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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of Earliest Event Reported):
October 4, 2012 (September 25, 2012)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROTEA BIOSCIENCES GROUP, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; text-align: center">Delaware</TD>
    <TD STYLE="width: 36%; border-bottom: black 1.5pt solid; text-align: center">000-51474</TD>
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; text-align: center">20-2903252</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or other jurisdiction of incorporation or organization)</TD>
    <TD STYLE="text-align: center">(Commission File Number)</TD>
    <TD STYLE="text-align: center">(IRS Employer Identification No.)</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">955 Hartman Run Road</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Morgantown, West Virginia 26507</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(304) 292-2226</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;(Former name or former address, if
changed since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR>
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (<U>see</U> General Instruction A.2. below):</P>

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    <TD STYLE="width: 7%"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 90%">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</P></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold; width: 8%">Item 1.01.</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold; width: 92%"> Entry into a Material Definitive Agreement.</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Related Party Convertible Promissory Notes</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On September 25, 2012
(the &quot;Issue Date&quot;), Protea Biosciences Group, Inc. (the &quot;Company&quot;), issued convertible promissory notes (the
&quot;Notes&quot;) in an aggregate principal amount equal to $593,216 (the &quot;Principal Amount&quot;) to Stanley Hostler, Scott
Segal, Leonard Harris, Ed Roberson, each a director of the Company, Summit Resources, Inc., an affiliate of Steve Antoline, a director
of the Company, Steven Turner, the Chief Executive Officer and a director of the Company, and his wife Nancy Turner and Virginia
Child, the wife of Stanley Hostler (each a &quot;Holder&quot; and collectively, the &quot;Holders&quot;) in consideration for certain
advances to the Company equal to the Principal Amount. The Notes accrue simple interest at a rate of 10% per annum and are due
and payable on the earlier to occur of (i) the date that is 60 days from the Issue Date, or (ii) when declared due and payable
by the holder upon the occurrence of an event of default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The occurrence of any
one of the following events will be deemed an event of default: (i) the failure of the Company to pay the principal balance or
accrued interest on the Note when due; (ii) the consent or institution by or against the Company of bankruptcy or insolvency proceedings
or the filing, or consent by the Company for the filing of a petition or answer or consent seeking reorganization or release under
the federal Bankruptcy Act, or any other applicable federal or state law, or the appointment of a receiver, liquidator, assignee,
trustee or other similar official of the Company, or of any substantial part of its property, or the making by it of an assignment
for the benefit of creditors, or the taking of corporate action by the Company in furtherance of any such action; or (iii) if the
commencement of an action against the Company seeking any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar
relief has not been resolved in favor of the Company or the consent or acquiescence of the Company of any trustee, receiver or
liquidator of the Company or of all or any substantial part of the properties of the Company, shall not have been vacated within
60 days.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the option of the
Holder, each $2.00 of outstanding principal and accrued unpaid interest is convertible into one share of common stock of the Company,
at any time after the Issue Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The description of
the Notes included in this Item 1.01 is qualified in its entirety by the terms and conditions of the form of the Notes filed as
Exhibit 10.1 to this Current Report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Extension of Maturity Date of Convertible
Promissory Notes Dated December 20, 2011</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On December 20, 2011
(the &quot;December Issue Date&quot;), the Company issued certain convertible promissory notes (the &quot;December Notes&quot;)
to Stanley Hostler, a director of the Company, and Summit Resources, Inc., an affiliate of Steve Antoline, a director of the Company
(collectively, the &quot;December Noteholders&quot;), in an aggregate principal amount equal to $750,000 (the &quot;December Principal
Amount&quot;). The Notes accrue simple interest at a rate of 10% per annum and were due and payable on the earlier to occur of
(i) the date that is 180 days from the December Issue Date, or (ii) when declared due and payable by the December Noteholder upon
the occurrence of an event of default (the &quot;Maturity Date&quot;). At the option of the December Noteholders, each $2.00 of
outstanding December Principal Amount and accrued unpaid interest is convertible into one share of common stock of the Company.
On June 15, 2012, pursuant to an addendum to the December Notes (the &quot;December Note Addendum No. 1&quot;), the Holders agreed
to extend the Maturity Date of the December Notes by 90 days from June 17, 2012 to September 15, 2012, followed by a second addendum
dated September 25, 2012 (the &quot;December Note Addendum No. 2&quot;), pursuant to which the Maturity Date was extended an additional
90 days to December 14, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The above descriptions
of the December Notes and the December Note Addendum No. 2 are qualified in their entirety by the terms of the form of December
Notes filed as Exhibit 10.1 to the Company's Form 8-K filed on December 28, 2011 and the December Note Addendum No. 1 filed as
Exhibit 10.1 and 10.2 to the Company's Form 8-K filed on July 16, 2012. The description above of the December Note Addendum No.
