Document:

AMENDMENT
TO WARRANT

 

This
Amendment to Warrant (the “Amendment”) is entered into and effective as of August 7, 2017 (the “Effective Date”),
by and between CHANTICLEER HOLDINGS, INC., a Delaware corporation (“Chanticleer”) and Larry S. Spitcaufsky, Trustee
of Larry Spitcaufsky Family Trust UTD 1-19-88 (the “Holder”).

 

WHEREAS,
the parties entered into that certain Securities Purchase Agreement dated May 4, 2017 (“Agreement”) for the purchase
of a Debenture and Warrant to purchase Common Stock (on a pre-split basis) in Chanticleer; and

 

WHEREAS,
the parties desire to amend the terms of the Warrant to increase the Holder’s exercise limitation.

 

NOW,
THEREFORE, in consideration of the mutual promises, conditions, representations and warranties hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto have mutually
agreed as follows:

 

1.
The foregoing recitals are true and correct and incorporated herein. Any capitalized term not defined herein shall have the same
meaning as set forth in the Agreement and Warrant.

 

2.
The number of Warrant Shares issuable upon exercise of the Warrant is hereby reduced to 400,000 Warrant Shares to reflect the
one for ten reverse stock split of Chanticleer effected on May 17, 2017.

 

3.
The Exercise Price per share of the Common Stock under the Warrant is $3.50, subject to adjustment as provided in the Warrant.

 

    	 

    	 	 	 

    

 

4.
Section 2(e) of the Warrant is superseded and replaced in it entirety with the following provision:

 

“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 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 and 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 and 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
and 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 and
in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares
of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder or its Affiliates 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 19.99% 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 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.”

 

    	2 

    	 	 	 

    

 

5.
Except as set forth herein, all other terms and conditions contained in the Warrant that are not changed, amended or modified
through this Amendment shall remain unchanged and in full force and effect.

 

6.
In the case of conflict between the provisions of the Warrant, on the one hand, and this Amendment on the other hand, the provisions
of this Amendment will prevail.

 

7.
This Amendment may be executed in counterparts, each of which, when so executed and delivered, shall be deemed an original, but
both counterparts together shall constitute but one agreement. Delivery of an executed counterpart of a signature page to this
Amendment by facsimile or in electronic (i.e., “pdf”) format shall be effective as delivery of a manually executed
counterpart signature page.

 

IN
WITNESS WHEREOF, this Amendment has been duly executed by or on behalf of each of the parties as of the date first written
above.

 

	CHANTICLEER
    HOLDINGS INC.,	 
	a
    Delaware corporation	 
	 	 	 
	By:
    	/s/
    Michael D. Pruitt	 
	Name:
    	Michael
    D. Pruitt	 
	Its:	Chief
    Executive Officer	 

 

	 	LARRY
    S. SPITCAUFSKY, TRUSTEE OF
	 	LARRY
    SPITCAUFSKY FAMILY TRUST
	 	UTD
    1-19-88
	 	 
	 	By:	/s/
    Larry S. Spitcaufsky
	 	Name:	Larry
    S. Spitcaufsky
	 	Its:	Trustee

 

    	3AMENDMENT
TO SECURITIES PURCHASE AGREEMENT

 

This
Amendment (“Amendment”) amends that certain Securities Purchase Agreement dated May 4, 2017 (“SPA”) by
and between CHANTICLEER HOLDINGS, INC., a Delaware corporation (“Chanticleer”) and the Purchasers signatory thereto.
Capitalized terms not otherwise defined herein have the meanings ascribed to them in the SPA.

 

WHEREAS,
Chanticleer and the Purchasers desire to amend and replace Section 4.17 of the SPA in the manner hereinafter set forth in order
to comply with Listing Rule 5640 of the NASDAQ Stock Market.

 

NOW,
THEREFORE, in consideration of the mutual promises, conditions, representations and warranties hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto have mutually
agreed as follows:

 

	1.	The
                                         foregoing recital is true and correct and incorporated herein.

 

	2.	Section
                                         4.17 of the SPA is hereby amended to read, in its entirety, as follows:

 

