Document:

Exhibit 10.22

 

PUT AND CALL OPTION AGREEMENT

 

THIS PUT AND CALL OPTION
AGREEMENT dated as of November 30, 2010 (as modified, amended or restated from time-to-time, the “Agreement”)
is by and between KOLU POHAKU MANAGEMENT, LLC, a Delaware limited liability company, with its principal place of business and mailing
address at 236 Third Street, Baton Rouge, Louisiana 70801 (together with its successors and assigns, “KPM”),
KOLU POHAKU TECHNOLOGIES, LLC, a Delaware limited liability company, with its principal place of business and mailing address at
73-4460 Queen Kaahumanu Highway, #121, Kailua-Kona, Hawaii, 96740 (together with its successors and assigns, “KPT”);
and RITTER PHARMACEUTICALS, INC., a Delaware corporation, with its principal place of business and mailing address at 1880 Century
Park East, No. 1100, Los Angeles, California 90067 (together with its successors and assigns, “Ritter”). KPM,
KPT, and Ritter are referred to collectively as the “Parties” and individually as a “Party”
to this Agreement. In consideration of their mutual promises and with the intention to be legally bound, the Parties hereby agree
as follows:

 

1.            Put
and Call Options.

 

1.1           Put
Option. At any time after December 31, 2014 (the “Exercise Date”), Ritter shall have the option (the “Put
Option”) to issue to KPM a number of shares of Ritter’s Series B Preferred Stock equal to the quotient obtained
by dividing (X) by (Y) (the “Put / Call Shares”), where (X) is the amount of R&D Disbursements (as such
term is defined in that certain Research and Development Agreement and License, dated as of November 30, 2010 (the “Research
Agreement”), by and between KPT and Ritter), and (Y) is equal to the “Series B Original Issue Price”
(as defined in Ritter’s Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on November
15, 2010 (as the same may be amended, restated, or otherwise modified from time-to-time, the “COI”)) of one
share of Ritter’s Series B Preferred Stock.

 

1.2           Call
Option. At any time after the Exercise Date, KPM shall have the option (the “Call Option” and collectively
with the Put Option, the “Options”) to require Ritter to issue to KPM the Put / Call Shares.

 

1.3           Automatic
Exercise. Notwithstanding the foregoing, and irrespective of whether or not the Exercise Date has passed, the Options shall
be deemed mutually and automatically exercised by the Parties (any such exercise, an “Automatic Exercise”) concurrently
with any of the following events: (i) immediately prior to Ritter’s Qualified Public Offering (as defined in the COI), (ii)
immediately prior to any liquidation, dissolution or winding up of Ritter, either voluntary or involuntary, including, but not
limited to, a Deemed Liquidation Event (as defined in the COI), (iii) immediately prior to the license of Ritter’s RP-G28
technology, regardless of whether such license constitutes a Deemed Liquidation Event, or (iv) immediately prior to any redemption
or conversion of Ritter’s Series B Preferred Stock.

 

1.4           Material
Breach of the Research Agreement. In the event of a Material Breach (as defined below) of the Research Agreement by Ritter,
the sole and exclusive remedy of KPM and KPT thereunder shall be either (i) exercise of the Call Option, irrespective of whether
or not the Exercise Date has passed, with respect to any R&D Disbursements or (ii)

 

    	 

    	 

    

 

institute an action for money
damages in an amount not to exceed the R&D Disbursements. It is the intention of the Parties hereto that the License granted
to Ritter under the Research Agreement shall be perpetual and irrevocable until such time as it is assigned to Ritter pursuant
to Section 4.17 below. For purposes of this Agreement, a “Material Breach” shall mean a material breach of the
Agreement that goes uncured more than fifteen (15) days after notice of such breach is provided to the breaching party.

 

2.            KPT
agrees that the issuance to KPM of the Put / Call Shares shall be in full satisfaction of Ritter’s obligation to make Royalty
Payments and other liabilities to KPT under the Research Agreement. The Put / Call Shares, when issued, will be duly authorized,
validly issued, fully paid and nonassessable. As promptly as reasonably practicable on or after the date that the Put Option or
Call Option, as the case may be, is exercised, or upon the occurrence of any Automatic Exercise or an election made under Section
1.4(i), and in any event within ten (10) days thereafter, Ritter shall issue and deliver to KPM a stock certificate for the Put
/ Call Shares and KPM agrees, as a condition of such issuance, to become a party to the Company’s Amended and Restated Investors’
Rights Agreement, dated as of November 17, 2010, as amended from time to time. Ritter agrees during the term the Options are exercisable
to take all reasonable action to reserve and keep available from its authorized and unissued shares of Series B Preferred Stock
for the purpose of effecting the exercise of the Options such number of shares (and shares of common stock for issuance on conversion
of such shares) as shall from time to time be sufficient to effect the exercise of the Options.

