Document:

Exhibit 4.1

 

Carrols
Restaurant Group, Inc.

 

FORM
OF CERTIFICATE OF DESIGNATIONS

 

OF

 

SERIES C CONVERTIBLE
PREFERRED STOCK

 

Pursuant to
Section 151 of the

General Corporation
Law of the State of Delaware

 

Carrols
Restaurant Group, Inc., a Delaware corporation, hereby certifies that:

 

A.
The Restated Certificate of Incorporation of the Company fixes the total number of shares of capital stock that the Company shall
have the authority to issue at 100,000,000 shares of common stock, par value $0.01 per share, and 20,000,000 shares of preferred
stock, par value $0.01 per share (the “Preferred Stock”).

 

B.
The Certificate of Incorporation expressly vests the Board of Directors of the Company with authority from time to time to provide
for the issuance of shares of one or more series of the undesignated Preferred Stock and in connection therewith to fix by resolution
or resolutions providing for the issue of any such series, the number of shares to be included therein, the voting powers thereof,
and such of the designations, preferences and relative participating, optional or other special rights and qualifications, limitations
and restrictions of each such series, including dividend rights, voting rights, rights of redemption, conversion rights, and liquidation
preferences.

 

C.
Pursuant to the authority vested in the Board of Directors by the Certificate of Incorporation, the Board of Directors, by action
duly taken on [__], 2019, adopted resolutions establishing a series of Preferred Stock and fixing the designation, powers, preferences
and rights of the shares of this series of Preferred Stock and the qualifications, limitations or restrictions thereof as follows:

 

Section
1. Designation; Number of Shares; Restrictions.

 

(a) Designation;
Number of Shares. The designation of the series of Preferred Stock shall be “Series C Convertible Preferred Stock”
(the “Series C Convertible Preferred Stock”). The number of authorized shares of Series C Convertible Preferred
Stock shall be 10,000.

 

(b) Legend.
During the Holding Period, each certificate representing Series C Convertible Preferred Stock and Conversion Shares shall include
the following legend:

 

“THE
DIRECT OR INDIRECT SALE, ASSIGNMENT, TRANSFER, PLEDGE, OFFER, EXCHANGE, DISPOSITION, ENCUMBRANCE, ALIENATION OR OTHER
DISPOSITION (“TRANSFER”), WHETHER BY OPERATION OF LAW OR OTHERWISE, OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE AND THE ENTERING INTO OF ANY CONTRACT, OPTION OR OTHER AGREEMENT WITH RESPECT TO, OR THE CONSENT TO, A TRANSFER
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE OR THE HOLDER’S VOTING OR ECONOMIC INTEREST THEREIN, BY THE HOLDER OF
THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS STRICTLY PROHIBITED IN ACCORDANCE WITH THAT CERTAIN REGISTRATION RIGHTS AND
STOCKHOLDERS’ AGREEMENT, DATED AS OF THE ISSUE DATE, BY AND BETWEEN THE ISSUER AND THE INVESTOR, AND ANY TRANSFER MADE,
OR CONTRACT, OPTION OR OTHER AGREEMENT ENTERED INTO, IN VIOLATION OF THIS PROHIBITION WILL NOT BE BINDING UPON OR RECOGNIZED
BY THE ISSUER.”

 

     

     

    

 

Section
2. Definitions.

 

Unless
the context otherwise requires, each of the terms defined in this Section 2 shall have, for all purposes of this Certificate
of Designations, the meaning herein specified (with terms defined in the singular having comparable meanings when used in the plural):

 

“Board
of Directors” means the Board of Directors of the Company.

 

“Business
Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized
or required by law to close.

 

“By-Laws”
means the Company’s Amended and Restated By-Laws, as amended from time to time in accordance with Section 7.

 

“Capital
Stock” means any and all shares, interests, participations or other equivalents in the equity (however designated) in
the Company.

 

“Certificate
of Incorporation” means the Company’s Restated Certificate of Incorporation, as amended from time to time in accordance
with Section 7.

 

“Common
Stock” means the common stock, $0.01 par value per share, of the Company.

 

“Common
Stock Deemed Outstanding” means, at any given time, the number of shares of Common Stock actually outstanding at such
time; provided, that Common Stock Deemed Outstanding at any given time shall not include shares owned or held by or for the account
of the Company or any of its wholly owned subsidiaries.

 

“Common
Stock Transfer Agent” has the meaning set forth in Section 6(c) hereof.

 

“Company”
means Carrols Restaurant Group, Inc., a Delaware corporation, and its successors and assigns.

 

“Company’s
Organizational Documents” means the Certificate of Incorporation, this Certificate of Designations, any other certificate
of designations issued pursuant to the Certificate of Incorporation, and the By-Laws.

 

“Conversion
Price” has the meaning set forth in Section 6(a) hereof.

 

“Conversion
Shares” has the meaning set forth in Section 6(b) hereof.

 

“Convertible
Securities” means any securities (directly or indirectly) convertible into or exchangeable for Common Stock, but excluding
Options.

 

“DGCL”
means the General Corporation Law of the State of Delaware.

 

“Dividend”
has the meaning set forth in Section 4(b) hereof.

 

“Dividend
Accrual Period” has the meaning set forth in Section 4(b) hereof.

 

“Dividend
Payment Date” has the meaning set forth in Section 4(b) hereof.

 

“Excluded
Issuances” means any issuance or sale (or deemed issuance or sale in accordance with Section 6(e)(iii)) by the
Company after the Issue Date of: (a) shares of Common Stock issued on the conversion of the Series B Convertible Preferred Stock
of the Company pursuant to the terms of the Series B Convertible Preferred Stock in effect on the Issue Date; (b) shares of Common
Stock issued on the conversion of the Series C Convertible Preferred Stock; or (c) shares of Common Stock issued directly or upon
the exercise of Options, restricted stock units, equity securities or any other awards or grants to directors, officers, employees,
or consultants of the Company or any of its Subsidiaries in connection with their service as directors of the Company or any of
its Subsidiaries, their employment by the Company or any of its Subsidiaries or their retention as consultants by the Company or
any of its Subsidiaries, in each case authorized by the Board of Directors (or a committee thereof) and issued pursuant to the
Company’s 2006 Stock Incentive Plan or the Company’s 2016 Stock Incentive Plan (including all such shares of Common Stock and Options
outstanding prior to the Issue Date) or any other stock incentive plan of the Company authorized by the Board of Directors (or
a committee thereof) and approved by holders of Common Stock in effect after the Issue Date.

 

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“Holders”
means the record holders of the shares of Series C Convertible Preferred Stock, as shown on the books and records of the Company.

 

“Holding
Period” means a two (2) year period commencing on the Issue Date and ending on the second anniversary of the Issue
Date.

 

“Investor”
means Cambridge Franchise Holdings, LLC, a Delaware limited liability company.

 

“Issue
Date” means [__], 2019.

 

“Junior
Stock” has the meaning set forth in Section 3 hereof.

 

“Liquidation
Event” means (i) any voluntary or involuntary liquidation, dissolution or winding-up of the Company, (ii) the
consummation of a merger or consolidation in which the stockholders of the Company prior to such transaction own less than a majority
of the voting securities of (a) the entity surviving or resulting from such transaction or (b) if the surviving or resulting entity
is a wholly owned Subsidiary of another corporation or entity immediately following such transaction, the parent corporation or
entity of such surviving or resulting entity, or (iii) the sale, distribution or other disposition of all or substantially
all of the Company’s assets (on a consolidated basis).

 

“Mandatory
Conversion” has the meaning set forth in Section 6(a) hereof.

 

“Mandatory
Conversion Date” has the meaning set forth in Section 6(a) hereof.

 

“Market
Price” of the Common Stock on any date of determination means the closing sale price or, if no closing sale price is
reported, the last reported sale price, of shares of Common Stock on The NASDAQ Global Market on such date. If the Common Stock
is not traded on The NASDAQ Global Market on any date of determination, the Market Price of the Common Stock on such date of determination
means the closing sale price as reported in the composite transactions for the principal United States securities exchange or automated
quotation system on which the Common Stock is so listed or quoted, or, if no closing sale price is reported, the last reported
sale price on the principal United States securities exchange or automated quotation system on which the Common Stock is so listed
or quoted, or if the Common Stock is not so listed or quoted on a United States securities exchange or automated quotation system,
the last quoted bid price for the Common Stock in the over-the-counter market as reported by OTC Market Group, Inc. or any similar
organization, or, if that bid price is not available, the market price of the Common Stock on that date as determined by an independent
financial advisor retained by the Company for such purpose.

 

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

 

“Parity
Stock” has the meaning set forth in Section 3 hereof.

 

“Person”
includes all natural persons, corporations, business trusts, limited liability companies, associations, companies, partnerships,
joint ventures and other entities, as well as governments and their respective agencies and political subdivisions.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Senior
Stock” has the meaning set forth in Section 3 hereof.

 

“Series
B Convertible Preferred Stock” means the Series B Convertible Preferred Stock of the Company, par value $0.01 per share,
outstanding on the Issue Date.

 

“Series
C Convertible Preferred Stock” has the meaning set forth in Section 1 hereof.

 

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“Stated
Value” means, as of any time of determination, an amount per share of Series C Convertible Preferred Stock equal to $[__],
plus the sum of all Dividends paid in respect of such share at or prior to such time, plus the sum of all Dividends accumulated
and unpaid in respect of such share at or prior to such time.

 

“Stockholder
Approval” has the meaning set forth in Section 6(b) hereof.

 

“Subsidiary”
means, with respect to any Person, any other Person of which a majority of the outstanding shares or other equity interests having
the power to vote for directors or comparable managers are owned, directly or indirectly, by the first Person.

 

“Transfer
Agent” means the entity designated from time to time by the Company to act as the registrar and transfer agent for the
Series C Convertible Preferred Stock or, if no entity has been so designated to act in such capacity, the Company.

 

Section
3. Ranking.

 

The
Series C Convertible Preferred Stock shall, with respect to rights on the liquidation, winding-up and dissolution of the Company
(as provided in Section 5 below), rank (a) senior to all classes of Common Stock and to each other class of Capital
Stock or series of Preferred Stock established hereafter by the Board of Directors the terms of which expressly provide that such
class ranks junior to the Series C Convertible Preferred Stock as to rights on the liquidation, winding-up and dissolution of the
Company (collectively referred to as the “Junior Stock”), (b) on a parity with the Series B Convertible
Preferred Stock and with each other class of Capital Stock or series of Preferred Stock established hereafter by the Board of Directors
with the written consent of the Holders of at least a majority of the outstanding shares of Series C Convertible Preferred Stock,
the terms of which expressly provide that such class or series ranks on a parity with the Series C Convertible Preferred Stock
as to rights on the liquidation, winding-up and dissolution of the Company (collectively referred to as the “Parity Stock”)
and (c) junior to any future class of Preferred Stock established hereafter by the Board of Directors with the written consent
of the Holders of at least a majority of the outstanding shares of Series C Convertible Preferred Stock, the terms of which expressly
provide that such class ranks senior to the Series C Convertible Preferred Stock as to rights on the liquidation, winding-up and
dissolution of the Company (collectively referred to as the “Senior Stock”).

 

Subject
to Section 4(b), the Series C Convertible Preferred Stock shall, with respect to rights to dividends (as provided in Section 4
below), rank on a parity with each class of Common Stock and the Series B Convertible Preferred Stock.

 

Section
4. Dividends.

 

(a) The
Company shall not (and shall cause its direct and indirect Subsidiaries not to) declare, pay or set aside any dividends on shares
of Common Stock (other than dividends on shares of Common Stock payable solely in shares of Common Stock) unless (in addition to
the obtaining of any consents required elsewhere in the Company’s Organizational Documents) the Holders simultaneously receive
a dividend (payable in the same form of stock, securities, cash or other property paid to the holders of Common Stock) on each
outstanding share of Series C Convertible Preferred Stock in an amount equal to that dividend per share of Series C Convertible
Preferred Stock as would equal the product of the dividend payable on each share of Common Stock and the number of shares of Common
Stock then issuable upon conversion of one share of Series C Convertible Preferred Stock, calculated on the record date for determination
of holders entitled to receive such dividend and without regard to any limitation on conversion set forth in Section  6(b)
hereof.

