Document:

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of May 3, 2018, between Chanticleer Holdings,
Inc., a Delaware corporation (the “Company”), and each purchaser identified on the signature pages hereto (each,
including its successors and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to (i) an effective registration statement under
the Securities Act of 1933, as amended (the “Securities Act”) as to the Shares and (ii) an exemption from the
registration requirements of Section 5 of the Securities Act contained in Section 4(a)(2) thereof and/or Regulation D thereunder
as to the Warrants, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires
to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration
the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE
I.

DEFINITIONS

 

1.1
Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following
terms have the meanings set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.5.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

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

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the
applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription
Amount and (ii) the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but
in no event later than the second Trading Day following the date hereof.

 

    	 	 	 

    	 

    

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock.

 

“Company
Counsel” means Libertas Law Group, Inc., with offices located at 225 Santa Monica Blvd., 5th Floor, Santa Monica,
CA 90401.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(s).

 

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

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(aa).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 

“Per
Share Purchase Price” equals $3.50, subject to adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after the date of this Agreement and on or prior to
the Closing Date.

 

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“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the base prospectus filed for the Registration Statement.

 

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with
the Commission and delivered by the Company to each Purchaser at the Closing.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.8.

 

“Registration
Statement” means the effective registration statement with Commission File No. 333-203679 which registers the sale of
the Shares to the Purchasers.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Shares, the Warrants and the Warrant Shares.

 

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

 

“Shares”
means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement, other than the Warrant Shares.

 

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“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include locating and/or borrowing shares of Common Stock).

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Shares and Warrants purchased hereunder as
specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription
Amount,” in United States dollars and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Warrants, and all exhibits and schedules hereto and thereto.

 

“Transfer
Agent” means Securities Transfer Corporation, the current transfer agent of the Company, with a mailing address of 2901
N. Dallas Parkway, Suite 380, Plano, Texas 75093 and a facsimile number of (469) 633-0088, and any successor transfer agent of
the Company.

 

“Warrants”
means, collectively, the Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance with Section
2.2(a) hereof, which Warrants shall be exercisable six months after issuance, subject to the conditions specified therein, and
have a term of exercise equal to five (5) years after such warrants become exercisable, in the form of Exhibit A attached
hereto.

 

“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

 

ARTICLE
II.

PURCHASE
AND SALE

 

2.1 Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the
execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and
not jointly, agree to purchase, up to an aggregate of $1,575,000 of Shares and Warrants. Each Purchaser shall deliver to
the Company, via wire transfer or a certified check, immediately available funds equal to such Purchaser’s Subscription
Amount as set forth on the signature page hereto executed by such Purchaser and the Company shall deliver to each Purchaser
its respective Shares and a Warrant as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall
deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and
conditions set forth in Sections 2.2 and 2.3, the Closing shall occur electronically.

 

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2.2
Deliveries.

 

(a)
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)
this Agreement duly executed by the Company;

 

(ii)
a legal opinion of Company Counsel, in form and substance reasonably acceptable to such Purchaser;

 

(iii)
the Company shall have provided each Purchaser with the Company’s wire instructions, on Company letterhead and executed
by the Chief Executive Officer, Chief Operating Officer, or Chief Financial Officer;

 

(iv)
a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver on an expedited basis via
The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”) Shares equal to such Purchaser’s
Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser;

 

(v)
a Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 100% of such
Purchaser’s Shares, with an exercise price equal to $4.50, subject to adjustment therein (provided that the original Warrant
certificates may be delivered within three Trading Days of the Closing Date); and

 

(vi)
the Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

(b)
On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the
following:

 

(i)
this Agreement duly executed by such Purchaser; and

 

(ii)
such Purchaser’s Subscription Amount which shall be made available by wire transfer to the account specified in writing
by the Company.

 

2.3 Closing
Conditions.

 

(a)
The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being
met:

 

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(i)
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) on the Closing Date of the representations and warranties of the Purchasers contained herein
(unless such representations and warranties are given as of a date specified therein, in which case they shall be accurate as
of such date);

 

(ii)
all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have
been performed; and

 

(iii)
the delivery by each Purchaser of the items set forth in Section

2.2(b)
of this Agreement.

 

(b)
The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions
being met:

 

(i)
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained
herein (unless such representations and warranties are given as of a date specified therein, in which case they shall be accurate
as of such date);

 

(ii)
all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been
performed;

 

(iii)
the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)
there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v)
from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the
Closing.

 

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ARTICLE
III.

REPRESENTATIONS
AND WARRANTIES

 

3.1
Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules
shall be deemed a part hereof and shall qualify any representation or warranty otherwise made herein to the extent of the disclosure
contained in the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and
warranties to each Purchaser:

 

(a)
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company
owns, directly or indirectly, the percentage of the capital stock or other equity interests of each Subsidiary as set forth on
Schedule 3.1(a), subject only to the Liens indicated on Schedule 3.1(a). All of the issued and outstanding shares
of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights
to subscribe for or purchase securities. If the Company has no subsidiaries, all other references to the Subsidiaries or any of
them in the Transaction Documents shall be disregarded.

 

(b)
Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the
Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in
any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

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(c) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its
obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction
Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly
authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of
Directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required
Approvals. This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have
been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the
valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as
limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and
contribution provisions may be limited by applicable law.

 

(d)
No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents
to which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby
and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, or result in the creation of any Lien upon
any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which
any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict
with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court
or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations),
or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii)
and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)
Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of,
give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus
Supplement, (iii) application(s) to each applicable Trading Market for the listing of the Shares and Warrant Shares for trading
thereon in the time and manner required thereby, and (iv) the filing of Form D with the Commission and such filings as are required
to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

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(f) Issuance
of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance with the
applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens
imposed by the Company. The Warrant Shares, when issued in accordance with the terms of the Warrants, will be validly
issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its
duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement and the
Warrants. The Company has prepared and filed the Registration Statement in conformity with the requirements of the Securities
Act, which became effective on June 9, 2015 (the “Effective Date”), including the Prospectus, and such
amendments and supplements thereto as may have been required to the date of this Agreement. The Registration Statement is
effective under the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement
or suspending or preventing the use of the Prospectus has been issued by the Commission and no Proceedings for that purpose
have been instituted or, to the knowledge of the Company, are threatened by the Commission. The Company, if required by the
rules and regulations of the Commission, shall file the Prospectus with the Commission pursuant to Rule 424(b). At the time
the Registration Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing
Date, the Registration Statement and any amendments thereto conformed and will conform in all material respects to the
requirements of the Securities Act and did not and will not contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein not misleading; and the
Prospectus and any amendments or supplements thereto, at time the Prospectus or any amendment or supplement thereto was
issued and at the Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act
and did not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in light of the circumstances under which they were made, not misleading. The Company was at
the time of the filing of the Registration Statement eligible to use Form S-3. The Company is eligible to use Form S-3 under
the Securities Act and it meets the transaction requirements with respect to the aggregate market value of securities being
sold pursuant to this offering and during the twelve (12) months prior to this offering, as set forth in General Instruction
I.B.6 of Form S-3.

 

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(g) Capitalization.
The capitalization of the Company is as set forth on Schedule 3.1(g). The Company has not issued any capital stock
since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock
options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the
Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock
Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any
right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Other than as disclosed in the Prospectus and the Prospectus Supplement, and
except as a result of the purchase and sale of the Securities or as set forth on Schedule 3.1(g), there are no
outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to
subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of
Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. The issuance and sale of the Securities will not
obligate the Company or any Subsidiary to issue shares of Common Stock or other securities to any Person (other than the
Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange
or reset price under any of such securities. Except as set forth on Schedule 3.1(g), there are no securities of the
Company or any Subsidiary that have an anti-dilution or similar adjustment rights (other than adjustments for stock splits,
recapitalizations and the like) to the exercise or conversion price, have any exchange rights or reset rights. There are no
outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and
there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may
become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights
or “phantom stock” plans or agreements or any similar plan or agreement. All of the outstanding shares of capital
stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with
all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights
or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board
of Directors or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting
agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or,
to the knowledge of the Company, between or among any of the Company’s stockholders.

 

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(h) SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or
15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or
regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by
reference therein, together with the Prospectus and the Prospectus Supplement, being collectively referred to herein as the
“SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed
any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in
all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC
Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act. The financial
statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements
and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial
statements have been prepared in accordance with United States generally accepted accounting principles applied on a
consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated
Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended or the
balance sheet as of the date thereof, subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments.

 

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(i)
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements
included within the SEC Reports, except as set forth in Schedule 3.1(i), (i) there has been no event, occurrence or development
that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any
liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant
to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the
Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed
or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities
to any officer, director or Affiliate, except pursuant to existing Company equity compensation or stock purchase plans. The Company
does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of
the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability, fact, circumstance,
occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its
Subsidiaries or their respective businesses, properties, operations, assets or financial condition that would be required to be
disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not
been publicly disclosed at least one Trading Day prior to the date that this representation is made.

 

(j)
Litigation. There is no action, suit, inquiry, notice of violation, Proceeding or investigation pending or, to the knowledge
of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by
any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability
of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably
be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof,
is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws
or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission
has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or
any Subsidiary under the Exchange Act or the Securities Act.

 

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(k) Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the
employees of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the
Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s
relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a
collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees
are good. To the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to
be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information
agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third
party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to
any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S.
federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions
of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

(l)
Compliance. Except as set forth on Schedule 3.1(l), neither the Company nor any Subsidiary: (i) received notice
of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement
or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation
has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority
or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety,
product quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to
result in a Material Adverse Effect.

 

(m)
Environmental Laws. The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws
relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land
surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder
(“Environmental Laws”); (ii) have received all permits licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such
permit, license or approval where in the case of each of clause (i), (ii) and (iii), the failure to so comply could be reasonably
expected to have, individually or in the aggregate, a Material Adverse Effect.

    	 	13	 

    	 

    

 

(n)
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material
Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of
Proceedings relating to the revocation or modification of any Material Permit.

 

(o)
Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned
by them and good and marketable title in all personal property (excluding the Intellectual Property Rights, which are covered
in Section 3.1(p)) owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear
of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere with
the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens for the payment of federal,
state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the payment of which
is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries
are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

(p)
Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights necessary or required for use in connection with their respective businesses as described in
the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise)
that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate
or be abandoned, within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since
the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise
has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not
have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property
Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The
Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all
of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. The Company has no knowledge that it lacks or will be unable to obtain any rights or licenses
to use all Intellectual Property Rights that are necessary to conduct its business.

 

    	 	14	 

    	 

    

 

(q) Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged,
including, but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount.
Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary
to continue its business without a significant increase in cost.

 

(r) Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company
or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a
party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by,
providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of money
to or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee,
stockholder, member or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees
for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits,
including stock option and restricted stock agreements under any equity compensation plan of the Company.

 

(s)
Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable
requirements of the Sarbanes- Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and
regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The
Company’s has identified material weaknesses in its internal control over financial reporting. The Company’s certifying
officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of
the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation
Date”) and reported. The Company presented in its most recently filed periodic report under the Exchange Act the conclusions
of the certifying officers about the ineffectiveness of the disclosure controls and procedures based on their evaluations as of
the Evaluation Date. The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of
its certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the
Evaluation Date. The Company is in the process of implementing changes to its accounting systems internal processes and policies
to improve its internal control over financial reporting.

 

(t) Certain
Fees. Other than as set for the in the prospectus supplement, no brokerage or finder’s fees or commissions are or
will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement
agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.
The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other
Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by
the Transaction Documents.

 

    	 	15	 

    	 

    

 

(u)
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

(v)
Registration Rights. Except as set forth in Schedule 3.1(v), no Person has any right to cause the Company or any
Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

 

(w)
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. Except as disclosed in the SEC Reports, the Company has not, in the 12 months preceding the date
hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the
Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason
to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.
The Common Stock is currently eligible for electronic transfer through the Depository Trust Company or another established clearing
corporation and the Company is current in payment of the fees to the Depository Trust Company (or such other established clearing
corporation) in connection with such electronic transfer. The issuance and sale of the Securities hereunder does not contravene
the rules and regulations of the Trading Market.

 

(x)
[RESERVED]

 

(y) Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the
Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents
or counsel with any information that it believes constitutes or might constitute material, non-public information which is
not otherwise disclosed in the Prospectus Supplement. The Company understands and confirms that the Purchasers will rely on
the foregoing representation in effecting transactions in securities of the Company. All of the disclosure furnished by or on
behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their respective businesses and the
transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct in all material
respects and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were made, not misleading. The Company
acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

    	 	16	 

    	 

    

 

(z)
No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section
3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly,
made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this
offering of the Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would
require the registration of the Warrants or Warrant Shares under the Securities Act, or (ii) any applicable shareholder approval
provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

(aa)
Solvency. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account
the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances
which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any
jurisdiction within one year from the Closing Date. Schedule 3.1(aa) sets forth as of the date hereof all outstanding secured
and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the
purposes of this Agreement, “Indebtedness” means (x) any liabilities for borrowed money or amounts owed in
excess of $2000,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements
and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the
Company’s consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments
for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments
in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary
is in default with respect to any Indebtedness.

 

(bb)
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed, or secured all extensions for the filing
of all applicable United States federal, state and local income and all foreign income and franchise tax returns, reports and
declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and
charges that are material in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set
aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to
which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing
authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim.

 

    	 	17	 

    	 

    

 

(cc) Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any
agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds
for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political
activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or
domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the
Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of
law, or (iv) violated in any material respect any provision of FCPA.

