Document:

Exhibit
      4.4  

     

    NEITHER
      THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
      MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
      EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
      SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
      AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
      CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
      SECURITIES.

    

    COMMON
      STOCK PURCHASE WARRANT

    

    NUTRITION
      21, INC.

     

    
      	
              Warrant
                Shares: _______ 

            	
                                                                 
                Initial Exercise Date: March 11, 2008 

            

    

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, _____________ (the “Holder”)
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after March 11, 2008 (the
      “Initial
      Exercise Date”)
      and on
      or prior to the close of business on the fifth year anniversary of the Initial
      Exercise Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Nutrition 21, Inc., a New
      York corporation (the “Company”),
      up to
      ______ shares (the “Warrant
      Shares”)
      of
      Common Stock. The purchase price of one share of Common Stock under this Warrant
      shall be equal to the Exercise Price, as defined in Section 2(b). 

     

    Section
      1. Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Securities Purchase Agreement (the “Purchase
      Agreement”),
      dated
      as of September 10, 2007, among the Company and the purchasers signatory
      thereto.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Section
      2. Exercise.

     

    a) Exercise
      of Warrant.
      Exercise of the purchase rights represented by this Warrant may be made, in
      whole or in part, at any time or times on or after the Initial Exercise Date
      and
      on or before the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise Form annexed hereto (or such other
      office or agency of the Company as it may designate by notice in writing to
      the
      registered Holder at the address of the Holder appearing on the books of the
      Company); and, within 3 Trading Days of the date said Notice of Exercise is
      delivered to the Company, the Company shall have received payment of the
      aggregate Exercise Price of the shares thereby purchased by wire transfer or
      cashier’s check drawn on a United States bank. Notwithstanding anything herein
      to the contrary, the Holder shall not be required to physically surrender this
      Warrant to the Company until the Holder has purchased all of the Warrant Shares
      available hereunder and the Warrant has been exercised in full, in which case,
      the Holder shall surrender this Warrant to the Company for cancellation within
      3
      Trading Days of the date the final Notice
      of
      Exercise is delivered to the Company. Partial exercises of this Warrant
      resulting in purchases of a portion of the total number of Warrant Shares
      available hereunder shall have the effect of lowering the outstanding number
      of
      Warrant Shares purchasable hereunder in an amount equal to the applicable number
      of Warrant Shares purchased. The Holder and the Company shall maintain records
      showing the number of Warrant Shares purchased and the date of such purchases.
      The Company shall deliver any objection to any Notice of Exercise Form within
      1
      Business Day of receipt of such notice. In the event of any dispute or
      discrepancy, the records of the Holder shall be controlling and determinative
      in
      the absence of manifest error. The
      Holder and any assignee, by acceptance of this Warrant, acknowledge and agree
      that, by reason of the provisions of this paragraph, following the purchase
      of a
      portion of the Warrant Shares hereunder, the number of Warrant Shares available
      for purchase hereunder at any given time may be less than the amount stated
      on
      the face hereof.

     

    b) Exercise
      Price.
      The
      exercise price per share of the Common Stock under this Warrant shall be
$1.2158,
      subject
      to adjustment hereunder (the “Exercise
      Price”).

     

    c) Cashless
      Exercise.
      If at
      any time after the completion of the then-applicable holding period required
      by
      Rule 144, or any successor provision then in effect, which would allow “tacking”
of the holding period of this Warrant and the Warrant Shares pursuant to the
      SEC
      Manual of Publicly Available Telephone Interpretations or other Commission
      rule
      or guidance, there is no effective Registration Statement registering, or no
      current prospectus available for, the resale of the Warrant Shares by the Holder
      at a time when such Registration Statement is required to be effective pursuant
      to the Registration Rights Agreement, then this Warrant may also be exercised
      at
      such time by means of a “cashless exercise” in which the Holder shall be
      entitled to receive a certificate for the number of Warrant Shares equal to
      the
      quotient obtained by dividing [(A-B) (X)] by (A), where:

     

      

        
          	
                  (A)

                	
                   
                    =

                	
                  the
                    VWAP on the Trading Day immediately preceding the date of such
                    election;

                

        

      

    

    

    
      

        
          	
                  (B)

                	
                  =

                	
                  the
                    Exercise Price of this Warrant, as adjusted; and
                    

                

        

      

    

    

    
      

        
          	
                  (X)

                	
                  =

                	
                  the
                    number of Warrant Shares issuable upon exercise of this Warrant
                    in
                    accordance with the terms of this Warrant by means of a cash
                    exercise
                    rather than a cashless
                    exercise.

                

        

      

    

     

    
      
        
        

      

      
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    Notwithstanding
      anything herein to the contrary, on the Termination Date, this Warrant shall
      be
      automatically exercised via cashless exercise pursuant to this Section
      2(c).

    