 

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(b) From
and after the Issue Date, each Holder of Series C Convertible Preferred Stock, in preference and priority to the holders of all
other classes or series of stock, shall be entitled to receive, with respect to each share, or fraction of a share, of Series C
Convertible Preferred Stock then outstanding and held by such Holder, dividends accruing on a daily basis, commencing from the
date of issuance of such share of Series C Convertible Preferred Stock, at the rate of nine percent (9%) per annum of the Stated
Value per whole share (or proportion thereof with respect to fractional shares) of Series C Convertible Preferred Stock (the “Dividends”).
The Dividends shall be cumulative, whether or not earned or declared, shall compound semi-annually and shall be paid semi-annually
in arrears on [__] and [__] in each year (each a “Divided Payment Date”), commencing [__], 2019. For the avoidance
of doubt, dividends shall accrue daily on the Stated Value of each share of Series C Convertible Preferred Stock as such Stated
Value is increased by any payment of Dividends pursuant to the immediately succeeding sentence. The Dividends shall be paid in
the form of an increase in the Stated Value of the Series C Convertible Preferred Stock. In the event that the Mandatory Conversion
Date occurs on a date other than a Dividend Payment Date, the aggregate amount of the Dividend accrued and unpaid since the last
Dividend Payment Date shall be automatically forfeited without any further action on the part of the Company or the Holders, will
not increase the Stated Value, and will not be paid to any Holder.

 

Section
5. Liquidation Preference.

 

(a) Upon
any Liquidation Event, the Holders of the Series C Convertible Preferred Stock shall receive from the net assets of the Company,
(i) prior to the holders of any class or series of Common Stock and Junior Stock, (ii) pro rata with the holders of any Parity
Stock and (iii) after the holders of any Senior Stock, and if the assets of the Company shall be insufficient to pay in full such
amounts, then the entire assets to be distributed to the Holders shall be ratably distributed among the Holders and holders of
Parity Stock in accordance with the respective amounts that would be payable on such shares if all amounts payable thereon were
paid in full, the greater of (a) the Stated Value multiplied by the number of shares of Series C Convertible Preferred Stock held
by such Holders and (b) the per share amount of all cash, securities and other property (such securities or other property having
a value equal to its fair market value as reasonably determined by the Board of Directors) that would be distributed in respect
of the Common Stock such Holder would have received had it converted such Series C Convertible Preferred Stock immediately prior
to the date fixed for such Liquidation Event, without regard to any limitation on conversion set forth in Section 6(b) hereof.

 

Section
6. Conversion.

 

(a) Mandatory
Conversion upon Stockholder Approval. Upon the later of (i) the date that the Stockholder Approval is obtained or (ii) in the
event clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”),
for such conversion is required and has not yet been obtained, the date that all applicable waiting periods (and extensions thereof)
under the HSR Act have expired or been terminated (such date the “Mandatory Conversion Date”), each outstanding
share of Series C Convertible Preferred Stock shall automatically be converted into a number of shares of Common Stock (the “Mandatory
Conversion”) equal to (i) the Stated Value divided by (ii) the Conversion Price in effect immediately prior to
such conversion. The initial conversion price per share of Series C Convertible Preferred Stock (the “Conversion Price”)
shall be $13.50 per share of Series C Convertible Preferred Stock, subject to adjustment as applicable in accordance with Section
6(e) below. Each share of Series C Convertible Preferred Stock shall initially be convertible into [__] shares of Common Stock
subject to adjustment as provided herein.

 

(b) Limitation
on Conversion. Notwithstanding anything herein to the contrary, the Company shall not issue to any Holder, and the Holders
shall not have the right to the issuance of any shares of Common Stock issuable upon conversion of Series C Convertible Preferred
Stock (“Conversion Shares”), unless and until the Company obtains stockholder approval permitting such issuances
in accordance with applicable NASDAQ Stock Market Rules (“Stockholder Approval”).

 

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(c) Conversion
Procedures. The Company shall send to all Holders written notice of the Mandatory Conversion Date. Such notice need not be
sent in advance of the occurrence of the Mandatory Conversion Date. Upon receipt of such notice, each Holder shall surrender his,
her or its certificate or certificates for all such shares of Series C Convertible Preferred Stock (or, if such Holder alleges
that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the
Company to indemnify the Company against any claim that may be made against the Company on account of the alleged loss, theft or
destruction of such certificate) to the Company at the place designated in such notice. If so required by the Company, certificates
surrendered for conversion shall be endorsed or accompanied by written instrument or instruments of transfer, in form satisfactory
to the Company, duly executed by the Holder or by his, her or its attorney duly authorized in writing. All rights with respect
to the Series C Convertible Preferred Stock converted pursuant to Section 6(a), including the rights, if any, to receive
notices and vote (other than notice of the Mandatory Conversion Date or as a holder of Common Stock), will terminate at the Mandatory
Conversion Date (notwithstanding the failure of the Holder or Holders thereof to surrender the certificates at or prior to such
time). As soon as practicable after the Mandatory Conversion Date and the surrender of the certificate or certificates (or lost
certificate affidavit and agreement), if any, for Series C Convertible Preferred Stock, the Company shall authorize its transfer
agent and registrar for the Common Stock (the “Common Stock Transfer Agent”) to register in the name of the
Holder such Conversion Shares on the book-entry system of the Transfer Agent. If the Holder wishes to hold the Conversion Shares
in certificated form, the Holder may so request and the Common Stock Transfer Agent will mail to the Holder one or more stock certificates
evidencing the Holder’s Conversion Shares. Holders of uncertificated shares of Series C Convertible Preferred Stock will have their
shares automatically converted, and such Conversion Shares will be reflected on the book-entry system of the Common Stock Transfer
Agent. The Company will also issue and deliver to such Holder cash as provided in Section 6(h) in lieu of any fraction of
a share of Common Stock otherwise issuable upon such conversion. All or some Conversion Shares so issued whether in book-entry
form or in certificated form may be subject to restrictions on transfer as required by applicable federal and state securities
laws. Any such Conversion Shares subject to restrictions on transfer under applicable federal and state securities laws shall be
encumbered by stop transfer orders and restrictive legends (or equivalent encumbrances). Upon surrender of the certificate(s),
if any, representing shares of Series C Convertible Preferred Stock converted pursuant to Section 6(a), such conversion,
to the extent permitted by law, shall be deemed to have been effected, and such surrendering Holder shall be deemed to have become
the holder of record of the Conversion Shares issued to such Holder, as of the Mandatory Conversion Date.

 

(d) Effect
of Conversion. Upon the issuance of the Conversion Shares in accordance with Section  6, such shares shall be deemed
to be duly authorized, validly issued, fully paid and non-assessable.

 

(e) Adjustment
to Conversion Price and number of Conversion Shares. The Conversion Price shall be subject to adjustment from time to time
as provided in this Section 6(e).

 

(i) Adjustment
to Conversion Price upon Issuance of Common Stock. Except as provided in Section 6(e)(ii) and except in the case of
an event described in either Section 6(e)(iv) or Section 6(e)(v), if the Company shall, at any time or from time
to time after the Issue Date, issue or sell, or in accordance with Section 6(e)(iii) is deemed to have issued or sold, any
shares of Common Stock without consideration or for consideration per share less than the Conversion Price in effect immediately
prior to such issuance or sale (or deemed issuance or sale), then immediately upon such issuance or sale (or deemed issuance or
sale), the Conversion Price in effect immediately prior to such issuance or sale (or deemed issuance or sale) shall be reduced
(and in no event increased) to a Conversion Price equal to the quotient obtained by dividing:

 

(1) the sum
of (A) the product obtained by multiplying the Common Stock Deemed Outstanding immediately prior to such issuance or sale (or deemed
issuance or sale) by the Conversion Price then in effect plus (B) the aggregate consideration, if any, received by the Company
upon such issuance or sale (or deemed issuance or sale); by

 

(2) the sum
of (A) the Common Stock Deemed Outstanding immediately prior to such issuance or sale (or deemed issuance or sale) plus (B) the
aggregate number of shares of Common Stock issued or sold (or deemed issued or sold) by the Company in such issuance or sale (or
deemed issuance or sale).

 

Whenever following
the Issue Date the Company shall issue or sell, or in accordance with Section 6(e)(iii) is deemed to have issued or sold,
any shares of Common Stock, the Company shall prepare a certificate signed by an executive officer setting forth, in reasonable
detail, the number of shares issued or sold, or deemed issued or sold, the amount and the form of the consideration received by
the Company and the method of computation of such amount and shall cause copies of such certificate to be mailed to the Holders
at the address specified for such Holders in the books and records of the Company (or at such other address as may be provided
to the Company in writing by such Holders).

 

(ii) Exceptions
to Adjustment Upon Issuance of Common Stock. Anything herein to the contrary notwithstanding, there shall be no adjustment
to the Conversion Price or the number of Conversion Shares issuable upon conversion of the Series C Convertible Preferred Stock
with respect to any Excluded Issuance.

 

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(iii) 
Effect of Certain Events on Adjustment to Conversion Price. For purposes of determining the adjusted Conversion Price under
Section 6(e)(i) hereof, the following shall be applicable:

 

(A) Issuance
of Options. If the Company shall, at any time or from time to time after the Issue Date, in any manner grant or sell (whether
directly or by assumption in a merger or otherwise) any Options, whether or not such Options or the right to convert or exchange
any Convertible Securities issuable upon the exercise of such Options are immediately exercisable, and the price per share (determined
as provided in this paragraph and in Section 6(e)(iii)(E)) for which Common Stock is issuable upon the exercise of such
Options or upon the conversion or exchange of Convertible Securities issuable upon the exercise of such Options is less than the
Conversion Price in effect immediately prior to the time of the granting or sale of such Options, then the total maximum number
of shares of Common Stock issuable upon the exercise of such Options or upon conversion or exchange of the total maximum amount
of Convertible Securities issuable upon the exercise of such Options shall be deemed to have been issued as of the date of granting
or sale of such Options (and thereafter shall be deemed to be outstanding for purposes of adjusting the Conversion Price under
Section 6(e)(i)), at a price per share equal to the quotient obtained by dividing (A) the sum (which sum shall constitute
the applicable consideration received for purposes of Section 6(e)(i)) of (x) the total amount, if any, received or receivable
by the Company as consideration for the granting or sale of all such Options, plus (y) the minimum aggregate amount of additional
consideration payable to the Company upon the exercise of all such Options, plus (z), in the case of such Options which relate
to Convertible Securities, the minimum aggregate amount of additional consideration, if any, payable to the Company upon the issuance
or sale of all such Convertible Securities and the conversion or exchange of all such Convertible Securities, by (B) the total
maximum number of shares of Common Stock issuable upon the exercise of all such Options or upon the conversion or exchange of all
Convertible Securities issuable upon the exercise of all such Options. Except as otherwise provided in Section 6(e)(iii)(C),
no further adjustment of the Conversion Price shall be made upon the actual issuance of Common Stock or of Convertible Securities
upon exercise of such Options or upon the actual issuance of Common Stock upon conversion or exchange of Convertible Securities
issuable upon exercise of such Options.

 

(B) 
Issuance of Convertible Securities. If the Company shall, at any time or from time to time after the Issue Date, in any
manner grant or sell (whether directly or by assumption in a merger or otherwise) any Convertible Securities, whether or not the
right to convert or exchange any such Convertible Securities is immediately exercisable, and the price per share (determined as
provided in this paragraph and in Section 6(e)(iii)(E)) for which Common Stock is issuable upon the conversion or exchange
of such Convertible Securities is less than the Conversion Price in effect immediately prior to the time of the granting or sale
of such Convertible Securities, then the total maximum number of shares of Common Stock issuable upon conversion or exchange of
the total maximum amount of such Convertible Securities shall be deemed to have been issued as of the date of granting or sale
of such Convertible Securities (and thereafter shall be deemed to be outstanding for purposes of adjusting the Conversion Price
pursuant to Section 6(e)(i)), at a price per share equal to the quotient obtained by dividing (A) the sum (which sum shall
constitute the applicable consideration received for purposes of Section 6(e)(i)) of (x) the total amount, if any, received
or receivable by the Company as consideration for the granting or sale of such Convertible Securities, plus (y) the minimum aggregate
amount of additional consideration, if any, payable to the Company upon the conversion or exchange of all such Convertible Securities,
by (B) the total maximum number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities.
Except as otherwise provided in Section 6(e)(iii)(C), (A) no further adjustment of the Conversion Price shall be made upon
the actual issuance of Common Stock upon conversion or exchange of such Convertible Securities and (B) no further adjustment of
the Conversion Price shall be made by reason of the issue or sale of Convertible Securities upon exercise of any Options to purchase
any such Convertible Securities for which adjustments of the Conversion Price have been made pursuant to the other provisions of
this Section 6(e)(iii).