 

(dd)
Accountants. The Company’s independent registered public accounting firm is Cherry Bekaert LLP. To the knowledge
and belief of the Company, such accounting firm (i) is a registered public accounting firm as required by the Exchange Act and
(ii) shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report on
Form 10-K for the fiscal year ending December 31, 2018.

 

(ee)
Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the
Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby
and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities.
The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other
Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company
and its representatives.

 

(ff) Acknowledgement
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the
contrary notwithstanding (except for Sections 3.2(e) and 4.14 hereof), it is understood and acknowledged by the Company that:
(i) none of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or
selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by
the Company or to hold the Securities for any specified term; (ii) past or future open market or other transactions by any
Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after
the closing of this or future private placement transactions, may negatively impact the market price of the Company’s
publicly-traded securities; (iii) any Purchaser, and counter-parties in “derivative” transactions to which any
such Purchaser is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and
(iv) each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in
any “derivative” transaction. The Company further understands and acknowledges that (y) one or more Purchasers
may engage in hedging activities at various times during the period that the Securities are outstanding, including, without
limitation, during the periods that the value of the Warrant Shares deliverable with respect to Securities are being
determined, and (z) such hedging activities (if any) could reduce the value of the existing stockholders’ equity
interests in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that
such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

 

    	 	18	 

    	 

    

 

(gg)
Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of
the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation
for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company.

 

(hh)
Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director,
officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(ii)
U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation
within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

(jj)
Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding
Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve
System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls,
directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent
or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(kk)
Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in material
compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting
Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the
“Money Laundering Laws”), and no Action or Proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to
the knowledge of the Company or any Subsidiary, threatened.

 

(ll) Private
Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no
registration under the Securities Act is required for the offer and sale of the Warrants or the Warrant Shares by the
Company to the Purchasers as contemplated hereby.

 

    	 	19	 

    	 

    

 

(mm)
No General Solicitation. Neither the Company nor any Person acting on behalf of the Company has offered or sold any of
the Warrant or Warrant Shares by any form of general solicitation or general advertising. The Company has offered the Warrants
and Warrant Shares for sale only to the Purchasers and certain other “accredited investors” within the meaning of
Rule 501 under the Securities Act.

 

(nn)
No Disqualification Events. With respect to the Warrant and Warrant Shares to be offered and sold hereunder in reliance
on Rule 506 under the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, nor, to its knowledge,
any director, executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of
20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter
(as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale
(each, an “Issuer Covered Person”) is subject to any of the “Bad Actor” disqualifications described
in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person
is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under
Rule 506(e), and has furnished to the Purchasers a copy of any disclosures provided thereunder.

 

(oo)
Other Covered Persons. The Company is not aware of any person (other than any Issuer Covered Person) that has been or will
be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Securities.

 

(pp)
Notice of Disqualification Events. The Company will notify the Purchasers in writing, prior to the Closing Date of (i)
any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, reasonably
be expected to become a Disqualification Event relating to any Issuer Covered Person, in each case of which it is aware.

 

(qq)
Stock Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i)
in accordance with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the fair
market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock
option granted under the Company’s stock option plan has been backdated. The Company has not knowingly granted, and there
is no and has been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate
the grant of stock options with, the release or other public announcement of material information regarding the Company or its
Subsidiaries or their financial results or prospects.

 

    	 	20	 

    	 

    

 

(rr) No
Disagreements with Accountants or Lawyers. There are no disagreements of any kind presently existing, or
reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently
employed by the Company and the Company is current with respect to any fees owed to its accountants and lawyers which could
affect the Company’s ability to perform any of its obligations under any of the Transaction Documents.

 

3.2
Representations and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents
and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein,
in which case they shall be accurate as of such date):

 

(a)
Organization; Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership,
limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction
Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized
by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser.
Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser
in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against
it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)
Understandings or Arrangements. Such Purchaser is acquiring the Securities as principal for its own account and has no
direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities
(this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration
Statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities
hereunder in the ordinary course of its business. Such Purchaser understands that the Warrants and the Warrant Shares are “restricted
securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring
such Securities as principal for his, her or its own account and not with a view to or for distributing or reselling such Securities
or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing
any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation
of the Securities Act or any applicable state securities law (this representation and warranty not limiting such Purchaser’s
right to sell such Securities pursuant to a registration statement or otherwise in compliance with applicable federal and state
securities laws).

 

    	 	21	 

    	 

    

 

(c)
Purchaser Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on
the Closing Date it will be,and on each date on which it exercises any Warrants, it will be an “accredited investor”
as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.

 

(d)
Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e)
Access to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents
(including all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions
as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions
of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the
Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable
it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can
acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

(f)
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser
has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting
forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall
only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Other than to other Persons party to this Agreement or to such Purchaser’s representatives,
including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates,
such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including
the existence and terms of this transaction). Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein
shall constitute a representation or warranty, or preclude any actions, with respect to locating or borrowing shares in order
to effect Short Sales or similar transactions in the future.

 

    	 	22	 

    	 

    

 

(g)
General Solicitation. Such Purchaser is not purchasing the Warrants as a result of any advertisement, article, notice or
other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or, to the knowledge of such Purchaser, any other general solicitation or general advertisement.

 

The
Company acknowledges and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations
and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection
with this Agreement or the consummation of the transactions contemplated hereby. Notwithstanding the foregoing, for the avoidance
of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating
or borrowing shares in order to effect Short Sales or similar transactions in the future.

 

ARTICLE
IV.

OTHER
AGREEMENTS OF THE PARTIES

 

4.1
Removal of Legends.

 

(a)
The Warrants and Warrant Shares may only be disposed of in compliance with state and federal securities laws. In connection with
any transfer of Warrants or Warrant Shares other than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of a Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the
transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the
Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer
does not require registration of such transferred Warrant under the Securities Act.

 

(b)
The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Warrants or Warrant
Shares in the following form:

 

NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAS BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A
BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN
“ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

 

    	 	23	 

    	 

    

 

The
Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a
registered broker-dealer or grant a security interest in some or all of the Warrants or Warrant Shares to a financial institution
that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and, if required under the terms
of such arrangement, such Purchaser may transfer pledged or secured Warrants or Warrant Shares to the pledgees or secured parties.
Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee,
secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the
appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured
party of Warrants and Warrant Shares may reasonably request in connection with a pledge or transfer of the Warrants or Warrant
Shares.

 

(c)
Certificates evidencing the Warrant Shares shall not contain any legend (including the legend set forth in Section 4.1(b)
hereof): (i) while a registration statement covering the resale of such security is effective under the Securities Act, or
(ii) following any sale of such Warrant Shares pursuant to Rule 144 (assuming cashless exercise of the Warrants), or (iii) if
such Warrant Shares are eligible for sale under Rule 144 (assuming cashless exercise of the Warrants), or (iv) if such legend
is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements
issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer Agent or
the Purchaser promptly if required by the Transfer Agent to effect the removal of the legend hereunder, or if requested by a
Purchaser, respectively. If all or any portion of a Warrant is exercised at a time when there is an effective registration
statement to cover the resale of the Warrant Shares, or if such Warrant Shares may be sold under Rule 144 (assuming cashless
exercise of the Warrants) or if such legend is not otherwise required under applicable requirements of the Securities Act
(including judicial interpretations and pronouncements issued by the staff of the Commission) then such Warrant Shares shall
be issued free of all legends. The Company agrees that following such time as such legend is no longer required under this
Section 4.1(c), the Company will, no later than the earlier of (i) two Trading Days and (ii) the number of Trading Days
comprising the Standard Settlement Period (as defined below) following the delivery by a Purchaser to the Company or the
Transfer Agent of a certificate representing Warrant Shares, as applicable, issued with a restrictive legend (such second
Trading Day, the “Legend Removal Date”), deliver or cause to be delivered to such Purchaser a certificate
representing such shares that is free from all restrictive and other legends. The Company may not make any notation on its
records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.
Certificates for Warrant Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the
Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as
directed by such Purchaser. As used herein, “Standard Settlement Period” means the standard settlement
period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock
as in effect on the date of delivery of a certificate representing Warrant Shares issued with a restrictive
legend.

 

    	 	24	 

    	 

    

 

(d)
In addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, if the Company
fails to (a) issue and deliver (or cause to be delivered) to a Purchaser by the Legend Removal Date a certificate representing
the Securities so delivered to the Company by such Purchaser that is free from all restrictive and other legends and (b) if after
the Legend Removal Date such Purchaser purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by such Purchaser of all or any portion of the number of shares of Common Stock, or a sale of a number
of shares of Common Stock equal to all or any portion of the number of shares of Common Stock, that such Purchaser anticipated
receiving from the Company without any restrictive legend, then an amount equal to the excess of such Purchaser’s total
purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased
(including brokerage commissions and other out-of-pocket expenses, if any) (the “Buy-In Price”) over the product of
(A) such number of Warrant Shares that the Company was required to deliver to such Purchaser by the Legend Removal Date multiplied
by (B) the lowest closing sale price of the Common Stock on any Trading Day during the period commencing on the date of the delivery
by such Purchaser to the Company of the applicable Warrant Shares (as the case may be) and ending on the date of such delivery
and payment under this Section 4.1(d).

 

(e)
The Shares shall be issued free of legends.

 

(f)
Each Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser will sell any
Warrant Shares pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery
requirements, or an exemption therefrom, and that if such Warrant Shares are sold pursuant to a registration statement, they will
be sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend
from certificates representing Warrant Shares as set forth in this Section 4.1 is predicated upon the Company’s reliance
upon this understanding.

 

4.2
Furnishing of Information.

 

(a)
Until the earliest of the time that (i) no Purchaser owns Securities or (ii) the Warrants have expired, the Company covenants
to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be
filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting
requirements of the Exchange Act, except in the event of a merger or acquisition transaction approved by the Board of Directors
that results in the Company not being subject to such reporting requirements.

 

    	 	25	 

    	 

    

 

4.3
Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in
a manner that would require the registration under the Securities Act of the sale of the Warrants or Warrant Shares or that would
be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that
it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before
the closing of such subsequent transaction.

 

4.4
Securities Laws Disclosure; Publicity. The Company shall (a) by 9:30 a.m. Eastern Time on the first Trading Day following
the Closing Date, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a
Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required
by the Exchange Act. From and after the issuance of such press release, the Company represents to the Purchasers that it shall
have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries,
or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction
Documents. In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that any and all
confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries
or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or
any of their Affiliates on the other hand, shall terminate. The Company and each Purchaser shall consult with each other in issuing
any other press releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall
issue any such press release nor otherwise make any such public statement without the prior consent of the Company, with respect
to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the
Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case
the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding
the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any
filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except
(a) as required by federal securities law in connection with the filing of final Transaction Documents with the Commission and
(b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the
Purchasers with prior notice of such disclosure permitted under this clause (b), to the extent reasonably practical.

 

4.5
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other
Person, that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue
of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

    	 	26	 

    	 

    

 

4.6
Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the
Transaction Documents, which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor
any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes,
or the Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have
consented to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands
and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent,
the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of
its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis
of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that
any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding
the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting
transactions in securities of the Company.

 

4.7
Use of Proceeds. Except as set forth in the Prospectus Supplement, the Company shall use the net proceeds from the sale
of the Securities hereunder for working capital purposes and shall not use such proceeds: (a) for the satisfaction of any portion
of the Company’s debt (other than payment of trade payables in the ordinary course of the Company’s business and prior
practices), (b) for the redemption of any Common Stock or Common Stock Equivalents, (c) for the settlement of any outstanding
litigation or (d) in violation of FCPA or OFAC regulations.

 

    	 	27	 

    	 

    

 

4.8 Indemnification
of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser and its
directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a
functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each
Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange
Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a
functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such
controlling persons (each, a “Purchaser Party”) harmless from any and all losses, liabilities,
obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court
costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a
result of or relating to (a) any material breach of any of the representations, warranties, covenants or agreements made by
the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the Purchaser
Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an
Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the
Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any
violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which
constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser
Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the
Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing
reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such
Purchaser Party except to the extent that (x) the employment thereof has been specifically authorized by the Company in
writing, (y) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (z) in
such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of
the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees
and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this
Agreement (1) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall
not be unreasonably withheld or delayed; or (2) to the extent, but only to the extent that a loss, claim, damage or liability
is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made
by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification required by this Section
4.8 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when
bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or
similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant
to law.

 

4.9
Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve
and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling
the Company to issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

 

4.10
Listing of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation of the Common
Stock on the Trading Market on which it is currently listed, and concurrently with the Closing, the Company shall apply to list
or quote all of the Shares and Warrant Shares on such Trading Market and promptly secure the listing of all of the Shares and
Warrant Shares on such Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any
other Trading Market, it will then include in such application all of the Shares and Warrant Shares, and will take such other
action as is necessary to cause all of the Shares and Warrant Shares to be listed or quoted on such other Trading Market as promptly
as possible. The Company will then take all action reasonably necessary to continue the listing and trading of its Common Stock
on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations under the
bylaws or rules of the Trading Market. The Company agrees to maintain the eligibility of the Common Stock for electronic transfer
through the Depository Trust Company or another established clearing corporation, including, without limitation, by timely payment
of fees to the Depository Trust Company or such other established clearing corporation in connection with such electronic transfer.