    d) Holder’s
      Restrictions.
      The
      Company shall not effect any exercise of this Warrant, and a Holder shall not
      have the right to exercise any portion of this Warrant, pursuant to Section
      2 or
      otherwise, to the extent that after giving effect to such issuance after
      exercise as set forth on the applicable Notice of Exercise, the Holder (together
      with the Holder’s Affiliates, and any other person or entity acting as a group
      together with the Holder or any of the Holder’s Affiliates), would beneficially
      own in excess of the Beneficial Ownership Limitation (as defined below). 
For purposes of the foregoing sentence, the number of shares of Common Stock
      beneficially owned by the Holder and its Affiliates shall include the number
      of
      shares of Common Stock issuable upon exercise of this 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 (A) exercise of the remaining,
      nonexercised portion of this Warrant beneficially owned by the Holder or any
      of
      its Affiliates and (B) exercise or conversion of the unexercised or nonconverted
      portion of any other securities of the Company (including, without limitation,
      any other Common Stock Equivalents) subject to a limitation on conversion
      or exercise analogous to the limitation contained herein beneficially owned
      by
      the Holder or any of its affiliates.  Except as set forth in the preceding
      sentence, for purposes of this Section 2(d), beneficial ownership shall be
      calculated in accordance with Section 13(d) of the Exchange Act and the rules
      and regulations promulgated thereunder, it being acknowledged by the Holder
      that
      the Company is not representing to the Holder that such calculation is in
      compliance with Section 13(d) of the Exchange Act and the Holder is solely
      responsible for any schedules required to be filed in accordance therewith.
      To
      the extent that the limitation contained in this Section 2(d) applies, the
      determination of whether this Warrant is exercisable (in relation to other
      securities owned by the Holder together with any Affiliates) and of which
      portion of this Warrant is exercisable shall be in the sole discretion of the
      Holder, and the submission of a Notice of Exercise shall be deemed to be the
      Holder’s determination of whether this Warrant is exercisable (in relation to
      other securities owned by the Holder together with any Affiliates) and of which
      portion of this Warrant is exercisable, in each case subject to the Beneficial
      Ownership Limitation, and the Company shall have no obligation to verify or
      confirm the accuracy of such determination. 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 2(d), 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 (x) the Company’s most recent
      Form 10-Q or Form 10-K, as the case may be, (y) a more recent public
      announcement by the Company or (z) any other notice by the Company or the
      Company’s Transfer Agent setting forth the number of shares of Common Stock
      outstanding.  Upon the written or oral request of a Holder, the Company
      shall within two Trading Days confirm orally and in writing to the Holder the
      number of shares of Common Stock then outstanding.  In any case, the number
      of outstanding shares of  Common Stock shall be determined after giving
      effect to the conversion or exercise of securities of the Company, including
      this Warrant, by the Holder or its Affiliates since the date as of which such
      number of outstanding shares of Common Stock was reported. The “Beneficial
      Ownership Limitation”
shall
      be 4.99% 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. The Beneficial Ownership Limitation provisions of
      this
      Section 2(d) may be waived by the Holder, at the election of the Holder, upon
      not less than 61 days’ prior notice to the Company to change the Beneficial
      Ownership Limitation to 9.99% of the number of shares of the Common Stock
      outstanding immediately after giving effect to the issuance of shares of Common
      Stock upon exercise of this Warrant, and the provisions of this Section 2(d)
      shall continue to apply. Upon such a change by a Holder of the Beneficial
      Ownership Limitation from such 4.99% limitation to such 9.99% limitation, the
      Beneficial Ownership Limitation may not be further waived by the 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 2(d) to
      correct this paragraph (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 of this Warrant.

     

    
      
        
        

      

      
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    e) Mechanics
      of Exercise.
      

     

    i. Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be transmitted by the transfer
      agent of the Company to the Holder by crediting the account of the Holder’s
      prime broker with the Depository Trust Company through its Deposit Withdrawal
      Agent Commission (“DWAC”)
      system
      if the Company is a participant in such system and there is an effective
      Registration Statement permitting the resale of the Warrant Shares by the
      Holder, and otherwise by physical delivery to the address specified by the
      Holder in the Notice of Exercise within
      3
      Trading Days from the delivery to the Company of the Notice of Exercise Form,
      surrender of this Warrant (if required) and payment of the aggregate Exercise
      Price as set forth above (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date the Exercise Price
      is
      received by the Company. The Warrant Shares shall be deemed to have been issued,
      and Holder or any other person so designated to be named therein shall be deemed
      to have become a holder of record of such shares for all purposes, as of the
      date the Warrant has been exercised by payment to the Company of the Exercise
      Price (or by cashless exercise, if permitted) and all taxes required to be paid
      by the Holder, if any, pursuant to Section 2(e)(vi) prior to the issuance of
      such shares, have been paid. If the Company fails for any reason to deliver
      to
      the Holder certificates evidencing the Warrant Shares subject to a Notice of
      Exercise 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 Notice of Exercise), $10 per Trading Day
      (increasing to $20 per Trading Day on the fifth Trading Day after such
      liquidated damages begin to accrue) for each Trading Day commencing on the
      second Trading Day after such Warrant Share Delivery Date until such
      certificates are delivered. 

     

    
      
        
        

      

      
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    ii. Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, at the request
      of
      a Holder and upon surrender of this Warrant certificate, at the time of delivery
      of the certificate or certificates representing Warrant Shares, deliver to
      Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased
      Warrant Shares called for by this Warrant, which new Warrant shall in all other
      respects be identical with this Warrant.

     

    iii. Rescission
      Rights.
      If the
      Company fails to cause its transfer agent to transmit to the Holder a
      certificate or certificates representing the Warrant Shares pursuant to this
      Section 2(e)(i) by the Warrant Share Delivery Date, then the Holder will have
      the right to rescind such exercise.

     

    iv. Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Shares 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 (1) pay in cash to the Holder the amount 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 (A) the number of Warrant Shares that the Company was required
      to
      deliver to the Holder in connection with the exercise at issue times (B) the
      price at which the sell order giving rise to such purchase obligation was
      executed, and (2) 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 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 (1) 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 certificates representing
      shares of Common Stock upon exercise of the Warrant as required pursuant to
      the
      terms hereof.

     

    
      
        
        

      

      
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    v. No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall at
      its
      election, either pay a cash adjustment in respect of such final fraction in
      an
      amount equal to such fraction multiplied by the Exercise Price or round up
      to
      the next whole share.