 

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(C) Change
in Terms of Options or Convertible Securities. Upon any change in any of (A) the total amount received or receivable by the
Company as consideration for the granting or sale of any Options or Convertible Securities referred to in Section 6(e)(iii)(A)
or Section 6(e)(iii)(B) hereof, (B) the minimum aggregate amount of additional consideration, if any, payable to the Company
upon the exercise of any Options or upon the issuance, conversion or exchange of any Convertible Securities referred to in Section
6(e)(iii)(A) or Section 6(e)(iii)(B) hereof, (C) the rate at which Convertible Securities referred to in Section
6(e)(iii)(A) or Section 6(e)(iii)(B) hereof are convertible into or exchangeable for Common Stock, or (D) the maximum
number of shares of Common Stock issuable in connection with any Options referred to in Section 6(e)(iii)(A) hereof or any
Convertible Securities referred to in Section 6(e)(iii)(B) hereof (in each case, other than in connection with an Excluded
Issuance), then if the original issuance or sale of such Options or Convertible Securities resulted in an adjustment to the Conversion
Price pursuant to this Section 6(e), the Conversion Price in effect at the time of such change shall be readjusted to the
Conversion Price which would have been in effect at such time pursuant to the provisions of this Section 6(e) had such Options
or Convertible Securities still outstanding provided for such changed consideration, conversion rate or maximum number of shares,
as the case may be, at the time initially granted, issued or sold and the number of Conversion Shares issuable upon the conversion
of the Series C Convertible Preferred Stock immediately prior to any such adjustment or readjustment shall be correspondingly readjusted.

 

(D) Treatment
of Expired or Terminated Options or Convertible Securities. Upon the expiration or termination of any unexercised Option (or
portion thereof) or any unconverted or unexchanged Convertible Security (or portion thereof) for which any adjustment (either upon
its original issuance or upon a revision of its terms) was made pursuant to this Section 6(e) (including upon the redemption
or purchase for consideration of all or any portion of such Option or Convertible Security by the Company), the Conversion Price
then in effect hereunder shall forthwith be changed pursuant to the provisions of this Section 6(e) to the Conversion Price
which would have been in effect at the time of such expiration or termination had such unexercised Option (or portion thereof)
or unconverted or unexchanged Convertible Security (or portion thereof), to the extent outstanding immediately prior to such expiration
or termination, never been issued.

 

(E) Calculation
of Consideration Received. If the Company shall, at any time or from time to time after the Issue Date, issue or sell, or is
deemed to have issued or sold in accordance with Section 6(e)(iii), any shares of Common Stock, Options or Convertible Securities:
(A) for cash, the consideration received therefor shall be deemed to be the net amount received by the Company therefor; (B) for
consideration other than cash, the amount of the consideration other than cash received by the Company shall be the fair value
of such consideration, except where such consideration consists of marketable securities, in which case the amount of consideration
received by the Company shall be the market price (as reflected on any securities exchange, quotation system or association or
similar pricing system covering such security) for such securities as of the end of business on the date of receipt of such securities;
(C) for no specifically allocated consideration in connection with an issuance or sale of other securities of the Company, together
comprising one integrated transaction, the amount of the consideration therefor shall be deemed to be the fair value of such portion
of the aggregate consideration received by the Company in such transaction as is attributable to such shares of Common Stock, Options
or Convertible Securities, as the case may be, issued in such transaction; or (D) to the owners of the non-surviving entity in
connection with any merger in which the Company is the surviving corporation, the amount of consideration therefor shall be deemed
to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such shares
of Common Stock, Options or Convertible Securities, as the case may be, issued to such owners. The net amount of any cash consideration
and the fair value of any consideration other than cash or marketable securities shall be determined in good faith by the Board
of Directors.

 

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(F) Record
Date. For purposes of any adjustment to the Conversion Price or the number of Conversion Shares in accordance with this Section
6(e), in case the Company shall take a record of the holders of its Common Stock for the purpose of entitling them (A) to receive
a dividend or other distribution payable in Common Stock, Options or Convertible Securities or (B) to subscribe for or purchase
Common Stock, Options or Convertible Securities, then such record date shall be deemed to be the date of the issue or sale of the
shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution
or the date of the granting of such right of subscription or purchase, as the case may be.

 

(G) Treasury
Shares. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for
the account of the Company or any of its wholly owned Subsidiaries, and the disposition of any such shares (other than the cancellation
or retirement thereof or the transfer of such shares among the Company and its wholly owned Subsidiaries) shall be considered an
issue or sale of Common Stock for the purpose of this Section 6(e).

 

(iv) Adjustment
to Conversion Price and Conversion Shares Upon Dividend, Subdivision or Combination of Common Stock. If the Company shall,
at any time or from time to time after the Issue Date, (i) pay a dividend or make any other distribution upon the Common Stock
or any other capital stock of the Company payable in shares of Common Stock or in Options or Convertible Securities, or (ii) subdivide
(by any stock split, recapitalization or otherwise) its outstanding shares of Common Stock into a greater number of shares, the
Conversion Price in effect immediately prior to any such dividend, distribution or subdivision shall be proportionately reduced
and the number of Conversion Shares issuable upon the conversion of the Series C Convertible Preferred Stock shall be proportionately
increased. If the Company at any time combines (by combination, reverse stock split or otherwise) its outstanding shares of Common
Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination shall be proportionately
increased and the number of Conversion Shares issuable upon the conversion of the Series C Convertible Preferred Stock shall be
proportionately decreased. Any adjustment under this Section 6(e)(iv) shall become effective at the close of business on
the date the dividend, subdivision or combination becomes effective.

 

(v) Adjustment
to Conversion Price and Conversion Shares Upon Reorganization, Reclassification, Consolidation or Merger. In the event of any
(A) capital reorganization of the Company, (B) reclassification of the stock of the Company (other than a change in par value or
from par value to no par value or from no par value to par value or as a result of a stock dividend or subdivision, split-up or
combination of shares), (C) consolidation or merger of the Company with or into another Person, (D) sale of all or substantially
all of the Company’s assets to another Person or (E) other similar transaction (other than any such transaction covered by Section
6(e)(iv)), in each case which entitles the holders of Common Stock (but not the holders of the Series C Convertible Preferred
Stock) to receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for
their shares, each share of Series C Convertible Preferred Stock shall, immediately after such reorganization, reclassification,
consolidation, merger, sale or similar transaction, remain outstanding and shall thereafter, in lieu of or in addition to (as the
case may be) the number of Conversion Shares then issuable upon conversion of such share of Series C Convertible Preferred Stock,
be exercisable for the kind and number of shares of stock or other securities or assets of the Company or of the successor Person
resulting from such transaction to which such share of Series C Convertible Preferred Stock would have been entitled upon such
reorganization, reclassification, consolidation, merger, sale or similar transaction if the share of Series C Convertible Preferred
Stock had been converted in full immediately prior to the time of such reorganization, reclassification, consolidation, merger,
sale or similar transaction and acquired the applicable number of Conversion Shares then issuable hereunder as a result of such
conversion (without taking into account any limitations or restrictions on the convertibility of such share of Series C Convertible
Preferred Stock, if any); and, in such case, appropriate adjustment shall be made with respect to such holder’s rights under this
Certificate of Designations to insure that the provisions of this Section 6 hereof shall thereafter be applicable, as nearly
as possible, to the Series C Convertible Preferred Stock in relation to any shares of stock, securities or assets thereafter acquirable
upon conversion of Series C Convertible Preferred Stock (including, in the case of any consolidation, merger, sale or similar transaction
in which the successor or purchasing Person is other than the Company, an immediate adjustment in the Conversion Price to the value
per share for the Common Stock reflected by the terms of such consolidation, merger, sale or similar transaction, and a corresponding
immediate adjustment to the number of Conversion Shares acquirable upon conversion of the Series C Convertible Preferred Stock
without regard to any limitations or restrictions on conversion, if the value so reflected is less than the Conversion Price in
effect immediately prior to such consolidation, merger, sale or similar transaction). The provisions of this Section 6(e)(v)
shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales or similar transactions.
The Company shall not effect any such reorganization, reclassification, consolidation, merger, sale or similar transaction unless,
prior to the consummation thereof, the successor Person (if other than the Company) resulting from such reorganization, reclassification,
consolidation, merger, sale or similar transaction, shall assume, by written instrument substantially similar in form and substance
to this Certificate of Designations, the obligation to deliver to the holders of Series C Convertible Preferred Stock such shares
of stock, securities or assets which, in accordance with the foregoing provisions, such holders shall be entitled to receive upon
conversion of the Series C Convertible Preferred Stock.

 

    - 9 -

     

    

 

Notwithstanding
anything to the contrary contained herein, with respect to any corporate event or other transaction contemplated by the provisions
of this Section 6(e)(v), each holder of shares of Series C Convertible Preferred Stock shall have the right to elect prior
to the consummation of such event or transaction, to give effect to the provisions of Section 5 hereunder, instead of giving
effect to the provisions contained in this Section 6(e)(v) with respect to such holder’s Series C Convertible Preferred
Stock and notice of which election shall be submitted in writing to the Company at its principal offices no later than ten (10)
days before the effective date of such event, provided that any such notice of election shall be effective if given not later than
fifteen (15) days after the date of the Company’s notice pursuant to Section 6(f) hereof with respect to such event,
and, provided, further, that if any Holder fails to give the Company such notice of election, the provisions of this Section
6(e)(v) shall govern the treatment of such Holder’s shares of Series C Convertible Preferred Stock upon the occurrence
of such event.

 

(vi) Recapitalizations.
If at any time or from time to time there shall be a recapitalization of the Common Stock (other than a subdivision, combination,
merger or sale of assets transaction provided for elsewhere in this Section  6(e)), provision shall be made so that
the Holders shall thereafter be entitled to receive upon conversion of the Series C Convertible Preferred Stock the number of shares
of Capital Stock or other securities or property of the Company to which a holder of Common Stock would have been entitled on recapitalization.
In any such case, appropriate adjustment shall be made in the application of the provisions of this Section  6(e) with
respect to the rights of the Holders after the recapitalization to the end that the provisions of this Section  6(e)
(including adjustment of the Conversion Price then in effect and the number of shares issuable upon conversion of the Series C
Convertible Preferred Stock) shall be applicable after that event as nearly equivalent as may be practicable.

 

(f) Notices
of Record Date. In the event (i) the Company fixes a record date to determine the holders of Common Stock who are entitled
to receive any dividend or other distribution, or (ii) there occurs any capital reorganization of the Company, any reclassification
or recapitalization of the Common Stock of the Company, any merger or consolidation of the Company, or any voluntary or involuntary
dissolution, liquidation or winding up of the Company, the Company shall mail to each Holder at least ten (10) days prior
to the record date specified therein, a notice specifying (a) the date of such record date for the purpose of such dividend
or distribution and a description of such dividend or distribution, (b) the date on which any such reorganization, reclassification,
consolidation, merger, dissolution, liquidation or winding up is expected to become effective, and (c) the time, if any, that
is to be fixed, as to when the holders of record of Common Stock (or other securities) shall be entitled to exchange their shares
of Common Stock or other securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation,
merger, dissolution, liquidation or winding up.

 

(g) No
Impairment. The Company will not, by amendment of its Certificate of Incorporation or through any reorganization, recapitalization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek
to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all the provisions of this Section  6 and in the taking of all such
actions as may be necessary or appropriate in order to protect the conversion rights of the Holders against impairment.

 

(h) Fractional
Shares and Certificate as to Adjustments. In lieu of any fractional shares of Common Stock to which a Holder would otherwise
be entitled upon conversion, the Company shall pay, in respect of each such fractional share, an amount in cash equal to such fraction
multiplied by the Market Price of one share of Common Stock on the date of conversion.

 

    - 10 -

     

    

 

Upon
the occurrence of each adjustment or readjustment of the Conversion Price pursuant to this Section 6, the Company,
at its expense, shall promptly compute such adjustment or readjustment in accordance with the terms hereof and prepare and furnish
to each Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment
or readjustment is based. The Company shall, upon the written request at any time of any Holder, furnish or cause to be furnished
to such Holder a like certificate setting forth (A) the calculation of such adjustment or readjustment, (B) the Conversion
Price at the time in effect, and (C) the number of shares of Common Stock and the amount, if any, of other property which
at the time would be received upon the conversion of such Holder’s shares of Series C Convertible Preferred Stock. The provisions
of Section 6(e) shall apply to any transaction and successively to any series of transactions that would require
any adjustment pursuant thereto.

 

(i) Reservation
of Stock Issuable Upon Conversion. The Company shall at all times reserve and keep available out of its authorized but unissued
Common Stock, solely for the purpose of effecting the conversion of the shares of the Series C Convertible Preferred Stock (taking
into account the adjustments required by this Section  6), such number of its shares of Common Stock as shall from
time to time be sufficient to effect the conversion of all outstanding shares of the Series C Convertible Preferred Stock; and
if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of
all then outstanding shares of the Series C Convertible Preferred Stock, in addition to such other remedies as shall be available
to the Holders, the Company will, as soon as is reasonably practicable, take all such action as may, in the opinion of its counsel,
be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for
such purposes.

