respect of any subsequent breach, either
of similar or different nature, unless expressly so stated in such writing.

 

9.4           Specific
Enforcement. The parties hereto agree that irreparable damage will occur in the event that any of the provisions of this Warrant
are not performed in accordance with their specific intent or were otherwise breached. It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Warrant and to enforce
specifically the terms and provisions hereof, in addition to any other remedy to which they may be entitled by law or equity. The
parties hereto agree not to resist such application for relief on the basis that the non-breaching party has an adequate remedy
at law and agree to waive any requirement for securing or posting of any bond in connection with such remedy.

 

9.5           Counterparts.
This Warrant may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more
than one party, but all such counterparts taken together shall constitute one and the same Warrant. Counterparts may be delivered
via facsimile, electronic mail (including pdf) or other transmission method and any counterpart so delivered shall be deemed to
have been duly and validly delivered and be valid and effective for all purposes.

 

    	12

    	 

    

 

9.6           Governing
Law. This Warrant shall be governed by and construed in accordance with the laws of the State of New York, without giving effect
to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of New York. Notwithstanding the foregoing, the fiduciary
duties of the Company Board, the validity of any corporate action on the part of the Company, and any other matters relating to
the internal corporate affairs of the Company, shall be interpreted, construed and governed by and in accordance with the laws
of the State of Delaware, without regard to the conflicts of laws rules thereof

 

9.7           Exclusive
Jurisdiction; Venue.  Each of the parties hereto irrevocably agrees that any legal action or proceeding with respect to this
Warrant and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this
Warrant and the rights and obligations arising hereunder brought by the other party hereto or its successors or assigns, shall
be brought and determined exclusively in the any New York State court sitting in the County of New York, the State of New York
or the United States District Court for the Southern District of New York, and, in each case, any appellate court therefrom. Each
of the parties hereto hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its
property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring
any action relating to this Warrant or any of the transactions contemplated by this Warrant in any court other than the aforesaid
courts. Each of the parties hereto hereby irrevocably waives, and agrees not to assert as a defense, counterclaim or otherwise,
in any action or proceeding with respect to this Warrant, (a) any claim that it is not personally subject to the jurisdiction of
the above named courts for any reason other than the failure to serve in accordance with this Section 9.7, (b) any claim
that it or its property is exempt or immune from the jurisdiction of any such court or from any legal process commenced in such
courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution
of judgment or otherwise) and (c) to the fullest extent permitted by the applicable Law, any claim that (i) the suit, action or
proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or
(iii) this Warrant, or the subject matter hereof, may not be enforced in or by such courts. Each of the parties hereto agrees that
service of process upon such party in any such action or proceeding shall be effective if such process is given as a notice in
accordance with Section 9.2. Each of the parties agrees that the final judgment of any such court shall be enforceable
in any court having jurisdiction over the relevant party or any of its assets.

 

9.8           Waiver of
Jury Trial. EACH OF THE PARTIES TO THIS WARRANT HEREBY IRREVOCABLY WAIVES TO THE EXTENT PERMITTED BY APPLICABLE LAW ANY AND
ALL RIGHT TO A TRIAL BY JURY IN ANY DIRECT OR INDIRECT ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS WARRANT
OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY ( A ) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER, ( B ) MAKES THIS WAIVER VOLUNTARILY, AND ( C ) ACKNOWLEDGES THAT EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS WARRANT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS CONTAINED IN THIS SECTION 9.8.

 

    	13

    	 

    

 

9.9           Successors
and Assigns. Except as set forth in Section 6.1, this Warrant and the rights and obligations hereunder shall not be
assigned, delegated, or otherwise transferred (whether by operation of law, by contract, or otherwise) without the prior written
consent of the other party hereto. Any attempted assignment, delegation, or transfer in violation of this Section 9.9 shall
be void and of no force or effect.

 

9.10           Amendment.
This Warrant may be amended, modified, or supplemented only pursuant to a written instrument making specific reference to this
Warrant and signed by Company and Holder.