 

3.            Adjustments.
The number and kind of shares issuable upon exercise of the Options are subject to adjustment from time to time, as follows:

 

3.1           Reclassification
of Shares. If the securities issuable upon exercise of the Options are changed into the same or a different number of securities
of any other class or classes by reclassification, capital reorganization, conversion of all outstanding shares of the relevant
class or series or otherwise (other than as otherwise provided for herein) (a “Reclassification”), then, in
any such event, the Options shall be exercisable for a number of shares of such other class or classes of stock that a holder of
the number of securities deliverable upon exercise of the Options immediately before that change would have been entitled to receive
in such Reclassification, all subject to further adjustment as provided herein with respect to such other shares.

 

3.2           Subdivisions
and Combinations. In the event that the outstanding shares of Series B Preferred Stock are subdivided (by stock split, by payment
of a stock dividend or otherwise) into a greater number of shares of such securities, the number of shares issuable upon exercise
of the Options immediately prior to such subdivision shall, concurrently with the effectiveness of such subdivision, be proportionately
increased, and in the event that the outstanding shares of Series B Preferred Stock are combined (by reclassification or otherwise)
into a lesser number of shares of such securities, the number of shares issuable upon exercise of the Options immediately prior
to such combination shall, concurrently with the effectiveness of such combination, be proportionately decreased.

 

3.3           Redemption.
In the event that all of the outstanding shares of the securities issuable upon exercise of the Options are redeemed in accordance
with the COI, the

 

    	- 2 -

    	 

    

 

Options shall thereafter
be exercisable for a number of shares of Ritter common stock equal to the number of shares of common stock that would have been
received if the Options had been exercised in full immediately prior to such redemption and the preferred stock received thereupon
had been simultaneously converted into common stock.

 

3.4           Notice
of Adjustments. Upon any adjustment in accordance with this Section 3, Ritter shall give notice thereof to KPM, which notice
shall state the event giving rise to the adjustment and the number of securities or other property issuable upon the exercise of
the Options, setting forth in reasonable detail the method of calculation. Ritter shall, upon the written request of KPM, furnish
or cause to be furnished to KPM a certificate setting forth such adjustments and the number of securities and the amount, if any,
of other property that at the time would be received upon exercise of the Options.

 

4.            Miscellaneous.

 

4.1           Notices.
Notices required under this Agreement shall be in writing and shall be sent to by overnight courier, hand delivery, mail, telecopier
or other reliable electronic means to the intended recipient of such notice at the address previously provided by such person.
Any such notice so sent shall be deemed to have been given (i) upon delivery if given by overnight couriers or hand delivery, (ii)
three business days after depositing the notice in the U.S. mails, or (iii) upon confirmation if given by telecopier or other reliable
electronic means.

 

4.2           Application
of Hawaii Law; Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of Hawaii. Any
dispute between the parties arising out of or in connection with this Agreement will be resolved exclusively by the State and Federal
courts located in the State of Hawaii and having appropriate jurisdiction over the Parties.

 

4.3           Litigation
Expenses. If a Party resorts to litigation to remedy a breach of this Agreement by the other Party, then the prevailing Party
in the litigation, in addition to any other remedies available to said Party under this Agreement or by law, may collect its attorneys’
fees and other costs and expenses of such litigation.

 

4.4           Amendments.
This Agreement may not be amended except by the written agreement of all Parties.

 

4.5           Headings.
The headings in this Agreement are inserted for convenience only and are in no way intended to describe, interpret, define, or
limit the scope, extent, or intent of this Agreement or any provision hereof.

 

4.6           Severability.
If any provision of this Agreement or the application thereof to any Party or circumstance shall be invalid, illegal, or unenforceable
to any extent, the remainder of this Agreement and the application thereof shall not be affected and shall be enforceable to the
fullest extent permitted by law.

 

4.7           Counterparts.
This Agreement may be executed in one or more counterparts each of which shall for all purposes be deemed an original and all of
such counterparts, taken together, shall constitute one and the same Agreement.

 

    	- 3 -

    	 

    

 

4.8           Gender.
Words used herein, regardless of the number or gender specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

 

4.9           Successors,
and Assigns. Each and all of the covenants, terms, provisions, and agreements herein contained shall be binding upon and inure
to the benefit of the parties hereto and, to the extent permitted by this Agreement and by applicable law, their respective successors
and assigns.

 

4.10         Creditors
and Other Third Parties. None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditors
of a Party or by other third parties.

