Document:

Exhibit
10.2

 

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated 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,
“Lone Star Value”).

 

W I T N E S S E T H:

 

WHEREAS,
this Agreement is made in connection with that certain Exchange Agreement, dated as of September 29, 2017 (the “Exchange
Agreement”), pursuant to which, the Company has agreed to issue to Lone Star Value a total of 132,548 shares (the “Shares”)
of the Company’s 10.00% Series B Cumulative Preferred Stock, par value $0.001 per share (the “Preferred Stock”),
in exchange for unsecured promissory notes made by the Company and held by Lone Star Value; and

 

WHEREAS,
the rights, preferences and restrictions of the Preferred Stock are set forth in the Statement of Designation of 10.00% Series
B Cumulative Preferred Stock of the Company (the “Statement of Designation”).

 

NOW,
THEREFORE, in consideration of the mutual promises, representations, warranties, covenants and conditions set forth in the
Exchange Agreement and this Agreement, the Company and Lone Star Value agree as follows:

 

1.
Certain Definitions. Capitalized terms used herein and not otherwise defined shall have the meaning ascribed thereto in
the Exchange Agreement or the Statement of Designation, as applicable. As used in this Agreement, the following terms shall have
the following respective meanings:

 

“Closing”
and “Closing Date” shall have the meanings ascribed to such terms in the Exchange Agreement.

 

“Commission”
or “SEC” shall mean the U.S. Securities and Exchange Commission or any other federal agency at the time administering
the Securities Act (as defined below).

 

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

 

“Holder”
and “Holders” shall include Lone Star Value and any transferee or assignee thereof owning or having the right
to acquire Registrable Securities (as defined below) which securities have not been sold to the public and to whom the registration
rights conferred by this Agreement have been transferred in compliance with this Agreement; provided that neither such person
nor any affiliate of such person is registered as a broker or dealer under Section 15(a) of Exchange Act, or a member of the Financial
Industry Regulatory Authority.

 

The
terms “register,” “registered” and “registration” shall refer to a registration
effected by preparing and filing a registration statement or similar document in compliance with the Securities Act and applicable
rules and regulations thereunder, and the declaration or ordering of the effectiveness of such registration statement or document.

 

    	 

    	 

    

 

“Registrable
Securities” shall mean: (i) the Shares held by a Holder; and (ii) any other securities issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect
to, or in exchange for or in replacement of, the Shares; provided, however, that securities shall only be treated as Registrable
Securities if and only for so long as they (A) have not been sold in a transaction in which the Holder’s rights under this
Agreement were not assigned, (B) have not been disposed of pursuant to a registration statement declared effective by the SEC,
(C) have not been sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act
so that all transfer restrictions and restrictive legends with respect thereto are removed upon the consummation of such sale
and (D) may not be disposed of under Rule 144 without restriction.

 

“Registration
Expenses” shall mean all expenses incurred by the Company in connection with each Holder’s registration rights
under this Agreement, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements
of counsel for the Company, blue sky fees and expenses, and the expense of any special audits incident to or required by any such
registration (but excluding the compensation of regular employees of the Company, which shall be paid in any event by the Company).

 

“Regulation
D” shall mean Regulation D as promulgated pursuant to the Securities Act, and as subsequently amended.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended.

 

“Selling
Expenses” shall mean all underwriting discounts and selling commissions applicable to the sale of Registrable Securities
and all fees and disbursements of counsel for Holders not included within “Registration Expenses.”

 

2.
Registration Requirements.

 

(a)
At any time after October 15, 2018, upon the written request of the Holders of at least sixty-six and two thirds percent (66 2/3%)
of the Registrable Securities then outstanding, the Company shall prepare and file with the SEC a registration statement on Form
S-3 (or on Form S-1 if the Company is then ineligible to use Form S-3) pursuant to Rule 415 under the Securities Act covering
resales by the Holders as selling stockholders (not underwriters) of the Registrable Securities (the “Registration Statement”)
as soon as reasonably practicable following the Company’s receipt of such written request, but in no event later than sixty
(60) days thereafter. Thereafter the Company shall use its reasonable best efforts to cause such Registration Statement and other
filings to be declared effective as soon as possible, and in any event no later than the following date, as appropriate (the “Required
Effective Date”): (A) if the SEC notifies the Company that the SEC will not review the Registration Statement, the Required
Effective Date shall be five (5) days after the SEC provides such notification, or (B) if the SEC notifies the Company that it
will review the Registration Statement, then the Required Effective Date shall be sixty (60) days after the Company receives the
first written comments on the Registration Statement from the SEC. Without limiting the foregoing, the Company will promptly respond
to all SEC comments, inquiries and requests, and shall request acceleration of effectiveness at the earliest possible date.

 

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(b)
In connection with the registration of any Registrable Securities, the Company shall, as soon as practicable:

 

(i)
Prepare and file with the SEC such amendments and supplements to such Registration Statement and the prospectus used in connection
with such Registration Statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by such Registration Statement and notify the Holders of the filing and effectiveness of such Registration
Statement and any amendments or supplements.

 

(ii)
Furnish to each Holder that has Registrable Securities included in the Registration Statement such number of copies of a current
prospectus conforming with the requirements of the Securities Act, copies of the Registration Statement, any amendment or supplement
thereto and any documents incorporated by reference therein and such other documents as such Holder may reasonably require in
order to facilitate the disposition of Registrable Securities owned by such Holder.

 

(iii)
Register and qualify the securities covered by such Registration Statement under the securities or blue sky laws of all domestic
jurisdictions; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to
do business or to file a general consent to service of process in any such states or jurisdictions.

 

(iv)
Notify promptly each Holder that has Registrable Securities included in the Registration Statement of the happening of any event
(but not the substance or details of any such event) of which the Company has knowledge as a result of which the prospectus (including
any supplements thereto or thereof) included in such Registration Statement, as then in effect, includes an untrue statement of
material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing (each an “Event”), and use its best efforts to promptly
update and/or correct such prospectus. Each Holder will hold in confidence and will not make any disclosure of any such Event
and any related information disclosed by the Company.

 

(v)
Notify each Holder of the issuance by the SEC or any state securities commission or agency of any stop order suspending the effectiveness
of the Registration Statement or the threat or initiation of any proceedings for that purpose. The Company shall use its best
efforts to prevent the issuance of any stop order and, if any stop order is issued, to obtain the lifting thereof at the earliest
possible time.

 

(vi)
List the Registrable Securities covered by such Registration Statement with all securities exchange(s) and/or markets on which
the Common Stock is then listed, to the extent such listing is permissible under the rules of such securities exchange or market,
and prepare and file any corresponding required filings with such securities exchange or market.

 

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(c)
Notwithstanding the obligations under Section 2(b)(iv) or any provision of this Agreement, if (i) in the good faith judgment of
the Company, following consultation with legal counsel, it would be detrimental to the Company and its stockholders for resales
of Registrable Securities to be made pursuant to the Registration Statement due to the existence of a material development or
potential material development involving the Company that the Company would be obligated to disclose in the Registration Statement,
which disclosure would be premature or otherwise inadvisable at such time or would have a material adverse effect upon the Company
and its stockholders, or (ii) in the good faith judgment of the Company, it would adversely affect or require premature disclosure
of the filing of a Company-initiated registration of any class of its equity securities, then the Company will have the right
to suspend the use of the Registration Statement for a period of not more than thirty (30) consecutive calendar days, but only
if the Company reasonably concludes, after consultation with outside legal counsel, that the failure to suspend the use of the
Registration Statement as such would create a risk of a material liability or violation under applicable securities laws or regulations.

 

(d)
During the registration period, the Company will make available, upon reasonable advance notice during normal business hours,
for inspection by any Holder whose Registrable Securities are being sold pursuant to a Registration Statement, all pertinent financial
and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”)
as reasonably necessary to enable each such Holder to exercise its due diligence responsibility in connection with or related
to the contemplated offering. The Company will cause its officers, directors and employees to supply all information that any
Holder may reasonably request for purposes of performing such due diligence.

 

(e)
Each Holder will hold in confidence, use only in connection with the contemplated offering and not make any disclosure of all
Records and other information that the Company determines in good faith to be confidential, and of which determination the Holders
are so notified, unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any
Registration Statement, (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court or government
body of competent jurisdiction, (iii) the information in such Records has been made generally available to the public other than
by disclosure in violation of this or any other agreement (to the knowledge of the relevant Holder), (iv) the Records or other
information was developed independently by the Holder without breach of this Agreement, (v) the information was known to the Holder
before receipt of such information from the Company, or (vi) the information was disclosed to the Holder by a third party not
under an obligation of confidentiality. However, a Holder may make disclosure of such Records and other information to any attorney,
adviser, or other third party retained by it that needs to know the information as determined in good faith by the Holder (each,
a “Holder Representative”), if the Holder advises each Holder Representative of the confidentiality provisions
of this Section 2(e), but the Holder will be liable for any act or omission of a Holder Representative relative to such information
as if the act or omission was that of the Holder. The Company is not required to disclose any confidential information in the
Records to any Holder unless and until such Holder has entered into a confidentiality agreement (in form and substance satisfactory
to the Company) with the Company with respect thereto, substantially to the effect of this Section 2(e). Unless legally prohibited
from so doing, each Holder will, upon learning that disclosure of Records containing confidential information is sought in or
by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Company and allow
the Company, at the Company’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, the Records deemed confidential. Nothing herein will be deemed to limit the Holders’ ability to sell Registrable
Securities in a manner that is otherwise consistent with applicable laws and regulations.

 

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(f)
If the Holders become entitled, pursuant to an event described in clause (ii) of the definition of Registrable Securities, to
receive any securities in respect of Registrable Securities that were already included in a Registration Statement, subsequent
to the date such Registration Statement is declared effective, and the Company is unable under the securities laws to add such
securities to the then effective Registration Statement, the Company shall promptly file, in accordance with the procedures set
forth herein, an additional Registration Statement with respect to such newly Registrable Securities. The Company shall use its
reasonable best efforts to cause any such additional Registration Statement, when filed, to become effective within sixty (60)
days of the date that the need to file the Registration Statement arose. All of the registration rights and remedies under this
Agreement shall apply to the registration of such newly reserved shares and such new Registrable Securities.

 

3.
Expenses of Registration. All Registration Expenses in connection with any registration, qualification or compliance with
registration pursuant to this Agreement shall be borne by the Company, and all Selling Expenses of a Holder shall be borne by
such Holder.

 

4.
Registration on Form S-3. The Company shall use its reasonable best efforts to take such action as is necessary to enable
the Holders to utilize Form S-3 for the sale of their Registrable Securities.

 

5.
Registration Period. The Company shall use its reasonable best efforts to maintain the effectiveness of any Registration
Statement until the earlier of such time that all of the Registrable Securities covered thereby (x) have been sold by the Holders
or (y) are permitted to be disposed of by each Holder under Rule 144 without restriction.

 

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6.
Indemnification.

