Document:

f8k070214ex10ii_coatesinter.htm

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement ("Agreement"), dated July 2, 2014, is made by and between COATES INTERNATIONAL, LTD., a Delaware corporation ("Company"), and SOUTHRIDGE PARTNERS II LP, a Delaware limited partnership (the "Investor").

 

RECITALS

 

WHEREAS, upon the terms and subject to the conditions of the Equity Purchase Agreement ("Purchase Agreement"), between the Investor and the Company, the Company has agreed to issue and sell to the Investor shares (the "Put Shares") of its common stock, $0.0001 par value per share (the "Common Stock") from time to time for an aggregate investment price of up to Ten Million Dollars ($10,000,000) (the "Registered Securities"); and

 

WHEREAS, to induce the Investor to execute and deliver the Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the "Securities Act"), and applicable state securities laws with respect to the Registered Securities;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1.           Definitions.

 

(a)         As used in this Agreement, the following terms shall have the following meaning:

 

(i)          "Subscription Date" means the date of this Agreement.

 

(ii)         "Investor" has the meaning set forth in the preamble to this Agreement.

 

(iii)        "Register," "registered" and "registration" refer to a registration effected by preparing and filing a Registration Statement or Statements in compliance with the Securities Act and pursuant to Rule 415 under the Securities Act or any successor rule providing for offering securities on a delayed or continuous basis ("Rule 415"), and the declaration or ordering of effectiveness of such Registration Statement by the United States Securities and Exchange Commission (the "SEC").

 

(iv)        "Registered Securities" will have the same meaning as set forth in the Purchase Agreement.

 

  

  

  

 

(v)         "Registration Statement" means the Company's registration statement on Form S­-1, or any similar registration statement of the Company filed with SEC under the Securities Act with respect to the Registered Securities.

 

(vi)        "EDGAR" means the SEC's Electronic Data Gathering, Analysis and Retrieval System.

 

(vii)       "Exchange Act" means the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations of the SEC thereunder, all as the same will then be in effect.

 

(b)         Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement.

 

2.          [RESERVED]

 

3.          Obligation of the Company. In connection with the registration of the Registered Securities, the Company shall do each of the following:

 

              (a)          Prepare promptly and file with the SEC within one hundred twenty (120) days after the date hereof, a Registration Statement with respect to not less than the maximum allowable under Rule 415 of Registered Securities, and thereafter use all commercially reasonable efforts to cause such Registration Statement relating to the Registered Securities to become effective within five (5) business days after notice from the Securities and Exchange Commission that such Registration Statement may be declared effective, and keep the Registration Statement effective at all times prior to the termination of the Purchase Agreement until the earliest of (i) the date that is three months after the completion of the last Closing Date under the Purchase Agreement, (ii) the date when the Investor may sell all Registered Securities under Rule 144 without volume limitations, or (iii) the date the Investor no longer owns any of the Registered Securities (collectively, the "Registration Period"), which Registration Statement (including any amendments or supplements, thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

              (b)          Prepare and file with the SEC such amendments (including post-effective amendments) and supplements to the Registration Statement and the prospectus used in connection with the Registration Statement as may be necessary to keep the Registration Statement effective at all times during the Registration Period, and to comply with the provisions of the Securities Act with respect to the disposition of all Registered Securities of the Company covered by the Registration Statement until the expiration of the Registration Period.

 

              (c)          With respect to the Registered Securities, permit counsel designated by Investor to review the Registration Statement and all amendments and supplements thereto a reasonable period of time (but not less than two (2) business days) prior to their filing with the SEC, and not file any document in a form to which such counsel reasonably objects.

 

  

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  (d)          As promptly as practicable after becoming aware of the following facts, the Company shall notify Investor and Investor's legal counsel identified to the Company and (if requested by any such person) confirm such notice in writing no later than one (1) business day thereafter (i): (A) when a prospectus or any prospectus supplement or post-effective amendment to the Registration Statement is filed; (B) with respect to the Registration Statement or any post-effective amendment, when the same has become effective; (ii) of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement covering any or all of the Registered Securities or the initiation of any proceedings for that purpose; and (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registered Securities for sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose.

 

  (e)          Unless available to the Investor without charge through EDGAR, the SEC's website or the Company's website, furnish to Investor, promptly after the same is prepared and publicly distributed, filed with the SEC, or received by the Company, one (1) copy of the Registration Statement, each preliminary prospectus and the prospectus, and each amendment or supplement thereto;

 

  (f)           Use all commercially reasonable efforts to (i) register and/or qualify the Registered Securities covered by the Registration Statement under such other securities or blue sky laws of such jurisdictions as the Investor may reasonably request and in which significant volumes of shares of Common Stock are traded, (ii) prepare and file in those jurisdictions such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof at all times during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualification in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registered Securities for sale in such jurisdictions: provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (A) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(f), (B) subject itself to general taxation in any such jurisdiction, (C) file a general consent to service of process in any such jurisdiction, (D) provide any undertakings that cause more than nominal expense or burden to the Company or (E) make any change in its charter or by-laws or any then existing contracts, which in each case the Board of Directors of the Company determines to be contrary to the best interests of the Company and its stockholders;

 

  

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  (g)          As promptly as practicable after becoming aware of such event, notify the Investor of the happening of any event of which the Company has knowledge, as a result of which the prospectus included in the Registration Statement, as then in effect, includes any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading ("Registration Default"), and promptly prepare a supplement or amendment to the Registration Statement or other appropriate filing with the SEC to correct such untrue statement or omission, and take any other commercially reasonable steps to cure the Registration Default, and, unless available to the Investor without charge through EDGAR, the SEC's website or the Company's website, deliver a number of copies of such supplement or amendment to the Investor as the Investor may reasonably request.