 

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4.11
[RESERVED]

 

4.12
Variable Rate Transactions. From the date hereof until no Warrants are held by the Purchasers, the Company shall be prohibited
from effecting or entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock
or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction; provided that nothing herein
shall prohibit the Company from entering into a Variable Rate Transaction with Lincoln Park Capital Fund, LLC or it’s affiliates.
“Variable Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities
that are convertible into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock
either (A) at a conversion price, exercise price or exchange rate or other price that is based upon and/or varies with the trading
prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities,
or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance
of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the
business of the Company or the market for the Common Stock or (ii) enters into, or effects a transaction under, any agreement,
including, but not limited to, an equity line of credit, whereby the Company may issue securities at a future determined price.
Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall
be in addition to any right to collect damages.

 

4.13
Equal Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered
or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration
is also offered to all of the parties to this Agreement. For clarification purposes, this provision constitutes a separate right
granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat
the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect
to the purchase, disposition or voting of Securities or otherwise.

 

4.14 Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that
neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases
or sales, including Short Sales of any of the Company’s securities during the period commencing with the execution of
this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release as described in Section 4.4. Each Purchaser, severally and not jointly with the other
Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the
Company pursuant to the initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality
of the existence and terms of this transaction and the information included in the Disclosure Schedules. Notwithstanding the
foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and
agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting
transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first
publicly announced pursuant to the initial press release as described in Section 4.4, (ii) no Purchaser shall be restricted
or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws
from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the
initial press release as described in Section 4.4 and (iii) no Purchaser shall have any duty of confidentiality or duty not
to trade in the securities of the Company to the Company or its Subsidiaries after the issuance of the initial press release
as described in Section 4.4. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment
vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio
managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such
Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the
portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.

 

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4.15 Registration
Statement. As soon as reasonably practicable (and in any event within 60 calendar days after the Closing Date), the
Company shall file a registration statement on Form S-3 (or Form S-1 if Form S-3 is not available) providing for the
issuance and resale by the Purchasers of the Warrant Shares issued and issuable upon exercise of the Warrants. The Company
shall use commercially reasonable efforts to cause such registration to become effective 90 days following the Closing Date
if not reviewed by the Commission (or 180 days following the Closing Date if reviewed by the Commission) and to keep such
registration statement effective at all times until (a) the Warrant Shares are sold under such registration statement or
pursuant to Rule 144 under the Securities Act, (b) the Warrant Shares may be sold without volume or manner-of-sale
restrictions pursuant to Rule 144 under the Securities Act, and (c) the five (5) year anniversary of the date of the issuance
of the Warrants, whichever is the earliest to occur. Subject to the accuracy of the information provided by the Purchasers to
the Company, the Company shall ensure that such registration statement (including any amendments or supplements thereto and
prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein, or necessary to make the statements therein (in the case of prospectuses, in the light of the
circumstances in which they were made) not misleading. After the date hereof and during any period in which a prospectus or
prospectus supplement relating to any of the Securities subject to registration under this Section 4.15 is required to be
delivered by any Purchaser pursuant to the Securities Act (including in circumstances where such requirement may be satisfied
pursuant to Rule 172 of the Securities Act), (i) the Company will notify the Purchasers promptly of the time when any
subsequent amendment to such registration statement, other than documents incorporated by reference, has been filed with the
Commission or has become effective or any subsequent supplement to the prospectus regarding such Securities or any of the
Purchasers or any subsequent amendment to the prospectus or any supplement or amendment to the prospectus supplement has been
filed with the Commission and of any comment letter from the Commission or any request by the Commission for any amendment or
supplement to such registration statement, any amendment to the prospectus, any supplement to the prospectus that relates
to the Securities subject to such registration statement under this Section or any of the Purchasers, or any amendment or
supplement to the prospectus supplement, provided that no notification of the Purchasers shall be required if such amendment,
supplement, or comment, or request would not, and would not seek, to limit the rights of the Purchasers or the Warrant
Shares, (ii) the Company will prepare and file with the Commission, promptly upon a Purchaser’s request, any amendments
or supplements to such registration statement, prospectus or prospectus supplement that, in the Company’s reasonable
opinion, may be necessary in connection with any resale of the Warrant Shares by such Purchaser (provided, however, that the
failure of such Purchaser to make such request shall not relieve the Company of any obligation or liability hereunder), (iii)
the Company will not file any amendment or supplement to a registration statement, prospectus or prospectus supplement, other
than documents incorporated by reference, relating to the Warrant Shares subject to registration under this Section 4.15
unless a copy of the Selling Stockholder and Plan of Distribution sections thereof have been submitted or made available to
each Purchaser within a reasonable period of time before the filing and no Purchaser has reasonably objected in writing
thereto (provided, however, that (A) the failure of any Purchaser to make such objection shall not relieve the Company of any
obligation or liability hereunder, and (B) the Company has no obligation to provide a Purchaser any advance copy of such
filing or to provide such Purchaser an opportunity to object to such sections of the filing if such filing does not name such
Purchaser or specifically discuss the Warrant Shares subject to registration under this Section 4.15 as contemplated hereby)
and the Company will furnish or make available to each Purchaser at the time of filing thereof a copy of any document that
upon filing is deemed to be incorporated by reference into a registration statement, prospectus or prospectus supplement,
except for those documents available via EDGAR, and (iv) the Company will cause each amendment or supplement to the
prospectus or prospectus supplement, other than documents incorporated by reference, to be filed with the Commission
as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act. All fees and expenses incident to the
performance of or compliance with, this Section 4.15 by the Company shall be borne by the Company whether or not any Warrant
Shares are sold pursuant to a registration statement. Neither the Company nor any of its security holders (other than the
Purchasers in such capacity pursuant hereto) may include securities of the Company in any registration statements other than
the Warrant Shares. The Company shall not file any other registration statement until the date that all Warrant Shares are
registered pursuant to a registration statement. Notwithstanding anything to the contrary contained herein, in no event shall
the Company be permitted to name any Purchaser or Affiliate of a Purchaser as an underwriter without the prior written
consent of such Purchaser.

 

4.16
Exercise Procedures. The form of Notice of Exercise included in the Warrants set forth the totality of the procedures required
of the Purchasers in order to exercise the Warrants. No additional legal opinion, other information or instructions shall be required
of the Purchasers to exercise their Warrants. Without limiting the preceding sentences, no ink-original Notice of Exercise shall
be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be
required in order to exercise the Warrants. The Company shall honor exercises of the Warrants and shall deliver Warrant Shares
in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

4.17
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Warrant and Warrant Shares as
required under Regulation D. The Company shall take such action as the Company shall reasonably determine is necessary in order
to obtain an exemption for, or to qualify the Warrant and Warrant Shares for, sale to the Purchasers at the Closing under applicable
securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly
upon request of any Purchaser.

 

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ARTICLE
V.

MISCELLANEOUS

 

5.1
Termination. This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only
and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other
parties, if the Closing has not been consummated on or before May 16, 2018; provided, however, that no such termination
will affect the right of any party to sue for any breach by any other party (or parties).

 

5.2
Fees and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts,
if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance
of this Agreement The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day
processing of any instruction letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and
other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

 

5.3
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and the Prospectus
Supplement, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede
all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been
merged into such documents, exhibits and schedules.

 

5.4 Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature
pages attached hereto at or prior to 5:30 p.m. Eastern Time on a Trading Day, (b) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the
email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m.
Eastern Time on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The
address for such notices and communications shall be as set forth on the signature pages attached hereto. To the extent that
any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding
the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current
Report on Form 8-K.

 

5.5 Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument
signed, in the case of an amendment, by the Company and Purchasers which purchased at least 50.1% in interest of the Shares
based on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any
such waived provision is sought, provided that if any amendment, modification or waiver disproportionately and
adversely impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group
of Purchasers) shall also be required. No waiver of any default with respect to any provision, condition or requirement of
this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of
any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right
hereunder in any manner impair the exercise of any such right. Any proposed amendment or waiver that disproportionately,
materially and adversely affects the rights and obligations of any Purchaser relative to the comparable rights and
obligations of the other Purchasers shall require the prior written consent of such adversely affected Purchaser. Any
amendment effected in accordance with this Section 5.5 shall be binding upon each Purchaser and holder of Securities and the
Company.

 

    	 	31	 

    	 

    

 

5.6
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed
to limit or affect any of the provisions hereof.

 

5.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any
Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound,
with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.8
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.8 and this Section 5.8.

 

5.9
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard
to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of Charlotte, State of North Carolina. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Charlotte, State of North
Carolina for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or
discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives,
and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such
court, that such Action or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law. If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition
to the obligations of the Company under Section 4.8, the prevailing party in such Action or Proceeding shall be reimbursed by
the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such Action or Proceeding.

 

    	 	32	 

    	 

    

 

5.10
Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

5.11
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other
party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

 

5.12
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.13
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar
provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under
a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then
such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant
notice, demand or election in whole or in part without prejudice to its future actions and rights; provided, however,
that in the case of a rescission of an exercise of a Warrant, the applicable Purchaser shall be required to return any shares
of Common Stock subject to any such rescinded exercise notice concurrently with the return to such Purchaser of the aggregate
exercise price paid to the Company for such shares and the restoration of such Purchaser’s right to acquire such shares
pursuant to such Purchaser’s Warrant (including, issuance of a replacement warrant certificate evidencing such restored
right).

 

5.14
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed,
the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Securities.

 

    	 	33	 

    	 

    

 

5.15
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The
parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations
contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any
such obligation the defense that a remedy at law would be adequate.

 

5.16
Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other
Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of
action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way
for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained
herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed
to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated
by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without
limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary
for any other Purchaser to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented
by its own separate legal counsel in its review and negotiation of the Transaction Documents. The Company has elected to provide
all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required
or requested to do so by any of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement
and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers
collectively and not between and among the Purchasers.

 

5.18
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

    	 	34	 

    	 

    

 

5.19
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be
subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

 

5.20
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER
PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVE FOREVER TRIAL BY JURY.

 

(Signature
Pages Follow)

 

    	 	35	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	CHANTICLEER
    HOLDINGS, INC.	 	Address
    for Notice: 
	 	 	Chanticleer
    Holdings, Inc.
	 	 	7621
    Little Ave., Suite 414
	 	 	Charlotte,
    NC 28226
	By:	 	 	 
	Name:	Michael
    D. Pruitt	 	E-Mail:
	Title:	Chief
    Executive Officer	 	mp@chanticleerholdings.com
	 	 	 	 
	With
    a copy to (which shall not constitute notice):	 	 
	 	 	 
	Libertas
    Law Group, Inc.	 	 
	224
    Santa Monica Blvd., 5th Floor	 	 
	Ruba@libertaslaw.com	 	 
	Attention:
    Ruba Qashu, Partner	 	 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	 	36	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	Name
    of Purchaser: _________________________________________________________________
	 
	Signature
    of Authorized Signatory of Purchaser: __________________________________________
	 
	Name
    of Authorized Signatory: ________________________________________________________
	 
	Title
    of Authorized Signatory: _________________________________________________________
	 
	Email
    Address of Authorized Signatory: _________________________________________________
	 
	Facsimile
    Number of Authorized Signatory: _______________________________________________
	 
	Address
for Notice to Purchaser:

 

	Address
for Delivery of Warrants to Purchaser (if not same as address for notice):
	 
	DWAC for Shares:
	 
	Subscription Amount: $_____________________________
	 
	Shares: ___________________________
	 
	Warrant Shares: _______________________________
	 
	EIN
    Number: _____________________________
		 

[SIGNATURE
PAGES CONTINUE]

 

    	 	37	 

    	 

    

 

DISCLOSURE
SCHEDULES 

 

SCHEDULE
3.1(a) Subsidiaries

 

	Name	 	Jurisdiction of Incorporation	 	Percent

                                                                  Owned
	 
	CHANTICLEER HOLDINGS, INC.	 	DE, USA	 	 	 	 
	Burger Business	 	 	 	 	 	 
	American Roadside Burgers, Inc.	 	DE, USA	 	 	100	%
	ARB Stores	 	 	 	 	 	 
	American Burger Ally, LLC	 	NC, USA	 	 	100	%
	American Burger Morehead, LLC	 	NC, USA	 	 	100	%
	American Burger Prosperity, LLC	 	NC, USA	 	 	100	%
	American Roadside Burgers Smithtown, Inc.	 	DE, USA	 	 	100	%
	American Roadside McBee, LLC	 	NC, USA	 	 	100	%
	American Roadside Southpark LLC	 	NC, USA	 	 	100	%
	BGR Acquisition, LLC	 	NC, USA	 	 	100	%
	BGR Franchising, LLC	 	VA, USA	 	 	100	%
	BGR Operations, LLC	 	VA, USA	 	 	100	%
	American Roadside McBee, LLC	 	NC, USA	 	 	100	%
	American Roadside Southpark LLC	 	NC, USA	 	 	100	%
	BGR Acquisition, LLC	 	NC, USA	 	 	100	%
	BGR Franchising, LLC	 	VA, USA	 	 	100	%
	BGR Operations, LLC	 	VA, USA	 	 	100	%
	BGR Acquisition 1, LLC	 	NC, USA	 	 	100	%
	BGR Annapolis, LLC	 	MD, USA	 	 	100	%
	BGR Arlington, LLC	 	VA, USA	 	 	100	%
	BGR Dupont, LLC	 	DC, USA	 	 	100	%
	BGR Michigan Ave, LLC	 	DC, USA	 	 	100	%
	BGR Mosaic, LLC	 	VA, USA	 	 	100	%
	BGR Old Keene Mill, LLC	 	VA, USA	 	 	100	%
	BGR Springfield Mall, LLC	 	VA, USA	 	 	100	%
	BGR Tysons, LLC	 	VA, USA	 	 	100	%
	BGR Washingtonian, LLC	 	MD, USA	 	 	100	%
	Capitol Burger, LLC	 	MD, USA	 	 	100	%
	BT Burger Acquisition, LLC	 	NC, USA	 	 	100	%
	BT’s Burgerjoint Rivergate LLC	 	NC, USA	 	 	100	%
	BT’s Burgerjoint Sun Valley, LLC	 	NC, USA	 	 	100	%
	LBB Acquisition, LLC	 	NC, USA	 	 	100	%
	Cuarto LLC	 	OR, USA	 	 	100	%
	LBB Acquisition 1 LLC	 	OR, USA	 	 	100	%
	LBB Capitol Hill LLC	 	WA, USA	 	 	50	%
	LBB Franchising LLC	 	NC, USA	 	 	100	%
	LBB Green Lake LLC	 	OR, USA	 	 	50	%
	LBB Hassalo LLC	 	OR, USA	 	 	80	%
	LBB Lake Oswego LLC	 	OR, USA	 	 	100	%
	LBB Magnolia Plaza LLC	 	NC, USA	 	 	100	%
	LBB Multnomah Village LLC	 	OR, USA	 	 	50	%
	LBB Platform LLC	 	OR, USA	 	 	80	%
	LBB Progress Ridge LLC	 	OR, USA	 	 	50	%
	LBB Rea Farms LLC	 	NC, USA	 	 	50	%
	LBB Wallingford LLC	 	WA, USA	 	 	50	%
	Noveno LLC	 	OR, USA	 	 	100	%
	Octavo LLC	 	OR, USA	 	 	100	%
	Primero LLC	 	OR, USA	 	 	100	%
	Quinto LLC	 	OR, USA	 	 	100	%
	Segundo LLC	 	OR, USA	 	 	100	%
	Septimo LLC	 	OR, USA	 	 	100	%
	Sexto LLC	 	OR, USA	 	 	100	%

