Document:

EX-10.2

 Exhibit 10.2 

Conformed Copy 

MANAGEMENT AGREEMENT 

This AGREEMENT (this “Agreement”), made as of the 1st day of October 2017, is by and among CERES MANAGED FUTURES LLC, a Delaware
limited liability company (“CMF”), CERES TACTICAL CURRENCY, L.P. a Delaware limited partnership (formerly known as Morgan Stanley Smith Barney Spectrum Currency & Commodity L.P., the “Partnership”) and P/E GLOBAL
LLC, a Delaware limited liability company (“PE Global” or the “Advisor”). 
 W I T N E
S S E T H : 
 WHEREAS, CMF is the general partner of the Partnership, a limited partnership organized
for the purpose of speculative trading of commodity interests, including futures contracts, options, forward contracts, swaps and other derivative instruments with the objective of achieving substantial capital appreciation; and 

WHEREAS, the limited partnership agreement of the Partnership, dated as of March 6, 2000, as amended and restated as of April 25,
2005, April 2, 2007 and January 1, 2016 (the “Partnership Agreement”), permit CMF to delegate to one or more commodity trading advisors CMF’s authority to make trading decisions on behalf of the Partnership; and 

WHEREAS, the Advisor is registered as a commodity trading advisor with the CFTC and is a member of the NFA; and 

WHEREAS, CMF is registered as a commodity trading advisor and a commodity pool operator with the CFTC and is a member of the NFA; and 

WHEREAS, CMF, the Partnership and the Advisor wish to enter into this Agreement in order to set forth the terms and conditions upon which the
Advisor will render and implement advisory services in connection with the conduct by the Partnership of its commodity interest trading activities during the term of this Agreement. 

NOW, THEREFORE, the parties agree as follows: 

1. DUTIES OF THE ADVISOR. (a) For the period, and on the terms and conditions, of this Agreement, the Advisor shall have sole
authority and responsibility, as one of the Partnership’s agents and attorneys-in-fact, for directing the investment and reinvestment of the assets and funds of the
Partnership allocated to it from time to time by CMF in commodity interests, including commodity futures contracts, options, and forward contracts. The Advisor may also engage in swap transactions and other derivative transactions on behalf of the
Partnership with the prior written approval of CMF. All such trading on behalf of the Partnership shall be in accordance with the trading strategies and trading policies set forth in the Partnership Agreement and as described in Appendix A and
Appendix B, and as such trading 

 
policies may be changed from time to time, (i) with respect to the Partnership Agreement, upon at least five (5) days advance written notice to the Advisor and (ii) with respect to
Appendix A, upon the mutual agreement of the parties. CMF has determined that the Partnership assets allocated to the Advisor shall be allocated to the Advisor’s FX Standard Strategy—MS (the “Program”) or as may otherwise be
mutually agreed by the parties in writing in the future. Any open positions or other investments at the time of receipt of such notice of a change in trading policy shall not be deemed to violate the changed policy and shall be closed or sold in the
ordinary course of trading. The Advisor may not deviate from the trading policies set forth in Appendix A and Appendix B without the prior written consent of the Partnership given by CMF. The Advisor makes no representation or warranty that the
trading to be directed by it for the Partnership will be profitable or will not result in losses. 
 (b) CMF acknowledges receipt of the
description of the Program, attached hereto as Appendix A. CMF further acknowledges receipt of the trading strategies and trading policies which are attached as Appendix B hereto. All trades made by the Advisor for the account of the
Partnership shall be made through such commodity broker or brokers as CMF shall direct, and the Advisor shall have no authority or responsibility for selecting or supervising any such broker in connection with the execution, clearance or
confirmation of transactions for the Partnership or for the negotiation of brokerage rates charged therefor. However, the Advisor, with the prior written permission (by original, fax copy or email copy) of CMF, may direct any and all trades in
commodity futures and options to a futures commission merchant or independent floor broker it chooses for execution with instructions to give-up the trades to the broker designated by CMF, provided that the
futures commission merchant or independent floor broker and any give-up or floor brokerage fees are approved in advance by CMF. The Advisor, with the prior written permission (by original, fax copy or email
copy) of CMF, may enter into swaps and other derivative transactions with any swap dealer it chooses for execution with instructions to give-up the trades to the broker designated by CMF, provided that the
swap dealer and any give-up or other fees are approved in advance by CMF. All give-up or similar fees relating to the foregoing shall be paid by the Partnership after
all parties have executed the relevant give-up agreements (by original, fax copy or email copy). 

(c) The initial allocation of the Partnership’ assets to the Advisor will be made to the Program, as described in Appendix A attached
hereto; provided, however, that CMF and the Partnership agree that the amount of assets of the Partnership allocated to the Advisor (the “Allocated Amount”) utilizing the leverage the Advisor applies to the Program, unless otherwise
agreed to in writing by CMF and the Advisor. In the event that the Advisor wishes to use a trading system or methodology other than or in addition to the system or methodology outlined in Appendix A and Appendix B in connection with its trading for
the Partnership, either in whole or in part, it may not do so unless the Advisor gives CMF prior written notice of its intention to utilize such different trading system or methodology and CMF consents thereto in writing. The Advisor will provide
five days’ prior written notice to CMF of any change in the investment strategy to be utilized for the Partnership which the Advisor deems material. If the Advisor deems such change in the investment strategy or in markets traded to be
material, the changed investment strategy or markets traded will not be utilized for the Partnership without the prior 

  
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written consent of CMF. In addition, the Advisor will notify CMF of any changes to the investment strategy that would cause the description of the trading strategy or methods described in
Appendix A or Appendix B to be materially inaccurate. Further, the Advisor will provide the Partnership with a current list of all commodity interests to be traded for the Partnership’ account and the Advisor will not trade any
additional commodity interests for such account without providing notice thereof to CMF and receiving CMF’s written approval. The Advisor also agrees to provide CMF, on a monthly basis, with a written report of the assets under the
Advisor’s management together with all other matters deemed by the Advisor to be material changes to its business not previously reported to CMF. The Advisor further agrees that it will convert foreign currency balances (not required to margin
positions denominated in a foreign currency) to U.S. dollars no less frequently than monthly. U.S. dollar equivalents in individual foreign currencies of more than $100,000 will be converted to U.S. dollars within seven business day after such funds
are no longer needed to margin foreign positions. 
 (d) The Advisor agrees to make all material disclosures to the Partnership regarding
itself and its principals as defined in Part 4 of the CFTC’s regulations (“principals”), shareholders, directors, officers and employees, their trading performance and general trading methods, its customer accounts (but not the
identities of or identifying information with respect to its customers) and otherwise as are required in the reasonable judgment of CMF in good faith to be made in any filings required by federal or state law or NFA rule or order. Notwithstanding
Sections 1(d) and 4(d) of this Agreement, the Advisor shall not be required to disclose the actual trading results of proprietary accounts of the Advisor or its principals unless CMF reasonably determines in good faith that such disclosure is
required in order to fulfill its fiduciary obligations to the Partnership or the reporting, filing or other obligations imposed on it by federal or state law or NFA rule or order. The Partnership and CMF acknowledge that the trading advice to be
provided by the Advisor is a property right belonging to the Advisor and that they will keep all such advice confidential. 
 (e) The Advisor
understands and agrees that CMF may designate other trading advisors for the Partnership and apportion or reapportion to such other trading advisors the management of an amount of the Net Asset Value of the Partnership (as defined in
Section 3(b) hereof) as it shall determine in its absolute discretion. The designation of other trading advisors and the apportionment or reapportionment of Net Asset Value of the Partnership to any such trading advisors pursuant to this
Section 1 shall neither terminate this Agreement nor modify in any regard the respective rights and obligations of the parties hereunder. 

(f) CMF shall notify the Advisor in writing of the Allocated Amount, and give the Advisor prior written notice (including by electronic mail)
of any changes thereto in accordance with this Section 1(f). CMF may, from time to time, in its absolute discretion, select additional trading advisors and change the Allocated Amount to reapportion funds among the trading advisors for the
Partnership as it deems appropriate. CMF shall use its best efforts to change the Allocated Amount and make reapportionments, if any, as of the first day of a calendar month. The Advisor agrees that it may be called upon at any time promptly to
liquidate positions in CMF’s sole discretion so that CMF may change the Allocated Amount to reallocate the 

  
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Partnership’ assets, meet margin calls on the Partnership’ account, fund redemptions, or for any other reason, except that CMF will not require the liquidation of specific positions by
the Advisor. CMF will use its best efforts to give two business days’ prior notice to the Advisor of any changes in the Allocated Amount. CMF acknowledges that the Advisor generally expects to rebalance the foreign exchange exposure on a
monthly basis, except in the following circumstances: (i) to comply with a change in the Allocated Amount; (ii) in the event that the Advisor determines that it is in the best interests of the CMF to rebalance prior to month end;
(iii) such rebalancing is otherwise required in order for the Advisor to comply with the provisions of this Agreement. 
 (g) The
Advisor shall assume financial responsibility for any errors committed or caused by it in transmitting orders for the purchase or sale of commodity interests for the Partnership’ account including payment to the brokers of the floor brokerage
commissions, exchange, NFA fees, and other transaction charges and give-up charges incurred by the brokers on such trades. The Advisor’s errors shall include, but not be limited to, inputting improper
trading signals or communicating incorrect orders to the commodity brokers. The Advisor shall have an affirmative obligation to promptly notify CMF in accordance with the provisions of Section 8(a)(iii) of any errors with respect to the
account, and the Advisor shall use its best efforts to identify and promptly notify CMF of any order or trade which the Advisor reasonably believes was not executed in accordance with its instructions to any broker utilized to execute orders for the
Partnership. 
 2. INDEPENDENCE OF THE ADVISOR. For all purposes herein, the Advisor shall be deemed to be an independent contractor
and, unless otherwise expressly provided or authorized, shall have no authority to act for or represent the Partnership in any way and shall not be deemed an agent, promoter or sponsor of the Partnership, CMF, or any other trading advisor. The
Advisor shall not be responsible to the Partnership, CMF, any trading advisor or any limited partners or any other person whatsoever for any acts or omissions of any other trading advisor to the Partnership. 

3. COMPENSATION. (a) In consideration of and as compensation for all of the services to be rendered by the Advisor to the
Partnership under this Agreement, the Partnership shall pay the Advisor (i) an incentive fee payable quarterly equal to 20% of New Trading Profits (as such term is defined below) earned by the Advisor for the Partnership (the “Incentive
Fee”) and (ii) a monthly fee for professional management services equal to 0.50% per year of the beginning of the month Net Asset Value of the Partnership allocated to the Advisor (computed monthly by multiplying the Partnership’ Net
Asset Value allocated to the Advisor as of the first day of each calendar month, commencing with the month in which the Partnership begins to receive trading advice from the Advisor pursuant to this Agreement,by 0.50% and dividing the result thereof
by 12) (the “Management Fee”). 
 (b) “Net Asset Value of the Partnership” shall have the meaning set forth in
Section 7(d)(1) of the Partnership Agreement and, unless the Advisor consents in writing, without regard to further amendments thereto, provided that in determining the Net Asset Value of the Partnership on any date, no adjustment shall be made
to reflect any distributions, redemptions, administrative fees or incentive fees accrued or payable as of the date of such determination. 