 

(a)
Company Indemnity. The Company will indemnify each Holder, each of its officers, directors, agents and partners, and each
person controlling each of the foregoing, within the meaning of Section 15 of the Securities Act and the rules and regulations
thereunder, with respect to which registration, qualification or compliance has been effected pursuant to this Agreement, and
each underwriter, if any, and each person who controls, within the meaning of Section 15 of the Securities Act and the rules and
regulations thereunder, any underwriter, against all claims, losses, damages and liabilities (or actions in respect thereof) arising
out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any final prospectus (as
amended or supplemented if the Company files any amendment or supplement thereto with the SEC), Registration Statement filed pursuant
to this Agreement or any post-effective amendment thereof or based on any omission (or alleged omission) to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under
which they were made, or any violation by the Company of the Securities Act or any state securities law or in either case, any
rule or regulation thereunder applicable to the Company and relating to action or inaction required of the Company in connection
with any such registration, qualification or compliance, and will reimburse each Holder, each of its officers, directors, agents
and partners, and each person controlling each of the foregoing, for any reasonable legal fees of a single counsel and any other
expenses reasonably incurred in connection with investigating and defending any such claim, loss, damage, liability or action,
provided that the Company will not be liable in any such case to a Holder to the extent that any such claim, loss, damage, liability
or expense arises out of or is based on (i) any untrue statement or omission based upon written information furnished to the Company
by such Holder or underwriter (if any) therefor and stated to be specifically for use therein, (ii) any failure by any Holder
to comply with prospectus delivery requirements or the Securities Act or Exchange Act or any other law or legal requirement applicable
to them or any covenant or agreement contained in the Exchange Agreement, the Statement of Designation or this Agreement or (iii)
an offer of sale of the Shares occurring during a period in which sales under the Registration Statement are suspended as permitted
by this Agreement. The indemnity agreement contained in this Section 6(a) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent
will not be unreasonably withheld).

 

(b)
Holder Indemnity. Each Holder will, severally but not jointly, if Registrable Securities held by it are included in the
securities as to which such registration, qualification or compliance is being effected, indemnify the Company, each of its directors,
officers, agents and partners, and any other stockholder selling securities pursuant to the Registration Statement and any of
its directors, officers, agents, partners, and any person who controls such stockholder within the meaning of the Securities Act
or Exchange Act, and each underwriter, if any, of the Company’s securities covered by such a Registration Statement, each
person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act and the rules and regulations
thereunder, each other Holder (if any), and each of their officers, directors and partners, and each person controlling such other
Holder(s) against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on (i) any
untrue statement (or alleged untrue statement) of a material fact contained in any such final prospectus (as amended or supplemented
if the Company files any amendment or supplement thereto with the SEC), Registration Statement filed pursuant to this Agreement
or any post- effective amendment thereof or based on any omission (or alleged omission) to state therein a material fact required
to be stated therein or necessary to make the statement therein not misleading in light of the circumstances under which they
were made or (ii) failure by any Holder to comply with prospectus delivery requirements or the Securities Act, Exchange Act or
any other law or legal requirement applicable to them or any covenant or agreement contained in the Exchange Agreement, the Statement
of Designation or this Agreement, and will reimburse the Company and such other Holder(s) and their directors, officers and partners,
underwriters or control persons for any reasonable legal fees or any other expenses reasonably incurred in connection with investigating
and defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such
untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such final prospectus (as amended
or supplemented if the Company files any amendment or supplement thereto with the SEC), Registration Statement filed pursuant
to this Agreement or any post-effective amendment thereof in reliance upon and in conformity with written information furnished
to the Company by such Holder and stated to be specifically for use therein, and provided that the maximum amount for which such
Holder shall be liable under this indemnity shall not exceed the net proceeds received by the Holders from the sale of the Registrable
Securities pursuant to the registration statement in question. The indemnity agreement contained in this Section 6(b) shall not
apply to amounts paid in settlement of any such claims, losses, damages or liabilities if such settlement is effected without
the consent of such Holder (which consent shall not be unreasonably withheld).

 

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(c)
Procedure. Each party entitled to indemnification under this Section 6 (the “Indemnified Party”) shall
give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party
to assume the defense of any such claim in any litigation resulting therefrom, provided that counsel for the Indemnifying Party,
who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party
(whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at its own expense,
and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying
Party of its obligations under this Section 6 except to the extent that the Indemnifying Party is materially and adversely affected
by such failure to provide notice. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the
consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in
respect to such claim or litigation. Each Indemnified Party shall furnish such non-privileged information regarding itself or
the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection
with the defense of such claim and litigation resulting therefrom.

 

7.
Contribution. If the indemnification provided for in Section 6 herein is unavailable to the Indemnified Parties in respect
of any losses, claims, damages or liabilities referred to herein (other than by reason of the exceptions provided therein), then
each such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by
such Indemnified Party as a result of such losses, claims, damages or liabilities as between the Company on the one hand and any
Holder(s) on the other, in such proportion as is appropriate to reflect the relative fault of the Company and of such Holder(s)
in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The relative fault of the Company on the one hand and of any Holder(s) on the other shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information supplied by the Company or by such Holder(s).

 

In
no event shall the obligation of any Indemnifying Party to contribute under this Section 7 exceed the amount that such Indemnifying
Party would have been obligated to pay by way of indemnification if the indemnification provided for under Section 6(a) or 6(b)
hereof had been available under the circumstances.

 

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The
Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined
by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in the immediately preceding paragraphs. The amount paid
or payable by an Indemnified Party as a result of the losses, claims, damages and liabilities referred to in the immediately preceding
paragraphs shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred
by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions
of this Section, no Holder shall be required to contribute any amount in excess of the amount equal to the net proceeds received
by such Holder from the sale of Registrable Securities pursuant to the registration statement in question. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.

 

8.
Survival. The indemnity and contribution agreements contained in Sections 6 and 7 shall remain operative and in full force
and effect regardless of (i) any termination of this Agreement and (ii) the consummation of the sale or initial successive resales
of the Registrable Securities.

 

9.
Information by Holders. As a condition to the obligations of the Company to complete any registration pursuant to this
Agreement with respect to the Registrable Securities of each Holder, such Holder will furnish to the Company such information
regarding itself, the Registrable Securities held by it and the intended methods of disposition of the Registrable Securities
held by it as is reasonably required by the Company to effect the registration of the Registrable Securities. At least ten (10)
business days prior to the first anticipated filing date of a Registration Statement for any registration under this Agreement,
the Company will notify each Holder of the information the Company requires from that Holder whether or not such Holder has elected
to have any of its Registrable Securities included in the Registration Statement. If the Company has not received the requested
information from a Holder by the business day prior to the anticipated filing date, then the Company may file the Registration
Statement without including Registrable Securities of that Holder.

 

10.
Further Assurances. Each Holder will cooperate with the Company, as reasonably requested by the Company, in connection
with the preparation and filing of any Registration Statement hereunder, unless such Holder has notified the Company in writing
of such Holder’s irrevocable election to exclude all of such Holder’s Registrable Securities from such Registration
Statement.

 

11.
Suspension of Sales. Upon receipt of any notice from the Company under Section 2(b)(iv) or 2(c), each Holder will immediately
discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities
until (i) it receives copies of a supplemented or amended prospectus contemplated by Sections 2(b)(iv) or (ii) the Company advises
the Holder that a suspension of sales under Section 2(c) has terminated. If so directed by the Company, each Holder will deliver
to the Company (at the expense of the Company) or destroy all copies in the Holder’s possession (other than a limited number
of file copies) of the prospectus covering such Registrable Securities that is current at the time of receipt of such notice.

 

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12.
Transfer or Assignment. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit
of the parties and their successors and permitted assigns. The rights granted to the Holders by the Company under this Agreement
to cause the Company to register Registrable Securities may be transferred or assigned (in whole or in part) to a transferee or
assignee of the Registrable Securities, and all other rights granted to the Holders by the Company hereunder may be transferred
or assigned to any transferee or assignee of the Registrable Securities; provided in each case that (i) the Company is given written
notice by the Holder at the time of or within ten (10) days after such transfer or assignment, stating the name and address of
said transferee or assignee and identifying the securities with respect to which such registration rights are being transferred
or assigned and (ii) the transferee or assignee of such rights agrees in writing to be bound by the registration provisions of
this Agreement. In each case, such rights may only be transferred together with the underlying Registrable Securities in a transfer
permitted by the Securities Act and applicable state securities laws.

 

13.
Miscellaneous.

 

(a)
Remedies. The Company and the Holders acknowledge and agree that irreparable damage would occur in the event that any of
the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent or cure breaches of the
provisions of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity.

 

(b)
Jurisdiction. Each of the Company and the Holders (i) hereby irrevocably submits to the exclusive jurisdiction of the United
States District Court, the New York state courts and other courts of the United States sitting in New York, New York for the purposes
of any suit, action or proceeding arising out of or relating to this Agreement and (ii) hereby waives, and agrees not to assert
in any such suit action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the
suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper.
The Company and the Holders consent to process being served in any such suit, action or proceeding by mailing a copy thereof to
such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing in this paragraph shall affect or limit any right to serve process
in any other manner permitted by law.

 

(c)
Notices. Any notice or other communication required or permitted to be given hereunder shall be in writing by facsimile,
mail or personal delivery and shall be effective upon actual receipt of such notice. The addresses for such communications shall
be:

 

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If
to the Company:

 

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.

 

If
to a Holder:

 

The
Holder’s address or facsimile number set forth on the Holder’s signature page to this Agreement.

 

Any
party hereto may from time to time change its address for notices by giving at least five (5) days’ written notice of such
changed address to the other parties hereto.

 

(d)
Waivers. No waiver by any party of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing
to it thereafter. The representations and warranties and the agreements and covenants of the Company and each Holder contained
herein shall survive the Closing.

 

(e)
Execution in Counterpart. This Agreement may be executed in two or more counterparts, all of which shall be considered
one and the same agreement, it being understood that all parties need not sign the same counterpart.

 

(f)
Signatures. Facsimile signatures shall be valid and binding on each party submitting the same.

 

(g)
Entire Agreement: Amendment. This Agreement, together with the Exchange Agreement and the agreements and documents contemplated
hereby and thereby, contains the entire understanding and agreement of the parties, and may not be amended, modified or terminated
except by a written agreement signed by the Company and the Holders of at least a majority of the outstanding Registrable Securities.

 

(h)
Governing Law. This Agreement and the validity and performance of the terms hereof shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts executed and to be performed entirely within such state,
except to the extent that the law of the State of Minnesota regulates the Company’s issuance of securities.

 

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(i)
Jury Trial. EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL BY JURY.

 

(j)
Force Majeure. The Company shall not be deemed in breach of its commitments under this Agreement and no payments by the
Company as set forth in Section 2 shall be required if the Company is unable to fulfill its obligations hereunder in a timely
fashion if the SEC or any applicable securities exchange is closed or operating on a limited basis as a result of the occurrence
of a Force Majeure. As used herein, “Force Majeure” means war or armed hostilities or other national or international
calamity, or one or more acts of terrorism, which are having a material adverse effect on the financial markets in the United
States. Furthermore, any payments owed as a result of Section 2 shall not accrue during any period during which the Company’s
performance hereunder has been delayed or the Company’s ability to fulfill its obligations hereunder has been impaired by
a Force Majeure.

 

(k)
Titles. The titles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting
this Agreement.

 

(l)
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rule of strict construction will be applied against any party.