 

4.11         Contract
Terms to be Exclusive. This written Agreement, along with the Research and Development Agreement and License, dated as of the
date hereof, to which each of the Parties hereto is a party and which this Agreement is intended to supplement, contain the sole
and entire agreement between the Parties with respect to its subject matter, and supersede any and all other agreements between
them with respect to its subject matter.

 

4.12         No
Party Deemed Drafter. The Parties agree that no Party shall be deemed to be the drafter of this Agreement and further that
in the event that this Agreement is ever construed by a court of law, such court shall not construe this Agreement or any provision
of this Agreement against any Party as the drafter of the Agreement.

 

4.13         Assignment.
No assignment of this Agreement or the rights and obligations hereunder shall be valid without the specific written consent of
both Parties hereto.

 

4.14         Remedies
in Equity. The rights and remedies of any Party hereunder shall not be mutually exclusive, and the exercise of one or more
of the provisions hereof shall not preclude the exercise of any other provisions hereof. Each Party confirms that damages at law
may be an inadequate remedy for a breach or threatened breach of this Agreement and agrees that, in the event of a breach or threatened
breach of any provision hereof, the respective rights and obligations hereunder shall be enforceable by specific performance, injunction
or equitable remedy, but nothing herein contained is intended to, nor shall it, limit or affect any rights at law or by statute
or otherwise of any Party aggrieved as against the other for a breach or threatened breach of any provisions hereof, it being the
intention by this Section to make clear the agreement of the parties that the respective rights and obligations of the parties
hereunder shall be enforceable in equity as well as at law or otherwise.

 

4.15         Authority
to Enter into Agreement. By execution of this Agreement below, each Party represents and covenants that it has all necessary
legal right, power, and authority to enter into and perform this Agreement. The execution and delivery by each Party of this Agreement
and the performance by the Party of its obligations hereunder have been duly authorized and approved by all requisite corporate
action or otherwise. This Agreement has been executed and delivered by a duly authorized officer or representative of the Party,
and constitutes a valid and legally binding obligation of the Party, enforceable against the Party in accordance with its terms
(except to the extent that enforcement may be affected by laws relating to

 

    	- 4 -

    	 

    

 

bankruptcy, reorganization,
insolvency and creditors’ rights and by the availability of injunctive relief, specific performance, and other equitable
remedies). Neither the execution and delivery of this Agreement by the Party, nor the consummation by the Party of the transaction
contemplated hereby, will conflict with or result in a breach of any of the terms, conditions or provisions of the Party’s
governing documents or of any statute or administrative regulation, or of any order, writ, injunction, judgment, or decree of any
court or governmental authority or of any arbitration award to which the Party is a party or by which the Party is bound.

 

4.16         Board
Seat. The Parties hereto acknowledge and agree that KPM shall have the right to designate a member of Ritter’s Board
of Directors upon R&D Disbursements to Ritter equaling at least $750,000. At such time as R&D Disbursements equal at least
$750,000, Ritter covenants to take such steps as may be necessary in order to provide for KPM’s board rights hereunder in
Ritter’s governing instruments. Notwithstanding the foregoing, if KPT has the right to designate a member of Ritter’s
Board of Directors at the time KPT and/or KPM elects the remedy set forth in Section 1.4(ii) hereof, such right shall immediately
terminate and KPM shall, in its place, be granted the right to appoint one (1) board observer subject to the terms of a standard
board observer confidentiality agreement.

 

4.17         Transfer
of Rights Upon Certain Events. Upon either (a) exercise of either the Put Option or Call Option, (b) the occurrence of any
Automatic Exercise, (c) exercise by KPM and/or KPT of one of the remedies set forth in Section 1.4 hereof, or (d) any failure by
KPT to disburse the 2011 R&D Fee Installment as requested by Ritter, whether or not such failure constitutes a breach of the
Research Agreement by any Party thereto, but only after the Parties have a made a good faith effort to resolve any dispute concerning
such disbursement request, the Parties hereto agree that the Research Agreement shall terminate (if it has not already done so),
all of KPT’s right, title and interest in the research conducted hereunder shall immediately become the property of Ritter,
and KPT and KPM hereby assign, and shall take all steps as may reasonably be required in order to perfect the assignment of such
right, title and interest to Ritter including, without limitation, the execution of a standard form of assignment and any applicable
state or federal filings that may be required of the Parties in connection with their performance under this section.

 

4.18         Survival.
The Parties’ obligations under Sections 1.4, 2 and 4 shall survive termination of this Agreement for any reason.

 

[Signature page to follow]

 

    	- 5 -

    	 

    

 

[Put and Call Option Agreement Signature Page]

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed in duplicate by their duly authorized representatives.