     

    vi. Charges,
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares shall be made without charge to
      the
      Holder for any issue or transfer tax or other incidental expense in respect
      of
      the issuance of such certificate, all of which taxes and expenses shall be
      paid
      by the Company, and such certificates shall be issued in the name of the Holder
      or in such name or names as may be directed by the Holder; provided,
      however,
      that in
      the event certificates for Warrant Shares are to be issued in a name other
      than
      the name of the Holder, this Warrant when surrendered for exercise shall be
      accompanied by the Assignment Form attached hereto duly executed by the Holder;
      and the Company may require, as a condition thereto, the payment of a sum
      sufficient to reimburse it for any transfer tax incidental thereto.

     

    vii. Closing
      of Books.
      The
      Company will not close its stockholder books or records in any manner which
      prevents the timely exercise of this Warrant, pursuant to the terms
      hereof.

     

    Section
      3. Certain
      Adjustments.

     

    a) Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding: (A) pays a stock
      dividend or otherwise make a distribution or distributions on shares of its
      Common Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Company upon exercise of this Warrant),
      (B)
      subdivides outstanding shares of Common Stock into a larger number of shares,
      (C) combines (including by way of reverse stock split) outstanding shares of
      Common Stock into a smaller number of shares, or (D) issues by reclassification
      of shares of the Common Stock any shares of capital stock of the Company, then
      in each case the Exercise Price shall be multiplied by a fraction of which
      the
      numerator shall be the number of shares of Common Stock (excluding treasury
      shares, if any) outstanding immediately before such event and of which the
      denominator shall be the number of shares of Common Stock outstanding
      immediately after such event and the number of shares issuable upon exercise
      of
      this Warrant shall be proportionately adjusted such that the aggregate Exercise
      Price of this Warrant shall remain unchanged. Any adjustment made pursuant
      to
      this Section 3(a) shall become effective immediately after the record
date
      for
      the determination of stockholders entitled to receive such dividend or
      distribution and shall become effective immediately after the effective date
      in
      the case of a subdivision, combination or re-classification.

     

    
      
        
        

      

      
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    b) Subsequent
      Equity Sales.
      If the
      Company or any Subsidiary thereof, as applicable, at any time while this Warrant
      is outstanding, 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 Common
      Stock Equivalents entitling any Person to acquire shares of Common Stock, at
      an
      effective price per share less than the then Exercise Price (such lower price,
      the “Base
      Share Price”
and
      such issuances collectively, a “Dilutive
      Issuance”)
      (if
      the holder of the Common Stock or Common Stock Equivalents 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 which 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), then the Exercise Price shall be reduced and only reduced to equal
      the Base Share Price and the number of Warrant Shares issuable hereunder shall
      be increased such that the aggregate Exercise Price payable hereunder, after
      taking into account the decrease in the Exercise Price, shall be equal to the
      aggregate Exercise Price prior to such adjustment; provided, however, that
      prior
      to the date that Shareholder Approval is approved and deemed effective, in
      no
      event shall the Exercise Price be reduced to less than $1.09,
      subject
      to adjustment for reverse and forward stock splits, stock dividends, stock
      combinations and other similar transactions of the Common Stock that occur
      after
      the date of the Purchase Agreement. Such adjustment shall be made whenever
      such
      Common Stock or Common Stock Equivalents are issued. Notwithstanding the
      foregoing, no adjustments shall be made, paid or issued under this Section
      3(b)
      in respect of an Exempt Issuance. The Company shall notify the Holder in
      writing, no later than the Trading Day following the issuance of any Common
      Stock or Common Stock Equivalents subject to this Section 3(b), 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 3(b), upon the occurrence of any
      Dilutive Issuance, after the date of such 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 Notice of Exercise.

    

    
      
        
          
          

        

        
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      c) Subsequent
        Rights Offerings.
        If the
        Company, at any time while the Warrant is outstanding, shall issue rights,
        options or warrants to all holders of Common Stock (and not to Holders)
        entitling them to subscribe for or purchase shares of Common Stock at a price
        per share less than the VWAP at the record date mentioned below, then the
        Exercise Price shall be multiplied by a fraction, of which the denominator
        shall
        be the number of shares of the Common Stock outstanding on the date of issuance
        of such rights or warrants plus the number of additional shares of Common
        Stock
        offered for subscription or purchase, and of which the numerator shall be
        the
        number of shares of the Common Stock outstanding on the date of issuance
        of such
        rights or warrants plus the number of shares which the aggregate offering
        price
        of the total number of shares so offered (assuming receipt by the Company
        in
        full of all consideration payable upon exercise of such rights, options or
        warrants) would purchase at such VWAP. Such adjustment shall be made whenever
        such rights or warrants are issued, and shall become effective immediately
        after
        the record date for the determination of stockholders entitled to receive
        such
        rights, options or warrants. 

    

    

    d) Pro
      Rata Distributions.
      If the
      Company, at any time while this Warrant is outstanding, shall distribute to
      all
      holders of Common Stock (and not to Holders of the Warrants) evidences of its
      indebtedness or assets (including cash and cash dividends) or rights or warrants
      to subscribe for or purchase any security other than the Common Stock (which
      shall be subject to Section 3(b)), 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 the 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.