 

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

 

	 	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,
	 	Its 	General Partner   

 

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

 

	 	Address:	53
    Forest Avenue, 1st Floor
	 	 	Old
    Greenwich, Connecticut 06870
	 	Facsimile:	(203) 990-0727

 

	 	LONE
    STAR VALUE CO-INVEST I, LP
	 	By: 	Lone Star Value Investors GP, LLC, 
	 	Its 	General Partner
	 	 
	 	By:	/s/
    Jeffrey E. Eberwein
	 	Name:	Jeffrey
    E. Eberwein
	 	Title:	Manager

 

	 	Address:	53
    Forest Avenue, 1st Floor
	 	 	Old
    Greenwich, Connecticut 06870
	 	Facsimile:	(203) 990-0727Exhibit
4.1

 

RITTER
PHARMACEUTICALS, INC.

WARRANT
AGENCY AGREEMENT

 

WARRANT
AGENCY AGREEMENT (this “Warrant Agreement”) made as of September 29, 2017 (the “Issuance Date”),
between Ritter Pharmaceuticals, Inc., a Delaware corporation, with offices at 1880 Century Park East, Suite 1000, Los Angeles,
CA 90067 (“Company”), and Corporate Stock Transfer, Inc., with offices at 3200 Cherry Creek South Drive, Suite
430, Denver, Colorado 80209 (“Warrant Agent”).

 

WHEREAS,
the Company is engaged in a public offering (the “Offering”) of Class A Units consisting of Common Stock and
Warrants and Class B Units consisting of Series A Convertible Preferred Stock and Warrants and has determined to issue and deliver
up to 66,125,000 Warrants (the “Warrants”) to the public investors in the Offering, with each such Warrant
evidencing the right of the holder thereof to purchase one share of common stock, par value $0.001 per share, of the Company (the
“Common Stock”) for $0.44, subject to adjustment as described herein; and

 

WHEREAS,
the Company has filed with the U.S. Securities and Exchange Commission (the “Commission”) a Registration Statement,
No. 333-219147 on Form S-1 (as the same may be amended from time to time, the “Registration Statement”) for
the registration, under the Securities Act of 1933, as amended (the “Securities Act”) of, among other securities,
the Warrants and the Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”), and such Registration
Statement was declared effective on September 28, 2017; and

 

WHEREAS,
the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection
with the issuance, registration, transfer, exchange and exercise of the Warrants; and

 

WHEREAS,
the Company desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised,
and the respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants
(each, a “Holder”); and

 

WHEREAS,
all acts and things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company
and countersigned by or on behalf of the Warrant Agent, as provided herein, the valid and binding obligations of the Company,
and to authorize the execution and delivery of this Warrant Agreement.

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows:

 

1.
Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants,
and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions
set forth in this Warrant Agreement.

 

2.
Warrants.

 

2.1.
Form of Warrant. Each Warrant shall be issued in registered form only, shall be in substantially the form of Exhibit
A hereto, the provisions of which are incorporated herein, and shall be signed by, or bear the facsimile signature of, the
Chief Executive Officer, President, Chief Financial Officer or Treasurer, Secretary or Assistant Secretary of the Company. In
the event the person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in
which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had
not ceased to be such at the date of issuance. All of the Warrants shall initially be represented by one or more book-entry certificates
(each a “Book-Entry Warrant Certificate”).

 

    	 

    	 

    

 

2.2.
Effect of Countersignature. Unless and until countersigned by the Warrant Agent pursuant to this Warrant Agreement, a Warrant
shall be invalid and of no effect and may not be exercised by a Holder.

 

2.3.
Registration.

 

2.3.1.
Warrant Register. The Warrant Agent shall maintain books (“Warrant Register”), for the registration
of the original issuance and the registration of any transfer of the Warrants. Upon the initial issuance of the Warrants, the
Warrant Agent shall issue and register the Warrants in the names of the respective Holders in such denominations and otherwise
in accordance with instructions delivered to the Warrant Agent by the Company. To the extent the Warrants are DTC eligible as
of the Issuance Date, all of the Warrants shall be represented by one or more Book-Entry Warrant Certificates deposited with the
Depository Trust Company (the “Depository”) and registered in the name of Cede & Co., a nominee of the
Depository. Ownership of beneficial interests in the Book-Entry Warrant Certificates shall be shown on, and the transfer of such
ownership shall be effected through, records maintained (i) by the Depository or its nominee for each Book-Entry Warrant Certificate;
(ii) by institutions that have accounts with the Depository (such institution, with respect to a Warrant in its account, a “Participant”);
or (iii) directly on the book-entry records of the Warrant Agent with respect only to owners of beneficial interests that represent
such direct registration.

 

If
the Warrants are not DTC Eligible as of the Issuance Date or the Depository subsequently ceases to make its book-entry settlement
system available for the Warrants, the Company may instruct the Warrant Agent to make other arrangements for book-entry settlement
within ten (10) Business Days after the Depository ceases to make its book-entry settlement available. In the event that the Company
does not make alternative arrangements for book-entry settlement within ten (10) Business Days or the Warrants are not eligible
for, or it is no longer necessary to have the Warrants available in, book-entry form, the Warrant Agent shall provide written
instructions to the Depository to deliver to the Warrant Agent for cancellation each Book-Entry Warrant Certificate, and the Company
shall instruct the Warrant Agent to deliver to the Depository definitive Warrant Certificates in physical form evidencing such
Warrants. Such definitive Warrant Certificates shall be in substantially the form annexed hereto as Exhibit A.

 

As
used herein, the term “Business Day” means any day other than Saturday, Sunday or other day on which commercial
banks in the City of New York are authorized or required by law or executive order to remain closed.

 

2.3.2.
Beneficial Owner; Registered Holder. Prior to due presentment for registration of transfer of any Warrant, the Company
and the Warrant Agent may deem and treat the person in whose name such Warrant shall be registered upon the Warrant Register (“registered
holder”), as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation
of ownership or other writing on the Warrant Certificate made by anyone other than the Company or the Warrant Agent), for the
purpose of any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by
any notice to the contrary. Any person in whose name ownership of a beneficial interest in the Warrants evidenced by a Book-Entry
Warrant Certificate is recorded in the records maintained by the Depository or its nominee shall be deemed the “beneficial
owner” thereof; provided, that all such beneficial interests shall be held through a Participant which shall be the
registered holder of such Warrants. As used herein, the term “Holder” refers only to a registered holder of
the Warrants, provided, however, that if the Warrants are held in “street name,” Holder shall also mean a Participant
or a designee appointed by such Participant.

 

2.4
Uncertificated Warrants. Notwithstanding the foregoing and anything else herein to the contrary, the Warrants may be issued
in uncertificated form.

 

3.
Terms and Exercise of Warrants.

 

3.1.
Exercise Price. Each Warrant shall, when countersigned by the Warrant Agent, entitle the Holder, subject to the provisions
of such Warrant and of this Warrant Agreement, to purchase from the Company the number of shares of Common Stock stated therein,
at the price of $0.44 per share, subject to the subsequent adjustments provided in Section 4 hereof. The term “Exercise
Price” as used in this Warrant Agreement refers to the price per share at which Common Stock may be purchased at the
time a Warrant is exercised.

 

    	 

    	 

    

 

3.2.
Duration of Warrants. A Warrant may be exercised only during the period (“Exercise Period”) commencing
on the Issuance Date and terminating at 5:00 P.M., New York City time on October 3, 2022 (“Expiration Date”).
Each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect
thereof under this Warrant Agreement shall cease at the close of business on the Expiration Date.

 

3.3.
Exercise of Warrants.

 

3.3.1.
Exercise and Payment. A Holder may exercise a Warrant by delivering, not later than 5:00 P.M., New York City time, on any
Business Day during the Exercise Period to the Warrant Agent at its corporate trust department by e-mail or facsimile or through
the DTC system an election to purchase the Warrant Shares underlying the Warrants to be exercised (an “Election to Purchase”),
properly completed and executed by the Holder on the reverse of the Warrant Certificate or, in the case of a Book-Entry Warrant
Certificate, properly delivered by the Participant in accordance with the Depository’s procedures (the date of such delivery
of Election to Purchase, the “Exercise Date”), and delivering to the Warrant Agent, within one Business Day
following the Exercise Date, (i) the Exercise Price for each Warrant to be exercised in lawful money of the United States of America
by certified or official bank check or by bank wire transfer in immediately available funds payable to the Warrant Agent and (ii)
the Warrant Certificate evidencing the Warrants to be exercised, if required, or, in the case of a Book-Entry Warrant Certificate,
the Warrants to be exercised (the “Book-Entry Warrants”) shown on the records of the Depository to an account
of the Warrant Agent at the Depository designated for such purpose in writing by the Warrant Agent to the Depository from time
to time. No ink-original Election to Purchase shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Election to Purchase be required. The Holder shall not be required to physically surrender a Warrant Certificate
to the Company until the Holder has purchased all of the Warrant Shares available under such Warrant Certificate and the Warrants
have been exercised in full, in which case, the Holder shall surrender this Warrant to the Warrant Agent for cancellation within
three (3) Business Days of the date on which the final Election to Purchase is delivered to the Company.

 

If
any of (A) the Warrant Certificate or the Book-Entry Warrants, (B) the Election to Purchase, or (C) the Exercise Price therefor,
is received by the Warrant Agent after 5:00 P.M., New York City time, on the specified Exercise Date, the Warrants will be deemed
to be received and exercised on the Business Day next succeeding the Exercise Date. If the date specified as the Exercise Date
is not a Business Day, the Warrants will be deemed to be received and exercised on the next succeeding day that is a Business
Day. If the Warrants are received or deemed to be received after the Expiration Date, the exercise thereof will be null and void
and any funds delivered to the Warrant Agent will be returned to the Holder. In no event will interest accrue on funds deposited
with the Warrant Agent in respect of an exercise or attempted exercise of Warrants. The validity of any exercise of Warrants will
be determined by the Company in its sole discretion and such determination will be final and binding upon the Holder and the Warrant
Agent, absent manifest error. Neither the Company nor the Warrant Agent shall have any obligation to inform a Holder of the invalidity
of any exercise of any Warrants.

 

The
Warrant Agent shall promptly deposit all funds received by it in payment of the Exercise Price in the account of the Company maintained
with the Warrant Agent for such purpose and shall advise the Company via telephone at the end of each day on which funds for the
exercise of the Warrants are received of the amount so deposited to its account. The Warrant Agent shall promptly confirm such
telephonic advice to the Company in writing.

 

3.3.2.
Issuance of Certificates. The Warrant Agent shall, by 1:00 P.M. New York City time on the Business Day following the Exercise
Date of any Warrant, advise the Company or the transfer agent and registrar in respect of (a) the number of Warrant Shares issuable
upon such exercise in accordance with the terms and conditions of this Warrant Agreement, (b) the instructions of each Holder
with respect to delivery of the Warrant Shares issuable upon such exercise, and the delivery of definitive Warrant Certificates,
as appropriate, evidencing the balance, if any, of the Warrants remaining after such exercise, (c) in case of a Book-Entry Warrant
Certificate, the notation that shall be made to the records maintained by the Depository, its nominee for each Book-Entry Warrant
Certificate, or a Participant, as appropriate, evidencing the balance, if any, of the Warrants remaining after such exercise and
(d) such other information as the Company or such transfer agent and registrar shall reasonably require.