 

    	 

    	 

    

 

	Just Fresh	 	 	 	 	 
	JF Franchising Systems, LLC	 	NC, USA	 	 	56	%
	JF Restaurants, LLC	 	NC, USA	 	 	56	%
	 	 	 	 	 	 	 
	West Coast Hooters	 	 	 	 	 	 
	Jantzen Beach Wings, LLC	 	OR, USA	 	 	100	%
	Oregon Owl’s Nest, LLC	 	OR, USA	 	 	100	%
	Tacoma Wings, LLC	 	WA, USA	 	 	100	%
	 	 	 	 	 	 	 
	South African Entities	 	 	 	 	 	 
	Chanticleer South Africa (Pty) Ltd.	 	South Africa	 	 	100	%
	Hooters Emperors Palace (Pty.) Ltd.	 	South Africa	 	 	88	%
	Hooters On The Buzz (Pty) Ltd	 	South Africa	 	 	95	%
	Hooters PE (Pty) Ltd	 	South Africa	 	 	100	%
	Hooters Ruimsig (Pty) Ltd.	 	South Africa	 	 	100	%
	Hooters SA (Pty) Ltd	 	South Africa	 	 	78	%
	Hooters Umhlanga (Pty.) Ltd.	 	South Africa	 	 	90	%
	Hooters Willows Crossing (Pty) Ltd	 	South Africa	 	 	100	%
	 	 	 	 	 	 	 
	European Entities
 
	 	 	 	 	 	 
	Chanticleer Holdings Limited	 	Jersey	 	 	100	%
	West End Wings LTD	 	United Kingdom	 	 	100	%
	 	 	 	 	 	 	 
	Inactive Entities
 American Roadside Cross Hill, LLC
	 	NC, USA	 	 	100	%
	Avenel Financial Services, LLC	 	NV, USA	 	 	100	%
	Avenel Ventures, LLC	 	NV, USA	 	 	100	%
	BGR Cascades, LLC	 	VA, USA	 	 	100	%
	BGR Chevy Chase, LLC	 	MD, USA	 	 	100	%
	BGR Old Town, LLC	 	VA, USA	 	 	100	%
	BGR Potomac, LLC	 	MD, USA	 	 	100	%
	BT’s Burgerjoint Biltmore, LLC	 	NC, USA	 	 	100	%
	BT’s Burgerjoint Promenade, LLC	 	NC, USA	 	 	100	%
	Chanticleer Advisors, LLC	 	NV, USA	 	 	100	%
	Chanticleer Finance UK (No. 1) Plc	 	United Kingdom	 	 	100	%
	Chanticleer Investment Partners, LLC	 	NC, USA	 	 	100	%
	Dallas Spoon Beverage, LLC	 	TX, USA	 	 	100	%
	Dallas Spoon, LLC	 	TX, USA	 	 	100	%
	DineOut SA Ltd.	 	England	 	 	89	%
	Hooters Brazil	 	Brazil	 	 	100	%

 

    	 

    	 

    

 

LIENS

 

The
Company has three term loans with Paragon Bank, all of which are collateralized by all assets of the Company and personally guaranteed
by the Chief Executive Officer. The Company’s assets are also collateral for 8% Secured Debentures in aggregate principal
amount of $6 million and 6% Secured Debentures in aggregate principal amount of $3 million. Furthermore, the 8% Debenture holders
have a right to purchase Little Big Burger chain in the event of default for $6,500,000.

 

Schedule
3.1 (aa)

 

	 	 	December
    31, 2017	 	 	December
    31, 2016	 
	Note
                                                                                       Payable, due December 31, 2018, net of discount of $1,173,390 and $0, respectively
	 	$	4,826,610	 	 	$	-	 
	Note
    Payable due January 2017	 	 	-	 	 	 	5,000,000	 
	Notes
    Payable Paragon Bank	 	 	572,276	 	 	 	811,205	 
	Note
    Payable	 	 	75,000	 	 	 	-	 
	Receivables
    financing facilities	 	 	76,109	 	 	 	161,899	 
	Mortgage
    Note, South Africa, due July 2024	 	 	-	 	 	 	215,962	 
	Bank
    overdraft facilities , South Africa, annual renewal	 	 	164,619	 	 	 	124,598	 
	Equipment
    financing arrangements , South Africa	 	 	27,297	 	 	 	145,430	 
	Total
    long-term debt	 	$	5,741,911	 	 	 	6,459,094	 

 

	 	 	December
    31, 2017	 	 	December
    31, 2016	 
	6%
    Convertible notes payable due June 2018	 	$	3,000,000	 	 	$	3,000,000	 
	Dis
    counts on above convertible note	 	 	-	 	 	 	-	 
	8%
    Convertible notes payable due March 2019	 	 	100,000	 	 	 	100,000	 
	Premium
    on above convertible note	 	 	6,128	 	 	 	-	 
	8%
    Convertible notes payable due March 2019	 	 	100,000	 	 	 	150,000	 
	Premium
    (dis count) on above convertible note	 	 	6,128	 	 	 	(46,936	)
	8%
    Convertible notes payable due March 2019	 	 	-	 	 	 	475,000	 
	Total
    Convertible notes payable	 	 	3,212,256	 	 	 	3,678,064	 

 

    	 

    	 

    

 

SCHEDULE
3.1 (g)

 

	 	 	As
    of December 31, 2017	 	 	ProForma	 
	 	 	 	 	 	 	 
	Cash	 	$	438	 	 	$	1,788	 
	LONG
    TERM LIABILITIES	 	 	3,000	 	 	 	3,000	 
	Convertible
    notes payable	 	 	 	 	 	 	 	 
	Notes
                                         payable, less current portion, net of debt discount

                                                                           and
                                         deferred financing costs of $2,161
	 	 	5,742	 	 	 	5,742	 
	Redeemable
                                         preferred stock, 62,876 shares issued and

                                                                           outstanding,
                                         net of discount of $202
	 	 	640	 	 	 	640	 
	TOTAL
    LONG-TERM LIABILITIES	 	 	9,382	 	 	 	9,382	 
	Stockholders’
    equity:	 	 	 	 	 	 	 	 
	Preferred
    stock: no par value; authorized 5,000,000 shares	 	 	-	 	 	 	-	 
	Common
                                         stock: $0.0001 par value; authorized 45,000,000

                                                                           shares;
                                         issued and outstanding 3,045,809
	 	 	0.3	 	 	 	0.3	 
	Additional
    paid in capital	 	 	60,750	 	 	 	62,100	 
	Other
    comprehensive income (loss)	 	 	(934	)	 	 	(934	)
	Non-controlling
    interest	 	 	7
                                         82	 	 	 	782	 
	Accumulated
    deficit	 	 	(49,109	)	 	 	(49,109	)
	TOTAL
    STOCKHOLDERS’ EQUITY	 	 	1
                                         1, 489	 	 	 	12,
                                         839	 
	TOTAL
    CAPITALIZATION	 	$	20,871	 	 	$	22,221	 

 

Proforma
adjustments assume issuance of 400,000 shares of common stock at $3.50 and net proceeds of $1.35 million after fees and commissions

 

Options
and Warrants

 

The
Company’s shareholders have approved the Chanticleer Holdings, Inc. 2014 Stock Incentive Plan (the “2014 Plan”),
authorizing the issuance of options, stock appreciation rights, restricted stock awards and units, performance shares and units,
phantom stock and other stock-based and dividend equivalent awards. Pursuant to the approved 2014 Plan, 4,000,000 shares have
been approved for grant.

 

As
of December 31, 2017, the Company had issued 87,678 restricted and unrestricted shares on a cumulative basis under the plan pursuant
to compensatory arrangements with employees, board members and outside consultants. No employee stock options have been issued
or are outstanding as of December 31, 2017 and December 31, 2016. The Company issued 15,000 restricted stock units to employees
during 2016. Approximately 297,322 shares remained available for grant in the future.

 

The
Company also has issued warrants to investors in connection with financing transactions. Fair value of any warrant issuances is
valued utilizing the Black-Scholes model. The model includes subjective input assumptions that can materially affect the fair
value estimates. The expected stock price volatility for the Company’s warrants was determined by the average of the historical
volatilities for the Company’s common stock.

 

A
summary of the warrant activity during the years ended December 31, 2017 and 2016 is presented below:

 

    	 

    	 

    

 

	 	 	Number of Warrants	 	 	Weighted Average Exercise Price	 	 	Weighted Average Remaining Life	 
	Outstanding January 1, 2017	 	 	922,203	 	 	$	49.80	 	 	 	1.7	 
	Granted	 	 	1,699,857	 	 	$	3.50	 	 	 	-	 
	Exercised	 	 	-	 	 	 	-	 	 	 	-	 
	Forfeited	 	 	(259,445	)	 	 	51.01	 	 	 	-	 
	Outstanding December 31, 2017	 	 	2,362,615	 	 	$	16.34	 	 	 	2.2	 
	Exercisable December 31, 2017	 	 	2,362,615	 	 	$	16.34	 	 	 	2.2	 

 

SCHEDULE 3.1(i)

 

NONE

 

SCHEDULE 3.1(l)

 

NONE

 

    	 

    	 

    

 

SCHEDULE
3.1(j)

 

On
March 26, 2013, our South African operations received Notice of Motion filed in the Kwazulu- Natal High Court, Durban, Republic
of South Africa, filed against Rolalor (PTY) LTD (“Rolalor”) and Labyrinth Trading 18 (PTY) LTD (“Labyrinth”)
by Jennifer Catherine Mary Shaw (“Shaw”). Rolalor and Labyrinth were the original entities formed to operate the Johannesburg
and Durban locations, respectively. On September 9, 2011, the assets and the then-disclosed liabilities of these entities were
transferred to Tundraspex (PTY) LTD (“Tundraspex”) and Dimaflo (PTY) LTD (“Dimaflo”), respectively. The
current entities, Tundraspex and Dimaflo are not parties in the lawsuit. Shaw is requesting that the Respondents, Rolalor and
Labyrinth, be wound up in satisfaction of an alleged debt owed in the total amount of R4,082,636 (approximately $480,000). The
two Notices were defended and argued in the High Court of South Africa (Durban) on January 31, 2014. Madam Justice Steryi dismissed
the action with costs on May 5, 2014. Ms. Shaw appealed this decision and in December 2016, the Court dismissed the Labyrinth
case with costs payable to the Company, and allowed the Rolalor case to proceed to liquidation. The Company did not object to
the proposed liquidation of Rolalor as the entity has no assets and the Company does not expect there to be any material impact
on the Company. No amounts have been accrued as of December 31, 2017 or 2016 in the accompanying consolidated balance sheets.

 

On
January 28, 2016, our Just Fresh subsidiary was notified that it had been served with a copyright infringement complaint, Kevin
Chelko Photography, Inc. f. JF Restaurants, LLC, Case No. 3:13-CV-60-GCM (W.D. N.C.). The claim was filed in the United States
District Court for the Western District of North Carolina Charlotte Division and seeks unspecified damages related to the use
of certain photographic assets allegedly in violation of the United States copyright laws. On January 19, 2017, the case was dismissed
with no damages being awarded and no amounts have been reflected in the accompanying consolidated balance sheets as of December
31, 2017 or 2016.

 

Prior
to the Company’s acquisition of Little Big Burger, a class action lawsuit was filed in Oregon by certain current and former
employees of Little Big Burger asserting that the former owners of Little Big Burger failed to compensate employees for overtime
hours and also that an employee had been wrongfully terminated. The plaintiffs and defendants agreed to enter into a settlement
agreement pursuant to which the former owners of Little Big Burger will pay a gross settlement of up to $675,000, inclusive of
plaintiffs’ attorney’s fees of $225,000. This settlement was approved by the court and all settlement payments were
distributed by the sellers and this matter closed prior to December 31, 2017.