     

    
      
        
        

      

      
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      e) Fundamental
        Transaction.
        If, at
        any time while this Warrant is outstanding, (A) the Company effects any merger
        or consolidation of the Company with or into another Person, (B) the Company
        effects any sale of all or substantially all of its assets in one or a series
        of
        related transactions, (C) any tender offer or exchange offer (whether by
        the
        Company or another Person) is completed pursuant to which holders of Common
        Stock are permitted to tender or exchange their shares for other securities,
        cash or property, or (D) the Company effects any reclassification 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
        (each “Fundamental
        Transaction”),
        then,
        upon any subsequent exercise of this Warrant, the 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
        number
        of shares of Common Stock 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 merger, consolidation or disposition of assets
        by
        a holder of the number of shares of Common Stock for which this Warrant is
        exercisable immediately prior to such event. 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 it receives upon any exercise of this Warrant
        following such Fundamental Transaction. To the extent necessary to effectuate
        the foregoing provisions, any successor to the Company or surviving entity
        in
        such Fundamental Transaction shall issue to the Holder a new warrant consistent
        with the foregoing provisions and evidencing the Holder’s right to exercise such
        warrant into Alternate Consideration. The terms of any agreement pursuant
        to
        which a Fundamental Transaction is effected shall include terms requiring
        any
        such successor or surviving entity to comply with the provisions of this
        Section
        3(e) and insuring that this Warrant (or any such replacement security) will
        be
        similarly adjusted upon any subsequent transaction analogous to a Fundamental
        Transaction. Notwithstanding anything to the contrary, in the event of a
        Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3
        transaction” as defined in Rule 13e-3 under the Securities Exchange Act of 1934,
        as amended, or (3) a Fundamental Transaction involving a person or entity
        not
        traded on a national securities exchange, the Nasdaq Global Select Market,
        the
        Nasdaq Global Market, or the Nasdaq Capital Market, the Company
        or any successor entity shall pay at the Holder’s option, exercisable at any
        time concurrently with or within 30 days after the consummation of the
        Fundamental Transaction, an amount of cash equal to the value of this Warrant
        as
        determined in accordance with the Black Scholes Option Pricing Model obtained
        from the “OV” function on Bloomberg L.P. using (i) a price per share of Common
        Stock equal to the VWAP of the Common Stock for the Trading Day immediately
        preceding the date of consummation of the applicable Fundamental Transaction,
        (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for
        a
        period equal to the remaining term of this Warrant as of the date of
        consummation of the applicable Fundamental Transaction and (iii) an expected
        volatility equal to the 100 day volatility obtained from the “HVT” function on
        Bloomberg L.P. determined as of the Trading Day immediately following the
        public
        announcement of the applicable Fundamental Transaction.

    

     

    f) Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      3,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

     

    g) Voluntary
      Adjustment By Company.
      After
      the receipt of Shareholder Approval, the Company may at any time during the
      term
      of this Warrant reduce the then current Exercise Price to any amount and for
      any
      period of time deemed appropriate by the Board of Directors of the
      Company.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    h) Notice
      to Holder.
      

     

    i. Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to any provision of this
      Section 3, the Company shall promptly mail to the Holder a notice setting forth
      the Exercise Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment. If the Company enters into a Variable
      Rate
      Transaction (as defined in the Purchase Agreement), despite the prohibition
      thereon in the Purchase Agreement, the Company shall be deemed to have issued
      Common Stock or Common Stock Equivalents at the lowest possible conversion
      or
      exercise price at which such securities may be converted or exercised.

     

    ii. Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock; (B) the Company shall declare a special nonrecurring
      cash dividend on or a redemption of the Common Stock; (C) the Company shall
      authorize the granting to all holders of the Common Stock rights or warrants
      to
      subscribe for or purchase any shares of capital stock of any class or of any
      rights; (D) the approval of any stockholders of the Company shall be required
      in
      connection with any reclassification of the Common Stock, any consolidation
      or
      merger to which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share exchange
      whereby the Common Stock is converted into other securities, cash or property;
      (E) the Company shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Company; then, in each case,
      the
      Company shall cause to be mailed to the Holder at its last address as it shall
      appear upon the Warrant Register of the Company, at least 20 calendar days
      prior
      to the applicable record or effective date hereinafter specified, a notice
      stating (x) the date on which a record is to be taken for the purpose of such
      dividend, distribution, redemption, rights or warrants, or if a record is not
      to
      be taken, the date as of which the
      holders of the Common Stock of record to be entitled to such dividend,
      distributions, redemption, rights or warrants are to be determined or (y) the
      date on which such reclassification, consolidation, merger, sale, transfer
      or
      share exchange is expected to become effective or close, and the date as of
      which it is expected that holders of the Common Stock of record shall be
      entitled to exchange their shares of the Common Stock for securities, cash
      or
      other property deliverable upon such reclassification, consolidation, merger,
      sale, transfer or share exchange; provided that the failure to mail such notice
      or any defect therein or in the mailing thereof shall not affect the validity
      of
      the corporate action required to be specified in such notice. The Holder is
      entitled to exercise this Warrant during the period commencing on the date
      of
      such notice to the effective date of the event triggering such
      notice.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Section
      4. Transfer
      of Warrant.

     

    a) Transferability.
      Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase
      Agreement, this Warrant and all rights hereunder (including, without limitation,
      any registration rights) are transferable, in whole or in part, upon surrender
      of this Warrant at the principal office of the Company or its designated agent,
      together with a written assignment of this Warrant substantially in the form
      attached hereto duly executed by the Holder or its agent or attorney and funds
      sufficient to pay any transfer taxes payable upon the making of such transfer.
      Upon such surrender and, if required, such payment, the Company shall execute
      and deliver a new Warrant or Warrants in the name of the assignee or assignees
      and in the denomination or denominations specified in such instrument of
      assignment, and shall issue to the assignor a new Warrant evidencing the portion
      of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
      A
      Warrant, if properly assigned, may be exercised by a new holder for the purchase
      of Warrant Shares without having a new Warrant issued. 

     

    b) New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice. All Warrants issued on transfers or exchanges shall be dated
      the original Issue Date and shall be identical with this Warrant except as
      to
      the number of Warrant Shares issuable pursuant thereto. 

     

    c) Warrant
      Register.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

    d) Transfer
      Restrictions.
      If,
      at the
time
      of
      the surrender of this Warrant in connection with any transfer of this Warrant,
      the transfer of this Warrant shall not be registered pursuant to an effective
      registration
      statement under the Securities Act
      and
under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such transfer, that the Holder or transferee of this
      Warrant, as the case may be, comply
      with the provisions of Section 5.7 of the Purchase Agreement.