  
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 (c) “New Trading Profits” shall mean the excess, if any, of the Net Asset Value of the
Partnership managed by the Advisor at the end of the fiscal period over Net Asset Value of the Partnership managed by the Advisor at the end of the highest previous fiscal period or Net Asset Value of the Partnership allocated to the Advisor at the
date trading commences by the Advisor for the Partnership, whichever is higher, and as further adjusted to eliminate the effect on the Net Asset Value of the Partnership resulting from new capital contributions, redemptions, reallocations or capital
distributions, if any, made during the fiscal period decreased by interest or other income, not directly related to trading activity, earned on the Partnership’ assets during the fiscal period, whether the assets are held separately or in
margin accounts. Ongoing expenses shall be attributed to the Advisor based on the Advisor’s proportionate share of the Net Asset Value of the Partnership. Ongoing expenses shall not include expenses of litigation not involving the activities of
the Advisor on behalf of the Partnership. No Incentive Fee shall be paid to the Advisor until the end of the first full calendar quarter of the Advisor’s trading for the Partnership, which Incentive Fee shall be based on New Trading Profits (if
any) earned from the commencement of trading by the Advisor on behalf of the Partnership through the end of the first full calendar quarter of such trading. Interest income earned, if any, will not be taken into account in computing New Trading
Profits earned by the Advisor. If the Net Asset Value of the Partnership allocated to the Advisor is reduced due to redemptions, distributions or reallocations (net of additions), there will be a corresponding proportional reduction in the related
loss carryforward amount that must be recouped before the Advisor is eligible to receive another Incentive Fee. 
 (d) Quarterly Incentive
Fees and monthly Management Fees shall be paid within twenty (20) business days following the end of the period for which such fee is payable. In the event of the termination of this Agreement as of any date which shall not be the end of a
calendar quarter or a calendar month, as the case may be, the quarterly Incentive Fee shall be computed as if the effective date of termination were the last day of the then current quarter and the monthly Management Fee shall be prorated to the
effective date of termination. If, during any month, the Partnership does not conduct business operations or the Advisor is unable to provide the services contemplated herein for more than two successive business days, the monthly Management Fee
shall be prorated by the ratio which the number of business days during which CMF conducted the Partnership’ business operations or utilized the Advisor’s services bears in the month to the total number of business days in such month. 

(e) The provisions of this Section 3 shall survive the termination of this Agreement. 

  
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 4. RIGHT TO ENGAGE IN OTHER ACTIVITIES. (a) The services provided by the Advisor
hereunder are not to be deemed exclusive. CMF on its own behalf and on behalf of the Partnership acknowledges that, subject to the terms of this Agreement, the Advisor and its officers, directors, employees and shareholder(s) may render advisory,
consulting and management services to other clients and accounts. The Advisor and its officers, directors, employees and shareholder(s) shall be free to trade for their own accounts and to advise other investors and manage other commodity accounts
during the term of this Agreement and to use the same information, computer programs and trading strategies, programs or formulas which they obtain, produce or utilize in the performance of services to CMF for the Partnership. However, the Advisor
represents, warrants and agrees that it believes the rendering of such consulting, advisory and management services to other accounts and entities will not require any material change in the Advisor’s basic trading strategies for the
Partnership and will not affect the capacity of the Advisor to continue to render services to CMF for the Partnership of the quality and nature contemplated by this Agreement. 

(b) If, at any time during the term of this Agreement, the Advisor is required to aggregate the Partnership’ commodity positions with the
positions of any other person for purposes of applying CFTC- or exchange-imposed speculative position limits, the Advisor agrees that it will promptly notify CMF in
writing if the Partnership’s positions are included in an aggregate amount which exceeds the applicable speculative position limit. The Advisor agrees that, if its trading recommendations are altered because of the application of any
speculative position limits, it will not modify the trading instructions with respect to the Partnership’ account in such manner as to affect the Partnership substantially disproportionately as compared with the Advisor’s other accounts.
The Advisor further represents, warrants and agrees that under no circumstances will it knowingly or deliberately use trading programs, strategies or methods for the Partnership that are inferior to strategies or methods employed for any other
client or account and that it will not knowingly or deliberately favor any client or account managed by it over any other client or account in any manner, it being acknowledged, however, that different trading programs, strategies or methods may be
utilized for differing sizes of accounts, accounts with different trading policies or risk parameters, accounts experiencing differing inflows or outflows of equity, accounts that commence trading at different times, accounts that have different
portfolios or different fiscal years, accounts utilizing different executing brokers and accounts with other differences, and that such differences may cause divergent trading results. 

(c) It is acknowledged that the Advisor and/or its officers, employees, directors and shareholder(s) presently act, and it is agreed that they
may continue to act, as advisor for other accounts managed by them, and may continue to receive compensation with respect to services for such accounts in amounts which may be more or less than the amounts received from the Partnership. 

(d) The Advisor agrees that it shall make such information available to CMF respecting the performance of the Partnership’ account as
compared to the performance of other commodity interest trading accounts pursuing a substantially similar strategy managed by the Advisor or its principals, if any, as shall be reasonably requested by CMF. The Advisor presently believes and
represents that existing speculative position limits will not materially adversely affect its ability to manage the Partnership’ account given the potential size of the Partnership’ account and the Advisor’s and its principals’
current accounts and all proposed accounts for which they have contracted to act as trading advisor. 

  
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 5. TERM. (a) This Agreement shall continue in effect until May 1st, 2018 (the “Initial Termination Date”). If this Agreement is not terminated on the Initial Termination Date, as provided for herein, then, this Agreement shall automatically renew for an
additional one-year period and shall continue to renew for additional one-year periods until this Agreement is otherwise terminated, as provided for herein. At any time
during the term of this Agreement, CMF may terminate this Agreement upon 5 days’ notice to the Advisor. At any time during the term of this Agreement, CMF may elect to immediately terminate this Agreement if (i) the Net Asset Value of the
Partnership shall decline as of the close of business on any day to $4.00 or less; (ii) the Net Asset Value of the Partnership allocated to the Advisor (adjusted for redemptions, distributions, withdrawals or reallocations, if any) declines by
20% or more as of the end of a trading day from the previous highest value of the Partnership’ Net Asset Value; (iii) limited partners owning not less than a “Majority of Units in the Partnership” (as defined in
Section 5(a)(1) of the Partnership Agreement) shall vote to require CMF to terminate this Agreement; (iv) the Advisor fails to comply with the terms of this Agreement; (v) CMF, in good faith, reasonably determines that the performance
of the Advisor has been such that CMF’s fiduciary duties to the Partnership require CMF to terminate this Agreement; (vi) CMF reasonably believes that the application of speculative position limits will substantially affect the performance
of the Partnership; (vii) the Advisor fails to conform to the trading policies set forth in Appendix A or Appendix B as they may be changed from time to time; (viii) the Advisor merges, consolidates with another entity, sells a substantial
portion of its assets, or becomes bankrupt or insolvent; (ix) Warren Naphtal dies, becomes incapacitated, leaves the employ of the Advisor, ceases to control the Advisor or is otherwise not managing the trading programs or systems of the
Advisor; (x) the Advisor’s registration as a commodity trading advisor with the CFTC or its membership in the NFA or any other regulatory authority, is terminated or suspended; or (xi) CMF reasonably believes that the Advisor has or
may contribute to any material operational, business or reputational risk to CMF or CMF’s affiliates. This Agreement will immediately terminate upon dissolution of the Partnership or upon cessation of trading by the Partnership prior to
dissolution. 
 (b) The Advisor may terminate this Agreement by giving not less than 30 days’ notice to CMF (i) after May 1st,
2018; or (ii) in the event that CMF or the Partnership fails to comply with the terms of this Agreement. The Advisor may immediately terminate this Agreement if CMF’s registration as a commodity pool operator or its membership in NFA is
terminated or suspended. 
 (c) Except as otherwise provided in this Agreement, any termination of this Agreement in accordance with this
Section 5 shall be without penalty or liability to any party, except for any fees due to the Advisor pursuant to Section 3 hereof. 

  
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 6. INDEMNIFICATION. (a)(i) In any threatened, pending or completed action, suit, or
proceeding to which the Advisor was or is a party or is threatened to be made a party arising out of or in connection with this Agreement or the management of the Partnership’ assets by the Advisor or the offering and sale of Units in the
Partnership, CMF shall, subject to subsection (a)(iii) of this Section 6, indemnify and hold harmless the Advisor against any loss, liability, damage, fine, penalty, obligation, cost, expense (including, without limitation, attorneys’ and
accountants’ fees, collection fees, court costs and other reasonable legal expenses), judgments and awards and amounts paid in settlement actually and reasonably incurred by it in connection with such action, suit, or proceeding if the Advisor
acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership, and provided that its conduct did not constitute negligence, bad faith, recklessness, intentional misconduct, or a breach of
its fiduciary obligations to the Partnership as a commodity trading advisor, unless and only to the extent that the court or administrative forum in which such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all circumstances of the case, the Advisor is fairly and reasonably entitled to indemnity for such expenses which such court or administrative forum shall deem proper; and further provided that no
indemnification shall be available from the Partnership if such indemnification is prohibited by Section 14 of the Partnership Agreement. The termination of any action, suit or proceeding by judgment, order or settlement shall not, of itself,
create a presumption that the Advisor did not act in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership. 

(ii) Without limiting subsection (i) above, to the extent that the Advisor has been successful on the merits or otherwise in defense of
any action, suit or proceeding referred to in subsection (i) above, or in defense of any claim, issue or matter therein, CMF shall indemnify the Advisor against the expenses (including, without limitation, attorneys’ and accountants’
fees) actually and reasonably incurred by it in connection therewith. 
 (iii) Any indemnification under subsection (i) above, unless
ordered by a court or administrative forum, shall be made by CMF only as authorized in the specific case and only upon a determination by independent legal counsel in a written opinion that such indemnification is proper in the circumstances because
the Advisor has met the applicable standard of conduct set forth in subsection (i) above. Such independent legal counsel shall be selected by CMF in a timely manner, subject to the Advisor’s approval, which approval shall not be
unreasonably withheld. The Advisor will be deemed to have approved CMF’s selection unless the Advisor notifies CMF in writing, received by CMF within five days of CMF’s telecopying to the Advisor of the notice of CMF’s selection, that
the Advisor does not approve the selection. 
 (iv) In the event the Advisor is made a party to any claim, dispute or litigation or
otherwise incurs any loss or expense as a result of, or in connection with, the Partnership’ or CMF’s activities or claimed activities unrelated to the Advisor, CMF shall indemnify, defend and hold harmless the Advisor against any loss,
liability, damage, fine, penalty, obligation, cost or expense (including, without limitation, attorneys’ and accountants’ fees) actually and reasonably incurred by it in connection therewith. 