 

Section
7. Voting Rights.

 

(a) In
addition to any other vote of the Holders required by law, this Certificate of Designations or the Certificate of Incorporation,
without the prior consent of the Holders of at least a majority of the shares of Series C Convertible Preferred Stock then outstanding,
the Company will not (and shall not permit any direct or indirect Subsidiary of the Company):

 

(i) authorize,
create, designate, establish or issue (including as a result of a merger, consolidation, or other similar or extraordinary transaction)
(A) an increased number of shares of Series C Convertible Preferred Stock, or (B) any other class or series of capital stock ranking
senior to or on parity with the Series C Convertible Preferred Stock as to dividends or upon liquidation or (y) reclassify any
shares of Common Stock into shares of capital stock having any preference or priority as to dividends or upon liquidation senior
to or on parity with any such preference or priority of the Series C Convertible Preferred Stock;

 

(ii) amend,
restate, alter or repeal (including as a result of a merger, consolidation, or other similar or extraordinary transaction) this
Certificate of Designations or any of the rights, powers or preferences of the Series C Convertible Preferred Stock;

 

(iii) amend,
restate, alter or repeal (including as a result of a merger, consolidation, or other similar or extraordinary transaction) any
of the Company’s Organizational Documents if such amendment, restatement, alteration or repeal would have an adverse effect
on the rights, powers or preferences of the Series C Convertible Preferred Stock or the Holders in their capacity as such; or

 

(iv) agree
to do any of the foregoing.

 

Section
8. Reissuance of Shares of Series C Convertible Preferred Stock.

 

Shares
of Series C Convertible Preferred Stock that have been issued and reacquired by the Company in any manner, including shares purchased,
redeemed, converted or exchanged, shall (upon compliance with any applicable provisions of the DGCL) be permanently retired or
cancelled and shall not under any circumstances be reissued. The Company shall from time to time take such appropriate action as
may be required by applicable law to reduce the authorized number of shares of Series C Convertible Preferred Stock by the number
of shares that have been so reacquired.

 

    - 11 -

     

    

 

Section
9. Notices.

 

Any
and all notices, consents, approval or other communications or deliveries required or permitted to be provided under this Certificate
of Designations shall be in writing and shall be deemed given and effective on the earliest of (a) the date of receipt, if
such notice, consent, approval or other communication is delivered by hand (with written confirmation of receipt) or via facsimile
or email to the Company or the Holders, as applicable, at the facsimile number or email address specified in the register of Holders
of Series C Convertible Preferred Stock maintained by the Transfer Agent prior to 5:00 p.m. (New York City time) on a Business
Day, (b) the next Business Day after the date of receipt, if such notice, consent, approval or other communication is delivered
via facsimile or email to the Company or the Holder, as applicable, at the facsimile number or email address specified in the register
of Holders of Series C Convertible Preferred Stock maintained by the Transfer Agent on a day that is not a Business Day or later
than 5:00 p.m. (New York City time) on any Business Day, or (c) the third Business Day following the date of deposit with
a nationally recognized overnight courier service for next Business Day delivery and addressed to the Company or the Holder, as
applicable, at the address specified in the register of Holders of Series C Convertible Preferred Stock maintained by the Transfer
Agent.

 

Section
10. Headings; References.

 

The
headings of the various sections and subsections hereof are for convenience of reference only and shall not affect the interpretation
of any of the provisions hereof. References herein to Sections are to Sections of this Certificate of Designations unless otherwise
specified.

 

Section
11. Severability of Provisions.

 

If
any powers, preferences and relative, participating, optional and other special rights of the Series C Convertible Preferred Stock
and the qualifications, limitations and restrictions thereof set forth in this Certificate of Designations (as it may be amended
from time to time) are invalid, unlawful or incapable of being enforced by reason of any rule or law or public policy, all other
powers, preferences and relative, participating, optional and other special rights of the Series C Convertible Preferred Stock
and the qualifications, limitations and restrictions thereof set forth in this Certificate of Designations (as so amended) which
can be given effect without the invalid, unlawful or unenforceable powers, preferences and relative, participating, optional and
other special rights of the Series C Convertible Preferred Stock and the qualifications, limitations and restrictions thereof shall,
nevertheless, remain in full force and effect, and no powers, preferences and relative, participating, optional or other special
rights of the Series C Convertible Preferred Stock and the qualifications, limitations and restrictions thereof herein set forth
shall be deemed dependent upon any other such powers, preferences and relative, participating, optional or other special rights
of Preferred Stock and qualifications, limitations and restrictions thereof unless so expressed herein.

 

[Intentionally
Left Blank; Signature Page Follows]

 

    - 12 -

     

    

 

IN
WITNESS WHEREOF, this Certificate of Designations has been executed on behalf of the Company by its Vice President, General
Counsel and Secretary this [__] day of [__], 2019.

 

	 	Carrols Restaurant Group, Inc.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature
Page to Certificate of Designations – Series C Convertible Preferred Stock]Exhibit 4.2

 

FINAL VERSION

 

FORM OF REGISTRATION RIGHTS AND
STOCKHOLDERS’ AGREEMENT

 

This Registration Rights
and Stockholders’ Agreement (this “Agreement”) is entered into as of [__], 2019, by and between CARROLS
RESTAURANT GROUP, INC. (formerly known as “Carrols Holdco Inc.”), a Delaware corporation (the “Company”),
and CAMBRIDGE FRANCHISE HOLDINGS, LLC, a Delaware limited liability company (the “Investor”).

 

WHEREAS, the
Company, Carrols Holdco Inc. (formerly known as “Carrols Restaurant Group, Inc.”), GRC MergerSub Inc., GRC MergerSub
LLC (“Carrols MergerSub”), Cambridge Franchise Partners, LLC, New CFH, LLC (“New CFH”) and
the Investor have entered into that certain Agreement and Plan of Merger, dated as of February 19, 2019 (as may be amended from
time to time, the “Merger Agreement”), providing for, among other things, the acquisition of New CFH through
the merger of Carrols MergerSub and New CFH, with New CFH as the surviving entity, in exchange for the issuance by the Company
to the Investor of [●]1 shares
of Common Stock (the “Investor Common Stock”) and 10,000 shares of newly-designated Series C Convertible Preferred
Stock, par value $0.01 per share, of the Company (together with any shares of capital stock into which such shares are reclassified
or converted (including by merger or otherwise), the “Preferred Stock”); and

 

WHEREAS, as
an inducement to the Company and the Investor to close the transactions contemplated by the Merger Agreement, the Company and the
Investor have agreed that this Agreement shall provide certain rights and govern certain matters as set forth herein.

 

NOW, THEREFORE,
the Company and the Investor hereby agree as follows:

 

1. Definitions.
When used in this Agreement, the following terms shall have the meanings indicated below:

 

(a) “Adverse
Disclosure” means, in the good faith determination of the Board, material undisclosed circumstances or developments with
respect to which the disclosure that would be required in a Registration Statement would be premature and would have an adverse
effect on the Company.

 

(b) “Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls,
is controlled by, or is under common control with, such Person. The term “control” (including the terms “controlled
by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract
or otherwise.

 

(c) “Agreement”
has the meaning set forth in the preamble to this Agreement.

 

(d) “Approved
Block Trade” means a block sale or non-marketed underwritten offering of Registrable Securities (i) for a sales
price per share of no less than 90% of the average closing price of the Common Stock on the NASDAQ Global Market for the five trading
days ending immediately prior to such sale or offering (excluding any commissions paid in connection with such block sale or offering)
and (ii) for not less than 300,000 shares of Common Stock, in the case of each of clauses (i) and (ii), in a bid process effected
through an underwriter.

 

 

1
To be the number calculated pursuant to Section 2.02(a)(i) of the Merger Agreement.

 

     

     

    

 

(e) “BKC Investors”
has the meaning set forth in Section 15(a) of this Agreement.

 

(f) “BKC Registration
Rights Agreement” has the meaning set forth in Section 15(a) of this Agreement.

 

(g) “Board”
means the board of directors of the Company.

 

(h) “Business
Day” means any day except Saturday, Sunday or any days on which banks are generally not open for business in New York,
New York.

 

(i) “Carrols
MergerSub” has the meaning set forth in the preamble to this Agreement.

 

(j) “Class [__]
Director” means a director of the Board designated as a Class [__] director of the Board in accordance with the certificate
of incorporation of the Company or, in the event that the certificate of incorporation of the Company ceases to contemplate a classified
Board, a director of the Board.

 

(k) “Commission”
means the United States Securities and Exchange Commission.

 

(l) “Common
Stock” means the common stock, par value $.01 per share, of the Company and any shares of capital stock into which such
shares are reclassified or converted (including by merger or otherwise).

 

(m) “Company”
has the meaning set forth in the preamble to this Agreement.

 

(n) “Company
Indemnified Party” has the meaning set forth in Section 10(a) of this Agreement.

 

(o) “Conversion
Common Stock” means all shares of Common Stock issued or issuable to the Investor upon conversion of any shares of Preferred
Stock.

 

(p) “Demand
Registration” has the meaning set forth in Section 3(a) of this Agreement.

 

(q) “Director
Cessation Date” means the first date on which the aggregate number of shares of Investor Common Stock and shares of Conversion
Common Stock then held by the Investor and its Permitted Affiliates together constitutes less than ten percent (10%) of the aggregate
number of then-outstanding shares of Common Stock.

 

    2

     

    

 

(r) “Director
Step-Down Date” means the first date on which the aggregate number of shares of Investor Common Stock and shares of Conversion
Common Stock then held by the Investor and its Permitted Affiliates together constitutes less than fourteen point five percent
(14.5%) of the total number of then-outstanding shares of Common Stock.

 

(s) “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

(t) “Extraordinary
Transaction” means any merger, consolidation, business combination, tender or exchange offer, recapitalization,
reorganization, purchase or license of all or a material portion of the assets, properties or equity securities of, or other similar
extraordinary transaction involving, the Company or any of its Subsidiaries or any of their respective securities.

 

(u) “Governmental
Authority” means any domestic (including federal, state or local) or foreign government, any political subdivision thereof
or any court, administrative or regulatory agency, department, instrumentality, body or commission or other governmental authority
or agency.

 

(v) “Inspectors”
has the meaning set forth in Section 7(i) of this Agreement.

 

(w) “Initial
Investor Directors” has the meaning set forth in Section 14(a)(i) of this Agreement.

 

(x) “Investor”
has the meaning set forth in the preamble to this Agreement.

 

(y) “Investor
Common Stock” has the meaning set forth in the preamble to this Agreement.

 

(z) “Investor
Director” has the meaning set forth in Section 14(a)(i) of this Agreement.

 

(aa) “Investor
Indemnified Party” has the meaning set forth in Section 10(b) of this Agreement.

 

(bb) “Law”
or “Laws” means any statutes, rules, codes, regulations, ordinances or Orders of, or issued by, any Governmental
Authority.

 

(cc) “Management
Investors” has the meaning set forth in Section 15(a) of this Agreement.

 

(dd) “Management
Registration Rights Agreement” has the meaning set forth in Section 15(a) of this Agreement.

 

(ee) “Merger
Agreement” has the meaning set forth in the preamble to this Agreement.

 

    3

     

    

 

(ff) “NASDAQ”
has the meaning set forth in Section 14(a)(iii) of this Agreement.

 

(gg) “New CFH”
has the meaning set forth in the preamble to this Agreement.

 

(hh) “Order”
means any writ, decree, order, judgment, injunction, rule, ruling, or consent decree of or by a Governmental Authority.

 

(ii) “Parties”
means the Company and the Investor and “Party” means any one of them.

 

(jj) “Person”
means any individual, partnership, corporation, joint venture, limited liability company, Governmental Authority, unincorporated
organization, trust, association or other entity.

 

(kk) “Piggyback
Registration” has the meaning set forth in Section 4(a) of this Agreement.

 

(ll) “Preferred
Stock” has the meaning set forth in the preamble to this Agreement.

 

(mm) “Prospectus”
means the prospectus included in any Registration Statement, as amended or supplemented by any Prospectus supplement with respect
to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement, and all other
amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference in
such Prospectus.

 

(nn) “Qualifying
Approved Tender Offer” means a tender offer or exchange offer that has been at any time recommended by, or approved by,
the Board.