 

In
connection with our acquisition of Little Big Burger, the sellers agreed that the 1,619,646 shares of the Company’s common
stock certain of the sellers received from the Company and an additional $200,000 in cash would be held in escrow until such time
as the litigation was fully resolved. The Company reflected the $675,000 settlement amount in accrued liabilities, with an offsetting
asset in other current assets, in the accompanying consolidated balance sheets as of December 31, 2016. As of December 31, 2017,
the lawsuit had been fully resolved and all amounts paid by the sellers. Accordingly, no amounts are reflected in the Company’s
consolidated balance sheet as of December 31, 2017.

 

    	 

    	 

    

 

SCHEDULE
3.1(v)

 

NONE

 

    	 

    	 

    

 

EXHIBIT
A

 

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

 

COMMON
STOCK PURCHASE WARRANT

 

CHANTICLEER
HOLDINGS, INC.

 

	Warrant
                                         Shares: _______________

	Issue
    Date: May ___, 2018
	 	Initial
    Exercise Date: November ___, 2018

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, ________________ or its
assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after November , 2018 (the “Initial Exercise Date”)
and on or prior to the close of business on the five year anniversary of the Initial Exercise Date (the “Termination
Date”) but not thereafter, to subscribe for and purchase from Chanticleer Holdings, Inc., a Delaware corporation
(the “Company”), up to_________ shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common
Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in
Section 2(b).

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that
certain Securities Purchase Agreement (the “Purchase Agreement”), dated May __ , 2018, among the Company
and the purchasers signatory thereto.

 

Section
2. Exercise.

 

a)
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any
time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such
other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the
Holder appearing on the books of the Company) of a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise
in the form annexed hereto.

 

    	 

    	 

    

 

Within
the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined
in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price
for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States
bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise.

 

The
Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant
Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant
to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company.
Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder
shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable
number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased
and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day
of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason
of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant
Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b)
Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be $4.50, subject to adjustment
hereunder (the “Exercise Price”).

 

c)
Cashless Exercise. If at any time after the six month anniversary of the Initial Exercise Date, there is no effective registration
statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant
may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall
be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	 	(A)	=
    as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such
    Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or
    (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading
    hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading
    Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable
    Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P.
    as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed
    during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter pursuant to Section
    2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a
    Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of
    “regular trading hours” on such Trading Day;
	 	 	 
	 	(B)	=
    the Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 
	 	(X)	=
    the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
    if such exercise were by means of a cash exercise rather than a cashless exercise.

 

    	 

    	 

    

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period
of the Warrants being exercised may be tacked on to the holding period of the Warrant Shares. The Company agrees not to take any
position contrary to this Section 2(c).

 

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

 

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

 

d)
Mechanics of Exercise.

 

i.
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company
is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and
otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or
its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified
by the Holder in the Notice of Exercise by the date that is the earlier of (i) the earlier of (A) two (2) Trading Days after the
delivery to the Company of the Notice of Exercise and (B) one (1) Trading Day after delivery of the aggregate Exercise Price to
the Company and (ii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of
the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise,
the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to
which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the
aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) three Trading Days
and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. As
used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading
Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the
Notice of Exercise.

 

    	 

    	 

    

 

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

 

iii.
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant
to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. If the Company fails to cause the Transfer
Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise
on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open
market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price
(including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying
(1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue
times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the
Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored
(in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would
have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares
of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount
of such loss.

 

    	 

    	 

    

 

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

 

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

 

e)
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not
have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect
to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates, such other
Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as
defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder,
its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant
with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be
issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its
Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities
of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.
Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged
by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of
the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent
that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates or Attribution Parties) and of which portion of this Warrant
is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be
the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates or Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial
Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition,
a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding
shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s
most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by
the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally or in
writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of
Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this
Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of
Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of
the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise
of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions
of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the
Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant
held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation
will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall
be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this
paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein
contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Warrant.

 

    	 

    	 

    

 

Section
3. Certain Adjustments.

 

a)
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or
otherwise makes a distribution or distributions to the record holders of any class of shares of Common Stock , (ii) subdivides
outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares or (iv) issues by reclassification of shares of the Common Stock any shares
of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator
shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and
of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number
of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this
Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the
record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b)
[RESERVED]

 

    	 

     

    

 

c)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will
be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could
have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without
regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before
the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result
in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase
Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent)
and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto
would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

d)
Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend
or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of
capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options
by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a
record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common
Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the
Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation,
then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding
the Beneficial Ownership Limitation).

 

    	 

    	 

    

 

e) Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more
related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the
Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of
all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase
offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of
Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been
accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or
more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities,
cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or
share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more
than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or
other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any
subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been
issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder
(without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of
the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional
consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a
holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental
Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such
exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are
given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be
given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is
not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under
this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written
agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for
this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and
substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity
(or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an
exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the
relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital
stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value
of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory
in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall
succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this
Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor
Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under
this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the
Company herein. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any
Successor Entity shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the
consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash
equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such
Fundamental Transaction ; provided, however, that, if the Fundamental Transaction is not within the
Company’s control, including not approved by the Company’s Board of Directors, Holder shall only be entitled to
receive from the Company or any Successor Entity, as of the date of consummation of such Fundamental Transaction, the same
type or form of consideration (and in the same proportion), at the Black Scholes Value (as defined below) of the unexercised
portion of this Warrant, that is being offered and paid to the holders of Common Stock of the Company in connection with the
Fundamental Transaction, whether that consideration be in the form of cash, stock or any combination thereof, or whether the
holders of Common Stock are given the choice to receive from among alternative forms of consideration in connection with the
Fundamental Transaction. “Black Scholes Value” means the value of this Warrant based on the Black and
Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a
risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public
announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the
greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately
following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such
calculation shall be the sum of the price per share being offered in cash, if any, plus the value of any non-cash
consideration, if any, being offered in such Fundamental Transaction and (D) a remaining option time equal to the time
between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The
payment of the Black Scholes Value will be made by wire transfer of immediately available funds within five Business Days of
the Holder’s election (or, if later, on the effective date of the Fundamental Transaction). The Company shall cause the
Successor Entity to assume in writing all of the obligations of the Company under this Warrant and the other Transaction
Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance
reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental
Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the
Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is
exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on
the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise
price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital
stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the
consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon
the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that
from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power
of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company herein.

 

    	 

    	 

    

 

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

 

g)
Notice to Holder.

 

i.
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the
Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment
and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii. Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock,
(C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for
or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company
shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share
exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize
the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the
Company shall cause to be delivered by facsimile or email to the Holder at its last address, facsimile number or email
address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record
or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of
such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the
holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to
be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record
shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice
or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be
specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-
public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the
period commencing on the date of such notice to the effective date of the event triggering such notice except as may
otherwise be expressly set forth herein.

 

    	 

    	 

    

 

Section
4. Transfer of Warrant.

 

a)
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d)
hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office
of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached
hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making
of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically
surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender
this Warrant to the Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning
this Warrant full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase
of Warrant Shares without having a new Warrant issued.

 

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

 

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

 

    	 

    	 

    

 

d)
Transfer Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant,
the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities
Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions
or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

e)
Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant
and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a
view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

Section
5. Miscellaneous.

 

a)
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other
rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth
in Section 3.

 

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

 

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

 

    	 

    	 

    

 

d)
Authorized Shares.

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature
Page Follows)

 

    	 

    	 

    

 

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

 

	 	CHANTICLEER
    HOLDINGS, INC.
	 	 	 
	 	By:	
	 	Name:	Michael
    Pruitt
	 	Title:	Chief
    Executive Officer

 

    	 

    	 

    

 

NOTICE
OF EXERCISE

 

TO:
CHANTICLEER HOLDINGS, INC.

 

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

 

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

 

[  ]
in lawful money of the United States; or

 

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

 

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

 

_____________________

 

The
Warrant Shares shall be delivered to the following DWAC Account Number:

 

_____________________

 

_____________________

 

_____________________

 

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

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: __________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity: ____________________________________________________

Name
of Authorized Signatory: _______________________________________________________________________

Title
of Authorized Signatory: ________________________________________________________________________

Date:
__________________________________________________________________________________________

 

    	 

    	 

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

(To
assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 	 
	 	 	(Please
    Print)
	Address:	 	 
	 	 	(Please
    Print)
	Phone
    Number:	 	
	Email
    Address	 	
	Dated:
    _______________ ___, _____	 	 
	Holder’s
    Signature: _______________	 	 
	Holder’s
    Address: ________________Exhibit

Execution Version        

	
					
	Confidential Materials omitted and filed with the 
Securities and Exchange Commission. Double asterisks denote omissions.

	Exhibit 10.3

SPK-9001 MANUFACTURE AND SUPPLY AGREEMENT
This SPK-9001 MANUFACTURE AND SUPPLY AGREEMENT (this “Agreement”) is made as of February 16, 2018 (the “Effective Date”), by and between Pfizer Inc., a corporation organized and existing under the laws of the State of Delaware, with offices at 235 East 42nd Street, New York, New York 10017 (“Customer”), Spark Therapeutics, Inc., a corporation organized and existing under the laws of the State of Delaware, with offices at 3737 Market Street, Suite 1300, Philadelphia, Pennsylvania 19104 (“Supplier”).  Customer and Supplier may be referred to herein individually as a “Party” and collectively as the “Parties”.
WHEREAS, Customer and Supplier are Parties to a License Agreement, dated as of December 6, 2014, as amended from time to time (the “License Agreement”), under which Supplier licensed and Customer acquired and received certain rights in the Compounds and Licensed Products as further defined in that License Agreement; and
WHEREAS, Customer desires to obtain the Product Deliverable (as defined below) for use in the Manufacture of certain Licensed Product and Supplier desires to provide Customer with such Product, in accordance with the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the promises and mutual covenants expressed herein, and intending to be legally bound thereby, the Parties hereby agree as follows:
1.  DEFINITIONS
Terms defined in the preamble of and elsewhere in this Agreement have the meanings set forth therein, capitalized terms not otherwise defined herein shall have the meaning given to such terms in the License Agreement, and the following terms have the meanings set forth below:
		
	1.1
	“Batch” means an initiation and completion of a discrete batch of Product that is intended to be of uniform character and quality, within specified limits, and is produced from a single cell bank vial and cultured into weekly sublots, but not exceeding its cell age limit.

		
	1.2
	“Current Good Manufacturing Practices” or “cGMP” all applicable standards and Relevant Laws relating to Manufacturing practices for products (including ingredients, testing, storage, handling, intermediates) promulgated by the U.S. Food and Drug Administration and any other U.S. or EU Governmental Authority (including EU or member state level) having jurisdiction, including, but not limited to, standards in the form of Relevant Laws, guidelines, advisory opinions and compliance policy guides, and current interpretations of the applicable authority or agency thereof (as applicable to pharmaceutical and biological products and ingredients), as the same may be updated, supplemented or amended from time to time, in each case as applicable to the Product Deliverable and the Facility, taking 

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into account the stage of development of the Product.
		
	1.3
	“Facility” means Suite Two and the solution preparation area of Supplier’s Manufacturing facility located at 3737 Market Street, Philadelphia, PA, used by Supplier in the Manufacture of Product.

		
	1.4
	“Interim Release” has the meaning set forth in Schedule A.

		
	1.5
	“Manufacturing Committee” has the meaning set forth in Section 2.3.

		
	1.6
	“Manufacturing Start Date” has the meaning set forth in Schedule A.

		
	1.7
	“Minimum Product Deliverable Volume” has the meaning set forth in Schedule A.

		
	1.8
	“Non-Complying Product” has the meaning set forth in Section 4.4(b).

		
	1.9
	“Personnel” means all employees of Supplier and its Affiliates that perform services pursuant to this Agreement.

		
	1.10
	“Process 2 Product” has the meaning set forth in Schedule D.

		
	1.11
	“Product” means SPARK-9001 bulk drug substance Manufactured by Supplier, as more particularly described in the Specifications.

		
	1.12
	“Product Deliverable” means one Batch of Product, as more particularly described in Schedule A. 

		
	1.13
	“Product Materials” means all raw materials, packaging materials, other materials and components needed for Manufacturing the Product Deliverable.

		
	1.14
	“Records” means any books, documents, accounting procedures and practices and other data, in the form that Supplier maintains such information, of all matters relating to Supplier’s performance of its obligations under this Agreement that enable Supplier to demonstrate compliance with such obligations, including Supplier’s compliance with Relevant Laws provided Supplier documents all data generated in Records and attests to verification of such Records to Customer as reasonably requested by Customer.

		
	1.15
	“Relevant Law” means any applicable law, statute, rule, regulation, order, judgment, or ordinance of any [**], the applicability of which to the Product, in each case, may vary depending on the stage of development of the Product and other relevant factors.

		
	1.16
	“Second Payment” has the meaning set forth in Schedule A.

		
	1.17
	“Specifications” means those performance standards required by Customer as described in Schedule B.

		
	1.18
	“Supplier Release” has the meaning set forth in Schedule A.

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2.      SUPPLY OF THE DEVELOPMENT SUPPLIES
		
	2.1
	Product.

Pursuant the terms of this Agreement, Supplier shall Manufacture and deliver, and Customer shall purchase, the Product Deliverable.  
		