  
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 (v) As used in this Section 6(a), the term “Advisor” shall include the Advisor,
its principals, officers, directors, shareholder(s) and employees and the term “CMF” shall include the Partnership. 
 (b) (i) The
Advisor agrees to indemnify, defend and hold harmless CMF, the Partnership and their affiliates against any loss, liability, damage, fine, penalty, obligation, cost or expense (including, without limitation, attorneys’ and accountants’
fees, collection fees, court costs and other legal expenses), judgments and awards and amounts paid in settlement reasonably incurred by them (A) as a result of the breach of any representations, warranties or covenants made by the Advisor in
this Agreement, or (B) as a result of any act or omission of the Advisor relating to the Partnership if (1) there has been a final judicial or regulatory determination, or a written opinion of an arbitrator pursuant to
Section 14 hereof, to the effect that such acts or omissions violated the terms of this Agreement in any material respect or involved negligence, bad faith, recklessness or intentional misconduct on the part of the Advisor (except as otherwise
provided in Section 1(g)), or (2) there has been a settlement of any action or proceeding with the Advisor’s prior written consent. 

(ii) In the event CMF, the Partnership or any of their affiliates is made a party to any claim, dispute or litigation or otherwise incurs any
loss or expense as a result of, or in connection with, the activities or claimed activities of the Advisor or its principals, officers, directors, shareholder(s) or employees unrelated to CMF’s or the Partnership’ business, the Advisor
shall indemnify, defend and hold harmless CMF, the Partnership or any of their affiliates against any loss, liability, damage, fine, penalty, obligation, cost or expense (including, without limitation, attorneys’ and accountants’ fees,
collection fees, court costs and other legal expenses), judgments, awards and amounts including amounts paid in settlement incurred in connection therewith. 

(c) In the event that a person entitled to indemnification under this Section 6 is made a party to an action, suit or proceeding alleging
both matters for which indemnification can be made hereunder and matters for which indemnification may not be made hereunder, such person shall be indemnified only for that portion of the loss, liability, damage, cost or expense incurred in such
action, suit or proceeding which relates to the matters for which indemnification can be made. 
 (d) None of the indemnifications contained
in this Section 6 shall be applicable with respect to default judgments, confessions of judgment or settlements entered into by the party claiming indemnification without the prior written consent, which shall not be unreasonably withheld or
delayed, of the party obligated to indemnify such party. 
 (e) The provisions of this Section 6 shall survive the termination of this
Agreement. 

  
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 7. REPRESENTATIONS, WARRANTIES AND AGREEMENTS. 

(a) The Advisor represents and warrants that: 

(i) All information with respect to the Advisor and its principals and the trading performance of any of them that has been provided to CMF,
including, without limitation, the description of the Program contained in Appendix A, is complete and accurate in all material respects and such information does not contain any untrue statement of a material fact or omit to state a material
fact which is necessary to make the statements and information not misleading. 
 (ii) The Advisor will be acting as a commodity trading
advisor with respect to the Partnership and not as a securities investment adviser and is duly registered with the CFTC as a commodity trading advisor, is a member of the NFA, and is in compliance with any such other registration and licensing
requirements as shall be necessary to enable it to perform its obligations hereunder. The Advisor agrees to maintain and renew such registrations and licenses during the term of this Agreement. 

(iii) The Advisor is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware
and has full corporate power and authority to enter into this Agreement and to provide the services required of it hereunder. 
 (iv) The
Advisor will not, by acting as a commodity trading advisor to the Partnership, breach or cause to be breached any undertaking, agreement, contract, statute, rule or regulation to which it is a party or by which it is bound. 

(v) This Agreement has been duly and validly authorized, executed and delivered by the Advisor and is a valid and binding agreement
enforceable in accordance with its terms. 
 (vi) At any time during the term of this Agreement that an offering memorandum or prospectus
relating to the Partnership is required to be delivered in connection with the offer and sale thereof, the Advisor agrees upon the request of CMF to promptly provide the Partnership with such information as shall be necessary so that, as to the
Advisor and its principals, such offering memorandum or prospectus is accurate. 
 (b) CMF represents and warrants for itself and the
Partnership that: 
 (i) CMF is a limited liability company duly organized, validly existing and in good standing under the laws of the
State of Delaware and has full limited liability company power and authority to perform its obligations under this Agreement. 
 (ii) CMF
and the Partnership have the capacity and authority to enter into this Agreement on behalf of the Partnership. 

  
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 (iii) This Agreement has been duly and validly authorized, executed and delivered on CMF’s
and the Partnership’ behalf and is a valid and binding agreement of CMF and the Partnership enforceable in accordance with its terms. 

(iv) CMF will not, by acting as general partner to the Partnership and the Partnership will not, breach or cause to be breached any
undertaking, agreement, contract, statute, rule or regulation to which it is a party or by which it is bound which would materially limit or affect the performance of its duties under this Agreement. 

(v) CMF is registered as a commodity pool operator and is a member of NFA and is in compliance with any such other registration and licensing
requirements as shall be necessary to enable it to perform its obligations hereunder, and it will maintain and renew such registrations and membership during the term of this Agreement. 

(vi) The Partnership is a limited partnership duly organized and validly existing under the laws of the State of Delaware and has full limited
partnership power and authority to enter into this Agreement and to perform its obligations under this Agreement. 
 (vii) The Partnership
is a “qualified eligible person” as defined in CFTC Rule 4.7 under the Commodity Exchange Act, as amended, as further described on Appendix C and consents to being treated as an exempt account under CFTC Rule 4.7(c). 

8. COVENANTS OF THE ADVISOR, CMF AND THE PARTNERSHIP. 

(a) The Advisor agrees as follows: 

(i) In connection with its activities on behalf of the Partnership, the Advisor will comply with all applicable laws, including rules and
regulations of the CFTC, NFA swap execution facility and/or the commodity exchange on which any particular transaction is executed. 
 (ii)
The Advisor will promptly notify CMF of the commencement of any investigation, audit, suit, action or proceeding involving the Advisor or any of its affiliates, officers, shareholder(s), employees, agents or representatives that may, in the opinion
of the Advisor, acting reasonably and in good faith, have an adverse effect on the Advisor; regardless of whether such investigation, audit, suit, action or proceeding also involves CMF, to the extent permitted by law, regulation and/or
confidentiality obligation. Upon the request of CMF, the Advisor will provide CMF with copies of any correspondence (including, but not limited to, any notices or correspondence regarding the violation, or potential violation, of position limits)
from or to the CFTC, NFA or any commodity exchange in connection with any material, non-routine investigation or audit of the Advisor’s business activities to the extent permitted by law, regulation
and/or confidentiality obligation. 

  
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 (iii) In the placement of orders for the Partnership’ account and for the accounts of any
other client, the Advisor will utilize a pre-determined, systematic, fair and reasonable order entry system, which shall, on an overall basis, be no less favorable to the Partnership than to any other
commodity interest trading account managed by the Advisor. The Advisor acknowledges its obligation to review the Partnership’ positions, prices and equity in the account managed by the Advisor daily and within two business days to notify, in
writing, the broker and CMF and the Partnership’ brokers of (A) any error committed by the Advisor or its principals or employees; (B) any trade which the Advisor believes was not executed in accordance with its instructions; and
(C) any discrepancy with a value of $10,000 or more (due to differences in the positions, prices or equity in the account) between its records and the information reported on the account’s daily and monthly broker statements. 

(iv) The Advisor will maintain a net worth of not less than $250,000 during the term of this Agreement. 

(v) The Advisor will use its best efforts to close out all futures positions prior to any applicable delivery period, and will use its best
efforts to avoid causing the Partnership to take delivery of any commodity. 
 (b) CMF agrees for itself and the Partnership that: 

(i) CMF and the Partnership will comply with all applicable laws, including rules and regulations of the CFTC, NFA, swap execution facility
and/or the commodity exchange on which any particular transaction is executed. 
 (ii) CMF will promptly notify the Advisor of the
commencement of any material suit, action or proceeding involving it or the Partnership, whether or not such suit, action or proceeding also involves the Advisor. 

9. COMPLETE AGREEMENT. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter hereof. 

10. ASSIGNMENT. This Agreement may not be assigned by any party without the express written consent of the other parties. 

11. AMENDMENT. This Agreement may not be amended except by the written consent of the parties. 

12. NOTICES. All notices, demands or requests required to be made or delivered under this Agreement shall be effective upon actual
receipt and shall be made either by electronic mail (email) copy or in writing and delivered personally or by registered or certified mail or expedited courier, return receipt requested, postage prepaid, to the addresses below or to such other
addresses as may be designated by the party entitled to receive the same by notice similarly given: 

  
 - 12 - 

 If to CMF or to the Partnership: 

Ceres Managed Futures LLC 
 522
Fifth Avenue, 
 New York, New York 10036 

Attention: Patrick Egan 
 Email:
Patrick.Egan@morganstanley.com 
 If to the Advisor: 

P/E Global LLC 
 75 State
Street, 31st Floor 
 Boston, MA 02109 

Attention: Warren Naphtal 

Email: wnaphtal@peinvestments.com; 

operations@peinvestments.com 

13. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 

14. ARBITRATION. The parties agree that any dispute or controversy arising out of or relating to this Agreement or the interpretation
thereof, shall be settled by arbitration in accordance with the rules, then in effect, of NFA or, if NFA shall refuse jurisdiction, then in accordance with the rules, then in effect, of the American Arbitration Association; provided,
however, that the power of the arbitrator shall be limited to interpreting this Agreement as written and the arbitrator shall state in writing his reasons for his award, and further provided, that any such arbitration shall occur within the
Borough of Manhattan in New York City. Judgment upon any award made by the arbitrator may be entered in any court of competent jurisdiction. 

15. NO THIRD PARTY BENEFICIARIES. There are no third party beneficiaries to this Agreement, except that certain persons not parties to
this Agreement may have rights under Section 6 hereof. 
 16. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, including via facsimile or email, each of which is an original and all of which when taken together evidence the same agreement. 

  
 - 13 - 

 PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF
QUALIFIED ELIGIBLE PERSONS, THIS ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY
OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS ACCOUNT DOCUMENT. 

YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY TRADING ADVISOR MAY ENGAGE IN TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS ON MARKETS LOCATED
OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE
ENFORCEMENT OF THE RULES OF REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE YOUR TRANSACTIONS MAY BE EFFECTED. 

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] 

  
 - 14 - 

 IN WITNESS WHEREOF, this Agreement has been executed for and on behalf of the undersigned as of
the day and year first above written. 
  

			
	CERES MANAGED FUTURES LLC
		
	By	 	 /s/ Patrick T. Egan

		 	Patrick T. Egan
		 	President and Director
	
	CERES TACTICAL CURRENCY L.P.
		
