Document:

Exhibit 10.2

 

2014 CREDIT FACILITY AGREEMENT

 

AGREEMENT by and
between Protalex, Inc., a Delaware corporation (the “Company”) and Niobe Ventures, LLC, a Delaware limited liability
company (“Niobe”), dated as of November 4, 2014.

 

WHEREAS, the Company
is seeking a credit facility of $5.0 million;

 

WHEREAS, Niobe
is the holder of a Consolidated, Amended and Restated Promissory Note in the principal amount of $9,219,366 issued by the Company
on October 11, 2013 (the “Outstanding Note”); and

 

WHEREAS, Niobe
wishes to make an additional $5.0 million credit facility available to the Company;

 

NOW THEREFORE,
the parties hereby agree as follows:

 

		1.	Credit Facility.

 

(a)Niobe hereby agrees
that it will make available to the Company up to $5.0 million in the form of secured loans at the request of the Company made at
any time prior to December 31, 2015 (the “Expiration Date”) as follows:

 

(i)up to $300,000
on November 4, 2014;

 

(ii)up to $400,000
on November 28, 2014;

 

(iii)up to $600,000
on January 15, 2015; and

 

(iv)up to $300,000
on the last business day of each calendar month thereafter provided that (a) there shall have been no material adverse development
in the Company’s clinical testing of PRTX-100 (a “Material Adverse Event”), and (b) with giving effect to the
proposed draw down, the Company shall have current working capital in an amount equal to the average monthly burn-rate (actual
expenses incurred) for the three months preceding the draw-down notice, multiplied by six (e.g., if the average monthly burn rate
for the three months preceding the draw-down notice was $150,000, then the Company will be required to have $900,000 of working
capital on hand (including the draw-down amount) in order to qualify for that draw-down). The foregoing is referred to herein as
the “Working Capital Funding Threshold”.

 

(b)Niobe shall only
be obligated to make loans to the Company hereunder to the extent that the conditions set forth herein are met.

 

(c)Notwithstanding
anything to the contrary that may be contained herein, in no event shall Niobe be required to loan the Company more than $5.0 million
hereunder, or to make any loan at any time after the Expiration Date.

 

		2.	Request for Loans.

 

At any time prior to
the Expiration Date, the Company may request that Niobe make a loan to the Company by submitting to Niobe a written request therefor
(a “Loan Request”), which Loan Request must contain: (i) the amount of the loan requested to be made; (ii) a
certification that no Material Adverse Event has occurred; (iii) if applicable, documentation reasonably satisfactory to the Lender
that the Working Capital Funding Threshold is met; and (iv) the aggregate principal amount of all loans made to the Company by
Niobe pursuant to this Agreement prior to such request. Such Loan Request must be accompanied by a written certification signed
by an executive officer of the Company certifying that no Event of Default has occurred and is continuing under any outstanding
note of the Company.

 

    	 

    	 

    

  

		3.	Loans.

 

(a)Within ten
(10) days of the receipt of such Loan Request, Niobe shall make a loan to the Company in an amount equal to the lesser of (i) the
amount sought in such Loan Request, or (ii) $5 million less the aggregate amount of all loans previously made to the Company by
Niobe pursuant to this Agreement (the “Available Amount”);

 

(b)If the amount
sought in such Loan Request is in excess of the Available Amount, Niobe, in its sole and absolute discretion, may (but shall not
be required to) make a loan to the Company for all or any portion of such excess.

 

(c)Each loan
made to the Company by Niobe shall be represented by a Senior Secured Promissory Note in the form of Exhibit A annexed hereto
(a “Note”).

 

(d)The obligations
of the Company pursuant to each Note shall be secured by a first priority perfected security interest in all of the assets of the
Company pursuant to the Second Consolidated, Amended and Restated Security Agreement in the form of Exhibit B annexed hereto.

 

		4.	Notices.

 

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

 

If to Company:

 

Protalex, Inc.

131 Columbia Turnpike, Suite 1

Florham Park, NJ 07932

Attention: Chief Financial Officer

 

With copies to

 

Morse, Zelnick, Rose & Lander LLP

825 Third Avenue, 16th Floor

New York, NY 10022

Attention: Kenneth S. Rose, Esq.