	2.2
	Supply; Delivery; and Acceptance.

		
	a)
	Supply.  Supplier shall make available at all times until Interim Release the Manufacturing capacity at Supplier’s Facility necessary to Manufacture the Product Deliverable. Supplier shall Manufacture the Product Deliverable in accordance with the Specifications, applicable cGMPs and Relevant Laws.  Supplier will also send to Customer any agreed upon samples for Customer analytics as set forth in Schedule A.  

		
	b)
	Shipping.  Upon the Manufacture of the Product Deliverable (or as applicable analytical samples at any time, for clarity including before Interim Release, pursuant to Schedule A), Supplier will release the Product Deliverable (or as applicable analytical samples) to Customer’s designated carrier for Interim Release to [**] (or, in the case of analytical samples, as applicable, to Customer or the applicable designee of Customer) on an Ex Works (Incoterms 2010) Supplier’s dock basis.  

		
	c)
	Title.  Title to Product Deliverable (or analytical samples) and risk of loss or damage shall pass to Customer when the Product Deliverable (or analytical samples) is released pursuant to Section 2.2(b) above. 

		
	d)
	Acceptance of Batch Procedures.  Upon Interim Release, Customer will inspect the Product Deliverable and confirm that the quantity of Product Deliverable released by Supplier matches the quantity of Product Deliverable which was to be delivered.

		
	2.3
	Manufacturing Committee.

The Parties will establish a manufacturing committee (the “Manufacturing Committee”) to oversee all activities relating to Manufacturing of the Product Deliverable. The Manufacturing Committee shall be composed of representatives from each Party in the following areas of expertise: (i) alliance management/project management, (ii) quality control/analytical development, (iii) Manufacturing / bioprocess development and (iv) quality assurance.  The Manufacturing Committee will meet and manage the project schedule set forth in Schedule A.  
		
	2.4
	Timing of the Supply of Product Deliverable.  

Notwithstanding anything to the contrary herein, the Manufacturing Start Date and the outside date for Supplier Release are firm.  Supplier agrees to use its Commercially Reasonable Efforts to start the Manufacture of the Batch by the Manufacturing Start Date, complete the Manufacture of the Product Deliverable, enable shipment of the Product 

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Deliverable to [**], and provide the Customer with the analytical results of the Product Deliverable by the dates set forth in Schedule A.  In addition, the Parties acknowledge that the dates set forth in Schedule A for determining Customer's obligation to pay the Second Payment are intended to be firm dates.
3.      PRICE AND PAYMENT
		
	3.1
	Price.

Customer shall purchase the Product Deliverable from Supplier at the Price and in accordance with the terms of this Agreement, wherein “Price” shall have the meaning set forth in Schedule A.  
		
	3.2
	Taxes.

The Price includes all taxes except such sales and use taxes which Supplier is required by Relevant Law to collect from Customer.  Such taxes, if any, will be separately stated in Supplier's invoice and will be paid by Customer to Supplier unless Customer provides evidence of an exemption to Supplier.  Supplier shall be solely responsible for the timely payment of all such taxes to the applicable taxing authority, and Supplier shall pay (without reimbursement by Customer), and shall hold Customer harmless from and against, any penalties, interest or additional taxes that may be levied or assessed as a result of the failure or delay of Supplier to pay any such taxes.
4.      MANUFACTURING STANDARDS AND QUALITY ASSURANCE.
		
	4.1
	Quality Agreement.

The Parties agree to comply with the requirements and provisions set forth in the Quality Agreement attached hereto as Schedule C and made a part hereof.  In the event of a conflict between the terms of the Quality Agreement and the terms of this Agreement, the terms of this Agreement shall prevail except with respect to final disposition of the Product Deliverable as set forth in the Quality Agreement, unless the Parties explicitly specify in the Quality Agreement that a particular provision of the Quality Agreement is to control over a particular provision in this Agreement.
		
	4.2
	Requests for Information.

Subject to Section 8.1, Supplier, at no cost to Customer, shall provide Records relating to the Manufacture of the Product Deliverable, as reasonably requested by Customer, to assist Customer in its preparation for subsequent EOP2 Meetings, its preparation of any filings with a Regulatory Authority relating to the Compound or Licensed Product and its preparation for or of any other meeting or communication with any Regulatory Authority relating to the Compound or Licensed Product.    
		
	4.3
	Quality Tests and Checks.

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Supplier shall perform all raw material, in-process, and bulk finished product tests substantially consistent with those same tests performed for the Process 2 Product made by Supplier in 2016, and checks required to assure the quality of the Product Deliverable and any tests or checks required by the Quality Agreement and Relevant Laws.  Supplier is responsible for obtaining inventory for these tests and is also responsible for providing all necessary technical, quality and operational resources.  All tests and test results shall be performed, documented and summarized by Supplier in accordance with the Quality Agreement, Customer’s reasonable instructions and Relevant Laws. 
		
	4.4
	Non-Complying Product.

		
	a)
	Supplier shall use the same or similar source of Product Materials as used in the Process 2 Product made by Supplier in 2016, including GMP-sourced grade plasmids from [**] in the Manufacture of the Product Deliverable; provided any changes in source from those used in the Manufacture of Process 2 Product in 2016, with the exception of plasmids – the source of which will not change, have been appropriately documented and managed under Supplier’s change management and vendor or supplier qualification programs.

		
	b)
	Supplier shall not release any Product Deliverable for shipment to Customer that, at the time of such shipment, does not conform to the Specifications, Relevant Law and all warranties and requirements set forth in this Agreement including the Quality Agreement (“Non-Complying Product”), without the prior written approval of Customer. 

		
	c)
	Supplier shall quarantine and properly tag all Non-Complying Product.  Supplier shall promptly submit to Customer a report detailing the nature of such non-compliance, including the investigation and testing done and Supplier’s recommended disposition.  Supplier shall provide any additional information regarding such Non-Complying Product as may reasonably be requested by Customer.  Customer shall have the final determination as to whether or not the Product Deliverable complies with the Specifications, provided that if Customer determines that the Product complies with the Specifications after Supplier’s delivery of a report detailing non-compliance as required by this Section 4.4(c), Customer may not thereafter reject the Product Deliverable after Supplier Release and Supplier shall have no indemnity obligation or other liability, under Section 4.4(e) or otherwise, with respect to such Product Deliverable.  

		
	d)
	All Non-Complying Product and all Product Materials that are not able to be used in the Manufacture of the Product Deliverable, shall be removed (if applicable) and disposed of by Supplier in a manner reasonably intended to prevent theft, in accordance with all Relevant Laws and as reasonably approved in advance by Customer (such disposal cost to be at the expense of Supplier).  Subject to Section 8.1, Supplier shall make all documentation relating to such disposition available to Customer upon Customer’s reasonable request.  Supplier shall not sell for salvage or for any other purpose any Non-Complying Product, without the prior written 

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approval of Customer.  Supplier shall render all Non-Complying Product unusable prior to disposal.  
		
	e)
	Supplier shall indemnify, defend and hold harmless the Pfizer Indemnified Parties from and against any and all Liabilities that the Pfizer Indemnified Party may be required to pay to one or more Third Parties in respect of claims resulting from or arising out of the Manufacture of the Product Deliverable or Customer’s use of the Product Deliverable to the extent such Liability arises as a result of (i) such Product Deliverable being Non-Complying Product or (ii) any other manufacturing defect in the Product Deliverable.   The foregoing indemnity shall be Customer’s sole remedy, and Supplier’s sole indemnification obligation with respect to the Product Deliverable provided hereunder, including any Non-Complying Product.     

		
	4.5
	Diversion Issues.

Supplier shall promptly notify Customer if at any time Supplier believes that any Product Deliverable has been lost or stolen, or any Product Deliverable has been rendered unsalable.
		
	4.6
	Segregation of Restricted Compounds.

Supplier shall not use any equipment, dedicated change parts, molds or tooling that are used to Manufacture the Product Deliverable to Manufacture other products containing any of the following compounds: (i) androgens, estrogens and progestin or (ii) herbicides, pesticides, rodenticides, agrochemicals, penicillin, cephalosporin, and beta lactams.  Supplier shall not Manufacture any penicillins, cephalosporins or beta lactams in the same Facility as the Product Deliverable.
5.      REPRESENTATIONS, WARRANTIES AND COVENANTS
		
	5.1
	Product Deliverable.

Supplier represents, warrants and covenants to Customer that the Product Deliverable supplied by Supplier to Customer under this Agreement: (i) shall be Manufactured, packaged, labeled, handled, stored and shipped in compliance with all Relevant Laws including, without limitation, cGMPs and in accordance with the Quality Agreement and this Agreement; (ii) shall be Manufactured, packaged, labeled, handled, stored and shipped in accordance with, and shall conform to, the Specifications; (iii) shall not be adulterated or misbranded within the meaning of Sections 501 and 502, respectively, of the U.S. Federal Food, Drug, and Cosmetic Act and any other Relevant Laws; and (iv) shall be free from defects in material and workmanship.
		
	5.2
	Facility.

Supplier represents, warrants and covenants to Customer that the Facility and all equipment utilized in the Manufacture and supply of Product Deliverable hereunder by Supplier shall, during the Term of this Agreement, be maintained in good operating condition and shall be 

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maintained and operated in accordance with all Relevant Laws and that the appropriate controls are in place, including precautions against release of biologically active materials, to assure safe Manufacture and transport of all Product Deliverable and Product Materials throughout the supply chain.
		
	5.3
	Title to Product Deliverable.

Supplier represents, warrants and covenants to Customer that Supplier has good title to all Product Deliverable supplied to Customer pursuant to this Agreement and shall pass such title to the Product Deliverable at the time of delivery to Customer free and clear of any security interests, liens, or other encumbrances.
		
	5.4
	Compliance with Laws.

		
	(a)
	Supplier represents, warrants and covenants to Customer that Supplier is in compliance and shall continue to comply, and shall cause its Personnel to comply, with all Applicable Law, except for GMP compliance, which shall be governed by Relevant Laws, and Supplier has and shall continue to have, and shall cause its Personnel to have, all professional licenses, consents, authorizations, permits, and certificates, and shall have and shall cause Supplier’s Personnel to have completed all registrations or made such notifications as required by Relevant Law for its performance of this Agreement.  

		
	(b)
	Customer is an equal opportunity employer and federal contractor.  Consequently, the Parties agree that, as applicable, they will abide by the requirements of Executive Order 11246, 41 CFR 60-1.4(a); the Vietnam Era Veterans’ Readjustment Assistance Act, 41 CFR 60-300.5(a); and Section 503 of the Rehabilitation Act of 1973, 41 CFR 60-741.5(a), and that these laws are incorporated herein by reference.  These regulations prohibit discrimination against qualified individuals based on their status as protected veterans or individuals with disabilities, and prohibit discrimination against all individuals based on their race, color, religion, sex, sexual orientation, gender identity, or national origin.  These regulations require that covered prime contractors and subcontractors take affirmative action to employ and advance in employment individuals without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, protected veteran status or disability.  The Parties also agree that, as applicable, they will abide by the requirements of Executive Order 13496 (29 CFR Part 471, Appendix A to Subpart A), relating to the notice of employee rights under federal labor laws.

(c)    Supplier further represents, warrants and covenants to Customer that:
		
	i.
	with respect to any Product Deliverable, payments or services provided under this Agreement, it has not taken and will not during the Term take any action directly or indirectly to offer, promise or pay, or authorize the offer or payment of, any money or anything of value in order to improperly or corruptly seek 

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to influence any Government Official or any other person in order to gain an improper advantage, and has not accepted, and will not accept in the future such payment;
		
	ii.
	it complies with the laws and regulations of the countries where it operates, including anti-bribery and anti-corruption laws, accounting and record keeping laws, and laws relating to interactions with healthcare professionals or healthcare providers and Government Officials;

		
	iii.
	to its knowledge, it and each of its Affiliates has been and will, for the Term, be in compliance with all applicable global trade laws, including those related to import controls, export controls or economic sanctions, and it will cause each of its Affiliates to remain in compliance with the same during the Term;

		
	iv.
	to its knowledge, except to the extent permissible under United States Law, neither it nor any of its Affiliates has, on its own behalf or in acting on behalf of any other Person, directly or indirectly engaged with, and will not for the Term, directly or indirectly engage in any transactions, or otherwise deal with, any country or Person targeted by United States, European Union, United Kingdom or other relevant economic sanctions laws in connection with any activities related to the Party’s interaction with the other Party, including those contemplated under this Agreement; and

		
	v.
	it is, as between the Parties, solely responsible to ensure such compliance by it and its Affiliates.

		
	5.5
	Claims and Conditions.

Supplier represents and warrants to Customer that as of the Effective Date, there is no pending or threatened governmental enforcement action or material private claim against Supplier, or any environmental conditions, events or circumstances that are reasonably likely to limit, impede or otherwise jeopardize the Supplier’s ability to meet its obligations under this Agreement.
		
	5.6
	Safety.

Supplier shall be responsible for the health and safety of its Personnel while present at the Facility.  Supplier shall comply with all Relevant Laws relating to health and safety.
		
	5.7
	Responsible Supply Chain.

Supplier covenants that it will perform its obligations under this Agreement in a manner consistent with all of the Pharmaceutical Industry Principles for Responsible Supply Chain Management, as codified as of the Effective Date at http://www.pharmaceuticalsupplychain.org.  In addition, Supplier has and will continue to have a documented, comprehensive environmental policy which addresses, among other things, 

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its ongoing commitment to environmental protection, sustainability, pollution prevention, waste reduction, and energy and water efficiency.
		
	5.8
	Restricted Parties.  

Supplier is not designated as a Restricted Party (as defined below).  Supplier has not and will not use, in any capacity in the performance of this Agreement, the services of any person who has been designated as a Restricted Party.  Supplier will immediately notify Customer in the event that Supplier or any of its Personnel becomes designated as a Restricted Party during the Term of this Agreement.  As used herein, “Restricted Party” means any individual or entity on any of the following lists: the Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List, and the Sectoral Sanctions Identifications List, as administered by the U.S. Department of the Treasury Office of Foreign Assets Control; the U.S. Denied Persons List, the U.S. Entity List, and the U.S. Unverified List, all administered by the U.S. Department of Commerce the List of Excluded Individuals / Entities, as published by the U.S. Health and Human Services – Office of Inspector General; any lists of prohibited or debarred parties established under the U.S. Federal Food Drug and Cosmetic Act; and the list of persons and entities suspended or debarred from contracting with the U.S. government. Subject to the foregoing, Supplier shall be free to use the services of any person or the entity(s) set forth on Schedule C who will perform testing of the Product Deliverable on behalf of Supplier.  
		