 

    	 

    	 

    

 

The
Company shall, by 5:00 P.M., New York City time, on the next Business Day next succeeding the Exercise Date of any Warrant execute,
issue and deliver to the Warrant Agent, the Warrant Shares to which such Holder is entitled, in fully registered form, registered
in such name or names as may be directed by such Holder. Upon receipt of such Warrant Shares, the Warrant Agent shall, by 5:00
P.M., New York City time, on the second Business Day next succeeding such Exercise Date (the “Warrant Share Delivery
Date”), provided that the clearance of the funds in payment of the aggregate Exercise Price shall have occurred and
the applicable Book-Entry Warrants (or, if applicable, such Warrant Certificate, to the extent required) shall have been delivered
by such Warrant Share Delivery Date, transmit such Warrant Shares to, or upon the order of, such Holder.

 

In
lieu of delivering physical certificates representing the Warrant Shares issuable upon exercise of any Warrants, provided the
Company’s transfer agent is participating in the Depository’s Fast Automated Securities Transfer program, the Company
shall use its commercially reasonable efforts to cause its transfer agent to electronically transmit the Warrant Shares issuable
upon exercise to the Depository by crediting the account of the Depository or of the Participant, as the case may be, through
its Deposit Withdrawal Agent Commission system. The time periods for delivery described in the immediately preceding paragraph
shall apply to the electronic transmittals described herein.

 

If
the Company fails for any reason to deliver to the Holder the Warrant Shares subject to an Election to Purchase by the Warrant
Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000
of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Election to Purchase),
$10 per Business Day (increasing to $20 per Business Day on the fifth Business Day after such liquidated damages begin to accrue)
for each Business Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.

 

In
addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder
the Warrant Shares in accordance with the provisions of Section 3.3.2 above pursuant to an exercise on or before the Warrant Share
Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise)
or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder
of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company
shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number
of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the
price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either
reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which
case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been
issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common
Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding
sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.
Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure
to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

If
the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 3.3.2 by the Warrant
Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

3.3.3.
Valid Issuance. All Warrant Shares issued upon the proper exercise of a Warrant in conformity with this Warrant Agreement
shall be validly issued, fully paid and nonassessable.

 

    	 

    	 

    

 

3.3.4.
No Fractional Exercise. Warrants may be exercised only in whole numbers of Warrant Shares. No fractional Warrant Shares
are to be issued upon the exercise of a Warrant, but rather the number of Warrant Shares to be issued shall be rounded up or down,
as applicable, to the nearest whole number. If fewer than all of the Warrants evidenced by a Warrant Certificate are exercised,
a new Warrant Certificate for the number of unexercised Warrants remaining shall be executed by the Company and countersigned
by the Warrant Agent as provided in Section 2 of this Warrant Agreement, and delivered to the Holder at the address specified
on the books of the Warrant Agent or as otherwise specified by such Holder. If fewer than all of the Warrants evidenced by a Book-Entry
Warrant Certificate are exercised, a notation shall be made to the records maintained by the Depository, its nominee for each
Book-Entry Warrant Certificate, or a Participant, as appropriate, evidencing the balance of the Warrants remaining after such
exercise.

 

3.3.5.
No Transfer Taxes. The Company shall not be required to pay any stamp or other tax or governmental charge required to be
paid in connection with any transfer involved in the issue of the Warrant Shares upon the exercise of Warrants; and in the event
that any such transfer is involved, the Company shall not be required to issue or deliver any Warrant Shares until such tax or
other charge shall have been paid or it has been established to the Company’s satisfaction that no such tax or other charge
is due.

 

3.3.6.
Date of Issuance. Each person in whose name any such certificate for Warrant Shares is issued shall for all purposes be
deemed to have become the holder of record of such shares on the Exercise Date, provided that the applicable Warrant was surrendered
and payment of the Exercise Price was made within two Business Days thereafter, irrespective of the date of delivery of any such
certificate, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are
closed, such person shall be deemed to have become the holder of record of such shares at the close of business on the next succeeding
date on which the stock transfer books are open.

 

3.3.7.
Cashless Exercise Under Certain Circumstances.

 

(i)
The Company shall provide to the Holder prompt written notice of any time that the Company is unable to issue the Warrant Shares
via DTC transfer or otherwise (without restrictive legend), because (A) the Commission has issued a stop order with respect to
the Registration Statement, (B) the Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement,
either temporarily or permanently, (C) the Company has suspended or withdrawn the effectiveness of the Registration Statement,
either temporarily or permanently, or (D) otherwise (each a “Restrictive Legend Event”). To the extent that
a Restrictive Legend Event occurs after the Holder has exercised a Warrant in accordance with the terms of the Warrants but prior
to the delivery of the Warrant Shares, the Company shall, at the election of the Holder to be given within five (5) Business Days
of receipt of notice of the Restrictive Legend Event, either (A) rescind the previously submitted Election to Purchase and the
Company shall return all consideration paid by the Holder for such shares upon such rescission or (B) treat the attempted exercise
as a cashless exercise as described in the next paragraph and refund the cash portion of the Exercise Price to the Holder.

 

(ii)
If a Restrictive Legend Event has occurred and no exemption from the registration requirements is available, the Warrants shall
only be exercisable on a cashless basis. Notwithstanding anything herein to the contrary, the Company shall not be required to
make any cash payments or net cash settlement to the Holder in lieu of issuance of the Warrant Shares. Upon a “cashless
exercise,” the Holder shall be entitled to receive a certificate (or book entry) for the number of Warrant Shares equal
to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A)
= the VWAP on the Business Day immediately preceding the date on which the Holder elects to exercise the Warrant by means of a
“cashless exercise,” as set forth in the applicable Election to Purchase;

 

(B)
= the Exercise Price of the Warrant, as it may have been adjusted hereunder; and

 

(X)
= the number of Warrant Shares that would be issuable upon exercise of the Warrant in accordance with the terms of the Warrant
if such exercise were by means of a cash exercise rather than a cashless exercise.

 

    	 

    	 

    

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company
agrees not to take any position contrary to this Section 3.3.7.

 

Upon
receipt of an Election to Purchase for a cashless exercise, the Warrant Agent will promptly deliver a copy of the Election to
Purchase to the Company to confirm the number of Warrant Shares issuable in connection with the cashless exercise. The Company
shall calculate and transmit to the Warrant Agent, and the Warrant Agent shall have no obligation under this section to calculate,
the number of Warrant Shares issuable in connection with the cashless exercise.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on NYSE AMEX, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market or the New
York Stock Exchange (each, a “Trading Market”), the daily volume weighted average price of the Common Stock
for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported
by Bloomberg L.P. (based on a trading day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time) on any day that
the Trading Market on which the Common Stock is then listed is open for trading), (b) the volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed
or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets”
published by OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most
recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common
Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Warrants
then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

3.3.8.
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall promptly issue to the applicable Holders the number of Warrant Shares that are not disputed.

 

4.
Adjustments.

 

4.1.
Adjustment upon Subdivision or Combination of Common Stock.

 

4.1.1.
If the Company at any time after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization, reorganization,
scheme, arrangement or otherwise) its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in
effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately
increased.

 

4.1.2.
If the Company at any time after the Issuance Date combines (by any stock split, stock dividend, recapitalization, reorganization,
scheme, arrangement or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in
effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be proportionately
decreased. Any adjustment under this Section 4.1 shall become effective at the close of business on the date the subdivision or
combination becomes effective. The Company shall promptly notify Warrant Agent of any such adjustment and give specific instructions
to Warrant Agent with respect to any adjustments to the Warrant Register.

 

4.2.
Adjustment for Other Distributions. In the event the Company shall fix a record date for the making of a dividend or distribution
to all holders of Common Stock of any evidences of indebtedness or assets or subscription rights or warrants (excluding those
referred to in Section 4.1 or other dividends paid out of retained earnings), then in each such case the Exercise Price shall
be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders
entitled to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date
mentioned above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at
such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share
of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in
a statement provided to each Holder of the portion of assets or evidences of indebtedness so distributed or such subscription
rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall
become effective immediately after the record date mentioned above.

 

    	 

    	 

    

 

4.3.
Subsequent Equity Sales. If the Company or any Subsidiary thereof, as applicable, at any time prior to the five (5) year
anniversary of the Issuance Date, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise
dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Convertible
Securities, at an effective price per share less than the Exercise Price then in effect (such lower price, the “Base
Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood and agreed
that if the holder of the Common Stock or Convertible Securities so issued shall at any time, whether by operation of purchase
price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options
or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective
price per share that is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise
Price on such date of the Dilutive Issuance at such effective price), then simultaneously with the consummation of each Dilutive
Issuance the Exercise Price shall be reduced and only reduced to equal the higher of the (i) Base Share Price or (ii) $0.05 (the
“Floor Price” (such Floor Price to only be subject to adjustment in accordance with Section 4.1.1. For the
avoidance of doubt, if more than one security is issued in a transaction that is being analyzed to determine whether a Dilutive
Issuance has occurred and/or to determine a Base Share Price, each security so issued shall be analyzed separately with respect
to such determinations such that the lowest effective price per share with respect to each such security shall be used. For example,
if the existing exercise price under this Warrant is $1.00 and the Company issues units for $0.90 per unit, with each unit comprised
of one (1) share of Common Stock and one (1) Warrant exercisable for one (1) share of Common Stock, which new warrant has an exercise
price of $1.50 per share, the Base Share Price will be $0.90. Notwithstanding the foregoing, no adjustments shall be made, paid
or issued under this Section 4.3 in respect of an Exempt Issuance. The Company shall notify the Holder, in writing, no later than
the Trading Day following the issuance or deemed issuance of any Common Stock or Convertible Securities subject to this Section
4.3, indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing
terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Company
provides a Dilutive Issuance Notice pursuant to this Section 4.3, upon the occurrence of any Dilutive Issuance, the Holder is
entitled to receive a number of Warrant Shares based upon the Base Share Price regardless of whether the Holder accurately refers
to the Base Share Price in the Election to Purchase. For all purposes of the foregoing (including, without limitation, determining
the Base Share Price under this Section 4.3), the following shall be applicable:

 

4.3.1
Issuance of Options. If the Company in any manner grants or sells any Options and the lowest price per share for which
one share of Common Stock is at any time issuable upon the exercise of any such Option or upon conversion, exercise or exchange
of any Convertible Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof is less than
the Exercise Price then in effect, then such share of Common Stock shall be deemed to be outstanding and to have been issued and
sold by the Company at the time of the granting or sale of such Option for such price per share. For purposes of this Section
4.3(a), the “lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Options
or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option or otherwise
pursuant to the terms thereof” shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if
any) received or receivable by the Company with respect to any one share of Common Stock upon the granting or sale of such Option,
upon exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such
Option or otherwise pursuant to the terms thereof and (y) the lowest exercise price set forth in such Option for which one share
of Common Stock is issuable upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible
Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof minus (2) the sum of all amounts
paid or payable to the holder of such Option (or any other person) upon the granting or sale of such Option, upon exercise of
such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option or otherwise
pursuant to the terms thereof plus the value of any other consideration received or receivable by, or benefit conferred on, the
holder of such Option (or any other person). Except as contemplated below, no further adjustment of the Exercise Price shall be
made upon the actual issuance of such shares of Common Stock or of such Convertible Securities upon the exercise of such Options
or otherwise pursuant to the terms of or upon the actual issuance of such shares of Common Stock upon conversion, exercise or
exchange of such Convertible Securities.