	By:	 	 Ceres Managed Futures LLC
 (General
Partner)

		
	By	 	 /s/ Patrick T. Egan

		 	Patrick T. Egan
President and Director
	
	P/E GLOBAL LLC
		
	By	 	 /s/ Warren Naphtal

		 	Name: Warren Naphtal
		 	Title: President

  
 - 15 - 

 Appendix A 

Pursuant to Section 1(b) of the Agreement, set forth below is the description of the Advisor’s FX Standard Strategy. The Advisor shall, at all
times, comply with each and every Investment Guideline set forth herein; provided, however, that notwithstanding the guidelines set forth herein, in the event of a specific direction(s) by CMF, the Advisor will act in accordance with such
direction(s). 
 Trading Strategy: FX Strategy (Standard)–MS (the “Strategy”). 

The Strategy is a proprietary investment strategy of the Advisor. The Strategy is focused on the global currency markets. The Strategy is based on the belief
of the Advisor that, by combining effective diversification, through analysis and continuous risk management, the investment objectives of the Strategy can be met with greater consistency. 

The Strategy employs a quantitative Bayesian statistical approach that takes advantage of inefficiencies in the global markets, analyzing fundamental factors
in a disciplined format and adjusting to market changes. 
 Investment Objective: To generate strong risk-adjusted returns. 

Permitted Investments: Exchange traded currency futures contracts. 

Permitted Currencies: Exposures to the US Dollar, Australian Dollar, Euro, British Pound, Japanese Yen, Canadian Dollar, Swiss Franc, Norwegian
Krona, New Zealand Dollar, Swedish Krona, Brazilian Real, Mexican Peso and such other currencies as may be agreed from time to time by the parties. 

Exposure Limits: The gross notional exposure which is the sum of all of the absolute values of the positions (long or short) should not exceed 300% of
the Allocated Amount. 
 Amendments: Changes and exceptions to the Investment Guidelines are subject to the prior approval of both parties. 

  
 - 16 - 

 Appendix B 

The Partnership, either directly or indirectly through its investment in the Master Fund, and the Advisor will follow the trading policies set forth below:

 1. The Partnership will invest its assets only in commodity interests that the Advisor believes are traded in sufficient volume to permit ease of taking
and liquidating positions. Sufficient volume, in this context, refers to a level of liquidity that the Advisor believes will permit it to enter and exit trades without noticeably moving the market. 

2. The Advisor will not initiate additional positions in any commodity interest if these positions would result in aggregate positions requiring margin of more
than 66 2/3% of the Partnership’ net assets allocated to the Advisor. To the extent the CFTC and/or exchanges have not otherwise established margin requirements with respect to particular contracts (i) forward contracts in currencies
will be deemed to have approximately the same margin requirements as the same or similar futures contracts traded on the Chicago Mercantile Exchange and (ii) swap contracts will be deemed to have margin requirements equivalent to the collateral
deposits, if any, made with swap counterparties. 
 3. The Partnership may occasionally accept delivery of a commodity. Unless such delivery is disposed of
promptly by retendering the warehouse receipt representing the delivery to the appropriate clearinghouse, the physical commodity position will be fully hedged. 

4. The Advisor will not employ the trading technique commonly known as “pyramiding,” in which the speculator uses unrealized profits on existing
positions as margin for the purchase or sale of additional positions in the same or related commodities. 
 5. The Partnership will not utilize borrowings
except short-term borrowings if the Partnership takes delivery of any cash commodities. 
 6. The Advisor may, from time to time, employ trading strategies
such as spreads or straddles on behalf of the Partnership. The term “spread” or “straddle” describes a commodity futures trading strategy including the simultaneous holding of futures contracts on the same commodity but involving
different delivery dates or markets and in which the trader expects to earn a profit from a widening or narrowing of the difference between the prices of the two contracts. 

7. The Partnership will not permit, and the Advisor will not engage in, the churning of its commodity trading accounts. The term “churning” refers to
the practice of entering and exiting trades with a frequency unwarranted by legitimate efforts to profit from the trades, driven by the desire to generate commission income. 

The program traded by the Advisor on behalf of the Partnership is the FX Strategy (Standard)(the “Program”) which is described in Appendix A. 

  
 - 17 - 

 Appendix C 

Qualified Eligible Person Status 
 Only one need
apply – Please check if you are: 
  

	☐	1) A person who owns securities and other investments with an aggregate market value of at least $2mm.* 

  

	☐	2) A person who is not a United States resident. 

  

	☒	3) A company who has aggregate assets in excess of $5mm. ** 

  

	☐	4) A company who is organized and whose principal place of business is outside the United States.** 

  

	☐	5) An estate or trust, the income of which is not subject to United States income tax regardless of source. 

  

	☐	6) An entity whose participants owns securities and other investments with an aggregate market value of at least $2mm. * 

  

	☐	7) Other (Please Provide
Rationale):                                       
                                         
                                         
                

	                                  
                                         
                                         
                                         
                                         
    	

	                                  
                                         
                                         
                                         
                                         
    	

	                                  
                                  	

  

	*	Excluding securities of issuers affiliated with client. 

	**	Company not formed with the specific purpose of opening an exempt account. 

  
 - 18 -Exhibit
10.1

 

EXCHANGE
AGREEMENT

 

THIS
EXCHANGE AGREEMENT (this “Agreement”) is made and entered into as of September 29, 2017, by and among ATRM
Holdings, Inc., a Minnesota corporation (the “Company”), Lone Star Value Investors, LP, a Delaware limited
partnership (“LSVI”), and Lone Star Value Co-Invest I, LP, a Delaware limited partnership (“LSV Co-Invest
I”, and together with LSVI, the “Holders”).

 

RECITALS

 

WHEREAS,
the Company has issued to the Holders unsecured promissory notes with such principal amounts and accrued and unpaid interest outstanding
as set forth on Exhibit A (collectively, the “Notes”);

 

WHEREAS,
the Company and each Holder have agreed, subject to and on the terms and conditions set forth in this Agreement, that the Holder
shall exchange the Notes for shares of a new class of Series B Preferred Stock, par value $0.001 per share (the “Preferred
Stock”), of the Company as set forth on Exhibit A (the “Shares”); and

 

WHEREAS,
the Company has filed a Statement of Designation with respect to the Preferred Stock as attached hereto as Exhibit B (the
“Statement of Designation”) with the Secretary of State of the State of Minnesota.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants and agreements set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE
I - EXCHANGE OF SECURITIES

 

Section
1.01. Authorization of Issue. Prior to the Closing (as defined below), the Company shall have duly authorized the delivery
to the Holders of the Shares.

 

Section
1.02. Exchange of the Notes. Subject to the terms and conditions set forth in this Agreement, each Holder hereby agrees
to exchange at the Closing (the “Exchange”) its Notes for such number of Shares as set forth on Exhibit
A. The Notes exchanged pursuant to this Agreement shall be cancelled.

 

Section
1.03. Registration. Pursuant to the terms of that certain Registration Rights Agreement, dated as of September 29, 2017,
by and among the Company and the Holders (the “RRA”), the Shares issued to each Holder pursuant to the Exchange
constitute Registrable Securities (as defined in the RRA) that are subject to the terms of the RRA.

 

Section
1.04. Outstanding Debt Agreement Acknowledgements. Each of the Company and each Holder hereby acknowledges and agrees that
the Company is party to certain Loan and Security Agreements (the “Credit Agreements”) with Gerber
Finance Inc. (“Gerber Finance”), pursuant to which the Company is prohibited from paying or becoming obligated
to pay dividends, with certain limited exceptions, and is limited as to the incurrence of any liability or distribution of cash
or other property in respect of the Company’s equity securities, subject to certain exceptions set forth in the Credit Agreements,
including the Fifth Agreement of Amendment to Loan and Security Agreement (KBS) and Third Agreement of Amendment to Loan and Security
Agreement (EBGL Acquisition), each dated as of the date hereof, which permit the parties’ entry into this Agreement and
the transactions contemplated thereby.

 

    	 	 	 

    	 

    

 

ARTICLE
II - CLOSING DATE; DELIVERY

 

Section
2.01. Closing and Location. The closing of the Exchange (the “Closing”) shall take place on September
29, 2017, or on such other date as shall be mutually agreed to by the Company and the Holders (the “Closing Date”),
at the offices of Olshan Frome Wolosky LLP, 1325 Avenue of the Americas, New York, New York, or such other place as shall be mutually
agreed to by the Company and the Holders.

 

Section
2.02. Issuance. At the Closing, the Company shall instruct its transfer agent to issue the Shares to the respective Holders
on the books and records of the Company and the Notes shall be cancelled.

 

Section
2.03. Consummation of Closing. All acts, deliveries and confirmations comprising the Closing, regardless of chronological
sequence, shall be deemed to occur contemporaneously and simultaneously upon the occurrence of the last act, delivery or confirmation
of the Closing and none of such acts, deliveries or confirmations shall be effective unless and until the last of same shall have
occurred.

 

Section
2.04. No Further Ownership Rights in the Notes. From and after the Closing, each Holder shall cease to have any rights
with respect to its Notes exchanged pursuant to this Agreement, including any payments of outstanding principal and accrued and
unpaid interest, except as otherwise provided herein or by applicable law.

 

ARTICLE
III - REPRESENTATIONS AND WARRANTIES

 

Section
3.01. Representations and Warranties of the Company. The Company represents and warrants to each Holder that the following
statements are true, correct and complete as of the date hereof:

 

(a)
Corporate Organization. The Company is a corporation duly organized, validly existing and in good standing under the laws
of the State of Minnesota, and has all requisite corporate power and authority to own, operate and lease its properties and to
carry on its business as and in the places where such properties are now owned, operated and leased or such business is now being
conducted.

 

(b)
Authorization. The Company has the necessary corporate power and authority to enter into this Agreement and to carry out
the transactions contemplated by, and perform its obligations, hereunder. The execution and delivery of this Agreement and the
performance by the Company of its obligations hereunder have been duly authorized by the Board of Directors of the Company. This
Agreement is the legally valid and binding obligation of the Company, enforceable against it in accordance with its terms, except
as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or limiting
creditors’ rights generally or by equitable principles relating to enforceability.

 

    	 	 2	 

    	 

    

 

(c)
No Violation or Breach. Neither the execution and delivery of this Agreement, nor the consummation by the Company of the
transactions contemplated hereby, (i) will violate or cause a default under any judgment, order, writ or decree of any court or
governmental authority applicable to the Company, (ii) breach or conflict with the provisions of the constituent documents of
the Company, or (iii) violate, conflict with or breach any agreement, arrangement, document or instrument to which the Company
is a party or by which it is bound.

 

(d)
Approvals and Consents. The Company is not required to perform any act or obtain any consent, authorization, approval or
order of, or make any filing or registration with, any court or governmental agency, or quasi-governmental agency commission,
board, bureau, or instrumentality in order for it to execute, deliver or perform any of its obligations under this Agreement or
to complete the Exchange in accordance with the terms hereof.