2 is qualified in its entirety by the terms and conditions of the December Note Addendum No. 2 for each of the Stanley Hostler
and Steven Antoline attached hereto as Exhibits 10.2 and 10.3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold; width: 8%">Item 2.03.</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold; width: 92%">Creation of a Direct
Financial Obligation or an Obligation under an Off-Balance &#9;&#9;Sheet Arrangement of a Registrant.</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As more fully described
in Item 1.01 of this Current Report on Form 8-K, the Company issued Notes to certain directors and related parties in consideration
of advances to the Company equal to the Principal Amount. The Notes constitute short-term debt obligations arising other than
in the ordinary course of business which create a direct financial obligation on the Company. The terms of the Notes set forth
above are incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold; width: 8%">Item 3.02.</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold; width: 92%">Recent Sales of Unregistered Securities.</TD></TR>
</TABLE></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On the Issue Date,
the Company issued the Notes to the directors and certain related parties. The terms of the Notes set forth above are incorporated
herein by this reference.<B> </B>No commissions were paid in respect of the sale of the Notes. The Notes were issued pursuant to
the exemption from registration provided by Section 4(2) <FONT STYLE="color: black">under the Securities Act of 1933, as amended
(the &ldquo;Securities Act&rdquo;), as a transaction by an issuer not involving a public offering, in which the investors are accredited
and have acquired the securities for investment purposes only and not with a view to or for sale in connection with any distribution
thereof</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%; padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold">Item 9.01.</TD>
    <TD STYLE="width: 92%; padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold">Exhibits and Financial Statements</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 8%; text-align: left; padding-left: 0.24in">(d)</TD><TD STYLE="text-align: justify; width: 92%">Exhibits</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 8%; text-align: left; padding-left: 0.24in">10.1</TD><TD STYLE="text-align: justify; width: 92%">Form of Convertible Promissory Notes, dated September
25, 2012.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 8%; text-align: left; padding-left: 0.24in">10.2</TD><TD STYLE="text-align: justify; width: 92%">Convertible Promissory Note Addendum executed by Stanley
Hostler, dated September &#9;&#9;25, 2012 (with respect to the December Note by and between the Company and Stanley &#9;&#9;Hostler).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 8%; text-align: left; padding-left: 0.24in">10.3</TD><TD STYLE="text-align: justify; width: 92%">Convertible Promissory Note Addendum executed by Summit
Resources, Inc., dated &#9;&#9;September 25, 2012 (with respect to the December Note by and between the Company &#9;and Summit
Resources, Inc.).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <TD STYLE="padding: 0">Dated: October 4, 2012</TD>
    <TD STYLE="padding: 0; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0">PROTEA BIOSCIENCES GROUP, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; width: 35%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: center; width: 25%">&nbsp;</TD>
    <TD STYLE="padding: 0; width: 5%">&nbsp;</TD>
    <TD STYLE="padding: 0; width: 35%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 0">By:</TD>
    <TD STYLE="padding: 0; border-bottom: Black 1pt solid">/s/ Stephen Turner</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">Stephen Turner</TD></TR>
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{"company-data": {"conformed-name": "Protea Biosciences Group, Inc.", "cik": "0001335103", "assigned-sic": "2834", "irs-number": "000000000", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51474", "film-number": "121130383"}, "business-address": {"street1": "955 HARTMAN RUN ROAD", "city": "MORGANTOWN", "state": "WV", "zip": "26507", "phone": "304 292-2226"}, "mail-address": {"street1": "955 HARTMAN RUN ROAD", "city": "MORGANTOWN", "state": "WV", "zip": "26507"}, "former-company": [{"former-conformed-name": "Protea Biosciences Inc.", "date-changed": "20110908"}, {"former-conformed-name": "SRKP 5 INC", "date-changed": "20050803"}]}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
October 4, 2012 (September 25, 2012)
PROTEA BIOSCIENCES GROUP, INC.
(Exact name of registrant as specified in
its charter)
Delaware
000-51474
20-2903252
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(IRS Employer Identification No.)
955 Hartman Run Road
Morgantown, West Virginia 26507
(Address of principal executive offices)
(304) 292-2226
(Registrant's telephone number, including
area code)
(Former name or former address, if
changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (
see
General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01.
Entry into a Material Definitive Agreement.
Related Party Convertible Promissory Notes
On September 25, 2012
(the "Issue Date"), Protea Biosciences Group, Inc. (the "Company"), issued convertible promissory notes (the
"Notes") in an aggregate principal amount equal to $593,216 (the "Principal Amount") to Stanley Hostler, Scott
Segal, Leonard Harris, Ed Roberson, each a director of the Company, Summit Resources, Inc., an affiliate of Steve Antoline, a director
of the Company, Steven Turner, the Chief Executive Officer and a director of the Company, and his wife Nancy Turner and Virginia
Child, the wife of Stanley Hostler (each a "Holder" and collectively, the "Holders") in consideration for certain
advances to the Company equal to the Principal Amount. The Notes accrue simple interest at a rate of 10% per annum and are due
and payable on the earlier to occur of (i) the date that is 60 days from the Issue Date, or (ii) when declared due and payable
by the holder upon the occurrence of an event of default.