 

	 	KOLU POHAKU MANAGEMENT, LLC
	 	 
	 	By	/s/ Thomas Adamek
	 	Its	President
	 	 
	 	KOLU POHAKU TECHNOLOGIES, LLC
	 	 
	 	By	/s/ Thomas Adamek
	 	Its	President
	 	 
	 	RITTER PHARMACEUTICALS, INC.
	 	 
	 	By:	/s/ Andrew Ritter
	 	Its

 

    	- 6 -Exhibit 10.23

 

THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  IT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT
SUCH REGISTRATION IS NOT REQUIRED.

 

THE SALE OF THE SECURITIES
THAT IS THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA,
AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION
IS UNLAWFUL UNLESS THE SALE OF THE SECURITIES IS EXEMPT FROM QUALIFICATION BY 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS
CODE.  THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED UNLESS
THE SALE IS SO EXEMPT.

 

RITTER PHARMACEUTICALS,
INC.

SUBORDINATED CONVERTIBLE
PROMISSORY NOTE

 

	$25,000.00	 	May 23, 2014
	 	 	Los Angeles, California

 

FOR VALUE RECEIVED, RITTER
PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), promises to pay to SJ Investment Company,
LLC (“Holder”), or its registered assigns, in lawful money of the United States of America the principal sum
of Twenty Five Thousand Dollars and No Cents ($25,000.00), or so much thereof as may be advanced under this Subordinated Convertible
Promissory Note (this “Note”), together with simple interest thereon at the annual rate of eight percent
(8.00%) per annum (the “Interest Rate”), computed on the basis of the actual number of days elapsed and
a year of 365 days.

 

This Note is one of the
subordinated convertible promissory notes (all such notes, including this Note, collectively, the “Notes”) issued
pursuant to the Company’s 2014(A) Note Purchase Agreement (as amended, modified or supplemented, the “Note Purchase
Agreement”), between the Company, Holder and the other Persons party thereto (collectively, including Holder, the “Holders”).  The
terms and provisions of the Note Purchase Agreement are incorporated herein by this reference.  This Note is a single
advance note.

 

The following is a statement
of the rights of Holder and the conditions to which this Note is subject, and to which Holder, by the acceptance of this Note,
agrees:

 

1.          Definitions.  Capitalized
terms not otherwise defined herein shall have the following meanings:

 

(a)         “Affiliate”
shall mean any Person under the control of, controlled by or under common control with another Person.

 

(b)        “Common
Stock” shall mean shares of the Company’s Common Stock, par value $0.001 per share.

 

(c)        “Company”
includes the entity initially executing this Note and any Person which shall succeed to or assume the obligations of the Company
under this Note.

 

    	 

    	 

    

 

(d)        “Business
Day” shall means any day that is not a Saturday, Sunday, or other day on which banks in the State of California are authorized
or required to close.

 

(e)        “Charter”
shall mean the Company’s Amended and Restated Certificate of Incorporation, as in effect on the date hereof and as amended
from time to time.

 

(f)         “Conversion
Event” shall mean any of conversion of this Note pursuant to Section 6 below.

 

(g)        “Derivative
Securities” means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly
or indirectly), Common Stock, including options, warrants and preferred stock.

 

(h)        “Event
of Default” shall have the meaning set forth in Section 4 below.

 

(i)         “Fully
Diluted Outstanding Capital” shall mean the total number of shares of Common Stock outstanding assuming the conversion,
exchange and/or exercise of all outstanding Derivative Securities other than the Notes.

 

(j)         “Lien”
shall mean, with respect to any property, any security interest, mortgage, pledge, lien, claim, charge or other encumbrance in,
of, or on such property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional
sale agreement, capital lease or other title retention agreement, or any agreement to provide any of the foregoing, and the filing
of any financing statement or similar instrument under the Uniform Commercial Code or comparable law of any jurisdiction.

 

(k)        “Majority
in Interest” shall mean Holders holding more than fifty percent (50%) of the aggregate outstanding principal amount of
the Notes issued pursuant to the Note Purchase Agreement.

 

(l)         “Material
Adverse Effect” shall mean a material adverse effect on (a) the Company’s financial condition or business as now
conducted or proposed to be conducted; (b) the ability of the Company to pay or perform the Obligations in accordance with the
terms of this Note and the Note Purchase Agreement and to avoid an Event of Default, or an event which, with the giving of notice
or the passage of time or both, would constitute an Event of Default; or (c) the rights and remedies of Holder under this Note
and the Note Purchase Agreement.

 

(m)        “Maturity
Date” shall mean twelve (12) months from date this Note is issued.