 

(oo) “Qualifying
Non-Approved Tender Offer” means a tender offer or exchange offer that (a) has not been recommended or has been recommended
against by the Board, (b) includes a majority minimum tender or approval condition, and, as of the tender date, all of the conditions
to closing of which (including the majority minimum tender or approval condition) have been satisfied or (other than with respect
to the majority minimum tender or approval condition) waived and (c) is expiring on the tender date (provided that, if such
tender or exchange offer is subsequently extended, such offer shall cease to be a “Qualifying Non-Approved Tender Offer”
until subsequently complying with the terms hereof).

 

(pp) “Records”
has the meaning set forth in Section 7(i) of this Agreement.

 

(qq) “Registrable
Securities” means, at any time, (i) all of the shares of Investor Common Stock, (ii) all shares of Conversion Common
Stock and (iii) any shares of Common Stock issued or issuable to the Investor with respect to Investor Common Stock and Conversion
Common Stock by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization. As to any particular Registrable Securities, such securities shall cease to be Registrable
Securities when (A) a Registration Statement covering such securities has been declared effective by the Commission and such securities
have been disposed of pursuant to such effective Registration Statement, (B) such securities may be sold under circumstances in
which all of the applicable conditions of Rule 144 under the Securities Act are met without volume limitations or other restrictions
on transfer thereunder, (C) such securities shall have ceased to be outstanding or (D) such securities are no longer owned by,
or issuable upon conversion to, the Investor or any of its Permitted Affiliates.

 

    4

     

    

 

(rr) “registered”
and “registration” means a registration effected pursuant to an effective Registration Statement under the Securities
Act.

 

(ss) “Registration
Statement” means any registration statement of the Company which covers any of the Registrable Securities pursuant to
the provisions of this Agreement, together with the Prospectus, any amendment and/or supplement to such Registration Statement
(including any post-effective amendment), all exhibits to such registration statement and all materials incorporated by reference
in such registration statement.

 

(tt) “Rule 144”
means Rule 144 promulgated under the Securities Act, or any successor or complementary rule thereto.

 

(uu) “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

(vv) “Selling
Expenses” means all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable
Securities, in each case, not customarily paid by the issuers of securities, and all expenses of the Investor’s legal counsel
in connection with such sale.

 

(ww) “Shelf
Offering” has the meaning set forth in Section 3(a) of this Agreement.

 

(xx) “Shelf
Period” has the meaning set forth in Section 2(b) of this Agreement.

 

(yy) “Shelf
Registration Statement” means a Registration Statement in connection with a Shelf Offering.

 

(zz) “Suspension
Period” has the meaning set forth in Section 7(h) of this Agreement.

 

(aaa) “Underwritten
Offering” has the meaning set forth in Section 3(a) of this Agreement.

 

2. S-3 Shelf Registration.

 

(a) Filing. At
any time after the second (2nd) anniversary of the Closing Date (as defined in the Merger Agreement), to the extent that the Company
is eligible to register the resale of shares on Form S-3 or any successor form thereto, upon the written request of the Investor,
the Company shall file, as promptly as practicable thereafter, with the Commission a Shelf Registration Statement on Form S-3 relating
to the offer and sale of an amount of Registrable Securities requested by the Investor; provided, however, that,
unless consented to by the Company, each such request must cover at least thirty percent (30%) of the Registrable Securities then
held by the Investor. The Company shall use its reasonable best efforts to cause such Shelf Registration Statement to be declared
effective under the Securities Act (unless it becomes effective automatically upon filing). The Company shall not be required to
effect more than one (1) Shelf Registration pursuant to this Section 2.

 

    5

     

    

 

(b) Continued Effectiveness.
Subject to the permitted Suspension Periods set forth in Section 7(h) hereof, the Company shall use its reasonable best
efforts to keep such Shelf Registration Statement (or a replacement Shelf Registration Statement) continuously effective under
the Securities Act in order to permit the Prospectus forming a part thereof to be usable by the Investor until the earlier of (i) the
date as of which all Registrable Securities covered by such Shelf Registration Statement have been sold and (ii) the date
as of which the Investor is permitted to sell its Registrable Securities without Registration pursuant to Rule 144 without
volume limitations or other restrictions on transfer thereunder (such period of effectiveness, the “Shelf Period”).

 

3. Demand Registration.

 

(a) Subject to the limitations
contained in this Section 3, at any time following the second (2nd) anniversary of the Closing Date (as defined in the Merger
Agreement), the Investor may, at any time and from time to time, request that the Company register for sale all or any of its Registrable
Securities under the Securities Act in connection with an Underwritten Offering by sending the Company a written request setting
forth such request and specifying the number of Registrable Securities required to be registered and the intended method of disposition
(any such registration being referred to herein as a “Demand Registration”); provided that the minimum
number of Registrable Securities to be registered on behalf of the Investor in any Demand Registration must be equal to at least
thirty-three and one-third percent (33.33%) of the Registrable Securities held by Investor (on an as-converted basis) on the date
hereof. For the avoidance of doubt, the Investor’s right to Demand Registration includes, without limitation, the right to
require registration of an underwritten public offering of Registrable Securities (an “Underwritten Offering”)
or the right to require the filing of a preliminary and final prospectus supplement to the extent that a Shelf Registration Statement
is then effective. However, the registration of shares of Common Stock pursuant to any continuous offering of Registrable Securities
pursuant to Rule 415 promulgated under the Securities Act (a “Shelf Offering”) shall be governed by Section
2 hereof.

 

(b) Subject to the limitations
contained in this Section 3, upon the receipt by the Company of a written request for a Demand Registration pursuant to
Section 3(a), the Company shall cause a Registration Statement on Form S-3 or any successor form thereto (or, if the Company
is not then eligible to register the resale of shares on Form S-3, on another appropriate form in accordance with the Securities
Act) to be filed within sixty (60) days after the date on which the initial request is given (provided, however,
that no filing of a Demand Registration shall be made earlier than the 24 month anniversary of the date of the closing of the Merger
Agreement) and shall use its reasonable best efforts to cause such Registration Statement to be declared effective by the Commission
as soon as practicable thereafter covering all of the Registrable Securities requested to be registered in the Demand Registration.
The Company shall not be required to effect more than three (3) Demand Registrations pursuant to this Section 3. Any registration
initiated as a Demand Registration pursuant to Section 3(a) shall not count as a Demand Registration unless and until the
Registration Statement with respect to such registration shall have become effective.

 

    6

     

    

 

(c) The Company shall
not be obligated to effect any Demand Registration within one-hundred eighty (180) days after the effective date of a previous
Demand Registration or a previous registration in which the Investor was given Piggyback Registration rights. The Company may postpone
the filing or effectiveness of a Registration Statement for a Demand Registration (i) for up to ninety (90) days if the Company,
in good faith, determines that such Demand Registration would reasonably be expected to result in an Adverse Disclosure or (ii)
for up to ninety (90) days, if the Company, in good faith, intends to conduct a primary offering of Common Stock within ninety
(90) days of the proposed Demand Registration; provided that in such event the Investor shall be entitled to withdraw such
request and, if such request is withdrawn, such Demand Registration shall not count as one of the permitted Demand Registrations
hereunder and the Company shall pay all registration expenses in connection with such registration.

 

(d) The Investor may
withdraw its Registrable Securities from a Demand Registration at any time prior to the effectiveness of the applicable Registration
Statement. Upon receipt of notice from the Investor to such effect, the Company shall cease all efforts to secure effectiveness
of the applicable Registration Statement and such registration shall nonetheless be deemed a Demand Registration hereunder unless
the withdrawal is made after a material adverse change to the Company or after notice of a postponement pursuant to Section
3(c).

 

(e) In the case of any
Demand Registration that relates to an Underwritten Offering, the Investor shall select the investment banking firms to act as
the managing underwriter or underwriters in connection with such Underwritten Offering, provided that such investment banking
firms shall be reasonably acceptable to the Company.

 

(f) If a Demand Registration
is initiated by the Investor as an Underwritten Offering, and the managing underwriter advises the Investor and the Company in
writing that, in its opinion, the number of shares of Common Stock proposed to be included in such registration, including all
Registrable Securities and all other shares of Common Stock proposed to be included in such Underwritten Offering, exceeds the
number of shares of Common Stock which can be sold in such offering or that the number of shares of Common Stock proposed to be
included in any such registration would adversely affect the marketability of such offering, the Company shall include in such
registration (i) first, the number of shares of Common Stock requested to be included therein by the Investor and the BKC Investors;
and (ii) second, the number of shares of Common Stock requested to be included therein by the holders of Common Stock (other than
the Investor and the BKC Investors), allocated among such holders in such manner as they may agree.

 

    7

     

    

 

4. Piggyback Registration.

 

(a) Whenever the Company
proposes to register any shares of its Common Stock under the Securities Act (other than (i) a registration effected solely to
implement an employee benefit plan or a transaction to which Rule 145 of the Securities Act is applicable, or (ii) a Registration
Statement on Form S-4, S-8 or any successor form thereto or another form not available for registering the Registrable Securities
for sale to the public), whether for its own account or for the account of one or more stockholders of the Company, the Company
shall give prompt written notice (in any event, no later than thirty (30) days prior to the filing of such Registration Statement)
to the Investor of its intention to effect such a registration and, subject to Section 4(b) and Section 4(c), shall
include in such registration all Registrable Securities requested to be included by the Investor within fifteen (15) days after
the date on which the Company’s notice is given (a “Piggyback Registration”). The Investor may withdraw
all or any part of its Registrable Securities from a Piggyback Registration at any time. For the avoidance of doubt, no registration
of Registrable Securities effected pursuant to a request under this Section 4 shall be deemed to have been effected pursuant
to Section 3 of this Agreement or shall relieve the Company of its obligations under Section 3. The Company may postpone
for up to one-hundred twenty (120) days the filing or effectiveness of a Piggyback Registration if the Company, in good faith,
determines that such Piggyback Registration would reasonably be expected to have a material adverse effect on any proposal or plan
by the Company or any of its Subsidiaries to engage in any acquisition of assets (other than in the ordinary course of business)
or any merger, consolidation, tender offer, reorganization or similar transaction.

 

(b) If a Piggyback Registration
is initiated as a primary underwritten offering on behalf of the Company and the managing underwriter advises the Company and the
Investor (if the Investor has elected to include Registrable Securities in such Piggyback Registration) in writing that in its
opinion the number of shares of Common Stock proposed to be included in such registration, including all Registrable Securities
and all other shares of Common Stock proposed to be included in such underwritten offering, exceeds the number of shares of Common
Stock which can be sold in such offering and/or that the number of shares of Common Stock proposed to be included in any such registration
would adversely affect the marketability of such offering, the Company shall include in such registration (i) first, the number
of shares of Common Stock that the Company proposes to sell; (ii) second, the number of shares of Common Stock requested to be
included by any stockholder having registration rights with priority over the registration rights of the Investor; (iii) third,
the number of shares of Common Stock requested to be included therein by the Investor and the BKC Investors; and (iv) fourth, the
number of shares of Common Stock requested to be included therein by holders of Common Stock (other than the Investor, the BKC
Investors and the Management Investors), allocated among such holders in such manner as they may agree.

 

(c) If any Piggyback
Registration is initiated as a primary underwritten offering on behalf of the Company, the Company shall select the investment
banking firm or firms to act as the managing underwriter or underwriters in connection with such offering.

 

(d) If a Piggyback Registration
is initiated as an underwritten offering on behalf of a holder of Common Stock other than the Investor, and the managing underwriter
advises the Company in writing that in its opinion the number of shares of Common Stock proposed to be included in such registration,
including all Registrable Securities and all other shares of Common Stock proposed to be included in such underwritten offering,
exceeds the number of shares of Common Stock which can be sold in such offering and/or that the number of shares of Common Stock
proposed to be included in any such registration would adversely affect the marketability of such offering, the Company shall include
in such registration (i) first, the number of shares of Common Stock requested to be included by any stockholder having registration
rights with priority over the registration rights of the Investor; (ii) second, the number of shares of Common Stock requested
to be included therein by the Investor and the BKC Investors; and (iii) third, the number of shares of Common Stock requested to
be included therein by holders of Common Stock (other than the Investor, the BKC Investors and the Management Investors), allocated
among such holders in such manner as they may agree.

 

    8

     

    

 

5. Block Trades.

 

(a) To the extent that
a Shelf Registration Statement is effective, the Investor shall have the right to request that the Company file a prospectus supplement
in connection with an Approved Block Trade, and the filing of such prospectus supplement shall not count as a Demand Registration.
The Investor and the Company shall equally split the fees of the Company’s independent public accountants and printing expenses
associated with the preparation and distribution of the requested prospectuses and prospectus supplements associated with up to
two (2) Approved Block Trades. The Investor shall pay all other costs and expenses associated with an Approved Block Trade, including
all of its costs and expenses associated with such sales (including attorneys’ fees of the Investor and applicable stock
transfer taxes and underwriting discounts and commissions); provided, however, that the Company shall pay the fees
and expenses of its attorneys in connection with such Approved Block Trades. With respect to any additional Approved Block Trades
in excess of such initial two (2), the Investor shall be responsible for all associated costs.