    

    Section
      5. Miscellaneous.

     

    a) No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof as set forth in Section
      2(e)(i). 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    b) Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of indemnity or security reasonably satisfactory to it
      (which, in the case of the Warrant, shall not include the posting of any bond),
      and upon surrender and cancellation of such Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate.

     

    c) Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall not be a Business Day, then such action
      may be taken or such right may be exercised on the next succeeding Business
      Day.

     

    d) Authorized
      Shares.
      

     

    The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. The Company will take all such reasonable action
      as
      may be necessary to assure that such Warrant Shares may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of the Trading Market upon which the Common Stock may be listed.
      The Company covenants that all Warrant Shares which may be issued upon the
      exercise of the purchase rights represented by this Warrant will, upon exercise
      of the purchase rights represented by this Warrant, be duly authorized, validly
      issued, fully paid and nonassessable and free from all taxes, liens and charges
      created by the Company in respect of the issue thereof (other than taxes in
      respect of any transfer occurring contemporaneously with such issue).

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary action,
      avoid or seek to avoid the observance or performance of any of the terms of
      this
      Warrant, but will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount payable
      therefor upon such exercise immediately prior to such increase in par value,
      (b)
      take all such action as may be necessary or appropriate in order that the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant, and (c) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory
      body having jurisdiction thereof as may be necessary to enable the Company
      to
      perform its obligations under this Warrant.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

     

    e) Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be determined in accordance with the provisions of the
      Purchase Agreement.

     

    f) Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.

     

    g) Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. If the Company willfully and
      knowingly fails to comply with any provision of this Warrant, which results
      in
      any material damages to the Holder, the Company shall pay to Holder such amounts
      as shall be sufficient to cover any costs and expenses including, but not
      limited to, reasonable attorneys’ fees, including those of appellate
      proceedings, incurred by Holder in collecting any amounts due pursuant hereto
      or
      in otherwise enforcing any of its rights, powers or remedies
      hereunder.

     

    h) Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

    i) Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant to purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Stock or as a stockholder of the Company, whether
      such liability is asserted by the Company or by creditors of the
      Company.

     

    j) Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive and not to assert the
      defense in any action for specific performance that a remedy at law would be
      adequate.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    k) Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by any the Holder
      or
      holder of Warrant Shares.

     

    l) Amendment.
      This
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and the Holder.

    

    m) Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant.

     

    n) Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.

     

    

    ********************

    

    
      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized as of the date first above
      indicated.

     

    
      	NUTRITION
              21, INC.
	 
	
              By:

            	
               

            
	
               

            	Name: 
	
               

            	
              Title: 

            

    

     

    
      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

     

    NOTICE
      OF EXERCISE

    

    TO:   
      NUTRITION
      21, INC.

    

    (1) The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

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

     

    o in
      lawful money of
      the United States; or

     

    o [if
      permitted] the cancellation of
      such number of Warrant Shares as is necessary, in accordance with the formula
      set forth in subsection 2(c), to exercise this Warrant with respect to the
      maximum number of Warrant Shares purchasable pursuant to the cashless exercise
      procedure set forth in subsection 2(c).

     

    (3) Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

     

    _______________________________

    

    The
      Warrant Shares shall be delivered to the following DWAC Account Number or by
      physical delivery of a certificate to:

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (4)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    

    [SIGNATURE
      OF HOLDER]

     

    Name
      of
      Investing Entity:
      ________________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      _________________________________________________

    Name
      of
      Authorized Signatory:
      ___________________________________________________________________

    Title
      of
      Authorized Signatory:
      ____________________________________________________________________

    Date:
      ________________________________________________________________________________________

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    FOR
      VALUE
      RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
      rights evidenced thereby are hereby assigned to

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    Holder’s
      Signature:    _____________________________

    

    Holder’s
      Address:     _____________________________

     

                                       _____________________________

     

    Signature
      Guaranteed: ___________________________________________

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.Exhibit
      4.5

    

      C.E.
        Unterberg, Towbin

      350
        Madison Avenue

      New
        York,
        NY 10017

    

    Dated
      as
      of August 9, 2007

    

    Mr.
      Paul
      Intlekofer

    President
      and Chief Executive Officer

    Nutrition
      21, Inc.

    4
      Manhattanville Road, Suite 202

    Purchase,
      NY 10577

    

    Dear
      Paul:

    

    This
      letter (“Letter Agreement”) represents our understanding of the basis upon which
      C.E. Unterberg, Towbin, LLC, a Delaware limited liability company (“CEUT”), is
      engaged to provide financial advisory and investment banking services to
      Nutrition 21, Inc. (the “Company”). This letter solely relates to such financial
      advisory and investment banking services and not to any potential investment
      in
      the Company by CEUT. 

    

    
      	 	
              1.

            	
              The
                Company hereby retains CEUT to act as its lead financial advisor
                with
                respect to a best efforts offering to place with investors preferred
                stock
                and warrants in a private placement (the “Securities”). The Company will
                not offer any of the Securities for sale to, or solicit any offers
                to buy
                from, any person or persons, whether directly or indirectly, otherwise
                than through CEUT, provided, however, that under no circumstances
                shall
                CEUT be liable for failure to obtain or produce the proposed financing.
                

            

    

    

    
      	 	
              2.

            	
              As
                part of our engagement, CEUT will provide the Company with the following
                services:

            

    

    

    
      	 	
              a.

            	
              Identify
                and contact potential investors;

            

    

    

    
      	 	
              b.

            	
              As
                necessary, with management of the Company, meet with potential investors
                approved by the Company and provide them with such information furnished
                by the Company as may be appropriate;

            

    

    

    
      	 	
              c.