 

    	 

    	 

    

 

4.3.2.
Issuance of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest
price per share for which one share of Common Stock is at any time issuable upon the conversion, exercise or exchange thereof
or otherwise pursuant to the terms thereof is less than the Exercise Price then in effect, then such share of Common Stock shall
be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible
Securities for such price per share. For the purposes of this Section 4.3(b), the “lowest price per share for which one
share of Common Stock is issuable upon the conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof”
shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the Company
with respect to one share of Common Stock upon the issuance or sale of the Convertible Security and upon conversion, exercise
or exchange of such Convertible Security or otherwise pursuant to the terms thereof and (y) the lowest conversion price set forth
in such Convertible Security for which one share of Common Stock is issuable upon conversion, exercise or exchange thereof or
otherwise pursuant to the terms thereof minus (2) the sum of all amounts paid or payable to the holder of such Convertible Security
(or any other person) upon the issuance or sale of such Convertible Security plus the value of any other consideration received
or receivable by, or benefit conferred on, the holder of such Convertible Security (or any other person). Except as contemplated
below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock upon
conversion, exercise or exchange of such Convertible Securities or otherwise pursuant to the terms thereof, and if any such issuance
or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of this Warrant has been or is
to be made pursuant to other provisions of this Section 4.3, except as contemplated below, no further adjustment of the Exercise
Price shall be made by reason of such issuance or sale.

 

4.3.3.
Change in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional
consideration, if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at
which any Convertible Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases or decreases
at any time (other than proportional changes in conversion or exercise prices, as applicable, in connection with an event referred
to in Section 4.1), the Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise Price
which would have been in effect at such time had such Options or Convertible Securities provided for such increased or decreased
purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially
granted, issued or sold. For purposes of this Section 4.3(c), if the terms of any Option or Convertible Security that was outstanding
as of the Issuance Date are increased or decreased in the manner described in the immediately preceding sentence, then such Option
or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be
deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 4.3 shall be made
if such adjustment would result in an increase of the Exercise Price then in effect.

 

4.3.4.
Calculation of Consideration Received. If any shares of Common Stock, Options or Convertible Securities are issued or sold
for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of such consideration,
except where such consideration consists of publicly traded securities, in which case the amount of consideration received by
the Company for such securities will be the arithmetic average of the volume weighted average price of such security for each
of the five (5) Trading Days immediately preceding the date of receipt. If any shares of Common Stock, Options or Convertible
Securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving
entity, the amount of consideration therefor will be deemed to be the fair value of such portion of the net assets and business
of the non-surviving entity as is attributable to such shares of Common Stock, Options or Convertible Securities (as the case
may be). The fair value of any consideration other than cash or publicly traded securities will be determined jointly by the Company
and the Holder. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring
valuation (the “Valuation Event”), the fair value of such consideration will be determined within five (5)
Trading Days after the tenth (10th) day following such Valuation Event by an independent, reputable appraiser jointly selected
by the Company and the Holder. The determination of such appraiser shall be final and binding upon all parties absent manifest
error and the fees and expenses of such appraiser shall be borne by the Company.

 

    	 

    	 

    

 

4.3.5.
Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A)
to receive a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to
subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be
the date of the issuance or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such
dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase (as the
case may be).

 

“Convertible
Securities” means any stock or securities (other than Options) directly or indirectly convertible into or exercisable
or exchangeable for shares of Common Stock.

 

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

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company
pursuant to any stock or option plan duly adopted for such purpose by a majority of the non-employee members of the Board of Directors
or a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the
Company, (b) securities upon the exercise or exchange of or conversion of any securities issued hereunder and/or other securities
exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the Issuance Date, provided
that such securities have not been amended since the Issuance Date to increase the number of such securities or to decrease the
exercise price, exchange price or conversion price of such securities or to extend the term or such securities, and (c) securities
issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company,
provided that such securities are issued as “restricted securities” (as defined in Rule 144) and carry no registration
rights that require or permit the filing of any registration statement in connection therewith during the ninety (90) day period
commencing on the Issuance Date, and provided that any such issuance shall only be to a Person (or to the equity holders of a
Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with
the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall
not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity
whose primary business is investing in securities; provided, however, that notwithstanding anything herein to the contrary, any
issuance of securities pursuant to or in connection with that certain Common Stock Purchase Agreement, dated May 4, 2017, between
the Company and Aspire Capital Fund, LLC, as the same may be amended from time to time, shall not be an “Exempt Issuance”
for all purposes of this Warrant Agreement and the Warrants.

 

    	 

    	 

    

 

4.4.
Reclassification, Consolidation, Purchase, Combination, Sale or Conveyance. If, at any time while the Warrants are outstanding,
(i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company
with or into another person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer,
conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any,
direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another person) is completed pursuant
to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property
and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly,
in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities,
cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share
purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off
or scheme of arrangement) with another person whereby such other person acquires more than 50% of the outstanding shares of Common
Stock (not including any shares of Common Stock held by the other person or other persons making or party to, or associated or
affiliated with the other persons making or party to, such stock or share purchase agreement or other business combination) (each
a “Fundamental Transaction”), then, upon any subsequent exercise of a Warrant, each Holder shall have the right
to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, the same amount and kind of securities, cash or property, if any, of the successor or acquiring corporation
or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which each Warrant
is exercisable immediately prior to such Fundamental Transaction. For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration that such Holder
receives upon any exercise of each Warrant following such Fundamental Transaction. The Company shall cause any successor entity
in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) and for which
stockholders received any equity securities of the Successor Entity, to assume in writing all of the obligations of the Company
under this Warrant Agreement in accordance with the provisions of this Section 4.3 pursuant to written agreements and shall, upon
the written request of such Holder, deliver to such Holder in exchange for the applicable Warrants created by this Warrant Agreement
a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to the Warrants
which are exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity), if
any, plus any Alternate Consideration, receivable as a result of such Fundamental Transaction by a holder of the number of shares
of Common Stock for which the Warrants are exercisable immediately prior to such Fundamental Transaction, and with an exercise
price which applies the Exercise Price hereunder to such shares of capital stock, if any, plus any Alternate Consideration (but
taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of
such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting
the economic value of such Warrant immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence
of any such Fundamental Transaction the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant Agreement and the Warrants referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant Agreement and the Warrants with the same effect as if such Successor Entity had
been named as the Company herein and therein.

 

    	 

    	 

    

 

The
Company shall instruct the Warrant Agent to mail, by first class mail, postage prepaid, to each Holder, written notice of the
execution of any such amendment, supplement to this Warrant Agreement and/or the Warrants or other agreement. Any such amendment,
supplement or other agreement entered into by the Successor Entity shall provide for adjustments, which shall be as nearly equivalent
as may be practicable to the adjustments provided for in this Section 4. The Warrant Agent shall be under no responsibility to
determine the correctness of any provisions contained in such amendment, supplement or other agreement relating either to the
kind or amount of securities or other property receivable upon exercise of the Warrants or with respect to the method employed
and provided therein for any adjustments and shall be entitled to rely upon the provisions contained in any such amendment, supplement
or other agreement. The provisions of this Section 4.3 shall similarly apply to successive reclassifications, changes, consolidations,
mergers, sales and conveyances of the kind described above.

 

4.5.
Other Events. If any event occurs of the type contemplated by the provisions of Section 4.1, 4.2 or 4.3 but not expressly
provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights
or other rights with equity features to all holders of Common Stock for no consideration), then the Company’s Board of Directors
will in good faith make an adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights of each
Holder.

 

4.6.
Notices of Changes in Warrant. Upon every adjustment of the Exercise Price or the number of Warrant Shares, the Company
shall give written notice thereof to the Warrant Agent, which notice shall state the Exercise Price resulting from such adjustment
and the increase or decrease, if any, in the number of Warrant Shares purchasable upon the exercise of a Warrant, setting forth
in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of any
event specified in Sections 4.1, 4.2 or 4.3, then, in any such event, the Company shall give written notice to each Holder, at
the last address set forth for such Holder in the Warrant Register, of the record date or the effective date of the event. Failure
to give such notice, or any defect therein, shall not affect the legality or validity of such event. To the extent that any notice
provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Company’s
subsidiaries, the Company shall simultaneously file such notice with the Securities and Exchange Commission pursuant to a Current
Report on Form 8-K.

 

4.7.
No Fractional Shares. Notwithstanding any provision contained in this Warrant Agreement to the contrary, the Company shall
not issue fractional shares upon exercise of Warrants. If, by reason of any adjustment made pursuant to this Section 4, a Holder
would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the Company shall, upon such
exercise, round up or down, as applicable, to the nearest whole number the number of Warrant Shares to be issued to such Holder.

 

    	 

    	 

    

 

4.8.
Form of Warrant. The form of Warrant annexed hereto as Exhibit A need not be changed because of any adjustment pursuant
to this Section 4, and Warrants issued after such adjustment may state the same Exercise Price and the same number of shares as
is stated in the Warrants initially issued pursuant to this Warrant Agreement. However, the Company may at any time in its sole
discretion make any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance
thereof, and any Warrant thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant or
otherwise, may be in the form as so changed.

 

5.
Transfer and Exchange of Warrants.

 

5.1.
Registration of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant
upon the Warrant Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed
and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall
be delivered by the Warrant Agent to the Company from time to time upon request.

 

5.2.
Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request
for exchange or transfer reasonably acceptable to Warrant Agent, duly executed by the Holder thereof, or by a duly authorized
attorney, and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the Holder
of the Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however, that except as otherwise
provided herein or in any Book-Entry Warrant Certificate, each Book-Entry Warrant Certificate may be transferred only in whole
and only to the Depository, to another nominee of the Depository, to a successor depository, or to a nominee of a successor depository;
provided further, however, that in the event that a Warrant surrendered for transfer bears a restrictive legend, the Warrant Agent
shall not cancel such Warrant and issue new Warrants in exchange therefor until the Warrant Agent has received an opinion of counsel
for the Company stating that such transfer may be made and indicating whether the new Warrants must also bear a restrictive legend.
Upon any such registration of transfer, the Company shall execute, and the Warrant Agent shall countersign and deliver, in the
name of the designated transferee a new Warrant Certificate or Warrant Certificates of any authorized denomination evidencing
in the aggregate a like number of unexercised Warrants.

 

5.3.
Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will
result in the issuance of a Warrant Certificate for a fraction of a Warrant.

 

5.4.
Service Charges. A service charge shall be made for any exchange or registration of transfer of Warrants, as negotiated
between Company and Warrant Agent.

 

5.5.
Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance
with the terms of this Warrant Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and
the Company, whenever required by the Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the
Company for such purpose.