 

(b) In connection with
an Approved Block Trade, to the extent required by the relevant underwriters, the Company shall obtain so-called “comfort
letters” from the Company’s independent public accountants, and legal opinions of counsel to the Company addressed
to the underwriters and the Commission, in customary form and covering such matters as are customarily covered by such letters
and opinions and shall enter into such other agreements, including underwriting agreements in customary form. Delivery of any such
opinions or comfort letters shall be subject to the recipient furnishing such written representations or acknowledgements as are
customarily provided by underwriters who receive such comfort letters or opinions. In connection with an Approved Block Trade,
the Company shall make available for inspection by (i) one authorized representative of the Investor, (ii) any underwriter
participating in an Approved Block Trade and (iii) each of their respective representatives, all financial and other information
as shall be reasonably requested by them, and provide such Persons the opportunity to discuss the business affairs of the Company
with its principal executives and independent public accountants who have certified the audited financial statements included in
the Registration Statement, in each case, as necessary to enable them to exercise their due diligence responsibility under the
Securities Act; provided, however, that the information that the Company determines, in good faith, to be confidential
shall not be disclosed unless such Person signs a confidentiality agreement reasonably satisfactory to the Company. In addition,
the Company shall take such other actions as are reasonably required and customary in order to expedite or facilitate an Approved
Block Trade.

 

    9

     

    

 

6. Lock-up Agreements.

 

(a) The Investor agrees
that, in connection with any underwritten public offering of the Company’s Common Stock, and upon the request of the managing
underwriter in such offering, the Investor shall enter into such customary lock-up agreements as may be requested by the managing
underwriter, pursuant to which the Investor shall agree not to, directly or indirectly, (i) offer, sell, offer to sell, contract
to sell, hedge, pledge, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right
or warrant to purchase or sell (or announce any offer, sale, offer of sale, contract of sale, hedge, pledge, sale of any option
or contract to purchase, purchase of any option or contract of sale, grant of any option, right or warrant to purchase or other
sale or disposition), or otherwise transfer or dispose of (or enter into any transaction that is designed to, or could reasonably
be expected to, result in the disposition by any Person at any time in the future of), any shares of Investor Common Stock or Conversion
Common Stock or any securities convertible into, exercisable for or exchangeable for shares of Investor Common Stock or Conversion
Common Stock beneficially owned by it within the meaning of the Exchange Act or (ii) enter into any swap or other agreement or
any transaction that transfers, in whole or in part, directly or indirectly, the economic benefit of ownership and/or beneficial
ownership of such securities, whether any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery
of any shares of Investor Common Stock, Conversion Common Stock or such other securities, in cash or otherwise, subject to customary
exceptions, and provided that the period of any such lock-up shall not exceed the lesser of (x) the shortest lock-up period to
which any executive officer or director is subjected and (y) one-hundred eighty (180) days. The Investor agrees to execute and
deliver such other customary agreements as may be requested by the Company or the managing underwriter which are consistent with
the foregoing or which are necessary to give further effect thereto.

 

(b) Notwithstanding anything
to the contrary contained in this Agreement,

 

(i) the provisions
of this Section 6 shall not apply to sales of Registrable Securities to be included in an underwritten offering pursuant
to Section 4(a);

 

(ii) the provisions
of this Section 6 shall not apply to the Investor unless all directors and executive officers of the Company are subject
to the same restrictions; and

 

(iii) in the event
that the managing underwriter or the Company permit any discretionary waiver or termination of the restrictions of any lock-up
agreement pertaining to any officer, director or holder of greater than five percent (5%) of the outstanding Common Stock, the
Investor shall be released from any lock-up agreement entered into pursuant to this Section 6 to the same extent as such
officer, director or holder.

 

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(c) In the case of a
registration of Registrable Securities pursuant to Section 3 for an Underwritten Offering, the Company agrees, if requested
by the managing underwriter or underwriters, to enter into such customary lock-up agreements as may be requested by the managing
underwriter, pursuant to which the Company shall agree to not (i) offer, pledge, sell, contract to sell, grant any option or contract
to purchase, purchase any option or contract to sell, hedge the beneficial ownership of or otherwise dispose of, directly or indirectly,
any shares of Common Stock or any securities convertible into, exercisable for or exchangeable for shares of Common Stock, or (ii)
enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
and/or beneficial ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled
by delivery of Common Stock or such other securities, in cash or otherwise, subject to customary exceptions (including the ability
to sell shares of common stock pursuant to Form S-4 or Form S-8, pursuant to any employee benefit plan then in effect or pursuant
to any other contractual obligations that that the Company may then have), and provided that the period of any such lock-up shall
not exceed the lesser of (x) the shortest lock-up period to which the Investor is subjected and (y) one-hundred eighty (180) days.
The Company agrees to execute and deliver such other agreements as may be reasonably requested by the managing underwriter which
are consistent with the foregoing or which are necessary to give further effect thereto. Without limiting the foregoing, if, after
the date hereof, the Company grants any Person (other than the Investor) any rights to demand or participate in a registration,
the Company agrees that the agreement with respect thereto shall include such Person’s agreement to comply with any black-out
period required by this Section 6(c) as if it were the Company hereunder.

 

7. Registration
Procedures. If and whenever the Investor requests that any Registrable Securities be registered pursuant to the provisions
of this Agreement, the Company shall use its reasonable best efforts to effect the registration and the sale of such Registrable
Securities in accordance with the intended method of disposition thereof, and, pursuant thereto, the Company shall as soon as practicable:

 

(a) subject to Section
3(c), prepare and file with the Commission a Registration Statement with respect to such Registrable Securities and use its
reasonable best efforts to cause such Registration Statement to become effective as soon as practicable;

 

(b) prepare and file
with the Commission such amendments, post-effective amendments and supplements to such Registration Statement and the Prospectus
used in connection therewith as may be necessary to keep such Registration Statement effective for a period of not less than one-hundred
eighty (180) days (or for the Shelf Period, in the case of a Shelf Registration), or, if earlier, until all of such Registrable
Securities have been disposed of, and to comply with the provisions of the Securities Act with respect to the disposition of such
Registrable Securities in accordance with the intended methods of disposition set forth in such Registration Statement;

 

(c) at least five (5)
Business Days before filing such Registration Statement, Prospectus or amendments or supplements thereto, furnish to counsel for
the Investor copies of such documents proposed to be filed, which documents shall be subject to the review, comment and approval
of such counsel within three (3) Business Days after receipt thereof, with respect to only those sections of the Registration Statement
containing information about or provided in writing by or on behalf of the Investor, including, without limitation, the Selling
Securityholder section and the Plan of Distribution section (and the Company shall not file any such document to which the Investor
reasonably objects);

 

    11

     

    

 

(d) notify the Investor,
promptly after the Company receives notice thereof, of the time when such Registration Statement has been declared effective or
a supplement to any Prospectus forming a part of such Registration Statement has been filed;

 

(e) furnish to the Investor
such number of copies of the Prospectus included in such Registration Statement (including each preliminary Prospectus) and any
supplement thereto (in each case including all exhibits and documents incorporated by reference therein) and such other documents
as the Investor may request in order to facilitate the disposition of the Registrable Securities;

 

(f) use its reasonable
best efforts to register or qualify such Registrable Securities under such other securities or “blue sky” Laws of such
jurisdictions as the Investor requests and do any and all other acts and things which may be necessary or advisable to enable the
Investor to consummate the disposition of Registrable Securities in such jurisdictions; provided that the Company shall
not be required to qualify generally to do business, subject itself to general taxation or consent to general service of process
in any jurisdiction where it would not otherwise be required to do so but for this Section 7(f);

 

(g) notify the Investor,
at any time when a Prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event
as a result of which the Prospectus included in such Registration Statement contains an untrue statement of a material fact or
omits any fact necessary to make the statements therein not misleading, and, at the request of the Investor, the Company shall
prepare a supplement or amendment to such Prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities,
such Prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements
therein not misleading;

 

(h) notify the Investor,
with at least two (2) days’ prior written notice, at any time when the continued use of a Registration Statement filed would
require the Company to make an Adverse Disclosure and, as a result, the Company needs to suspend the use of the Registration Statement
(each, a “Suspension Period”); provided, however, (i) no Suspension Period shall exceed ninety
(90) days, (ii) the Company shall not be permitted to have more than two Suspension Periods in any twelve-month period and (iii)
the aggregate amount of all Suspension Periods in any twenty-four month period shall not exceed one-hundred eighty (180) days.
In the case of a suspension, the Investor agrees, promptly upon receipt of the notice, to suspend use of the applicable Prospectus
in connection with any sale or purchase of, or offer to sell or purchase, Registrable Securities. The Company shall immediately
notify the Investor upon the termination of any suspension, amend or supplement the Prospectus, if necessary, so it does not contain
any untrue statement or omission and furnish to the Investor such numbers of copies of the Prospectus as so amended or supplemented
as the Investor may reasonably request. The Company agrees, if necessary, to promptly supplement or make amendments to the Registration
Statement, if required by the registration form used by the Company for the Registration or by the instructions applicable to such
registration form or by the Securities Act or the rules or regulations promulgated thereunder or as may reasonably be requested
by the Investor;

 

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(i) make available for
inspection by the Investor, any underwriter participating in any disposition pursuant to such Registration Statement and any attorney,
accountant or other agent or representative of the Investor or such underwriter (collectively, the “Inspectors”),
all financial and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”),
and cause the Company’s officers, directors and employees to supply all information requested by any such Inspector in connection
with such Registration Statement;

 

(j) provide a transfer
agent and registrar (which may be the same entity) for all such Registrable Securities not later than the effective date of such
registration;

 

(k) use its reasonable
best efforts to cause such Registrable Securities to be listed on each securities exchange on which the Common Stock is then listed;

 

(l) in connection with
an underwritten offering, take all such customary actions as the managing underwriter of such offering requests in order to expedite
or facilitate the disposition of such Registrable Securities (including, without limitation, making appropriate officers of the
Company available to participate in “road show” and other customary marketing activities (including one-on-one meetings
with prospective purchasers of the Registrable Securities));

 

(m) otherwise use its
reasonable best efforts to comply with all applicable rules and regulations of the Commission and make available to its stockholders
an earnings statement (in a form that satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder)
no later than ninety (90) days after the end of the twelve-month period beginning with the first day of the Company’s first
full fiscal quarter after the effective date of such Registration Statement, which earnings statement shall cover said twelve-month
period, and which requirement will be deemed to be satisfied if the Company timely files complete and accurate information on Forms
10-Q, 10-K and 8-K under the Exchange Act and otherwise complies with Rule 158 under the Securities Act;

 

(n) furnish each underwriter,
if any, with (i) a legal opinion of the Company’s outside counsel, dated the effective date of such Registration Statement
(and, if such registration includes an Underwritten Offering, dated the date of the closing under the underwriting agreement),
in form and substance as is customarily given in opinions of a registrant’s counsel to underwriters in underwritten public
offerings; and (ii) a “comfort” letter signed by the Company’s independent certified public accountants, in form
and substance as is customarily given in accountants’ letters to underwriters in Underwritten Offerings;

 

(o) without limiting
Section 7(f) above, use its reasonable best efforts to cause such Registrable Securities to be registered with or approved
by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company
to enable the Investor to consummate the disposition of such Registrable Securities in accordance with its intended method of distribution
thereof;

 

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(p) notify the Investor
promptly of any request by the Commission for the amending or supplementing of such Registration Statement or Prospectus or for
additional information (and provide copies of the relevant documents to the Investor);

 

(q) advise the Investor,
promptly after it shall receive notice or obtain knowledge thereof, of (i) the issuance of any stop order by the Commission suspending
the effectiveness of such Registration Statement or the initiation or threatening of any proceeding for such purpose and promptly
use its best efforts to prevent the issuance of any stop order or to obtain its withdrawal at the earliest possible moment if such
stop order should be issued, (ii) any written comments by the Commission or any request by the Commission or any other federal
or state governmental authority for amendments or supplements to such Registration Statement or such Prospectus or for additional
information (and provide copies of the relevant documents to the Investor) and (iii) the receipt by the Company of any notification
with respect to the suspension of the qualification of the Registrable Securities for offering or sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose;

 

(r) cooperate with the
Investor and the managing underwriter or agent, if any, to facilitate the timely preparation and delivery of certificates (not
bearing any restrictive legends) representing securities to be sold under the registration statement and enable such securities
to be in such denominations and registered in such names as the managing underwriter, or agent, if any, or such Investor may request;
and

 

(s) otherwise use its
reasonable best efforts to take all other steps necessary to effect the registration of such Registrable Securities contemplated
hereby.