 

(e)
Brokers and Finders. The Company nor its officers, directors, managers or employees has employed any broker, finder, investment
banker, financial advisor or similar professional or incurred any liability for any investment banking fees, brokerage fees, commissions
or finders’ fees in connection with the transactions contemplated by this Agreement.

 

(f)
SEC Reporting and Compliance. None of the Company’s registration statements, proxy statements, information statements
and reports filed with the Securities and Exchange Commission (“SEC”) since January 1, 2016, as of their respective
dates, contained any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements
contained therein not misleading.

 

(g)
Shares Duly Issued. The Shares to be issued to each Holder in accordance with the terms hereof shall be, when issued, duly
and validly issued, fully paid and nonassessable.

 

(h)
Compliance with Other Instruments. The Company is not in violation or default (i) of any provisions of its Amended and
Restated Articles of Incorporation or Bylaws, each as amended to date, (ii) of any instrument, judgment, order, writ or decree,
(iii) under any note, indenture or mortgage, or (iv) under any lease, agreement, contract or purchase order to which it is a party
or by which it is bound, or of any provision of federal or state statute, rule or regulation applicable to the Company, the violation
of which would have a material adverse effect. The execution, delivery and performance of this Agreement and the consummation
of the transactions contemplated hereby will not result in any such violation or be in conflict with or constitute, with or without
the passage of time and giving of notice, either (A) a default under any such provision, instrument, judgment, order, writ, decree,
contract or agreement or (B) an event that results in the creation of any lien, charge or encumbrance upon any assets of the Company
or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company.

 

Section
3.02. Representations and Warranties of the Holders. Each Holder, severally and not jointly, represents and warrants to
the Company that the following statements are true, correct and complete as of the date hereof:

 

    	 	 3	 

    	 

    

 

(a)
Organization. The Holder is a limited partnership duly organized, validly existing and in good standing under the laws
of the State of Delaware, and has all requisite power and authority to own, lease and operate its properties and to carry on its
business as and in the places where such properties are now owned, operated and leased or such business is now being conducted.

 

(b)
Authorization. The Holder has the necessary power and authority to enter into this Agreement and to carry out the transactions
contemplated by, and perform its obligations, hereunder. The execution and delivery of this Agreement and the performance by the
Holder of its obligations hereunder have been duly authorized by all necessary action on its part. This Agreement is the legally
valid and binding obligation of the Holder, enforceable against it in accordance with its terms, except as enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or limiting creditors’ rights
generally or by equitable principles relating to enforceability.

 

(c)
No Violation or Breach. Neither the execution and delivery of this Agreement, nor the consummation by the Holder of the
transactions contemplated hereby, (i) will violate or cause a default under any judgment, order, writ or decree of any court or
governmental authority applicable to the Holder, (ii) violate any provision of law, rule or regulation applicable to it or its
certificate of incorporation or by-laws (or other organizational document) or (iii) conflict with, result in a breach of or constitute
(with due notice or lapse of time or both) a default under any material contractual obligation to which it is a party.

 

(d)
Governmental Consents. The execution, delivery and performance by it of this Agreement do not and will not require any
registration or filing with, consent or approval of, or notice to, or other action to, with or by, any federal, state or other
governmental authority or regulatory body, but for that required under the Securities Exchange Act of 1934, as amended, and the
Securities Act of 1933, as amended (the “Securities Act”), and other SEC and Financial Industry Regulatory
Authority monitored regulations.

 

(e)
Ownership of the Note. The Holder is the beneficial owner of its Notes, free and clear of all liens (other than obligations
pursuant to this Agreement).

 

(f)
Purchase Entirely for Own Account. The Holder is acquiring the Shares for its own account, for investment purposes and
not with a view to the distribution thereof, except in compliance with the Securities Act. The Holder understands that the Shares
issued to it may not be resold except pursuant to an effective registration statement filed under the Securities Act or pursuant
to an exemption from registration thereunder.

 

(g)
Investment Experience. The Holder has such knowledge and experience in financial and business affairs that the Holder is
capable of evaluating the merits and risks of an investment in the Shares. The Holder is either a “qualified institutional
buyer” as defined in Rule 144A under the Securities Act or an “accredited investor” as defined in Regulation
D under the Securities Act, and was not organized for the purpose of acquiring the Shares. The Holder has previously invested
in securities similar to the Shares. In making its decision to invest in the Shares, the Holder has relied upon independent investigations
made by the Holder and, to the extent believed by the Holder to be appropriate, the Holder’s representatives, including
the Holder’s own professional, tax and other advisors. The Holder and its representatives have been given the opportunity
to examine documents and to ask questions of, and to receive answers from, the Company and its representatives concerning the
terms and conditions of its investment in the Shares. The Holder is able to bear the economic risk of its investment in the Shares
and is presently able to afford the complete loss of such investment. The Holder acknowledges that the Company is relying on the
truth and accuracy of the foregoing representations and warranties in the offering of the Shares to the Holder without first having
registered the Shares under the Securities Act.

 

    	 	 4	 

    	 

    

 

(h)
Restricted Securities. It has been advised by the Company that (i) the offer and sale of the Shares have not been registered
under the Securities Act; (ii) the offer and sale of the Shares are intended to be exempt from registration under the Securities
Act pursuant to either Rule 144A or Regulation D under the Securities Act; and (iii) there is no established market for the Shares,
and it is not anticipated that there will be any active public market for the Shares in the foreseeable future. The Holder is
familiar with Rule 144 promulgated by the SEC under the Securities Act, as presently in effect, and understands the resale limitations
imposed thereby and by the Securities Act.

 

ARTICLE
IV - CONDITIONS TO CLOSING

 

Section
4.01. Holder’s Conditions to Closing. The obligations of each Holder to complete the Exchange shall be subject to
the following conditions: (a) the representations and warranties of the Company contained in this Agreement shall be true and
correct as of the Closing as though made on and as of the Closing Date, (b) the Company shall have performed all of its obligations
and covenants under this Agreement, (c) no decision, order or similar ruling shall have been issued (and remain in effect) restraining
or enjoining the transactions contemplated by this Agreement; and (d) from the date hereof to the date of Closing, there shall
not have occurred any change, event, occurrence, fact condition, development or effect that, individually or in the aggregate,
has had, or is reasonably likely to have, a material adverse effect upon the business, assets, operations, properties, financial
position, results of operations, prospects or liabilities of the Company or any adverse effect upon the consummation of this Agreement
or any of the transactions contemplated hereby.

 

Section
4.02. Company’s Conditions to Closing. The Company’s obligations to complete the Exchange with respect to each
Holder shall be subject to the following conditions: (a) the representations and warranties of the Holder contained in this Agreement
shall be true and correct as of the Closing as though made on and as of the Closing Date, (b) the Holder having delivered its
original Notes to the Company for cancellation, (c) the Holder shall have performed all of its obligations and covenants under
this Agreement, (d) no decision, order or similar ruling shall have been issued (and remain in effect) restraining or enjoining
the transactions contemplated by this Agreement; and (e) from the date hereof to the date of Closing, there shall not have occurred
any change, event, occurrence, fact condition, development or effect that, individually or in the aggregate, has had, or is reasonably
likely to have, a material adverse effect upon the business, assets, operations, properties, financial position, results of operations,
prospects or liabilities of the Company or any adverse effect upon the consummation of this Agreement or any of the transactions
contemplated hereby.

 

    	 	 5	 

    	 

    

 

ARTICLE
V - INDEMNIFICATION

 

Section
5.01. Indemnification by the Holders. Each Holder agrees to indemnify and hold the Company Indemnified Persons (as defined
below) harmless from any and all Losses (as defined below) (including taxes) that the Company Indemnified Persons may incur due
to:

 

(a)
any significant inaccuracy or breach of any of the representations and warranties given by the Holder herein; or

 

(b)
the nonfulfillment or breach of any covenant, undertaking, agreement or other obligation of the Holder contained herein.

 

Section
5.02. Indemnification by the Company. The Company agrees to indemnify and hold the Holder Indemnified Persons harmless
from any and all Losses (including Taxes) that the Holder Indemnified Person may incur due to:

 

(a)
any significant inaccuracy or breach of any of the representations and warranties of the Company contained herein; or

 

(b)
the nonfulfillment or breach of any covenant, undertaking, agreement or other obligation of the Company contained herein.

 

Section
5.03. Survival of Indemnification. The representations and warranties of the parties contained in this Agreement and the
rights to indemnification under this Agreement with respect thereto will survive the Closing Date for a period of eighteen (18)
months after the Closing Date.

 

Section
5.04. Third Party Claims.

 

(a)
A party entitled to indemnification hereunder (an “Indemnified Party”) shall notify promptly the indemnifying
party (the “Indemnifying Party”) in writing of the commencement of any action or proceeding with respect to
which a claim for indemnification may be made pursuant to this Agreement; provided, however, that the failure of any Indemnified
Party to provide such notice shall not relieve the Indemnifying Party of its obligations under this Agreement, except to the extent
the Indemnifying Party is actually materially prejudiced thereby. In case any claim, action or proceeding is brought against an
Indemnified Party and the Indemnified Party notifies the Indemnifying Party of the commencement thereof, the Indemnifying Party
shall be entitled to participate therein and to assume the defense thereof, to the extent that it chooses, with counsel reasonably
satisfactory to such Indemnified Party, and after notice from the Indemnifying Party to such Indemnified Party that it so chooses,
the Indemnifying Party shall not be liable to such Indemnified Party for any legal or other expenses subsequently incurred by
such Indemnified Party in connection with the defense thereof other than reasonable costs of investigation; provided, however,
that (i) if the Indemnifying Party fails to take reasonable steps necessary to defend diligently the action or proceeding within
twenty (20) calendar days after receiving notice from such Indemnified Party that the Indemnified Party believes it has failed
to do so, or (ii) if such Indemnified Party who is a defendant in any claim or proceeding which is also brought against the Indemnifying
Party reasonably shall have concluded that there may be one or more legal defenses available to such Indemnified Party which are
not available to the Indemnifying Party, or (iii) if representation of both parties by the same counsel is otherwise inappropriate
under applicable standards of professional conduct, then, in any such case, the Indemnified Party shall have the right to assume
or continue its own defense as set forth above (but with no more than one firm of counsel for all Indemnified Parties in each
jurisdiction), and the Indemnifying Party shall be liable for any expenses therefor.

 

    	 	 6	 

    	 

    

 

(b)
No Indemnifying Party shall, without the written consent of the Indemnified Party, effect the settlement or compromise of, or
consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification
may be sought hereunder (whether or not the Indemnified Party is an actual or potential party to such action or claim) unless
such settlement, compromise or judgment (i) includes an unconditional release of the Indemnified Party from all liability arising
out of such action or claim, (ii) does not include a statement as to or an admission of fault, culpability or a failure to act,
by or on behalf of any Indemnified Party and (iii) does not include any injunctive or other non-monetary relief to the detriment
of the Indemnified Party.