            	
              Assist
                the Company in negotiating with identified potential investors;
                and

            

    

    
      	
            	d.	
              Assist
                the Company and the Company’s legal counsel in preparing
                documents
                related to the
                transaction and having such documents executed in order to close
                the
                transaction and any other agreements as may be
                necessary.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Mr.
      Paul
      Intlekofer 

    Page
      2

    August
      9,
      2007

    

    
      
        
          	
                	3.	
                  As
                    compensation for the services rendered by CEUT hereunder, subject
                    to the
                    provisions of Appendix A, the Company agrees to pay CEUT at closing
                    for
                    the sale of Securities (i) a cash fee equal to the sum of (a)
                    5.5% of the
                    gross proceeds raised from investors up to and including $13
                    million
                    and
                    (b) 4.0% of the gross proceeds raised from investors above $13
                    million and
                    (ii) common stock warrants (the “Warrants”) equal in number to 0.5% of the
                    number of shares of common stock that the Securities sold at
                    the closing
                    convert into and with an exercise price equal to $1.2158. The
                    Warrants
                    shall have a term of five years, will have an exercise price
                    equal to the
                    selling price of the Securities to investors hereunder, will
                    not be
                    exercisable for the first six months of the term, shall have
                    a net
                    exercise feature and shall otherwise contain terms and conditions
                    customary for instruments of this nature. The Company also agrees
                    to
                    reimburse CEUT for its counsel and out-of-pocket expenses for
                    any
                    transaction related to this Agreement, including, without limitation,
                    any
                    transactions pursuant to paragraphs 1 hereof. CEUT’s out-of-pocket
                    expenses, excluding those related to legal counsel, will be limited
                    to an
                    aggregate of $15,000 without approval from the Company, which
                    shall not be
                    unreasonably withheld.

                

        

      

    

    

    
      	 	
              4.

            	
              CEUT
                and the Company have entered into a separate letter agreement, dated
                the
                date hereof, providing for the indemnification of CEUT by the Company
                in
                connection with CEUT’s engagement hereunder, the terms of which are
                incorporated into this agreement in their entirety.
                

            

    

    

    
      	 	
              5.

            	
              The
                Company recognizes and confirms that CEUT in acting pursuant to this
                engagement will be using publicly available information and information
                in
                reports and other materials provided by others, including, without
                limitation, information provided by or on behalf of the Company and
                that
                CEUT does not assume responsibility for and may rely, without independent
                verification, on the accuracy and completeness of any such information.
                The Company agrees to furnish or cause to be furnished to CEUT all
                necessary or appropriate information for use in its engagement and
                hereby
                warrants that any information relating to the Company that is furnished
                to
                CEUT by or on behalf of the Company, will be true and correct in
                all
                material respects and not misleading.

            

    

    

    
      	 	
              6.

            	
              The
                term of this engagement shall extend until the earlier of (i) closing
                of
                the placement transaction and (ii) six (6) months from the date of
                this
                agreement, and shall automatically renew thereafter on a month-to-month
                basis until terminated in writing by either party. Any such termination
                shall not (except as provided herein) affect the compensation or
                indemnification provisions set forth herein, all of which shall remain
                in
                full force and effect. In addition, the Company shall be responsible
                for
                any fees as outlined above for any offering undertaken by the Company
                in
                lieu of the contemplated transaction described herein with any investors
                contacted by CEUT that is concluded within nine (9) months of the
                date of
                termination of this agreement, with the exception of an offering
                associated with the spin-off of the Company’s pharmaceutical development
                business. 

            

    

    

    
      	 	
              7.

            	
              Notwithstanding
                its engagement as placement agent hereunder, CEUT may not, without
                its
                prior written consent, be quoted or referred to in any document,
                release
                or communication prepared, issued or transmitted by the Company (including
                any entity controlled by, or under common control with, the Company
                and
                any director, officer, employee or agent
                thereof).

            

    

    

    
      	 	
              8.

            	
              Following
                completion of this engagement, CEUT shall have the right to place
                advertisements in financial and other newspapers and journals at
                its own
                expense describing its services to the Company
                hereunder; subject to prior written approval of the Company, which
                will
                not be unreasonably
                withheld.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Mr.
        Paul
        Intlekofer 

      Page
        3

      August
        9,
        2007

       

    

    
      	 	
              9.

            	
              This
                Agreement is governed by the laws of the State of New York, without
                regard
                to such state’s rules concerning conflicts of law, and will be binding
                upon and inure to the benefit of the Company and CEUT and their respective
                successors and assigns. The Company and CEUT agree to waive trial
                by jury
                in any action, proceeding or counterclaim brought by or on behalf
                of
                either party with respect to any matter whatsoever relating to or
                arising
                out of any actual or proposed transaction or the engagement of or
                performance by CEUT hereunder. The Company also hereby submits to
                the
                jurisdiction of the state and federal courts located in New York
                County,
                New York in any proceeding arising out of or relating to this Agreement,
                agrees not to commence any suit, action or proceeding relating thereto
                except in such courts, and waives, to the fullest extent permitted
                by law,
                the right to move to dismiss or transfer any action brought in such
                court
                on the basis of any objection to personal jurisdiction, venue or
                inconvenient forum. This agreement may be executed in two or more
                counterparts, each of which shall be deemed to be an original, but
                all of
                which shall constitute one and the same
                agreement.

            

    

    

    CEUT
      will
      act under this Agreement as an independent contractor with duties solely to
      the
      Company.