	5.9
	Mutual Responsibilities and Warranties.  

Each of Supplier and Customer hereby represents and warrants to the other Party, as of the Effective Date, that:
		
	a)
	It is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization;

		
	b)
	the execution, delivery and performance of this Agreement by such Party has been duly authorized by all requisite action under the provisions of its charter, bylaws and other organizational documents, and does not require any action or approval by any of its shareholders or other holders of its voting securities or voting interests;

		
	c)
	it has the power and authority to execute and deliver this Agreement and to perform its obligations hereunder;

		
	d)
	this Agreement has been duly executed and is a legal, valid and binding obligation on such Party, enforceable against such Party in accordance with its terms; and

		
	e)
	the execution, delivery and performance by such Party of this Agreement and its compliance with the terms and provisions hereof does not and will not conflict with or result in a breach of or default under any Binding Obligation existing as of the Effective Date.

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	5.10
	Information Necessary for Compliance with Applicable Laws.  

Supplier acknowledges that Customer, as a regulated multi-national company, is subject to various governmental and regulatory compliance requirements.  Accordingly, subject to Section 8.1, Supplier agrees that in order to allow Customer to comply with Applicable Laws it shall provide Customer with information (for clarity, excluding Records which would be provided pursuant to Section 4.2) regarding Supplier and its operations with respect to the Product Deliverable to Customer upon Customer’s written request and at Customer’s cost.    
6.      TERM
		
	6.1
	Term.

This Agreement is entered into as of the Effective Date and shall remain in effect until the date that is thirty (30) days after Supplier Release (the “Term”) unless terminated earlier as provided herein.  
7.      TERMINATION
		
	7.1
	Termination for Cause.

Either Party may terminate this Agreement immediately upon written notice to the other Party in the event of a material breach by the other Party of any term of this Agreement which material breach remains uncured for [**] following written notice to such breaching Party of such material breach, provided that in the case of a breach related to non-payment of amounts disputed in good faith the running of such cure period shall be tolled until such dispute is resolved, but, for the avoidance of doubt, not with respect to the non-payment of amounts that are not disputed in good faith (e.g., if a portion of a payment amount is not subject to good faith dispute, that portion must be paid within the applicable cure period in order to avoid termination, and the running of such cure period shall not be tolled as to such portion).  Notwithstanding the foregoing, if such material breach, by its nature, cannot be cured, the non-breaching Party may terminate this Agreement immediately upon written notice to the breaching Party.  
		
	7.2
	Termination for Insolvency.

In the event that a Party hereto experiences a Bankruptcy Event (such Party, the “Insolvent Party”); then the Insolvent Party shall immediately notify the other Party of such Bankruptcy Event and such other Party shall be entitled to: (a) terminate this Agreement for cause immediately upon written notice to the Insolvent Party; or (b) request that the Insolvent Party or its successor provide adequate assurances of continued and future performance in form and substance reasonably acceptable to such other Party, which shall be provided by the Insolvent Party within [**] of such request, and the other Party may terminate this Agreement for cause immediately upon written notice to the Insolvent Party in the event 

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that the Insolvent Party fails to provide such assurances acceptable to the other Party within such [**] period.
		
	7.3
	Termination for Breach of Anti-bribery/Anti-Corruption Representation or Global Trade Representation.

Customer may terminate this Agreement effective immediately upon notice to Supplier, if: (i) Supplier breaches any of the representations, warranties and covenants set forth in Section 5.4(c), or (ii) Customer learns (a) that improper payments are being or have been made or offered to Government Officials or any other person by the Supplier or those acting on behalf of the Supplier with respect to this Agreement, or (b) that the Supplier or those acting on behalf of the Supplier with respect to this Agreement has accepted any payment, item, or benefit, regardless of value, as an improper inducement to award, obtain or retain business or otherwise gain or grant an improper business advantage from or to any other person or entity.  Further, in the event of such termination, Supplier shall not be entitled to any further payment, regardless of any activities undertaken or agreements with additional third parties entered into by Supplier prior to such termination, and Supplier shall be liable for damages or remedies as provided by this Agreement, at law or in equity.
		
	7.4
	Survival.

The termination or expiration of this Agreement shall not affect the survival and continuing validity of Section 4.2, the last sentence of Section 4.4(c), Section 4.4(e), Section 5.10, Article 8, any relevant definitions and any other provision which is expressly or by implication intended to continue in force after such termination or expiration.
8.      ADDITIONAL TERMS
		
	8.1
	Provision of Records.

Wherever Supplier is required by the terms of this Agreement to provide Records or other information to Customer, the Parties agree that Supplier shall (i) provide to Customer only such Records or other information actually in Supplier’s possession at the time of request by Customer and (ii) provide to Customer such Records or other information in the form that Supplier has such Records or other information.  
		
	8.2
	Intellectual Property.

All matters relating to intellectual property relating to or arising out of this Agreement shall be governed by the terms and conditions set forth in Article 5 of the License Agreement, the terms of which are incorporated by reference herein.
		
	8.3
	Limitation of Liability, Indemnification and Insurance.

All matters relating to limitation of liability, indemnification and insurance relating to or arising out of this Agreement shall be governed by the terms and conditions set forth in Article 9 of the License Agreement, the terms of which are incorporated by reference herein.  

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In addition, other than with respect to Supplier’s indemnity obligations under Section 4.4(e) hereof and any liability due to fraud, gross negligence and intentional misconduct, Supplier’s total liability to Customer under this Agreement shall in no event exceed $[**] U.S. Dollars), provided that if Customer Release occurs after [**], Supplier’s total liability to Customer under this Agreement shall not exceed $[**] U.S. Dollars).
		
	8.4
	Confidentiality.

All matters relating to Confidential Information (as defined in the License Agreement) disclosed under or relating to or pursuant to this Agreement or arising out of this Agreement shall be governed by the terms and conditions set forth in Article 6 of the License Agreement, the terms of which are incorporated by reference herein.
		
	8.5
	Other Incorporations by Reference.

In addition to the provisions set forth above, the following Sections of the License Agreement are incorporated by reference herein: 1.2 (Interpretation), 4.7 (Adverse Events and Safety Reporting), 10.1 (Assignment), 10.2 (Further Actions), 10.3 (Force Majeure), 10.4 (Notices), 10.5 (Amendment), 10.6 (Waiver), 10.7 (Severability), 10.8 (Export Control), 10.9 (Dispute Resolution), 10.10 (Governing Law), 10.11 (Jurisdiction), 10.12 (No Jury Trial), 10.13 (Entire Agreement), 10.14 (Independent Contractors), 10.17 (Headings) and 10.18 (Counterparts), wherein all references to the License Agreement in said sections are understood to be references to this Agreement. 

[remainder of page left intentionally blank]

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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed and delivered as of the Effective Date.
	
		
	

SPARK THERAPEUTICS, INC.

	

PFIZER INC.

	By:/s/ Jeffrey D. Marrazzo   

	By: /s/ Paul Levesque   

	Name: Jeffrey D. Marrazzo   

	Name: Paul Levesque   

	Title: Chief Executive Officer   
	Title: RD Global President   

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SCHEDULE A     
 
STATEMENT OF WORK 
Description of Services:  

Supplier shall Manufacture the Product Deliverable for the potential treatment of hemophilia B for clinical trial supply purpose in accordance with the terms and conditions set forth in this Agreement including the Quality Agreement.

Scope; Activities, Tasks: 

Supplier shall deliver materials and documentation capable of supporting regulatory submission, example activities including (a) Manufacture of [**], “Minimum Product Deliverable Volume”) and (b) [**]. 

Manufacturing Committee Meetings: 

Supplier will participate in mutually scheduled Manufacturing Committee meetings. At each meeting the Manufacturing Committee will have a [**].  The Manufacturing Committee may, [**].  Frequency of Manufacturing Committee meetings [**].  In addition, [**], Supplier will [**].  For the avoidance of doubt, the Manufacturing Committee shall [**].

Additional Requirements: 

Supplier shall work with Customer to meet the following requirements (“Additional Requirements”), it being agreed that [**] shall have final decision making authority except with respect to [**], for which [**] shall have the final decision making authority, provided in all cases final decision making is subject to the reasonable objections of the non-decision making party.  

		
	1.
	Completion of Customer Quality review and approval of Master Batch Records (MBRs) for Process 2 Product.

		
	2.
	Completion of Customer review and approval of QC Sample Transfer Plan.

Customer acknowledges that any delay on its part beyond the requested response date provided by Supplier with respect to Customer’s review and approval may cause a corresponding delay with respect to Supplier’s Manufacture or delivery of the Product Deliverable.  Notwithstanding anything to the contrary in this Agreement, provided that Customer’s delay is not caused by Supplier, Supplier shall have no liability to Customer for such delay, and the amount of the Second Payment shall not be reduced, in the event that such a delay on Customer’s part causes a corresponding delay in Supplier Release.

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Schedule; Deliverables: 

Firm Schedule:

	
				
	 
	Objective
	No later than:
	 

	A.
	[**]
	[**]
	 

	B.
	[**]
	[**]
	[**]

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Key Activities/Milestones:
	
				
	 
	Milestone
	Target Completion Date*
	 

	A.
	[**]
	[**]
	 

	B.
	[**]
	[**]
	 

	C.
	[**]
	[**]
	[**]

* Target completion dates are subject to review and revision by Manufacturing Committee as described above

Customer Release:

Within [**] after Customer’s receipt of Supplier Release and associated Records such date being extendable for up to [**] upon Customer notifying Supplier in writing of a delay which is caused by a deviation, changes or other documentation as part of the Supplier Release Records (the “Release Deadline”), Customer shall either approve of the Product Deliverable (“Customer Release”) or shall reject the Product Deliverable.  In the event that Customer Release has not occurred by the Release Deadline or Customer has rejected the Product Deliverable, Customer agrees (i) not to use the Product Deliverable for any purpose and (ii) within [**] after the Release Deadline, to destroy the Product Deliverable and deliver documentation of such destruction to Supplier. 

Compensation and Payment: 

The total cost for services described in this Statement of Work shall be up to $14,000,000 (fourteen million U.S. Dollars) (the “Price”) which consists of:
		
	•
	A “First Payment” of $7,000,000 (seven million U.S. Dollars) shall be invoiced by Spark as described below upon execution of this Agreement and will be due and payable no later than February 27, 2018; and

		
	•
	A “Second Payment” shall be due as follows: 

		
	o
	If Supplier Release occurs by [**] and Supplier provides at least the Minimum Product Deliverable Volume, a Second Payment of $7,000,000 (seven million U.S. Dollars) will be due and payable within [**] after Customer Release and Customer’s receipt of an invoice as described below.  

		
	o
	If (a) Supplier Release does not occur by [**] (for any reason other than a delay by Customer in satisfying the Additional Requirements) but occurs before [**] or such later date as agreed by Customer in writing and Supplier provides at least the Minimum Product Deliverable Volume, a Second Payment of $[**] U.S. Dollars) 

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will be due and payable within [**] after Customer Release and Customer’s receipt of an invoice as described below.  
		
	o
	For avoidance of doubt, Supplier Release must occur even if it occurs after [**] and should Supplier Release occur after [**], no Second Payment will be due from the Customer. 

Invoicing Instructions: 

All invoices should be emailed directly to [**] with a copy to [**]. Please include the following information clearly listed: reference to this Agreement, PO number, amount owed and name and address payment is to be sent to. Suppliers enrolled in Customer's e-Invoicing programs (ASN or OB10) can ignore this PO Note. All invoice or billing related questions should be referred to Customer's Accounting Department at [**] or go to the Accounts Payable Inquiry Tool (APIQ) which can be found at [**].

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SCHEDULE B     
 
SPECIFICATIONS - PERFORMANCE STANDARDS

		
	Material Description:
	[**] (SPK-9001) [**]

		
	Bulk Material Manufacturer:
	Spark Therapeutics, Inc. (Spark)

		
	Storage: 
	[**]

		
	Expiry:
	Not applicable

Drug Substance Release Specifications

	
			
	Crude Cell Harvest

	Assay
	Test Site / Method Number
	Acceptance Criteria

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	Drug Substance

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

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	Assay
	Test Site / Method Number
	Acceptance Criteria

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

    

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SCHEDULE C     
 
QUALITY AGREEMENT

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QUALITY AGREEMENT HISTORY PAGE 
by and between
	
		
	Company Name:
	Spark Therapeutics, Inc.

And
	
		
	 
	   Pfizer Inc., acting through its Pfizer Pharmaceutical Sciences Group

	
		
	Agreement Description:
	Drug Substance Manufacturing
Analytical Testing

	
				
	Brief description of revisions
	Section Number
	Effective Date
	CLM #

	New QAA
	NA
	Date of last approval
	[**]

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PHARMSCI CONTRACT VENDOR QUALITY AGREEMENT
by and between
	
		
	Company Name:
	Spark Therapeutics, Inc.