 

Section
5.05. Notwithstanding anything herein to the contrary, no reimbursement for Losses asserted against Indemnifying Party under this
Agreement shall be required unless and until the cumulative aggregate amount of such Losses equals or exceeds $25,000, and then
from the first dollar of such Losses, as determined up to a maximum of such amount that is equal to the aggregate Stated Value
of the Shares.

 

Section
5.06. For purposes of this Section 5, “Company Indemnified Persons” means the Company, its affiliates and their
respective stockholders, partners, members, managers, directors, officers, employees, agents, affiliates, representatives and
consultants and each of their respective heirs, executors, owners, successors and assigns.

 

Section
5.07. For purposes of this Section 5, “Holder Indemnified Persons” means each Holder, its affiliates and their
respective stockholders, partners, members, managers, directors, officers, employees, agents, affiliates, representatives and
consultants and each of their respective heirs, executors, owners, successors and assigns.

 

Section
5.08. For purposes of this Section 5, “Losses” means any and all liabilities, obligations, losses, debts, charges,
judgments, fines, penalties, amounts paid in settlement, damages, costs, expenses, claims, fees and expenses (including the expense
of investigation and reasonable attorneys’ fees and expenses in connection therewith).

 

ARTICLE
VI - MISCELLANEOUS

 

Section
6.01. Definitions. Capitalized terms used herein but not specifically defined herein shall have the meanings ascribed to
them in the Certificate of Designation.

 

Section
6.02. Successors and Assigns. This Agreement is intended to bind and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

 

Section
6.03. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties hereto with
regard to the subject matter hereof and supersedes all prior agreements with respect thereto.

 

    	 	 7	 

    	 

    

 

Section
6.04. Effectiveness; Amendments. This Agreement shall not become effective and binding on a party hereto unless and until
a counterpart signature page to this Agreement has been executed and delivered by such party. Once effective, this Agreement may
not be modified, amended or supplemented, nor may any of the conditions to Closing be waived, except in a writing signed by the
Company and the Holders.

 

Section
6.05. Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

Section
6.06. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original
and all of which together shall constitute one and the same Agreement. Delivery of an executed signature page of this Agreement
by telecopier or e-mail shall be effective as delivery of a manually executed signature page of this Agreement.

 

Section
6.07. Headings. The headings of the sections and subsections of this Agreement are inserted for convenience only and shall
not affect the interpretation hereof.

 

Section
6.08. Governing Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York, regardless of the laws that might otherwise govern under applicable principles of conflict of laws of the State
of New York. The parties hereby irrevocably submit to the non-exclusive jurisdiction of any federal or state court located within
the borough of Manhattan of the City, County and State of New York over any dispute arising out of or relating to this Agreement
or any of the transactions contemplated hereby. The parties hereby irrevocably waive, to the fullest extent permitted by applicable
law, jury trial and any objection which they may now or hereafter have to the laying of venue of any such dispute brought in such
court or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a judgment
in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

Section
6.09. Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given
(a) when delivered personally by hand (with written confirmation of receipt), (b) when sent by facsimile (with written confirmation
of transmission) or (c) one business day following the day sent by overnight courier (with written confirmation of receipt), in
each case at the following addresses and facsimile numbers (or to such other address or facsimile number as a party may have specified
by notice given to the other party(ies) pursuant to this provision):

 

    	 	 8	 

    	 

    

 

	 	(a)	If
    to the Company, to:

 

ATRM
Holdings, Inc.

5215
Gershwin Avenue N.

Oakdale,
Minnesota 55128

Attention:
Daniel M. Koch, President and Chief Executive Officer

 

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

 

Olshan
Frome Wolosky LLP

1325
Avenue of the Americas

New
York, New York 10022

Facsimile:
(212) 451-2222

Attention:
Adam W. Finerman, Esq.

 

	 	(b)	If
    to the Holders, to:

 

Lone
Star Value Investors, LP

Lone
Star Value Co-Invest I, LP

53
Forest Avenue, 1st Floor

Old
Greenwich, Connecticut 06870

Facsimile:
(203) 990-0727

Attention:
Mr. Jeffrey E. Eberwein, Manager

                  and

                  Ms.
Hannah Bible, General Counsel

 

Section
6.10. Specific Performance. Each party hereto recognizes and acknowledges that a breach by it of any covenants or agreements
contained in this Agreement will cause the other party to sustain damages for which such party would not have an adequate remedy
at law for money damages, and therefore each party hereto agrees that in the event of any such breach the other party may seek
the remedy of specific performance of such covenants and agreements and injunctive and other equitable relief (without the requirement
to post bond or other security) in addition to any other remedy to which such party may be entitled, at law or in equity.

 

Section
6.11. Remedies Cumulative. All rights, powers and remedies provided under this Agreement or otherwise available in respect
hereof at law or in equity shall be cumulative and not alternative, and the exercise of any right, power or remedy thereof by
any party shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party.

 

Section
6.12. No Waiver. The failure of any party hereto to exercise any right, power or remedy provided under this Agreement or
otherwise available in respect hereof at law or in equity, or to insist upon compliance by the other party hereto with its obligations
hereunder, and any custom or practice of the parties at variance with the terms hereof, shall not constitute a waiver by such
party of its right to exercise any such or other right, power or remedy or to demand such compliance.

 

Section
6.13. No Third Party Beneficiaries. This Agreement is not intended to be for the benefit of, and shall not be enforceable
by, any person who or which is not a party hereto.

 

Section
6.14. Representation by Counsel. Each Holder acknowledges that Olshan Frome Wolosky LLP represents the Company and does
not, and did not, represent the Holder in connection with this Agreement and the Exchange. Each of the Company and each Holder
acknowledges that it has been represented by counsel in connection with this Agreement and the transactions contemplated by this
Agreement. Accordingly, any rule of law or any legal decision that would provide any party with a defense to the enforcement of
the terms of this Agreement against such party based upon lack of legal counsel shall have no application and is expressly waived.

 

[Signature
Pages Follow]

 

    	 	 9	 

    	 

    

 

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

 

	COMPANY:	ATRM
    HOLDINGS, INC.
	 	 	 
	 	By:	/s/
    Daniel M. Koch
	 	Name:	Daniel
    M. Koch
	 	Title:	President
    and Chief Executive Officer

 

	HOLDERS:	LONE
    STAR VALUE INVESTORS, LP
	 	By: Lone Star Value Investors GP, LLC,

                                                                     General Partner

	 	 	 
	 	By:	/s/
    Jeffrey E. Eberwein
	 	Name:	Jeffrey
    E. Eberwein
	 	Title:	Manager

 

	 	Lone
    Star Value Co-Invest I, LP
	 	By: Lone Star Value Investors GP, LLC,

                                                                     General Partner

	 	 	 
	 	By:	/s/
Jeffrey E. Eberwein
	 	Name:	Jeffrey
    E. Eberwein
	 	Title:	Manager

 

SIGNATURE
PAGE TO EXCHANGE AGREEMENT

 

    	 	 	 

    	 

    

 

Exhibit
A

 

	Holder	 	Issuance Date	 	Principal Amount Outstanding	 	 	Accrued and Unpaid Interest Outstanding	 	 	Shares of Series B Preferred Stock	 
	Lone Star Value Investors, LP	 	April 1, 2014	 	$	4,795,189.27	 	 	$	145,454.07	 	 	 	49,406	 
	Lone Star Value Co-Invest I, LP	 	July 21, 2014	 	$	2,984,098.46	 	 	$	90,517.65	 	 	 	30,746	 
	Lone Star Value Co-Invest I, LP	 	September 19, 2014	 	$	2,387,278.76	 	 	$	72,414.12	 	 	 	24,597	 
	Lone Star Value Co-Invest I, LP	 	October 4, 2016	 	$	2,182,872.89	 	 	$	66,213.81	 	 	 	22,491	 
	Lone Star Value Co-Invest I, LP	 	March 31, 2017	 	$	515,166.67	 	 	$	15,626.72	 	 	 	5,308	 
	 	 	 	 	 	 	 	 	 	TOTAL	 	 	 	132,548	 

 

    	 	 	 

    	 

    

 

Exhibit
B

 

Statement
of Designation

 

    	 	 	 

    	 

    

 

STATEMENT OF DESIGNATION

OF

10.00% SERIES B CUMULATIVE PREFERRED STOCK

OF

ATRM HOLDINGS, INC.

 

Pursuant to Section 302A.401 Subd. 3(b)
of the

Minnesota Statutes

 

The undersigned, Daniel
M. Koch, does hereby certify that:

 

1. He is the duly
elected and acting President and Chief Executive Officer of ATRM Holdings, a Minnesota corporation (the “Corporation”).

 

2. Pursuant to the
authority conferred upon the Board of Directors of the Corporation (the “Board”) by the Amended and Restated
Articles of Incorporation of the Corporation and in accordance with the provisions of Minnesota Statutes Section 302A.401, subd.
3(b), effective September 29, 2017, the Board adopted the following resolution creating a series of preferred stock, par value
$0.001 per share (“Preferred Stock”), of the Corporation designated as 10.00% Series B Cumulative Preferred
Stock:

 

WHEREAS, the Amended
and Restated Articles of Incorporation of the Corporation (the “Articles of Incorporation”) provide for
200,000 shares of undesignated stock, of which 3,000 shares are presently designated or authorized; and

 

WHEREAS, the Board
is authorized to fix the rights, preferences and restrictions, including without limitation, as to distributions, of any undesignated
shares and the number of shares constituting any series and the designation thereof.

 

NOW, THEREFORE, BE IT
RESOLVED, that pursuant to the authority vested in the Board by the Articles of Incorporation, the Board does hereby provide
for the issuance of a series of Preferred Stock and does hereby fix and herein state and express the designations, powers, preferences
and relative and other special rights, and the qualifications, limitations and restrictions, of such series of Preferred Stock
as follows:

 

Section 1. Number
of Shares and Designation. This series of Preferred Stock shall be designated as 10.00% Series B Cumulative Preferred Stock,
par value $0.001 per share (the “Series B Preferred Stock”), and the number of shares that shall constitute
such series shall be 160,000.

 

Section 2. Definitions.
For purposes of the Series B Preferred Stock and as used in this Statement, the following terms shall have the meanings indicated:

 

“Business Day”
shall mean any day other than a Saturday, Sunday or a day on which state or federally chartered banking institutions in New York,
New York are not required to be open.

 

    	 	 	 

    	 	 

     

“Bylaws”
shall mean the Bylaws of the Corporation, as may be amended from time to time.

 

“Common Stock”
shall mean the common stock, $0.001 par value, of the Corporation.

 

“Dividend Default”
shall mean the Corporation’s failure to pay dividends (either in cash or in-kind) on the Series B Preferred Stock in full
for any Dividend Period in accordance with Section 3 hereof.