 

(n)        “Obligations”
shall mean and include all loans, advances, debts, liabilities and obligations, howsoever arising, owed by the Company to Holder
of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money),
now existing or hereafter arising under or pursuant to the terms of this Note and the Note Purchase Agreement, including, all interest,
fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by the
Company hereunder and thereunder, in each case, whether direct or indirect, absolute or contingent, due or to become due, and whether
or not arising after the commencement of a proceeding under Title 11 of the United

 

    	- 2 -

    	 

    

 

States Code (11 U. S. C.
Section 101 et seq.), as amended from time to time (including post-petition interest) and whether or not allowed or allowable as
a claim in any such proceeding.

 

(o)        “Person”
shall mean and include an individual, a partnership, a corporation (including a business trust), a joint stock company, a limited
liability company, an unincorporated association, a joint venture or other entity or a governmental authority.

 

(p)        “Preferred
Director” means any member of the Board of Directors subject to election exclusively by the holders of one or more series
of the Company’s Preferred Stock in accordance with the Company’s certificate of incorporation, as in effect from time
to time.

 

(q)        “Qualified
Equity Financing” shall mean an equity financing pursuant to which the Company sells, with the principal purpose of raising
capital, a new class of preferred stock (the “Preferred Securities”) with an aggregate sales price of not less than
$3,000,000, including the principal and accrued but unpaid interest of any Notes which are converted into such Preferred Securities.

 

(r)         “Sale
Event” shall mean (i) any “person” or “group” (within the meaning of Section 13(d) and 14(d)
of the Securities Exchange Act of 1934, as amended), becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Securities Exchange Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding voting securities
of the Company having the right to vote for the election of members of the Board of Directors, (ii) any reorganization, merger
or consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting
securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately
after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding
voting securities of the Company or such other surviving or resulting entity or (iii) a sale, lease or other disposition of all
or substantially all of the assets of the Company.  Notwithstanding the forgoing, a Sale Event shall not be deemed to
have occurred upon a transfer of the Company’s capital stock, without consideration, between a stockholder of Company and
an affiliate, member or limited partner of such stockholder, a sale of Company’s equity securities in a public offering,
or a sale of Company’s equity securities to one or more venture capital investors with the primary purpose of raising capital.

 

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

 

(t)         “Senior
Indebtedness” shall mean, unless expressly subordinated to or made on a parity with the amounts due under this Note,
the principal of (and premium, if any), unpaid interest on and amounts reimbursable, fees, expenses, costs of enforcement and other
amounts due in connection with, (i) indebtedness of Company, to banks, commercial finance lenders, other lending institutions regularly
engaged in the business of lending money, or any other lenders (excluding (A) venture capital, investment banking or similar institutions
which sometimes engage in lending activities but which are primarily engaged in investments in equity securities and (B) equipment
lenders or equipment lessors that advance indebtedness to Company solely to be used for the purchase, finance or acquisition of
equipment and where such indebtedness is secured solely by such equipment), which is for money borrowed whether or not secured,
and (ii) any such indebtedness or any debentures, notes or other evidence of

 

    	- 3 -

    	 

    

 

indebtedness issued in exchange
for such Senior Indebtedness, or any indebtedness arising from the satisfaction of such Senior Indebtedness by a guarantor.

 

2.          Payment.  All
outstanding principal, together with any then unpaid and accrued interest and any other amounts payable hereunder, shall be due
and payable upon the earlier of (i) ten days written notice to the Company by the Holder following the Maturity Date, or (ii) when,
upon or after the occurrence of an Event of Default (as defined below), such amounts are declared due and payable by Holder in
accordance with Section 5 below.  In the event that the Maturity Date falls on a date other than a Business Day, the
payment due on such date shall be made on the next Business Day.  For purposes of clarity, this Note may not be repaid
in the absence of a demand for such repayment by the Holder hereof other than in connection with a Sale Event, as set forth below.

 

3.          Prepayment.  This
Note may not be prepaid without the prior written consent of the Holder.

 

4.          Events
of Default.  The occurrence of any of the following shall constitute an “Event of Default” under
this Note and the Note Purchase Agreement:

 

(a)        Failure
to Pay.  The Company shall fail to make any principal or interest payment or any other payment required under
the terms of this Note within two (2) Business Days of the date such payment is due; or

 

(b)        Voluntary
Bankruptcy or Insolvency Proceedings.  The Company shall (i) apply for or consent to the appointment of a
receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) be unable, or admit
in writing its inability, to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or
any of its creditors, (iv) be dissolved or liquidated, (v) commence a voluntary case or other proceeding seeking liquidation, reorganization
or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect
or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case
or other proceeding commenced against it, or (vi) take any action for the purpose of effecting any of the foregoing; or

 

(c)        Involuntary
Bankruptcy or Insolvency Proceedings.  Proceedings for the appointment of a receiver, trustee, liquidator
or custodian of the Company or of all or a substantial part of the property thereof, or an involuntary case or other proceedings
seeking liquidation, reorganization or other relief with respect to the Company or the debts thereof under any bankruptcy, insolvency
or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not
be dismissed or discharged within 30 days of commencement.