    

    The
      Company acknowledges that CEUT and its affiliates may have and may in the future
      have investment banking and other relationships with parties other than the
      Company, which parties may have interests with respect to this placement.
      Although CEUT in the course of such other relationships may acquire information
      about the placement, potential purchasers of the Securities or such other
      parties, CEUT shall have no obligation to disclose such information to the
      Company or to use such information on behalf of the Company. Furthermore, the
      Company acknowledges that CEUT may have fiduciary or other relationships whereby
      CEUT may exercise voting power over securities of various persons, which
      securities may from time to time include securities of the Company or of
      potential purchasers of the Securities or others with interests in respect
      of
      the placement. The Company acknowledges that CEUT may exercise such powers
      and
      otherwise perform its functions in connection with such fiduciary or other
      relationships without regard to its relationship to the Company
      hereunder.

    

    Please
      note that CEUT is a full service securities firm engaged in securities trading
      and brokerage activities, as well as providing investment banking, financing
      and
      financial advisory services. In the ordinary course of our trading, brokerage
      and financing activities, CEUT or its affiliates may at any time hold long
      or
      short positions, and may trade or otherwise effect transactions, for our own
      account or the accounts of customers, in debt or equity securities or senior
      loans of the Company.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Mr.
        Paul
        Intlekofer 

      Page
        4

      August
        9,
        2007

       

    

    If
      the
      foregoing correctly sets forth the understanding and agreement between CEUT
      and
      the Company, please so indicate in the space provided for that purpose below,
      together with the enclosed duplicate original, and return one (1) of these
      originals to us, whereupon this letter shall constitute a binding agreement
      as
      of the date hereof.

    

    
      	
              Sincerely,

            
	 	 
	
              C.E.
                Unterberg, Towbin, LLC

            
	 	 
	
              By:

            	 
	
               

            	
              Michael
                E. Marrus

            
	
               

            	
              Managing
                Director

            

    

    

    Approved
      and agreed to
      as of
      August 9, 2007:

    

    
      	
              Nutrition
                21, Inc.

            
	 
	
              By:

            	 
	 	
              Paul
                Intlekofer

            
	 	
              President
                & Chief Executive Officer

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Appendix
      A

    

    The
      fee
      payable pursuant to Paragraph 3 of the Letter Agreement between CEUT and the
      Company shall be allocated as follows:

    

    
      	 	
              A.

            	
              70.0%
                of the cash compensation and 50.0% of the warrant compensation per
                paragraph 3 of the Letter Agreement to CEUT;
                and,

            

    

    
      	 	
              B.

            	
              30.0%
                of the cash compensation and 50.0% of the warrant compensation per
                paragraph 3 of the Letter Agreement to Life Science Group, Inc.
                

            

    

    

    CEUT
      represents that the fee allocation outlined above was agreed upon by CEUT and
      Life Science Group, Inc. The Company and CEUT understand and acknowledge that
      the Life Science Group Inc. will be performing certain financial advisory
      services for the Company. In addition, the Company agrees that the provisions
      of
      the Indemnification Agreement between CEUT and the Company, the provisions
      relating the “tail” in paragraph 6 and the reimbursement of out-of-pockets
      expenses shall extend to Life Science Group, Inc.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    August
      9,
      2007

    C.E.
      Unterberg, Towbin, LLC

    350
      Madison Avenue

    New
      York,
      New York 10017

    

    Ladies
      and Gentlemen:

    

    In
      connection
      with the engagement of C.E. Unterberg, Towbin, LLC, a Delaware limited liability
      company (“CEUT”),
      to
      advise and assist
      Nutrition 21, Inc. (the “Company”) with the subject matter
      in the
      letter agreement dated
      the
      date hereof between CEUT and the Company, the Company agrees that it will
      indemnify and hold harmless CEUT and its affiliates and their respective
      directors, officers, agents and employees and each other person controlling
      CEUT
      or any of CEUT’s affiliates (collectively, the “Indemnified Parties”), to the
      full extent lawful, from and against any losses, expenses, claims or proceedings
      (collectively, “losses”) (i)which may arise out of or are based upon any untrue
      statement or alleged untrue statement of a material fact contained in the
      registration statement for the registration of the securities being offered
      pursuant to the letter agreement as originally filed or in any amendment
      thereof, or in any preliminary prospectus, the final prospectus or any issuer
      free writing prospectus or in any amendment thereof or supplement thereto,
      or
      arise out of or are based upon the omission or alleged omission to state therein
      a material fact required to be stated therein or necessary to make the
      statements therein not misleading, (ii) related to or arising out of (A) oral
      or
      written information provided by the Company, its employees or other agents,
      which information either the Company or CEUT provide to any actual or potential
      buyers, sellers, investors or offerees, or (B) any other action or failure
      to
      act by the Company, its directors, officers, agents or employees or by CEUT
      or
      any Indemnified Party at the Company’s request or with the Company’s consent, or
      (iii) otherwise related to or arising out of the engagement or any transaction
      or conduct in connection therewith and resulting primarily from the Company’s
      negligence, bad faith or willful misconduct, except that these clauses (i)
      and
      (ii) shall not apply with respect to (x) any losses that are finally judicially
      determined to have resulted primarily from the gross negligence or willful
      misconduct of such Indemnified Party, or (y) any amount paid in settlement
      of
      claims without the Company’s consent, which consent will not be unreasonably
      withheld.