 

8. Deemed Underwriter.
If any Registration Statement refers to the Investor by name or otherwise as the holder of any securities of the Company and if,
in its sole and exclusive judgment, the Investor is or might be deemed to be an underwriter or a controlling Person of the Company,
the Investor shall have the right to require (i) the insertion therein of language, in form and substance reasonably satisfactory
to the Investor and presented to the Company in writing, to the effect that the holding by the Investor of such securities is not
to be construed as a recommendation by the Investor of the investment quality of the Company’s securities covered thereby
and that such holding does not imply that the Investor shall assist in meeting any future financial requirements of the Company,
or (ii) in the event that such reference to the Investor by name or otherwise is not required by the Securities Act or any similar
federal statute then in force, the deletion of the reference to the Investor. In no event shall the Investor be named as an underwriter
in any Registration Statement without its prior written consent; provided, however, that if the failure to provide
such consent requires, in the reasonable opinion of counsel to the Company, the withdrawal of the Investor’s Registrable
Securities from a Demand Registration, then such Registrable Securities shall be so withdrawn, the Company shall cease all efforts
to secure effectiveness of such Registration Statement if the Registrable Securities are the only securities covered by such Registration
Statement and such Registration Statement shall nonetheless be deemed a Demand Registration hereunder.

 

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9. Expenses.
Except as set forth in Section 5, all expenses (other than Selling Expenses) incurred by the Company in complying with its
obligations pursuant to this Agreement and in connection with the registration and disposition of Registrable Securities, including,
without limitation, all registration and filing fees, underwriting expenses (other than fees, commissions or discounts), expenses
of any audits incident to or required by any such registration, and fees and expenses of complying with securities and “blue
sky” Laws, printing expenses, fees and expenses of the Company’s counsel and accountants shall be paid by the Company.
All Selling Expenses relating to Registrable Securities registered pursuant to this Agreement shall be paid by the Investor. The
Company shall pay the reasonable fees and expenses of one counsel for the Investor up to $50,000 in the aggregate for any registration
hereunder, subject to the limitations set forth herein.

 

10. Indemnification.

 

(a) Indemnification
by the Company. In connection with any registration effected under this Agreement, the Company shall indemnify the Investor,
each underwriter (if any) of the securities so registered, each of their respective officers, directors, managers, members, partners,
stockholders and Affiliates, and each Person who controls any of the foregoing within the meaning of the Securities Act (each,
a “Company Indemnified Party”) against any and all claims, losses, damages and liabilities (or actions in respect
thereof) arising out of or based on any untrue statement (or alleged untrue statement) of any material fact contained in any Prospectus,
offering circular or other document incident to any registration, qualification or compliance (or in any related Registration Statement,
notification or the like) or any omission (or alleged omission) to state therein any material fact required to be stated therein
or necessary to make the statements therein not misleading, or any violation by the Company of any rule or regulation promulgated
under the Securities Act applicable to the Company and relating to any action or inaction required of the Company in connection
with any such registration, qualification or compliance, and the Company will promptly reimburse each of the Company Indemnified
Parties for any reasonable legal and any other expenses reasonably incurred by them in connection with investigating or defending
any such claim, loss, damage, liability or action, whether or not otherwise resulting in liability; provided, however,
that the Company will not be liable in any such case to the extent that any such claim, loss, damage or liability arises out of
or is based on any untrue statement or omission based upon written information furnished to the Company by such Company Indemnified
Party or its counsel or representative and specifically for use in such Prospectus, offering circular or other document (or related
Registration Statement, notification or the like).

 

(b) Indemnification
by the Investor. In connection with any registration effected under this Agreement, the Investor shall indemnify each underwriter
(if any) of the securities so registered, the Company, each of their respective officers, directors, managers, members, partners,
stockholders and Affiliates, and each Person who controls any of the foregoing within the meaning of the Securities Act (each,
an “Investor Indemnified Party”) against any and all claims, losses, damages and liabilities (or actions in
respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of any material fact contained in
any Prospectus, offering circular or other document incident to any registration, qualification or compliance (or in any related
Registration Statement, notification or the like) or any omission (or alleged omission) to state therein any material fact required
to be stated therein or necessary to make the statement therein not misleading, and the Investor will promptly reimburse each Investor
Indemnified Party for any reasonable legal and any other expenses reasonably incurred in connection with investigating or defending
any such claim, loss, damage, liability or action, whether or not otherwise resulting in liability; provided, however,
that this Section 10(b) shall apply only if (and only to the extent that) such statement or omission was made in reliance
upon written information furnished to such underwriter or the Company by the Investor or its counsel or representative specifically
for use in such Prospectus, offering circular or other document (or related Registration Statement, notification or the like);
and provided further that the Investor’s liability hereunder with respect to any particular registration shall be
limited to an amount equal to the net proceeds (after deducting underwriting fees, commissions or discounts) received by the Investor
from the Registrable Securities sold by it in such registration.

 

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(c) Indemnification
Proceedings. Promptly after receipt by an indemnified party of notice of the commencement of any action involving a claim referred
to in this Section 10, such indemnified party shall, if a claim in respect thereof is made against an indemnifying party,
give written notice to the latter of the commencement of such action. The failure of any indemnified party to notify an indemnifying
party of any such action shall not (except to the extent such failure shall have prejudiced the indemnifying party) relieve the
indemnifying party from any liability in respect of such action that it may have to such indemnified party hereunder. In case any
such action is brought against an indemnified party, the indemnifying party shall be entitled to participate in and to assume the
defense of the claims in any such action that are subject or potentially subject to indemnification hereunder, jointly with any
other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified
party and, after written notice from the indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred by the indemnified
party in connection with the defense thereof; provided that, if (i) any indemnified party shall have reasonably concluded
that there may be one or more legal or equitable defenses available to such indemnified party which are additional to or conflict
with those available to the indemnifying party, or that such claim or litigation involves or could have an effect upon matters
beyond the scope of the indemnity provided hereunder, or (ii) such action seeks an injunction or equitable relief against any indemnified
party or involves actual or alleged criminal activity, the indemnifying party shall not have the right to assume the defense of
such action on behalf of such indemnified party without such indemnified party’s prior written consent (but, without such
consent, shall have the right to participate therein with counsel of its choice) and such indemnifying party shall reimburse such
indemnified party and any Person controlling such indemnified party for that portion of the fees and expenses of any counsel retained
by the indemnified party which is reasonably related to the matters covered by the indemnity provided hereunder. If the indemnifying
party is not entitled to, or elects not to, assume the defense of a claim, it shall not be obligated to pay the fees and expenses
of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim.

 

(d) Contribution in
Lieu of Indemnification. If the indemnification provided for hereunder is held by a court of competent jurisdiction to be unavailable
to an indemnified party with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying
party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified
party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative
fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or
omissions which resulted in such loss, claim, damage, liability or action as well as any other relevant equitable considerations;
provided that the maximum amount of liability in respect of such contribution shall be limited, in the case of the Investor,
to an amount equal to the net proceeds (after deducting underwriting fees, commissions or discounts) actually received by the Investor
from the sale of Registrable Securities effected pursuant to such registration. The relative fault of the indemnifying party and
of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying
party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission. The Parties agree that it would not be just and equitable if contribution pursuant hereto
were determined by pro rata allocation or by any other method or allocation which does not take account of the equitable considerations
referred to herein. No Person guilty or liable of fraudulent misrepresentation shall be entitled to contribution from any Person.

 

    16

     

    

 

11. Participation
in Underwritten Registrations. No Person may participate in any registration hereunder which relates to an Underwritten Offering
unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved
by the Person or Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers
of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements;
provided that in no event shall the Investor be required to make any representations or warranties to the Company or the
underwriters (other than representations and warranties regarding the Investor, the Investor’s ownership of its shares of
Common Stock to be sold in the offering, the Investor’s intended method of distribution and other customary representations
and warranties of selling stockholders) or to undertake any indemnification obligations to the Company or the underwriters with
respect thereto, except as is customary for selling stockholders in Underwritten Offerings and as otherwise provided in Section
10. In the case of an Underwritten Offering pursuant to Section 3 above, the price, underwriting discount and other
financial terms for the Registrable Securities shall be determined by the Investor. In addition, in the case of any Underwritten
Offering, each of the Holders may withdraw their request to participate in the registration pursuant to Section 3 or Section
4 after being advised of such price, underwriting discount and other financial terms and shall not be required to enter into
any agreements or documentation that would require otherwise.

 

12. Rule 144.
The Company shall make publicly available and available to the Investor such information as shall be necessary to enable the Investor
to make sales of Registrable Securities pursuant to Rule 144 of the Securities Act. The Company shall cause any restrictive legends
and/or stop-transfer orders to be removed or lifted with respect to any Registrable Securities promptly following receipt by the
Company from the Investor of a certificate certifying: (i) that the Investor has held such Registrable Securities for the applicable
holding period under Rule 144, (ii) that the Investor has not been an affiliate (as defined in Rule 144) of the Company during
the ninety (90) days preceding and has complied with all of the requirements of Rule 144 in connection with any such sale of shares
and (iii) as to such other matters relating to Rule 144 as the Company or counsel to the Company may request and may be appropriate
in accordance with such Rule.

 

    17

     

    

 

13. Transfer Restrictions.

 

(a) During the period
beginning on the date hereof and ending on the second (2nd) anniversary hereof, without the approval of a majority of the directors
of the Company other than the Investor Directors, the Investor:

 

(i) shall not, directly
or indirectly, (A) sell, hedge, pledge, sell any option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase or sell, or otherwise transfer or dispose of (or enter into any transaction that is designed
to, or would reasonably be expected to, result in the disposition by any Person at any time in the future of), any shares of Preferred
Stock, Investor Common Stock or Conversion Common Stock, or any securities convertible into or exercisable or exchangeable for
any shares of Preferred Stock, Investor Common Stock or Conversion Common Stock, beneficially owned (as defined under Rule 13d-3
promulgated under the Exchange Act) by the Investor or (B) enter into any swap or other agreement or any transaction that transfers,
in whole or in part, directly or indirectly, the economic benefit of ownership and/or beneficial ownership of any shares of Preferred
Stock, Investor Common Stock or Conversion Common Stock, whether or not any such swap or transaction described in clause (A) or
(B) above is to be settled by delivery of any Preferred Stock, Investor Common Stock or Conversion Common Stock or such other securities,
in cash or otherwise (each, a “Transfer”);

 

(ii) authorizes the
Company to place a legend on any shares of Preferred Stock, Investor Common Stock and Conversion Common Stock in substantially
the following form:

 

THE SECURITIES REPRESENTED
HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  SUCH SHARES MAY NOT
BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF SAID ACT.

 

THE SECURITIES REPRESENTED
HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF
WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY;

 

(iii) authorizes the
Company to cause any transfer agent (as applicable) to decline to transfer and/or to note stop transfer restrictions on the transfer
books and records of the Company with respect to any shares of Preferred Stock, Investor Common Stock or Conversion Common Stock
and any securities convertible into or exercisable or exchangeable for any shares of Preferred Stock, Investor Common Stock or
Conversion Common Stock for which the undersigned is the record holder and, in the case of any such shares or securities for which
the undersigned is the beneficial owner, but not the record holder, agrees to cause the record holder to cause the transfer agent
to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such shares or securities.

 

    18

     

    

 

(b) Notwithstanding anything
herein to the contrary, Section 13(a)(i) and Section 13(a)(iii) shall not prohibit or otherwise apply to (i) any
Transfer of or with respect to a number of shares of Investor Common Stock or Conversion Common Stock yielding gross proceeds that,
together with all such previous or simultaneous Transfers, do not exceed $6,000,000 in the aggregate, (ii) any Transfer to an Affiliate
of the Investor set forth on Schedule A (a “Permitted Affiliate”); provided that, as a condition
to such Transfer, such Permitted Affiliate shall execute and deliver to the Company a joinder to this Agreement substantially in
the form attached hereto as Exhibit B, (iii) any Transfer pursuant to (A) a Qualifying Approved Tender Offer initiated and
commenced by any Person or (B) a Qualifying Non-Approved Tender Offer initiated and commenced by any Person other than the Investor
or any of its Affiliates or (iv) any Transfer pursuant to any Extraordinary Transaction or similar business combination transaction
that has been recommended or approved by a majority of the Board.