	Address:
	3737 Market Street, Suite 1300
Philadelphia, PA 19104

 (“Contractor”)
and
	
		
	 
	 Pfizer Inc., acting through its Pfizer Pharmaceutical Sciences Group

	Address:
	Eastern Point Road, Groton CT

 (“Pfizer”)
Pfizer and Spark Therapeutics, Inc. (Spark) may each be referred to herein individually as a “Party” and collectively as the “Parties.”
for
See Appendix 1
(“Product” or “Service”)
The Parties wish to further define their individual and collective responsibilities as to the quality aspects of the Product or Service to ensure compliance with applicable Good Manufacturing Practices (GMPs), or other applicable quality standards, applicable regulatory submissions for the Product, applicable regulatory submissions for the Services, other applicable regulatory requirements, and Pfizer’s requirements as specified by Pfizer (the “Pfizer Requirements”).
In order to achieve this purpose, this Quality Agreement includes a detailed listing of the activities and corresponding responsibilities associated with the Product or Service.  Unless otherwise indicated, responsibility for each specified activity is assigned to either Pfizer or Spark, or to both Parties.
CLM #_[**]__

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Agreement by the Parties to perform the activities detailed in this Quality Agreement is indicated by each authorized representatives’ signature below: 

	
				
	PFIZER   . 

	SPARK
	 

	/s/ Diana L. Grohs
	/s/ Michael Cowan
Signature
	 

	16 Feb 2018
	/s/ Michael Cowan
Michael Cowan
	 

	Team Lead External Party Quality Assurance
Title 
	Head of Quality Assurance
Title 
	 

	 
	     16 Feb 2018   
Date of Signature 

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	Contents

	Approval Page

	Effective Date

	Scope

	Other Agreements

	Changes to Quality Agreement

	Termination of Quality Agreement

	Debarment

	Resolution of Quality Issues

	Use of Third-Parties

	Assignment

	Appendices

	Appendix 1: Definition of Product, Materials or Service

	Appendix 2: Contacts and Responsibilities

	Appendix 3: Significant Deviations Requiring Notification to Pfizer

	Appendix 4: Change Control Notification Guidelines

	Appendix 5: Documentation to be Supplied by Contractor 

	Appendix 6: Authorized Sub-Contractors
Appendix 7: Approved Materials to be Sourced by Contractor 
Appendix 8: Summary of Notification Timelines

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1.Effective Date
This Quality Agreement shall become effective as of the latest signature date that appears on page 2 (“Effective Date”).
2.Scope
This Quality Agreement outlines the obligations and responsibilities of Spark Therapeutics, Inc. (hereinafter referred to as “Contractor”) and Pfizer Inc. (“Pfizer”) with respect to the quality assurance of the Product or Service, as defined in Appendix 1 (Definition of Product or Service), by Contractor for Pfizer.  
3.Other Agreements
This Quality Agreement shall complement and is without prejudice to all other agreements containing logistical, commercial, legal or other terms, which have been entered into between the Parties regarding the Product or Service covered by this Quality Agreement, including, without limitation, that certain SPK 9001Manufacture and Supply between the Parties dated  February 16, 2018[(the “Primary Agreement”). If there are any direct conflicts between the terms of this Quality Agreement and the terms of the Primary Agreement, then (a) this Quality Agreement shall govern with respect to issues directly related to Product or Service quality matters, and (b) the Primary Agreement shall govern with respect to all other matters.
4.Changes to Quality Agreement
Changes to this Quality Agreement must be in writing and signed by the appropriate representatives of each Party before they are deemed effective.  The Parties agree to change terms of this Quality Agreement that need to be revised in order to ensure the Product or Service continues to meet all (a) regulatory requirements of applicable jurisdictions and (b) Pfizer Requirements. If changes to this Quality Agreement are proposed, the proposing Party will communicate the proposed changes to the appropriate contact person at the other Party for review and approval.  The appropriate contact person for each Party is listed in Appendix 2 (Contacts and Responsibilities).  
5.    Termination of Quality Agreement
Term.  This Quality Agreement shall become effective as of the Effective Date and shall terminate upon the later of (a) expiration or termination of the Primary Agreement and (b) the final date on which Contractor provides Products or Services to Pfizer. Notwithstanding the foregoing, if the Products or Services cease to be provided by Contractor to Pfizer, this Quality Agreement may be terminated by either Party on providing thirty (30) calendar days’ advance written notice of termination to the other Party. 
Survival.  All regulatory obligations required of Pfizer or Contractor by any applicable regulatory authorities and all obligations of the Parties under effective regulations shall survive expiration or termination of this Quality Agreement.  Examples of such requirements include, but are not limited to: Recalls, Complaint and Adverse Event handling and reporting, deviations and investigations, completion of stability studies, provision of information to Pfizer which is necessary to maintain compliance with 

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regulatory filings, etc. Also, those provisions of the Primary Agreement between the Parties shall not be affected by expiration or termination of this Quality Agreement, including, without limitation, any duties regarding confidentiality or non-disclosure.
6.    Debarment
Contractor warrants and represents that it is not debarred under the Generic Drug Enforcement Act of 1992, 21 U.S.C. 335[a] (the “Generic Drug Enforcement Act”), and that it has not been convicted of a crime for which it could be debarred under the Generic Drug Enforcement Act.  In connection with the Product (or provision of Services), Contractor further warrants, represents, and covenants that it shall not use in any capacity the services of any person debarred under the Generic Drug Enforcement Act, or convicted of a crime for which a person can be debarred under the Generic Drug Enforcement Act.

7.Resolution of Quality Issues
Quality-related disagreements between Contractor and Pfizer that are not resolved in the normal course of business shall be brought to the attention of the appropriate contact person for notices at Contractor and Pfizer, in writing.  The appropriate contact persons are listed in Appendix 2 (Contacts and Responsibilities).  Both Parties shall use all reasonable efforts to agree to a resolution of the disagreement and agree to work jointly to develop a strategy for such resolution. Contractor and Pfizer further agree to record such resolution in writing.
If resolution of a quality related disagreement cannot be reached using the process described immediately above, then the dispute resolution procedures in the Primary Agreement shall be applied to resolve such disagreement.  Notwithstanding any provision of this Quality Agreement to the contrary, Pfizer retains the sole and absolute right to determine Product release status. In the absence of a Primary Agreement or a dispute resolution procedure and in the case of a material non-compliance with this Quality Agreement, Pfizer reserves the right to terminate provision of the Product or the Services on providing thirty (30) calendar days’ prior written notice to Contractor.
8.Use of Third-Parties
Contractor may not subcontract or delegate any of its obligations under this Quality Agreement to any third-party (including, without limitation, any affiliate of Contractor) unless Pfizer provides prior written consent to Contractor for such subcontracting or delegation.  
Before Pfizer grants any such written consent, Pfizer may require that Contractor enter into a written agreement with the third-party (“Third-Party Agreement”) to the satisfaction of Pfizer.  This Third-Party Agreement shall define the respective quality responsibilities of Contractor and the third-party and shall provide for confidentiality and non-disclosure of all Pfizer confidential information requiring at least the same degree of protection for Pfizer’s confidential information as the obligations of confidentiality and non-disclosure that exist between Contractor and Pfizer.

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Contractor shall remain responsible for the acts and omissions of any permitted Sub-Contractors, as if those acts and omissions had been carried out by the Contractor itself and in particular, but without limitation, will enter into an appropriate written contract with such Sub-Contractors and ensure the qualification and auditing of such Sub-Contractors. 
To the extent required by Pfizer’s internal policies and procedures or required by applicable laws, regulations or governmental authorities, Contractor shall ensure that Pfizer is granted the right to access each Sub-Contractor’s site(s), as if it were a Contractor site, in order to carry out audits and other assessments.  At Pfizer’s request, a representative appointed by Contractor shall participate in such Sub-Contractor site visits.
9.Assignment
Section 10.1 (Assignment) of the License Agreement between the Parties, dated as of December 6, 2014, as may amended from time to time (the “License Agreement”), is hereby incorporated by reference, wherein all references to the License Agreement in said section is understood to be references to this Agreement. 

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10.  Quality Responsibilities Table
	
				
	§
	Responsibilities
	Pfizer
	Contractor

Confidential Materials omitted and filed separately with the Securities and Exchange Commission.  A total of 11 pages were omitted. [**]

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APPENDIX 1:  Definition of Product, Materials or Service

	
						
	X
	Services.  CTM = Clinical Trial Material
	 
	X
	Services.  CTM = Clinical Trial Material

	 
	CTM – Drug Substance Manufacture
	 
	 
	Laboratory - Analytical Biological

	 
	 
	 
	X
	[**]

	X
	Drug Substance
	 
	X
	[**]

	 
	 
	 
	X
	[**]

	 
	 
	 
	X
	[**]

	 
	 
	 
	X
	[**]

	 
	 
	 
	X
	[**]

	 
	 
	 
	X
	[**]

	 
	 
	 
	X
	[**]

	
	
	NOTE: Contractor to inform Pfizer Quality Assurance if changes need to be made to this appendix.

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APPENDIX 2:  Contacts and Responsibilities
	
				
	CONTACT PERSON (S) FOR  
NOTIFICATIONS REQUIRED IN QUALITY RESPONSBILITIES TABLE
	 

	 
	CONTRACTOR
	PFIZER
	 

	 
	QUALITY ASSURANCE
	QUALITY ASSURANCE
	 

	Name
	[**]
	[**]
	 

	Title
	[**]
	[**]
	 

	Phone
	[**]
	[**]
	 

	Address (mail/delivery)
	[**]
	[**]
	 

	E-mail
	[**]
	[**]
	 

	 
	BUSINESS MANAGER
	BUSINESS MANAGER
	 

	Name
	[**]
	[**]
	 

	Title
	[**]
	[**]
	 

	Phone
	[**]
	[**]
	 

	Address (mail/delivery)
	[**]
	[**]
	 

	E-mail
	[**]
	[**]
	 

	Contact Person for  
Notices, including notices of Changes, Assignment, Termination, & Resolution of 
 Quality Issues

	Head of Quality Organization or equivalent
	CONTRACTOR
	PFIZER

	Name
	[**]
	[**]

	Title
	[**]
	[**]

	Phone
	[**]
	[**]

	Address (mail/delivery)
	[**]
	[**]

	E-mail
	[**]
	[**]

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	NOTE: Contractor to inform Pfizer Quality Assurance if changes need to be made to this appendix.

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APPENDIX 3: Examples of Significant Deviations Requiring Notification to Pfizer
	
			
	   Significant Deviations that require notification to PharmSci (minimum expectations) 
[**]

	Significant Deviations
	List of specific examples (but not limited to)

	[**]
	•    [**]
	•    [**]

	[**]
	•    [**]
	•    [**]

	[**]
	•    [**]
	•    [**]

	[**]
	•    [**]
	•    [**]

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APPENDIX 4:  Change Control Notification Guidelines
[**].  
	
		
	Examples of Changes that Do Require Notification to Pfizer (but not limited to):
	Examples of Changes that Do NOT Require Notification to Pfizer:

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

	 
	[**]

	 
	[**]

	 
	[**]

	 
	[**]

	 
	[**]

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APPENDIX 5:  Documentation to be Supplied by Contractor
The following documents/records will be supplied to Pfizer:
May include a list of documents that are required by PharmSci QA for release of Product – e.g. 
		
	•
	[**], 

  

Additional documents that may be included in this Appendix (as appropriate to Services) are: 
[**] 
. 
	
	
	NOTE: Translations should be provided for documents not supplied in English.

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APPENDIX 6:  Authorized Sub-Contractors
Include list of all Sub-Contractors including Name, Address, and Type of Service.
Contractor may not subcontract any of its obligations under this Quality Agreement except pursuant to the provisions of Section 8 of the Quality Agreement.  The Parties acknowledge and agree that the Sub-Contractor(s) listed below have satisfied the requirements set forth in Section 8 of the Quality Agreement, have been approved by Pfizer, and may perform activities on behalf of Contractor under the Quality Agreement, subject to Contractor’s and such Sub-Contractor’s continuing obligations under the Quality Agreement, including, without limitation, their respective obligations under Section 8.
	
			
	Sub-Contractor Name
	Address
	Type of Service

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	
	
	NOTE: Contractor to inform Pfizer Quality Assurance if changes need to be made to this appendix.

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Appendix 7: Approved Materials to be sourced by Contractor
Include list of materials (names, applicable item codes and numbers) that contractor is approved to source 

[**]

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Appendix 8: Summary of Notification timelines
	
			
	Contractor Notification type
	Agreement Section
	Timeline to notify Pfizer

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

	[**]
	[**]
	[**]

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SCHEDULE D    
PROCESS 2 PRODUCT
[**]

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SCHEDULE E    
CERTIFICATE OF ANALYSIS (COA) TEMPLATE
	
						
	 

	Document #:
	FRM.QA051.F4
	Revision:
	1.0
	Effective Date:
	19-Dec-2017

	Title:
	Certificate of Analysis   

Product Description:
	
		
	Material Name:
	Enter Product/Material Name

	Material Description:
	Enter Material Description

	Manufactured At:
	Enter Manufacturer Information

	Specification & Rev:
	Enter Specification and Revision referenced

	Storage Conditions:
	Enter Storage conditions

	Batch/Lot Number:
	Enter Batch/Lot Number

	Date of Manufacture:
	Enter DOM

	Expiration Date:
	Enter Expiry Date

	Date Issued:
	Enter Date Issued

Certificate of Analysis
	
					
	Assay
	Test Site/
Method Number
	Acceptance Criteria
	Result
	Pass/ Fail

	 _
	_
	_
	_
	_

Quality Control Approval:

	
					
	Print Name /Title
	 
	 
	 
	 

	Printed Name/Title
	 
	Signature
	 
	Date

Quality Assurance Approval:

	
					
	Print Name /Title
	 
	 
	 
	 

	Printed Name/Title
	 
	Signature
	 
	Date

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}]]