The occurrence of any
one of the following events will be deemed an event of default: (i) the failure of the Company to pay the principal balance or
accrued interest on the Note when due; (ii) the consent or institution by or against the Company of bankruptcy or insolvency proceedings
or the filing, or consent by the Company for the filing of a petition or answer or consent seeking reorganization or release under
the federal Bankruptcy Act, or any other applicable federal or state law, or the appointment of a receiver, liquidator, assignee,
trustee or other similar official of the Company, or of any substantial part of its property, or the making by it of an assignment
for the benefit of creditors, or the taking of corporate action by the Company in furtherance of any such action; or (iii) if the
commencement of an action against the Company seeking any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar
relief has not been resolved in favor of the Company or the consent or acquiescence of the Company of any trustee, receiver or
liquidator of the Company or of all or any substantial part of the properties of the Company, shall not have been vacated within
60 days.
At the option of the
Holder, each $2.00 of outstanding principal and accrued unpaid interest is convertible into one share of common stock of the Company,
at any time after the Issue Date.
The description of
the Notes included in this Item 1.01 is qualified in its entirety by the terms and conditions of the form of the Notes filed as
Exhibit 10.1 to this Current Report on Form 8-K.
Extension of Maturity Date of Convertible
Promissory Notes Dated December 20, 2011
On December 20, 2011
(the "December Issue Date"), the Company issued certain convertible promissory notes (the "December Notes")
to Stanley Hostler, a director of the Company, and Summit Resources, Inc., an affiliate of Steve Antoline, a director of the Company
(collectively, the "December Noteholders"), in an aggregate principal amount equal to $750,000 (the "December Principal
Amount"). The Notes accrue simple interest at a rate of 10% per annum and were due and payable on the earlier to occur of
(i) the date that is 180 days from the December Issue Date, or (ii) when declared due and payable by the December Noteholder upon
the occurrence of an event of default (the "Maturity Date"). At the option of the December Noteholders, each $2.00 of
outstanding December Principal Amount and accrued unpaid interest is convertible into one share of common stock of the Company.
On June 15, 2012, pursuant to an addendum to the December Notes (the "December Note Addendum No. 1"), the Holders agreed
to extend the Maturity Date of the December Notes by 90 days from June 17, 2012 to September 15, 2012, followed by a second addendum
dated September 25, 2012 (the "December Note Addendum No. 2"), pursuant to which the Maturity Date was extended an additional
90 days to December 14, 2012.
The above descriptions
of the December Notes and the December Note Addendum No. 2 are qualified in their entirety by the terms of the form of December
Notes filed as Exhibit 10.1 to the Company's Form 8-K filed on December 28, 2011 and the December Note Addendum No. 1 filed as
Exhibit 10.1 and 10.2 to the Company's Form 8-K filed on July 16, 2012. The description above of the December Note Addendum No.
2 is qualified in its entirety by the terms and conditions of the December Note Addendum No. 2 for each of the Stanley Hostler
and Steven Antoline attached hereto as Exhibits 10.2 and 10.3.
Item 2.03.
Creation of a Direct
Financial Obligation or an Obligation under an Off-Balance 		Sheet Arrangement of a Registrant.
As more fully described
in Item 1.01 of this Current Report on Form 8-K, the Company issued Notes to certain directors and related parties in consideration
of advances to the Company equal to the Principal Amount. The Notes constitute short-term debt obligations arising other than
in the ordinary course of business which create a direct financial obligation on the Company. The terms of the Notes set forth
above are incorporated herein by this reference.
Item 3.02.
Recent Sales of Unregistered Securities.
On the Issue Date,
the Company issued the Notes to the directors and certain related parties. The terms of the Notes set forth above are incorporated
herein by this reference.
No commissions were paid in respect of the sale of the Notes. The Notes were issued pursuant to
the exemption from registration provided by Section 4(2)
under the Securities Act of 1933, as amended
(the "Securities Act"), as a transaction by an issuer not involving a public offering, in which the investors are accredited
and have acquired the securities for investment purposes only and not with a view to or for sale in connection with any distribution
thereof
.
Item 9.01.
Exhibits and Financial Statements
(d)
Exhibits
10.1
Form of Convertible Promissory Notes, dated September
25, 2012.
10.2
Convertible Promissory Note Addendum executed by Stanley
Hostler, dated September 		25, 2012 (with respect to the December Note by and between the Company and Stanley 		Hostler).
10.3
Convertible Promissory Note Addendum executed by Summit
Resources, Inc., dated 		September 25, 2012 (with respect to the December Note by and between the Company 	and Summit
Resources, Inc.).
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Dated: October 4, 2012
PROTEA BIOSCIENCES GROUP, INC.
By:
/s/ Stephen Turner
Stephen Turner
Chief Executive Officer