Fax: 212-208-6809

 

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If to Niobe:

 

Niobe Ventures, LLC

c/o Arnold P. Kling

410 Park Avenue, 17th Floor

New York, NY 10022

Attention: Arnold P. Kling, Manager

Fax: 212-713-1818

 

 

		5.	Governing Law.

 

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

 

		6.	Waiver.

 

Any waiver by the Company
or Niobe of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach
of such provision or of any breach of any other provision of this Agreement.

 

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		7.	Severability.

 

If any provision of this Agreement is invalid,
illegal or unenforceable, the balance of this Agreement shall remain in effect, and if any provision is inapplicable to any person
or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.

 

	 	PROTALEX, INC.
	 	 	 
	 	By:	 
	 	 	Kirk M. Warshaw
	 	 	Chief Financial Officer
	 	 	 
	 	 	 
	 	NIOBE VENTURE, LLC
	 	 	 
	 	By:	 
	 	 	Arnold P. Kling
	 	 	Manager

 

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EXHIBIT A

 

[Exhibit Intentionally Omitted]

 

    	 

    	 

    

 

EXHIBIT B

 

[Exhibit Intentionally Omitted]Exhibit 10.3

 

SECOND CONSOLIDATED, AMENDED AND RESTATED
SECURITY AGREEMENT

 

THIS CONSOLIDATED,
AMENDED AND RESTATED SECURITY AGREEMENT (this “Agreement”), dated as of November 4, 2014, is made by and
among Protalex, Inc. a Delaware corporation, (the “Grantor”), and Niobe Ventures, LLC (the “Secured
Party”) and amends and restates the Security Agreements by and between Grantor and Secured Party described on Exhibit
B hereto.

 

WHEREAS, the Grantor
has issued to the Secured Party a Consolidated, Amended and Restated Promissory Note in the principal amount of Nine Million Two
Hundred Nineteen Thousand Three Hundred Sixty Six and 67/100 Dollars ($9,219,366.67) (the “Consolidated Note”); and

 

WHEREAS, the Grantor
and the Secured Party have entered into a 2014 Credit Facility Agreement pursuant to which the Secured Party may loan to the Grantor
up to an incremental $5 million; and

 

WHEREAS, the
Grantor and the Secured Party have agreed to execute and deliver this Agreement, among other things, to continue to secure the
obligations of the Grantor to the Secured Party under the Consolidated Note and any incremental note issued pursuant to the 2014
Credit Facility Agreement.

 

NOW, THEREFORE, The
Grantor and the Secured Party hereby agree as follows:

 

SECTION 1.      
Definitions; Interpretation.

 

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

 

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

 

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

 

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

 

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

 

    	 

    	 

    

  

		(a)	Copyrights, Trademarks and Patents;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

SECTION 2.      
Security Interest.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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SECTION 8.      
Remedies.

 

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

 

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

 

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SECTION 9.      
Certain Waivers. 

 

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

 

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

 

If to Grantor:

 

Protalex, Inc.

131 Columbia
Turnpike, Suite 1,

Florham Park,
NJ 07932

Attention:
Chief Financial Officer

 

With copies to

 

Morse, Zelnick, Rose & Lander LLP

825 Third Avenue, 16th Floor

New York, NY 10022

Attention:
Kenneth S. Rose, Esq.

Fax: 212-208-6809
 

 

If to the Secured Party:

 

Niobe Ventures, LLC

c/o Arnold P. Kling

410 Park Avenue, Suite 1710

New York, NY 10021

Attention: Arnold Kling, Managing
Member

Fax: 212-713-1818

 

With a copy to

 

Morse, Zelnick, Rose & Lander LLP

825 Third Avenue, 16th Floor

New York, NY 10022

Attention: Kenneth S. Rose, Esq.

Fax: 212-208-6809

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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EXHIBIT A

 

COLLATERAL DESCRIPTION ATTACHMENT TO
SECURITY AGREEMENT

 

		DEBTOR	PROTALEX, INC., a Delaware corporation

 

		SECURED PARTY:	Niobe Ventures, LLC

 

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

 

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

 

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

 

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

 

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

 

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

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