“Board
of Directors. Contemporaneous with the Closing (or, if requested by the Purchasers, at the earliest practical date after the date
hereof), the Company shall appoint one director selected by Purchasers holding a majority in interest of the Debentures (the “Board
Appointee”) to the Board of Directors. Within 3 Trading Days after such appointment the Company shall provide the Purchasers
evidence of such appointment by copies of all of the necessary corporate actions required to be taken by the Company in accordance
to its certificate or articles of incorporation, bylaws or other organizational or charter documents and in accordance with the
laws of the State of Delaware. Furthermore, from the date hereof until the Purchasers, in the aggregate, hold Debentures in the
principal amount less than $1,500,000 (the “Appointment Period”), the Purchasers shall have the right, but not the
obligation, to appoint the Board Appointee to the Board of Directors and Purchasers holding a majority in interest of the Debentures
may terminate such right by providing written notice to the Company. The Company agrees that it shall have its Board of Directors
or nominating committee, if it has one, re-nominate Board Appointee as a director pursuant to this Section 4.17 and to recommend
to the Company’s stockholders that that they vote “for” such nominee, and that all proxies given to management
are voted in favor of such nominee. Upon expiration of the Appointment Period and until such time that the Purchasers no longer
hold the Debentures, the Purchasers shall have the right, but not the obligation, to designate one (1) non-voting observer to
attend meetings of the Board of Directors as an observer. The observer shall be entitled to notice of all meetings of the Board
of Directors, in the manner that notice is provided to members of the Board of Directors, shall be entitled to receive all materials
provided to members of the Board of Directors, at the same time as provided to members of the Board of Directors and shall be
entitled to attend (whether in person, by telephone, or otherwise) all meetings of the Board of Directors as a non-voting observer.”

 

3.       Except
as set forth herein, all other terms and conditions contained in the Agreement that are not changed, amended or modified through
this Amendment shall remain unchanged and in full force and effect.

 

    	 

    	 	 

    

 

4.
       In the case of conflict between the provisions of the SPA and/or other Transaction Documents,
on the one hand, and this Amendment on the other hand, the provisions of this Amendment will prevail.

 

5.       This
Amendment may be executed in counterparts, all of which, when so executed and delivered, shall be deemed an original, but all
counterparts together shall constitute but one agreement. Delivery of an executed counterpart of a signature page to this Amendment
by facsimile or in electronic (i.e., “pdf”) format shall be effective as delivery of a manually executed counterpart
signature page.

 

IN
WITNESS WHEREOF, this Amendment has been duly executed by or on behalf of each of the parties.

 

	CHANTICLEER HOLDINGS INC.,
	a Delaware corporation	 
	 	 	 
	By:	/s/
    Michael D. Pruitt	 
	Name:	Michael
    D. Pruitt	 
	Its:	Chief
    Executive Officer	 

 

AGREED
AND ACCEPTED:

PURCHASERS:

 

	Douglas S. Ramer	 	Bryan Ezralow 1994 Trust U/T/D 12.22.1994
	 	 	 	 	 
	 	/s/
    Douglas S. Ramer	 	 	/s/
    Bryan Ezralow
	 	Douglas
    S. Ramer	 	By:	Bryan
    Ezralow
	 	 	 	Its:	Trustee
	 	 	 	 	 
	Elevado Investment Company, LLC	 	C and R Irrevocable Trust U/T/D 11.05.07
	 	 	 	 	 
	 	/s/
    Bryan Ezralow	 	 	/s/
    David M. Leff
	By:	Bryan Ezralow,
    as Trustee of the	 	By:	David
    M. Leff
	 	EzralowFamily
    Trust U/T/D/ 12.09.1980	 	Its:	Trustee
	Its:	Manager
    and Member	 	 	
	 	 	 	 	 
	EMSE, LLC	 	David Leff Family Trust U/T/D 2.03.1988
	 	 	 	 	 
	 	/s/
    Bryan Ezralow	 	 	/s/
    David M. Leff
	By:	Bryan Ezralow
    as Trustee of Bryan Ezralow	 	By:	David M. Leff
	 	1994
    Trust U/T/D 12.22.1994	 	Its:	Trustee
	Its:	Manager
    and Member	 	 	 
	 	 	 	 	 
	Freedman 2006 Irrevocable Trust U/T/D 12.27.2006	 	Haddad Family Trust
	 	 	 	 	 
	 	/s/
    Gary E. Freedman	 	 	/s/
    David Haddad
	By:	Gary E. Freedman	 	By:	David Haddad
	Its:	Trustee	 	Its:	Trustee
	 	 	 	 	 
	Freedman Family Trust U/T/D 5.25.1982	 	Jonathan and Nancy Glaser Trust U/T/D 12.16.1998
	 	 	 	 	 
	 	/s/
    Gary E. Freedman	 	 	/s/
    Jonathan Glaser
	By:	Gary E. Freedman	 	By:	Jonathan Glaser
	Its:	Trustee	 	Its:	Trustee
	 	 	 	 	 
	Larry S. Spitcaufsky, Trustee of Larry Spitcaufsky Family Trust U/T/D 1.19.88	 	Marc Ezralow 1997 Trust U/T/D 11.26.1997
	 	 	 	 	 
	 	/s/
    Larry Spitcaufsky	 	 	/s/
    Marc Ezralow
	By:	Larry Spitcaufsky	 	By:	By: Marc Ezralow
	Its:	Trustee	 	Its:	Trustee
	 	 	 	 	 
	Joshua and Julie Ofman Family Trust	 	SPA Trust
	 	 	 	 	 
	 	/s/
    Joshua Ofman	 	 	/s/
    Marc Ezralow
	By:	Joshua J. Ofman	 	By:	Marc Ezralow
	Its:	Trustee	 	Its:	Trustee

 

    	2

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