 

“Dividend Payment
Date” shall have the meaning set forth in paragraph (a) of Section 3 hereof.

 

“Dividend Periods”
shall mean quarterly dividend periods commencing on the first day of each of January, April, July and October and ending on and
including the day preceding the first day of the next succeeding Dividend Period.

 

“Dividend Rate”
shall mean the dividend rate accruing on the Series B Preferred Stock, as applicable from time to time pursuant to the terms hereof.

 

“Dividend Record
Date” shall have the meaning set forth in paragraph (a) of Section 3 hereof.

 

“Exchange Act”
shall mean the U.S. Securities Exchange Act of 1934, as amended.

 

“Junior Shares”
shall have the meaning set forth in paragraph (c) of Section 6 hereof.

 

“Parity Shares”
shall have the meaning set forth in paragraph (b) of Section 6 hereof.

 

“Penalty Rate”
shall mean 12.00% per annum.

 

“Person”
shall mean any individual, firm, partnership, limited liability company, corporation or other entity, and shall include any successor
(by merger or otherwise) of such entity.

 

“SEC”
shall have the meaning set forth in Section 8 hereof.

 

“Senior Shares”
shall have the meaning set forth in paragraph (a) of Section 6 hereof.

 

“Series B Preferred
Stock” shall have the meaning set forth in Section 1 hereof.

 

“set apart
for payment” shall be deemed to include, without any further action, the following: the recording by the Corporation
in its accounting ledgers of any accounting or bookkeeping entry that indicates, pursuant to an authorization by the Board and
a declaration of dividends or other distribution by the Corporation, the initial and continued allocation of funds to be so paid
on any series or class of shares of stock of the Corporation; provided, however, that if any funds for any class or series of Junior
Shares or any class or series of Parity Shares are placed in a separate account of the Corporation or delivered to a disbursing,
paying or other similar agent, then “set apart for payment” with respect to the Series B Preferred Stock shall mean
irrevocably placing such funds in a separate account or irrevocably delivering such funds to a disbursing, paying or other similar
agent.

 

    	 	2 	 

    	 	 

     

“Stated Rate”
shall mean 10.00% per annum.

 

“Statement”
shall mean this Statement of Designation of the Series B Preferred Stock.

 

“Stated Value”
shall mean $100.00 (as appropriately adjusted by the Board to reflect any Stock Split with respect to the Common Stock).

 

“Stock Split”
shall mean any stock splits (including those effected pursuant to a Common Stock dividend), subdivisions or combinations.

 

“Transfer Agent”
means Computershare, or such other agent or agents of the Corporation as may be designated by the Board or its duly authorized
designee as the transfer agent, registrar and dividend disbursing agent for the Series B Preferred Stock.

 

“Voting Preferred
Shares” shall have the meaning set forth in Section 7 hereof.

 

“Voting Stock”
shall mean stock of any class or kind having the power to vote generally for the election of directors.

 

Section 3. Dividends.

 

(a) Holders of Series B
Preferred Stock shall be entitled to receive, when, as and if declared by the Board or a duly authorized committee thereof, in
its sole discretion, out of funds of the Corporation legally available for the payment of distributions, cumulative preferential
cash dividends per share at a rate per annum equal to the Dividend Rate multiplied by the Stated Value (as of the date hereof equivalent
to an annual amount of $10.00 per share); provided, however, if the Corporation at its sole option elects to do so
prior to a Dividend Period, for up to four Dividend Periods in any consecutive 36-month period (determined on a rolling basis),
dividends for such Dividend Period may be paid in-kind through the issuance of additional shares of Series B Preferred Stock to
Holders of Series B Preferred Stock at a rate per annum equal to the Penalty Rate multiplied by the Stated Value; provided,
further, that dividends for the Dividend Period ending September 30, 2017 shall be paid in-kind and such Dividend Period
shall not be counted towards the four Dividend Periods in any consecutive 36-month period (determined on a rolling basis) for which
the Corporation may elect to pay in-kind. Except as otherwise provided in paragraphs (b) and (c) of this Section 3, the Dividend
Rate shall be equal to the Stated Rate. Such dividends shall accrue and accumulate, whether or not earned or declared, on each
issued and outstanding share of the Series B Preferred Stock from (and including) the original date of issuance of such share and
shall be payable quarterly in arrears on the last calendar day of each Dividend Period, except for dividends for the Dividend Period
ending September 30, 2017, which shall be payable at the end of the next Dividend Period (each such day being hereinafter called
a “Dividend Payment Date”); provided that (i) Series B Preferred Stock issued during any Dividend Period
after the Dividend Record Date for such Dividend Period shall only begin to accrue dividends on the first day of the next Dividend
Period; and provided, further, that (ii) if any Dividend Payment Date is not a Business Day, then the dividend that would otherwise
have been payable on such Dividend Payment Date (if declared) may be paid on the next succeeding Business Day with the same force
and effect as if paid on such Dividend Payment Date, and no interest or additional dividends or other sums shall accrue on the
amount so payable from such Dividend Payment Date to such next succeeding Business Day. Any dividend payable on the Series B Preferred
Stock for any partial Dividend Period shall be prorated and computed on the basis of a 360-day year consisting of twelve 30-day
months. Dividends shall be payable to holders of record as they appear in the stock records of the Corporation at the close of
business on the applicable record date, which shall be the 15th day of the month in which the applicable Dividend Payment
Date occurs, or such other date designated by the Board or an officer of the Corporation duly authorized by the Board for the payment
of dividends that is not more than 30 nor less than 10 days prior to such Dividend Payment Date (each such date, a “Dividend
Record Date”).

 

    	 	3 	 

    	 	 

     

(b) Upon the occurrence
of four accumulated, accrued and unpaid Dividend Defaults, whether consecutive or non-consecutive, then:

 

(i) the Dividend
Rate shall increase to the Penalty Rate for each subsequent Dividend Payment Date thereafter until such time as the Corporation
has paid all accumulated accrued and unpaid dividends on the Series B Preferred Stock in full and has paid accrued dividends for
the two most recently completed Dividend Periods in full in a timely manner, at which time the Dividend Rate shall revert to the
Stated Rate for cash dividends; and

 

(ii) until such
time as the Dividend Rate reverts to the Stated Rate pursuant to subparagraph (i) of this paragraph (b), the holders of Series
B Preferred Stock will have the voting rights and director election rights described in Section 7(a) hereof.

 

After the Dividend Rate reverts
to the Stated Rate pursuant to subparagraph (i) of this paragraph (b), the Dividend Rate shall not again increase to the Penalty
Rate for cash dividends and the holders of Series B Preferred Stock shall not again have the voting rights and director election
rights described in Section 7(a) hereof until the subsequent occurrence of an additional four accumulated, accrued and unpaid Dividend
Defaults, whether consecutive or non-consecutive.

 

(c) No dividend on the
Series B Preferred Stock will be declared by the Corporation or paid or set apart for payment by the Corporation at such time as
the terms and provisions of Senior Shares or any agreement of the Corporation, including any agreement relating to its indebtedness,
prohibit such declaration, payment or setting apart for payment or provide that such declaration, payment or setting apart for
payment would constitute a breach thereof or a default thereunder, or if such declaration, payment or setting aside of funds is
restricted or prohibited under applicable law; provided, however, notwithstanding anything to the contrary contained herein, a
Dividend Default may be deemed to occur and dividends on the Series B Preferred Stock shall continue to accrue and accumulate regardless
of whether: (i) any or all of the foregoing restrictions exist; (ii) the Corporation has earnings or profits; (iii) there are funds
legally available for the payment of such dividends; or (iv) such dividends are authorized by the Board. Accrued and unpaid dividends
on the Series B Preferred Stock will accumulate as of the Dividend Payment Date on which they first become payable.

 

    	 	4 	 

    	 	 

     

(d) Except as provided
in the next sentence, if any Series B Preferred Stock is outstanding, no dividends will be declared or paid or set apart for payment
on any Parity Shares or Junior Shares, unless all accumulated accrued and unpaid dividends on the Series B Preferred Stock are
contemporaneously declared and paid, or declared and a sum of cash sufficient for the payment thereof set apart for such payment,
for all past Dividend Periods with respect to which full dividends were not paid on the Series B Preferred Stock in accordance
with this Section 3. When dividends are not paid in full (or a sum sufficient for such full payment is not so set apart for payment)
upon the Series B Preferred Stock and upon all Parity Shares, all dividends declared, paid or set apart for payment upon the Series
B Preferred Stock and all such Parity Shares shall be declared and paid pro rata or declared and set apart for payment pro rata
so that the amount of dividends declared per share of Series B Preferred Stock and per share of such Parity Shares shall in all
cases bear to each other the same ratio that accumulated dividends per share of Series B Preferred Stock and such other Parity
Shares (which shall not include any accumulation in respect of unpaid dividends for prior dividend periods if such other Parity
Shares do not bear cumulative dividends) bear to each other. No interest, or sum of money in lieu of interest, shall be payable
in respect of any dividend payment or payments on Series B Preferred Stock which may be in arrears, whether at the Stated Rate
or at the Penalty Rate.

 

(e) Except as provided
in paragraph (d) of this Section 3, unless all accumulated accrued and unpaid dividends on the Series B Preferred Stock are contemporaneously
declared and paid, or declared and a sum of cash sufficient for the payment thereof set apart for such payment, for all past Dividend
Periods with respect to which full dividends were not paid on the Series B Preferred Stock in accordance with this Section 3, no
dividends (other than in Common Stock or Junior Shares ranking junior to the Series B Preferred Stock as to dividends and upon
liquidation) may be declared or paid or set apart for payment upon the Common Stock or any Junior Shares or Parity Shares, nor
shall any Common Stock or any Junior Shares or Parity Shares be redeemed, purchased or otherwise acquired directly or indirectly
for any consideration (or any monies be paid to or made available for a sinking fund for the redemption of any such stock) by the
Corporation (except by conversion into or exchange for Junior Shares or by redemption, purchase or acquisition of stock under any
employee benefit plan of the Corporation).

 

(f) Holders of Series B
Preferred Stock shall not be entitled to any dividend in excess of all accumulated accrued and unpaid dividends on the Series B
Preferred Stock as described in this Section 3. Any dividend payment made on the Series B Preferred Stock shall first be credited
against the earliest accumulated accrued and unpaid dividend due with respect to such shares which remains payable at the time
of such payment.

 

Section 4. Liquidation
Preference.