 

6.
Limitations on Exercise. Neither the Warrant Agent nor the Company shall effect any exercise of any Warrant, and no Holder
shall have the right to exercise any portion of a Warrant, to the extent that after giving effect to the issuance of shares of
Common Stock after exercise as set forth on the applicable Election to Purchase, such Holder (together with such Holder’s
Affiliates (as defined in Rule 405 under the Securities Act), and any other persons acting as a group together with such Holder
or any of such Holder’s Affiliates), would beneficially own in excess of 4.99% (or the percentage otherwise specified or
provided for in the Beneficial Ownership Limitation Adjustment Notice (as defined below)) of the Company’s Common Stock
(such percentage, the “Beneficial Ownership Limitation”). For purposes of the foregoing sentence, the number of shares
of Common Stock beneficially owned by a Holder and its Affiliates shall include the number of shares of Common Stock issuable
upon exercise of the Warrant with respect to which such determination is being made, but shall exclude the number of shares of
Common Stock which would be issuable upon exercise of the remaining, nonexercised portion of any Warrant beneficially owned by
such Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 6, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and the rules and regulations promulgated thereunder, it being acknowledged by each Holder that neither the Warrant
Agent nor the Company is representing to such Holder that such calculation is in compliance with Section 13(d) of the Exchange
Act and such Holder is solely responsible for any schedules required to be filed in accordance therewith.

 

    	 

    	 

    

 

A
Holder may increase or decrease the Beneficial Ownership Limitation by providing written notice to the Company (which notice may
not be waived) in the form annexed hereto (the “Beneficial Ownership Limitation Adjustment Notice”); provided that
the Beneficial Ownership Limitation in no event may exceed 19.99% of the Company’s Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant by the Holder; and provided further
that a Holder’s who fails to specify a Beneficial Ownership Limitation in a Beneficial Ownership Limitation Adjustment Notice
shall be deemed to have specified a Beneficial Ownership Limitation of 9.99% of the number of shares of the Company’s Common
Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant
by the applicable Holder and a Holder who specifies a Beneficial Ownership Limitation in a Beneficial Ownership Limitation Adjustment
Notice in excess of 19.99% shall be deemed to have specified a Beneficial Ownership Limitation of 19.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise
of this Warrant by the applicable Holder. Any such increase in the Beneficial Ownership Limitation will not be effective until
the 61st day after such Beneficial Ownership Limitation Adjustment Notice is delivered to the Corporation and shall only apply
to such Holder and no other Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 6 to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary
or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor
Holder of this Warrant.

 

To
the extent that the limitation contained in this Section 6 applies, the determination of whether a Warrant is exercisable (in
relation to other securities owned by a Holder together with any Affiliates) and of which portion of a Warrant is exercisable
shall be in the sole discretion of a Holder, and the submission of an Election to Purchase shall be deemed to be such Holder’s
determination of whether such Warrant is exercisable (in relation to other securities owned by such Holder together with any Affiliates)
and of which portion of a Warrant is exercisable, and neither the Warrant Agent nor the Company shall have any obligation to verify
or confirm the accuracy of such determination and neither of them shall have any liability for any error made by such Holder.
In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 6, in determining the number
of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A)
the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public
announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth
the number of shares of Common Stock outstanding. The provisions of this Section 6 shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 6 to correct this subsection (or any portion hereof) which
may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to
a successor Holder.

 

7.
Other Provisions Relating to Rights of Holders of Warrants.

 

7.1.
No Rights as Stockholder. Except as otherwise specifically provided herein, a Holder, solely in its capacity as an owner
of a Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any
purpose, nor shall anything contained in this Warrant Agreement be construed to confer upon a Holder, solely in its capacity as
the owner of a Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any
corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder
of the Warrant Shares which it is then entitled to receive upon the due exercise of a Warrant. For the avoidance of doubt, ownership
of a Warrant does not entitle the Holder or any beneficial owner thereof to any of the rights of a stockholder.

 

7.2.
Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company and
the Warrant Agent may on such terms as to indemnity (including obtaining an open penalty bond protecting the Warrant Agent) or
otherwise as they may in their discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof),
issue a new Warrant of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such new
Warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated,
or destroyed Warrant shall be at any time enforceable by anyone.

 

    	 

    	 

    

 

7.3.
Reservation of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued
shares of Common Stock that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this
Warrant Agreement.

 

8.
Concerning the Warrant Agent and Other Matters.

 

8.1.
Concerning the Warrant Agent. The Warrant Agent:

 

a)
shall have no duties or obligations other than those set forth herein and no duties or obligations shall be inferred or implied;

 

b)
may rely on and shall be held harmless by the Company in acting upon any certificate, statement, instrument, opinion, notice,
letter, facsimile transmission, telegram or other document, or any security delivered to it, and reasonably believed by it to
be genuine and to have been made or signed by the proper party or parties;

 

c)
may rely on and shall be held harmless by the Company in acting upon written or oral instructions or statements from the Company
with respect to any matter relating to its acting as Warrant Agent;

 

d)
may consult with counsel satisfactory to it (including counsel for the Company) and shall be held harmless by the Company in relying
on the advice or opinion of such counsel in respect of any action taken, suffered or omitted by it hereunder in good faith and
in accordance with such advice or opinion of such counsel;

 

e)
solely shall make the final determination as to whether or not a Warrant received by Warrant Agent is duly, completely and correctly
executed, and Warrant Agent shall be held harmless by the Company in respect of any action taken, suffered or omitted by Warrant
Agent hereunder in good faith and in accordance with its determination;

 

f)
shall not be obligated to take any legal or other action hereunder which might, in its judgment, subject or expose it to any expense
or liability unless it shall have been furnished with an indemnity satisfactory to it; and

 

g)
shall not be liable or responsible for any failure of the Company to comply with any of the Company’s obligations relating
to the Registration Statement or this Warrant Agreement, including without limitation obligations under applicable regulation
or law.

 

8.2.
Payment of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company
or the Warrant Agent in respect of the issuance or delivery of Warrant Shares upon the exercise of Warrants, but the Company shall
not be obligated to pay any transfer taxes in respect of the Warrants or such Warrant Shares. The Warrant Agent shall not register
any transfer or issue or deliver any Warrant Certificate(s) or Warrant Shares unless or until the persons requesting the registration
or issuance shall have paid to the Warrant Agent for the account of the Company the amount of such tax, if any, or shall have
established to the reasonable satisfaction of the Company that such tax, if any, has been paid.

 

    	 

    	 

    

 

8.3.
Resignation, Consolidation, or Merger of Warrant Agent.

 

8.3.1.
Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties
and be discharged from all further duties and liabilities hereunder after giving sixty (60) calendar days’ notice in writing
to the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company
shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment
within a period of thirty (30) calendar days after it has been notified in writing of such resignation or incapacity by the Warrant
Agent or by the Holder (who shall, with such notice, submit such Holder’s Warrants for inspection by the Company), then
such Holder may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor
Warrant Agent, the expenses of which shall be paid by the Company. Any successor Warrant Agent (but not including the initial
Warrant Agent), whether appointed by the Company or by such court, shall be a corporation organized and existing under the laws
of the State of New York, in good standing and having its principal office in the Borough of Manhattan, City of New York and State
of New York, and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal
or state authority. After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities,
duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without
any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute
and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers,
and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make,
execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming
to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.

 

8.3.2.
Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice
thereof to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any
such appointment.

 

8.3.3.
Merger or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with which it may
be consolidated or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party shall
be the successor Warrant Agent under this Warrant Agreement without any further act.

 

8.4.
Fees and Expenses of Warrant Agent.

 

8.4.1.
Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration in an amount separately agreed to between
Company and Warrant Agent for its services as Warrant Agent hereunder and will reimburse the Warrant Agent upon demand for all
expenditures that the Warrant Agent may reasonably incur in the execution of its duties hereunder.

 

8.4.2.
Further Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed,
acknowledged, and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the
Warrant Agent for the carrying out or performing of the provisions of this Warrant Agreement.

 

8.5.
Liability of Warrant Agent.

 

8.5.1.
Reliance on Company Statement. Whenever in the performance of its duties under this Warrant Agreement, the Warrant Agent
shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering
any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be
deemed to be conclusively proved and established by a statement signed by the President, Chief Executive Officer or Chief Financial
Officer of the Company and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken
or suffered in good faith by it pursuant to the provisions of this Warrant Agreement.

 

    	 

    	 

    

 

8.5.2.
Indemnity. The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith.
The Company agrees to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, claims,
losses, damages, costs and reasonable counsel fees, for anything done or omitted by the Warrant Agent in the execution of this
Warrant Agreement except as a result of the Warrant Agent’s gross negligence, willful misconduct, or bad faith.

 

8.5.3.
Limitation of Liability. The Warrant Agent’s aggregate liability, if any, during the term of this Warrant Agreement
with respect to, arising from, or arising in connection with this Warrant Agreement, or from all services provided or omitted
to be provided under this Warrant Agreement, whether in contract, or in tort, or otherwise, is limited to, and shall not exceed,
the amounts paid or payable hereunder by the Company to Warrant Agent as fees and charges (not including reimbursable expenses).

 

8.5.4.
Disputes. In the event any question or dispute arises with respect to the proper interpretation of this Warrant Agreement
or the Warrant Agent’s duties hereunder or the rights of the Company or of any Holder, the Warrant Agent shall not be required
to act and shall not be held liable or responsible for refusing to act until the question or dispute has been judicially settled
(and the Warrant Agent may, if it deems it advisable, but shall not be obligated to, file a suit in interpleader or for a declaratory
judgment for such purpose) by final judgment rendered by a court of competent jurisdiction, binding on all parties interested
in the matter which is no longer subject to review or appeal, or settled by a written document in form and substance satisfactory
to the Warrant Agent and executed by the Company and each other interested party. In addition, the Warrant Agent may require for
such purpose, but shall not be obligated to require, the execution of such written settlement by all of the Holders of the Warrants
and all other parties that may have an interest in the settlement.

 

8.5.5.
Exclusions. The Warrant Agent shall have no responsibility with respect to the validity of this Warrant Agreement or with
respect to the validity or execution of any Warrant (except its countersignature hereof and thereof); nor shall it be responsible
for any breach by the Company of any covenant or condition contained in this Warrant Agreement or in any Warrant; nor shall it
be responsible to make any adjustments required under the provisions of Section 4 hereof or responsible for the manner, method,
or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment; nor shall
it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Warrant
Shares to be issued pursuant to this Warrant Agreement or any Warrant or as to whether any Warrant Shares will, when issued, be
validly issued and fully paid and nonassessable.

 

8.6.
Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Warrant Agreement and agrees to perform
the same upon the terms and conditions herein set forth and, among other things, shall account promptly to the Company with respect
to Warrants exercised and concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the purchase
of Warrant Shares through the exercise of Warrants.

 

9.
Miscellaneous Provisions.

 

9.1.
Successors. All the covenants and provisions of this Warrant Agreement by or for the benefit of the Company or the Warrant
Agent shall bind and inure to the benefit of their respective successors and assigns.

 

9.2.
Notices. Any notice, statement or demand authorized by this Warrant Agreement to be given or made by the Warrant Agent
or by a Holder to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent
by certified mail or private courier service within five (5) Business Days after deposit of such notice, postage prepaid, addressed
(until another address is filed in writing by the Company with the Warrant Agent), as follows:

 

Ritter
Pharmaceuticals, Inc.