 

9.11           Severability.
Whenever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant is held to be invalid or unenforceable in any respect, such invalidity or unenforceability
shall not render invalid or unenforceable any other provision of this Warrant.

 

9.12           Descriptive
Headings; No Strict Construction. The descriptive headings of this Warrant are inserted for convenience only and do not constitute
a substantive part of this Warrant. The parties to this Warrant have participated jointly in the negotiation and drafting of this
Warrant. If an ambiguity or question of intent or interpretation arises, this Warrant shall be construed as if drafted jointly
by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this Warrant. The parties agree that prior drafts of this Warrant shall be deemed not to provide any
evidence as to the meaning of any provision hereof or the intention of the parties hereto with respect to this Warrant.

 

9.13           Blackout
Periods. If, due to any “blackout period” or other similar restriction on the purchase of Securities imposed by
the Company, Holder is prevented from exercising any of its rights hereunder (including, without limitation, exercising the Warrant
and purchasing Warrant Shares), then the Expiration Date shall be extended such number of days equal to the time period in which
such “blackout period” or other similar restriction restricted Holder from exercising such rights. If any additional
rights are afforded to any Persons subject to any such “blackout periods” or other similar restriction (including,
without limitation, any notice rights), then Holder shall be afforded such additional rights.

 

9.14           Definitions.

 

“Common Stock
Deemed Outstanding” means, at any given time, the sum of (a) the number of shares of Common Stock actually outstanding
at such time, plus (b) the number of shares of Common Stock issuable upon exercise of Options actually outstanding at such time,
plus (c) the number of shares of Common Stock issuable upon conversion or exchange of Convertible Securities actually outstanding
at such time (treating as actually outstanding any Convertible Securities issuable upon exercise of Options actually outstanding
at such time), in each case, regardless of whether the Options or Convertible Securities are actually exercisable at such time;
provided, that Common Stock Deemed Outstanding at any given time shall not include shares owned or held by or for the account of
the Company or any of its wholly owned Subsidiaries.

 

    	14

    	 

    

 

“Convertible
Securities” means any securities (directly or indirectly) convertible into or exchangeable for Common Stock whether upon
issuance or at a later date or upon satisfaction of any conditions or contingencies, but excluding Options.

 

“Excluded
Issuances” means any issuance or sale by Company after the Issue Date of shares of Common Stock (including, without limitation,
the granting of stock appreciation rights, phantom stock rights or other rights with equity features), Options or Convertible Securities:
(a) pursuant to this Warrant or any warrants, instruments or agreements entered into pursuant the Investment Agreement; (b) to
directors, officers, employees, or consultants of Company and its subsidiaries in connection with their service as directors, employees
or consultants of such entities as approved by the Company Board; (c) pursuant to the conversion or exercise of Options or Convertible
Securities issued prior to the Issue Date, provided that such securities are not amended after the date hereof to increase the
number of shares of Common Stock issuable thereunder or to lower the exercise or conversion price thereof; (d) pursuant to the
Amended and Restated Rights Agreement, except to the extent that such agreement is triggered upon any Person other than a member
of the Elutions Group (as defined in the Amendment to Rights Agreement) becoming an Acquiring Person under the Amended and Restated
Rights Agreement; (e) pursuant to a strategic partner in a primarily non-financing transaction as approved by the Company Board;
or (f) in connection with debt financings, equipment financings or similar transactions approved by the Company Board.

 

“Options”
means any warrants or other rights or options to subscribe for or purchase Common Stock or Convertible Securities.

 

[signature page follows]

 

    	15

    	 

    

 

IN WITNESS WHEREOF,
the parties have duly executed and delivered this Warrant by their duly authorized representatives as of the date first above written.