 

  (h)           [INTENTIONALLY OMITTED];

 

  (i)            Use its commercially reasonable efforts, if eligible, either to (i) cause all the Registered Securities covered by the Registration Statement to be listed on a national securities exchange and on each additional national securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registered Securities is then permitted under the rules of such exchange, or (ii) secure designation of all the Registered Securities covered by the Registration Statement as a National Association of Securities Dealers Automated Quotations System ("Nasdaq") security within the meaning of Rule 1 1 Aa2-1 of the SEC under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the quotation of the Registered Securities on the Nasdaq Capital Market; or if, despite the Company's commercially reasonable efforts to satisfy the preceding clause (i) or (ii), the Company is unsuccessful in doing so, to use its commercially reasonable efforts to secure authorization of the Financial Industry Regulatory Authority ("FINRA") and quotation for such Registered Securities on the over-the-counter bulletin board and, without limiting the generality of the foregoing;

 

  (j)            Provide a transfer agent for the Registered Securities not later than the Subscription Date under the Purchase Agreement;

 

  (k)           Cooperate with the Investor to facilitate the timely preparation and delivery of certificates for the Registered Securities to be offered pursuant to the Registration Statement and enable such certificates for the Registered Securities to be in such denominations or amounts as the case may be, as the Investor may reasonably request and registration in such names as the Investor may request; and, within five (5) business days after a Registration Statement which includes Registered Securities is ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel selected by the Company to deliver, to the transfer agent for the Registered Securities (with copies to the Investor) an appropriate instruction and opinion of such counsel, if so required by the Company's transfer agent; and

 

  (1)           Take all other commercially reasonable actions necessary to expedite and facilitate distribution to the Investor of the Registered Securities pursuant to the Registration Statement.

 

  

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4.          Obligations of the Investor. In connection with the registration of the Registered Securities, the Investor shall have the following obligations;

 

  (a)          It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registered Securities of the Investor that the Investor shall timely furnish to the Company such information regarding itself, the Registered Securities held by it, and the intended method of disposition of the Registered Securities held by it, as shall be reasonably required to effect the registration of such Registered Securities and shall timely execute such documents in connection with such registration as the Company may reasonably request.

 

  (b)          The Investor by such Investor's acceptance of the Registered Securities agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of the Registration Statement hereunder; and 

 

  (c)          The Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(d)(ii) or (iii) or 3(g) above, the Investor will immediately discontinue disposition of Registered Securities pursuant to the Registration Statement covering such Registered Securities until the Investor receives the copies of the supplemented or amended prospectus contemplated by Section 3(d)(ii) or (iii) or 3(g) and, if so directed by the Company, the Investor shall deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in the Investor's possession, of the prospectus covering such Registered Securities current at the time of receipt of such notice.

 

5.           Expenses of Registration. All reasonable expenses incurred in connection with registrations, filings or qualifications pursuant to Section 3 including, without limitation, all registration, listing, and qualifications fees, printers and accounting fees, the fees and disbursements of counsel for the Company shall be borne by the Company.

 

  

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6.           Indemnification. After Registered Securities are included in a Registration Statement under this Agreement:

 

  (a)          To the extent permitted by law, the Company will indemnify and hold harmless, the Investor, the directors, if any, of such Investor, the officers, if any, of such Investor, each person, if any, who controls the Investor within the meaning of the Securities Act or the Exchange Act (each, an "Indemnified Person"), against any losses, claims, damages, liabilities or expenses (joint or several) incurred (collectively, "Claims") to which any of them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or any post-effective amendment thereof or 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) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in the light of the circumstances under which the statements therein were made, not misleading or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation under the Securities Act, the Exchange Act or any state securities law (the matters in the foregoing clauses (i) through (iii) being collectively referred to as "Violations"). Subject to Section 6(b) hereof, the Company shall reimburse the Investor, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a) shall not (i) apply to any Claims arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by or on behalf of any Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company pursuant to Section 3(b) hereof; (ii) with respect to any preliminary prospectus, inure to the benefit of any such person from whom the person asserting any such Claim purchased the Registered Securities that are the subject thereof (or to the benefit of any person controlling such person) if the untrue statement or omission of material fact contained in the preliminary prospectus was corrected in the prospectus, as then amended or supplemented, if such prospectus was timely made available by the Company pursuant to Section 3(b) hereof; (iii) be available to the extent such Claim is based on a failure of the Investor to deliver or cause to be delivered the prospectus made available by the Company; or (iv) apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld. The Investor will indemnify the Company, its officers, directors and agents (including legal counsel) against any claims arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company, by or on behalf of the Investor, expressly for use in connection with the preparation of the Registration Statement, subject to such limitations and conditions set forth in the previous sentence.

 

  (b)           Promptly after receipt by an Indemnified Person under this Section 6 of notice of the commencement of any action (including any governmental action), such Indemnified Person shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person, as the case may be; provided, however, that an Indemnified Person shall have the right to retain its own counsel with the reasonable fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person and any other party represented by such counsel in such proceeding. In such event, the Company shall pay for only one separate legal counsel for the Investor selected by the Investor. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action. The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable.