1880
Century Park East, Suite 1000

Los
Angeles, CA 90067

Attn:
Chief Executive Officer

 

    	 

    	 

    

 

Any
notice, statement or demand authorized by this Warrant Agreement to be given or made by the a Holder or by the Company to or on
the Warrant Agent shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail
or private courier service within five (5) Business Days after deposit of such notice, postage prepaid, addressed (until another
address is filed in writing by the Warrant Agent with the Company), as follows:

 

Corporate
Stock Transfer, Inc.

3200
Cherry Creek South Drive, Suite 430

Denver,
Colorado 80209

Attn:
Shari Humpherys

Email:
shumpherys@corporatestock.com

Facsimile:
(303) 282-5800

 

with
a copy in each case to:

 

Reed
Smith LLP

1901
Avenue of the Stars, Suite 700

Los
Angeles, California 90067-6078

Attn:
Michael Sanders, Esq.

 

and:

 

Aegis
Capital Corp.

810
Seventh Avenue, 11th Fl

New
York, NY 10019

Attn:
Compliance Department

 

and:

 

Mintz,
Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

666
Third Avenue

New
York, NY 10017

Attn:
Anthony J. Marsico, Esq.

 

9.3.
Applicable Law. The validity, interpretation, and performance of this Warrant Agreement and of the Warrants shall be governed
in all respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in
the application of the substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim
against it arising out of or relating in any way to this Warrant Agreement shall be brought and enforced in the courts of the
State of New York or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenience forum. Any such process or summons to be served upon the Company may be served by transmitting a copy
thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in
Section 9.2 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action,
proceeding or claim.

 

9.4.
Persons Having Rights under this Warrant Agreement. Nothing in this Warrant Agreement expressed and nothing that may be
implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation
other than the parties hereto and the Holders of the Warrants and, for purposes of Sections 3.3, 9.3 and 9.8, the Underwriter,
any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant, condition, stipulation, promise,
or agreement hereof. The Underwriters shall be deemed to be an express third-party beneficiary of this Warrant Agreement with
respect to Sections 3.3, 9.3 and 9.8 hereof. All covenants, conditions, stipulations, promises, and agreements contained in this
Warrant Agreement shall be for the sole and exclusive benefit of the parties hereto (and the Underwriters with respect to the
Sections 3.3, 3.4, 9.3 and 9.8 hereof) and their successors and assigns and of the Holders.

 

    	 

    	 

    

 

9.5.
Examination of this Warrant Agreement. A copy of this Warrant Agreement shall be available at all reasonable times at the
office of the Warrant Agent designated for such purpose for inspection by any Holder. The Warrant Agent may require any such Holder
to submit his Warrant for inspection by it.

 

9.6.
Counterparts. This Warrant Agreement may be executed in any number of original or facsimile counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and
the same instrument.

 

9.7.
Effect of Headings. The Section headings herein are for convenience only and are not part of this Warrant Agreement and
shall not affect the interpretation thereof.

 

9.8.
Amendments. This Warrant Agreement may be amended by the parties hereto without the consent of any Holder for the purpose
of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein or adding or changing
any other provisions with respect to matters or questions arising under this Warrant Agreement as the parties may deem necessary
or desirable and that the parties deem shall not adversely affect the interest of the Holders. All other modifications or amendments,
including any amendment to increase the Exercise Price or shorten the Exercise Period, shall require the written consent of the
Underwriter and the Holders of a majority of the then outstanding Warrants.

 

9.9.
Severability. This Warrant Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of this Warrant Agreement or of any other term or provision hereof. Furthermore,
in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part
of this Warrant Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be
valid and enforceable.

 

9.10.
Force Majeure. In the event either party is unable to perform its obligations under the terms of this Warrant Agreement
because of acts of God, strikes, failure of carrier or utilities, equipment or transmission failure or damage that is reasonably
beyond its control, or any other cause that is reasonably beyond its control, such party shall not be liable for damages to the
other for any damages resulting from such failure to perform or otherwise from such causes. Performance under this Warrant Agreement
shall resume when the affected party or parties are able to perform substantially that party’s duties.

 

9.11.
Consequential Damages. Notwithstanding anything in this Warrant Agreement to the contrary, neither party to this Warrant
Agreement shall be liable to the other party for any consequential, indirect, special or incidental damages under any provision
of this Warrant Agreement or for any consequential, indirect, punitive, special or incidental damages arising out of any act or
failure to act hereunder even if that party has been advised of or has foreseen the possibility of such damages.

 

[Signature
Page Follows]

 

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, this Warrant Agreement has been duly executed by the parties hereto as of the day and year first above written.

 

RITTER
PHARMACEUTICALS, INC.

 

	 	By:	/s/
    Andrew J. Ritter
	 	Name:	Andrew
    J. Ritter
	 	Title:	Founder
    & President

 

Corporate
Stock Transfer, Inc.

 

	 	By:	/s/
    Shari Humpherys
	 	Name:	Shari
    Humpherys
	 	Title:	Ops
    Manager

 

 

    	 

    	 

    

 

Exhibit
A

 

[FORM
OF WARRANT CERTIFICATE]

 

EXERCISABLE
ONLY IF COUNTERSIGNED BY THE WARRANT

AGENT
AS PROVIDED HEREIN.

 

Warrant
Certificate Evidencing Warrants to Purchase

Common Stock, par value of $0.001 per share, as described herein.

 

RITTER
PHARMACEUTICALS, INC.

 

No.
___________

 

VOID
AFTER 5:00 P.M., NEW YORK CITY TIME,

ON
OCTOBER 3, 2022

 

This
certifies that ________________________ or registered assigns is the registered holder (the “Holder”) of _____________________
warrants to purchase certain securities (each a “Warrant”). Each Warrant entitles the Holder, subject to the
provisions contained herein and in the Warrant Agreement (as defined below), to purchase from Ritter Pharmaceuticals, Inc., a
Delaware corporation (the “Company”), one share (collectively, the “Warrant Shares”) of
Common Stock, par value $0.001 per share, of the Company (“Common Stock”), at the Exercise Price set forth
below. The price per share at which each Warrant Share may be purchased at the time each Warrant is exercised (the “Exercise
Price”) is $0.44 initially, subject to adjustments as set forth in the Warrant Agreement (as defined below).

 

This
Warrant Certificate is issued under and in accordance with the Warrant Agreement, dated as of September 29, 2017 (the “Warrant
Agreement”), between the Company and the Warrant Agent, and is subject to the terms and provisions contained in the
Warrant Agreement, to all of which terms and provisions the Holder of this Warrant Certificate and the beneficial owners of the
Warrants represented by this Warrant Certificate consent by acceptance hereof. Copies of the Warrant Agreement are on file and
can be inspected at the below-mentioned office of the Warrant Agent and at the office of the Company at 1880 Century Park East,
Suite 1000, Los Angeles, CA 90067. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the
Warrant Agreement.

 

Subject
to the terms of the Warrant Agreement, each Warrant evidenced hereby may be exercised in whole but not in part at any time, as
specified herein, on any Business Day (as defined below) occurring during the period (the “Exercise Period”)
commencing on the Issuance Date and terminating at 5:00 P.M., New York City time, on October 3, 2022 (the “Expiration
Date”). Each Warrant remaining unexercised after 5:00 P.M., New York City time, on the Expiration Date shall become
void, and all rights of the Holder of this Warrant Certificate evidencing such Warrant shall cease.

 

The
Holder of the Warrants represented by this Warrant Certificate may exercise any Warrant evidenced hereby by delivering, not later
than 5:00 P.M., New York City time, on any Business Day during the Exercise Period to Continental Stock Transfer & Trust Co.
(the “Warrant Agent”, which term includes any successor warrant agent under the Warrant Agreement described
below) at its corporate trust department at 3200 Cherry Creek South Drive, Suite 430, Denver, Colorado 80209, by e-mail or facsimile
or through the DTC system an election to purchase the Warrant Shares underlying the Warrants to be exercised (an “Election
to Purchase”), properly completed and executed by the Holder on the reverse of the Warrant Certificate or, in the case
of a Book-Entry Warrant Certificate, properly delivered by the Participant in accordance with the Depository’s procedures
(the date of such delivery of Election to Purchase, the “Exercise Date”), and delivering to the Warrant Agent,
within one Business Day following the Exercise Date, (i) the Exercise Price for each Warrant to be exercised in lawful money of
the United States of America by certified or official bank check or by bank wire transfer in immediately available funds payable
to the Warrant Agent and (ii) the Warrant Certificate evidencing the Warrants to be exercised, if required, or, in the case of
a Book-Entry Warrant Certificate, the Warrants to be exercised (the “Book-Entry Warrants”) shown on the records
of the Depository to an account of the Warrant Agent at the Depository designated for such purpose in writing by the Warrant Agent
to the Depository from time to time.

 

    	 

    	 

    

 

As
used herein, the term “Business Day” means any day other than Saturday, Sunday or other day on which commercial
banks in the City of New York are authorized or required by law or executive order to remain closed.

 

Warrants
may be exercised only in whole numbers of Warrants. No fractional Warrant Shares are to be issued upon the exercise of this Warrant,
but rather the number of Warrant Shares to be issued shall be rounded up or down, as applicable, to the nearest whole number.
If fewer than all of the Warrants evidenced by this Warrant Certificate are exercised, a new Warrant Certificate for the number
of Warrants remaining unexercised shall be executed by the Company and countersigned by the Warrant Agent as provided in Section
2 of the Warrant Agreement, and delivered to the Holder of this Warrant Certificate at the address specified on the books of the
Warrant Agent or as otherwise specified by such Holder.

 

The
Company shall provide to the Holder prompt written notice of any time that the Company is unable to issue the Warrant Shares via
DTC transfer or otherwise (without restrictive legend), because (A) the Commission has issued a stop order with respect to the
Registration Statement, (B) the Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement,
either temporarily or permanently, (C) the Company has suspended or withdrawn the effectiveness of the Registration Statement,
either temporarily or permanently, or (D) otherwise (each a “Restrictive Legend Event”). To the extent that
a Restrictive Legend Event occurs after the Holder has exercised a Warrant in accordance with the terms of the Warrants but prior
to the delivery of the Warrant Shares, the Company shall, at the election of the Holder to be given within five (5) Business Days
of receipt of notice of the Restrictive Legend Event, either (A) rescind the previously submitted Election to Purchase and the
Company shall return all consideration paid by the Holder for such shares upon such rescission or (B) treat the attempted exercise
as a cashless exercise as described in the next paragraph and refund the cash portion of the exercise price to the Holder.