 

	 	COMPANY:
	 	 	 	 	 
	 	THE MANAGEMENT NETWORK GROUP, INC.
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Donald E. Klumb	 
	 	 	Name:	Donald E. Klumb	 
	 	 	Title:	Chief Executive Officer, President and Chief Financial Officer	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	HOLDER:
	 	 	 	 	 
	 	ELUTIONS, INC.
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Benjamin Kaiser	 
	 	 	Name:	Benjamin Kaiser	 
	 	 	Title:	Chief Risk Officer	 

 

 

 

 

 

 

 

[Signature Page to Warrant (Commercial
Incentive)]

    	 

    	 

    

 

APPENDIX 1

 

Vesting Provisions:

 

For purposes of this Warrant and this Appendix
1, the following terms shall have the following meanings:

 

“Applicable Contract”
means any Booked Order received from, and related Client Statement of Work with, a third-party client (which shall include agreements
with a third-party financier) entered into by Company or an Affiliate of Company with respect to such Booked Order and related
Client Statement of Work.

 

“Applicable Contract
Lock In Credit” means the Exercise Price for Warrant Shares becomes Locked In based upon monies received or to be received
by Company and/or an Affiliate of Company over the term of Applicable Contracts. Applicable Contract Lock In Credit shall be determined
on the effective date of the Applicable Contract.

 

“Applicable Contract
Vesting Credit” means vesting credit for Warrant Shares based upon either: (1) recognized revenues by Company and/or
an Affiliate of Company under GAAP in an Applicable Fiscal Quarter under Applicable Contracts (“Revenue Vesting Credit”);
or (2) monies received by Company and/or an Affiliate of Company that is attributable to Substantially Completed Installation/Deployment
under prime contracts of Company in connection with Applicable Contracts in an Applicable Fiscal Quarter and for which the Company
will recognize the revenues associated with such monies under GAAP in a future fiscal quarter (“Cash Vesting Credit”).
Cash Vesting Credit shall be granted upon Substantial Completion of Installation/Deployment; provided, however, that, if the installation/deployment
involves multiple client sites, then Cash Vesting Credit shall be granted on a pro rata basis upon Substantial Completion of Installation/Deployment
for each client site. Company and Holder shall agree in writing as to the applicable Cash Vesting Credit to be granted with respect
to monies to be received pursuant to an Applicable Contract prior to their or their Affiliates entering into such Applicable Contract.
Cash Vesting Credit shall be granted no later than the 365th day following receipt by Company and/or its Affiliate(s)
of any monies under an Applicable Contract for which the recognition of such monies as revenue is not dependent on Substantially
Completed Installation/Deployment. For the avoidance of doubt, Applicable Contract Vesting Credit shall be granted in accordance
with the foregoing notwithstanding that monies may have been received by Company or an Affiliate of Company in the past with respect
to related Applicable Contracts. Applicable Contract Vesting Credit with respect to any Applicable Contracts shall be awarded one
time and without double-counting upon the earliest event to occur that results in Revenue Vesting Credit or Cash Vesting Credit
with respect to such Applicable Contracts. For the avoidance of doubt, once Cash Vesting Credit is awarded, associated revenue
recognition relating to the same monies will not result in duplicative Revenue Vesting Credit.

 

“Applicable Fiscal Quarter”
means each fiscal quarter of the Company ending after the Original Issue Date and before the Expiration Date (or partial fiscal
quarter for the fiscal quarter in which the Original Issue Date or the Expiration Date occurs, where the first Applicable Fiscal
Quarter determined hereunder shall mean the first fiscal quarter or partial fiscal quarter of the Company ending after the Effective
Date of the Investment Agreement).

 

    	 

    	 

    

 

“Applicable Warrant
Shares” means, for an Applicable Fiscal Quarter, the number of Warrant Shares for which Applicable Contract Lock In Credit
is granted, which shall be determined by dividing the aggregate Applicable Contract Lock In Credit earned in such Applicable Fiscal
Quarter (i.e., monies received or to be received by Company and/or an Affiliate of Company over the term of Applicable Contracts
that become effective in such Applicable Fiscal Quarter) by $85,000,000, and then multiplying such resulting percentage by 3,400,000.
For example, if the aggregate Applicable Contract Lock In Credit earned in an Applicable Fiscal Quarter is $10,000,000, then the
Applicable Warrant Shares resulting from such Applicable Contract Lock In Credit will be 400,000 Applicable Warrant Shares. Any
computation of Applicable Warrant Shares shall not increase the number of Warrant Shares as otherwise provided for in this Warrant.