 

  

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7.           Contribution.To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that (a) no contribution shall be made under circumstances where the maker would not have been liable for indemnification under the fault standards set forth in Section 6; (b) no seller of Registered Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registered Securities who was not guilty of such fraudulent misrepresentation; and (c) contribution by any seller of Registered Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registered Securities.

 

8.           Reports under Exchange Act. With a view to making available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration ("Rule 144"), the Company agrees to use its commercially reasonable efforts to:

 

  (a)           make and keep public information available, as those terms are understood and defined in Rule 144;

 

  (b)           file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act for so long as the Company remains subject to such requirements, and the filing of such reports is required for sales under Rule 144;

 

  (c)           furnish to the Investor so long as the Investor owns Registered Securities, promptly upon request, (i) a written statement by the Company that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) unless available to the Investor without charge through EDGAR, the SEC's website or the Company's website, a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration; and

 

  

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  (d)           at the request of any Investor of Registered Securities, give its Transfer Agent instructions (supported by an opinion of Investor's counsel, if required or requested by the Transfer Agent) to the effect that, upon the Transfer Agent's receipt from such Investor of:

 

  (i)            a certificate (a "Rule 144 Certificate") certifying (A) that such Investor has held the shares of Registered Securities which the Investor proposes to sell (the "Securities Being Sold") for a period of not less than (6) months and (B) as to such other matters as may be appropriate in accordance with Rule 144 under the Securities Act, and

 

  (ii)           an opinion of Investor's counsel acceptable to the Company that, based on the Rule 144 Certificate, Securities Being Sold may be sold pursuant to the provisions of Rule 144, even in the absence of an effective Registration Statement,

 

the Transfer Agent is to effect the transfer of the Securities Being Sold and issue to the buyer(s) or transferee(s) thereof one or more stock certificates representing the transferred Securities Being Sold without any restrictive legend and without recording any restrictions on the transferability of such shares on the Transfer Agent's books and records (except to the extent any such legend or restriction results from facts other than the identity of the Investor, as the seller or transferor thereof, or the status, including any relevant legends or restrictions, of the shares of the Securities Being Sold while held by the Investor). If the Transfer Agent requires any additional documentation at the time of the transfer, the Company shall deliver or cause to be delivered all such reasonable additional documentation as may be necessary to effectuate the issuance of an unlegended certificate.

 

9.          Miscellaneous.

 

(a)         Registered Owners. A person or entity is deemed to be a holder of Registered Securities whenever such person or entity owns of record such Registered Securities. If the Company receives conflicting instructions, notices or elections from two or more persons or entities with respect to the same Registered Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such Registered Securities.

 

  

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(b)          Rights Cumulative; Waivers. The rights of each of the parties under this Agreement are cumulative. The rights of each of the parties hereunder shall not be capable of being waived or varied other than by an express waiver or variation in writing. Any failure to exercise or any delay in exercising any of such rights shall not operate as a waiver or variation of that or any other such right. Any defective or partial exercise of any of such rights shall not preclude any other or further exercise of that or any other such right. No act or course of conduct or negotiation on the part of any party shall in any way preclude such party from exercising any such right or constitute a suspension or any variation of any such right.

 

(c)          Benefit; Successors Bound. This Agreement and the terms, covenants, conditions, provisions, obligations, undertakings, rights, and benefits hereof, shall be binding upon, and shall inure to the benefit of, the undersigned parties and their successors.

 

(d)          Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof. There are no promises, agreements, conditions, undertakings, understandings, warranties, covenants or representations, oral or written, express or implied, between them with respect to this Agreement or the matters described in this Agreement, except as set forth in this Agreement and in the other documentation relating to the transactions contemplated by this Agreement.Any such negotiations, promises, or understandings shall not be used to interpret or constitute this Agreement. 

 

(e)          Amendment. Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and Investor. Any amendment or waiver affected in accordance with this Section 9 shall be binding upon the parties hereto.

 

  Severability. Each part of this Agreement is intended to be severable. In the event that any provision of this Agreement is found by any court or other authority of competent jurisdiction to be illegal or unenforceable, such provision shall be severed or modified to the extent necessary to render it enforceable and as so severed or modified, this Agreement shall continue in full force and effect.

 

(g)         Notices. Notices required or permitted to be given hereunder shall be in writing and shall be deemed to be sufficiently given when personally delivered (by hand, by courier, by telephone line facsimile transmission, receipt confirmed, email or other means) or sent by certified mail, return receipt requested, properly addressed and with proper postage pre-paid (i) if to the Company, at its executive office and (ii) if to the Investor, at the address set forth under its name in the Purchase Agreement, with a copy to its designated attorney, or at such other address as each such party furnishes by notice given in accordance with this Section 9(g), and shall be effective, when personally delivered, upon receipt and, when so sent by certified mail, five (5) business days after deposit with the United States Postal Service.

 

  

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(h)          Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York without regard to the principles of conflicts of law. Each of the Company and Investor hereby submit to the exclusive jurisdiction of the United States Federal and state courts located in New York with respect to any dispute arising under this Agreement, the agreements entered into in connection herewith or the transactions contemplated hereby or thereby.

 

(i)          Consents. The person signing this Agreement on behalf of each party hereby represents and warrants that he has the necessary power, consent and authority to execute and deliver this Agreement on behalf of that party.