 

5.          Rights
of Holder upon Default.  Upon the occurrence or existence of an Event of Default described in Section 4(a)
and at any time thereafter during the continuance of such Event of Default, Holder may, with the consent of a Majority in Interest,
by written notice to the Company, declare all outstanding Obligations payable by the Company hereunder to be immediately due and
payable without presentment, demand, protest or any other notice of any

 

    	- 4 -

    	 

    

 

kind, all of which are hereby
expressly waived.  Upon the occurrence or existence of an Event of Default described in Sections 4(b) or 4(c),
all outstanding Obligations payable by the Company hereunder shall automatically become immediately due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the
Note Purchase Agreement to the contrary notwithstanding.  In addition to the foregoing remedies, upon the occurrence
or existence of any Event of Default and, in the case of an Event of Default described in Section 4(a), subject to the consent
of a Majority in Interest, Holder may exercise any other right, power or remedy granted to it by this Note and the Note Purchase
Agreement or otherwise permitted to it by law, either by suit in equity or by action at law, or both.  Notwithstanding
the foregoing, if, on the date that is six (6) months from an Event of Default described in Section 4(a), and provided such
Event of Default is continuing at such time, a Majority in Interest has not exercised any or all of its rights hereunder, Holder
may seek to exercise any or all rights it may have at such time without seeking the consent of a Majority in Interest.

 

6.          Qualified
Equity Financing; Sale Event.

 

(a)        Conversion
Upon Qualified Equity Financing.  Upon consummation of a Qualified Equity Financing during the term this
Note remains outstanding, the outstanding principal amount of and all accrued but unpaid interest under this Note shall automatically
convert into shares of Preferred Stock (“Preferred Securities”) at a price per share equal to seventy-five percent
(75%) of the price per share paid by the investors (other than the Holders) participating in the Qualified Equity Financing and
otherwise on the same terms as the Qualified Equity Financing.

 

(b)        Repayment
Upon Sale Event.  Upon the consummation of a Sale Event during the term this Note remains outstanding, the
outstanding principal amount of and all accrued but unpaid interest under this Note shall become immediately due and payable along
with an additional payment equal to one hundred percent (100%) of the original principal amount advanced hereunder.

 

(c)        Delivery.  Upon
conversion of this Note pursuant to a Conversion Event, the Holder hereby agrees to execute and deliver to the Company all transaction
documents related to the Conversion Event including, if applicable, customary representations and warranties and transfer restrictions,
and having the same terms as those agreements entered into by the Company’s other holders of Preferred Securities or Common
Stock, as applicable.  Upon conversion of this Note pursuant to a Conversion Event, the Holder also agrees to deliver
the original of this Note (or a notice to the effect that the original Note has been lost, stolen or destroyed and an agreement
acceptable to the Company whereby the holder agrees to indemnify the Company from any loss incurred by it in connection with this
Note) for cancellation; provided, however, that upon consummation of the Conversion Event
this Note shall be deemed converted and of no further force and effect, whether or not it is delivered for cancellation as set
forth in this sentence.

 

(d)        Fractional
Shares; Interest; Effect of Conversion.  No fractional shares shall be issued upon conversion of this Note.  In
lieu of the Company issuing any fractional shares to Holder upon the conversion of this Note, the Company shall pay to Holder an
amount equal to

 

    	- 5 -

    	 

    

 

the product obtained by multiplying
the conversion price by the fraction of a share not issued pursuant to the previous sentence.  Upon conversion of this
Note in full and the payment of any amounts specified in this Section 6(d), the Company shall be forever released from all
its obligations and liabilities under this Note.

 

7.          Additional
Debt.  The Company shall not incur any Senior Indebtedness or any additional indebtedness not contemplated
by the Note Purchase Agreement without the prior approval of the holders of a Majority in Interest.

 

8.          Successors
and Assigns.  Subject to any restrictions on transfer described below, the rights and obligations of the
Company and Holder shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

9.          Waiver
and Amendment.  Any provision of this Note may be amended, waived or modified upon the written consent of
the Company and a Majority in Interest; provided, however, that no such amendment, waiver
or consent shall: (i) reduce the principal amount of this Note without Holder’s written consent, or (ii) reduce the applicable
Interest Rate of this Note without Holder’s written consent.