    

    In
      the
      event that the foregoing indemnity is unavailable to any Indemnified Party
      for
      any reason
      (other
      than as a consequence of a final judicial determination of willful misconduct,
      bad faith or gross negligence of such Indemnified Party),
      then
      the Company agrees to contribute to any losses related to or arising out of
      the
      engagement or any transaction or conduct in connection therewith as follows.
      With respect to such losses referred to in clause (i) of the preceding
      paragraph, each of the Company and CEUT shall contribute in such proportion
      as
      is appropriate to reflect the relative benefits received (or anticipated to
      be
      received) by CEUT, on the one hand, and by the Company and its security holders,
      on the other hand,
      from the
      actual or proposed transaction arising in connection with the engagement. With
      respect to any other losses, and for losses referred to in clause (i) of the
      preceding paragraph if the allocation provided by the immediately preceding
      sentence is unavailable for any reason, each of the Company and CEUT shall
      contribute in such proportion as is appropriate to reflect not only the relative
      benefits as set forth above, but also the relative fault of each of the Company
      and CEUT in connection with the statements, omissions or other relevant
      equitable considerations. Benefits received (or anticipated to be received)
      by
      the Company and its security holders shall be deemed to be equal to the
      aggregate cash consideration and value of securities or any other property
      payable, issuable, exchangeable or transferable in such transaction or proposed
      transaction, and benefits received by CEUT shall be deemed to be equal to the
      compensation paid by the Company to CEUT (whether in cash or otherwise) in
      connection with the engagement (exclusive of amounts paid for reimbursement
      of
      expenses or paid under this agreement). Relative fault shall be determined
      by
      reference to, among other things, whether any alleged untrue statement
      or omission or any other alleged conduct relates to information provided by
      the
      Company or other conduct by the Company (or its employees or other agents),
      on
      the one hand, or by CEUT, on the other hand. CEUT and the Company agree that
      it
      would not be just and equitable if contribution were determined by pro rata
      allocation or by any other method of allocation that does not take account
      of
      the equitable considerations referred to above. Notwithstanding anything to
      the
      contrary above, in no event shall CEUT be responsible for any amounts in excess
      of the amount of the compensation actually paid by the Company to CEUT (in
      cash
      or otherwise) in connection with the engagement (exclusive of amounts paid
      for
      reimbursement of expenses or paid under this agreement).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Promptly
      after CEUT receives notice of the commencement of any action or other proceeding
      in respect of which
      indemnification or reimbursement may be sought hereunder, CEUT will notify
      the
      Company thereof; but the omission so to notify the Company shall not relieve
      the
      Company from any obligation hereunder unless, and only to the extent that,
      such
      omission results in its forfeiture of substantive rights or defenses. If any
      such action or other proceeding shall be brought against any Indemnified Party,
      the Company shall, upon written notice given reasonably promptly following
      CEUT’s notice to the Company of such action or proceeding, be entitled to assume
      the defense thereof at its expense with counsel chosen by the Company and
      reasonably satisfactory to the Indemnified Parties; provided, however, that
      any
      Indemnified Party may at its own expense retain separate counsel to participate
      in such defense. Notwithstanding the foregoing, such Indemnified Party shall
      have the right to employ separate counsel at the Company’s expense and to
      control its own defense of such action or proceeding if, in the reasonable
      opinion of counsel to such Indemnified Party, (i) there are legal defenses
      available to such Indemnified Party or to other indemnified parties that are
      different from or additional to those available to the Company, or (ii) a
      conflict or likely conflict exists between the Company and such Indemnified
      Party that would make such separate representation advisable; provided, however,
      that in no event shall the Company be required to pay fees and expenses under
      this indemnity for more than one counsel in any one legal action or group of
      related legal actions. The Company agrees that it will not, without the prior
      written consent of CEUT, which consent shall not be unreasonably withheld or
      delayed, settle or compromise or consent to the entry of any judgment in any
      pending or threatened claim, action or proceeding relating to the matters that
      are the subject of CEUT’s engagement (whether or not any Indemnified Party is a
      party thereto) unless such settlement, compromise or consent includes an
      unconditional release of CEUT and each other Indemnified Party from all
      liability arising or that may arise out of such claim, action or
      proceeding.

    

    The
      Company further agrees that no Indemnified Party shall have any liability
      (whether direct or indirect, in
      contract or tort or otherwise) to the Company or any of its affiliates,
      creditors or security holders for or in connection with the engagement or any
      actual or proposed transactions or other conduct in connection therewith except
      for losses incurred by the Company that are finally judicially determined to
      have resulted primarily from the gross negligence or willful misconduct of
      such
      Indemnified Party or have resulted from a breach of the engagement between
      the
      Company and CEUT.

    

    The
      foregoing agreement is in addition to any rights CEUT may have at common law
      or
      otherwise and shall be binding on and inure to the benefit of any successors,
      assigns, and personal representatives of the Company and each Indemnified Party.
      This agreement is governed by the laws of the State of New York, without regard
      to such state’s rules concerning conflicts of laws. Each of the parties hereto
      also hereby submits to the jurisdiction of the state and federal courts located
      in New York County, New York in any proceeding arising out of or relating to
      this agreement, agrees not to commence any suit, action or proceeding relating
      hereto except in such courts, and waives, to the fullest extent permitted by
      law, the right to move to dismiss or transfer any action brought in such court
      on the basis of any objection to personal jurisdiction, venue or inconvenient
      forum. Solely for purposes of enforcing this agreement, each party hereby
      consents to personal jurisdiction, service of process and venue in any court
      in
      which any claim or proceeding that is subject to this agreement is brought
      against the other party. Any right to trial by
      jury
      with respect to any claim or proceeding related to or arising out of the
      engagement, or any transaction or conduct in connection therewith or this
      agreement is waived. This agreement shall remain in full force and effect
      notwithstanding the completion or termination of the
      engagement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Very
                truly yours,

            
	 	 
	
              Nutrition
                21, Inc.

            
	 	 
	
              By:

            	 
	 	
              Paul
                Intlekofer

            
	 	
              President
                & Chief Executive Officer

            

    

     

    
      	
              Agreed:

            
	 	 
	
              C.E.
                Unterberg, Towbin, LLC

            
	 	 
	
              By:

            	
               

            
	 	
              Michael
                E. Marrus

            
	 	
              Managing
                Director

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