 

(j)          Further Assurances. In addition to the instruments and documents to be made, executed and delivered pursuant to this Agreement, the parties hereto agree to make, execute and deliver or cause to be made, executed and delivered, to the requesting party such other instruments and to take such other actions as the requesting party may reasonably require to carry out the terms of this Agreement and the transactions contemplated hereby.

 

(k)         Section Headings. The Section headings in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

(1)         Construction. Unless the context otherwise requires, when used herein, the singular shall be deemed to include the plural, the plural shall be deemed to include each of the singular, and pronouns of one or no gender shall be deemed to include the equivalent pronoun of the other or no gender.

 

(m)        Execution in Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by email of a .pdf or telephone line facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement. A facsimile transmission or email of a .pdf of this signed Agreement shall be legal and binding on all parties hereto.

 

[SIGNATURES ON FOLLOWING PAGE]

 

  

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[SIGNATURE PAGE]

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the day and year first above written.

 

	 	

COMPANY:

	 
	 	 	 
	 	

COATES INTERNATIONAL, LTD.

INVESTOR:

	 
	 	 	 	 
	
 

	
By: 

	/s/ Barry C. Kaye	 
	 	 	Barry C. Kaye	 
	 	 	Chief Financial Officer	 

 

	 	

SOUTHRIDGE PARTNERS II LP

	 
	 	 	 	 
	 	
By: 

	/s/  Stephen Hicks	 
	 	 	Stephen Hicks	 
	 	 	Manager	 

 

 

11AGREEMENT

 

THIS AGREEMENT (the "Agreement")
made as of June 30, 2014, by and among TMIX DARLING HARBOUR PTY LTD (ACN 152 745 670) ("Darling Harbour"), CHANTICLEER
HOLDINGS, INC., a Delaware corporation ("Chanticleer") and FLORIDA MEZZANINE FUND, LLLP, a Florida limited liability
limited partnership ("Florida Mezz").

 

RECITALS

 

WHEREAS, Florida Mezz
is the lender to Darling Harbour pursuant to that certain Facility Agreement, as amended by that certain First Deed of Amendment
– Facility Agreement dated February 14, 2012, and as further amended by that certain Second Deed of Amendment - Facility
Agreement dated August 31, 2012, that certain Fixed and Floating Charge Agreement, and other loan documentation (together, the
“Loan Documents”) dated January 27, 2012 evidencing a loan (the “Obligation”) with the current principal
balance of $5,000,000;

 

WHEREAS, Chanticleer
has agreed to assume and agrees to pay the Obligation evidenced by the Loan Documents in accordance with the terms and conditions
set forth below; and

 

WHEREAS, Florida Mezz
has agreed to release certain collateral and warrants it had previously received pursuant to the Facility Agreement; and

 

WHEREAS, Darling Harbour
and its affiliates have agreed to sell and convey certain assets to Chanticleer or its subsidiaries as more particularly described
herein.

 

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

 

1.            Chanticleer
will assume and agree to pay the Obligation as set forth in the Loan Documents as such Loan Documents may be modified in the manner
contemplated below and Chanticleer will execute and deliver to Florida Mezz the assumption agreement in the form set forth on Exhibit
“A” attached hereto.         

 

2.            Chanticleer
will secure the Obligation by a pledge of its business assets including, but not limited to, all Accounts, Documents, Instruments,
General Intangibles, Chattel Paper, Equipment, Inventory, Personal Property, Intellectual Property, and all other business assets
of Chanticleer, wherever located and whether now owned by Chanticleer or hereafter acquired, and the parts, proceeds, products,
profits, replacements, and substitutions of each, as the case may be, as each are defined in the Uniform Commercial Code in effect
in Delaware from time to time (the “Assets”). The pledge will be subordinate to a line of credit up to One Million
Two Hundred and Fifty Thousand Dollars ($1,250,000) with Paragon Bank (the “Paragon Security Interest”) and secured
convertible notes held by a consortium of investors totaling Three Million Dollars ($3,000,000) (the “Note Holder Security
Interest”). The Paragon Security Interest includes all of Chanticleer’s Assets, whereas the Note Holder Security Interest
includes only the Nottingham, England Hooters restaurant location. Chanticleer will execute and deliver a security agreement in
form and content as set forth on Exhibit “B” attached hereto. 

 

    	 

    	 

    

 

3.            Florida
Mezz will release its lien on the collateral granted to it pursuant to the Fixed and Floating Charge Agreement with Darling Harbour
dated January 27, 2012. Florida Mezz will execute and deliver to Darling Harbour the release in the form attached hereto as Exhibit
“C” attached hereto. Florida Mezz will also release and terminate its right to receive any warrants from entities currently
controlled by Morney Schlebusch or his affiliates.         

 

4.            Chanticleer
agrees to make principal payments on the Obligation in the amount equal to or greater than $2,000,000 on or before December 31,
2014, $2,000,000 on or before June 30, 2015 and all remaining outstanding principal together with interest and other fees and charges
owing on or before December 31, 2015 (“Principal Payment Obligation”). In addition, Chanticleer will make principal
payments on the Obligation in the amount of: (a) all asset sales not in the ordinary course of business by Chanticleer or its subsidiaries,
and (b) all proceeds from subsequent borrowed funds and all proceeds from the sale of securities of Chanticleer in excess of Three
Million Dollars ($3,000,000) in the aggregate, including any S-1 offerings. Payments made pursuant to paragraph 4(a) and 4(b) shall
be credited toward the Principal Payment Obligation set forth above.         