 

10.        Transfer
of this Note.  Holder may not sell or otherwise dispose of this Note without the prior approval of the Company,
in its sole discretion.  With respect to any proposed offer, sale or other disposition of this Note, Holder will give
written notice to the Company prior thereto, describing briefly the manner thereof, together with a written opinion of Holder’s
counsel, or other evidence if reasonably satisfactory to the Company, to the effect that such offer, sale or other distribution
may be effected without registration or qualification (under any federal or state law then in effect).  Upon receiving
such written notice and reasonably satisfactory opinion, if so requested, or other evidence, the Company, as promptly as practicable,
shall in its sole discretion determine whether Holder may sell or otherwise dispose of this Note, all in accordance with the terms
of the notice delivered to the Company.  The Company shall so notify Holder promptly after such determination has been
made.  Each Note thus transferred and each certificate representing the securities thus transferred shall bear a legend
as to the applicable restrictions on transferability in order to ensure compliance with the Securities Act, unless in the opinion
of counsel for the Company such legend is not required in order to ensure compliance with the Securities Act.  The Company
may issue stop transfer instructions to its transfer agent in connection with such restrictions.  Subject to the foregoing,
transfers of this Note shall be registered upon registration books maintained for such purpose by or on behalf of the Company.  Prior
to presentation of this Note for registration of transfer, the Company shall treat the registered holder hereof as the owner and
holder of this Note for the purpose of receiving all payments of principal and interest hereon and for all other purposes whatsoever,
whether or not this Note shall be overdue and the Company shall not be affected by notice to the contrary.

 

11.        Assignment
by the Company.  Neither this Note nor any of the rights, interests or obligations hereunder may be assigned,
by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of a Majority in Interest.  Notwithstanding
the foregoing, the Company may, with the consent of its Board of Directors (which consent includes the consent of each and every
then-serving Preferred Director), assign this Note to a new corporation (the “Newco”) formed for the purpose
of developing and commercializing RP-G28,

 

    	- 6 -

    	 

    

 

the Company’s primary
drug candidate for the treatment of lactose intolerance and related purposes, in connection with the split off of that part of
its business from the Company (the “Split Off Assignment”).  In the event of any Split Off Assignment,
this Note shall become the obligation of Newco and references to the Company herein shall be deemed references to Newco.

 

12.        Notices.  All
notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall in writing and
faxed, mailed or delivered to each party at the respective addresses of the parties as set forth in the Note Purchase Agreement,
or at such other address or facsimile number as the Company shall have furnished to Holder in writing.  All such notices
and communications will be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one
business day after being delivered by facsimile (with receipt of appropriate confirmation), (iv) one business day after being deposited
with an overnight courier service of recognized standing or (v) four days after being deposited in the U.S. mail, first class with
postage prepaid.

 

13.        Pari
Passu Notes.  Holder acknowledges and agrees that the payment of all or any portion of the outstanding principal
amount of this Note and all interest hereon shall be pari passu in right of payment and in all other respects to the other Notes
issued pursuant to the Note Purchase Agreement.  In the event Holder receives payments in excess of its pro rata share
of the Company’s payments to all Holders, then Holder shall hold in trust all such excess payments for the benefit of the
other Holders and shall pay such amounts held in trust to such other Holders upon demand by such other Holders.

 

14.        Subordination.  The
indebtedness evidenced by this Note is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in
right of payment to the prior payment in full of all of the Company’s Senior Indebtedness.

 

(a)        Insolvency
Proceedings.  If there shall occur any receivership, insolvency, assignment for the benefit of creditors,
bankruptcy, reorganization, or arrangements with creditors (whether or not pursuant to bankruptcy or other insolvency laws), sale
of all or substantially all of the assets, dissolution, liquidation, or any other marshaling of the assets and liabilities of the
Company, (i) no amount shall be paid by the Company in respect of the principal of, interest on or other amounts due with respect
to this Note at the time outstanding, unless and until the principal of and interest on the Senior Indebtedness then outstanding
shall be paid in full, and (ii) no claim or proof of claim shall be filed with the Company by or on behalf of Holder which shall
assert any right to receive any payments in respect of the principal of and interest on this Note except subject to the payment
in full of the principal of and interest on all of the Senior Indebtedness then outstanding.

 

(b)        Default
on Senior Indebtedness.  If there shall occur an event of default which has been declared in writing with
respect to any Senior Indebtedness, as defined therein, or in the instrument under which it is outstanding, permitting the holder
to accelerate the maturity thereof and Holder shall have received written notice thereof from the holder of such Senior Indebtedness,
then, unless and until such event of default shall have been cured or waived or shall have ceased to exist, or all Senior Indebtedness
shall have been paid in full, no payment shall be made in respect of the principal of or interest on this Note, unless within one
hundred

 

    	- 7 -

    	 

    

 

eighty (180) days after the
happening of such event of default, the maturity of such Senior Indebtedness shall not have been accelerated.  Not more
than one notice may be given to Holder pursuant to the terms of this Section 14(b) during any 360 day period.