 

“Change in Control
Vesting Credit” means vesting credit for Warrant Shares based upon a Change in Control of the Company.

 

“Substantial Completion
of Installation/Deployment” occurs when substantially all of the equipment to be installed or deployed pursuant to a
Client Statement of Work is placed and mounted in client facilities (or other location, as required by the Client Statement of
Work) and data from such equipment is populated in the Maestro database.

 

“Vesting Formula”
means the following formula:

 

		(a)	Applicable Contract Vesting Credit earned for an Applicable Fiscal Quarter, multiplied by the

 

		(b)	Vesting Percentage.

 

“Vesting Percentage”
means four percent (4%).

 

The Exercise Price for Applicable Warrant
Shares shall be determined and Locked In based upon Applicable Contract Lock In Credit for an Applicable Fiscal Quarter.

 

Notwithstanding any status as Locked In,
Warrant Shares shall only become Vested pursuant to the application of the Vesting Formula and/or the creation of Change in Control
Vesting Credit on a first Locked In, first Vested basis, provided further, however, that any Warrant Shares that have become Locked
In but have not yet become Vested prior to the fifth (5th) anniversary of the Original Issue Date shall be deemed Vested
as of the fifth (5th) anniversary of the Original Issue Date. For example in regard to the first Locked In, first Vested
basis, if 100 Warrant Shares are Locked In prior to the first anniversary of the Original Issue Date pursuant to Applicable Contract
“A” and 100 Warrant Shares are Locked In between the first anniversary and the second anniversary of the Original Issue
Date pursuant to Applicable Contract “B”, then any Applicable Contract Vesting Credit granted shall be applied (i)
first to the first Warrant Shares that have been Locked In (that is, the Warrant Shares Locked In pursuant to Applicable Contract
“A”), whether or not the Applicable Contract Vesting Credit was first granted pursuant to Applicable Contract “A”
or Applicable Contract “B”, and (ii) then to the Warrant Shares Locked In next in time (that is, the Warrant Shares
Locked In pursuant to Applicable Contract “B”) and any remaining Applicable Contract Vesting Credit not granted to
any Locked In Warrant Shares shall remain available to be applied to any future Locked In Warrant Shares.

 

    	 

    	 

    

 

Upon a Change in Control of the Company,
all Applicable Contract Lock In Credit that has not become Applicable Contract Vesting Credit shall then be deemed to be Applicable
Contract Vesting Credit. Change in Control Vesting Credit shall be awarded one time and not cumulatively with respect to any Applicable
Contract Vesting Credit. For the avoidance of doubt, once Change in Control Vesting Credit is awarded, any Warrant Shares that
are Locked In and deemed Vested based upon Change in Control Vesting Credit will not result in duplicative Applicable Contract
Vesting Credit.

 

The number of Warrant Shares that become
Vested and exercisable for an Applicable Fiscal Quarter shall be based upon Change in Control Vesting Credit and the application
of the Vesting Formula for such Applicable Fiscal Quarter, subject in each case to the limit on the total number of Warrant Shares
that may be issued under this Warrant but without prejudice to Holder’s right to acquire Warrant Shares to be applied to
cashless conversion as set forth below. For example, if the Applicable Contract Vesting Credit for an Applicable Fiscal Quarter
is $10,000,000, then the number of Warrant Shares that Vest for such Applicable Fiscal Quarter shall equal (10,000,000 x .04) or
400,000 Warrant Shares. For the avoidance of doubt, (i) each Applicable Contract Lock In Credit shall be counted only once for
purposes of determining the Exercise Price and Locked In status of Warrant Shares and Applicable Contract Vesting Credit and (ii)
the Change in Control Vesting Credit shall be counted only once for purposes of determining the Vested status of Warrant Shares.