 

5.            Chanticleer
will issue to Florida Mezz warrants in the form attached hereto as Exhibit “D.”

 

6.          Closing
on this Agreement is conditioned upon Chanticleer or its subsidiaries receiving not less than 60% interest in TMIX Management Australia
Pty Ltd., Hooters Australia Pty. Ltd., Hoot Campbelltown Pty Ltd., Hoot Parramatta Pty. Ltd., and Hoot Penrith Pty. Ltd. as well
as rights to 100% of the gaming revenue from gaming licenses relating to Darling Harbour.         

 

7.            Nothing
in this Agreement or its conditions are considered a violation or breach of the Loan Documents or a Triggering Event as defined
in the Loan Documents. Any claim of violation or breach as related to any terms herein or any conditions to closing is hereby waived
by Florida Mezz.

 

8.            Chanticleer
consents to the release by Florida Mezz of its lien on collateral granted pursuant to the Fixed and Floating Charges Agreement
with Darling Harbour and acknowledges that such release will not impair or affect the assumption by Chanticleer of the Obligation.
Chanticleer acknowledges that it is a primary obligor of the Obligation and Florida Mezz may seek payment directly from Chanticleer
without pursuing collection from any collateral or against any other obligor.

 

9.            Closing
shall occur on or before June 30, 2014. Closing shall occur by mail and exchange of documents.

 

10.          A facsimile,
portable document format (pdf), or other reproduction of this Agreement may be executed by the parties (in counterparts or otherwise)
and shall be considered valid, binding and effective for all purposes. At the request of any party, the parties hereto agree to
execute an original of this Agreement as well as any facsimile, telescope or other reproduction. This Agreement may be executed
in one or more separate counterparts, each of which, when so executed, shall be deemed to be an original. Such counterparts shall,
together, constitute and shall be one and the same instrument.

 

    	 

    	 

    

 

11.          In
the event of a dispute arising under this Agreement, whether or not a lawsuit or other proceeding is filed, the prevailing party
shall be entitled to recover its reasonable attorneys’ fees and costs, including attorneys’ fees and coss incurred
in litigating entitlement to attorneys’ fees and costs, as well as in determining or quantifying the amount of recoverable
attorneys’ fees and costs. The reasonable costs to which the prevailing party is entitled shall include costs that are taxable
under any applicable statute, rule, or guideline, as well as non-taxable costs, including, but not limited to, costs of investigation,
copying costs, electronic discovery costs, telephone charges, mailing and delivery charges, information technology support charges,
consultant and expert witness fees, travel expenses, court reporter fees, and mediator fees, regardless of whether such costs are
otherwise taxable.

 

12.          All
of the terms and provisions contained herein shall inure to the benefit of and shall be binding upon the parties hereto and their
respective heirs, personal representatives, successors and assigns.

 

13.         This
Agreement shall be construed fairly, in accordance with the plain meaning of its terms, and there shall be no presumption or inference
drawn against the party drafting this Agreement in interpreting the provisions hereof. Use of the neuter gender shall be deemed
to include the masculine and feminine, as the context requires and vice versa. All pronouns and any variations of same shall be
deemed to refer to the masculine, feminine, neuter, singular, or plural, as the identity of the person or persons may require.

 

[The remainder of this page intentionally
left blank.]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties have duly
executed this Agreement as of the day and year first above written.

 

	FLORIDA MEZZANINE FUND, LLLP, 	 
	a Florida limited liability limited partnership	 
	 	 
	By:	Gator Fund Partners, LLC, 	 
	 	a Florida limited liability company, 	 
	 	General Partner	 
	 	 	 
	 	By:	/s/ Seth  D. Ellis	 
	 	Name:	Seth D. Ellis	 
	 	Title:	Manager	 
	 	 
	TMIX DARLING HARBOUR PTY LTD (ACN 152 745 670)
	 	 
	By:	/s/ Morney Schlebusch	 
	Name:	 Morney Schlebusch	 
	Title:	Manager	 
	 	 
	CHANTICLEER HOLDINGS, INC., a Delaware corporation
	 	 
	By:	 /s/ Michael D. Pruitt	 
	Name:	Michael D. Pruitt	 
	Title:	President/ CEO	 

 

    	 

    	 

    

 

ASSUMPTION AGREEMENT

 

THIS ASSUMPTION AGREEMENT (“Assumption
Agreement”), by and between CHANTICLEER HOLDINGS, INC., a Delaware corporation (“Chanticleer”) and FLORIDA MEZZANINE
FUND, LLLP, a Florida limited liability limited partnership ("Florida Mezz") is dated and effective as of July 1,
2014 (the “Effective Date”).

 

WHEREAS, Florida Mezz
is the lender to TMIX DARLING HARBOUR PTY LTD (ACN 152 745 670) (“Darling Harbour”) pursuant to that certain Facility
Agreement, as amended by that certain First Deed of Amendment – Facility Agreement dated February 14, 2012, and as further
amended by that certain Second Deed of Amendment Facility Agreement dated August 31, 2012, that certain Fixed and Floating Charge
Agreement, and other loan documentation (together, the “Loan Documents”) dated January 27, 2012 evidencing a loan (the
“Obligation”) with the current principal balance of $5,000,000;

 

WHEREAS, Chanticleer
has agreed to assume and agrees to pay the Obligation evidenced by the Loan Documents in accordance with the terms and conditions
set forth below.