 

If
a Restrictive Legend Event has occurred and no exemption from the registration requirements is available, the Warrant shall only
be exercisable on a cashless basis. Notwithstanding anything herein to the contrary, the Company shall not be required to make
any cash payments or net cash settlement to the Holder in lieu of issuance of the Warrant Shares. Upon a “cashless exercise,”
the Holder shall be entitled to receive a certificate (or book entry) for the number of Warrant Shares equal to the quotient obtained
by dividing [(A-B) (X)] by (A), where:

 

(A)
= the VWAP on the Business Day immediately preceding the date on which the Holder elects to exercise the Warrant by means of a
“cashless exercise,” as set forth in the applicable Election to Purchase;

 

(B)
= the Exercise Price of the Warrant, as it may have been adjusted hereunder; and

 

(X)
= the number of Warrant Shares that would be issuable upon exercise of the Warrant in accordance with the terms of the Warrant
if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. Upon receipt
of an Election to Purchase for a cashless exercise, the Warrant Agent will promptly deliver a copy of the Election to Purchase
to the Company to confirm the number of Warrant Shares issuable in connection with the cashless exercise. The Company shall calculate
and transmit to the Warrant Agent, and the Warrant Agent shall have no obligation under this section to calculate, the number
of Warrant Shares issuable in connection with the cashless exercise.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New
York Stock Exchange (each, a “Trading Market”), the daily volume weighted average price of the Common Stock
for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported
by Bloomberg L.P. (based on a trading day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time) on any day that
the Trading Market on which the Common Stock is then listed is open for trading), (b) the volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed
or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets”
published by OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most
recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common
Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Warrants
then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

    	 

    	 

    

 

The
Exercise Price and the number of Warrant Shares purchasable upon the exercise of each Warrant shall be subject to adjustment as
provided pursuant to Section 4 of the Warrant Agreement.

 

Upon
due presentment for registration of transfer or exchange of this Warrant Certificate at the stock transfer division of the Warrant
Agent, the Company shall execute, and the Warrant Agent shall countersign and deliver, as provided in Section 5 of the Warrant
Agreement, in the name of the designated transferee one or more new Warrant Certificates of any authorized denomination evidencing
in the aggregate a like number of unexercised Warrants, subject to the limitations provided in the Warrant Agreement.

 

Neither
this Warrant Certificate nor the Warrants evidenced hereby entitles the Holder to any of the rights of a stockholder of the Company,
including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights to vote
or to consent or to receive notice as stockholders in respect of the meetings of stockholders or the election of directors of
the Company or any other matter.

 

The
Warrant Agreement and this Warrant Certificate may be amended as provided in the Warrant Agreement including, under certain circumstances
described therein, without the consent of the Holder of this Warrant Certificate or the Warrants evidenced thereby.

 

THIS
WARRANT CERTIFICATE AND ALL RIGHTS HEREUNDER AND UNDER THE WARRANT AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS FORMED AND TO BE PERFORMED ENTIRELY WITHIN THE STATE
OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD REQUIRE OR
PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

This
Warrant Certificate shall not be entitled to any benefit under the Warrant Agreement or be valid or obligatory for any purpose,
and no Warrant evidenced hereby may be exercised, unless this Warrant Certificate has been countersigned by the manual signature
of the Warrant Agent.

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

Dated
as of ________ __, 2017

 

RITTER
PHARMACEUTICALS, INC.

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

CORPORATE STOCK TRANSFER, INC., as Warrant Agent

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	 

    	 

    

 

[REVERSE]

 

Instructions
for Exercise of Warrant

 

To
exercise the Warrants evidenced hereby, the Holder must, by 5:00 P.M., New York City time, on the specified Exercise Date, deliver
to the Warrant Agent at its stock transfer division, a certified or official bank check or a bank wire transfer in immediately
available funds, in each case payable to the Company, in an amount equal to the Exercise Price in full for the Warrants exercised.
In addition, the Holder must provide the information required below and deliver this Warrant Certificate to the Warrant Agent
at the address set forth below and the Book-Entry Warrants to the Warrant Agent in its account with the Depository designated
for such purpose. The Warrant Certificate and this Election to Purchase must be received by the Warrant Agent by 5:00 P.M., New
York City time, on the specified Exercise Date.

 

ELECTION
TO PURCHASE

TO
BE EXECUTED IF WARRANT HOLDER DESIRES

TO
EXERCISE THE WARRANTS EVIDENCED HEREBY

 

The
undersigned hereby irrevocably elects to exercise, on __________, ____ (the “Exercise Date”), __________ Warrants,
evidenced by this Warrant Certificate, to purchase, __________ shares (the “Warrant Shares”) of Common Stock,
par value of $0.001 per share (the “Common Stock”) of Ritter Pharmaceuticals, Inc., a Delaware corporation
(the “Company”), and represents that on or before the Exercise Date:

 

[
] such Holder has tendered payment for such Warrant Shares by certified or official bank check payable to the order of the Company
c/o Corporate Stock Transfer, Inc., 3200 Cherry Creek South Drive, Suite 430, Denver, Colorado 80209, or by bank wire transfer
in immediately available funds payable to the Company at Account No. [ ], in each case in the amount of $_______ in accordance
with the terms hereof, or

 

[
] if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in
subsection 3.3.7 of the Warrant Agreement, to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable
pursuant to the cashless exercise procedure set forth in subsection 3.3.7.

 

The
undersigned requests that said number of Warrant Shares be in fully registered form, registered in such names and delivered, all
as specified in accordance with the instructions set forth below.

 

If
said number of Warrant Shares is less than all of the Warrant Shares purchasable hereunder, the undersigned requests that a new
Warrant Certificate evidencing the remaining balance of the Warrants evidenced hereby be issued and delivered to the Holder of
the Warrant Certificate unless otherwise specified in the instructions below.

 

Dated:
________ __, ____

 

	 	Name	 	 
	 	 	(Please
    Print)	 

 

/
/ / / - / / / - / / / / /

(Insert
Social Security or Other Identifying Number of Holder)

 

	 	Address	 	 
	 	 	 	 
	 	 	 	 
	 	Signature	 	 

 

This
Warrant may only be exercised by presentation to the Warrant Agent at one of the following locations:

 

    	 

    	 

    

 

	 	By
    hand at: 	Corporate
    Stock Transfer, Inc.
	 	 	3200
    Cherry Creek South Drive, Suite 430
	 	 	Denver,
    Colorado 80209
	 	 	 
	 	By
    mail at:	Corporate
    Stock Transfer, Inc.
	 	 	3200
    Cherry Creek South Drive, Suite 430
	 	 	Denver,
    Colorado 80209

 

The
method of delivery of this Warrant Certificate is at the option and risk of the exercising Holder and the delivery of this Warrant
Certificate will be deemed to be made only when actually received by the Warrant Agent. If delivery is by mail, registered mail
with return receipt requested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely
delivery.

 

(Instructions
as to form and delivery of Warrant Shares and/or Warrant Certificates)

 

	Name
    in which Warrant Shares are to be registered if other than in the name of the Holder of this Warrant Certificate:	 
	 	 
	Address
    to which Warrant Shares are to be mailed if other than to the address of the Holder of this Warrant Certificate as shown on
    the books of the Warrant Agent:	 

 

	 	(Street
    Address)
	 	 
	 	(City
    and State) (Zip Code)

 

	Name
    in which Warrant Certificate evidencing unexercised Warrants, if any, is to be registered if other than in the name of the
    Holder of this Warrant Certificate:	 
	 	 
	Address
    to which certificate representing unexercised Warrants, if any, is to be mailed if other than to the address of the Holder
    of this Warrant Certificate as shown on the books of the Warrant Agent:	 

 

 

	 	(Street
    Address)
	 	 
	 	(City
    and State) (Zip Code)
	 	 
	 	Dated:
	 	 
	 	Signature:

 

	 	Signature
    must conform in all respects to the name of the Holder as specified on the face of this Warrant Certificate. If Warrant Shares,
    or a Warrant Certificate evidencing unexercised Warrants, are to be issued in a name other than that of the Holder hereof
    or are to be delivered to an address other than the address of such Holder as shown on the books of the Warrant Agent, the
    above signature must be guaranteed by a an Eligible Guarantor Institution (as that term is defined in Rule 17Ad-15 of the
    Securities Exchange Act of 1934, as amended).

 

    	 

    	 

    

 

SIGNATURE
GUARANTEE

 

	Name
    of Firm	 	 
	Address	 	 
	Area
    Code and Number	 	 

 

	Authorized
    Signature	 	 

 

	Name	 	 
	Title	 	 
	Dated:	_____________,
    20__	 

 

    	 

    	 

    

 

ASSIGNMENT

 

(FORM
OF ASSIGNMENT TO BE EXECUTED IF WARRANT HOLDER

DESIRES TO TRANSFER WARRANTS EVIDENCED HEREBY)

 

FOR
VALUE RECEIVED, ____________ HEREBY SELL(S), ASSIGN(S) AND TRANSFER(S) UNTO

 

	(Please
    print name and address

    including zip code of assignee)	 	(Please
    insert social security or

    other identifying number of assignee)

 

the
rights represented by the within Warrant Certificate and does hereby irrevocably constitute and appoint ____________ Attorney
to transfer said Warrant Certificate on the books of the Warrant Agent with full power of substitution in the premises.

 

	 	Dated:
	 	 
	 	Signature
	 	 
	 	(Signature
    must conform in all respects to the name of the Holder as specified on the face of this Warrant Certificate and must bear
    a signature guarantee by an Eligible Guarantor Institution (as that term is defined in Rule 17Ad-15 of the Securities Exchange
    Act of 1934, as amended).

 

SIGNATURE
GUARANTEE

 

	Name
    of Firm	 	 
	Address	 	 
	Area
    Code and Number	 	 

 

	Authorized
    Signature	 	 

 

	Name	 	 
	Title	 	 
	Dated:	_____________,
    20__	 

 

    	 

    	 

    

 

Beneficial
Ownership Limitation Adjustment Notice

 

(TO
BE EXECUTED BY THE REGISTERED HOLDER IN ORDER TO INCREASE OR DECREASE THE BENEFICIAL OWNERSHIP LIMITATION APPLICABLE TO SUCH HOLDER’S
PREFERRED STOCK)

 

By
checking the box below, the undersigned hereby irrevocably elects to waive the 4.99% Beneficial Ownership Limitation, as designated
by the undersigned’s election below, applicable to the undersigned’s beneficial ownership of Common Stock of Ritter
Pharmaceuticals, Inc., a Delaware corporation, as such Beneficial Ownership Limitation is defined under Section 6 of the Warrant
Agency Agreement.

 

	 	●	The
    undersigned hereby elects to waive the 4.99% Beneficial Ownership Limitation applicable to the undersigned’s beneficial
    ownership of Common Stock.

 

The
Beneficial Ownership Limitation applicable to the undersigned’s Common Stock (effective as of the date that is 62 days following
the date of this Beneficial Ownership Limitation Adjustment Notice) shall be:

 

______________________%
(may not be more than 19.99%)

 

*
Notice: Failure to specify a Beneficial Ownership Limitation percentage above will result in the undersigned’s being deemed
to have specified a Beneficial Ownership Limitation of 9.99%. Specifying a Beneficial Ownership Limitation percentage in excess
of 19.99% will result in the undersigned’s being deemed to have specified a Beneficial Ownership Limitation of 19.99%.

 

The
undersigned understands and agrees that, as a result of this waiver, the Beneficial Ownership Limitation applicable to the Common
Stock beneficially owned by the undersigned shall be (i) the percentage specified by the undersigned above or (ii) 9.99%, and,
in each case, the provisions of Section 6 of the Warrant Agency Agreement shall continue to apply.

 

The
undersigned understands and agrees that by waiving the Beneficial Ownership Limitation, the undersigned may become subject to
the reporting requirements and liability provisions of Sections 13 and 16 of the Securities Exchange Act of 1934.

 

	 	[HOLDER]

 

	 	By:	 
	 	Name:	 
	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]