 

Within ten (10) Business Days following
the date of Company’s public disclosure of its earnings for an Applicable Fiscal Quarter, but in no event later than forty-five
(45) days following the last day of an Applicable Fiscal Quarter, Company shall deliver to Holder written notice of the Applicable
Contract Lock In Credit and Applicable Contract Vesting Credit for such Applicable Fiscal Quarter, together with confirmation of
the number of Warrant Shares that are subject to a particular Exercise Price based upon Applicable Contract Lock In Credit and
the number of Warrant Shares that have Vested and become exercisable as a result of Applicable Contract Vesting Credit (an “Incentive
Warrant Notice”). Any failure by Holder to object to Company’s calculations in the Incentive Warrant Notice shall
not be deemed a waiver by Holder of any of Holder’s rights hereunder, including, without limitation, the right to object
to such calculation and demand an accounting thereof or exercise any rights afforded to Holder hereunder, under the Investment
Agreement or Transaction Documents or enforce its rights at law or in equity. Applicable Contract Vesting Credit included in the
vesting computation for an Applicable Fiscal Quarter shall not be included in the vesting computation for any subsequent Applicable
Fiscal Quarter.

 

    	 

    	 

    

 

After taking into account the adjustments
set forth in Section 4 of this Warrant and any additional Warrant Shares that may then be used to cashlessly exercise this
Warrant pursuant to Section 3.2 of the Warrant, in no event shall Warrant Shares vest and become exercisable in an amount
greater than that number of Warrant Shares, when combined with the Purchased Shares and other shares of Common Stock acquired by
members of the Elutions Group and the shares of Common Stock then currently issuable and/or issued under the Warrants (Tracking),
that would result in such Persons owning, or having the right to own, in excess of 38.5% of the issued and outstanding Common Stock
(the “Ownership Cap”). For the avoidance of doubt, Warrant Shares shall continue to be considered Locked In
and/or Vested in accordance with the terms hereof notwithstanding the Ownership Cap; provided, however, that any such Warrant Shares
which would enable Holder if exercised to exceed the Ownership Cap shall be applied only to Holder’s cashless exercise of
this Warrant in accordance with Section 3.2 hereof.

 

Notwithstanding the foregoing, to the extent
that the Company repurchases shares of Common Stock (other than in connection with tax withholding under its equity plans and equity
award agreements) after the Effective Date in excess of $2,000,000, the Ownership Cap shall be determined based on the issued and
outstanding Common Stock without giving effect to any such repurchases of Common Stock by the Company in excess of $2,000,000.

 

    	 

    	 

    

 

APPENDIX 2

 

NOTICE OF EXERCISE

 

TO: THE MANAGEMENT NETWORK GROUP, INC.

 

1.           The undersigned hereby elects to purchase
_____ Shares of the Common Stock of The Management Network Group, Inc. pursuant to the terms of the attached Amended and Restated
Common Stock Purchase Warrant (the “Warrant”) issued to the undersigned, and shall tender payment of the exercise price
in full in accordance with the terms of the Warrant.

 

2.           Payment shall take the form of (check
applicable box):

 

[ ]           in lawful money of the United
States; or

 

[ ]           the exercise of
such number of Shares as is necessary, in accordance with the formula set forth in Section 3.2 of the Warrant, to exercise
the Warrant with respect to the number of Shares to be purchased as set forth in item 1 above pursuant to the cashless exercise
procedure set forth in Section 3.2 of the Warrant.

 

3.           Please issue a certificate or certificates
representing said Shares in the name of the undersigned.

 

	 	ELUTIONS, INC.
	 	 	 
	 	By:	 	 
	 	 	Name:
	 	 	Title:

 

 

 

 

Date:________________

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