 

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

 

NOW THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Darling Harbour and Chanticleer agree
as follows:

 

1.          Assumption
of Obligations. Chanticleer does hereby assumes and agrees to pay all of the Obligations of Darling Harbour under the Loan
Documents.

 

2.          Principal
Payments. Chanticleer agrees to make principal payments on the Obligation in the amount equal to or greater than $2,000,000
on or before December 31, 2014, $2,000,000 on or before June 30, 2015 and all remaining outstanding principal together with interest
and other fees and charges owing on or before December 31, 2015 (“Principal Payment Obligation”). In addition, Chanticleer
will make principal payments on the Obligation in the amount of: (a) all asset sales not in the ordinary course of business by
Chanticleer or its subsidiaries, and (b) all proceeds from subsequent borrowed funds and all proceeds from the sale of securities
of Chanticleer in excess of Three Million Dollars ($3,000,000) in the aggregate, including any S-1 offerings. Payments made pursuant
to paragraph 2(a) and 2(b) shall be credited toward the Principal Payment Obligation set forth above.         

 

3.          Release
of Collateral; Primary Obligor. Chanticleer consents to the release by Florida Mezz of its lien on collateral granted pursuant
to the Fixed and Floating Charges Agreement with Darling Harbour and acknowledges that such release will not impair or affect the
assumption by Chanticleer of the Obligation. Chanticleer acknowledges that it is a primary obligor of the Obligation and Florida
Mezz may seek payment directly from Chanticleer without pursuing collection from any collateral or against any other obligor.

 

    	 

    	 

    

 

4.          Authority
and Counterparts. Each signatory to this Assumption Agreement represents hereby that he or she has the authority to execute
and deliver the same on behalf of the party hereto for which signatory is acting. A facsimile, portable document format (pdf),
or other reproduction of this Assumption Agreement may be executed by the parties (in counterparts or otherwise) and shall be considered
valid, binding and effective for all purposes. At the request of any party, the parties hereto agree to execute an original of
this Assumption Agreement as well as any facsimile, telescope or other reproduction. This Assumption Agreement may be executed
in one or more separate counterparts, each of which, when so executed, shall be deemed to be an original. Such counterparts shall,
together, constitute and shall be one and the same instrument.

 

5.          Successors
and Assigns. The provisions of this Assumption Agreement shall be binding upon and inure to the benefit of the respective successors
and assigns of Darling Harbour and Chanticleer.

 

6.          Waiver.
Chanticleer waives all notice of acceptance of this Assumption Agreement and all presentment, demand, protest or notice of protest,
demand or dishonor, non-payment or maturity of the Obligations.

 

7.          Attorneys’
Fees and Costs. In the event of a dispute arising under this Assumption Agreement, whether or not a lawsuit or other proceeding
is filed, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and costs, including attorneys’
fees and costs incurred in litigating entitlement to attorneys’ fees and costs, as well as in determining or quantifying
the amount of recoverable attorneys’ fees and costs. The reasonable costs to which the prevailing party is entitled shall
include costs that are taxable under any applicable statute, rule, or guideline, as well as non-taxable costs, including, but not
limited to, costs of investigation, copying costs, electronic discovery costs, telephone charges, mailing and delivery charges,
information technology support charges, consultant and expert witness fees, travel expenses, court reporter fees, and mediator
fees, regardless of whether such costs are otherwise taxable.

 

[The remainder of this page intentionally
left blank.]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties have duly executed this Assignment Agreement as of the day and year first above written.

 

	FLORIDA MEZZANINE FUND, LLLP, 	 
	a Florida limited liability limited partnership	 
	 	 
	By:	Gator Fund Partners, LLC, 	 
	 	a Florida limited liability company, 	 
	 	its General Partner	 
	 	 	 
	 	By:	/s/ Seth D. Ellis	 
	 	Name:	Seth D. Ellis 	 
	 	Title:	Manager	 
	 	 
	TMIX DARLING HARBOUR PTY LTD (ACN 152 745 670)
	 	 
	By:	/s/ Morney Schlebusch	 
	Name:	Morney Schlebusch	 
	Title:	Manager	 
	 	 
	CHANTICLEER HOLDINGS, INC., 

a Delaware corporation	 
	 	 
	By:	/s/ Michael D. Pruitt	 
	Name:	Michael D. Pruitt	 
	Title:	President / CEO	 

 

    	 

    	 

    

 

SECURITY AGREEMENT

 

1.          THE
SECURITY. The undersigned, CHANTICLEER HOLDINGS, INC., a Delaware corporation (the "Company") hereby assigns
and grants to FLORIDA MEZZANINE FUND, LLLP, a Florida limited liability limited partnership (the "Lender") a security
interest in the following described property now owned or hereafter acquired by the Company ("Collateral") as
security for the Indebtedness (as used herein, “Indebtedness” shall mean the obligation pursuant to that certain Facility
Agreement, as amended by that certain First Deed of Amendment – Facility Agreement dated February 14, 2012, as further amended
by that certain Second Deed of Amendment Facility Agreement dated August 31, 2012, that certain Fixed and Floating Charge Agreement,
and other loan documentation (the “Loan Documents”), dated January 27, 2012 evidencing a loan with a current principal
balance of $5,000,000):

 

(a) All accounts, contract rights,
chattel paper, instruments, deposit accounts, letter of credit rights, payment intangibles and general intangibles.