 

14. Board of Directors.

 

(a) From and after the
date hereof and until the provisions of this Section 14(a) cease to be effective pursuant to this Section 14(a) of
this Agreement, the Company and the Board and each applicable committee or subcommittee thereof shall take all necessary or desirable
actions within their respective control (including, without limitation, and as applicable, calling special Board and stockholder
meetings, recommending to the Board and any applicable committee thereof and to the stockholders of the Company the election and
re-election of each Investor Director, ensuring sufficient vacancies on the Board for the Investor Directors, and including each
Investor Director as a nominee for director in the Company’s proxy materials and form of proxy and soliciting proxies from
stockholders in favor of the election and re-election of each Investor Director in a manner no less rigorous and favorable than
the manner in which the Company supports its other nominees) so that:

 

(i) until the Director
Step-Down Date, two individuals designated by the Investor (each, an “Investor Director”) are elected and appointed
by the Board and are nominated by the Board for election or re-election, as applicable, by the stockholders of the Company at each
annual or special meeting of the stockholders at which Class [__] Directors are subject to election or re-election, as applicable,
in each case, as Class [__] Directors, and it is hereby acknowledged that the initial Investor Directors shall be Matthew Perelman
and Alex Sloane (the “Initial Investor Directors”). On the Director Step-Down Date, if two Investor Directors
are then serving as Class [__] Directors, the Investor shall cause and take all necessary action within its control to cause one
Investor Director to submit his or her resignation as a Class [__] Director to the Board in substantially the form set forth as
Exhibit A hereto;

 

(ii) from the Director
Step-Down Date until the Director Cessation Date, one Investor Director is elected and appointed by the Board and nominated by
the Board for election or re-election, as applicable, by the stockholders of the Company at each annual or special meeting of the
stockholders at which Class [__] Directors are subject to election or re-election, as applicable, in each case, as a Class [__]
Director. On the Director Cessation Date, the Investor shall cause and take all necessary action within its control to cause all
Investor Directors to submit their resignation(s) as Class [__] Directors to the Board in substantially the form set forth as Exhibit
A hereto; and

 

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(iii) until the Director
Cessation Date, in the event that any Initial Investor Director ceases to serve as a Class [__] Director (other than as a result
of his or her resignation pursuant to Section 14(a)(i)), the resulting vacancy on the Board shall promptly be filled by
a representative designated by the Investor who shall satisfy the requirements to serve as a director under the rules and regulations
of the NASDAQ Stock Market LLC (“NASDAQ”) and under the Securities Act and the Exchange Act and under the written
policies of the Corporate Governance and Nominating Committee of the Board. For the avoidance of doubt, the Investor shall not
be required to comply with the advance notice provisions generally applicable to the nomination of directors by the Company so
long as the Investor, in the event any Initial Investor Director ceases to serve as a Class [__] Director, provides reasonable
advance notice to the Company of the individual designated by the Investor prior to the mailing of the proxy statement by the Company.

 

(b) Until the Director
Cessation Date, if the Investor fails to designate a representative to fill a directorship pursuant to the terms of this Section
14, such directorship shall remain vacant until the Investor exercises its right to designate a director hereunder until such
time as such right to designate a director ceases to be in effect as provided in Section 14(a) of this Agreement.

 

(c) Until the Director
Cessation Date, the Board and the Company shall take all necessary or desirable action within their control to ensure that, unless
otherwise consented to by the Investor, the number of Investor Directors serving on each committee of the Board at any time is,
to the extent possible, proportional to the number of Investor Directors serving on the Board at such time and, in any event, that
at least one Investor Director serves on each of the Compensation Committee of the Board, the Finance Committee of the Board and
the Nominating and Corporate Governance Committee of the Board at all times, provided that an Investor Director satisfies the requirements
to serve on such committee under the rules and regulations of NASDAQ and under the Securities Act and the Exchange Act. Notwithstanding
the foregoing, in the event an Investor Director ceases to meet the requirements to serve on the Compensation Committee of the
Board, the Finance Committee of the Board or the Nominating and Corporate Governance Committee of the Board, as applicable, pursuant
to the rules and regulations of NASDAQ or under the Securities Act and the Exchange Act, the Board may remove such Investor Director
from such committee(s); provided that, in the event such Investor Director is so removed, the Board shall appoint another
Investor Director to such committee(s) in accordance with this Section 14(c).

 

(d) Each Investor Director,
in his or her capacity as a director, shall be afforded the same rights and privileges as other members of the Board, including,
without limitation, with respect to indemnification, insurance, notice, information and the reimbursement of expenses, but excluding
equity grants or any other grants made by the Company to non-employee members of the Board from time to time pursuant the Company’s
2016 Equity Incentive Plan or any other equity incentive plan of the Company then in effect. For the avoidance of doubt, nothing
in this Section 14(d) is intended to limit such Investor Director’s rights or privileges.

 

    20

     

    

 

(e) Until the Director
Cessation Date, at each annual or special meeting of the stockholders at which any Person is subject to election or re-election
as a member of the Board, Investor will cause to be present for quorum purposes all shares of Investor Common Stock and Conversion
Common Stock that Investor and its Permitted Affiliates have the right to vote as of the record date for such meeting of the stockholders,
and vote or cause to be voted all such shares of Investor Common Stock and Conversion Common Stock on the Company’s proxy
card (or in person if any such holder of such shares is present in person at the meeting) in favor of the election of all of the
director nominees recommended for election by the Board, and against the removal of any such director (unless proposed by the Company).

 

15. Miscellaneous.

 

(a) Preservation of
Rights. The Company is currently a party to the Registration Rights Agreement, as amended (the “BKC Registration Rights
Agreement”), dated as of May 30, 2012, by and between the Company and Burger King Corporation (together with its permitted
assigns, the “BKC Investors”) and the Registration Rights Agreement, as amended (the “Management Registration
Rights Agreement”), dated as of March 27, 1997, by and among the Company, Atlantic Restaurants, Inc., Madison Dearborn
Capital Partners, L.P., Madison Dearborn Capital Partners II, L.P., BIB Holdings (Bermuda) Ltd, Alan Vituli, Daniel T. Accordino
and Joseph A. Zirkman (Messrs. Vituli, Accordino and Zirkman are collectively referred to as the “Management Investors”).
Under the BKC Registration Rights Agreement, the Company is permitted to grant registration rights to other Persons so long as
such registration rights to third parties are not more favorable than or inconsistent with and do not subordinate or violate the
rights expressly granted to the BKC Investors under the BKC Registration Rights Agreement. Under the Management Registration Rights
Agreement, the Company is permitted to grant rights to other Persons to participate in Piggyback Registrations so long as such
rights are subordinate to the rights of the Management Investors with respect to such Piggyback Registrations. The Company shall
not (i) grant any registration rights to third parties which are more favorable than or inconsistent with the rights granted hereunder
or the registration rights agreements referred to in this Section 15(a), or (ii) enter into any agreement, take any action,
or permit any change to occur, with respect to its securities that violates or subordinates the rights expressly granted to the
Investor in this Agreement or to the BKC Investors or the Management Investors in the registration rights agreements referred to
in this Section 15(a).

 

(b) Termination. Sections
2, 3, 4, 5, 6, 7, 8, 11 and 12 of this Agreement shall terminate and
be of no further force or effect when there shall no longer be any Registrable Securities outstanding; provided that the
provisions of Section 9 and Section 10 shall survive any such termination.

 

    21

     

    

 

(c) Notices. All
notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be deemed given
and effective (i) three (3) Business Days after being sent by registered or certified mail, return receipt requested, postage prepaid,
(ii) one (1) Business Day after being sent for next Business Day delivery, fees prepaid, via a reputable nationwide overnight courier
service, (iii) immediately upon delivery by hand on a Business Day during regular business hours, (iv) upon transmission, if sent
via email prior to 5:00 p.m. New York time on a Business Day (with a copy sent on the same Business Day for next Business Day delivery,
fees prepaid, via a reputable nationwide overnight courier service) or (v) the Business Day following transmission, if sent via
email at or after 5:00 p.m. New York time on a Business Day (with a copy sent on the same Business Day for next Business Day delivery,
fees prepaid, via a reputable nationwide overnight courier service), in each case, to the parties at the following addresses (or
at such other address for a Party as shall be specified by like notice):

 

		(i)	if to the Company, to:

 

Carrols Restaurant Group, Inc.

968 James St.

Syracuse, NY 13203

Attention: William E. Myers; VP & General Counsel

Email: wmyers@carrols.com

 

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

 

Akerman LLP

666 5th Avenue, 20th Floor

New York, NY 10103

Attention: Wayne Wald; Palash Pandya

Email: wayne.wald@akerman.com; palash.pandya@akerman.com

 

		(ii)	if to the Investor, to

 

Cambridge Franchise Holdings, LLC

853 Broadway, Suite 2014

New York, NY 10003

Attention: Matthew Perelman; Alex Sloane

Email: perelman@garnettstation.com; sloane@garnettstation.com

 

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

 

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Attention: Eric L. Schiele, P.C.; Willard S. Boothby

Email: eric.schiele@kirkland.com; willard.boothby@kirkland.com

 

and

 

Kirkland & Ellis LLP

300 North LaSalle Street

Chicago, IL 60654

Attention: Jeremy S. Liss, P.C.; Matthew S. Arenson

Email: jliss@kirkland.com; marenson@kirkland.com

 

    22

     

    

 

(d) Entire Agreement.
This Agreement, together with the Merger Agreement and any related exhibits and schedules thereto, constitutes the sole and entire
agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous
understandings and agreements, both written and oral, with respect to such subject matter. Notwithstanding the foregoing, in the
event of any conflict between the terms and provisions of this Agreement and those of the Merger Agreement, the terms and conditions
of this Agreement shall control.

 

(e) Successor and
Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors
and permitted assigns. The Investor may not assign this Agreement or any of its rights, interests or obligations hereunder without
the prior written approval of the Company, other than to Permitted Affiliates of the Investor. The Company may not assign this
Agreement or any of its rights, interests or obligations hereunder without the prior written approval of the Investor.

 

(f) No Third-Party
Beneficiaries. Except for Section 10, the provisions of which are solely for the benefit of the Persons expressly identified
therein, this Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and
nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit
or remedy of any nature whatsoever, under or by reason of this Agreement.

 

(g) Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

(h) Amendment, Modification
and Waiver. The provisions of this Agreement may only be amended, modified, supplemented or waived with the prior written consent
of the Company and the Investor. No waiver by any party or parties shall operate or be construed as a waiver in respect of any
failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether
occurring before or after that waiver. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising,
any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof, nor shall
any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, remedy, power or privilege.

 

(i) Severability.
If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally
contemplated to the greatest extent possible.

 

(j) Remedies.
The Investor, in addition to being entitled to exercise all rights granted by law, including recovery of damages, shall be entitled
to specific performance of its rights under this Agreement. The Company acknowledges that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and the Company hereby agrees
to waive the defense in any action for specific performance that a remedy at law would be adequate. The failure to effect any of
the provisions of this Agreement that expressly contemplate action or forbearance by the Board shall be deemed a breach of this
Agreement by Carrols.

 

    23

     

    

 

(k) Governing Law;
Submission to Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the Laws of the State of
Delaware, regardless of the Laws that might otherwise govern under applicable principles of conflicts of Laws thereof. Each of
the Parties hereto (a) consents to submit itself to the personal jurisdiction of the Court of Chancery of the State of Delaware
or any federal court within the District of Delaware in the event any dispute arises out of this Agreement or the transactions
contemplated by this Agreement, (b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other
request for leave from any such court, (c) agrees that it will not bring any action relating to this Agreement or the transactions
contemplated by this Agreement in any court other than the Court of Chancery of the State of Delaware or any federal court within
the District of Delaware, (d) waives, to the fullest extent permitted by Law, the defense of an inconvenient forum to the maintenance
of such action in the Court of Chancery of the State of Delaware or such Federal court. Each Party agrees that (i) this Agreement
involves at least $100,000.00 and (ii) this Agreement has been entered into by the Parties in express reliance upon 6 Del. C. §
2708. Each Party agrees that a final judgment in any such action shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by Law. Any judgment from any such court described above may, however,
be enforced by any Party in any other court in any other jurisdiction.

 

(l) Waiver of Jury
Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH
PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER
AND CERTIFICATIONS IN THIS SECTION 15(l).

 

(m) Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

(n) Further Assurances.
The Investor agrees to execute and deliver such other agreements and take all such other acts as may be reasonably requested by
the Company or the managing underwriter in any Underwritten Offering that are consistent with the terms of this Agreement or which
are reasonably necessary to effect any of the registrations described herein.

 

[Signature Page Follows.]

 

    24

     

    

 

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

 

	 	CARROLS RESTAURANT GROUP, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	CAMBRIDGE FRANCHISE HOLDINGS, LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Registration Rights and Stockholders’ Agreement
Signature Page]

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