 

(c)        Further
Assurances.  By acceptance of this Note, Holder agrees to execute and deliver customary forms of subordination
agreement requested from time to time by holders of Senior Indebtedness, and as a condition to Holder’s rights hereunder,
the Company may require that Holder execute such forms of subordination agreement; provided, however,
that such forms shall not impose on Holder terms less favorable than those provided herein.

 

(d)        Other
Indebtedness.  No indebtedness which does not constitute Senior Indebtedness shall be senior in any respect
to the indebtedness represented by this Note.

 

(e)        Subrogation.  Subject
to the payment in full of all Senior Indebtedness, Holder shall be subrogated to the rights of the holder(s) of such Senior Indebtedness
(to the extent of the payments or distributions made to the holder(s) of such Senior Indebtedness pursuant to the provisions of
this Section 14) to receive payments and distributions of assets of the Company applicable to the Senior Indebtedness.  No
such payments or distributions applicable to the Senior Indebtedness shall, as between the Company and its creditors, other than
the holders of Senior Indebtedness and Holder, be deemed to be a payment by the Company to or on account of this Note; and for
purposes of such subrogation, no payments or distributions to the holders of Senior Indebtedness to which Holder would be entitled
except for the provisions of this Section 14 shall, as between the Company and its creditors, other than the holders of
Senior Indebtedness and Holder, be deemed to be a payment by the Company to or on account of the Senior Indebtedness.

 

(f)         No
Impairment.  Subject to the rights, if any, of the holders of Senior Indebtedness under this Section 14
to receive cash, securities or other properties otherwise payable or deliverable to Holder, nothing contained in this Section
14 shall impair, as between the Company and Holder, the obligation of the Company, subject to the terms and conditions hereof,
to pay to Holder the principal hereof and interest hereon as and when the same become due and payable, or shall prevent Holder,
upon default hereunder, from exercising all rights, powers and remedies otherwise provided herein or by applicable law.

 

(g)        Lien
Subordination.  Any Lien of Holder, whether now or hereafter existing in connection with the amounts due
under this Note, on any assets or property of the Company or any proceeds or revenues therefrom which Holder may have at any time
as security for any amounts due and obligations under this Note shall be subordinate to all Liens now or hereafter granted to a
holder of Senior Indebtedness by the Company or by law, notwithstanding the date, order or method of attachment or perfection of
any such Lien or the provisions of any applicable law.

 

(h)        Reliance
of Holders of Senior Indebtedness.  Holder, by its acceptance hereof, shall be deemed to acknowledge and
agree that the foregoing subordination provisions are, and are intended to be, an inducement to and a consideration of each holder
of Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the creation of the indebtedness
evidenced by this Note, and each such holder of Senior Indebtedness shall be

 

    	- 8 -

    	 

    

 

deemed conclusively to have
relied on such subordination provisions in acquiring and holding, or in continuing to hold, such Senior Indebtedness.

 

15.        Usury.  In
the event any interest is paid on this Note which is deemed to be in excess of the then legal maximum rate, then that portion of
the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal and
applied against the principal of this Note.  The Company agrees that the interest rate contracted for in connection with
the credit accommodations evidenced by this Note and the Note Purchase Agreement includes the interest rate set forth herein and
any other charges, costs, fees and expenses incident to this transaction paid by or on behalf of the Company, or any benefit received
by or on behalf of any Holder, to the extent the same are deemed interest under applicable law.

 

16.        Waivers.  The
Company hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and all
other notices or demands relative to this instrument.

 

17.        Governing
Law and Jurisdiction.  This Note and all actions arising out of or in connection with this Agreement shall
be governed by and construed in accordance with the laws of the State of Delaware without regard to the conflicts of law provisions
of the State of Delaware or of any other state.  This Note and all actions arising out of or in connection with this
Note shall be subject to the exclusive jurisdiction of the state and federal courts located in Los Angeles, California, and each
Holder expressly consents to such jurisdiction and waives any objection to such jurisdiction based on forum non-conveniens
or any similar theory.

 

(Signature Page Follows)

 

    	- 9 -

    	 

    

 

The Company has caused
this Note to be issued as of the date first written above.

 

	 	RITTER PHARMACEUTICALS, INC.
	 	 
	 	By:	/s/ Andrew J. Ritter
	 	 	ANDREW J. RITTER
	 	 	President and Chief Executive Officer

 

SUBORDINATED CONVERTIBLE
PROMISSORY NOTE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}]]