 

(b) All inventory.

 

(c) All machinery, furniture, fixtures
and other equipment of every type now owned or hereafter acquired by the Company.

 

(d) All instruments, notes, chattel
paper, documents, certificates of deposit, securities and investment property of every type. The Collateral shall include all liens,
security agreements, leases and other contracts securing or otherwise relating to the foregoing.

 

(e) All general intangibles, including,
but not limited to, (i) all patents, and all unpatented or unpatentable inventions; (ii) all trademarks, service marks, and trade
names; (iii) all copyrights and literary rights; (iv) all computer software programs; (v) all mask works of semiconductor chip
products; (vi) all trade secrets, proprietary information, customer lists, manufacturing, engineering and production plans, drawings,
specifications, processes and systems; and (vi) all equity interest in any subsidiaries. The Collateral shall include all good
will connected with or symbolized by any of such general intangibles; all contract rights, documents, applications, licenses, materials
and other matters related to such general intangibles; all tangible property embodying or incorporating any such general intangibles;
and all chattel paper and instruments relating to such general intangibles.

 

(f) All negotiable and nonnegotiable
documents of title covering any Collateral.

 

(g) All accessions, attachments
and other additions to the Collateral, and all tools, parts and equipment used in connection with the Collateral.

 

    	 

    	 

    

 

(h) All substitutes or replacements
for any Collateral, all cash or non-cash proceeds, product, rents and profits of any Collateral, all income, benefits and property
receivable on account of the Collateral, all rights under warranties and insurance contracts, letters of credit, guaranties or
other supporting obligations covering the Collateral, and any causes of action relating to the Collateral, and all proceeds (including
insurance proceeds) from the sale, destruction, loss, or other disposition of any of the Collateral and sums due from a third party
which has damaged or destroyed the Collateral or from that party’s insurer, whether due to judgment, settlement or other
process.

 

(i) All books, data and records
pertaining to any Collateral, whether in the form of a writing, photograph, microfilm or electronic media, including but not limited
to any computer-readable memory and any computer hardware or software necessary to process such memory ("Books and Records").

 

2.          COMPANY'S
COVENANTS. The Company represents, covenants and warrants that unless compliance is waived by the Lender in writing:

 

(a) The Company will properly preserve the Collateral;
defend the Collateral against any adverse claims and demands other than Permitted Encumbrances; and keep accurate in all materials,
respects, Books and Records.

 

(b) The Company will notify the Lender in writing
prior to any change in the Company's name.

 

(c) Unless otherwise agreed, the Company has not granted
and will not grant any security interest in any of the Collateral except to the Lender or in regard to a line of credit up to One
Million Two Hundred and Fifty Thousand Dollars ($1,250,000) with Paragon Bank, and a security interest in the Nottingham, England
Hooters restaurant location in regard to secured convertible notes held by a consortium of investors (the “Note Holders”)
for Three Million Dollars ($3,000,000), and will keep the Collateral free of all liens, claims, security interests and encumbrances
of any kind or nature except the security interest of the Lender and that of Paragon Bank and the Note Holders without the prior
written consent of the Lender.

 

(d) The Company shall pay all costs necessary to preserve,
defend, enforce and collect the Collateral unless contested in good faith, including but not limited to taxes, assessments, insurance
premiums, repairs, rent, storage costs and expenses of sales, and any costs to perfect the Lender’s security interest (collectively,
the “Collateral Costs”). Without waiving the Company's default for failure to make any such payment, the Lender
at its option may pay any such Collateral Costs, and discharge encumbrances on the Collateral, and such Collateral Costs payments
shall be a part of the Indebtedness and bear interest at the rate set out in the Indebtedness. The Company agrees to reimburse
the Lender on demand for any Collateral Costs so incurred.

 

    	 

    	 

    

 

3.          DEFAULTS.
If default be made in the payment of any of the Indebtedness or in the terms and conditions of the Loan Documents or this Security
Agreement, then the entire principal sum and accrued interest shall at the option of the holder hereof become at once due and collectible
with notice, time being of the essence; and said principal sum and accrued interest shall both bear interest from such time until
paid at the highest rate allowable under the laws of the State of Delaware. Failure to exercise this option shall not constitute
a waiver of the right to exercise the same in the event of any subsequent default.

 

4.          LENDER'S
REMEDIES AFTER DEFAULT. Upon the occurrence and continuation of an Event of Default, the Lender may do any one or more of the
following, to the extent permitted by law:

 

(a) Declare any Indebtedness immediately
due and payable, with notice or demand.

 

(b) Enforce the
security interest given hereunder pursuant to the Uniform Commercial Code of the State of Delaware and any other applicable law.

 

(c) Require the Company to segregate
all collections and proceeds of the Collateral so that they are capable of identification and deliver daily such collections and
proceeds to the Lender in kind.

 

(d) Require the Company to direct
all account debtors to forward all payments and proceeds of the Collateral to a post office box under the Lender's exclusive control.

 

(e) Require the Company to assemble
the Collateral, including the Books and Records, and make them available to the Lender at a place designated by the Lender.

 

(f) Enter upon the property where
any Collateral, including any Books and Records, are located and take possession of such Collateral and such Books and Records,
and use such property (including any buildings and facilities) and any of the Company's equipment, if the Lender deems such use
necessary or advisable in order to take possession of, hold, preserve, process, assemble, prepare for sale or lease, market for
sale or lease, sell or lease, or otherwise dispose of, any Collateral.