 

(a) Subject to the rights
of the holders of Senior Shares and Parity Shares, in the event of any liquidation, dissolution or winding up of the Corporation,
whether voluntary or involuntary, before any payment or distribution of the assets of the Corporation (whether capital or surplus)
shall be made to or set apart for the holders of Junior Shares, as to the distribution of assets on any liquidation, dissolution
or winding up of the Corporation, each holder of the Series B Preferred Stock shall be entitled to receive an amount of cash per
share of the Series B Preferred Stock equal to the Stated Value plus an amount in cash equal to all accumulated accrued and unpaid
dividends thereon (whether or not earned or declared) to the date of final distribution to such holders. If, upon any liquidation,
dissolution or winding up of the Corporation, the assets of the Corporation, or proceeds thereof, distributable among the holders
of the Series B Preferred Stock shall be insufficient to pay in full the preferential amount aforesaid and liquidating payments
on any other shares of any class or series of Parity Shares as to the distribution of assets on any liquidation, dissolution or
winding up of the Corporation, then such assets, or the proceeds thereof, shall be distributed among the holders of Series B Preferred
Stock and any such other Parity Shares ratably in accordance with the respective amounts that would be payable on such Series B
Preferred Stock and any such other Parity Shares if all amounts payable thereon were paid in full. For the purposes of this Section
4, none of (i) a consolidation or merger of the Corporation with one or more corporations or other entities, (ii) a sale, lease
or transfer of all or substantially all of the Corporation’s assets or (iii) a statutory share exchange shall be deemed to
be a liquidation, dissolution or winding up, voluntary or involuntary, of the Corporation.

 

    	 	5 	 

    	 	 

     

(b) Written notice of any
such liquidation, dissolution or winding up of the Corporation, stating the payment date or dates when, and the place or places
where, the amounts distributable in such circumstances shall be payable, shall be given by first class mail, postage pre-paid,
not less than 30 nor more than 60 days prior to the payment date stated therein, to each record holder of the Series B Preferred
Stock at the respective address of such holders as the same shall appear on the stock transfer records of the Corporation.

 

Subject to the rights of
the holders of Senior Shares and Parity Shares upon liquidation, dissolution or winding up, upon any liquidation, dissolution or
winding up of the Corporation, after payment shall have been made in full to the holders of the Series B Preferred Stock, as provided
in this Section 4, any other series or class or classes of Junior Shares shall, subject to the respective terms and provisions
(if any) applying thereto, be entitled to receive any and all assets remaining to be paid or distributed, and the holders of the
Series B Preferred Stock shall not be entitled to share therein.

 

Section 5. Status
of Acquired Shares. All shares of Series B Preferred Stock issued and purchased or otherwise acquired by the Corporation
shall be restored to the status of authorized but unissued shares of undesignated Preferred Stock of the Corporation.

 

Section 6. Ranking.
Any class or series of shares of stock of the Corporation shall be deemed to rank:

 

(a) prior to the Series
B Preferred Stock, as to the payment of dividends and as to distribution of assets upon liquidation, dissolution or winding up,
if the holders of such class or series shall be entitled to the receipt of dividends or of amounts distributable upon liquidation,
dissolution or winding up, as the case may be, in preference or priority to the holders of Series B Preferred Stock (“Senior
Shares”);

 

(b) on a parity with the
Series B Preferred Stock, as to the payment of dividends and as to distribution of assets upon liquidation, dissolution or winding
up, whether or not the dividend rates, dividend payment dates or redemption or liquidation prices per share thereof be different
from those of the Series B Preferred Stock, if the holders of such class or series and the Series B Preferred Stock shall be entitled
to the receipt of dividends and of amounts distributable upon liquidation, dissolution or winding up in proportion to their respective
amounts of accrued and unpaid dividends per share or liquidation preferences, without preference or priority one over the other
(“Parity Shares”); and

 

    	 	6 	 

    	 	 

     

(c) junior to the Series
B Preferred Stock, as to the payment of dividends and as to the distribution of assets upon liquidation, dissolution or winding
up, if such class or series shall be the Common Stock or any other class or series of shares of stock of the Corporation now or
hereafter issued and outstanding over which the Series B Preferred Stock have preference or priority in the payment of dividends
and in the distribution of assets upon any liquidation, dissolution or winding up of the Corporation (“Junior Shares”).

 

Section 7. Voting
Rights; Director Election Rights.

 

(a) The Series B Preferred
Stock shall have no voting rights, except as set forth in this Section 7. In the circumstances identified in paragraph (b) of Section
3 hereof, the number of directors then constituting the Board shall increase by at least two, if not already increased by reason
of similar types of provisions with respect to Parity Shares which are entitled to similar voting rights, and the holders of Series
B Preferred Stock, together with the holders of shares of every other series of Parity Shares upon which like voting rights have
been conferred and are exercisable (any such other series, the “Voting Preferred Shares”), voting together
as a single class regardless of series, shall be entitled to elect two directors. Such directors shall be elected at any annual
meeting of shareholders or special meeting held in place thereof, or at a special meeting of the holders of the Series B Preferred
Stock and the Voting Preferred Shares called as provided in paragraph (b) of this Section 7; in each instance in accordance with
the Bylaws. Such voting rights shall continue unless and until terminated as provided in paragraph (b) of Section 3 hereof, whereupon
the terms of all persons elected as directors to the Board by the holders of the Series B Preferred Stock and the Voting Preferred
Shares shall terminate effective immediately and the number of directors constituting the Board shall decrease accordingly.

 

(b) At any time after the
voting power conferred in paragraph (a) of this Section 7 shall have been so vested in the holders of Series B Preferred Stock
and the Voting Preferred Shares, the Secretary of the Corporation may, and upon the written request of any holder of Series B Preferred
Stock (addressed to the Secretary at the principal office of the Corporation) shall, call a special meeting of the holders of the
Series B Preferred Stock and of the Voting Preferred Shares for the election of the two directors to be elected by them to the
Board as herein provided, such call to be made by notice similar to that provided in the Bylaws of the Corporation for a special
meeting of the shareholders or as required by law. If any such special meeting required to be called as above provided shall not
be called by the Secretary within 60 days after receipt of any such request, then any holder of Series B Preferred Stock may call
such meeting, upon the notice above provided, and for that purpose shall have access to the share records of the Corporation for
the Series B Preferred Stock and Voting Preferred Shares. The directors elected at any such special meeting shall hold office until
the next annual meeting of shareholders or special meeting held in lieu thereof if such term shall not have previously terminated
as above provided. If any vacancy shall occur among the directors elected by holders of Series B Preferred Stock and holders of
the Voting Preferred Shares, a successor shall be elected by the Board, upon the nomination of the then-remaining director elected
by holders of Series B Preferred Stock and holders of the Voting Preferred Shares or the successor of such remaining director,
to serve until the next annual meeting of shareholders or special meeting held in place thereof if such term shall not have previously
terminated as above provided.

 

    	 	7 	 

    	 	 

     

(c) So long as any shares
of Series B Preferred Stock are outstanding, the affirmative vote of the holders of at least two-thirds of the Series B Preferred
Stock and the Voting Preferred Shares at the time outstanding, acting as a single class regardless of series, given in person or
by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, shall be necessary for effecting
or validating:

 

(i) Any amendment,
alteration or repeal of any of the provisions of the Articles of Incorporation or this Statement that materially and adversely
affects the rights, preferences or voting power of the Series B Preferred Stock or the Voting Preferred Shares; provided, however,
that (A) the amendment of the provisions of the Articles of Incorporation so as to authorize or create, or to increase the authorized
amount of, the Series B Preferred Stock or any Parity Shares shall be deemed to materially and adversely affect the rights, preferences
or voting power of the Series B Preferred Stock or the Voting Preferred Shares and (B) the amendment of the provisions of the Articles
of Incorporation so as to authorize or create, or to increase the authorized amount of any Junior Shares shall not be deemed to
materially or adversely affect the rights, preferences or voting power of the Series B Preferred Stock or the Voting Preferred
Shares;

 

(ii) A statutory
share exchange that affects the Series B Preferred Stock, a consolidation with or merger of the Corporation into another entity,
or a consolidation with or merger of another entity into the Corporation, unless in each such case each share of Series B Preferred
Stock (A) shall remain outstanding without a material and adverse change to its terms, voting powers, preferences and rights or
(B) shall be converted into or exchanged for preferred shares of the surviving entity having preferences, voting powers, restrictions,
limitations as to dividends or distributions, qualifications and terms or conditions of redemption thereof identical to that of
a share of Series B Preferred Stock (except for changes that do not materially and adversely affect the Series B Preferred Stock);

 

(iii) The authorization,
reclassification or creation of, or the increase in the authorized amount of, any Senior Shares, other Parity Shares or any security
convertible into or exchangeable for Senior Shares or other Parity Shares; or

 

(iv) an increase
to the size of the Board above five (5) directors other than as set forth herein.

 

For purposes of this Section
7, each share of Series B Preferred Stock shall have one vote per share, except that when any other series of Voting Preferred
Shares shall have the right to vote with the Series B Preferred Stock as a single class on any matter, then the Series B Preferred
Stock and such other series shall have with respect to such matters such number of votes equal to the stated liquidation preference
thereof divided by the Stated Value. Except as set forth herein, the Series B Preferred Stock shall not have any relative, participating,
optional or other special voting rights and powers other than as set forth herein, and the consent of the holders thereof shall
not be required for the taking of any corporate action.

 

    	 	8 	 

    	 	 

     

No amendment to these terms
of the Series B Preferred Stock shall require the vote of the holders of Common Stock (except as required by law) or any series
of Preferred Stock other than the Voting Preferred Shares.

 

Section 8. Information
Rights. During any period in which the Corporation is not subject to Section 13 or 15(d) of the Exchange Act and any shares
of Series B Preferred Stock are outstanding, the Corporation shall (a) transmit by mail to all holders of Series B Preferred Stock,
as their names and addresses appear in the Corporation’s record books and without cost to such holders, copies of the annual
reports and quarterly reports that the Corporation would have been required to file with the Securities and Exchange Commission
(the “SEC”) pursuant to Section 13 or 15(d) of the Exchange Act if the Corporation was subject to such
sections (other than any exhibits that would have been required); and (b) promptly upon written request, supply copies of such
reports to any prospective holder of Series B Preferred Stock. The Corporation shall mail the reports to the holders of Series
B Preferred Stock within 15 days after the respective dates by which the Corporation would have been required to file the reports
with the SEC if the Corporation were then subject to Section 13 or 15(d) of the Exchange Act, assuming the Corporation is a “non-accelerated
filer” in accordance with the Exchange Act.

 

Section 9. Record
Holders. The Corporation and the Transfer Agent shall deem and treat the record holder of any shares of Series B Preferred
Stock as the true and lawful owner thereof for all purposes, and neither the Corporation nor the Transfer Agent shall be affected
by any notice to the contrary.

 

Section 10. Sinking
Fund. The Series B Preferred Stock shall not be entitled to the benefits of any retirement or sinking fund.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	9 	 

    	 	 

     

IN WITNESS WHEREOF, the
Corporation has caused this Statement of Designation to be duly executed and acknowledged by the undersigned officer of the Corporation
as of this 29th day of September, 2017.

 

	 	ATRM HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Daniel M. Koch
	 	Name:	Daniel M. Koch
	 	Title:	President and Chief Executive Officer

 

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