 

(g) Demand and collect any payments
on and proceeds of the Collateral. In connection therewith the Company irrevocably authorizes the Lender to endorse or sign the
Company's name on all checks, drafts, collections, receipts and other documents, and to take possession of and open the mail addressed
to the Company and remove therefrom any payments and proceeds of the Collateral.

 

(h) Grant extensions and compromise
or settle claims with respect to the Collateral for less than face value, all with prior notice to the Company.

 

    	 

    	 

    

 

(i) Use or transfer any of the Company's
rights and interests in any Intellectual Property now owned or hereafter acquired by the Company, if the Lender deems such use
or transfer necessary or advisable in order to take possession of, hold, preserve, process, assemble, prepare for sale or lease,
market for sale or lease, sell or lease, or otherwise dispose of, any Collateral. The Company agrees that any such use or transfer
shall be without any additional consideration to the Company. As used in this paragraph, "Intellectual Property" includes,
but is not limited to, all trade secrets, computer software, service marks, trademarks, trade names, trade styles, copyrights,
patents, applications for any of the foregoing, customer lists, working drawings, instructional manuals, and rights in processes
for technical manufacturing, packaging and labeling, in which the Company has any right or interest, whether by ownership, license,
contract or otherwise.

 

(j) Have a receiver appointed by
any court of competent jurisdiction to take possession of the Collateral. The Company hereby consents to the appointment of such
a receiver and agrees not to oppose any such appointment.

 

(k) Take such measures as the Lender
may deem necessary or advisable to take possession of, hold, preserve, process, assemble, insure, prepare for sale or lease, market
for sale or lease, sell or lease, or otherwise dispose of, any Collateral, and the Company hereby irrevocably constitutes and appoints
the Lender as the Company's attorney-in-fact to perform all acts and execute all documents in connection therewith.

 

(l) Exercise any other remedies
available to the Lender at law or in equity.

 

5.          WAIVER
OF JURY TRIAL. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
TRANSACTION. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL
OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A
BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE
TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED
THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH
LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RESTATEMENT, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE OTHER TRANSACTION
DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENT RELATING TO THE SECURITIES ISSUED HEREUNDER. IN THE EVENT OF LITIGATION, THIS
AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

    	 

    	 

    

 

6.         MISCELLANEOUS.

 

(a) Any waiver, express or implied,
of any provision hereunder and any delay or failure by the Lender to enforce any provision shall not preclude the Lender from enforcing
any such provision thereafter.

 

(b) The Company shall, at the request
of the Lender, execute such other agreements, documents, instruments, or financing statements in connection with this Agreement
as the Lender may reasonably deem necessary and authorizes Lender to file financing statements to perfect its lien.

 

(c) This Agreement is governed by
and shall be interpreted according to federal law and the laws of Delaware. Jurisdiction and venue for any action or proceeding
to enforce this Agreement shall be the forum appropriate for such action or proceeding against the Company.

 

(d) All rights and remedies herein
provided are cumulative and not exclusive of any rights or remedies otherwise provided by law. Any single or partial exercise of
any right or remedy shall not preclude the further exercise thereof or the exercise of any other right or remedy.

 

(e) All terms not defined herein
are used as set forth in the Uniform Commercial Code of the State of Delaware.

 

(f) In the event
of any action by the Lender to enforce this Agreement or to protect the security interest of the Lender in the Collateral, or to
take possession of, hold, preserve, process, assemble, insure, prepare for sale or lease, market for sale or lease, sell or lease,
or otherwise dispose of, any Collateral, the Company agrees to pay immediately the costs and expenses thereof, together with reasonable
attorneys' fees to the extent permitted by law.

 

(g) In the event the Lender seeks
to take possession of any or all of the Collateral by judicial process, the Company hereby irrevocably waives any bonds and any
surety or security relating thereto that may be required by applicable law as an incident to such possession, and waives any demand
for possession prior to the commencement of any such suit or action.

 

(h) This Agreement shall constitute
a continuing agreement, applying to all future as well as existing transactions, whether or not of the character contemplated at
the date of this Agreement, and if all transactions between the Lender and the Company shall be closed at any time, shall be equally
applicable to any new transactions thereafter.

 

    	 

    	 

    

 

(i) The Lender's rights hereunder
shall inure to the benefit of its successors and assigns. In the event of any assignment or transfer by the Lender of any of the
Indebtedness or the Collateral, the Lender thereafter shall be fully discharged from any responsibility with respect to the Collateral
so assigned or transferred, but the Lender shall retain all rights and powers hereby given with respect to any of the Indebtedness
or the Collateral not so assigned or transferred. All representations, warranties and agreements of the Company if more than one
are joint and several and all shall be binding upon the successors and assigns of the Company.

 

7.          FINAL
AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT: (A) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES, AND (B) THIS DOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS
OR UNDERSTANDINGS OF THE PARTIES. 

 

[The
remainder of this page intentionally left blank.]

 

    	 

    	 

    

Dated: As of June 30, 2014.

 

	CHANTICLEER HOLDINGS, INC., 	 
	a Delaware corporation	 
	 	 
	By:	/s/ Michael  D. Pruitt	 
	Name:	 Michael  D. Pruitt	 
	Title:	President / CEO

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